Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 326

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 326
---
 and
will consider hedging significant foreign exchange exposure should the need arise.

The Group’s key currency risk exposure primarily arises
from accounts receivable, accounts payable and bank balances denominated in other currencies. As of December 31, 2022, 2023 and 2024,
the Group had no significant exposure to foreign currency risk. Consequently, no sensitivity analysis has been performed and disclosed.

The Group is exposed to cash flow interest rate risk in relation
to variable-rate bank balances and variable-rate borrowings. The Group aims to keep borrowings at variable rates. The Group manages its
interest rate exposures by assessing the potential impact arising from any interest rate movements based on interest rate level and outlook.
The management will review the proportion of borrowings in fixed and floating rates and ensure they are within reasonable range.

No sensitivity analysis has been presented for variable rate
bank balances and variable rate borrowings as the bank balances and borrowings as the cash flow interest rate risk exposure is insignificant.

Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy
counterparties, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure of its counterparties is
continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is
controlled by counterparty limits that are reviewed and approved by the management periodically.

The Group has credit risk exposure in relation the Agreements
entered into with a counterparty amounting to US$167,388,000 as of December 31, 2022 (Note 17). As of December 31, 2022,
the directors of the Company consider that the credit risk is not significant because the market value of listed securities pledged to
the Group in relation to the Agreement is higher than the outstanding carrying amounts of the Agreement.

The Group performed impairment assessment for financial assets
under ECL model. Information about the Group’s credit risk management, maximum credit risk exposures and the related impairment
assessment, if applicable, are summarized as below:

Accounts receivable

Before accepting any new customer, the Group uses an internal
credit scoring system to assess the potential customer’s credit quality and defines credit limits by customer. Limits and scoring
attributed to customers are reviewed twice a year. Other monitoring procedures are in place to ensure that follow-up action is taken to
recover overdue debts. Also, the management of the Group