Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 161

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 161
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 of gains/losses on equity
securities classified as financial assets at FVTPL.

As of December 31, 2022,
2023 and 2024, if there had been a 5% increase/decrease in the equity price of listed equity shares, included in financial assets at FVTPL,
with all other variables held constant, our profit before tax would have been approximately US$5,524,000, US$3,603,000 and US$20,376,000,
respectively.

We also had concentration
risk in two listed equity shares as of December 31, 2022 and 2023. As of December 31, 2024, we had concentration risk in equity
shares in AMTD Digital Inc. and two listed equity shares.

We entered into certain agreements
in relation to the movement of the share price of the entirety of our holding of certain listed shares to reduce our exposure to the changes
in fair value of financial assets. The derivative financial asset is initially recognized at fair value and are subsequently remeasured
at fair value and any gains or losses arising from changes in fair value of derivative financial asset are taken directly to profit or
loss.

No sensitivity analysis is
prepared on unlisted equity shares and movie income right investments as our directors consider that the impact on the price risk is insignificant.

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Foreign Currency
Risk

We have certain transactions
denominated in foreign currencies which are different from our functional currency, and therefore we are exposed to foreign currency risk.
We currently do not have a foreign currency hedging policy. However, our management monitors foreign exchange exposure and will consider
hedging significant foreign exchange exposure should the need arise.

Our 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, we had no significant exposure to foreign currency risk.

Interest Rate Risk

We are exposed to cash flow
interest rate risk in relation to variable-rate bank balances and variable-rate borrowings. We aim at keeping borrowings at variable rates.
We manage our interest rate exposures by assessing the potential impact arising from any interest rate movements based on interest rate
level and outlook. Our management will review the proportion of borrowings in fixed and floating rates and ensure they are within reasonable
range. Our cash flow interest rate risk exposure is insignificant.

Credit Risk

Credit risk refers to the
risk that