Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 42

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 42
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 or the business operations
decline, the fair value of our investment in these companies may deteriorate or, in extreme cases, decrease to zero. We are subject to
the risk that the majority shareholders or the management of these investee companies may act in a manner that does not serve the investee
companies’ interests. The general operational risks, such as inadequate or failing internal control of these investee companies,
the compliance risks, such as any lack of requisite approvals for investee companies’ businesses, and legal risks, such as violation
of laws and regulations or fraudulent or otherwise improper activities, may also expose our investments to risks. Furthermore, these investee
companies may fail to abide by their agreements with us, for which we may have limited or no recourse. These investee companies may not
declare dividend, or even if they do, we may not be able to secure liquidity conveniently until we receive such dividend. If any of the
foregoing were to occur, our business, reputation, financial condition and results of operations could be materially and adversely affected.

In recent years, there
has been increasing competition for private equity investment opportunities, which may limit the availability of investment opportunities
or drive up the price of available investment opportunities, and, as a result, our financial condition and results of operations may be
materially and adversely affected.

<div align='center'>18</div>

Our results of operations
and financial condition may be materially affected by fluctuations in the fair value of our equity investments in our investee companies.

We have made significant equity
investments in public and private companies and recognize dividend and gain related to disposed investments and net fair value changes
on investments and derivatives on our combined statements of profit or loss and other comprehensive income. For the years ended December 31,
2022, 2023 and 2024, dividend and gain from disposed financial assets at fair value through profit or loss and settled derivative financial
assets accounted for 23.6%, 142.1% and 33.0%, and net fair value changes on financial assets at fair value through
profit or loss accounted for 41.6%, (88.8)% and 34.2%, of our total revenue, respectively. Since we intend to hold
our investments on a long-term basis, fair value of our equity investments is subject to market fluctuations due to changes in the market
prices of securities, interest rates, or other market factors, such as liquidity, or regulatory factors, such as changes in policies affecting