Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 43

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 43
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, 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.

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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
the businesses of our investee companies. As of December 31, 2024, the aggregate fair value of our strategic investment portfolio
was US$420.5 million. Although we do not intend to make frequent trades on investments for profit, the nature of investment and significance
of our investment holdings could adversely affect our results of operations and financial condition.

Our investments
are subject to liquidity, concentration, regulatory, credit and other risks.

Our portfolio is concentrated
in a limited number of portfolio companies. As a result, the aggregate returns we realize may be significantly affected adversely if any
of the investment performs poorly or if we need to write down its value. Additionally, our investments are concentrated in relatively
few industries or sectors. As a result, a downturn in any particular industry or sector in which we are invested could significantly impact
the aggregate