Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 292

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 292
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, US$499,000 and US$502,000, respectively, are allocated to cash-generating unit of the business unit under “L’Officiel”.
For the purpose of impairment testing, the recoverable amount of this cash-generating unit has been determined based on a value in use
calculation. That calculation uses cash flow projections based on financial budgets approved by management covering a 5-year period,
and pre-tax approximate discount rate of 11%. Cash flows beyond the 5-year period are extrapolated using a steady 1.6% to 2.1% growth
rate. This growth rate is based on the relevant industry growth forecasts and does not exceed the average long-term growth rate for the
relevant industry. Other key assumptions for the value in use calculations relate to the estimation of cash inflows/outflows which include
budgeted sales and gross margin, such estimation is based on the L’Officiel’s past performance and management’s expectations
for the market development.

<div align='center'>F-56

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 12. | INTANGIBLE ASSETS (cont.) |

As of December 31, 2023 and 2024,
carrying amount of brand name of approximately US$25,809,000 and US$25,964,000, respectively, are allocated to cash-generating unit of
the business unit under “The Art Newspaper”. For the purpose of impairment testing, the recoverable amount of this cash-generating
unit has been determined based on a value in use calculation. That calculation uses cash flow projections based on financial budgets
approved by management covering a 5-year period, and pre-tax approximate discount rate of 10.3%. Cash flows beyond the 5-year period
are extrapolated using a steady 1.8% to 2.1% growth rate. This growth rate is based on the relevant industry growth forecasts and does
not exceed the average long-term growth rate for the relevant industry. Other key assumptions for the value in use calculations relate
to the estimation of cash inflows/outflows which include budgeted sales and gross margin, such estimation is based on The Art Newspaper’s
past performance and management’s expectations for the market development.

Based on the results of the assessments,
management of the Group determined that