Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 162

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 162
---
 accounts payable, other payables and accruals, borrowings, amounts due to subsidiaries’
non-controlling shareholders and amount due to ultimate holding company.

The main risks arising from
our financial instruments are price risk, foreign currency risk, interest rate risk, credit risk and liquidity risk. Our management manages
and monitors these risks to ensure appropriate measures are implemented on a timely and effective manner.

Price Risk

Equity price risk is the risk
that the fair values of equity investments decrease as a result of changes in the levels of equity indices and the value of individual
securities. We are exposed to equity securities price risk because certain investments we held are classified in the combined statements
of financial position as financial assets at FVTPL. Profit for the year would increase/decrease as a result 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.

<div align='center'>103</div>

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