Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 144

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 144
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 production
and cost of hotel operation

Our cost of production and
cost of hotel operation was US$3.2 million, US$5.9 million and US$15.6 million in 2022, 2023 and 2024, respectively.

Cost of production. Cost
of production refers to expenses related to production of magazines since the acquisition of the business of L’Officiel and The
Art Newspaper in April 2022 and October 2023, respectively. Cost of production primarily include (i) production expenses
including editorial expenses paid to editorial staff, payments to authors and other parties for creating articles, features and other
content for our magazines, design and layout expenses, (ii) distribution expenses such as shipping and subscription fulfillment expenses
incurred in connection with the delivery of magazines to subscribers and distribution network expenses spent on leases and equipment,
and (iii) printing expenses primarily including expenses on creating plates, printing materials and supplies such as paper, ink and
general office supplies, utilities and printing equipment acquisition and maintenance, as well as prepress expenses such as proofreading
and color correction. Our cost of production was US$1.5 million, US$3.8 million and US$7.1 million in 2022, 2023 and 2024,
respectively.

Cost of hotel operation. Cost
of hotel operation primarily includes utilities expenses, repair and maintenance of the hotel properties, travel agent commission and
cleaning expenses. Our cost of hotel operation was US$1.7 million, US$2.1 million and US$8.5 million in 2022, 2023 and 2024, respectively.

Other income

Our other income was US$0.5 million,
US$1.2 million and US$24.8 million in 2022, 2023 and 2024, respectively. Other income comprises gain on disposal of subsidiaries,
bank interest income and others.

Gain from a bargain
purchase

Our gain from a bargain purchase
was US$4.8 million and US$4.5 million in 2022 and 2023, respectively, representing the gain from our acquisition of the business
of L’Officiel and The Art Newspaper in April 2022 and October 2023, respectively. We recorded no gain from a bargain purchase
in 2024.

Other operating
expenses

Our other operating expenses
were US$3.5 million, US$5.7 million and US$15.