Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 42

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 42
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 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.

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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. We derive a meaningful
portion of our revenue from strategic investment business. For the years ended December 31, 2022, 2023 and 2024 and the six
months ended June 30, 2025, 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%, 33.0% and 9.9%, and net fair value changes on financial assets at fair value through
profit or loss accounted for 41.6%, (88.8)%,34.2% and 64.2%, 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 June 30, 2025, the aggregate fair value of our strategic investment portfolio was US$369.2 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