Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 140

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 140
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2024 and the six months ended June 30, 2024 and 2025, 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, US$7.1 million, US$3.5 million and US$4.1
million in 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025, 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, US$8.5 million, US$1.9 million and US$5.4 million
in 2022, 2023 and 2024 and the six months ended June 30, 2024 and 2025, respectively.

Other income

Our other income was US$0.5 million,
US$1.2 million, US$24.8 million, US$24.8 million and US$7.0 thousand in 2022, 2023 and 2024 and the six months ended June 30,
2024 and 2025, 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