Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 494

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 494
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ES TO THE COMBINED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 and 2023 and
six months ended June 30, 2023 AND 2024 12.INTANGIBLE ASSETS (cont.) 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. Based on the result of the assessment, management of the Group determined that the recoverable of the cash -generatingunit is higher than the carrying amount and there is no impairment of the related intangible assets allocated to cash -generatingunit. Management of the Group believes that any reasonably possible changes in any of these assumptions would not cause the carrying amount of cash -generatingunit to exceed its recoverable amount. As of December 31, 2023 and June 30, 2024, carrying amount of brand name of approximately US$25,809,000 and US$25,817,000, respectively, are allocated to cash -generatingunit of the business unit under “The Art Newspaper”. For the purpose of impairment testing, the recoverable amount of this cash -generatingunit 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 -yearperiod, and pre -taxapproximate discount rate of 10.3%. Cash flows beyond the 5 -yearperiod 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 -termgrowth 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 result of the assessment, management of the Group determined that the recoverable of the cash -generatingunit is higher than the carrying amount and there is no impairment of the related intangible assets allocated to cash -generatingunit. Management of the Group believes that any reasonably possible changes in any of these assumptions would not cause the carrying amount of cash -generatingunit to exceed its recoverable amount. 13.INTERESTS IN JOINT VENTURES

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