Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 288

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 288
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 to perform the valuation. The management works with the independent
qualified professional valuer to establish the appropriate valuation techniques and inputs for Level 3 fair value measurement. Where
there is a material change in the fair value of the properties, the causes of the fluctuations will be reported to the directors of the
Company.

The independent qualified professional
valuer adopted the following approaches in determination of the revalued amount:

| ● | Hotel properties:                                                                                  
 income approach by using discounted cash flow analysis to arrive at the valuation of the           
 hotel properties. The discounted cash flow analysis for the properties is established based        
 on analysis of assumptions about future market conditions affecting supply, demand, income,        
 expenses and the potential of risk. These assumptions determine the earning capability of          
 the properties upon which the pattern of income and expenditures are projected to establish        
 a fair maintainable operating profit on a pre-tax yearly basis by a reasonably efficient           
 operator over a 10-year investment horizon; and the anticipated net operating income stream        
 receivable thereafter is capitalized at appropriate terminal capitalization rates and adjusted     
 to present value by appropriate discount rate to reflect the capital values beyond the 10 years.   
 As of December 31, 2022, 2023 and 2024, the revalued amount of hotel properties is US$173,126,000, 
 US$179,221,000 and US$526,099,000, respectively.                                                   |

| ● | Other properties:                                                                        
 direct comparison approach by reference to market transactions of comparable properties. 
 As of December 31, 2022, 2023 and 2024, the revalued amount of other properties is nil,  
 US$15,414,000 and US$48,000,000, respectively.                                           |

There has been no change to the valuation
techniques during the year. In estimating the fair value of the properties, the highest and best use of the properties is their current
use.

The key inputs used in valuing the
hotel property in Hong Kong by the independent qualified professional valuer under the aforesaid income approach were the discount
rate used at 5.1%, 5.2% and 5.2%, respectively as of December 31, 2022, 2023 and 2024 and average daily rates, which ranged from
HK$880 to HK$1,810, HK$1,070 to HK$1,921 and HK$1,070 to HK$1,921