Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 367

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 367
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 5,863 |

The movement in Level 3 on derivative financial instruments
during the years is disclosed in note 17.

| 33. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |

The Group has various financial assets and liabilities such
as financial assets at FVTPL, accounts receivable, deposits and other receivables, amounts due from joint ventures, restricted cash, cash
and bank balances, accounts payable, other payables and accruals, borrowings, amounts due to subsidiaries’ non-controlling shareholders
and amount due to ultimate holding company.

The main risks arising from the Group’s financial instruments
are price risk, foreign currency risk, interest rate risk, credit risk and liquidity risk. Management manages and monitors these risks
to ensure appropriate measures are implemented on a timely and effective manner.

Equity price risk is the risk that the fair values of equity
investments decrease as a result of changes in the levels of equity indices and the value of individual securities.

The Group is exposed to equity securities price risk because
certain investments held by the Group are classified in the consolidated statements of financial position as financial assets at FVTPL. Profit
for the year would increase/decrease as a result of gains/losses on equity securities classified as financial assets at FVTPL.

As of December 31, 2022, 2023 and 2024, if there had
been a 5% increase/decrease in the equity price of listed equity shares, included in financial assets at FVTPL, with all other variables
held constant, the Group’s profit before tax would have been approximately US$5,524,000, US$3,603,000 and US$20,376,000, respectively,
higher/lower.

The Group had concentration risk in two listed equity shares
as of December 31, 2022 and 2023. As of December 31, 2024, the Group had concentration risk in equity shares in AMTD Digital
Inc. and two listed equity shares.

On April 1, 2019, the Group entered Agreements with the
counterparty in relation to the movement of the share price of the entirety of the Underlying Assets to reduce the Group’s exposure
the changes in fair value of financial assets. The derivative financial asset is initially recognized at fair value and are subsequently
remeasured at fair value. Any gains or losses arising from changes in fair value of derivative financial asset are taken directly to profit