Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 134

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 134
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 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. For the years ended December 31, 2022 and 2023 and for the six months ended June 30, 2024, 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% and 25.3% ,and net fair value changes on financial assets at fair value through profit or loss accounted for 41.6%, (88.8)% and 21.1% ,of our total revenue, respectively. Since we intend to hold our investments on a long -termbasis, fair value of our equity investments 83 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, 2024, the aggregate fair value of our strategic investment portfolio was US$79.5 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 of June 30, 2024, our strategic investment portfolio reached an aggregate fair value of US$79.5 million, of which our investment in banking sector accounted for 99.7%. 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 down its value. Additionally, our investments are concentrated in relatively few industries or sectors. As a result, a downturn in any particular industry or sector in which we are invested could significantly impact the aggregate returns we realize and therefore materially and adversely affect our results of operations and financial condition. Some of our strategic investments are in the form of securities that are not publicly traded. Investments in private businesses involve a high degree of business and financial risk. In many cases, there may be prohibition by contract or by applicable laws from selling such securities for a period of time