Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 41

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 41
---
 our key management or our founder, it
would disrupt our operations; would impact our competitive position and reputation; and could adversely affect our business, financial
condition or results of operations. Effective succession planning is also important to our long-term success, and a failure to effectively
ensure train and integrate new employees could hinder our strategic planning and execution.

We make strategic
investments using our own capital, and may not be able to realize any profits from these investments for a considerable period of time,
or may lose some or all of the principal amounts of these investments.

We derive a meaningful portion
of our revenue from strategic investment business. For the years ended December 31, 2022, 2023 and 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
33.0%, and net fair value changes on financial assets at fair value through profit or loss accounted for 41.6%, (88.8)% and 34.2%, of
our total revenue, respectively. Our strategic investment portfolio primarily consists of investments in equity securities of public and
private companies. Making a sound investment decision requires us to carefully identify and select a target company based on its business,
financial condition, operations, and the industry in which it operates. In general, this process involves analytical assessment and estimation
of the target company’s profitability and sustainability. We may make unsound investment decisions due to fraudulent and concealed,
inaccurate or misleading statements from a target company in the course of our due diligence, which could lead us to mistakenly estimate
the value of the target company and affect our ability to derive profit from such investments. In addition, our understanding of and judgment
on the target company’s business and prospects, and the industry in which the target company operates may deviate and result in
inaccurate investment decisions.

Our investments are concentrated
in relatively few industries or sectors and our investment portfolio may be concentrated in certain geographic regions, individual investments,
or types of securities that may or may not be listed. Any significant decline in the value of our investment portfolio may therefore adversely
impact our business, results of operations, and financial condition.

In addition, we have limited
control over our investee companies. We do not have the necessary power to mandate or block material corporate actions. If these investee
companies fail to carry out business in a compliant manner, incur overly excessive amount of debt or go bankrupt,