Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 64

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 64
---
 royalties received, and indirectly, from reduced sales of our products. Our brands may also suffer if, as
a result, there is any delay or failure in the distribution of our content and products. Additionally, the termination of franchise relationships,
whether initiated by us or our franchisees, could result in the closure of locations, reduced market presence and increased operational
costs associated with transitioning ownership or management.

Although we regularly implement
royalty reviews of our franchisees, there can be no assurance that they will properly report royalty income or that such reviews will
reveal any non-compliance with the terms of the relevant franchisees. Even if errors are revealed, the resolution of such errors may
prove to be time-consuming and expensive.

We may face business
challenges and increased costs in our transition from a franchise business model to a direct ownership model in respect of our media
business.

We operate our media business
in a hybrid model of direct ownership and franchise business and we are in the process of transitioning from a franchise business model
to a direct ownership model in certain countries and regions and expanding our network. While we believe that the direct ownership model
can drive significant revenue growth for us in the future, the transition to the direct ownership model will require substantial financial
resources for operational restructuring, developing or acquiring new expertise in managing operational risks, employee retention and
training, building up knowledge base of local markets and development of marketing initiatives, among other things. There is no assurance
that we will be successfully navigating through this transition and mitigating the gaps in operational capabilities, marketing expertise
and customer relationship. Failure to transition successfully may lead to loss of our brand value, customer loyalty and market share,
and therefore could have significant adverse effects on our business, financial condition and results of operations.

<div align='center'>31</div>

Risks Relating to Our
Entertainment Business

The entertainment
industry is highly competitive.

The entertainment industry
is highly competitive. It is also partially dependent on the availability of potential viable projects and necessary funding to successfully
complete such projects. Accordingly, we will need to locate promising projects and be able to secure necessary funding, in what may be
uncertain markets.

Further, we believe the successful
production and distribution of any movie project involves being able to secure qualified personnel to produce, finalize and market the
project. Production requires qualified directors, writers, performers and a variety of technical persons to produce a final product.
Once produced, it is necessary to distribute and market the project to a receptive public.