Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 491

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 491
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 values of the properties, the Group engages an independent qualified professional valuer 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 income approach by using discounted cash flow analysis to arrive at the valuation of 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 -taxyearly basis by a reasonably efficient operator over a 10 -yearinvestment 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. 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 property in Hong Kong by the independent qualified professional valuer under the aforesaid income approach were the discount rate used at 5.10%, 5.2% and 5.2%, respectively as of December 31, 2022 and 2023 and June 30, 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, respectively, per room. Any decrease in the discount rate used would result in an increase in fair value measurement of the property, and vice versa, holding all other variables constant. The sensitivity to a 50 basis points increase/decrease in discount rate holding all other variables constant, the revalued amount of property will decrease/increase by approximately US$6,412,000/US$7,694,000, US$7,662,000/US$6,385,000 and US$7,662,000/US$6,385,000, respectively, for the years ended December 31, 2022 and 2023 and six months ended June 30, 2024. The key