Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 62

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 62
---
 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'>29</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. We may not have the experience, history and reputation
to attract qualified persons, who may be more inclined to work for a larger and more established company. It is also necessary to work
with a distributor that will be capable of distributing the finished project to a suitable and receptive audience. The inability to locate
and secure qualified professionals to produce, distribute and market our projects would have a severe, negative affect our business and
ability to generate revenues.

The success of our
entertainment business segment depends on the success of a limited number of film releases each year and unpredictable factors in the
motion picture