Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 63

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 63
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 a limited number of motion pictures each year. As such, the success or failure of a small number of these motion pictures
could have a significant impact on our entertainment business segment and our results of operations in both the year of release and in
subsequent years. The film industry is inherently unpredictable, and the success of any given film can be influenced by factors beyond
our control, such as changing consumer preferences, competition from other entertainment offerings and broader economic conditions. In
general, the economic success of a motion picture is largely determined by the appeal of the motion picture to a broad audience and by
the effectiveness of the marketing of the motion picture. We cannot precisely predict the economic success of any of the motion pictures
we produce because we cannot predict with certainty a motion picture’s acceptance by the public. If we do not accurately judge audience
acceptance in selecting the motion pictures for production, or if the motion pictures are not effectively marketed, we may not recoup
our costs or realize our anticipated profits. In addition, the economic success of a motion picture depends upon the public’s acceptance
of competing motion pictures, the availability of alternative forms of entertainment and leisure-time activities, general economic conditions
and other tangible and intangible factors, all of which can change and none of which can be predicted with certainty. Additionally, delays
in production or release schedules, which may arise due to, among other things, creative, technical, or regulatory challenges, can further
impact the timing and financial contribution of films. Accordingly, our results may fluctuate significantly from year to year based on
the box office performance, timing of releases and market reception of the limited number of films we produce at any given time and such
factors render our historical financial results not indicative of our future performance.

Due to the inherent
nature of producing motion pictures, we provide advances and funding for motion pictures in advance and assume the risk of not being able
to recoup these investments.

We incur significant costs
and cash expenditures to acquire movie rights. Many of our agreements to acquire movie rights require up-front payments. We determine
the amount of the payments or funding we are willing to make based on our estimate of the economic success of the motion picture. Although
these estimates are based on our knowledge of industry trends, market conditions and the market potential of the motion picture, actual
results may ultimately differ from our estimates.

The production of motion pictures
is subject to a number of uncertainties, including delays and increased expenditures due to creative differences among key cast members