Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 67

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 67
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 co-producer of or financial investor in our films.

We co-produce (in a non-controlling
position) or invest in film production, which exposes us to several risks. As a co-producer, we generally rely on the lead producer to
manage key aspects of the movie production, including creative decisions, budgeting, casting, scheduling and distribution. We generally
have a limited ability to influence or control critical elements of a movie project, and accordingly production outcomes for our co-produced
movies may not fully align with expectations or objectives. Our strategic or financial interests may not align with those of the lead
producers of our movies. The lead producer’s priorities, resources or decision-making processes may diverge from those of ours,
which could potentially give rise to a misalignment or conflict of interests. Furthermore, we may have limited recourse in the event
of mismanagement, delays or disputes with the lead producer, which could adversely impact the quality, timing and commercial success
of the film. These could lead to increased uncertainty, reduced profitability and greater exposure to operational and financial risks
in respect of our entertainment business.

The production
of motion picture is a capital-intensive process, and our capacity to generate cash or obtain financing on favorable terms may be insufficient
to meet our anticipated cash requirements.

The costs to develop and
produce a motion picture are substantial. We are required to fund our costs for motion picture-related activities and other commitments
with cash retained from operations, as well as from bank and other borrowing and participation by other producers. If our motion pictures
fail to perform, we may be forced to seek substantial sources of outside financing. Such financing may not be available in sufficient
amounts for us to continue to make substantial funding in the production of new motion pictures or may be available only on terms that
are disadvantageous to us, either of which could have a material adverse effect on our growth or our business.

Moreover, the costs of producing
motion pictures have increased in recent years and may further increase in the future, which may make it more difficult for a motion
picture we produce to generate a profit. Also, compensation for star performers and other key creative personnel has been on the rise.
As a result, there can be no assurance that revenue from our motion picture production would be sufficient to offset increases in the
cost of production and distribution.

Industry changes
in the entertainment industry may have a negative impact on our operations.

The entertainment industry,
in general, is continually undergoing significant changes, primarily due to technological developments.