Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 322

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 322
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 subsidiaries’ non-controlling shareholders and amount due to ultimate holding company approximate
to their carrying amounts largely due to the short-term maturities of these instruments or repayable on demand, or that they are interest-bearing
at market rates.

The Group’s finance department headed by the chief financial
officer is responsible for determining the policies and procedures for the fair value measurement of financial instruments. The finance
director reports directly to the chief financial officer. At each reporting date, the finance department analyzes the movements in the
values of financial instruments and determines the major inputs applied in the valuation. The valuation is reviewed and approved by the
chief financial officer.

Some of the Group’s financial instruments are measured
at fair value for financial reporting purposes. The management of the Company is responsible for determining the appropriate valuation
techniques and inputs for fair value measurements.

In estimating the fair value, the Group uses observable market
data to the extent it is available. Where Level 1 inputs are not available, the Group refers to the prices of recent transactions or engages
third-party qualified valuers to perform the valuation.

The management of the Company works closely with the qualified
external valuers to establish the appropriate valuation techniques and inputs to the model. The management reports the findings to the
directors of the Company to explain the cause of fluctuations in the fair value.

Below is summary of significant unobservable inputs to valuation
of financial instruments together with a quantitative sensitivity analysis:

<div align='center'>F-72

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 32. | FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL 
 INSTRUMENTS (cont.)                              |

| As of December 31, 2022                            |     | Valuation                      
 Technique                      |     | Significant                                                                                                                                                                                                  
 unobservable input                                                                                                                                                                                           |     | Sensitivity of value                                                                              
 to the input                                                                                      |
|:---------------------------------------------------|:----|:-------------------------------|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:--------------------------------------------------------------------------------------------------|
| Movie income right investments of US$13,247,000    |     | Discount cash flow model       |     | Discount rate takes into account weighted average cost of capital using a Capital Asset Pricing Model ranged from 10.40% to 12.59% and expected ticket sales performance