Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 152

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 152
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 and occupancy rate of our hotels.

Our segment revenue from
the strategic investment segment increased from US$20.4 million in 2022 to US$22.7 million in 2023, primarily due to (i) the
increase in realized gain to the disposed investment from US$1.0 million in 2022 to US$50.5 million in 2023 resulting from
the realized gain in derivative contracts of upside participation and profit distribution agreements and future settlement contract (as
described in details in note 17 of TGE’s consolidated financial statements included herein), which contracts were terminated
in 2023 and (ii) the increase in dividend income from US$6.4 million in 2022 to US$9.9 million in 2023. The increase was
partially offset by the unrealized loss on our investments in the listed shares of Bank of Qingdao and Guangzhou Rural Commercial Bank
and derivative financial instruments of US$37.8 million in year 2023, while an unrealized gain of US$13.0 million was recognized
in 2022, due to fluctuation in the stock market affecting the fair value of these listed shares.

Cost of production
and cost of hotel operation

Our cost of production and
cost of hotel operation increased from US$3.2 million in 2022 to US$5.9 million in 2023.

Our cost of production increased
from US$1.5 million in 2022 to US$3.8 million in 2023, mainly due to the additional cost incurred as a result of the expansion
of L’Officiel into various jurisdictions such as Singapore and Malaysia since 2023 and our acquisition of The Art Newspaper in
October 2023.

Our cost of hotel operation
increased from US$1.7 million in 2022 to US$2.1 million in 2023, mainly due to the additional costs incurred to maintain the
operation of services resulting from the increase in occupancy rate of our hotels.

Other income

Our other income marginally
increased from US$0.5 million in 2022 to US$1.2 million in 2023.

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Gain from a bargain
purchase

Our gain from a bargain purchase
decreased from US$4.8 million in 2022 to US$4.5 million in 2023. The gain from a bargain purchase in 2023