Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 320

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 320
---
 counterparty amounting to US$167,388,000 as of December 31, 2022 (Note 17).
As of December 31, 2022, the directors of the Company consider that the credit risk is not significant because the market value
of listed securities pledged to the Group in relation to the Agreement is higher than the outstanding carrying amounts of the Agreement.

The Group performed impairment assessment
for financial assets under ECL model. Information about the Group’s credit risk management, maximum credit risk exposures and the
related impairment assessment, if applicable, are summarized as below:

Accounts receivable

Before accepting any new customer,
the Group uses an internal credit scoring system to assess the potential customer’s credit quality and defines credit limits by
customer. Limits and scoring attributed to customers are reviewed twice a year. Other monitoring procedures are in place to ensure that
follow-up action is taken to recover overdue debts. Also, the management of the Group has delegated a team responsible for determination
of credit limits and credit approvals. In this regard, the management considers that the Group’s credit risk is significantly reduced.

<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>

| 33. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND 
 POLICIES (cont.)                         |

The Group performs impairment assessment
under ECL model on other accounts receivable collectively and grouped based on shared credit risk characteristics by reference to the
Group’s past due status of outstanding balances, nature, size and industry of debtors and external credit ratings. The Group assesses
the ECL of accounts receivable based on historical observed default rates over the expected life of the debtors and forward-looking information
(including macroeconomic data such as GDP growth and unemployment rate) that is available without undue cost or effort.

Bank balances and restricted cash

Credit risk on bank balances and restricted
cash is limited because the counterparties are reputable banks with high credit ratings assigned by international credit agencies. The
Group assessed 12-month ECL for bank balances and restricted cash by reference to information relating to probability of default and
loss given default of the respective credit rating grades published by external credit rating agencies. Based on the average loss rates,
the 12-month ECL on bank balances and restricted cash is insignificant and therefore no loss allowance was recognized.