Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 152

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 152
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 a bargain purchase in 2023 resulted from the
acquisition of The Art Newspaper, while the gain in 2022 resulted from the acquisition of L’Officiel.

Other operating
expenses

Our other operating expenses
increased from US$3.5 million in 2022 to US$5.7 million in 2023, mainly due to an increase in depreciation as a result of the
increase in the revalued amount of our hotel property.

Staff costs

Our staff costs increased
from US$3.9 million in 2022 to US$7.9 million in 2023, mainly due to the increase in salaries as a result of our expansion.

Share of (losses)
profits of joint ventures

Our share of profits of joint
venture was US$0.8 million in 2022 and our share of losses of joint ventures was US$2.6 million in 2023. The difference was
mainly due to the increase in depreciation of our hotel property and the increase in our hotel joint venture’s finance costs.

Finance costs

Our finance costs increased
from US$2.6 million in 2022 to US$7.1 million in 2023, mainly due to (i) an increase in our borrowings and the interests
payable thereon, and (ii) an increase in average interest rate charged by the banks due to global interest rate hike in 2023.

Income tax expense

Our income tax increased from
US$0.6 million in 2022 to US$1.8 million in 2023, mainly due to the increase in the assessable profits generated from our operations.

Profit for the year

As a result of the foregoing,
our profit decreased from US$23.1 million in 2022 to US$17.2 million in 2023.

Liquidity and Capital Resources

Cash Flows and Working
Capital

The following table sets forth
a summary of our cash flows for the years indicated.

|                                                      |     | For the Year Ended December 31, 
 2022                            |        |   |     | 2023 |        |   |     | 2024 |        |   |
|:-----------------------------------------------------|:----|:--------------------------------|-------:|:--|:----|:-----|-------:|:--|:----|:-----|-------:|:--|
|                                                      |     | US$                             |        |   |     | US