TGE's profit surged by 9.9 times, with total assets at US$1.8bn and net assets at US$932m
TGE's profit surged by 9.9 times, with total assets at US$1.8bn and net assets at US$932m |
| [30-September-2026] |
The Generation Essentials Group("TGE"orthe"Group"orthe"Company") InterimResults2026 Key Highlights:
PARIS and NEW YORK and LONDON, Sept. 30, 2026 /PRNewswire/ -- The Generation Essentials Group ("TGE", the "Company", or "we", NYSE: TGE; LSE: TGE), jointly established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD), is focusing on global strategies and developments in multi-media, entertainment, and cultural events worldwide as well as hospitality and VIP services, announces its unaudited financial results for the six months ended June 30, 2026 ("1H 2026"). Highlights and Key Developments
Feridun Hamdullahpur, Director, commented: "This was an outstanding growth year for TGE, with several strategic long-term acquisitions and investments worldwide being concluded. With the addition of the new hotels and the new L'Officiel Coffee & Bar, TGE is expanding its global presence. The Board of Directors congratulates the Management Team on their exceptional accomplishments." About The Generation Essentials Group The Generation Essentials Group (NYSE: TGE; LSE: TGE), jointly established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD), is headquartered in France and focuses on global strategies and developments in multi-media, entertainment, and cultural affairs worldwide as well as hospitality and VIP services. TGE comprises L'Officiel, The Art Newspaper, movie and entertainment projects. Collectively, TGE is a diversified portfolio of media and entertainment businesses, and a global portfolio of premium properties. Also, TGE is a special purpose acquisition company (SPAC) sponsor manager, with its first SPAC successfully raised and priced on December 18, 2025. Forward-Looking Statements This interim report contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify these forward-looking statements by words or phrases such as "may," "might," "will," "would," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to," "potential," "continue," or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations. Important risks and factors that could cause our actual results to be materially different from our expectations are generally set forth in the "Principal Risks and Uncertainties" section of this interim report, as well as in our most recent Annual Report on Form 20-F. You should read thoroughly this interim report and the documents that we refer to in this interim report with the understanding that our actual future results may be materially different from and worse than what we expect. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this interim report relate only to events or information as of the date on which the statements are made in this interim report. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Business Review and Important Events During the Six Months Ended June 30, 2026 Overview During the six months ended 30 June 2026, the Group accelerated the execution of its global diversification strategy, marked by disciplined capital deployment across our core operating segments. The period was characterised by significant asset acquisitions in the premium hospitality sector, alongside the strategic expansion of our media, lifestyle, and entertainment intellectual property. These initiatives have materially enhanced the Group's global asset base and further integrated our cross-sector ecosystem. Hospitality and Real Estate Portfolio Expansion A primary focus of 1H 2026 was the geographic diversification and scaling of our hospitality portfolio. The Group successfully completed a series of strategic acquisitions in key international gateway cities, deploying capital into prime, yield-generating assets:
Media, Lifestyle, and Brand Synergies The Group continued to leverage the global L'Officiel brand to drive organic growth and cross-sector synergies, with a specific focus on the Asian market:
Summary The operational milestones achieved in 1H 2026 reflect the Group's commitment to building a resilient, diversified portfolio. The integration of these newly acquired physical assets, combined with the ongoing expansion of our digital and cultural IP, strongly positions the Group for sustained long-term value creation. Executive Overview The six months ended June 30, 2026, marked a transformative period for The Generation Essentials Group, defined by a rapid and strategic expansion of our global footprint. Our primary focus during this interim period was the significant scaling of our hospitality portfolio, highlighted by the successful acquisition and integration of four premier hotel properties across key international markets: New York, Perth, Kuala Lumpur, and London. Alongside this major hotel expansion, we further enriched our lifestyle and VIP offerings by proudly launching our second L'Officiel Coffee and Bar, located in Macao SAR, building upon the momentum of our inaugural launch in Japan. These major operational milestones directly translated into robust growth in our core businesses. Revenue from contracts with customers grew by 35.8% to US$30.8 million, driven largely by a 59.8% surge in our hotel operations, hospitality, and VIP services segment. Revenue Our revenue decreased from US$87.4 million in the six months ended June 30, 2025 to US$65.9 million in the six months ended June 30, 2026. Segment Revenue Our revenue for the six months ended June 30, 2026 amounted to US$65.9 million, a change from US$87.4 million recorded for the comparable period in 2025. The change was primarily attributable to: -
Cost of production and cost of hotel operation Cost of production and cost of hotel operation increased from US$9.5 million for the comparable period in 2025 to US$13.8 million in the six months ended June 30, 2026, mainly due to the additional costs recognized from our hotels in line with the increase in revenue generated from our expanded hotel operations and recent acquisitions. Other income Other income increased from US$7 thousand for the comparable period in 2025 to US$2.1 million for the current period, mainly due to additional stock lending income from the ultimate holding company. Share-based payments During the six months ended June 30, 2025, the Company recognized a one-off share-based payment expense of US$58.9 million resulting from the completion of the business combination with Black Spade Acquisition II Co, as the fair value of consideration transferred was higher than the net identifiable assets acquired. There was no such expense recognized for the six months ended June 30, 2026. Fair value change on financial liabilities at FVTPL The Company has outstanding warrants recognized as financial liabilities at FVTPL, with changes in fair value recognized in profit or loss. In the current period, the Company recognized a US$71 thousand fair value gain on the warrants, compared to a US$5.2 million fair value gain for the comparable period in 2025. Other operating expenses Other operating expenses for the six months ended June 30, 2026 increased by 22.9% as compared to the comparable period in 2025 to US$12.8 million, primarily attributable to an increase in our hotels' depreciation charges and additional operating costs recognized from our hotels in line with the expansion of our hotel operations. Staff costs Staff costs for the six months ended June 30, 2026 increased slightly to US$6.1 million, compared to US$5.7 million for the comparable period in 2025. Finance costs Finance costs for the six months ended June 30, 2026 increased by 59.1% compared to the comparable period in 2025 to US$7.3 million, primarily due to increased interest on bank borrowings related to the acquisition of subsidiaries and new mortgage loans, as well as the effective interest on redeemable shares classified as financial liabilities. Income tax expense Income tax expense for the six months ended June 30, 2026 increased to US$5.1 million compared to US$1.5 million for the comparable period in 2025, primarily driven by US$3.4 million in Singapore Corporate Income Tax recognized during the current period. Profit for the year The Company recorded a profit of US$22.8 million in the six months ended June 30, 2026, compared to a profit of US$2.1 million for the comparable period in 2025. The 2025 GAAP profit was heavily impacted by the one-off share-based payments expense of US$58.9 million recognized resulting from the completion of the business combination. Financial Position and Balance Sheet Analysis The Group's financial position expanded significantly during the six months ended June 30, 2026, reflecting the successful execution of our strategic acquisitions in the hospitality sector. Total assets increased by 23.3% to US$1.8 billion as of June 30, 2026, compared to US$1.5 billion as of December 31, 2025. Total liabilities increased to US$872.4 million from US$625.0 million, while total equity strengthened to US$932.5 million from US$839.1 million. Key fluctuations in our balance sheet items include:
Liquidity and Capital Resources As of June 30, 2026, our total assets stood at US$1.8 billion, a significant increase from US$1.5 billion as of December 31, 2025. This growth was primarily due to the aforementioned additions to property, plant, and equipment. Our cash and bank balances decreased to US$10.0 million from US$17.7 million at the end of 2025. Net cash from operating activities was US$0.3 million, while net cash used in financing activities was US$8.4 million. To support our expansion, total borrowings increased to US$310.2 million (up from US$259.1 million at the end of 2025). This includes a new US$9.5 million 30-year mortgage loan secured by a property, bearing a fixed interest rate of 6.125% for the first five years. Despite the increase in leverage, our balance sheet remains robust, with total equity increasing to US$932.5 million, up from US$839.1 million at the end of 2025, supported by comprehensive income generated during the period. Going Concern The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these condensed consolidated financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing this interim financial information. Dividend The Board of Directors has resolved not to declare the payment of an interim dividend for the six months ended June 30, 2026 (1H 2025: Nil). The Board continues to prioritize the deployment of capital toward the Group's strategic global expansion.
THE GENERATION ESSENTIALS GROUP 1. CORPORATE INFORMATION The Generation Essentials Group (the "Company") is a limited liability company incorporated in the Cayman Islands. The Group is involved in the provision of media and entertainment services, hotel operation, hospitality and VIP services and strategic investments. The Company is listed on the New York Stock Exchange on June 5, 2025 through a business combination with Black Spade Acquisition II Co ("Black Spade II"), a blank check company incorporated for the purpose of effecting a business combination. 2. PRINCIPAL ACCOUNTING POLICIES Basis of preparation The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 ("IAS 34") "Interim Financial Reporting", and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended December 31, 2025. They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. The condensed consolidated financial statements have been prepared on the historical cost basis except for properties and certain financial instruments, which are measured at fair values. Other than change in accounting policies resulting from application of amendments to IFRSs, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended June 30, 2026 are the same as those presented in the Group's annual consolidated financial statements for the year ended December 31, 2025. Application of amendments to IFRS Standards In the current interim period, the Group has applied the following amendments to an IFRS Accounting Standard issued by IASB, for the first time, which are mandatorily effective for the Group's annual period beginning on January 1, 2026 for the preparation of the Group's condensed consolidated financial statements:
The application of the amendments to IFRS Accounting Standard in the current interim period has had no material impact on the Group's financial position and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements. THE GENERATION ESSENTIALS GROUP 3. REVENUE The following tables present disaggregated revenue information:
THE GENERATION ESSENTIALS GROUP 4. OPERATING SEGMENT INFORMATION Segment information is presented based on internal reports about components of the Group that are regularly reviewed by the chief operating decision maker, being the executive directors of the Company, for the purpose of allocating resources to segments and assessing their performance. The Group now operates its businesses in three operating segments: media and entertainment segment, hotel operations, hospitality and VIP services segment and strategic investment segment. Management closely monitors the performance of the Group's operating segments separately to support informed decisions on resource allocation and performance evaluation. Segment performance is evaluated based on reportable segment result, which is a measure of profit (loss) before tax from operations. The profit (loss) before tax from operations is measured after allocation of attributable costs of specialized staff and direct operating costs consistently with the Group's profit (loss) before tax from operations. Other income, gain from a bargain purchase, finance costs, share-based payment expenses and corporate expenses such as staff costs not directly attributable to segments, short-term leases and administrative expenses are excluded from such measurement. Segment assets exclude prepayments, deposits and other receivables, investments held in trust accounts and cash and bank balances, as these assets are managed on a group basis. Segment liabilities exclude tax payable, borrowings, redeemable shares classified as financial liabilities, financial liabilities at FVTPL, amount due to ultimate holding company, lease liabilities and deferred tax liabilities as these liabilities are managed on a group basis. Segment revenue and results The following tables present information by segment: For the six months ended June 30, 2026 (unaudited)
THE GENERATION ESSENTIALS GROUP 4. OPERATING SEGMENT INFORMATION - continued Segment revenue and results - continued For the six months ended June 30, 2025 (unaudited)
Segment assets and liabilities
THE GENERATION ESSENTIALS GROUP 4. OPERATING SEGMENT INFORMATION - continued Geographical information The following table sets forth the Group's revenue from contract with customers by geographical areas based on the location of the operations:
5. SHARE-BASED PAYMENTS In June 2025, the Company consummated a business combination with Black Spade Acquisition II Co ("Black Spade II"), a publicly traded SPAC, resulting in the Company becoming a publicly listed entity. This business combination does not fall within the scope of IFRS 3 Business Combinations because Black Spade II does not meet the definition of a business. Consequently, the transaction is accounted for as a capital reorganization and a share-based payment transaction within the scope of IFRS 2 Share-based Payment. Under this method of accounting, the Company is identified as the accounting acquirer. Accordingly, the consolidated financial statements represent a continuation of the Company, and the net assets of the Company are stated at their pre-transaction historical carrying amounts, with no goodwill or other intangible assets recognized. Any excess of the fair value of the equity instruments deemed to have been issued by the Company to Black Spade II shareholders over the fair value of Black Spade II's identifiable net assets acquired represents compensation for the service of a stock exchange listing. This excess is not recognized as an asset and is expensed immediately upon consummation of the transaction. The Company issued 6,004,126 Class A shares to Black Spade II shareholders and assumed 16,220,000 warrants (consisting of 5,100,000 public warrants and 11,120,000 sponsor warrants). The total deemed consideration was measured at approximately US$71,879,000, representing the fair values of the shares of US$60,119,000 and fair values of warrants of US$11,760,000 based on their respective closing market prices on the date of consummation. The excess of this consideration over the fair value of Black Spade II's identifiable net assets acquired of approximately US$12,977,000 resulted in share-based payment expenses of US$58,902,000, which was recognized in the consolidated statement of profit or loss for the six months ended June 30, 2026. THE GENERATION ESSENTIALS GROUP 6. OTHER OPERATING EXPENSES
7. STAFF COSTS
8. FINANCE COSTS
THE GENERATION ESSENTIALS GROUP 9. INCOME TAX EXPENSE
10. EARNINGS PER SHARE The calculation of the basic earnings per share attributable to the owners of the Company is based on the following data:
The weighted average number of ordinary shares for the purpose of basic earnings per share has been adjusted for the share subdivision and reclassification and re-designation of shares on June 3, 2025. The computation of diluted earnings per share does not assume the exercise of the Company's warrants because the exercise price of those warrants was higher than the average market price for shares for the six months ended June 30, 2026 and 2025. THE GENERATION ESSENTIALS GROUP 11. PROPERTY, PLANT AND EQUIPMENT During the six months ended June 30, 2026, the Group completed the acquisition of a hotel building located in New York City, United States, for a total consideration of US$69,000,000. The transaction was accounted for as an asset acquisition as it did not meet the definition of a business under IFRS 3. Upon completion of the acquisition, the property commenced operations under the name "AMTD IDEA Tribeca Hotel". Also, the Group completed the acquisition of several subsidiaries as disclosed in note 21, resulting in the aggregate addition of hotel buildings and related properties recognized at a provisional fair value of US$326,689,000. These assets and its associated operational results are reported within the Group's "hotel operation, hospitality and VIP services" segment. As of June 30, 2026, the Group's properties are stated at valuation of US$976,357,000 which is a Level 3 fair value measurement. There was no transfer into or out of level 3 during the period. During the six months ended June 30, 2026, the Group has recognized the revaluation gain of US$8,549,000 to the other comprehensive income. There has been no change to the valuation techniques during the period. In estimating the fair value of the properties, the highest and best use of the properties is their current use. 12. FINANCIAL ASSETS AT FVTPL
Note: During the year ended December 31, 2025, TGE Value Creative Solutions Corp ("TGE SPAC"), the subsidiary of the Company, consummated the initial public offering of 15,000,000 units (the "Units"), at US$10.00 per Unit, generating gross proceeds of US$150 million. Each Unit consists of one Class A ordinary share, and one-half of one redeemable warrant. Following the closing of the initial public offering, an amount of US$150 million from the net proceeds of the sale of the Units and the sale of the private placement warrants was placed in the trust account (the "Trust Account") located in the United States. The funds held in the Trust Account are restricted and can only be used to pay redeeming shareholders, consummate an initial business combination, or distribute to public shareholders in the event of liquidation. As of June 30, 2026, the investments held in the Trust Account, amounting to approximately US$152,545,000, were invested in money market funds. In October 2025, the Group entered into a stock lending agreement with a subsidiary of the ultimate holding company, pursuant to which the Group lent certain listed equity shares to the subsidiary of the ultimate holding company, bearing interest at 2% per annum computed based on market value of the listed equity shares. Upon the maturity of the stock lending agreement, the subsidiary of the ultimate holding company is obligated to return all borrowed listed equity shares to the Group. THE GENERATION ESSENTIALS GROUP 13. ACCOUNTS RECEIVABLE
14. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
15. DERIVATIVE FINANCIAL INSTRUMENTS AMTD Group Inc. and the Company entered into an agreement over the share price of AMTD Digital Inc., pursuant to which the Group is entitled to recover from AMTD Group Inc. if the share price of AMTD Digital Inc. is lower than that at the time the Group invested in the shares of AMTD Digital Inc. (the "Price Protection Agreement"). The purpose of the Price Protection Agreement is to provide a financial safety net for the Group by ensuring to receive a minimum value for its investments in shares of AMTD Digital Inc. The Price Protection Agreement was accounted for as a derivative financial asset and the net fair value loss recognized in profit or loss was approximately US$28,194,000 for the six ended June 30, 2026 (six months ended June 30, 2025: fair value gain of US$103,208,000). THE GENERATION ESSENTIALS GROUP 16. OTHER PAYABLES AND ACCRUALS
17. BORROWINGS
On March 10, 2026, the Company entered a new $9.5 million mortgage loan, secured by a property with the carrying amount of US$23 million as of June 30, 2026. The loan has a 30-year term, bearing an fixed interest rate of 6.125% per annum for the first five years before transitioning to a variable rate. Except for bank borrowings of US$10,650,000 and US$9,481,000 as of June 30, 2026 carrying at fixed-rate of 5.0% and 6.125% per annum, respectively, other bank borrowings carry variable interest rate with a weighted average contractual interest rate of 4.04% p.a. as of June 30, 2026. As of June 30, 2026, the Group had bank borrowings of approximately US$280,170,000 secured by the Group's properties, which had carrying amounts of approximately US$884,153,000. US$167,138,000 of borrowings as of June 30, 2026 are guaranteed by the Company and the holding company of the non-controlling shareholder of the Group's subsidiaries based on the percentage of shareholding. Also, a borrowing of US$30,000,000 as of June 30, 2026 is secured by the assets of the Company and a wholly owned subsidiary of the Company which are located in the United States and guaranteed by AMTD IDEA Group. THE GENERATION ESSENTIALS GROUP 18. FINANCIAL LIABILITIES AT FVTPL The Group's financial liabilities at FVTPL consist of warrants issued by the Company and TGE SPAC. During the six months ended June 30, 2026, there were no changes to the terms or the number of outstanding warrants. As of June 30, 2026, the outstanding warrants comprised:
As of June 30, 2026, the total fair value of the warrant liabilities was US$5,076,000 (December 31, 2025: US$5,095,000). 19. SHARE CAPITAL The movement of share capital is as follows:
20. RELATED PARTY TRANSACTIONS In addition to the transactions disclosed elsewhere in these condensed consolidation financial statements, the Group had the following transactions with related parties during the period:
THE GENERATION ESSENTIALS GROUP 21. ACQUISITION OF SUBSIDIARIES During the six months ended June 30, 2026, the Group completed the following acquisitions. These acquisitions are in line with the Group's ongoing strategy to expand its footprint in key hospitality markets, diversify its asset portfolio, and increase recurring revenue streams. By integrating these properties, the Group expects to achieve operational synergies and leverage its existing hospitality management expertise to drive long-term profitability. (i) Acquisition of The Ritz Carlton, Perth On May 29, 2026, the Group completed the acquisition of a 50% equity interest and 50% of the outstanding shareholder loans in FEC Hotel Operations Perth EQ Pty Ltd and Perth FEC Pty Ltd (collectively, the "Perth Hotel Group"), which own and operate The Ritz-Carlton, Perth. The Group has assessed that it has obtained control over the Perth Hotel Group and has accordingly consolidated its financial results, recognizing the remaining 50% as a non-controlling interest. Consideration transferred The total consideration for the acquisition was US$71,565,000 (equivalent to AUD100,000,000). The settlement and allocation of the consideration are detailed below:
The deferred consideration is payable in four equal semi-annual instalments, with the final instalment due on December 31, 2027. As at June 30, 2026, the outstanding balance is recognized as a financial liability within "Accruals and other payables" in the consolidated statement of financial position. Allocation of consideration:
Provisional fair value of identifiable assets and liabilities acquired
THE GENERATION ESSENTIALS GROUP 21. ACQUISITION OF SUBSIDIARIES - continued (i) Acquisition of The Ritz Carlton, Perth - continued The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US$2,449,000 at the date of acquisition had gross contractual amounts of US$2,449,000. The best estimate at acquisition date of the contractual cash flows not expected to be collected amounted to US$2,449,000. The initial accounting for the property, plant and equipment acquired in the above business combination with fair value of US$233,817,000 have been determined on a provisional basis, awaiting the completion of professional valuations. The amounts of deferred tax liabilities and goodwill may be adjusted accordingly. Non-controlling interests Non-controlling interests in Perth Hotel Group are measured by reference to the proportionate share of recognized amounts of net identifiable assets of Perth Hotel Group at the date of acquisition. Net cash inflow on acquisition of Perth Hotel Group
As of December 31, 2025, the Group paid AUD60,000,000 deposits for the acquisition. (ii) Acquisition of Upper View Regalia Hotel, Kuala Lumpur On May 29, 2026, the Group completed the acquisition of a 100% equity interest and outstanding shareholder loans in Magic Star International Limited and its subsidiaries (collectively, the "Kuala Lumpur Hotel Group"), which own 80% effective interests in Upper View Regalia Hotel, Kuala Lumpur. Consideration transferred The total consideration for the acquisition was US$38,290,000 (equivalent to HK$300,000,000). The settlement and allocation of the consideration are detailed below:
The deferred consideration of HK$24 million is payable by settled by the issuance of shares within 60 days after the data of completion and HK$26 million is payable by the issuance of shares on the later of 90 days post-completion or upon the completion of specific hotel renovations. As at June 30, 2026, the outstanding balance is recognized as a financial liability within "Accruals and other payables" in the consolidated statement of financial position. THE GENERATION ESSENTIALS GROUP
21. ACQUISITION OF SUBSIDIARIES - continued (ii) Acquisition of Upper View Regalia Hotel, Kuala Lumpur - continued Allocation of consideration:
Provisional fair value of identifiable assets and liabilities acquired
The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US$321,000 at the date of acquisition had gross contractual amounts of US$321,000. The best estimate at acquisition date of the contractual cash flows not expected to be collected amounted to US$321,000. The initial accounting for the property, plant andequipment acquired in the above business combination with fair value of US$58,728,000 have been determined on a provisional basis, awaiting the completion of professional valuations. The amounts of deferred tax liabilities and goodwill may be adjusted accordingly. Non-controlling interests Non-controlling interests in Kuala Lumpur Hotel Group are measured by reference to the proportionate share of recognized amounts of net identifiable assets of Kuala Lumpur Hotel Group at the date of acquisition. Net cash inflow on acquisition of Kuala Lumpur Hotel Group
As of December 31, 2025, the Group paid HK$230,000,000 deposits for the acquisition. During the six months ended June 30, 2026, the ultimate holding company paid additional HK$20,000,000 upon the completion of the acquisition. THE GENERATION ESSENTIALS GROUP 21. ACQUISITION OF SUBSIDIARIES - continued (iii) Acquisition of Dao by Dorsett Hornsey, London On June 2, 2026, the Group completed the acquisition of a 100% equity interest and the outstanding shareholder loans in Quality Hornsey PropCo Limited and its subsidiary (collectively, the "Hornsey Hotel Group"), which own and currently operate as "AMTD Dao by Dorsett Hornsey" hotel. Consideration transferred The total consideration for the acquisition was US$30,424,000 (equivalent to GBP 22,656,000). The settlement and allocation of the consideration are detailed below:
The deferred consideration is payable within 45 days after the date of completion. As at June 30, 2026, the outstanding balance is recognized as a financial liability within "Accruals and other payables" in the consolidated statement of financial position. Allocation of consideration:
Provisional fair value of identifiable assets and liabilities acquired
The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US$111,000 at the date of acquisition had gross contractual amounts of US$111,000. The best estimate at acquisition date of the contractual cash flows not expected to be collected amounted to US$111,000. The initial accounting for the property, plant and equipment acquired in the above business combination with fair value of US$34,144,000 have been determined on a provisional basis, awaiting the completion of professional valuations. The amounts of deferred tax liabilities and goodwill may be adjusted accordingly. THE GENERATION ESSENTIALS GROUP 21. ACQUISITION OF SUBSIDIARIES - continued (iii) Acquisition of Dao by Dorsett Hornsey, London - continued Net cash inflow on acquisition of HornseyHotel Group
As of December 31, 2025, the intermediate holding company paid GBP2 million (equivalent to US$2,685,000) deposits for the acquisition. During the six months ended June 30, 2026, the ultimate holding company paid additional US$22,723,000 upon the completion of the acquisition. 22. SUBSEQUENT EVENTS The Group has evaluated events and transactions occurring after the reporting period ended June 30, 2026, up to the date these condensed consolidated financial statements were authorized for issuance. There have been no significant events subsequent to the end of the reporting period that require adjustment to or disclosure in these condensed consolidated financial statements. PRINCIPALRISKSAND UNCERTAINTIES The Group's risk register identifies key risks including any emerging risks, and monitors progress in managing and mitigating these risks. Each risk identified is subject to an assessment incorporating likelihood of occurrence and potential impact on the Group. The Group's risk register is subject to review by the Audit Committee and Board. The principal risks and uncertainties faced by the Group are reported annually within the Annual Report and Financial Statements for the year ended December 31, 2025, published on April 29, 2026.
As part of the review, certain risks were noted to be at an increased level:
The other risks included have not materially changed from those reported within the annual report. The principal risks and uncertainties which are applicable for the second half of the year are summarised below.
RESPONSIBILITY STATEMENT Each of the Directors of The Generation Essentials Group confirms that, to the best of each person's knowledge and belief:
Furthermore, in accordance with DTR 4.2.9R, the Directors confirm that this condensed consolidated interim financial information for the six months ended June 30, 2026, has not been audited or reviewed by the Company's independent auditors. By order of the Board Feridun Hamdullahpur Samuel Chau
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Company Codes: LSE:TGE,NYSE:TGE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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