TGE's profit surged by 9.9 times, with total assets at US$1.8bn and net assets at US$932m
Cash and bank balances fell to US$10.0 million from US$17.7 million at the end of 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
The Generation Essentials Group (TGE) reported unaudited first-half 2026 net profit of US$22.8 million, compared with US$2.1 million a year earlier. Revenue from contracts with customers rose 35.8% to US$30.8 million, but total revenue fell to US$65.9 million from US$87.4 million as investment fair-value gains declined. EPS increased 366.7% to US$0.56. The prior period included a US$58.9 million share-based payment expense that did not recur.
TGE completed hotel acquisitions in Perth, New York, Malaysia and London; hospitality revenue rose 59.8% to US$20.2 million. At June 30, total assets were US$1.8 billion and equity was US$932.5 million, compared with US$1.5 billion and US$839.1 million at December 31, 2025. Borrowings increased to US$310.2 million from US$259.1 million, while finance costs rose 59.1% to US$7.3 million. The board resolved not to declare an interim dividend.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFirst-half 2026 net profit increased to US$22.8 million from US$2.1 million in first-half 2025.
- Moderate pointCustomer-contract revenue grew 35.8% to US$30.8 million in first-half 2026.
- Moderate pointHospitality revenue rose 59.8% to US$20.2 million in first-half 2026, following hotel acquisitions.
- Moderate pointRitz-Carlton Perth acquisition completed for A$100 million, expanding TGE's hospitality portfolio.
- Moderate pointNew York Tribeca Hotel acquisition completed for US$69 million, adding a US hospitality asset. 13% of market cap
- Moderate pointUpper View Regalia Hotel acquisition completed for US$38 million, expanding TGE's Malaysian hospitality portfolio. 7.2% of market cap
- Moderate pointDao by Dorsett Hornsey Hotel acquisition completed for US$30 million, adding a London hospitality asset. 5.6% of market cap
- Moderate pointTotal assets increased 23.3% to US$1.8 billion at June 30, 2026, versus December 31, 2025.
8 minor points
- Minor pointFirst-half 2026 EPS increased 366.7% to US$0.56 per share.
- Minor pointMedia advertising and marketing income increased to US$10.5 million from US$10.0 million in first-half 2025.
- Minor pointDividend income and gains on disposed financial assets reached US$10.1 million versus US$8.6 million in first-half 2025.
- Minor pointUS$58.9 million one-off share-based payment expense recorded in first-half 2025 did not recur in first-half 2026.
- Minor pointOther income rose to US$2.1 million from US$7 thousand, mainly from ultimate-parent stock lending income.
- Minor pointTotal equity increased to US$932.5 million from US$839.1 million at December 31, 2025.
- Minor pointExisting-property revaluation surplus of US$8.5 million contributed to first-half 2026 property asset growth.
- Minor pointNew mortgage funding of US$9.5 million supported TGE's real estate expansion.
Negative
- Moderate pointTotal revenue fell to US$65.9 million in first-half 2026 from US$87.4 million in first-half 2025.
- Moderate pointTotal liabilities increased to US$872.4 million from US$625.0 million at December 31, 2025.
- Moderate pointUS$28.2 million fair-value loss arose on the price protection agreement related to AMTD Digital share investments. 5.3% of market cap
- Minor pointInvestment fair-value gains declined to US$25.0 million from US$56.2 million in first-half 2025.
- Minor pointTotal borrowings increased to US$310.2 million from US$259.1 million at December 31, 2025.
10 minor points
- Minor pointUltimate-parent financing liability increased to US$218.5 million from US$132.5 million at December 31, 2025.
- Minor pointCash and bank balances fell to US$10.0 million from US$17.7 million at December 31, 2025.
- Minor pointFinance costs rose 59.1% to US$7.3 million in first-half 2026.
- Minor pointProduction and hotel operating costs increased to US$13.8 million from US$9.5 million in first-half 2025.
- Minor pointOther operating expenses increased 22.9% to US$12.8 million in first-half 2026.
- Minor pointStaff costs increased to US$6.1 million from US$5.7 million in first-half 2025.
- Minor pointIncome tax expense increased to US$5.1 million from US$1.5 million, including US$3.4 million Singapore corporate tax.
- Minor pointWarrant fair-value gains decreased to US$71 thousand from US$5.2 million in first-half 2025.
- Minor pointNew mortgage obligation runs 30 years, is property-secured, and carries 6.125% fixed interest for the first five years.
- Minor pointInterim dividend will not be declared for the six months ended June 30, 2026.
News Explained
By June 30, 2026, the expansion left TGE with higher long-term funding obligations and US$10.0 million in cash, down from US$17.7 million.
TGE completed four hotel acquisitions in the six months ended
Cash and bank balances were
The acquired hotel subsidiaries were not all wholly owned: non-controlling interests rose from
Details
Market move: AMTD +5.64% vs previous close. 1H 2026 earnings report
On Sep 30, the day this news came out, the latest delayed price for AMTD is 5.64% above the previous close. Argus tracked a peak move of +7.7% during the session. Our momentum scanner has recorded 7 alerts for this stock so far that day. The latest delayed price is $0.76. Relative volume is exceptionally heavy at 8.3x the average.
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Key Figures
- Revenue from contracts with customers
- 35.8% growth to US$30.8 million
- Six months ended June 30, 2026
- Hotel, hospitality and VIP services revenue
- 59.8% growth to US$20.2 million
- Six months ended June 30, 2026
- Total revenue
- US$65.9 million vs US$87.4 million
- Six months ended June 30, 2026 vs the comparable 2025 period
- Profit
- US$22.8 million vs US$2.1 million
- Six months ended June 30, 2026 vs the comparable 2025 period
- EPS
- 366.7% increase to US$0.56/share
- Interim 2026 results
- Total assets
- US$1.8 billion, up 23.3%
- As of June 30, 2026 vs December 31, 2025
- Net assets
- US$932.5 million
- As of June 30, 2026
- Cash and bank balances
- US$10.0 million vs US$17.7 million
- As of June 30, 2026 vs December 31, 2025
Historical Context
-
Earlier hotel-network update named New York, London and Kuala Lumpur, now covered in interim portfolio expansion.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
eps financial
fvtpl financial
going concern financial
non-controlling interests financial
spac financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
The Generation Essentials Group ("TGE"orthe"Group"orthe "Company")
InterimResults2026
Key Highlights:
- Revenue from contracts with customers grew by
35.8% toUS $30.8 million - Hospitality arm's revenue surged by
59.8% following strategic acquisitions - Net profit improved significantly to
US $22.8 million - EPS increased by
366.7% toUS /share$0.56 - Total Assets amounted to
US ($1.8 billion US /share)$37.2 - Net asset value amounted to
US ($932.5 million US /share)$19.2
Highlights and Key Developments
- During the first half of 2026, the Company significantly scaled its global hospitality footprint through the successful acquisition and integration of four premier hotel properties located in key international markets:
New York ,Perth ,Kuala Lumpur , andLondon . Driven by these strategic acquisitions and strong operational execution, revenue from our hotel operations, hospitality, and VIP services segment surged by59.8% compared to the same period last year. This served as a primary driver for our35.8% growth in revenue from contracts with customers, which reachedUS .$30.8 million
- Building upon the successful launch and rapid popularity of our inaugural L'Officiel Coffee in Omotesando,
Japan , the Company continued the strategic rollout of its IP extended businesses by opening our second L'Officiel Coffee and Bar in Macao SAR in May 2026. This new venue further leverages AMTD L'Officiel's intellectual properties, offering our signature specialty coffees and beautifully crafted sweets—including L'Officiel magazine cakes and seasonal fruit taste mousse cakes - while expanding our vibrant social and cultural footprint into a key Asian entertainment and tourism hub.
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
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:
Australia : The Group completed the acquisition of The Ritz-Carlton Perth for a total considerationA . This landmark transaction secures a premium, 205-room yield-generating asset in a high-growth market, firmly anchoring our luxury hospitality presence in the broader$100 million Asia-Pacific region .North America : The Group established a strategic presence in a high-barrier-to-entry market via the acquisition of the 151-room New York Tribeca Hotel forUS . This asset diversifies our geographic revenue streams and provides a strong foothold in the resilient US luxury hospitality sector.$69 million Southeast Asia : The Group successfully acquired the 129-room Upper View Regalia Hotel inMalaysia forUS . This strategic addition strengthens our operational presence and positions the Group to capture growing tourism and hospitality demand within the ASEAN market.$38 million United Kingdom : The Group started to build the European portfolio with theUS acquisition of the Dao by Dorsett Hornsey Hotel in$30 million London , which comprises 68 serviced apartments and hotel rooms.
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:
- Publishing Network Expansion: Management finalised the operational groundwork for the 2026 launches of L'Officiel Taiwan and L'Officiel Singapore ShiZhuang (the Chinese version of L'Officiel Singapore). This regional expansion broadens our digital and print media footprint, positioning the Group to capture increased market share within
Asia's luxury advertising and consumer segments. - Experiential F&B: Demonstrating the successful convergence of our media IP and hospitality operations, the Group completed the interior fit-out of the world's second L'Officiel Coffee and Bar in
Macau . This physical extension of the brand is designed to diversify revenue streams and deepen consumer engagement in a premier regional tourism hub.
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:
Revenue
Our revenue decreased from
Segment Revenue
Our revenue for the six months ended June 30, 2026 amounted to
- Media advertising and marketing services income increased from
US in the comparable period in 2025 to$10.0 million US for the six months ended June 30, 2026. Geographically, our media operations remain strong in$10.5 million Europe (US ) and the$4.6 million Americas (US ), while$3.3 million Southeast Asia saw steady growth toUS .$2.3 million - Hotel operations, hospitality and VIP services income increased from
US in the comparable period in 2025 to$12.7 million US for the six months ended June 30, 2026, representing a$20.2 million 59.8% growth. This increase was primarily driven by the expansion of our asset portfolio, including the newly acquired hotels inNew York ,Perth ,Kuala Lumpur , andLondon . WhileSoutheast Asia remains our largest market (US ), we successfully recognized new revenue streams from the$11.6 million Americas (US ) and$3.4 million Australia (US ) following recent acquisitions.$2.2 million - Dividend income and gain related to disposed financial assets at fair value through profit or loss was
US for the six months ended June 30, 2026, compared to$10.1 million US for the comparable period in 2025.$8.6 million - Net fair value changes on financial assets at fair value through profit or loss was
US for the six months ended June 30, 2026, compared to$25.0 million US for the comparable period in 2025. The decrease was mainly attributable to lower unrealized gains on our investment portfolio in 2026 compared to the significant gains recorded in 2025.$56.2 million
Cost of production and cost of hotel operation
Cost of production and cost of hotel operation increased from
Other income
Other income increased from
Share-based payments
During the six months ended June 30, 2025, the Company recognized a one-off share-based payment expense of
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
Other operating expenses
Other operating expenses for the six months ended June 30, 2026 increased by
Staff costs
Staff costs for the six months ended June 30, 2026 increased slightly to
Finance costs
Finance costs for the six months ended June 30, 2026 increased by
Income tax expense
Income tax expense for the six months ended June 30, 2026 increased to
Profit for the year
The Company recorded a profit of
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
Key fluctuations in our balance sheet items include:
- Property, Plant and Equipment: Property, plant and equipment surged by
US , from$384.0 million US as of December 31, 2025 to$596.1 million US as of June 30, 2026. This increase was the primary driver of our asset growth and is directly attributable to the acquisitions of the four premier hotel properties in$980.1 million New York ,Perth ,Kuala Lumpur , andLondon , alongside anUS surplus on the revaluation of existing properties.$8.5 million
- Derivative Financial Instruments: Derivative financial assets decreased from
US to$177.5 million US . This reduction was primarily due to a$149.6 million US fair value loss recognized on the Price Protection Agreement related to our investments in AMTD Digital Inc. shares.$28.2 million
- Borrowings: Total borrowings increased from
US to$259.1 million US . This increase reflects the assumption of debt related to our newly acquired subsidiaries and the securing of a new$310.2 million US 30-year mortgage loan to support our real estate expansion.$9.5 million
- Amount Due to Ultimate Holding Company: This non-current liability increased significantly from
US to$132.5 million US . The increase reflects strategic internal financing and financial support provided by the ultimate holding company to facilitate the completion of our major hotel acquisitions during the period.$218.5 million
- Total Equity and Non-Controlling Interests: Total equity grew by
US to$93.4 million US . This was driven by the net profit generated during the period and an increase in non-controlling interests (from$932.5 million US to$110.2 million US ), which relate to the acquisitions of the hotels which are non-wholly owned by the Group.$178.5 million
Liquidity and Capital Resources
As of June 30, 2026, our total assets stood at
Our cash and bank balances decreased to
Going Concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these condensed consolidated financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing this interim financial information.
Dividend
The Board of Directors has resolved not to declare the payment of an interim dividend for the six months ended June 30, 2026 (1H 2025: Nil). The Board continues to prioritize the deployment of capital toward the Group's strategic global expansion.
|
THE GENERATION ESSENTIALS GROUP |
||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
||||||||||
|
AND OTHER COMPREHENSIVE INCOME |
||||||||||
|
FOR THE SIX MONTHS ENDED JUNE 30, 2026 |
||||||||||
|
|
||||||||||
|
|
|
|
|
Six months ended June 30, |
|
|||||
|
|
|
Notes |
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
REVENUE |
|
|
|
|
|
|
|
|
||
|
Media advertising and marketing services income |
|
3 |
|
|
10,513 |
|
|
|
9,976 |
|
|
Hotel operation, hospitality and VIP services income |
|
3 |
|
|
20,245 |
|
|
|
12,668 |
|
|
Dividend income and gain related to disposed financial assets at fair value |
|
3 |
|
|
10,116 |
|
|
|
8,612 |
|
|
Net fair value changes on financial assets at FVTPL |
|
3 |
|
|
24,990 |
|
|
|
56,173 |
|
|
|
|
|
|
|
65,864 |
|
|
|
87,429 |
|
|
Cost of production and cost of hotel operation |
|
|
|
|
(13,782) |
|
|
|
(9,466) |
|
|
Other income |
|
|
|
|
2,080 |
|
|
|
7 |
|
|
Share-based payments |
|
5 |
|
|
- |
|
|
|
(58,878) |
|
|
Fair value change on financial liabilities at FVTPL |
|
|
|
|
71 |
|
|
|
5,221 |
|
|
Other operating expenses |
|
6 |
|
|
(12,766) |
|
|
|
(10,388) |
|
|
Staff costs |
|
7 |
|
|
(6,149) |
|
|
|
(5,674) |
|
|
Finance costs |
|
8 |
|
|
(7,343) |
|
|
|
(4,614) |
|
|
PROFIT BEFORE TAX |
|
|
|
|
27,975 |
|
|
|
3,637 |
|
|
Income tax expense |
|
9 |
|
|
(5,127) |
|
|
|
(1,544) |
|
|
PROFIT FOR THE PERIOD |
|
|
|
|
22,848 |
|
|
|
2,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
|
|
|
|
52 |
|
|
|
11,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
Exchange difference on translation from functional currency to presentation |
|
|
|
|
(6,481) |
|
|
|
(8,871) |
|
|
Surplus on revaluation of properties |
|
|
|
|
8,549 |
|
|
|
7,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME FOR THE PERIOD |
|
|
|
|
2,120 |
|
|
|
9,687 |
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
|
|
|
24,968 |
|
|
|
11,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to: |
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company |
|
|
|
|
26,992 |
|
|
|
5,383 |
|
|
Non-controlling interests |
|
|
|
|
(4,144) |
|
|
|
(3,290) |
|
|
Total comprehensive income (loss) for the period attributable to: |
|
|
|
|
22,848 |
|
|
|
2,093 |
|
|
Owners of the Company |
|
|
|
|
25,143 |
|
|
|
5,281 |
|
|
Non-controlling interests |
|
|
|
|
(175) |
|
|
|
6,499 |
|
|
|
|
|
|
|
24,968 |
|
|
|
11,780 |
|
|
Earnings per share (US$ per share) |
|
10 |
|
|
|
|
|
|
|
|
|
Class A ordinary shares: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
0.56 |
|
|
|
0.12 |
|
|
Diluted |
|
|
|
|
0.56 |
|
|
|
0.12 |
|
|
Class B ordinary shares: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
0.56 |
|
|
|
0.12 |
|
|
Diluted |
|
|
|
|
0.56 |
|
|
|
0.12 |
|
|
|
||||||||||
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
||||||||||
|
THE GENERATION ESSENTIALS GROUP |
||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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|
AS OF JUNE 30, 2026 |
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||||||||||
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|
|
|
As of |
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|||||
|
|
|
|
|
June 30, |
|
|
December |
|
||
|
|
|
Notes |
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
||
|
Non-current assets |
|
|
|
|
|
|
|
|
||
|
Property, plant and equipment |
|
11 |
|
|
980,088 |
|
|
|
596,137 |
|
|
Intangible assets |
|
|
|
|
118,191 |
|
|
|
119,099 |
|
|
Deposits |
|
|
|
|
- |
|
|
|
77,225 |
|
|
Financial assets at FVTPL |
|
12 |
|
|
511,945 |
|
|
|
459,145 |
|
|
Total non-current assets |
|
|
|
|
1,610,224 |
|
|
|
1,251,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
13 |
|
|
7,400 |
|
|
|
7,112 |
|
|
Prepayments, deposits and other receivables |
|
14 |
|
|
19,630 |
|
|
|
2,209 |
|
|
Financial assets at FVTPL |
|
12 |
|
|
7,978 |
|
|
|
8,039 |
|
|
Derivative financial instruments |
|
15 |
|
|
149,594 |
|
|
|
177,450 |
|
|
Cash and bank balances |
|
|
|
|
9,989 |
|
|
|
17,660 |
|
|
Total current assets |
|
|
|
|
194,591 |
|
|
|
212,470 |
|
|
Total assets |
|
|
|
|
1,804,815 |
|
|
|
1,464,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIBILITIES |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
3,396 |
|
|
|
1,533 |
|
|
Other payables and accruals |
|
16 |
|
|
48,379 |
|
|
|
6,114 |
|
|
Contract liabilities |
|
|
|
|
554 |
|
|
|
592 |
|
|
Tax payable |
|
|
|
|
4,108 |
|
|
|
2,242 |
|
|
Borrowings |
|
17 |
|
|
2,211 |
|
|
|
50,232 |
|
|
Financial liabilities at FVTPL |
|
18 |
|
|
2,411 |
|
|
|
2,430 |
|
|
Lease liabilities |
|
|
|
|
189 |
|
|
|
246 |
|
|
Amounts due to subsidiaries' non-controlling shareholders |
|
|
|
|
76,422 |
|
|
|
64,081 |
|
|
Total current liabilities |
|
|
|
|
137,670 |
|
|
|
127,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
Deferred underwriting commission |
|
|
|
|
6,000 |
|
|
|
6,000 |
|
|
Provisions |
|
|
|
|
4,422 |
|
|
|
2,407 |
|
|
Borrowings |
|
17 |
|
|
307,965 |
|
|
|
208,910 |
|
|
Lease liabilities |
|
|
|
|
12 |
|
|
|
27 |
|
|
Deferred tax liabilities |
|
|
|
|
52,566 |
|
|
|
5,645 |
|
|
Financial liabilities at FVTPL |
|
18 |
|
|
2,665 |
|
|
|
2,665 |
|
|
Redeemable shares classified as financial liabilities |
|
|
|
|
142,530 |
|
|
|
139,322 |
|
|
Amount due to ultimate holding company |
|
|
|
|
218,530 |
|
|
|
132,541 |
|
|
Total non-current liabilities |
|
|
|
|
734,690 |
|
|
|
497,517 |
|
|
Total liabilities |
|
|
|
|
872,360 |
|
|
|
624,987 |
|
|
THE GENERATION ESSENTIALS GROUP |
||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||||||||
|
AS OF JUNE 30, 2026 |
||||||||||
|
|
||||||||||
|
|
|
|
|
As of |
|
|||||
|
|
|
|
|
June 30, |
|
|
December |
|
||
|
|
|
Notes |
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
||
|
Share capital |
|
19 |
|
|
- |
* |
|
|
- |
* |
|
Reserves |
|
|
|
|
753,995 |
|
|
|
728,852 |
|
|
Equity attributable to owners of the Company |
|
|
|
|
753,995 |
|
|
|
728,852 |
|
|
Non-controlling interests |
|
|
|
|
178,460 |
|
|
|
110,237 |
|
|
Total equity |
|
|
|
|
932,455 |
|
|
|
839,089 |
|
|
Total liabilities and equity |
|
|
|
|
1,804,815 |
|
|
|
1,464,076 |
|
|
|
||||||||||
|
* The amount is less than |
||||||||||
|
|
||||||||||
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
||||||||||
|
THE GENERATION ESSENTIALS GROUP |
||||||||||||||||||||||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
||||||||||||||||||||||||||||||||||||||||
|
AS OF JUNE 30, 2026 |
||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
Share |
|
|
Share |
|
|
Preferred |
|
|
Capital |
|
|
Revaluation |
|
|
Exchange |
|
|
Retained |
|
|
Total equity |
|
|
Non- |
|
|
Total equity |
|
||||||||||
|
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
||||||||||
|
|
|
(note) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of January 1, 2026 |
|
|
- |
|
|
|
322,008 |
|
|
|
100,000 |
|
|
|
(3,153) |
|
|
|
103,428 |
|
|
|
2,778 |
|
|
|
203,791 |
|
|
|
728,852 |
|
|
|
110,237 |
|
|
|
839,089 |
|
|
Profit (loss) for the |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26,992 |
|
|
|
26,992 |
|
|
|
(4,144) |
|
|
|
22,848 |
|
|
Exchange differences |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,446) |
|
|
|
- |
|
|
|
(6,446) |
|
|
|
17 |
|
|
|
(6,429) |
|
|
Surplus on revaluation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,597 |
|
|
|
- |
|
|
|
- |
|
|
|
4,597 |
|
|
|
3,952 |
|
|
|
8,549 |
|
|
Total comprehensive |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,597 |
|
|
|
(6,446) |
|
|
|
26,992 |
|
|
|
25,143 |
|
|
|
(175) |
|
|
|
24,968 |
|
|
Acquisition of |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
68,398 |
|
|
|
68,398 |
|
|
As of June 30, 2026 |
|
|
- |
|
|
|
322,008 |
|
|
|
100,000 |
|
|
|
(3,153) |
|
|
|
108,025 |
|
|
|
(3,668) |
|
|
|
230,783 |
|
|
|
753,995 |
|
|
|
178,460 |
|
|
|
932,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of January 1, 2025 |
|
|
- |
|
|
|
261,889 |
|
|
|
100,000 |
|
|
|
(3,153) |
|
|
|
95,678 |
|
|
|
(682) |
|
|
|
211,545 |
|
|
|
665,277 |
|
|
|
103,853 |
|
|
|
769,130 |
|
|
Profit (loss) for the |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,383 |
|
|
|
5,383 |
|
|
|
(3,290) |
|
|
|
2,093 |
|
|
Exchange differences |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,860) |
|
|
|
- |
|
|
|
(3,860) |
|
|
|
6,235 |
|
|
|
2,375 |
|
|
Surplus on revaluation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,758 |
|
|
|
- |
|
|
|
- |
|
|
|
3,758 |
|
|
|
3,554 |
|
|
|
7,312 |
|
|
Total comprehensive |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,758 |
|
|
|
(3,860) |
|
|
|
5,383 |
|
|
|
5,281 |
|
|
|
6,499 |
|
|
|
11,780 |
|
|
Issue of shares upon |
|
|
- |
|
|
|
60,041 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60,041 |
|
|
|
- |
|
|
|
60,041 |
|
|
As of June 30, 2025 |
|
|
- |
|
|
|
321,930 |
|
|
|
100,000 |
|
|
|
(3,153) |
|
|
|
99,436 |
|
|
|
(4,542) |
|
|
|
216,928 |
|
|
|
730,599 |
|
|
|
110,352 |
|
|
|
840,951 |
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Note: The amount is less than |
||||||||||||||||||||||||||||||||||||||||
|
THE GENERATION ESSENTIALS GROUP |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
FOR THE SIX MONTHS ENDED JUNE 30, 2026 |
||||||||
|
|
||||||||
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
||
|
Profit before tax |
|
|
27,975 |
|
|
|
3,637 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(2) |
|
|
|
(5) |
|
|
Dividend income |
|
|
(10,116) |
|
|
|
(8,612) |
|
|
Net fair value changes on financial assets at FVTPL |
|
|
(24,990) |
|
|
|
(56,173) |
|
|
Finance costs |
|
|
7,343 |
|
|
|
4,614 |
|
|
Depreciation |
|
|
8,818 |
|
|
|
7,599 |
|
|
Amortization |
|
|
4 |
|
|
|
4 |
|
|
Fair value gain on financial liabilities at FVTPL |
|
|
(71) |
|
|
|
(5,221) |
|
|
Share-based payments |
|
|
- |
|
|
|
58,878 |
|
|
Operating cash flows before changes in working capital |
|
|
8,961 |
|
|
|
4,721 |
|
|
Decrease (increase) in accounts receivable |
|
|
687 |
|
|
|
(850) |
|
|
(Increase) decrease in prepayments, deposits and other receivables |
|
|
(4,751) |
|
|
|
849 |
|
|
Increase in accounts payable |
|
|
818 |
|
|
|
2,375 |
|
|
Decrease in other payables and accruals |
|
|
(2,416) |
|
|
|
(128) |
|
|
(Decrease) increase in contract liabilities |
|
|
(38) |
|
|
|
3 |
|
|
Increase in provisions |
|
|
309 |
|
|
|
397 |
|
|
Cash from operations |
|
|
3,570 |
|
|
|
7,367 |
|
|
Profits tax paid |
|
|
(3,261) |
|
|
|
- |
|
|
Bank interest received |
|
|
2 |
|
|
|
5 |
|
|
Net cash from operating activities |
|
|
311 |
|
|
|
7,372 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(1,921) |
|
|
|
(784) |
|
|
Additions to financial assets at FVTPL |
|
|
(2,626) |
|
|
|
- |
|
|
Investment return from financial assets at FVTPL |
|
|
1,118 |
|
|
|
- |
|
|
Net cash inflow from the acquisitions of subsidiaries |
|
|
4,009 |
|
|
|
- |
|
|
Net cash from (used in) investing activities |
|
|
580 |
|
|
|
(784) |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Proceeds upon issue of shares |
|
|
- |
|
|
|
12,872 |
|
|
Interests paid |
|
|
(4,266) |
|
|
|
(4,839) |
|
|
Repayment of lease liabilities |
|
|
(124) |
|
|
|
(64) |
|
|
Bank borrowings repayment |
|
|
9,500 |
|
|
|
- |
|
|
New bank borrowing raised |
|
|
(11,932) |
|
|
|
- |
|
|
Net transfer with amount due to ultimate holding company |
|
|
(1,606) |
|
|
|
(21,059) |
|
|
Net cash used in financing activities |
|
|
(8,428) |
|
|
|
(13,090) |
|
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(7,537) |
|
|
|
(6,502) |
|
|
Cash and cash equivalents at the beginning of the period |
|
|
17,660 |
|
|
|
19,978 |
|
|
Effect of foreign exchange rate change, net |
|
|
(134) |
|
|
|
(917) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
|
|
9,989 |
|
|
|
12,559 |
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
|
Cash and bank balances |
|
|
9,989 |
|
|
|
12,559 |
|
|
|
||||||||
|
The accompanying notes are an integral part of the condensed consolidated financial statements. |
||||||||
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
1. CORPORATE INFORMATION
The Generation Essentials Group (the "Company") is a limited liability company incorporated in the
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:
|
|
Amendments to IFRS 9 and IFRS 7 Amendments to IFRS 9 and IFRS 7 |
Amendments to the Classification and Measurement of Contracts Referencing Nature-dependent Electricity |
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
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
3. REVENUE
The following tables present disaggregated revenue information:
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue from contracts with customers |
|
|
|
|
|
|
||
|
Media advertising and marketing services |
|
|
|
|
|
|
||
|
Advertising services income |
|
|
6,949 |
|
|
|
6,476 |
|
|
Licensing, subscription and marketing services income |
|
|
3,564 |
|
|
|
3,500 |
|
|
|
|
|
10,513 |
|
|
|
9,976 |
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operations, hospitality and VIP services |
|
|
|
|
|
|
|
|
|
Hotel operation, hospitality and VIP services income |
|
|
20,245 |
|
|
|
12,668 |
|
|
Subtotal revenue from contracts with customers |
|
|
30,758 |
|
|
|
22,644 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from other sources |
|
|
|
|
|
|
|
|
|
Strategic investment |
|
|
|
|
|
|
|
|
|
Net fair value changes on financial assets at FVTPL |
|
|
24,990 |
|
|
|
56,173 |
|
|
Dividend income and gain related to disposed financial assets at FVTPL |
|
|
10,116 |
|
|
|
8,612 |
|
|
Total |
|
|
65,864 |
|
|
|
87,429 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers and timing of revenue recognition |
|
|
|
|
|
|
|
|
|
Services transferred |
|
|
|
|
|
|
|
|
|
- at a point in time |
|
|
6,949 |
|
|
|
6,476 |
|
|
- over time |
|
|
23,809 |
|
|
|
16,168 |
|
|
Total |
|
|
30,758 |
|
|
|
22,644 |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
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)
|
|
|
Media and |
|
|
Hotel |
|
|
Strategic |
|
|
Total |
|
||||
|
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
||||
|
Segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
- from contract with customers |
|
|
10,513 |
|
|
|
20,245 |
|
|
|
— |
|
|
|
30,758 |
|
|
- other |
|
|
— |
|
|
|
— |
|
|
|
35,106 |
|
|
|
35,106 |
|
|
|
|
|
10,513 |
|
|
|
20,245 |
|
|
|
35,106 |
|
|
|
65,864 |
|
|
Segment results |
|
|
1,820 |
|
|
|
(1,740) |
|
|
|
35,106 |
|
|
|
35,186 |
|
|
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,080 |
|
|
Fair value change on financial liabilities at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71 |
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,343) |
|
|
Corporate and other unallocated expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,019) |
|
|
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,975 |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
4. OPERATING SEGMENT INFORMATION - continued
Segment revenue and results - continued
For the six months ended June 30, 2025 (unaudited)
|
|
|
Media and |
|
|
Hotel |
|
|
Strategic |
|
|
Total |
|
||||
|
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
|
US$'000 |
|
||||
|
Segment revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
- from contract with customers |
|
|
9,976 |
|
|
|
12,668 |
|
|
|
— |
|
|
|
22,644 |
|
|
- other |
|
|
— |
|
|
|
— |
|
|
|
64,785 |
|
|
|
64,785 |
|
|
|
|
|
9,976 |
|
|
|
12,668 |
|
|
|
64,785 |
|
|
|
87,429 |
|
|
Segment results |
|
|
1,137 |
|
|
|
(2,289) |
|
|
|
64,785 |
|
|
|
63,633 |
|
|
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
Share-based payments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(58,878) |
|
|
Fair value change on financial liabilities at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,221 |
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,614) |
|
|
Corporate and other unallocated expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,732) |
|
|
Profit before tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,637 |
|
Segment assets and liabilities
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
||
|
Segment assets |
|
|
|
|
|
|
||
|
Media and entertainment |
|
|
122,697 |
|
|
|
126,874 |
|
|
Hotel operation, hospitality and VIP services |
|
|
977,982 |
|
|
|
595,474 |
|
|
Strategic investments |
|
|
516,972 |
|
|
|
494,524 |
|
|
Total segment assets |
|
|
1,617,651 |
|
|
|
1,216,872 |
|
|
Unallocated corporate assets |
|
|
187,164 |
|
|
|
247,204 |
|
|
Total assets |
|
|
1,804,815 |
|
|
|
1,464,076 |
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
|
|
|
|
|
|
|
|
|
Media and entertainment |
|
|
2,899 |
|
|
|
1,866 |
|
|
Hotel operation, hospitality and VIP services |
|
|
92,094 |
|
|
|
70,519 |
|
|
Total segment liabilities |
|
|
94,993 |
|
|
|
72,385 |
|
|
Unallocated corporate liabilities |
|
|
777,367 |
|
|
|
552,602 |
|
|
Total liabilities |
|
|
872,360 |
|
|
|
624,987 |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
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:
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Media and entertainment |
|
|
|
|
|
|
||
|
- |
|
|
387 |
|
|
|
111 |
|
|
- |
|
|
4,557 |
|
|
|
4,317 |
|
|
- America |
|
|
3,276 |
|
|
|
3,690 |
|
|
- |
|
|
2,293 |
|
|
|
1,858 |
|
|
|
|
|
10,513 |
|
|
|
9,976 |
|
|
Hotel operation, hospitality and VIP services |
|
|
|
|
|
|
|
|
|
- |
|
|
2,861 |
|
|
|
2,929 |
|
|
- |
|
|
188 |
|
|
|
- |
|
|
- America |
|
|
3,410 |
|
|
|
- |
|
|
- |
|
|
2,219 |
|
|
|
- |
|
|
- |
|
|
11,567 |
|
|
|
9,739 |
|
|
|
|
|
20,245 |
|
|
|
12,668 |
|
|
Total |
|
|
30,758 |
|
|
|
22,644 |
|
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
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
6. OTHER OPERATING EXPENSES
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Advertising and promotion expenses |
|
1,061 |
|
|
350 |
|
||
|
Amortization |
|
|
4 |
|
|
|
4 |
|
|
Bank charges |
|
|
57 |
|
|
|
61 |
|
|
Depreciation |
|
|
8,818 |
|
|
|
7,599 |
|
|
Donation |
|
|
128 |
|
|
|
1 |
|
|
IT related costs |
|
|
518 |
|
|
|
302 |
|
|
Legal and professional fee |
|
|
1,583 |
|
|
|
600 |
|
|
Premises costs |
|
|
197 |
|
|
|
167 |
|
|
Travelling expenses |
|
|
90 |
|
|
|
73 |
|
|
Others |
|
|
310 |
|
|
|
1,231 |
|
|
Total |
|
|
12,766 |
|
|
|
10,388 |
|
7. STAFF COSTS
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Salaries and bonus |
|
|
5,564 |
|
|
|
5,127 |
|
|
Pension scheme contributions (defined contribution schemes) and others |
|
|
585 |
|
|
|
547 |
|
|
Total |
|
|
6,149 |
|
|
|
5,674 |
|
8. FINANCE COSTS
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Interests on borrowings |
|
|
4,128 |
|
|
|
4,607 |
|
|
Interests on lease liabilities |
|
|
7 |
|
|
|
7 |
|
|
Effective interest on redeemable shares classified as financial liabilities |
|
|
3,208 |
|
|
|
- |
|
|
Total |
|
|
7,343 |
|
|
|
4,614 |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
9. INCOME TAX EXPENSE
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Singapore Corporate Income Tax |
|
|
3,379 |
|
|
|
- |
|
|
Other jurisdictions |
|
|
736 |
|
|
|
684 |
|
|
Withholding tax on dividend income |
|
|
1,012 |
|
|
|
860 |
|
|
Total income tax expenses |
|
|
5,127 |
|
|
|
1,544 |
|
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:
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
|
|
|
|
|
|
||
|
Earnings figures are calculated as follows: |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Profit for the period attributable to Class A ordinary shares |
|
|
24,605 |
|
|
|
2,988 |
|
|
Profit for the period attributable to Class B ordinary shares |
|
|
2,387 |
|
|
|
2,395 |
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
'000 |
|
|
|
'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of Class A ordinary shares outstanding |
|
|
44,175 |
|
|
|
24,067 |
|
|
Weighted average number of Class B ordinary shares outstanding |
|
|
4,286 |
|
|
|
19,286 |
|
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
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
11. PROPERTY, PLANT AND EQUIPMENT
During the six months ended June 30, 2026, the Group completed the acquisition of a hotel building located in
As of June 30, 2026, the Group's properties are stated at valuation of US
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
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
||
|
Listed equity shares and stock loans |
|
|
355,647 |
|
|
|
304,136 |
|
|
Unlisted equity shares |
|
|
893 |
|
|
|
898 |
|
|
Movie income right investments |
|
|
10,838 |
|
|
|
12,040 |
|
|
Investments held in the Trust Account (note) |
|
|
152,545 |
|
|
|
150,110 |
|
|
Total |
|
|
519,923 |
|
|
|
467,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Shown as: |
|
|
|
|
|
|
|
|
|
- current assets |
|
|
7,978 |
|
|
|
8,039 |
|
|
- non-current assets |
|
|
511,945 |
|
|
|
459,145 |
|
|
|
|
|
519,923 |
|
|
|
467,184 |
|
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
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
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
13. ACCOUNTS RECEIVABLE
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
||
|
Receivable from media and entertainment services |
|
|
5,892 |
|
|
|
5,977 |
|
|
Receivable from hotel operations, hospitality and VIP services |
|
|
1,508 |
|
|
|
1,135 |
|
|
Total |
|
|
7,400 |
|
|
|
7,112 |
|
14. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
||
|
Prepayments |
|
|
2,298 |
|
|
|
402 |
|
|
Deposits |
|
|
3,090 |
|
|
|
980 |
|
|
Other receivables |
|
|
4,643 |
|
|
|
1,328 |
|
|
Dividend income receivable |
|
|
10,100 |
|
|
|
- |
|
|
Less: impairment losses provided under ECL model |
|
|
(501) |
|
|
|
(501) |
|
|
Total |
|
|
19,630 |
|
|
|
2,209 |
|
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
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
16. OTHER PAYABLES AND ACCRUALS
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
||
|
Payroll and related expenses payable |
|
|
1,962 |
|
|
|
749 |
|
|
Other tax payables |
|
|
1,364 |
|
|
|
989 |
|
|
Other refundable deposits received |
|
|
2,294 |
|
|
|
- |
|
|
Payable for acquisition of subsidiaries |
|
|
38,939 |
|
|
|
- |
|
|
Interest expense payable |
|
|
365 |
|
|
|
496 |
|
|
Accruals and other payables |
|
|
3,455 |
|
|
|
3,880 |
|
|
Total |
|
|
48,379 |
|
|
|
6,114 |
|
17. BORROWINGS
|
|
|
As of |
|
|
As of |
|
||
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
Secured bank borrowings: |
|
|
|
|
|
|
||
|
- denominated in |
|
|
37,871 |
|
|
|
50,046 |
|
|
- denominated in |
|
|
167,138 |
|
|
|
168,248 |
|
|
- denominated in US$ |
|
|
50,135 |
|
|
|
40,835 |
|
|
- denominated in Australian dollars ("AUD") |
|
|
55,026 |
|
|
|
- |
|
|
Unsecured bank borrowings: |
|
|
|
|
|
|
|
|
|
- denominated in |
|
|
6 |
|
|
|
13 |
|
|
|
|
|
310,176 |
|
|
|
259,142 |
|
|
Shown as: |
|
|
|
|
|
|
|
|
|
- current liabilities |
|
|
2,211 |
|
|
|
50,232 |
|
|
- non-current liabilities |
|
|
307,965 |
|
|
|
208,910 |
|
|
|
|
|
310,176 |
|
|
|
259,142 |
|
On March 10, 2026, the Company entered a new
Except for bank borrowings of US
As of June 30, 2026, the Group had bank borrowings of approximately US
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
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:
- 16,220,000 warrants issued by the Company (exercisable at US
$11.50 per share). - 9,264,706 warrants issued by TGE SPAC (exercisable at US
$11.50 per share), which excludes 5,300,000 warrants held by a wholly-owned subsidiary that are eliminated upon consolidation.
As of June 30, 2026, the total fair value of the warrant liabilities was US
19. SHARE CAPITAL
The movement of share capital is as follows:
|
|
|
|
|
|
Voting Class A |
|
|
Voting Class B |
|
|
Non-voting redeemable |
|
|
Total |
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Number of |
|
|
Amount |
|
|
Number of |
|
|
Amount |
|
|
Number of |
|
|
Amount |
|
|
Number of |
|
|
Amount |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
US$'000 |
|
|
|
|
|
US$'000 |
|
|
|
|
|
US$'000 |
|
|
|
|
|
US$'000 |
|
||||||||||
|
Authorized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of January 1, 2026 (audited) and |
|
|
|
|
|
|
|
|
|
|
1,791,048,851,869 |
|
|
|
47 |
|
|
|
72,816,437,663 |
|
|
|
2 |
|
|
|
23,949,023,814 |
|
|
|
1 |
|
|
|
1,887,814,313,346 |
|
|
|
50 |
|
|
Issued and fully paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1, 2026 (audited) and |
|
|
|
|
|
|
|
|
|
|
44,175,159 |
|
|
|
- |
* |
|
|
4,285,911 |
|
|
|
- |
* |
|
|
6,343,056 |
|
|
|
- |
* |
|
|
54,804,126 |
|
|
|
- |
* |
|
|
||||||||||||||||||||||||||||||||||||||||
|
* The amount is less than US |
||||||||||||||||||||||||||||||||||||||||
20. RELATED PARTY TRANSACTIONS
In addition to the transactions disclosed elsewhere in these condensed consolidation financial statements, the Group had the following transactions with related parties during the period:
|
|
|
Six months ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
|
|
US$'000 |
|
|
US$'000 |
|
||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
|
|
|
|
|
|
|
|
|
|
Marketing services income |
|
|
2,727 |
|
|
|
2,737 |
|
|
Stock-borrowing received from the ultimate holding company |
|
|
2,073 |
|
|
|
- |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
21. ACQUISITION OF SUBSIDIARIES
During the six months ended June 30, 2026, the Group completed the following acquisitions. These acquisitions are in line with the Group's ongoing strategy to expand its footprint in key hospitality markets, diversify its asset portfolio, and increase recurring revenue streams. By integrating these properties, the Group expects to achieve operational synergies and leverage its existing hospitality management expertise to drive long-term profitability.
(i) Acquisition of The Ritz Carlton,
On May 29, 2026, the Group completed the acquisition of a
The Group has assessed that it has obtained control over the Perth Hotel Group and has accordingly consolidated its financial results, recognizing the remaining
Consideration transferred
The total consideration for the acquisition was US
|
|
|
US$'000 |
|
|
|
Cash paid at completion |
|
|
42,939 |
|
|
Deferred consideration |
|
|
28,626 |
|
|
Total consideration |
|
|
71,565 |
|
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:
|
|
|
US$'000 |
|
|
|
Acquisition of |
|
|
58,857 |
|
|
Assignment of shareholder loan |
|
|
12,708 |
|
|
Total consideration |
|
|
71,565 |
|
Provisional fair value of identifiable assets and liabilities acquired
|
|
|
US$'000 |
|
|
|
Cash and cash balances |
|
|
3,685 |
|
|
Accounts receivable |
|
|
919 |
|
|
Prepayments, deposits and other receivables |
|
|
2,013 |
|
|
Property, plant and equipment |
|
|
233,817 |
|
|
Accounts payable |
|
|
(554) |
|
|
Other payables and accruals |
|
|
(4,491) |
|
|
Borrowings |
|
|
(57,252) |
|
|
Amounts due to shareholders |
|
|
(25,417) |
|
|
Provisions |
|
|
(1,706) |
|
|
Deferred tax liabilities |
|
|
(33,300) |
|
|
Total identifiable net assets at fair value |
|
|
117,714 |
|
|
Non-controlling interests ( |
|
|
(58,857) |
|
|
Net assets acquired |
|
|
58,857 |
|
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
21. ACQUISITION OF SUBSIDIARIES - continued
(i) Acquisition of The Ritz Carlton,
The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US
The initial accounting for the property, plant and equipment acquired in the above business combination with fair value of US
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
|
|
|
US$'000 |
|
|
Cash and cash equivalents balances acquired |
|
|
3,685 |
As of December 31, 2025, the Group paid AUD60,000,000 deposits for the acquisition.
(ii) Acquisition of Upper View Regalia Hotel,
On May 29, 2026, the Group completed the acquisition of a
Consideration transferred
The total consideration for the acquisition was US
|
|
|
US$'000 |
|
|
|
Cash paid at completion |
|
|
31,908 |
|
|
Deferred consideration |
|
|
6,382 |
|
|
Total consideration |
|
|
38,290 |
|
The deferred consideration of HK
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
21. ACQUISITION OF SUBSIDIARIES - continued
(ii) Acquisition of Upper View Regalia Hotel,
Allocation of consideration:
|
|
|
US$'000 |
|
|
|
Acquisition of |
|
|
38,163 |
|
|
Assignment of shareholder loan |
|
|
127 |
|
|
Total consideration |
|
|
38,290 |
|
Provisional fair value of identifiable assets and liabilities acquired
|
|
|
US$'000 |
|
|
|
Cash and cash balances |
|
|
177 |
|
|
Accounts receivable |
|
|
76 |
|
|
Prepayments, deposits and other receivables |
|
|
257 |
|
|
Property, plant and equipment |
|
|
58,728 |
|
|
Accounts payable |
|
|
(270) |
|
|
Other payables and accruals |
|
|
(44) |
|
|
Amounts due to shareholders |
|
|
(127) |
|
|
Deferred tax liabilities |
|
|
(11,093) |
|
|
Total identifiable net assets at fair value |
|
|
47,704 |
|
|
Non-controlling interests ( |
|
|
(9,541) |
|
|
Net assets acquired |
|
|
38,163 |
|
The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US
The initial accounting for the property, plant andequipment acquired in the above business combination with fair value of US
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
|
|
|
US$'000 |
|
|
|
Cash and cash equivalents balances acquired |
|
|
177 |
|
As of December 31, 2025, the Group paid HK
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
21. ACQUISITION OF SUBSIDIARIES - continued
(iii) Acquisition of Dao by Dorsett Hornsey,
On June 2, 2026, the Group completed the acquisition of a
Consideration transferred
The total consideration for the acquisition was US
|
|
|
US$'000 |
|
|
|
Cash paid at completion |
|
|
25,408 |
|
|
Deferred consideration |
|
|
4,996 |
|
|
Total consideration |
|
|
30,424 |
|
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:
|
|
|
US$'000 |
|
|
|
Acquisition of |
|
|
8,647 |
|
|
Assignment of shareholder loan |
|
|
21,777 |
|
|
Total consideration |
|
|
30,424 |
|
Provisional fair value of identifiable assets and liabilities acquired
|
|
|
US$'000 |
|
|
|
Cash and cash balances |
|
|
147 |
|
|
Accounts receivable |
|
|
34 |
|
|
Prepayments, deposits and other receivables |
|
|
301 |
|
|
Property, plant and equipment |
|
|
34,144 |
|
|
Accounts payable |
|
|
(233) |
|
|
Other payables and accruals |
|
|
(319) |
|
|
Amounts due to shareholders |
|
|
(21,777) |
|
|
Deferred tax liabilities |
|
|
(3,670) |
|
|
Net assets acquired |
|
|
8,627 |
|
The receivables acquired (which principally comprised trade receivables and other receivables) with a fair value of US
The initial accounting for the property, plant and equipment acquired in the above business combination with fair value of US
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
21. ACQUISITION OF SUBSIDIARIES - continued
(iii) Acquisition of Dao by Dorsett Hornsey,
Net cash inflow on acquisition of HornseyHotel Group
|
|
|
US$'000 |
|
|
|
Cash and cash equivalents balances acquired |
|
|
147 |
|
As of December 31, 2025, the intermediate holding company paid GBP2 million (equivalent to US
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.
|
Strategic & external risk |
Technological, Cyber & |
Financial risk |
Operational & |
|
- Macroeconomic & geopolitical - Competition across media, - Brand & reputation - Strategic investments & SPACs |
- Cybersecurity & data - IT & cloud infrastructure - Technology upgrades |
- Investment fair value - Liquidity & capital - Exchange rate |
- Acquisitions & integration - Intellectual property protection - Third-party reliance - Regulatory compliance - Talent & key personnel |
As part of the review, certain risks were noted to be at an increased level:
- Macroeconomic and Geopolitical Conditions: This has been assessed as increased, reflecting the rapidly evolving macroeconomic environment. Changes in inflation, interest rates, and geopolitical tensions may result in shifts in luxury advertising budgets, discretionary consumer spending in our hospitality and entertainment segments, and fluctuations in the broader market.
- Acquisitions and integration: The risk profile here has increased due to our aggressive expansion in the hospitality sector during 1H 2026, including the acquisition of AMTD IDEA Tribeca Hotel in
New York , The Ritz Charlton,Perth , Upper View Regalia Hotel inKuala Lumpur and AMTD Dao by Dorsett Hornsey Hotel. The rapid expansion of our portfolio requires significant management attention and heightens the risks associated with integrating new properties, aligning corporate cultures, and managing capital expenditures.
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.
- Strategic Investments and SPAC Initiatives
A meaningful portion of our revenue derives from strategic investments in public and private companies (such as regional banks and AMTD Digital Inc.). These investments are subject to fair value fluctuations, liquidity constraints, and concentration risks. Additionally, our SPAC initiatives (e.g., TGE Value Creative Solutions Corp) carry risks that we may fail to identify suitable targets or realize anticipated synergies.
- Brand, Reputation, and Intellectual Property
Our brands, including L'Officiel and The Art Newspaper, are our most critical assets. We face risks related to the protection of our intellectual property, including potential claims of infringement and the unauthorized use of our content. Furthermore, we operate a L'Officiel AMTD composite brand and must navigate complexities regarding the historic L'Officiel brand held by third parties to prevent brand dilution or legal disputes.
- Competition Across Media, Entertainment, and Hospitality
We operate in highly competitive markets across all segments. Our success depends on our ability to anticipate trends, respond to evolving customer preferences, and deliver compelling content and services while transitioning our media business from a franchise model to a direct ownership model in key geographies.
- Cybersecurity, Data Privacy, and IT Infrastructure
We rely heavily on IT systems and third-party cloud hosting. We are exposed to evolving cybersecurity threats and must comply with complex data privacy regulations across our global footprint. Furthermore, as we implement necessary technology upgrades across our newly acquired hospitality assets and digital media platforms, we face execution risks; any significant network disruption, integration failure, or data breach could result in operational downtime and regulatory fines.
- Liquidity, Capital Requirements, and Exchange Rates
Our ongoing acquisitions require substantial capital. We face financial risks related to maintaining sufficient liquidity to fund these capital requirements. Additionally, our expanded presence in diverse markets (transacting in USD, AUD, MYR, and GBP) significantly increases our exposure to exchange rate fluctuations and cross-border capital flow regulations, which can impact our reported financial results and the cost of global operations.
- Third-Party Reliance
We depend on various third parties across our segments. This includes franchisees, printing, and distribution partners for our publications; lead producers for our co-produced motion pictures; and third-party managers for our hotel properties. Any disruption in these relationships could adversely affect our operations.
- Regulatory Compliance and Multi-Jurisdictional Tax Risks
Our rapidly expanding global footprint—now spanning key markets such as the US,Australia ,Malaysia , and the UK—exposes us to diverse and frequently changing legal, tax, and regulatory frameworks. This includes local employment laws, consumer protection, ESG reporting obligations, and complex cross-border tax compliance. Navigating these varied jurisdictions requires specialized local knowledge; failure to comply with local regulations or tax codes could subject the Group to business constraints, financial penalties, and increased compliance costs.
- Talent and Key Personnel
Our success relies on our ability to attract, develop, and retain highly skilled talent, including editorial staff, creative directors, and key management personnel. The competitive labour market and evolving workforce expectations may increase our employee-related costs and challenge our retention efforts.
RESPONSIBILITY STATEMENT
Each of the Directors of The Generation Essentials Group confirms that, to the best of each person's knowledge and belief:
- The condensed set of Group financial statements has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting';
- The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
- The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
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
Director Chief Financial Officer
September 30, 2026 September 30, 2026
View original content:https://www.prnewswire.com/news-releases/tges-profit-surged-by-9-9-times-with-total-assets-at-us1-8bn-and-net-assets-at-us932m-302894260.html
SOURCE The Generation Essentials Group
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much profit did TGE report for the first half of 2026?
TGE reported unaudited net profit of US$22.8 million for the six months ended June 30, 2026, versus US$2.1 million a year earlier. First-half 2025 included a US$58.9 million one-off share-based payment expense arising from the Black Spade Acquisition II business combination; no such expense was recognized in first-half 2026.
Why did TGE's total revenue fall while customer-contract revenue grew in first-half 2026?
Total revenue fell as investment fair-value gains declined to US$25.0 million from US$56.2 million in first-half 2025. Customer-contract revenue grew 35.8% to US$30.8 million, supported by hospitality revenue growth of 59.8% following hotel acquisitions.
What were the terms of TGE's new mortgage loan in first-half 2026?
TGE secured a US$9.5 million, 30-year mortgage loan backed by a property, with a fixed interest rate of 6.125% for the first five years. The loan supported its real estate expansion.
What cash flows did TGE report for the first half of 2026?
TGE reported US$0.3 million net cash from operating activities and US$8.4 million net cash used in financing activities for the six months ended June 30, 2026.