The Generation Essentials Group Reports on Half Year Performance with a ~160% Increase in Revenue
Rhea-AI Summary
The Generation Essentials Group (NYSE:AMTD) reported unaudited results for the six months ended June 30, 2025, showing a near-160% revenue increase to US$87.4M and a non-GAAP adjusted net income rise of 74.5% to US$61.0M. Total assets reached US$1.25B (US$25.7/share) and net asset value was US$841M (US$17.3/share). Hotel, hospitality and VIP revenues grew 60.3% to US$12.7M. The company recorded US$56.2M net fair value gains on financial assets and recognized a one-off US$58.9M share-based payment charge related to the Black Spade Acquisition II Co. business combination.
The release notes plans to roll out L'Officiel Coffee globally with a 15–20 shop target over three years.
Positive
- Revenue up ~160% to US$87.4M for six months ended June 30, 2025
- Non-GAAP adjusted net income +74.5% to US$61.0M
- Total assets US$1.25B (US$25.7/share)
- Net fair value gains on financial assets US$56.2M
Negative
- One-off share-based payment charge of US$58.9M from business combination
- Cost of production and hotel operation rose to US$87.4M
- Other operating expenses +69.5% to US$10.4M
News Market Reaction
On the day this news was published, AMTD gained 0.94%, reflecting a mild positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $925K to the company's valuation, bringing the market cap to $99M at that time.
Data tracked by StockTitan Argus on the day of publication.
-
TGE Achieved ~
160% Increase in Revenue -
Hospitality arm's revenue increased by over
60% -
Total Net Income Surged over
70% toUS (non-GAAP adjusted)$61.0 million -
Total Assets amounted to
US ($1.25 billion US /share)$25.7 -
Net asset value amounted to
US ($841 million US /share)$17.3
Highlights and Key Developments
- TGE owns AMTD L'Officiel's intellectual properties ("IP") globally and maintains our operations through direct owner's model and franchisee network in over 30 countries and regions. In the six months ended June 30, 2025, we started our first IP extended businesses under L'Officiel Coffee. Featuring carefully curated specialty coffees, beautifully crafted sweets including L'Officiel mousse cakes, L'Officiel magazine cakes (with inter-changing of covers on the magazine cakes, leveraging our world library of global fashion images and magazines' covers of over 100 years), in a stylish space at Omotesando in
Japan , the venue's popularity grew rapidly, establishing it as a vibrant social and cultural hotspot well beloved by influencers, local communities, and visitors alike. TGE has announced plans to roll out L'Officiel Coffee globally and target to open 15-20 L'Officiel Coffee shops worldwide in the the next three years. - Hotel operations, hospitality and VIP services income increased from
US in the comparable period in 2024 to$7.9 million US in the six months ended June 30, 2025, representing a$12.7 million 60.3% growth. - During the six months ended June 30, 2025, the Company completed the business combination with Black Spade Acquisition II Co. This business combination is not within the scope of IFRS 3 since Black Spade Acquisition II Co does not meet the definition of a business in accordance with IFRS 3, the transaction is accounted for as a share-based payment transaction within the scope of IFRS 2. As the fair value of consideration transferred is higher than the net identifiable net assets acquired, the Company recognized share-based payments of
US as a result of the business combination. This represents an exceptional one-off expense resulting from the completion of the business combination, and such expense did not affect the Company's recurring operating results and financial position.$58.9 million
Statement from the Board Members and Senior Management:
Dr. Feridun Hamdullahpur, co-chairman of the board and chairman of the audit committee of the Company, said, "TGE the three alphabets takes many meanings for our company and for me as Co-Chairman of the board: we arethe generation essentials, a company with our global capability and credentials to provide authentic, ethical and quality contents to the current generation of individuals and beyond. On the other hand, we are the global entertainment enterprise committed to expanding our presence in a multi-dimensional and global manner across various areas of growth. We are also the growing enterprise that offers multiple avenues of growth in a diversified manner across media, entertainment and hospitality spaces. We are proud of our results and we are confident to deliver long term values to our shareholders".
Mr. Samuel Chau, director and CFO of the Company, said, "The first half of 2025 has been a transformative period for The Generation Essentials Group, marked by the successful completion of our business combination and listing on the NYSE. This milestone represents a significant step forward in expanding our global presence and reinforcing our position as a leader in multi-media, entertainment, and cultural affairs. As we continue to grow, our focus remains on delivering innovative experiences, creating value through our diverse portfolio, and driving excellence across our core businesses."
Financial Results for the Six Months Ended June 30, 2025
Revenue
Our revenue for the six months ended June 30, 2025 amounted to
- Hotel operations, hospitality and VIP services income increased from
US in the comparable period in 2024 to$7.9 million US for the six months ended June 30, 2025, representing a$12.7 million 60.3% growth. - 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, 2025, compared to$8.6 million US for the comparable period in 2024.$8.7 million - Net fair value changes on financial assets at fair value through profit or loss was
US for six months ended June 30, 2025, compared to$56.2 million US for the comparable period in 2024. The increase was mainly attributable to the unrealized gain on our investment portfolio in 2025.$7.2 million
Cost of Production and Cost of Hotel Operation
Cost of production and cost of hotel operation increased from
Other Income
Other income decreased from
Share-based payments
During six months ended June 30, 2025, the Company completed the business combination with Black Spade Acquisition II Co. This business combination is not within the scope of IFRS 3 since Black Spade Acquisition II Co does not meet the definition of a business in accordance with IFRS 3, the transaction is accounted for as a share-based payment transaction within the scope of IFRS 2. As the fair value of consideration transferred is higher than the net identifiable net assets acquired, the Company recognized share-based payments of
This expense was one-off in nature resulting from the completion of the business combination, and such expense did not affect the Company's recurring operating results and financial position.
Fair value change on financial liabilities at FVTPL
Upon the business combination between the Company and Black Spade Acquisition II Co, the Company has 16,220,000 warrants outstanding. The Company recognized the warrant as financial liabilities at FVTPL and thus the changes in fair value have been recognized in profit or loss. In the current period, the Company recognized
Other Operating Expenses
Other operating expenses for the six months ended June 30, 2025 increased by
Staff Costs
Staff costs for the six months ended June 30, 2025 remain relatively steady at
Finance Costs
Finance costs for the six months ended June 30, 2025 decreased slightly by
Income Tax Expense
Income tax expense for the six months ended June 30, 2025 remained steady at
Profit For the Period
The Company recorded a non-GAAP adjusted net income of
Non-GAAP Financial Measures
We adjusted net income, which is non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income represents profit for the period excluding one-off share-based payment expense arising from the completion of the business combination in accordance with IFRS 2. We define adjusted net income as profit for the period adjusted for non-recurring or extraordinary items.
We believe that non-GAAP financial measures help identify underlying trends in our business that could otherwise be distorted by the effect of one-off share-based payment expenses that we include in our profit for the six months ended June 30, 2025. We also believe that non-GAAP financial measures provide useful information about our results of operations, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in our financial and operational decision-making.
Non-GAAP financial measures are not presented in accordance with IFRS and may be different from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP financial measures have limitations as analytical tools and when assessing the our operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with IFRS. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. We mitigate these limitations by reconciling non-GAAP financial measures to the most comparable IFRS performance measures, all of which should be considered when evaluating our performance. For more information on non-GAAP financial measures, please see "Unaudited Reconciliation of IFRS and Non-GAAP Results" set forth at the end of this press release.
About AMTD IDEA Group
AMTD IDEA Group (NYSE: AMTD; SGX: HKB) represents a diversified institution and digital solutions group connecting companies and investors with global markets. Its comprehensive one-stop business services plus digital solutions platform addresses different clients' diverse and inter-connected business needs and digital requirements across all phases of their life cycles. AMTD IDEA Group is uniquely positioned as an active super connector between clients, business partners, investee companies, and investors, connecting the East and the West. For more information, please visit www.amtdinc.com or follow us on X (formerly known as "Twitter") at @AMTDGroup.
About AMTD Digital Inc.
AMTD Digital Inc. (NYSE: HKD) is a comprehensive digital solutions platform headquartered in
About The Generation Essentials Group
The Generation Essentials Group (NYSE: TGE), jointly established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD), is headquartered in
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the
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THE GENERATION ESSENTIALS GROUP |
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UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
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FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025 |
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Six months ended June |
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2024 |
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2025 |
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US$'000 |
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US$'000 |
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(audited) |
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(unaudited) |
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REVENUE |
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Fashion, arts and luxury media advertising and marketing services income |
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10,446 |
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9,976 |
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Hotel operations, hospitality and VIP services income |
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7,905 |
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12,668 |
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Dividend income and gains related to disposed financial assets at fair value through |
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8,660 |
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8,612 |
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Net fair value changes on financial assets at fair value through profit or loss |
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7,220 |
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56,173 |
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34,231 |
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87,429 |
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Cost of production and cost of hotel operation |
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(5,401) |
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(9,466) |
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Other income |
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24,785 |
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7 |
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Share-based payments |
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- |
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(58,878) |
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Fair value change on financial liabilities at fair value through profit or loss |
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- |
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5,221 |
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Other operating expenses |
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(6,127) |
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(10,388) |
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Staff costs |
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(5,669) |
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(5,674) |
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Share of losses of joint ventures |
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(558) |
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- |
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Finance costs |
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(4,775) |
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(4,614) |
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PROFIT BEFORE TAX |
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36,486 |
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3,637 |
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Income tax expense |
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(1,549) |
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(1,544) |
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PROFIT FOR THE PERIOD |
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34,937 |
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2,093 |
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OTHER COMPREHENSIVE INCOME (EXPENSES) |
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Items that may be reclassified subsequently to profit or loss: |
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Exchange differences on translation of foreign operations |
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(185) |
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11,246 |
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Share of other comprehensive income of joint ventures |
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2,833 |
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- |
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Items that will not be reclassified subsequently to profit or loss: |
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Exchange difference on translation from functional currency to presentation currency |
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269 |
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(8,871) |
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Surplus on revaluation of properties |
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3,173 |
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7,312 |
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OTHER COMPREHENSIVE INCOME FOR THE PERIOD |
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6,090 |
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9,687 |
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
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41,027 |
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11,780 |
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Profit for the period attributable to: |
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Owners of the company |
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16,155 |
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5,383 |
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Non-controlling interests |
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18,782 |
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(3,290) |
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34,937 |
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2,093 |
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Total comprehensive income for the period attributable to: |
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Owners of the company |
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18,832 |
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5,281 |
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Non-controlling interests |
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22,195 |
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6,499 |
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41,027 |
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11,780 |
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EARNINGS PER SHARE |
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Class A ordinary shares: |
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Basic (US$ cents per share) |
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1.24 |
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0.12 |
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Diluted (US$ cents per share) |
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N/A |
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0.12 |
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Class B ordinary shares: |
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Basic (US$ cents per share) |
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1.24 |
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0.12 |
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Diluted (US$ cents per share) |
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N/A |
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0.12 |
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THE GENERATION ESSENTIALS GROUP |
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UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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AS AT DECEMBER 31, 2024 AND JUNE 30, 2025 |
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December 31, |
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June 30, |
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US$'000 |
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US$'000 |
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(audited) |
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(unaudited) |
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ASSETS |
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Current assets |
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Accounts receivable |
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6,457 |
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7,307 |
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Prepayments, deposits and other receivables |
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3,042 |
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9,727 |
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Financial assets at fair value through profit or loss |
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25,207 |
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23,206 |
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Derivative financial instruments |
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30,339 |
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132,555 |
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Cash and bank balances |
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19,978 |
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12,559 |
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Total current assets |
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85,023 |
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185,354 |
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Non-current assets |
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Property, plant and equipment |
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574,693 |
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598,002 |
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Intangible assets |
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119,381 |
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118,087 |
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Financial assets at fair value through profit or loss |
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395,337 |
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345,996 |
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Total non-current assets |
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1,089,411 |
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1,062,085 |
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Total assets |
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1,174,434 |
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1,247,439 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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Accounts payable |
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2,785 |
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5,190 |
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Other payables and accruals |
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7,309 |
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8,216 |
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Contract liabilities |
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564 |
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567 |
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Tax payable |
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1,554 |
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1,900 |
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Borrowings |
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176 |
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213 |
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Financial liabilities at fair value through profit or loss |
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- |
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6,488 |
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Lease liabilities |
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253 |
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191 |
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Amounts due to subsidiaries' non-controlling shareholders |
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63,019 |
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64,255 |
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Total current liabilities |
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75,660 |
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87,020 |
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Non-current liabilities |
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Provisions |
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1,664 |
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2,079 |
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Borrowings |
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219,433 |
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229,964 |
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Lease liabilities |
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267 |
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265 |
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Deferred tax liabilities |
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5,658 |
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5,597 |
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Amount due to ultimate holding company |
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102,622 |
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81,563 |
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Total non-current liabilities |
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329,644 |
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319,468 |
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Total liabilities |
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405,304 |
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406,488 |
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Equity |
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Share capital |
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- * |
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- * |
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Reserves |
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665,277 |
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730,599 |
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Total equity attributable to owners of the Company |
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665,277 |
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730,599 |
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Non-controlling interests |
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103,853 |
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110,352 |
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Total equity |
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769,130 |
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840,951 |
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Total liabilities and equity |
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1,174,434 |
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1,247,439 |
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* |
less than |
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THE GENERATION ESSENTIALS GROUP |
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UNAUDITED RECONCILIATION OF IFRS AND NON-GAAP RESULTS |
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FOR THE SIX MONTHS ENDED JUNE 30, 2025 |
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The table below sets forth unaudited reconciliations of our IFRS and non-GAAP results for the periods |
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Six months ended June 30, |
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2024 |
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2025 |
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US$'000 |
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US$'000 |
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IFRS Measure: Profit for the period |
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34,937 |
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2,093 |
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Adjustment: |
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One-off share-based payment expenses |
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- |
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58,878 |
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Non-GAAP Measure: Adjusted net income |
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34,937 |
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60,971 |
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For more information, please contact:
For AMTD IDEA Group:
IR Office
AMTD IDEA Group
EMAIL: ir@amtdinc.com
For AMTD Digital Inc.:
IR Office
AMTD Digital Inc.
EMAIL: ir@amtdigital.net
For The Generation Essentials Group:
IR Office
The Generation Essentials Group
EMAIL: tge@amtd.world
View original content:https://www.prnewswire.com/news-releases/the-generation-essentials-group-reports-on-half-year-performance-with-a-160-increase-in-revenue-302589001.html
SOURCE The Generation Essentials Group
FAQ
What drove AMTD revenue to US$87.4M in the six months ended June 30, 2025?
How did AMTD report adjusted net income of US$61.0M for H1 2025?
What is the financial impact of the Black Spade business combination on AMTD's 2025 results?
What are AMTD's total assets and NAV per share as of June 30, 2025?
How much did AMTD's hotel and hospitality revenue increase in H1 2025?
What are AMTD's expansion plans for L'Officiel Coffee after the Japan launch?
