The Generation Essentials Group ("TGE"orthe"Group"orthe "Company")
InterimResults2026
Key Highlights:
-- Revenue from contracts with customers grew by 35.8% to US$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% to US$0.56/share
-- Total Assets amounted to US$1.8 billion (US$37.2/share)
-- Net asset value amounted to US$932.5 million (US$19.2/share)
PARIS and NEW YORK and LONDON, Sept. 30, 2026 /PRNewswire/ -- The Generation Essentials Group ("TGE", the "Company", or "we", NYSE: TGE; LSE: TGE), jointly established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD), is focusing on global strategies and developments in multi-media, entertainment, and cultural events worldwide as well as hospitality and VIP services, announces its unaudited financial results for the six months ended June 30, 2026 ("1H 2026").
Highlights and Key Developments
-- 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, and London. Driven by these
strategic acquisitions and strong operational execution, revenue from our
hotel operations, hospitality, and VIP services segment surged by 59.8%
compared to the same period last year. This served as a primary driver
for our 35.8% growth in revenue from contracts with customers, which
reached US$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 France and focuses on global strategies and developments in multi-media, entertainment, and cultural affairs worldwide as well as hospitality and VIP services. TGE comprises L'Officiel, The Art Newspaper, movie and entertainment projects. Collectively, TGE is a diversified portfolio of media and entertainment businesses, and a global portfolio of premium properties. Also, TGE is a special purpose acquisition company (SPAC) sponsor manager, with its first SPAC successfully raised and priced on December 18, 2025.
Forward-Looking Statements
This interim report contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
You can identify these forward-looking statements by words or phrases such as "may," "might," "will," "would," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to," "potential," "continue," or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs.
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations. Important risks and factors that could cause our actual results to be materially different from our expectations are generally set forth in the "Principal Risks and Uncertainties" section of this interim report, as well as in our most recent Annual Report on Form 20-F. You should read thoroughly this interim report and the documents that we refer to in this interim report with the understanding that our actual future results may be materially different from and worse than what we expect. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this interim report relate only to events or information as of the date on which the statements are made in this interim report. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Business Review and Important Events During the Six Months Ended June 30, 2026
Overview
During the six months ended 30 June 2026, the Group accelerated the execution of its global diversification strategy, marked by disciplined capital deployment across our core operating segments. The period was characterised by significant asset acquisitions in the premium hospitality sector, alongside the strategic expansion of our media, lifestyle, and entertainment intellectual property. These initiatives have materially enhanced the Group's global asset base and further integrated our cross-sector ecosystem.
Hospitality and Real Estate Portfolio Expansion
A primary focus of 1H 2026 was the geographic diversification and scaling of our hospitality portfolio. The Group successfully completed a series of strategic acquisitions in key international gateway cities, deploying capital into prime, yield-generating assets:
-- Australia: The Group completed the acquisition of The Ritz-Carlton Perth
for a total consideration A$100 million. 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
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 for US$69 million. This asset diversifies our geographic
revenue streams and provides a strong foothold in the resilient US luxury
hospitality sector.
-- Southeast Asia: The Group successfully acquired the 129-room Upper View
Regalia Hotel in Malaysia for US$38 million. This strategic addition
strengthens our operational presence and positions the Group to capture
growing tourism and hospitality demand within the ASEAN market.
-- United Kingdom: The Group started to build the European portfolio with
the US$30 million acquisition of the Dao by Dorsett Hornsey Hotel in
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: New York, Perth, Kuala Lumpur, and London. Alongside this major hotel expansion, we further enriched our lifestyle and VIP offerings by proudly launching our second L'Officiel Coffee and Bar, located in Macao SAR, building upon the momentum of our inaugural launch in Japan. These major operational milestones directly translated into robust growth in our core businesses. Revenue from contracts with customers grew by 35.8% to US$30.8 million, driven largely by a 59.8% surge in our hotel operations, hospitality, and VIP services segment.
Revenue
Our revenue decreased from US$87.4 million in the six months ended June 30, 2025 to US$65.9 million in the six months ended June 30, 2026.
Segment Revenue
Our revenue for the six months ended June 30, 2026 amounted to US$65.9 million, a change from US$87.4 million recorded for the comparable period in 2025. The change was primarily attributable to: -
-- Media advertising and marketing services income increased from US$10.0
million in the comparable period in 2025 to US$10.5 million for the six
months ended June 30, 2026. Geographically, our media operations remain
strong in Europe (US$4.6 million) and the Americas (US$3.3 million),
while Southeast Asia saw steady growth to US$2.3 million.
-- Hotel operations, hospitality and VIP services income increased from
US$12.7 million in the comparable period in 2025 to US$20.2 million for
the six months ended June 30, 2026, representing a 59.8% growth. This
increase was primarily driven by the expansion of our asset portfolio,
including the newly acquired hotels in New York, Perth, Kuala Lumpur, and
London. While Southeast Asia remains our largest market (US$11.6 million),
we successfully recognized new revenue streams from the Americas (US$3.4
million) and Australia (US$2.2 million) following recent acquisitions.
-- Dividend income and gain related to disposed financial assets at fair
value through profit or loss was US$10.1 million for the six months ended
June 30, 2026, compared to US$8.6 million for the comparable period in
2025.
-- Net fair value changes on financial assets at fair value through profit
or loss was US$25.0 million for the six months ended June 30, 2026,
compared to US$56.2 million 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.
Cost of production and cost of hotel operation
Cost of production and cost of hotel operation increased from US$9.5 million for the comparable period in 2025 to US$13.8 million in the six months ended June 30, 2026, mainly due to the additional costs recognized from our hotels in line with the increase in revenue generated from our expanded hotel operations and recent acquisitions.
Other income
Other income increased from US$7 thousand for the comparable period in 2025 to US$2.1 million for the current period, mainly due to additional stock lending income from the ultimate holding company.
Share-based payments
During the six months ended June 30, 2025, the Company recognized a one-off share-based payment expense of US$58.9 million resulting from the completion of the business combination with Black Spade Acquisition II Co, as the fair value of consideration transferred was higher than the net identifiable assets acquired. There was no such expense recognized for the six months ended June 30, 2026.
Fair value change on financial liabilities at FVTPL
The Company has outstanding warrants recognized as financial liabilities at FVTPL, with changes in fair value recognized in profit or loss. In the current period, the Company recognized a US$71 thousand fair value gain on the warrants, compared to a US$5.2 million fair value gain for the comparable period in 2025.
Other operating expenses
Other operating expenses for the six months ended June 30, 2026 increased by 22.9% as compared to the comparable period in 2025 to US$12.8 million, primarily attributable to an increase in our hotels' depreciation charges and additional operating costs recognized from our hotels in line with the expansion of our hotel operations.
Staff costs
Staff costs for the six months ended June 30, 2026 increased slightly to US$6.1 million, compared to US$5.7 million for the comparable period in 2025.
Finance costs
Finance costs for the six months ended June 30, 2026 increased by 59.1% compared to the comparable period in 2025 to US$7.3 million, primarily due to increased interest on bank borrowings related to the acquisition of subsidiaries and new mortgage loans, as well as the effective interest on redeemable shares classified as financial liabilities.
Income tax expense
Income tax expense for the six months ended June 30, 2026 increased to US$5.1 million compared to US$1.5 million for the comparable period in 2025, primarily driven by US$3.4 million in Singapore Corporate Income Tax recognized during the current period.
Profit for the year
The Company recorded a profit of US$22.8 million in the six months ended June 30, 2026, compared to a profit of US$2.1 million for the comparable period in 2025. The 2025 GAAP profit was heavily impacted by the one-off share-based payments expense of US$58.9 million recognized resulting from the completion of the business combination.
Financial Position and Balance Sheet Analysis
The Group's financial position expanded significantly during the six months ended June 30, 2026, reflecting the successful execution of our strategic acquisitions in the hospitality sector. Total assets increased by 23.3% to US$1.8 billion as of June 30, 2026, compared to US$1.5 billion as of December 31, 2025. Total liabilities increased to US$872.4 million from US$625.0 million, while total equity strengthened to US$932.5 million from US$839.1 million.
Key fluctuations in our balance sheet items include:
-- Property, Plant and Equipment: Property, plant and equipment surged by
US$384.0 million, from US$596.1 million as of December 31, 2025 to
US$980.1 million 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 New York, Perth,
Kuala Lumpur, and London, alongside an US$8.5 million surplus on the
revaluation of existing properties.
-- Derivative Financial Instruments: Derivative financial assets decreased
from US$177.5 million to US$149.6 million. This reduction was primarily
due to a US$28.2 million fair value loss recognized on the Price
Protection Agreement related to our investments in AMTD Digital Inc.
shares.
-- Borrowings: Total borrowings increased from US$259.1 million to US$310.2
million. This increase reflects the assumption of debt related to our
newly acquired subsidiaries and the securing of a new US$9.5 million
30-year mortgage loan to support our real estate expansion.
-- Amount Due to Ultimate Holding Company: This non-current liability
increased significantly from US$132.5 million to US$218.5 million. 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.
-- Total Equity and Non-Controlling Interests: Total equity grew by US$93.4
million to US$932.5 million. This was driven by the net profit generated
during the period and an increase in non-controlling interests (from
US$110.2 million to US$178.5 million), which relate to the acquisitions
of the hotels which are non-wholly owned by the Group.
Liquidity and Capital Resources
As of June 30, 2026, our total assets stood at US$1.8 billion, a significant increase from US$1.5 billion as of December 31, 2025. This growth was primarily due to the aforementioned additions to property, plant, and equipment.
Our cash and bank balances decreased to US$10.0 million from US$17.7 million at the end of 2025. Net cash from operating activities was US$0.3 million, while net cash used in financing activities was US$8.4 million. To support our expansion, total borrowings increased to US$310.2 million (up from US$259.1 million at the end of 2025). This includes a new US$9.5 million 30-year mortgage loan secured by a property, bearing a fixed interest rate of 6.125% for the first five years. Despite the increase in leverage, our balance sheet remains robust, with total equity increasing to US$932.5 million, up from US$839.1 million at the end of 2025, supported by comprehensive income generated during the period.
Going Concern
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these condensed consolidated financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing this interim financial information.
Dividend
The Board of Directors has resolved not to declare the payment of an interim dividend for the six months ended June 30, 2026 (1H 2025: Nil). The Board continues to prioritize the deployment of capital toward the Group's strategic global expansion.
THE GENERATION ESSENTIALS GROUP
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2026
Six months ended June 30,
----------------------------
Notes 2026 2025
----- --------------- -----------
US$'000 US$'000
(unaudited) (unaudited)
REVENUE
Media advertising and
marketing services income 3 10,513 9,976
Hotel operation,
hospitality and VIP
services income 3 20,245 12,668
Dividend income and gain
related to disposed
financial assets at fair
value through profit or
loss ("FVTPL") 3 10,116 8,612
Net fair value changes on
financial assets at FVTPL 3 24,990 56,173
--------------- -----------
65,864 87,429
Cost of production and cost
of hotel operation (13,782) (9,466)
Other income 2,080 7
Share-based payments 5 - (58,878)
Fair value change on
financial liabilities
at FVTPL 71 5,221
Other operating expenses 6 (12,766) (10,388)
Staff costs 7 (6,149) (5,674)
Finance costs 8 (7,343) (4,614)
--------------- -----------
PROFIT BEFORE TAX 27,975 3,637
Income tax expense 9 (5,127) (1,544)
--------------- -----------
PROFIT FOR THE PERIOD 22,848 2,093
=============== ===========
OTHER COMPREHENSIVE INCOME
(EXPENSES)
Items that may be
reclassified subsequently
to profit or loss:
Exchange differences on
translation of foreign
operations 52 11,246
Items that will not be
reclassified subsequently
to profit or loss:
Exchange difference on
translation from
functional currency to
presentation currency (6,481) (8,871)
Surplus on revaluation of
properties 8,549 7,312
--------------- -----------
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 2,120 9,687
--------------- -----------
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 24,968 11,780
=============== ===========
Profit (loss) for the
period attributable to:
Owners of the Company 26,992 5,383
Non-controlling interests (4,144) (3,290)
--------------- -----------
Total comprehensive income
(loss) for the
period attributable to: 22,848 2,093
=============== ===========
Owners of the Company 25,143 5,281
Non-controlling interests (175) 6,499
--------------- -----------
24,968 11,780
=============== ===========
Earnings per share (US$ 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
AS OF JUNE 30, 2026
As of
----------------------
December
June 30, 31,
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
------------------------
December
June 30, 31,
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 US$1,000
The accompanying notes are an integral part of the condensed
consolidated financial statements.
THE GENERATION ESSENTIALS GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
AS OF JUNE 30, 2026
Total equity
attributable Non-
Share Share Preferred Capital Revaluation Exchange Retained to owners of controlling Total
capital premium shares reserve reserve reserve profits the Company interests equity
-------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
US$'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
(audited) - 322,008 100,000 (3,153) 103,428 2,778 203,791 728,852 110,237 839,089
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Profit (loss) for
the period - - - - - - 26,992 26,992 (4,144) 22,848
Exchange
differences
arising from
translation - - - - - (6,446) - (6,446) 17 (6,429)
Surplus on
revaluation in
properties - - - - 4,597 - - 4,597 3,952 8,549
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Total
comprehensive
income
(expenses) for
the period - - - - 4,597 (6,446) 26,992 25,143 (175) 24,968
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Acquisition of
subsidiaries
(note 21) - - - - - - - 68,398 68,398
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
As of June 30,
2026
(unaudited) - 322,008 100,000 (3,153) 108,025 (3,668) 230,783 753,995 178,460 932,455
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
As of January 1,
2025
(audited) - 261,889 100,000 (3,153) 95,678 (682) 211,545 665,277 103,853 769,130
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Profit (loss) for
the period - - - - - - 5,383 5,383 (3,290) 2,093
Exchange
differences
arising from
translation - - - - - (3,860) - (3,860) 6,235 2,375
Surplus on
revaluation in
properties - - - - 3,758 - - 3,758 3,554 7,312
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Total
comprehensive
income
(expenses) for
the period - - - - 3,758 (3,860) 5,383 5,281 6,499 11,780
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Issue of shares
upon the
completion of
business
combination - 60,041 - - - - - 60,041 - 60,041
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
As of June 30,
2025
(unaudited) - 321,930 100,000 (3,153) 99,436 (4,542) 216,928 730,599 110,352 840,951
------- ------- --------- ------- ----------- -------- -------- ------------ ----------- -------
Note: The amount is less than US$1,000.
THE GENERATION ESSENTIALS GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
Six months ended
June 30,
-------------------------
2026 2025
------------ -----------
US$'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 Cayman Islands. The Group is involved in the provision of media and entertainment services, hotel operation, hospitality and VIP services and strategic investments.
The Company is listed on the New York Stock Exchange on June 5, 2025 through a business combination with Black Spade Acquisition II Co ("Black Spade II"), a blank check company incorporated for the purpose of effecting a business combination.
2. PRINCIPAL ACCOUNTING POLICIES
Basis of preparation
The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 ("IAS 34") "Interim Financial Reporting", and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended December 31, 2025. They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The condensed consolidated financial statements have been prepared on the historical cost basis except for properties and certain financial instruments, which are measured at fair values.
Other than change in accounting policies resulting from application of amendments to IFRSs, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended June 30, 2026 are the same as those presented in the Group's annual consolidated financial statements for the year ended December 31, 2025.
Application of amendments to IFRS Standards
In the current interim period, the Group has applied the following amendments to an IFRS Accounting Standard issued by IASB, for the first time, which are mandatorily effective for the Group's annual period beginning on January 1, 2026 for the preparation of the Group's condensed consolidated financial statements:
Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and
Amendments to IFRS 9 and IFRS 7 Measurement of Financial Instruments
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)
Hotel
operation,
hospitality
Media and and VIP Strategic
entertainment services investment Total
-------------- ----------- ---------- -------
US$'000 US$'000 US$'000 US$'000
Segment
revenue
Revenue
- from
contract with
customers 10,513 20,245 -- 30,758
- other -- -- 35,106 35,106
------------- ----------- ---------- -------
10,513 20,245 35,106 65,864
============ ============= =========== ========== =======
Segment
results 1,820 (1,740) 35,106 35,186
============= =========== ==========
Other income 2,080
Fair value
change on
financial
liabilities
at FVTPL 71
Finance costs (7,343)
Corporate and
other
unallocated
expenses (2,019)
-------
Profit before
tax 27,975
=======
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
4. OPERATING SEGMENT INFORMATION - continued
Segment revenue and results - continued
For the six months ended June 30, 2025 (unaudited)
Hotel
operation,
hospitality
Media and and VIP Strategic
entertainment services investment Total
-------------- ----------- ---------- --------
US$'000 US$'000 US$'000 US$'000
Segment
revenue
Revenue
- from
contract with
customers 9,976 12,668 -- 22,644
- other -- -- 64,785 64,785
------------- ----------- ---------- --------
9,976 12,668 64,785 87,429
============ ============= =========== ========== ========
Segment
results 1,137 (2,289) 64,785 63,633
============= =========== ==========
Other income 7
Share-based
payments (58,878)
Fair value
change on
financial
liabilities
at FVTPL 5,221
Finance costs (4,614)
Corporate and
other
unallocated
expenses (1,732)
--------
Profit before
tax 3,637
========
Segment assets and liabilities
As of As of
December
June 30, 31,
2026 2025
------------ ---------
US$'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
- China (including Hong Kong) 387 111
- Europe 4,557 4,317
- America 3,276 3,690
- Southeast Asia 2,293 1,858
----------- -----------
10,513 9,976
-------------------------------------- ----------- -----------
Hotel operation, hospitality and VIP
services
- China (including Hong Kong) 2,861 2,929
- Europe 188 -
- America 3,410 -
- Australia 2,219 -
- Southeast Asia 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$71,879,000, representing the fair values of the shares of US$60,119,000 and fair values of warrants of US$11,760,000 based on their respective closing market prices on the date of consummation. The excess of this consideration over the fair value of Black Spade II's identifiable net assets acquired of approximately US$12,977,000 resulted in share-based payment expenses of US$58,902,000, which was recognized in the consolidated statement of profit or loss for the six months ended June 30, 2026.
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
6. OTHER OPERATING EXPENSES
Six months ended
June 30,
------------------------
2026 2025
----------- -----------
US$'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 New York City, United States, for a total consideration of US$69,000,000. The transaction was accounted for as an asset acquisition as it did not meet the definition of a business under IFRS 3. Upon completion of the acquisition, the property commenced operations under the name "AMTD IDEA Tribeca Hotel". Also, the Group completed the acquisition of several subsidiaries as disclosed in note 21, resulting in the aggregate addition of hotel buildings and related properties recognized at a provisional fair value of US$326,689,000. These assets and its associated operational results are reported within the Group's "hotel operation, hospitality and VIP services" segment.
As of June 30, 2026, the Group's properties are stated at valuation of US$976,357,000 which is a Level 3 fair value measurement. There was no transfer into or out of level 3 during the period. During the six months ended June 30, 2026, the Group has recognized the revaluation gain of US$8,549,000 to the other comprehensive income.
There has been no change to the valuation techniques during the period. In estimating the fair value of the properties, the highest and best use of the properties is their current use.
12. FINANCIAL ASSETS AT FVTPL
As of As of
December
June 30, 31,
2026 2025
------------ ---------
US$'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$10.00 per Unit, generating gross proceeds of US$150 million. Each Unit consists of one Class A ordinary share, and one-half of one redeemable warrant. Following the closing of the initial public offering, an amount of US$150 million from the net proceeds of the sale of the Units and the sale of the private placement warrants was placed in the trust account (the "Trust Account") located in the United States. The funds held in the Trust Account are restricted and can only be used to pay redeeming shareholders, consummate an initial business combination, or distribute to public shareholders in the event of liquidation. As of June 30, 2026, the investments held in the Trust Account, amounting to approximately US$152,545,000, were invested in money market funds.
In October 2025, the Group entered into a stock lending agreement with a subsidiary of the ultimate holding company, pursuant to which the Group lent certain listed equity shares to the subsidiary of the ultimate holding company, bearing interest at 2% per annum computed based on market value of the listed equity shares. Upon the maturity of the stock lending agreement, the subsidiary of the ultimate holding company is obligated to return all borrowed listed equity shares to the Group.
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026
13. ACCOUNTS RECEIVABLE
As of As of
December
June 30, 31,
2026 2025
------------ ---------
US$'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$28,194,000 for the six ended June 30, 2026 (six months ended June 30, 2025: fair value gain of US$103,208,000).
THE GENERATION ESSENTIALS GROUP
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2026