Financial Performance - For the three months ended March 31, 2023, the company's revenue was approximately HKD 11,834,000, a decrease of about 49.96% compared to HKD 23,640,000 in the same period last year[6][11]. - The company reported a net loss of HKD 16,596,000 for the review period, compared to a loss of HKD 14,996,000 in the previous year, indicating an increase in losses due to a significant reduction in revenue[7][12]. - The gross profit margin improved from approximately 13.51% in the previous year to about 18.77% in the current period, despite the decline in overall revenue[11]. - Total revenue for the first quarter of 2023 was HKD 11,834,000, a significant decrease of 50.0% from HKD 23,640,000 in the first quarter of 2022[29]. - The cost of sales for the period was HKD 9,612,000, down from HKD 20,447,000 in the previous year, indicating a reduction of 53.0%[32]. - Employee benefits expenses, including salaries for directors and key management personnel, decreased to HKD 9,083,000 from HKD 12,530,000, a reduction of 27.0%[32]. - Other income and gains totaled HKD 2,214,000, down from HKD 2,772,000, reflecting a decrease of 20.1%[30]. - The basic and diluted loss per share attributable to ordinary shareholders was HKD 0.347, slightly higher than HKD 0.337 in the previous year[18]. - The total comprehensive loss for the period was HKD 13,467,000, compared to a total comprehensive loss of HKD 14,089,000 in the previous year[39]. - As of March 31, 2023, the total equity attributable to equity holders of the parent company was HKD 237,348,000, down from HKD 250,815,000 at the beginning of the year[39]. Expenses and Cost Management - Sales and distribution expenses decreased by 14.67% to approximately HKD 4,455,000, while administrative expenses decreased by 3.38% to approximately HKD 12,009,000 compared to the previous year[12]. - The financing costs for the review period were approximately HKD 174,000, compared to HKD 133,000 in the same period last year[12]. - The company incurred financing costs of HKD 174,000 for the period, which is an increase of 30.8% compared to HKD 133,000 in the same period last year[30]. Business Strategy and Development - The company plans to focus on core business development and improve management systems to ensure normal business operations amid significant revenue decline[14]. - The company aims to enhance market expansion by adopting various cooperative business models and promoting geothermal energy as an alternative heating source[14]. - The company is committed to addressing historical issues and improving its operational management system to advance the development of the green energy industry[15]. - The company continues to focus on providing, installing, and maintaining shallow geothermal energy utilization systems as its primary business[21]. Legal and Regulatory Matters - The company is currently involved in a legal dispute regarding a share transfer agreement, with a claim amounting to RMB 245,217,995.83[41]. - The company’s investment management subsidiary has had its bank deposits frozen as part of the legal proceedings, amounting to RMB 50,288[41]. - The court ruled that Shanghai Portze must compensate 恒有源投资 for legal fees amounting to RMB 200,000 and dismissed all claims from Shanghai Portze[43]. - 上海港澤 has filed an appeal against the court ruling, with the second instance yet to be heard[43]. - The company believes the court ruling will not have a significant adverse impact on its normal operations and finances[43]. - The company will actively respond to the lawsuit and provide updates to shareholders and investors as necessary[43]. Shareholder Information - The company has not recognized any tax provision for Hong Kong profits tax due to no taxable profits generated in Hong Kong for the period[34]. - As of March 31, 2023, the total number of issued shares is 4,526,925,163 shares[51]. - As of March 31, 2023, 徐生恒 holds 15.85% of the company's shares, amounting to 717,670,600 shares[45]. - 中節能香港 holds a significant stake of 1,190,000,000 shares, representing 26.29% of the total issued shares[50]. - The weighted average number of ordinary shares issued for the calculation of basic loss per share increased to 4,526,925,000 shares from 4,394,597,000 shares year-on-year[37]. - The company’s board and key executives have disclosed their shareholdings, with no other undisclosed interests as of March 31, 2023[52]. Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems, consisting of four independent non-executive directors[57]. - The board of directors has complied with the GEM Listing Rules regarding securities trading during the review period[58]. - There were no repurchases, redemptions, or sales of the company's listed securities during the review period[60]. - No dividends were declared or proposed for the three months ended March 31, 2023, consistent with the previous year[36].

截至二零二三年六月三十日止六個月 中期業績公佈 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在 風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關中國恒有源發展集團有限公司（「本公司」）之資料；本公司之董事願就本公告共 同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所信， 本公告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏 其他事項，足以令致本公告所載任何陳述或本公告產生誤導。 ...

Financial Performance - The company recorded revenue of approximately HKD 119,428,000 for the year, a decrease of about 32.46% compared to the previous year[15]. - The net loss for the year was approximately HKD 135,463,000, which represents an increase in loss of HKD 33,136,000 compared to the previous year[15]. - The decline in revenue and increase in loss were primarily due to a significant decrease in new project contracts and product sales contracts compared to the previous year[16]. - The company's total revenue for the year ended December 31, 2022, was approximately HKD 119,428,000, a decrease of about 32.46% compared to HKD 176,835,000 in the previous year[22]. - The net loss for the year ended December 31, 2022, was approximately HKD 135,463,000, compared to a net loss of HKD 102,327,000 for the year ended December 31, 2021[21]. - The gross profit for the year ended December 31, 2022, was approximately HKD 15,121,000, with a gross margin of 12.66%, down from 17.67% in the previous year, representing a decline of 5.01 percentage points[23]. - The company signed contracts valued at approximately HKD 65,540,000 as of December 31, 2022, compared to HKD 158,578,000 in the previous year[30]. Operational Strategy - The company plans to enhance its operational service management and improve market penetration to gradually increase revenue scale[16]. - In 2023, the company aims to leverage the industry's growth period and implement a series of reform measures to create value for shareholders and investors[16]. - The company has implemented reforms in project budgeting, independent accounting systems, and management processes to adapt to the decline in performance, resulting in a significant reduction in selling and administrative expenses[55]. - The management team is committed to improving operational management systems and tackling key challenges collaboratively[57]. Employee and Governance - The company employed approximately 307 employees as of December 31, 2022, down from 475 employees in the previous year[42]. - The company has a robust management team with diverse expertise, enhancing its operational capabilities and strategic initiatives[80]. - The company has established an audit committee to oversee the financial reporting process, risk management, and internal control mechanisms, consisting of four independent non-executive directors[154]. - The company has adopted a written nomination policy to identify suitable candidates for board positions[184]. - The board consists of 10 members as of December 31, 2022, including 3 executive directors, 3 non-executive directors, and 4 independent non-executive directors, with 2 females and 8 males[180]. Financial Health and Liabilities - The company's current liabilities net value was approximately HKD 57,407,000 as of December 31, 2022, compared to HKD 13,060,000 in the previous year[36]. - The company's total assets amounted to approximately HKD 1,247,849,000 as of December 31, 2022, down from HKD 1,565,632,000 in the previous year[21]. - The company's debt ratio increased to approximately 60.0% as of December 31, 2022, compared to 51.2% in the previous year[41]. - The company has no contingent liabilities not disclosed in the consolidated financial statements as of December 31, 2022[44]. Customer and Supplier Relations - The top five customers accounted for approximately 36.9% of the total sales during the reporting period, down from 39% in the previous year[111]. - The largest customer represented about 15.8% of total sales, a slight decrease from 16% in the previous year[111]. - Purchases from the top five suppliers constituted around 31.82% of total purchases, compared to 30% in the previous year[111]. - The company has established a qualified supplier database to enhance the procurement process and ensure compliance with performance standards[110]. Environmental Commitment - The company is committed to environmental sustainability by implementing geothermal heat pump systems in its offices to reduce electricity consumption and environmental impact[107]. - The company plans to review and enhance its environmental practices and sustainability measures in its operations[108]. Related Party Transactions - The company has a significant related party transaction with China Energy Conservation Group, which provided a RMB 400,000,000 loan guarantee in 2016[147]. - The company’s ongoing related party transactions are subject to GEM listing rules, with certain transactions exempt from independent shareholder approval due to their low percentage thresholds[140][139]. - The company received a clean opinion from its auditors regarding the ongoing related party transactions, confirming compliance with pricing policies and relevant agreements[144]. Risk Management - The company has identified major risks related to market, operations, and funding, and has implemented measures to address them[196]. - The company has strengthened its internal control and risk management systems during the reporting period to withstand changes in business and external environments[197]. - The company has adopted a three-line risk management approach to identify, analyze, assess, mitigate, and handle risks[195].

截至二零二二年十二月三十一日止年度 全年業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在 風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關中國恒有源發展集團有限公司之資料；本公司之董事願就本公告共同及個別地 承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所信，本公告所載 資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏其他事項，足 以令致本公告所載任何陳述或本公告產生誤導。 本公告將由刊登日期起最少一連七天於GEM ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就本公告全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 有關建議更換核數師的進一步資料、 業績公告計劃更新 及 繼續暫停買賣 本公告由中國恒有源發展集團有限公司（「本公司」），連同其附屬公司統稱「本集 團」）根據香港聯合交易所有限公司（「聯交所」）GEM證券上市規則（「GEM上市 規則」）第17.50(4)條和第17.10條以及證券及期貨條例（香港法例第571章）第XIVA 部的內幕消息條文（定義見GEM上市規則）而作出。 茲提及本公司於二零二三年三月二十二日、二零二三年四月三日、二零二三年四 月十四日、二零二三年五月二十四日、二零二三年六月二十八日、二零二三年七月 四日和二零二三年七月七日的公告，涉及(i)延遲刊發二零二二年全年業績及寄發 年報及可能暫停買賣、(ii)暫停買賣、(iii)公佈業績計劃及繼續暫停買賣、(iv)復牌 指引及繼續暫停買賣、(v)核數師辭任，復牌進度的季度更新及繼續暫停買賣、(vi) 建議委任核數師及繼續暫停買賣、及(vii)股東特別大 ...

Financial Performance - For the nine months ended September 30, 2022, the revenue was approximately HKD 70,091,000, a decrease of about HKD 68,474,000 compared to HKD 138,565,000 in the same period last year[5] - The net loss for the nine months ended September 30, 2022, was approximately HKD 44,911,000, a slight improvement from a loss of HKD 45,418,000 in the same period last year[11] - The gross profit margin for the nine months ended September 30, 2022, was 19.57%, down from 21.16% in the same period last year, reflecting a decrease of 1.59 percentage points[12] - Other income and gains decreased from approximately HKD 11,710,000 in the previous year to about HKD 3,659,000 for the nine months ended September 30, 2022[8] - For the nine months ended September 30, 2022, total revenue was HKD 70,091 thousand, a decrease of 49.3% compared to HKD 138,565 thousand in the same period of 2021[27] - Gross profit for the nine months ended September 30, 2022, was HKD 13,720 thousand, down from HKD 29,316 thousand in the previous year, representing a decline of 53.2%[27] - Revenue from contracts with customers for the three months ended September 30, 2022, was HKD 18,007 thousand, down 61.9% from HKD 47,342 thousand in the same quarter of 2021[27] - The company recorded other income of HKD 3,659 thousand for the nine months ended September 30, 2022, compared to HKD 11,710 thousand in the same period of 2021, a decrease of 68.8%[27] - Total comprehensive loss for the nine months ended September 30, 2022, was HKD 60,629 thousand, compared to HKD 39,738 thousand in the same period of 2021, reflecting a significant increase in losses[20] - Total revenue for the three months ended September 30, 2022, was HKD 19,742,000, a decrease of 60.7% compared to HKD 50,119,000 in the same period of 2021[29] Cost Management - Selling and distribution expenses for the nine months ended September 30, 2022, were approximately HKD 13,555,000, down from HKD 15,912,000 in the previous year, indicating cost control measures[8] - Administrative expenses decreased by approximately HKD 30,124,000 or 45.45% compared to the previous year, primarily due to cost-saving measures implemented by the company[8] - The management is committed to controlling costs and ensuring cash flow from projects, avoiding upfront capital expenditures[12] Governance and Compliance - The company is focusing on improving its governance structure and internal control systems to enhance operational efficiency and reduce risks[15] - The company has complied with the corporate governance code as per GEM listing rules, with some deviations noted[78] - The audit committee, consisting of four independent non-executive directors, has been established to ensure compliance with financial reporting standards and internal controls[100] - The company continues to comply with the Securities and Futures Ordinance regarding the disclosure of interests[66] Shareholder Information - The company did not declare or propose any interim dividend for the nine months ended September 30, 2022[40] - The company reported a total of 4,526,925,163 shares issued as of September 30, 2022[70] - Major shareholder China Energy Conservation and Environmental Protection (Hong Kong) Investment Limited holds 1,190,000,000 shares, representing 26.29% of total issued shares[68] - Executive Xu Shengheng owns 718,333,400 shares, accounting for 15.87% of total issued shares[68] - The spouse of Xu Shengheng, Lu Haiwen, holds 982,800 shares, which is 0.02% of total issued shares[68] - Liu Enning owns 250,000,000 shares, representing 5.52% of total issued shares[68] - Zhang Yiying has a beneficial interest in 2,504,000 shares, which is 0.06% of total issued shares[68] - The total beneficial ownership of shares by directors and key executives is detailed in the report, with specific percentages provided for each individual[62] Executive Compensation - The company's chairman's annual salary decreased from HKD 2,900,000 to HKD 2,500,000 for the year 2022[85] - The annual salary of executive director Wang Yan decreased from HKD 1,116,000 to HKD 716,000 for the year 2022[85] Strategic Plans - The company plans to strengthen its core competitiveness and expand its market presence despite current operational challenges[15] - The company plans to continue expanding its market presence and investing in new technologies to enhance its product offerings and operational efficiency[24] Legal and Regulatory Matters - The company is involved in ongoing litigation related to the sale of the stake in Beijing Life, with a civil lawsuit filed against it in December 2021[96] - The company has not disclosed any significant transactions or arrangements involving directors during the reporting period[98] Changes in Corporate Structure - The company changed its name from "China Geothermal Industry Development Group Limited" to "CHYY Development Group Limited" on July 8, 2022[77] - The company has seen changes in its board of directors, with several resignations and appointments effective in 2022[80] - The company appointed a new auditor, Shinewing (HK) CPA Limited, to fill the vacancy left by the previous auditor's resignation on September 6, 2022, pending shareholder approval[94] Share Incentive Plan - The company has granted a total of 58,000,000 reward shares under the share incentive plan from January 15, 2020, to September 30, 2022[73] - No reward shares were granted under the share incentive plan for the nine months ended September 30, 2022[74] - The company aims to attract suitable talent through its share incentive plan to support ongoing operations and development[73]

Financial Performance - For the six months ended June 30, 2022, the revenue was approximately HKD 50,349,000, a decrease of about HKD 38,097,000 compared to HKD 88,446,000 in the same period last year[6][8]. - The net loss after tax for the period was approximately HKD 37,163,000, compared to a loss of HKD 28,711,000 in the same period last year, indicating an increase in losses due to a decline in revenue scale[6][12]. - The company recorded revenue of approximately HKD 50,349,000 for the six months ended June 30, 2022, representing a decline of 43.07% compared to the same period last year[28]. - For the three months ended June 30, 2022, the company reported revenue of HKD 26,709,000, down from HKD 62,751,000 in the same quarter of the previous year[34]. - The gross profit for the six months ended June 30, 2022, was HKD 7,640,000, compared to HKD 28,732,000 for the same period in 2021[34]. - The company reported a comprehensive loss attributable to owners of the parent of HKD (43,259) thousand for the six months ended June 30, 2022, compared to a loss of HKD (24,695) thousand for the same period in 2021[40]. - The company reported a loss attributable to equity holders of HKD 36,024 for the six months ended June 30, 2022, compared to a loss of HKD 26,963 for the same period in 2021, representing a 33.5% increase in losses[111]. - For the three months ended June 30, 2022, the total comprehensive loss amounted to HKD (45,691) thousand, compared to a loss of HKD (26,119) thousand for the same period in 2021, indicating a significant decline in performance[40]. Revenue Sources - The group recorded a significant decrease in revenue from shallow geothermal energy utilization, which was approximately HKD 21,847,000, down from HKD 57,925,000 in the previous year[7][8]. - Revenue from contracts with customers for the six months ended June 30, 2022, was HKD 50,349, down 43% from HKD 88,446 for the same period in 2021[90]. - Rental income for the six months ended June 30, 2022, remained stable at HKD 4,675, consistent with HKD 4,584 in the previous year[90]. - The company reported external customer revenue of HKD 50,162 from shallow geothermal energy for the six months ended June 30, 2022[92]. - The company recorded inter-departmental sales of HKD 6,704 for the same period, contributing to total contract revenue[98]. Cost Management - Administrative expenses decreased by approximately HKD 16,912,000 or 37.15% compared to the same period last year, primarily due to reduced salaries and related costs[10]. - The company is actively pursuing various measures to control costs and enhance internal cost management, which has shown noticeable effects during the review period[29]. - The cost of goods sold for the six months ended June 30, 2022, was HKD 18,110, down 36% from HKD 28,400 in the same period of 2021[104]. Cash Flow and Liquidity - The group had cash and cash equivalents of approximately HKD 60,010,000 as of June 30, 2022, down from HKD 87,069,000 as of December 31, 2021[14]. - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (30,434) thousand, compared to HKD (92,279) thousand for the same period in 2021[72]. - The cash and cash equivalents at the end of the period decreased to HKD 60,010 thousand from HKD 63,886 thousand in the previous year[72]. - The company’s total cash and cash equivalents at the beginning of the period were HKD 87,069 thousand, reflecting a strong liquidity position despite the net decrease[72]. Assets and Liabilities - The total non-current assets as of June 30, 2022, were HKD 588,249 thousand, a decrease from HKD 553,431 thousand as of December 31, 2021[43]. - Current assets totaled HKD 920,637 thousand as of June 30, 2022, down from HKD 977,383 thousand at the end of 2021, reflecting a reduction in liquidity[43]. - Current liabilities were HKD 952,605 thousand as of June 30, 2022, compared to HKD 990,443 thousand at the end of 2021, showing a slight improvement in the company's short-term obligations[44]. - The net asset value decreased to HKD 382,489 thousand as of June 30, 2022, from HKD 428,180 thousand at the end of 2021, indicating a decline in overall equity[46]. - The total liabilities as of June 30, 2022, were HKD 1,091,579, compared to HKD 1,137,452 as of December 31, 2021[85][88]. Employee and Management Changes - The group employed approximately 316 employees as of June 30, 2022, a decrease from approximately 475 employees as of December 31, 2021[24]. - The total remuneration for key management personnel for the three months ended June 30, 2022, was HKD 2,120,000, a decrease of 21.5% compared to HKD 2,699,000 for the same period in 2021[129]. - The annual salary of Chairman Xu Shengheng decreased from HKD 2,900,000 to HKD 2,500,000, a reduction of approximately 13.79%[163]. - Executive Director Wang Yan's annual salary decreased from HKD 1,116,000 to HKD 716,000, representing a decline of about 35.87%[163]. - Executive Director Wang Manquan's annual salary decreased from HKD 1,458,000 to HKD 1,058,000, a reduction of approximately 27.43%[163]. - Executive Director Hao Xia's annual salary decreased from HKD 1,080,000 to HKD 680,000, reflecting a decline of about 37.04%[163]. - Executive Director Dai Qi's annual salary decreased from HKD 756,000 to HKD 356,000, a reduction of approximately 52.96%[163]. Corporate Governance - The company has established an audit committee consisting of four independent non-executive directors[155]. - There were several changes in the board of directors, including the resignation of two executive directors and the appointment of a new CEO[159]. - The company has complied with the GEM Listing Rules, except for a few deviations regarding attendance at the annual general meeting[157]. - The company aims to attract suitable talent for its ongoing operations and development through the share incentive plan[147]. Strategic Focus - The company aims to maximize shareholder value by effectively reducing project costs and enhancing employee cost awareness[32]. - The company plans to continue focusing on market expansion and new technology development in the renewable energy sector[87]. - The company has implemented stricter credit policies for new contracts to improve financial conditions and reduce upfront capital expenditures[29]. - The company is focused on enhancing its product offerings in the air energy and geothermal energy sectors to drive future growth[75].

Financial Performance - For the three months ended March 31, 2022, the revenue was approximately HKD 23,640,000, a decrease of about 8% compared to HKD 25,695,000 in the same period last year[6][9]. - The net loss for the period was approximately HKD 14,996,000, which is a reduction of about 35.8% from the net loss of HKD 23,359,000 in the previous year[12]. - The gross profit margin decreased from approximately 19.0% in the previous year to about 13.5% in the current period[9]. - Gross profit for the period was HKD 3,193,000, down 34.7% from HKD 4,892,000 year-over-year[19]. - The total comprehensive loss for the period was HKD 12,291,000, significantly lower than HKD 25,483,000 in the same period last year[20]. - The group’s total comprehensive loss for the period was HKD 14,794,000, compared to a loss of HKD 22,273,000 in the previous year, showing a 33.5% decrease in losses[42]. Cost Management - Administrative expenses significantly decreased by approximately 37.1% compared to the same period last year, primarily due to strict cost control measures[10]. - The company incurred total operating expenses of HKD 17,675,000, compared to HKD 25,923,000 in the previous year, reflecting a decrease of 31.9%[19]. - Employee benefit expenses, including salaries for directors and key management personnel, decreased to HKD 12,530,000 from HKD 14,520,000, reflecting a reduction of 13.7%[39]. - Financing costs decreased to approximately HKD 133,000 from HKD 796,000 in the previous year, as all bank borrowings were repaid[12]. - The interest expense on bank loans and other borrowings for the three months ended March 31, 2022, was HKD 133,000, a significant decrease from HKD 796,000 in 2021, indicating an 83.3% reduction[35]. Market Strategy - The company aims to expand its market presence in rural areas of Shaanxi, Inner Mongolia, and Shandong through various operational models[14]. - The company is actively collecting bidding information for ground source heat pump heating projects to expand its market reach[13]. - The company continues to focus on providing, installing, and maintaining shallow geothermal energy utilization systems, as well as selling air-source heat pump products[23]. Shareholder Information - The company’s total issued shares as of March 31, 2022, was 4,526,925,163 shares[48]. - The largest shareholder, Mr. Xu Shengheng, holds 715,646,600 shares, representing 15.83% of the total issued shares[46]. - As of March 31, 2022, China Energy Conservation (Hong Kong) Investment Co., Ltd. holds 1,190,000,000 shares, representing 26.29% of the total issued shares[51]. - Universal Zone Limited owns 250,000,000 shares, accounting for 5.52% of the total issued shares[51]. - No dividends were declared or proposed for the three months ended March 31, 2022, consistent with the previous year[42]. Compliance and Governance - The company has established an audit committee consisting of five independent non-executive directors to oversee financial reporting and risk management[56]. - The company is not aware of any non-compliance by directors with the trading rules during the review period[58]. - The company has no known competition or conflict of interest involving its directors or major shareholders[55]. - No shares were granted under the share incentive plan during the three months ended March 31, 2022[54]. - The share incentive plan aims to reward qualified participants contributing to the group's growth and development[54].

Financial Performance - The company recorded revenue of approximately HKD 176,835,000 for the year, a decrease of about 23.4% compared to the previous year[9]. - The net loss for the year was approximately HKD 102,327,000, which represents a narrowing of the loss by about 58% compared to the previous year[9]. - The total revenue for the year ended December 31, 2021, was approximately HKD 176,835,000, a decrease of about 23.4% compared to HKD 230,862,000 for the year ended December 31, 2020[27][28]. - The gross profit for the year was approximately HKD 31,240,000, resulting in a gross margin of 17.7%, compared to a gross profit of HKD 46,134,000 and a gross margin of 20.0% in the previous year[29]. - The impairment loss on trade receivables and notes was approximately HKD 38,943,000, while the impairment loss on contract assets was approximately HKD 20,796,000 for the year[28]. - The total signed contracts value as of December 31, 2021, was approximately HKD 158,578,000, down from HKD 211,219,000 in the previous year[35]. - The administrative expenses decreased by approximately 20.8% to HKD 70,952,000 from HKD 89,639,000 in the previous year, due to cost control measures[31]. - The company has cash and cash equivalents of approximately HKD 87,069,000 as of December 31, 2021, compared to HKD 63,172,000 in the previous year[41]. - The debt ratio as of December 31, 2021, was approximately 51.2%, down from 57.5% in the previous year[46]. Strategic Focus and Future Plans - The company aims to focus on urban ecological governance and participate in urban heating and cooling construction, emphasizing clean energy support[18]. - The company has set a goal for 2022 to "restart and take off again" based on previous foundations[12]. - Future plans include expanding business in northern rural areas for clean heating solutions, targeting buildings with an area of 50-2,000 square meters[62]. - The company aims to promote clean heating projects in the Beijing-Tianjin-Hebei region and increase market efforts in western regions[62]. - The company is committed to leveraging its unique shallow geothermal heating technology to create higher value for shareholders, employees, and customers[18]. - The company continues to focus on promoting shallow geothermal energy as an alternative energy source and is actively seeking opportunities for market expansion[39]. - The company plans to implement a unified basic salary standard and refine performance assessments to maximize fairness and justice[13]. Management and Governance - The company appointed Mr. Xue Jiangyun as the executive director and CEO since March 14, 2022, with extensive experience in energy efficiency and management[66]. - Mr. Pan Ya has been appointed as the executive director and CFO since March 14, 2022, bringing over 20 years of financial accounting and management experience[67]. - The board of directors includes experienced professionals with backgrounds in finance, engineering, and management, enhancing strategic decision-making capabilities[69]. - The company has established systems and allocated resources to ensure compliance with regulatory requirements, including the Securities and Futures Ordinance and GEM Listing Rules[107]. - The company has adopted a nomination policy to identify suitable candidates for the board, considering various factors including qualifications, skills, and diversity[175]. - The company established a remuneration committee in May 2006 to review and formulate the remuneration policy for directors and senior management, holding three meetings during the reporting period[170]. Risk Management - The company has identified major risks related to market, operations, and funding, and has developed corresponding countermeasures[193]. - Market risks include the impact of macroeconomic conditions on the mainland real estate market, potentially leading to a decrease in new property completions and affecting project promotions[193]. - Intense market competition has resulted in a significant decline in annual revenue due to reduced project availability[194]. - Operational risks include insufficient awareness of costs and budgets within business departments, leading to discrepancies between actual performance and budget[196]. - Funding risks include increasing difficulty in collecting payments for past projects, leading to higher bad debt risks and significant capital occupation[199]. - The ongoing COVID-19 pandemic continues to impact the company's normal operations[197]. Employee and Customer Relations - The company continues to prioritize employee welfare by regularly reviewing and updating compensation and benefits, training, and occupational health policies[108]. - The company has implemented a 24-hour service hotline to address customer inquiries and complaints, demonstrating a commitment to customer service[108]. - The company has not reported any workplace accidents leading to strikes or fatalities during the year, emphasizing a commitment to employee safety[108]. - The top five customers accounted for approximately 39% of total sales during the reporting period, down from 43% in 2020, with the largest customer representing about 16% of sales[109]. - Procurement from the top five suppliers constituted around 30% of total procurement for the year, a decrease from 34% in 2020, with the largest supplier accounting for approximately 16% of procurement, down from 24%[109]. Environmental and Social Responsibility - The company is committed to environmental sustainability by implementing geothermal heating systems in its offices to reduce electricity consumption and environmental impact[105]. - The company plans to continue reviewing its environmental practices and consider implementing more sustainable measures in its operations[106]. - The company will publish its Environmental, Social, and Governance report by May 2022[151]. - The company made charitable donations amounting to RMB 13,000 (approximately HKD 15,677) during the year[101]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ending December 31, 2021[50]. - The company has no available distributable reserves as of December 31, 2021, after deducting accumulated losses, compared to HKD 2,744,000 in 2020[104]. - The company's authorized share capital is USD 160,000,000, divided into 16,000,000,000 shares with a par value of USD 0.01 each, and issued share capital is 4,526,925,163 shares[97]. - Major shareholder China Energy Conservation Group holds 1,190,000,000 shares, representing 26.29% of total issued shares[130]. - The company has not authorized any directors or their associates to acquire shares or bonds during the year[127].

Financial Performance - For the nine months ended September 30, 2021, the revenue was approximately HKD 138,565,000, a decrease of about HKD 59,921,000 compared to HKD 198,486,000 in the same period last year[11]. - The net loss for the nine months ended September 30, 2021, was approximately HKD 45,418,000, significantly widening from a loss of HKD 10,798,000 in the same period last year[13]. - The gross profit margin decreased by 7.34% to 21.16% for the nine months ended September 30, 2021, compared to 28.50% in the same period last year[11]. - The gross profit for the nine months ended September 30, 2021, was HKD 29,316,000, compared to HKD 56,569,000 in the same period of 2020, indicating a decrease of about 48.2%[20]. - The net loss for the nine months ended September 30, 2021, was HKD 45,418,000, compared to a net loss of HKD 10,798,000 in the same period of 2020, reflecting an increase in loss of approximately 320.5%[20]. - Total revenue for the three months ended September 30, 2021, was HKD 50,119,000, a decrease of 38% compared to HKD 80,856,000 in 2020[29]. - Revenue from contracts with customers amounted to HKD 47,342,000 for the three months ended September 30, 2021, down 39% from HKD 77,589,000 in the same period last year[31]. - The total revenue for the nine months ended September 30, 2021, was HKD 138,565,000, representing a decline of 30% from HKD 198,486,000 in 2020[31]. Expenses and Costs - Sales and distribution expenses increased to approximately HKD 15,912,000, up from HKD 13,608,000 in the same period last year, due to market expansion efforts[12]. - The company reported a decrease in sales and distribution expenses to HKD 15,912,000 for the nine months ended September 30, 2021, down from HKD 66,273,000 in the same period of 2020, a reduction of about 76.0%[20]. - Other income decreased from approximately HKD 24,357,000 in the previous year to about HKD 11,710,000 due to the absence of debt waivers this year[11]. - Financing costs decreased to approximately HKD 3,305,000 from HKD 22,534,000 in the previous year, primarily due to loan repayments[13]. - The financing costs for the three months ended September 30, 2021, totaled HKD 1,438,000, a decrease from HKD 12,197,000 in the same period last year[36]. - The cost of goods sold for the three months ended September 30, 2021, was HKD 18,507,000, down from HKD 35,911,000 in 2020[37]. Strategic Initiatives - The company is actively developing projects in regions such as Shanxi and Xinjiang, focusing on coal-to-electricity initiatives[16]. - A significant project in Changsha, Hunan, has been signed with an investment of HKD 8,200,000, which is expected to provide operational guarantees for future heating services[16]. - The company has been actively improving its procurement processes and supplier management to reduce procurement costs, which is part of its cost control strategy[18]. - The company is responding to national policies promoting low-carbon and environmentally friendly industries by implementing sustainable development strategies in geothermal heating[18]. - The group has optimized its human resources structure to further reduce labor costs in line with its development status[18]. - The company aims to enhance its supplier evaluation and maintenance processes through market research and on-site inspections to ensure product quality and service timeliness[18]. Shareholder Information - The largest shareholder, China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd., held 1,190,000,000 shares, representing 26.29% of the total issued shares[55]. - Xu Shengheng, a director, held 715,646,600 shares, accounting for 15.83% of the total issued shares[55]. - Liu Ening, another director, owned 250,000,000 shares, which is 5.52% of the total issued shares[55]. - The company reported no other significant changes in shareholdings among directors and key executives as of September 30, 2021[56]. - The company continues to monitor its financial performance and shareholder structure closely in light of market conditions[56]. - The weighted average number of ordinary shares in issue for the three months ended September 30, 2021, was 4,447,637,000 shares, slightly down from 4,455,420,000 shares in the same period of 2020[45]. - The weighted average number of ordinary shares for the nine months ended September 30, 2021, was 4,433,055,000 shares, compared to 4,455,420,000 shares for the same period in 2020[45]. - As of September 30, 2021, the company had a total of 4,526,925,163 shares issued[52]. Governance and Compliance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems, consisting of five independent non-executive directors[62]. - There were no securities transactions by directors that violated the GEM listing rules during the review period[63]. - The company did not repurchase or redeem any of its listed securities during the review period, except for the shares acquired under the share incentive plan[65]. - The company reported no competition or conflict of interest from its directors or major shareholders during the review period[61]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[65]. Incentive Plans - The company implemented a share incentive plan on January 15, 2020, to reward qualified participants contributing to its growth and development[58]. - As of September 30, 2021, a total of 46,808,000 shares were purchased under the share incentive plan, representing approximately 1.03% of the company's issued share capital, at a cost of about HKD 3,791,000[65]. - The share incentive plan included rewards for various directors, with a total of 58,000,000 shares allocated, of which 54,000,000 shares remained outstanding as of the reporting date[59]. - The company aims to attract suitable talent for further development through its share incentive plan[58].