Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately HKD 31,472,000, a decrease of about HKD 2,905,000 compared to HKD 34,377,000 in the same period last year[2][4] - The group recorded a net profit of approximately HKD 159,000 for the review period, a significant improvement from a loss of HKD 16,022,000 in the previous year[2][5] - The company reported a revenue of HKD 31,472,000 for the six months ended June 30, 2024, a decrease from HKD 34,377,000 in the same period last year, representing a decline of approximately 8.8%[16] - Gross profit for the same period was HKD 8,699,000, slightly down from HKD 8,861,000, indicating a stable gross margin despite the revenue decline[16] - The company achieved a net profit of HKD 159,000 for the six months ended June 30, 2024, a significant recovery from a net loss of HKD 16,022,000 in the previous year[16] - The profit before tax for the group was a loss of HKD 2,803,000, compared to a loss of HKD 16,024,000 in the previous year, indicating an improvement in performance[26] - The company reported a total comprehensive loss of HKD 1,787,000 for the six months ended June 30, 2024, compared to a loss of HKD 20,465,000 in the same period last year[17] Revenue Breakdown - Revenue from shallow geothermal energy was HKD 30,617,000, up from HKD 28,977,000 year-on-year, while revenue from air energy/shallow geothermal heat pumps decreased to HKD 635,000 from HKD 1,000,000[4] - For the six months ended June 30, 2024, total revenue from external customers was HKD 31,472,000, a decrease of 8.8% compared to HKD 34,377,000 for the same period in 2023[26] - The shallow geothermal energy segment generated revenue of HKD 30,617,000, while the air source/geothermal heat pump segment contributed HKD 1,000,000[26] - The group’s total segment revenue for the six months ended June 30, 2024, was HKD 33,747,000, compared to HKD 34,876,000 in the same period of 2023[26] Expenses and Cost Management - Selling and distribution expenses decreased to approximately HKD 5,048,000 from HKD 6,237,000, attributed to further salary reforms and cost control measures[5] - Administrative expenses decreased by approximately HKD 6,932,000 or 29.9% compared to the previous year, mainly due to reduced salary and related costs[5] - The cost of goods sold for the six months ended June 30, 2024, was HKD 9,782,000, a decrease from HKD 10,335,000 in 2023, representing a decline of about 5.3%[35] - The cost of services provided for the six months ended June 30, 2024, was HKD 12,981,000, down from HKD 15,185,000 in 2023, indicating a reduction of approximately 14.5%[35] - Employee benefits expenses, including salaries for directors and key management personnel, were HKD 12,400,000 for the six months ended June 30, 2024, a decrease from HKD 17,710,000 in 2023, reflecting a decline of about 30%[35] Assets and Liabilities - As of June 30, 2024, total non-current assets amounted to HKD 414,799,000, a decrease from HKD 426,412,000 as of December 31, 2023[18] - Current assets totaled HKD 746,643,000 as of June 30, 2024, down from HKD 778,487,000 at the end of the previous year[18] - The total assets less current liabilities stood at HKD 394,134 thousand as of June 30, 2024, slightly down from HKD 397,104 thousand at the end of 2023[19] - The company's total liabilities decreased from HKD 926,309 thousand in December 2023 to HKD 884,957 thousand as of June 30, 2024, indicating a reduction of approximately 4.5%[19] - The total amount of trade payables and notes payable as of June 30, 2024, was HKD 145,654,000, down from HKD 157,241,000 as of December 31, 2023[44] Staffing and Organizational Changes - The group employed approximately 198 staff members as of June 30, 2024, a decrease from about 218 employees at the end of 2023[12] - The company established a special collection team to recover overdue payments, which has shown noticeable results, particularly in recovering significant overdue project payments[15] - The company is focusing on internal control management and has adjusted employee performance evaluation systems, resulting in a significant reduction in expenses compared to the previous year[15] - The company is actively adapting to the new normal driven by innovation and dual carbon goals, restructuring its internal organization to enhance management efficiency[15] Shareholder Information - As of June 30, 2024, the total number of issued shares of the company is 4,526,925,163[50] - Mr. Xu Shengheng holds 722,170,600 shares, representing approximately 15.97% of the total issued shares[50] - China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd. owns 1,190,000,000 shares, accounting for 26.29% of the total issued shares[53] - Mr. Wang Zhiyu's spouse holds 253,000,000 shares, which is 5.59% of the total issued shares[53] Corporate Governance - The audit committee has been established to review and supervise the group's financial reporting procedures, risk management, and internal control systems[60] - The company has complied with all provisions of the GEM Corporate Governance Code, except for the absence of a non-executive director at the annual general meeting[62] - No securities trading code of conduct has been adopted for directors, and no non-compliance with GEM Listing Rules was reported during the review period[61]

Financial Performance - The company recorded revenue of approximately HKD 67,860,000 for the fiscal year ending December 31, 2023, representing a decrease of about 43.18% compared to the same period in 2022[12]. - The company achieved a profit of approximately HKD 4,722,000 for the fiscal year, marking a significant turnaround from a loss in the previous year[12]. - The improvement in financial performance is attributed to the recovery of previously impaired contract assets and enhanced management of project-based accounting[12]. - The company's revenue for the year ended December 31, 2023, was approximately HKD 67,860,000, a decrease of about 43.18% compared to HKD 119,428,000 in 2022[20]. - The net profit for the year ended December 31, 2023, was approximately HKD 4,722,000, recovering from a net loss of HKD 135,463,000 in 2022[19]. - The gross profit for the year was approximately HKD 9,259,000, with a gross margin of 13.64%, an increase of 0.98% from the previous year's gross margin of 12.66%[21]. - The company recorded a profit attributable to owners of approximately HKD 9,475,000 for the year ended December 31, 2023, an increase of approximately HKD 143,807,000 compared to a loss of approximately HKD 134,332,000 for the year ended December 31, 2022[34]. - The group reported a revaluation gain of approximately HKD 9,630,000 on land and buildings as of December 31, 2023, which has been directly credited to the asset revaluation reserve[96]. Operational Developments - The company has established a winter geothermal heat pump operation center in Beijing to support the development of a new integrated heating and cooling industry[13]. - The company aims to transition from traditional combustion heating to geothermal heat pump heating, aligning with national standards for winter heating temperatures[13]. - The geothermal heat source utilized is derived from solar and geothermal energy, ensuring sustainable heating solutions[13]. - The company plans to collaborate with regional backbone enterprises to implement mid- to long-term regional planning for winter heating solutions[13]. - The company is focused on reducing fossil energy consumption by half compared to traditional heating methods, contributing to carbon neutrality goals[13]. - The company emphasizes the importance of maintaining a comfortable indoor temperature of around 20 degrees Celsius during harsh winter conditions[13]. - The company aims to strengthen its core business by focusing on shallow geothermal energy as a heating alternative and improving capital efficiency[32]. - The company continues to develop air-source and shallow geothermal heat pump products, with plans to enhance product quality and reduce costs in response to market demand[31]. - The company has implemented a low-temperature heat energy collection technology, which is a key part of its emerging geothermal energy industry[70]. - The company is focusing on the integration of geothermal heating and cooling systems as a sustainable energy solution for northern regions[70]. Strategic Initiatives - The company plans to officially launch a three-year plan to transition to the main board, enhancing management efficiency through a three-tier flat management structure[18]. - The company has entered into an agreement to acquire 80% of Hydrogen Energy Technology Limited for a maximum consideration of HKD 70,200,000, which will enhance its capabilities in the renewable energy sector[56]. - The acquisition of Hydrogen Energy Technology Limited is expected to support the company's vision of developing green alternative energy solutions comparable in cost to traditional energy sources[67]. - The company aims to promote its proprietary "single well circulation heat exchange" technology for geothermal energy systems, targeting zero emissions and combustion-free heating solutions[67]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[74]. Financial Management - The company is committed to enhancing its management and collection efforts to improve financial stability and operational efficiency[12]. - The group has implemented measures to improve liquidity and cash flow to ensure ongoing operations[37]. - The management has strengthened its operational management system and collection efforts, which contributed to profitability despite the decline in revenue[64][65]. - The company is focused on enhancing its market expansion and project settlement efforts to overcome current challenges[65]. - The group had cash and cash equivalents of approximately HKD 69,553,000 as of December 31, 2023, compared to approximately HKD 47,043,000 in 2022[35]. - The debt ratio of the group was approximately 55.7% as of December 31, 2023, down from 60.0% in 2022[41]. - The group has no available reserves for distribution to shareholders as of December 31, 2023, after accounting for accumulated losses[109]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[163]. - The board consists of nine directors, including three executive directors and three independent non-executive directors, ensuring a balance of expertise and independence[165]. - The independent non-executive directors confirmed their independence in accordance with GEM listing rules[178]. - The company has mechanisms in place to ensure independent opinions are brought to the board, including annual reviews of independent non-executive directors' contributions[176]. - The company provides training to all directors to enhance their knowledge and skills regarding corporate governance and regulatory compliance[180]. - The company has implemented a director and officer liability insurance policy to protect its board members and executives[124]. - The audit committee is responsible for overseeing the financial reporting process, risk management, and internal controls[153]. Risk Management - The company has identified key risks related to market, operational, and funding aspects, and has implemented measures to mitigate these risks[196]. - Market risks include the impact of macroeconomic conditions on the mainland property market, potentially leading to a decrease in new property completions[197]. - The company employs a three-line risk management approach to identify, assess, and mitigate risks effectively[195]. - The board is responsible for establishing effective risk management and internal control systems to protect shareholder interests[194]. - Operational risks have increased due to a decline in business scale, leading to liquidity issues and a lack of market development personnel[200]. - Funding risks have arisen from a decrease in new projects, resulting in reduced cash flow and difficulties in collecting payments from past projects[200]. - Measures such as normal collection efforts and legal actions are being implemented to enhance receivables collection[200]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with no dividends in 2022[51]. - The company's total issued share capital was 4,526,925,163 shares with a par value of USD 0.01 each as of December 31, 2023[52]. - Major shareholder China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd. owns 1,190,000,000 shares, representing 26.29% of the total issued share capital[138]. - The company has seen a change in its board composition with the resignation of independent non-executive directors on November 4, 2023[127]. - The company has disclosed details regarding its share incentive plan in the financial statements[134].

Financial Performance - For the fiscal year ended December 31, 2023, the total revenue was HKD 67,860,000, a decrease of 43.3% compared to HKD 119,428,000 in 2022[5] - Gross profit for the year was HKD 9,259,000, down 38.5% from HKD 15,121,000 in the previous year[5] - The net profit for the year was HKD 4,722,000, a significant recovery from a loss of HKD 135,463,000 in 2022[5] - Basic and diluted earnings per share were HKD 0.21, compared to a loss per share of HKD 2.97 in the prior year[5] - Total revenue for the year ended December 31, 2023, was HKD 67,860,000, a decrease from HKD 119,428,000 in 2022, representing a decline of approximately 43.2%[30] - Revenue from contracts with customers was HKD 62,212,000 in 2023, down from HKD 119,337,000 in 2022, indicating a significant reduction in business activity[31] - The company reported a segment loss of HKD 144,056,000 for the year ended December 31, 2022, compared to a profit of HKD 7,091,000 in 2023, highlighting a recovery in performance[26] - The company reported a pre-tax profit of HKD 9,475,000 for 2023, a significant recovery from a loss of HKD 134,332,000 in 2022[49] - The company recorded a profit attributable to owners of approximately HKD 9,475,000 for the year ended December 31, 2023, an increase of approximately HKD 143,807,000 compared to a loss of approximately HKD 134,332,000 for the year ended December 31, 2022[74] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 778,487,000, slightly down from HKD 778,554,000 in 2022[7] - The company’s total assets as of December 31, 2023, were HKD 1,204,899,000, a slight decrease from HKD 1,247,849,000 in 2022[26] - Current liabilities decreased to HKD 807,795,000 from HKD 835,961,000 in the previous year[8] - Total liabilities decreased to HKD 926,309,000 in 2023 from HKD 963,157,000 in 2022, indicating improved financial stability[26] - The total equity attributable to the owners of the company was HKD 249,924,000, a slight decrease from HKD 250,815,000 in the previous year[8] - As of December 31, 2023, the group's net current liabilities were approximately HKD 29,308,000, a decrease from approximately HKD 57,407,000 in 2022[75] - The debt ratio of the group was approximately 55.7% as of December 31, 2023, down from 60.0% in 2022[79] Revenue and Income Sources - Revenue from construction services was HKD 61,198,000, while sales of industrial products generated HKD 1,014,000 in 2023[35] - Other income for 2023 totaled HKD 16,816,000, compared to HKD 14,328,000 in 2022, reflecting a growth of 17.4%[40] - The company’s investment property rental income increased to HKD 5,648,000 in 2023 from HKD 91,000 in 2022, indicating a positive trend in property management[31] - Expected revenue to be recognized within one year is HKD 75,321,000, up from HKD 65,540,000 in 2022, indicating a 10.8% increase[38] Operational Efficiency - The company reported a significant improvement in the impairment loss on trade receivables, with a reversal of HKD 2,378,000 compared to a loss of HKD 38,289,000 in 2022[5] - The net value of trade receivables decreased to HKD 3,134,000 in 2023 from HKD 17,420,000 in 2022, a decline of 82.0%[50] - Accounts receivable aged analysis showed a total of HKD 3,134,000 for 2023, down from HKD 17,420,000 in 2022, indicating improved collection efficiency[52] - The company reduced its sales and distribution expenses by approximately HKD 124,000 or 4.4% compared to the previous year, due to cost control measures[63] - Other expenses decreased by 55.5% to approximately HKD 3,612,000 in 2023, attributed to reduced impairment losses on available-for-sale properties[65] Future Outlook and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[5] - The company aims to develop the alternative energy sector, focusing on the application of its proprietary "single well circulation heat exchange" technology to provide heating without combustion and zero emissions[101] - The acquisition of Zhongqiang New Energy is expected to enhance the company's capabilities in developing and utilizing green alternative energy technologies comparable to traditional energy costs[101] - The company emphasizes the importance of improving management systems and enhancing collection efforts to address the decline in revenue[101] Corporate Governance and Compliance - The group has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial position and performance for the current and prior years[13][15] - The group has not early adopted any revised Hong Kong Financial Reporting Standards that are not yet effective, expecting no significant impact on future financial statements[17][18] - The company has adopted the corporate governance code as per GEM listing rules and has complied with it throughout the year, with some exceptions noted[102] - The audit committee has reviewed the financial statements for the year ending December 31, 2023, and has held eight meetings during the year[106] Employee and Shareholder Information - The group employed approximately 218 employees as of December 31, 2023, a decrease from approximately 306 employees in 2022[80] - The company did not declare any final dividends for the years ended December 31, 2023, and 2022[47] - The company has not purchased any shares under the share incentive plan for the years ended December 31, 2023, and 2022[81] - A total of 44,500,000 incentive shares were granted to certain directors and employees, with 7,500,000 shares being forfeited[83] - The company's authorized share capital was USD 160,000,000, divided into 16,000,000,000 shares with a par value of USD 0.01 each, and issued share capital was 4,526,925,163 shares[87]

Financial Performance - For the nine months ended September 30, 2023, the revenue was approximately HKD 61,195,000, a decrease of about HKD 8,896,000 compared to the same period last year[5]. - The group recorded a net loss of approximately HKD 131,000 for the nine months ended September 30, 2023, significantly reduced from a loss of HKD 44,911,000 in the same period last year[6][11]. - For the three months ended September 30, 2023, the company reported revenue of HKD 26,818,000, a 35.8% increase from HKD 19,742,000 in the same period of 2022[17]. - The gross profit for the nine months ended September 30, 2023, was HKD 14,982,000, representing an increase of 9.2% compared to HKD 13,720,000 for the same period in 2022[17]. - The company recorded a net profit of HKD 15,891,000 for the three months ended September 30, 2023, compared to a net loss of HKD 7,748,000 in the same period of 2022[18]. - Total income from contracts with customers for the nine months ended September 30, 2023, was HKD 56,435,000, down 11.4% from HKD 63,681,000 in the same period of 2022[27]. - The total comprehensive income for the three months ended September 30, 2023, was HKD 16,478,000, compared to a loss of HKD 14,938,000 in the same period of 2022[20]. - The company reported a loss attributable to equity holders of the parent of HKD 19,085,000 for the three months ended September 30, 2023, compared to a loss of HKD 7,207,000 in 2022[41]. Cost Management - The gross profit margin increased by 4.91 percentage points to 24.48% for the nine months ended September 30, 2023, compared to 19.57% in the previous year[10][13]. - Sales and distribution expenses decreased to approximately HKD 10,514,000 from HKD 13,555,000 year-on-year, attributed to cost-cutting measures[10]. - Administrative expenses were reduced by approximately HKD 2,430,000 or 6.72% compared to the previous year, mainly due to salary reforms[10]. - Financing costs for the nine months ended September 30, 2023, were approximately HKD 2,775,000, down from HKD 4,348,000 in the same period last year[11]. - The company reported a significant reduction in financing costs, which decreased from HKD 4,338,000 in the nine months ended September 30, 2022, to HKD 2,775,000 in the same period of 2023, a decline of 36.1%[17]. - Financing costs for the three months ended September 30, 2023, totaled HKD 723,000, a decrease of 60% from HKD 1,811,000 in 2022[33]. Market Strategy and Opportunities - The group plans to expand its market presence by providing diversified services tailored to various project needs, enhancing customer trust and satisfaction[13]. - The company is exploring new energy business opportunities, particularly in hydrogen fuel cells, which offer significant advantages in high-power and long-endurance applications[15]. - The group anticipates substantial market opportunities in the renovation of old buildings, as outlined in a recent government policy promoting renewable energy utilization[15]. Shareholder Information - As of September 30, 2023, the company had issued a total of 4,526,925,163 shares, with major shareholders holding significant stakes, including Mr. Xu Shengheng with 15.85%[45]. - The company’s capital reserve stood at HKD 85,428,000, while the accumulated losses increased to HKD 1,276,203,000[43]. - The company’s share premium was reported at HKD 906,013,000, remaining stable compared to previous periods[43]. - The weighted average number of ordinary shares issued for the calculation of basic and diluted loss per share was 4,526,925,000 for the three months ended September 30, 2023[41]. - The company has granted a total of 44,500,000 shares under the share incentive plan, with 37,000,000 shares vested as of the report date[53]. Legal and Compliance Matters - The company is involved in a legal dispute regarding a share transfer agreement, with claims amounting to RMB 245,217,995.83[66]. - The court has frozen assets of 恒有源投资 totaling RMB 245,217,995.83 and RMB 8,217,995.83 for 恒有源投资 and 北京润古 respectively[67]. - The company has complied with the GEM Listing Rules, except for certain deviations regarding attendance at shareholder meetings by non-executive directors[58]. - The company has not adopted a code of conduct for securities trading by directors but is not aware of any non-compliance during the review period[59]. - The audit committee, consisting of four independent non-executive directors, has been established to ensure compliance with GEM listing rules[72]. - The audit committee has reviewed the financial results, ensuring compliance with applicable accounting standards and GEM listing rules[72]. Future Outlook - The management has indicated a cautious outlook for the upcoming quarters, focusing on cost management and operational efficiency[46]. - The company continues to monitor its financial position and may consider strategic adjustments in response to market conditions[46]. - The company will actively respond to legal challenges and provide updates to shareholders and investors as necessary[69].

截至二零二三年九月三十日止九個月 第三季度業績公告 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 - For the six months ended June 30, 2023, the revenue was approximately HKD 34,377,000, a decrease of about 15,979,000 HKD compared to HKD 50,349,000 in the same period last year[5][10] - The net loss for the period was approximately HKD 16,022,000, an improvement from a loss of HKD 37,163,000 in the previous year[6][12] - For the six months ended June 30, 2023, the company's revenue was HKD 34,377,000, a decrease of 31.7% compared to HKD 50,349,000 for the same period in 2022[32] - The company reported a net loss of HKD 16,022,000 for the six months ended June 30, 2023, compared to a net loss of HKD 37,163,000 for the same period in 2022, indicating an improvement of 56.9%[34] - The total comprehensive loss for the period was HKD 20,465,000, compared to a loss of HKD 45,691,000 in the prior year, indicating a significant reduction in losses[36] - The group reported a total comprehensive loss of HKD 45,691,000 for the six months ended June 30, 2023, compared to a loss of HKD 37,163,000 in the same period of 2022[41] - The company reported a loss before tax of HKD 16,024,000 for the six months ended June 30, 2023, compared to a loss of HKD 37,247,000 for the same period in 2022, showing an improvement of 57.0%[53] Cost Management - The group recorded a significant decrease in sales and distribution expenses, amounting to approximately HKD 6,237,000, down from HKD 8,885,000 in the previous year, due to cost control measures[10] - Administrative expenses decreased by approximately HKD 5,441,000 or 19% compared to the previous year, primarily due to reduced salaries and related costs[10] - The company has strengthened its internal controls and budget management, resulting in significant cost reductions and improved financial oversight[27] - The company’s financing costs (excluding interest on lease liabilities) decreased to HKD 313,000 in 2023 from HKD 516,000 in 2022, a reduction of 39.4%[53] - The interest expense on bank loans for the six months ended June 30, 2023, was HKD 313,000, down from HKD 516,000 in 2022, reflecting a decrease of approximately 39.4%[67] Cash Flow and Liquidity - As of June 30, 2023, the group had cash and cash equivalents of approximately HKD 62,529,000, an increase from HKD 47,043,000 as of December 31, 2022[14] - The company’s cash and cash equivalents increased to HKD 62,529,000 as of June 30, 2023, up from HKD 47,043,000 at the end of 2022, indicating improved cash flow management[37] - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 14,981,000, compared to a net cash outflow of HKD 30,434,000 in the same period of 2022[43] - The net cash generated from investing activities for the six months ended June 30, 2023, was HKD 1,269,000, down from HKD 4,158,000 in the previous year[43] - The total cash and cash equivalents at the end of the period increased to HKD 62,529,000 from HKD 60,010,000 year-on-year[43] Assets and Liabilities - Non-current assets decreased to HKD 453,953,000 as of June 30, 2023, down from HKD 469,295,000 at the end of 2022[37] - Current assets totaled HKD 748,790,000, a decrease from HKD 778,554,000 at the end of 2022, reflecting a decline in liquidity[37] - Current liabilities were reported at HKD 815,291,000, slightly down from HKD 835,961,000 at the end of 2022, indicating improved management of short-term obligations[38] - The company's net asset value decreased to HKD 264,227,000 as of June 30, 2023, from HKD 284,692,000 at the end of 2022[39] - The company’s total liabilities decreased slightly to HKD 938,516,000 from HKD 963,157,000 at the end of 2022, showing a trend towards reducing overall debt[38] Business Operations - The group operates in four main business segments: shallow geothermal energy systems, air energy/shallow geothermal heat pump products, property investment, and securities trading[46][50] - The company is focusing on the development and promotion of shallow geothermal energy as a substitute for building heating, aligning with national policies promoting clean energy[30] - The company aims to achieve a significant increase in shallow geothermal heat pump heating area in Beijing, targeting an addition of 20 million square meters by 2025[30] - The segment profit for the shallow geothermal energy division increased to HKD 8,788,000 in 2023 from HKD 7,388,000 in 2022, representing a growth of 19.0%[53] - Contract revenue from customers for the six months ended June 30, 2023, was HKD 29,977,000, down 34.3% from HKD 45,674,000 in the same period of 2022[58] Shareholder Information - As of June 30, 2023, the company has issued and fully paid shares totaling 4,526,925 thousand shares, maintaining the same number as December 31, 2022[83] - Mr. Xu Shengheng holds 717,670,600 shares, representing approximately 15.85% of the total issued shares[99] - China Energy Conservation Hong Kong holds 1,190,000,000 shares, accounting for 26.29% of the total issued shares[101] - A total of 58,000,000 reward shares have been granted under the share incentive plan since its adoption[106] - The company has a share incentive plan aimed at rewarding qualified participants for their contributions to the group's growth[104] Legal Matters - The company has received a civil judgment requiring Shanghai Gangze to pay legal fees of RMB 200,000, with all litigation costs borne by Shanghai Gangze[25] - The company continues to actively pursue legal actions related to ongoing litigation, ensuring that its operations and finances remain unaffected[25] - The company is involved in a legal dispute with Shanghai Gangze, claiming a return of 237 million RMB and interest losses totaling approximately 8.22 million RMB[92] Governance and Compliance - The company has established an audit committee to review and supervise financial reporting, risk management, and internal control systems[109] - During the review period, the company adhered to the GEM Listing Rules regarding securities trading by directors[110] - The company complied with the corporate governance code as per GEM Listing Rules, with the exception of attendance records for the upcoming annual general meeting[112] - The board of directors consists of both executive and independent non-executive directors, ensuring a diverse governance structure[114]

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 ...