Announcements and Notices - FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2024

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement, for which the directors (the "Directors") of the CHYY Development Group Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM (the "GEM Listing Rules") of The Stock Exchange for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website with the domain name ofwww.hkexnews.comon the "Latest Company Announcement" page for at least 7 days from the date of publication and on the website of CHYY Development Group Limited atwww.chyy.com.hk.

FINAL RESULTS

The board of directors ("Directors") of CHYY Development Group Limited (the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 December 2024 ("the Year"), together with the comparative figures for the year ended 31 December 2023 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2024

PROFIT FOR THE YEAR

OTHER COMPREHENSIVE INCOME (EXPENSE)

Other comprehensive income (expense) that may be reclassified to profit or loss in subsequent periods:

Exchange differences arising from translation of foreign operations

Share of other comprehensive expense of a joint venture Share of other comprehensive expense of associates

Release of exchange fluctuation reserve upon deregistration of subsidiaries

Release of exchange fluctuation reserve upon partial disposal of an associate

2024

HK$'000

2023 HK$'000

11,293 4,722

5,420 (802)

(79) (34)

(497) (271)

1,410

-

- 569

Net other comprehensive income (expense) that may be reclassified to profit or loss in subsequent periods

6,254

(538) Other comprehensive income (expense) that will not be reclassified to profit or loss in subsequent periods: Gain (loss) on property revaluation

Equity investments designated at fair value through other comprehensive income:

Changes in fair value Income tax effect Net other comprehensive income (expense) that will not be reclassified to profit or loss in subsequent periods OTHER COMPREHENSIVE INCOME (EXPENSE)

FOR THE YEAR, NET OF TAX

TOTAL COMPREHENSIVE INCOME (EXPENSE)

FOR THE YEAR

Total comprehensive income (expense) for the year attributable to:

Owners of the Company Non-controlling interests

2,507 (9,630)

93 (875)

(23) 219

70 (656)

2,577 (10,286)

8,831 (10,824)

20,124 (6,102)

17,077

(891)

3,047 (5,211)

20,124 (6,102)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

31 December 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 31 December 2024

1. CORPORATE AND GROUP INFORMATION

CHYY Development Group Limited (the "Company") was incorporated in the Cayman Islands as an exempted company with limited liability with its shares listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The addresses of the registered office and principal place of business of the Company are P.O. Box 31119, Grand Pavilion, Hibisury Way, 802 West Bay Road, Grand Cayman KY1-1205, Cayman Islands and 8/F., Chung Hing Commercial Building, 62-63 Connaught Road Central, Central, Hong Kong respectively.

The Company and its subsidiaries (collectively referred as the "Group") were involved in the following principal activities:

• • Provision, installation and maintenance of shallow geothermal energy utilisation systems

• • Trading of air conditioning/shallow geothermal heat pump products

• • Investment in properties for their potential rental income

• • Holding investment for medium to long-term strategic purposes and trading of securities and other types of investments

2.1 BASIS OF PREPARATION

These consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). For the purpose of preparation of the consolidated financial statements, information is considered material of such information is reasonably expected to influence decisions made by primary users. In addition, the consolidated financial statements include the applicable disclosure required by the Rules Governing the Listing of Securities on GEM on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and by the Hong Kong Companies Ordinance.

They have been prepared under the historical cost convention, except for certain properties and financial instruments that are measured at revalued amounts or at fair value at the end of each reporting period, as explained in the accounting policies set out below.

These consolidated financial statements are presented in Hong Kong dollars ("HK$"), and all values are rounded to the nearest thousand except when otherwise indicated.

The directors of the Company have reviewed the Group's cash flow forecast prepared by management which covers a period of twelve months from the end of the reporting period. They are of the opinion that the Group will have sufficient working capital to finance its operations and meet its financial obligations as and when they fall due in the foreseeable future. Accordingly, the directors of the Company are of the opinion that it is appropriate to prepare the consolidated financial statements for the year ended 31 December 2024 on a going concern basis.

• 2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

  Amendments to HKFRSs that are mandatorily effective for the current year

  In the current year, the Group has applied the following amendments to HKFRSs issued by the HKICPA for the first time, which are mandatorily effective for the Group's annual period beginning on or after 1 January 2024 for the preparation of the consolidated financial statements:

  Amendments to HKFRS 16	Lease Liability in a Sale and Leaseback
  Amendments to HKAS 1	Classification of Liabilities as Current or Non current and related
  amendments to Hong Kong Interpretation 5 (2020)
  Amendments to HKAS 1	Non-current Liabilities with Covenants
  Amendments to HKAS 7 and HKFRS 7	Supplier Finance Arrangements

  The application of the amendments to HKFRSs in the current year had no material impact on the Group's financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements.

• 2.3 ISSUED BUT NOT YET EFFECTIVE HKFRSs

  New and amendments to HKFRSs in issue but not yet effective

  The Group has not early applied the following new and amendments to HKFRSs that have been issued but are not yet effective:

  Amendments to HKFRS 9 and HKFRS 7	Amendments to the Classification and Measurement of
  Financial Instruments3
  Amendments to HKFRS 10 and HKAS 28	Sale or Contribution of Assets between an Investor and
  its Associate or Joint Venture1
  Amendments to HKFRS Accounting Standards	Annual Improvements to HKFRS Accounting Standards
  - Volume 113
  Amendments to HKAS 21	Lack of Exchangeability2
  Amendments to HKFRS 9 and HKFRS 7	Contracts Referring Nature - dependent Electricity3
  HKFRS 18	Presentation and Disclosure in Financial Statements4

  • 1 Effective for annual periods beginning on or after a date to be determined.

  • 2 Effective for annual periods beginning on or after 1 January 2025.

  • 3 Effective for annual periods beginning on or after 1 January 2026.

  • 4 Effective for annual periods beginning on or after 1 January 2027.

  Except for the new and amendments to HKFRSs mentioned below, the directors of the Company anticipate that the application of all other new and amendments to HKFRSs will have no material impact on the consolidated financial statements in the foreseeable future.

  HKFRS 18 Presentation and Disclosure in Financial Statements

  HKFRS 18 Presentation and Disclosure in Financial Statements , which sets out requirements on presentation and disclosures in financial statements, will replace HKAS 1 Presentation of Financial Statements. This new HKFRSs, while carrying forward many of the requirements in HKAS 1, introduces new requirements to present specified categories and defined subtotals in the statement of profit or loss; provide disclosures on management-defined performance measures in the notes to the financial statements and improve aggregation and disaggregation of information to be disclosed in the financial statements. In addition, some HKAS 1 paragraphs have been moved to HKAS 8 and HKFRS 7. Minor amendments to HKAS 7 Statement of Cash Flows and HKAS 33 Earnings per Shares are also made.

2.3 ISSUED BUT NOT YET EFFECTIVE HKFRSs (CONTINUED)

New and amendments to HKFRSs in issue but not yet effective (Continued)

HKFRS 18 Presentation and Disclosure in Financial Statements (Continued)

HKFRS 18, and amendments to other standards, will effective for annual periods beginning on or after 1 January 2027, with early application permitted. The application of the new standard is expected to affect the presentation of the statement of profit or loss and disclosures in future financial statements. The Group is in process of assessing the detailed impact of HKFRS 18 on the Group's consolidated financial statements.

3. OPERATING SEGMENT INFORMATION

The Group determines its operating segments based on the reports reviewed by the chief executive officer, being the chief operating decision maker ("CODM"), that are used to make strategic decisions.

For management purposes, the Group is organised into business units based on their products and services and has four reportable operating segments as follows:

• (a) Shallow geothermal energy segment - provision, installation and maintenance of shallow geothermal energy utilisation systems;

• (b) Air conditioning/shallow geothermal heat pump segment - trading of air conditioning/shallow geothermal heat pump products;

• (c) Property investment and development segment - investments in properties for their potential rental income; and

• (d) Securities investment and trading segment - holding investment for medium to long-term strategic purposes and trading of securities and other types of investment.

Management monitors the results of the Group's operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on reportable segment profit (loss), which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group's profit before tax except that share of results of associates and a joint venture, interest income, certain other income, certain administration costs and unallocated finance costs are excluded from such measurement.

Segment assets exclude certain investments in associates and a joint venture, time deposits, restricted cash, and cash and cash equivalents as these assets are managed on a group basis.

Segment liabilities exclude certain amounts due to associates, a joint venture and related companies, deferred tax liabilities and tax payable as these liabilities are managed on a group basis.

Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.

OPERATING SEGMENT INFORMATION (CONTINUED)

Year ended 31 December 2024

Segment revenue

Sales to external customers Intersegment sales

Air conditioning/ Shallow shallow geothermal geothermal

energy HK$'000

62,918 -

heat pump HK$'000

709 -

Property investment and development Securities investment and trading

HK$'000

HK$'000

Total HK$'000

6,002 - 69,629

5,979 - 5,979

62,918

709

11,981 - 75,608

Reconciliation:

Elimination of intersegment sales (5,979) Revenue 69,629

Segment results Reconciliation:

3,283

(3,412)

7,614 87 7,572

Share of results of a joint venture (3,434)

Share of results of associates (2,051)

Unallocated other income 25,150

Unallocated finance costs (397)

Corporate and other unallocated expenses (15,899) Profit before tax 10,941

Segment assets Reconciliation:

292,288

6

480,181

60,019 832,494

Elimination of intersegment receivables (54,326)

Corporate and other unallocated assets 78,633

Total assets 856,801

Segment liabilities Reconciliation:

304,102

-

89,650

11,156 404,908

Elimination of intersegment payables (54,326)

Corporate and other unallocated liabilities 222,119

Total liabilities 572,701

Impairment losses on properties held for sale

Reversal of impairment losses under expected credit loss model on contract assets, net

Impairment losses under expected credit loss model on other receivables and deposits, net

Depreciation of right-of-use assets Reversal of impairment losses under expected credit loss model on trade receivables, net

Other segment information: Amounts included in the measure of segment profit or loss or segment assets: Depreciation of property, plant and equipment

energy HK$'000

6,413 829

(6,166)

7,120

(21,283)

-

heat pump HK$'000

- -

-

-

- -

10