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China Geothermal Industry Developmnent Group Limited (Stock Code: 8128.HK) is the sole listed company in Hong Kong focusing on the field of promotion of the geothermal ground source energy as alternative energy for heating (cooling) with a large state-owned enterprise specialized in energy-conservation and environmental protection as its single largest shareholder.

With the original innovative “HYY single well circulation heat exchange collection technology”, the Company owns a full-stop industrial chain integrating technology service, design consultancy, equipment manufacturing, system engineering, property maintenance into one operating system, enabling it to provide complete energy system solutions of shallow ground source heating (cooling) energy for various types of buildings in different regions. The Company has always focused on the scientific research and development and industrialization development of the original innovative HYY single well circulation heat exchange shallow ground source energy collection technology which has received great attention and support from the community and the state, local governments and the users at all levels.

Ever Source Science and Technology Development Group Ltd. (“HYY”), the technological and industrial headquarters of the Group, has made constant breakthroughs and innovations in research and promotion of the professional technologies for using shallow ground source energy as the alternative heating (cooling) energy for buildings, which have achieved remarkable results. The Technical Code for Single Well of Geothermal Energy Collection with Circulation Heat Exchange, a set of local standards for Beijing released by Beijing Municipal Administration of Quality and Technology Supervision (北京市質量技術監督局) and administrated and implemented by Beijing Water Authority (北京水務局) which is jointly drafted by Beijing Association to Promote Energy Conservation and Environmental Protection (北京節能環保促進會), China Energy Conservation and Environmental Protection Group (中國節能環保集團公司) and Ever Source Science and Technology Development Group Ltd., became effective on 1 April 2013. The implementation of the standards has laid the foundation for the industrialization development of the third type Note of shallow ground source energy collection technology, the only one of its kind in the world and an original innovative technology developed by China. By adopting the single-well circulation heat exchange technology, sufficient zero pollution energy will be collected in an efficient, environment-friendly and land-conserving manner under any geological conditions and be provided to heat pump products so as to provide heating (cooling) to buildings.

The emerging industry of shallow ground source energy as the alternative heating (cooling) energy to buildings is an integrated industry of heating and cooling, which is evolved from the traditional separate industries of heating and cooling. The implementation of the Technical Code for Single Well of Geothermal Energy Collection with Circulation Heat Exchange allows enormous room for the vast development of this emerging energy industry which has become a vital momentum for the transformation of developmental mode for the Company and the acceleration of restructuring, industrial transformation and upgrading.

With maximizing the shareholder’s interests as its priority, the Company sticks to the strategy of organic growth as well as external expansion. Under the sagacious leadership of the Board of Directors with the business expansion model featuring “specialised corporate operation and group-wise regional development”, the Group will constantly enhance the specialization of its subsidiaries in various industries and continuously expanded regional coverage by catering to the features of different climatic regions and will continually gain growth momentum for its development, with an aim to become the most competitive new energy enterprise specialized in the field of promoting the geothermal ground source energy as alternative energy for heating (cooling).

Note: Besides utilization of natural energy derived from rivers, lakes and oceans and recovery of residual heat to provide low-grade energy for heat pump products, there are three ways generally applied in the international community to collect ground source energy: 1. pump well (efficient, but may cause water loss, pollution and potential geological hazards); 2. buried pipe (environment-friendly, but inefficient and requires large areas of land); and 3. single-well circulation heat exchange (efficient, environment-friendly and land-conserving).

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