<table><tr><td>“Franchised Stores”</td><td> retail stores of home appliances and consumer electronic
products which are operated and managed by our
franchisees   pursuant   to   the   relevant   franchise
arrangements</td></tr><tr><td>“Franchising Operations
Regulations”</td><td>商業特許經營管理條例 (Regulations for the Administration
*of Commercial Franchising Operations) promulgated on
6 February 2007 and becoming effective on 1 May 2007</td></tr><tr><td>“Global Offering”</td><td> the Hong Kong Public Offer and the International Placing</td></tr><tr><td>“Group”  or “our Group” or“We”</td><td> our Company and its subsidiaries and, in respect of the
period before our Company became the holding company
of such subsidiaries, the entities which carried on the
business of the present Group at the relevant time</td></tr><tr><td>“Hengxin Air-Conditioner”</td><td>揚州恒信空調銷售有限公司   (Yangzhou    Hengxin
Air-conditioner Sales Co., Ltd*.), a limited liability
company established in the PRC on 27 August 2004 and
a 99% legally owned subsidiary of our Company (which is
100% beneficially owned by our Company)</td></tr><tr><td>“HK$” or “HK dollars”</td><td> Hong Kong dollars, the lawful currency of Hong Kong</td></tr><tr><td>“HK eIPO White Form”</td><td> the application for the Hong Kong Offer Shares to be
issued in the applicant’s own name by submitting
applications online through the designated website of HK
eIPO White Form at www.hkeipo.hk</td></tr><tr><td>“HKFRSs”</td><td> Hong Kong Financial Reporting Standards</td></tr><tr><td>“HKSCC”</td><td> Hong Kong Securities Clearing Company Limited</td></tr><tr><td>“HKSCC Nominees”</td><td> HKSCC Nominees Limited</td></tr><tr><td>“H ong Kong” or“HK”</td><td> the Hong Kong Special Administrative Region of China</td></tr><tr><td>“Hong Kong Offer Shares”</td><td> the 31,980,000 New Shares being initially offered by our
Company for subscription at the Offer Price pursuant to
the Hong Kong Public Offer (subject to adjustment as
described in the section headed “Structure of the Global
Offering” in this prospectus)</td></tr></table>

<table><tr><td>“Hong Kong Public Offer”</td><td> the issue and offer of the Hong Kong Offer Shares to
members of the public in Hong Kong for subscription
(subject to adjustment as described in the section
headed “Structure of the Global Offering” in this
prospectus) for cash at the Offer Price and on the terms
and conditions described in this prospectus and the
related Application Forms</td></tr><tr><td>“Hong Kong Underwriters”</td><td> the underwriters of the Hong Kong Public Offer listed in
the section headed “Underwriting — Hong Kong
Underwriters” in this prospectus</td></tr><tr><td>“Hong Kong Underwriting
Agreement”</td><td>the conditional underwriting agreement dated 11 March
2010 relating to the Hong Kong Public Offer and entered
into between, among others, the Global Coordinator, the
Sponsor, the Hong Kong Underwriters, Mr. Cao and our
Company, as further described in the section headed
“Underwriting — Underwriting arrangements and
expenses — Hong Kong Public Offer”</td></tr><tr><td>“Huaian Huiyin”</td><td>淮安滙銀家電有限公司 (Huaian Huiyin Household
A*ppliances Co., Ltd.), a limited liability company
established in the PRC on 2 March 2009 and a
wholly-owned subsidiary of our Company</td></tr><tr><td>“Huide Electronics”</td><td>揚州滙德電器營銷有限公司 (Yangzhou Huide Electronics
Distributi*on Co., Ltd.), a limited liability company
established in the PRC on 23 October 2006 and a 99%
legally owned subsidiary of our Company (which is 100%
beneficially owned by our Company)</td></tr><tr><td>“Independent Third Parties”</td><td> persons or companies which are independent of and not
connected with any of our Directors, chief executive of
our Company, our Substantial Shareholders and the
directors and shareholders of any other member of our
Group and our respective associates, and “Independent
Third Party” means any of them</td></tr></table>