Major Shareholder:

• Mr. Yeung Kui Wong ¡V 71.0% interest

Company Subsidiaries:

• Tiacho (HK) (100%): Investment holding and manufacturing and trading of household electrical appliances
• Housely (HK) (100%): Investment holding and manufacturing and trading of household electrical appliances
• DGKL (100%) : Manufacturing of household electrical appliances
• GEHK(100%): (Trading of small household electrical appliances and other electrical products
• Rockcastle Assets (100%): Holding of a trademark

The Group is principally engaged in the design, manufacture, and sale of household electrical appliances, such as electric fans, convector heaters, fan heaters, air cleaners, ovens, vacuum cleaners, and other electrical products, such as scooters and motors. These products are mainly sold to overseas trading companies and retailers under the customers' brand names or under the Group's brand name, ¡§REGENT¡¨.

The major market for the Group's products is Europe, which accounted for approximately 62%, 59%, and 48% of the Group's turnover for each of the three years ended April 30, 2002, respectively. The Group also distributes its products to Asia (excluding the PRC), North America, South America, the PRC, Australia, New Zealand, and other countries. The PRC is currently the second largest market for the Group's products, which accounted for approximately 5%, 6%, and 23% of the Group's turnover for each of the three years ended April 30, 2002, respectively.

The Group's current production plants are located in Changping Town, Dongguan City, Guangdong Province with a total gross floor area of approximately 55,645 sq. m. As at the Latest Practicable Date, the Group employed approximately 1,035 full-time workers stationed in the PRC for its production operation.

The Group has consistently put great emphasis on the quality of products and was certified for the ISO 9002 accreditation in November 1997 from TuV Anlagentechnik GmbH for establishing and maintaining a qualified system for the manufacture of electric fans, convector heaters, and fan heaters. Recently, the Group was certified for the ISO 9001 for establishing and applying a quality management system for the design and manufacture of electric fans and oil-filled radiators, and the manufacture of fan heaters and convector heaters.

The Directors believe that the Group has the following competitive advantages:

• Its accumulated expertise in the design, production, and sale of household electrical appliances
• Its effective control over the production process as a result of the technical know-how possessed by the Group
• Its continual efforts of research and development, resulting in innovative product designs, protection of which is sought by applying for registered designs in various countries
• The vertically integrated production process which comprises production facilities and labour for the manufacture of various basic components, such as motors and switches, in order to capture additional production premium as compared with those manufacturers who have to source basic components from other suppliers
• Its dedication to safety, product variety, cost control, and environmental-impact control
• Its goodwill in the household electrical appliances industry and customers' loyalty
• Its strict compliance with ISO 9002, ISO 9001, and other safety requirement quality assurance standards
• Its well-established relationship with its suppliers and customers, most of whom have established business relationships with the Group for over four years

• Reliance on major customers;
• Reliance on major suppliers;
• Non-inclusion of a profit forecast for the year ending 30th April 2003;
• Credit risks;
• Concentration on a single product category;
• Product liability;

The Group's production facilities have a monthly production capacity of approximately 500,000 units of products, and are currently operating at about 80% of its full capacity. The Directors believe that such capacity constraint would limit the Group's future expansion. As a result, the Group intends to expand the production capacity of its production facilities by 50% through the acquisition of additional equipment and machinery. With the expanded production capacity, the Directors anticipate that the Group will be in a better position to increase its market share in the designated markets.

To maintain its competitive edge, the Group will strive to enhance its products through investment in research and development. The Group will continue to make an effort to enhance its existing production process and methods to provide cost efficient and high quality products for its customers. The Group also emphasises the improvement of the production processes and methods to achieve lower production cost with higher efficiency. The Directors believe that a proactive development strategy on the Group's products and the relevant production processes and methods will enhance the Group's profitability.

In order to further expand its market share in overseas markets and to maintain a closer relationship with its customers, the Group will continue to: (1.) strengthen product promotion through participation in trade fairs and exhibitions, advertising, and carrying out marketing campaigns; (2.) expand the sales and marketing divisions; and (3.) set up regional sales and promotional offices to promote the Group's own brands of products.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$43.0 million (based on the offer price HK$0.80 per share). The Group at present intends to apply the net proceeds as follows: