Major Shareholder:

• Chan's Trustee fund - 70.0% interest

Company Subsidiaries:

• BEP (HK) (100%): Design, manufacture and sale of home electrical appliances
• BEP (China) (100%): Manufacture of home electrical appliances

The Group is principally engaged in the design, manufacture, and sale of home electrical appliances, including kettles, irons, heaters, and coffee grinders. Most of the Group's products are sold to Europe, Asia and the Middle East, Australia and New Zealand, and North America, which accounted for 65.1%, 4/1%, 8.1%, and 19.7%, respectively, of the Group's total turnover for the year ended March 31, 2002, and 59.6%, 3.7%, 13.7%, and 21.7%, respectively, of the Group's total turnover for the six months ended September 30, 2002.

For the year ended March 31, 2002, sales generated from the manufacture and sale of kettles, irons, and heaters accounted for approximately 53.7%, 40.1%, and 2.8%, respectively, of the Group's total turnover, and 57.6%, 35.8%, and 4.8% of the Group's total turnover for the six months ended September 30, 2002.

The production facilities of the Group are located in Huang Ma Bu Village, Xi Xiang, Bao An, Shenzhen. The Group also maintains an office in Fo Tan, Hong Kong. The Group also subcontracts part of its production process to various Hong Kong-based manufacturers with production facilities in the PRC.

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

• The Group's ability to design and provide a broad range of high-quality home electrical appliances that meet customers' demands
• The Group's well-established relationship with its customers and suppliers
• The extensive experience of the Group's management team in the business of manufacture and sale of home electrical appliances and its in-depth knowledge in the international home electrical appliances market, which enhances the ability of the Group to identify and satisfy customers' changing needs and demands

• Reliance on key management personnel;
• Reliance on major customers;
• Profit forecasts for the year ending 31^st March 2003 not included;
• Product liability claims;
• Seasonal fluctuation;
• Property leased by the Group in Hong Kong;

In view of the growth in demand for the Group's products, especially from the North American market, the Directors plan to increase the Group's production capability by acquiring additional machinery and strengthening its marketing and product development team. The Group's sales of home electrical appliances to Australia, New Zealand, and Europe also showed remarkable growth for the year ended March 31, 2002, and the six months ended September 30, 2002. The Directors believe that the demand for these stylish and quality products manufactured by the Group will continue to grow as customers in Western countries place more emphasis on the colour, material, and design of home electrical appliances and are willing to pay a premium for quality products.

The Directors believe that strong products development capabilities are crucial to the success of the Group, as they enable the Group to target quality ODM customers through the launch of competitive new models and products that meet customers' changing needs. The Group plans to allocate more resources to develop its product development team in order to strengthen the Group's product development capability and expand the range of product models and lines.

The Directors also believe that the sales of cordless kettles with metallic finish will experience strong growth in the coming year. This is evidenced by the fact that the Group's sales of kettles increased from approximately $98 million for the year ended March 31, 2000, to approximately $174 million for the year ended March 31, 2002 (of which approximately 10.0% and 39.8% were attributable to the sale of cordless kettles with metallic finish for the year ended March 31, 2000 and for the year ended March 30, 2002, respectively), representing an average annual growth rate of approximately 33.6%.

The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$22.7 million (based on the offer price HK$0.7 per share). The Group at present intends to apply the net proceeds as follows: