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 Hisense Kelon Electrical Holdings Company Ltd. (the “Company”) and its subsidiaries (collectively referred as “Hisense Kelon” or the “Group”) are currently one of the largest manufacturers of household electrical appliances manufacturing enterprises in the People’s Republic of China (the “PRC” or “China”).

  Headquartered in Shunde District, Foshan City, Guangdong Province, Hisense Kelon, as one of the first refrigerator manufacturing enterprises , commenced refrigerator production in 1984. The sales volume of Hisense Kelon’s refrigerators and air-conditioners has been among the highest in China for many years. In particular, Hisense Kelon’s refrigerators have embraced the biggest market share for a decade. The “Kelon” and “Ranchmen” brand names are appraised as “The Chinese Well-known marks”.

  The Group adheres to its corporate philosophy of “relying on technology and the talents of its people to build up the Group”, and considers “technology” as the basic motivation for the Group’s development. Leveraging on the superior refrigeration technology and application of high technology on its products, Hisense Kelon’s refrigerators and air-conditioners have won good reputation in the industry and have earned the Group many honors for technology and products at a national level. For example, In 2003, its refrigerator “209S” was awarded the “United Nations Energy Saving Grand Prix”; and the double-efficiency technique of Kelon’s air-conditioners broke the world record of air-conditioner energy-efficiency by achieving a ratio of 7.0 in 2004. The Group has reinforced its quality control based on its strength in technology, and Kelon’s products are highly praised by both consumers and authorities for its reliable and notable advantages in quality. In December 2005, the Company was pleased to be acknowledged as one of the “Top 500 Quality Companies in China” which is one of the most trusted labels by the consumers. The “Kelon” brand air-conditioners and the “Ronshen” brand refrigerators were awarded the “Top 10 Quality Air-Conditioner Brands in China” and the “Top 10 Quality Refrigerator Brands in China”, respectively, and Kelon air-conditioners and Ronshen refrigerators were also ranked first and second, respectively, in the household electrical appliances sector. At the “Appliance World Expo Beijing 2006” held in Beijing, Kelon’s KFR-35GW/S3F and KFR-27GW/S3F air-conditioners and Kelon’s BCD-209S/E and BCD-215YMB refrigerators won the “Super Energy-saving Award”, and Ronshen’s BCD-568WYM refrigerator won the “Industrial Design Excellence Award”. “Ronshen” ’s “Energy Saving Grand Prix” series of refrigerators have been honored with the “United Nations Energy Saving Grand Prix” at a grand award ceremony jointly organized by the United Nations Development Programme, the Global Environmental Protection Fund and the National Environmental Protection Bureau. In 2007, the Company and Pepsi CO. Inc. entered into a strategic partnership. Kelon Air-conditioner’s VC split type air-conditioners and VC cabinet type air-conditioners were formally granted the certificates of the “4th China Industrial Design IF Award”.

  In 2008, the Company entered into a strategic cooperation agreement with Whirlpool, the largest white goods manufacturer in the world, to establish a joint venture company mainly involved in the research and development and manufacture of high-end washing machine and refrigerator products. The three products “FIMS food information management refrigerator”, “Polychromatic photoelectric food preservation refrigerator BCD-288WYM” and “Optimized high-efficiency air duct wall air-conditioner” were confirmed as the Nation’s key products. The Company’s subsidiary, Guangdong Kelon Mould Co., Ltd., was named a key mould enterprise of the PRC. During the two rounds of household appliances rural subsidy program, nearly 40 models of refrigerator, air-conditioner and freezer products of the Company were qualified.

  Amidst the current global economic downturn, the Company strives to enhance its operational efficiency after taken into consideration of the actual situation, and accordingly proposes and plans to implement the operational strategy of “reshaping quality advantages, focusing on market-orientation, strictly controlling operational risks, improving the efficiency per capita, reinforcing quality control, enhancing confidence and passion”. Parallel to this, the Group will continue to leverage on the management advantages and experience of its major shareholder, Hisense, to fully implement its reform measures and procure the healthy and steady development of the Group, which in turn will bring along the maximum benefit to its shareholders.

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