GOME Electrical Appliances Holding Limited, through its subsidiaries, is engaged in the operation and management of networks of electrical appliances and consumer electronic products retail stores in the People鈥檚 Republic of China. The Company鈥檚 revenue is derived from business activities in Mainland China. As of December 31, 2010, its total number of stores were 826. As of December 31, 2010, it had 102 flagship stores, 700 standard stores and 24 specialized stores. During the year ended December 31, 2010, it closed 39 stores and opened 139 new stores. Its products include audiovisual products, air conditioners, refrigerators and washing machines, telecommunication products, small white appliances, information technology and digital products. During 2010, it launched services, such as short messaging service (SMS), a World Expo hotline, automatically triggered mail for manufacturers鈥?requests, and very important person (VIP) Yi-Jian-Tong services.

Gome is the largest specialty retailer of consumer electronics in China, with about 859 stores covering 205 cities. Gome sells audio and video equipment, home appliances, mobile phones, and computers. The company operates electronic stores under the brands Gome, China Paradise, CellStar, and other regional brands in China. In 2008, about 62.5% of stores were located in Tier 1 cities (Shanghai, Beijing, Guangzhou, and Shenzhen), which generated about 46% of sales.