Peak Sport Products Co., Limited (1968.HK)2010 Interim Results

26 August 2010

11

DisclaimerDisclaimer

The presentation is prepared by Peak Sport Products Co., Ltd (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects.

This presentation contains forward-looking statements which are subject to market risks and uncertainties. This forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Among other things, Peak's expectations with respect the footwear and apparel and other related businesses above contain forward-looking statements. Such statements involve certain risks and uncertainties that could differ materially from what we have discussed today to those in the forward-looking statements. In addition, any projections about Peak's future performance represent management's estimates as of today August 26, 2010. Peak Sport Products Co. Ltd does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise.

22

AgendaAgenda

Financial Review3

Business Operation12

Future Strategies21

Open Forum25

Financial Review

44

Results Highlights Key indicators Results Highlights Key indicators

(RMB million) 1H 2010 1H 2009 Change

Turnover 1,808.6 1,357.3 + 33.3 %

Gross profit 681.2 516.7 + 31.8 %

Operating profit 421.0 305.2 + 38.0 %

Net profit 346.6 267.4 + 29.6 %

Gross profit margin 37.7 % 38.1 % (0.4 pts)

Operating profit margin 23.3 % 22.5 % + 0.8 pts

Net profit margin 19.2 % 19.7 % (0.5 pts)

Basic earnings per share (RMB cents) 16.52 16.82 (1.8 %)

Diluted earnings per share (RMB cents) 16.51 16.82 (1.8 %)

Dividend per share (HK cents) 7.00 N/A N/A

Dividend payout ratio 37% N/A N/A

55

Results Highlights Key indicators Results Highlights Key indicators

Current ratio 6.7 8.4

Gearing ratio (1) 0.0 % 0.0 %

Net asset value per share (RMB) 1.49 1.43

(1) The calculation of gearing ratio is based on the total bank loans divided by equity.

(2) Average inventory turnover days is equal to the average of the opening and closing inventory divided by costs of sales and multiplied by the number of days during the period/ year.

(3) Average trade and bills receivable turnover days is equal to the average of the opening and closing trade and bills receivable divided by turnover and multiplied by the number of days during the period/ year.

(4) Average trade and bills payable turnover days is equal to the average of the opening and closing trade and bills payable divided by costs ofsales and multiplied by the number of days during the period/ year.

Avg inventory turnover days (days) (2) 40 36

Avg trade and bills receivable turnover days (days) (3) 74 70

Avg trade and bills payable turnover days (days) (4) 46 42

30 June 2010 31 Dec 2009

66

Results Highlights Turnover by market segments Results Highlights Turnover by market segments

China89.3%

Overseas10.7%

Asia Europe S. America Africa N. America Australia Total1H2010 3.9% 3.4% 1.8% 0.7% 0.5% 0.4% 10.7%1H2009 2.6% 4.5% 1.4% 0.5% 0.4% 0% 9.4%

Overseas market analysis by turnover in %

Market segments Market segments analysis

1H 2010(1H 2009: 90.6%)

(1H 2009: 9.4%)

(RMB in millions)

127.1 194.1

1H2009

1,230.2

1,614.5

China Overseas

31.2%

52.7%

1H2010 1H2009 1H2010

77

Results Highlights Turnover analysis Results Highlights Turnover analysis

RMB(million)

% ofturnover

RMB(million)

% ofturnover

Change(%)

Footwear 828.7 45.8 624.6 46.0 + 32.7

Apparel 941.5 52.1 701.4 51.7 + 34.2

Accessories 38.4 2.1 31.3 2.3 + 22.7

Total Turnover 1,808.6 100.0 1,357.3 100.0 + 33.3

1H 2010 1H 2009

Footwear 45.8%

Apparel 52.1%

Accessories 2.1%

1H 2010

2007 2008 2009 1H2009 1H2010

1,015

2,042

3,095

1,3571,809

33%

(RMB in millions)

Turnover by product category

Turnover growth Percentage of turnover

88

Results Highlights Sales volume, Average unit selling price Results Highlights Sales volume, Average unit selling price

Revenue (RMB million) 828.7 624.6 + 32.7 %

Volume (million) 10.3 7.6 + 35.5 %

ASP at distribution level (RMB) 80.5 82.2 (2.1 %)

Footwear 1H 2010 1H 2009 Change %

Revenue (RMB million) 941.5 701.4 + 34.2 %

Volume (million) 21.7 16.5 + 31.5 %

ASP at distribution level (RMB) 43.4 42.5 + 2.1 %

Apparel

31.8%CAGR: 94.7 %

516.7

681.2

306.0

667.8

37.7%38.1%32.7%

30.2%

37.5%

0

200

400

600

800

10%20%30%40%50%60%70%80%

99

Results Highlights Gross profit & Gross profit margin Results Highlights Gross profit & Gross profit margin

30.0%33.0%

37.2% 38.4% 37.6%

2007 2008 2009 1H2009 1H2010

30.3% 32.1%37.8% 37.7% 37.8%

2007 2008 2009 1H2009 1H2010

Footwear – Gross profit margin Apparel – Gross profit margin

0

10

20

30

40

0

10

20

30

40

Overall Gross profit(RMB in millions)

Gross profit margin

1,159.7

2007 2008 2009 1H2009 1H2010Gross profit margin (0.4% pts)

CAGR: 94.5%CAGR: 101.1 %

Results Highlights Profitability Results Highlights Profitability

1010

305.2421.0

177.4

717.7

417.6

23.3%22.5%20.4%17.5%23.2%

0

200

400

600

800

10%20%30%40%50%60%70%80%

Operating profit

346.6267.4

166.0

376.0

628.319.2%19.7%

16.4%18.4% 20.3%

0

200

400

600

800

0%

5%10%

15%

20%25%

30%

Net profit

Net profit margin

2007 2008 2009 1H2009 1H2010

(RMB in millions)

Operating profit margin 0.8% pts Net profit margin (0.5% pts)

(RMB in millions)

2007 2008 2009 1H2009 1H2010

Operating profit margin

38.0 % 29.6 %

1111

Results Highlights Cash flow Results Highlights Cash flow

1000

1500

2000

2500

Cash & bank deposits Net operating cash inflow

488.6

1,988.2

807.0

2,174.1

2008 2009 1H 2009 1H 2010 2008 2009 1H 2009 1H 2010

284.3 268.9

27.5

470.6

0

500

0

100

200

300

400

500

(RMB in millions) (RMB in millions)

Business Operation

1313

Multi-level cooperation with the NBA, the world’s most recognized basketball league

Stadium

NBA Players

Official Marketing Partner of the NBA in China Rights and license to use the NBA logo on advertisement of the Peak brand

Right to display signage in home stadiums of the Houston Rockets and New Jersey Nets The Houston Rockets are the most broadcast NBA team on CCTV.

Endorsed NBA players are required to wear Peak athletic footwear during trainings,tournaments and media conferences

12 endorsed NBA players (as at 30 Jun 2010)

League

Battier Artest Kidd Landry

Association with top renowned basketball promotion partners

Effective Marketing and Brand BuildingEffective Marketing and Brand Building

1414

Effective Marketing and Brand BuildingEffective Marketing and Brand Building

Other sports promotion partners

1515

New EndorsementNew Endorsement

Women’s Tennis Association (WTA)

Olga Govortsova

New Endorsed Athlete

Official footwear andapparel partner of the WTA tour

1616

Extensive Nationwide Distribution NetworkExtensive Nationwide Distribution Network

Total numbers of outlets 6,796 6,206 + 9.5 %

Number of flagship stores 15 12 + 25.0 %

Basketball specialty retail outlets 28 N/A N/A

Total gross sales floor area (sq. m) 503,098 453,038 + 11.0 %

Average sales floor area (sq. m) 74 73 + 1.4 %

30 June 2010 31 Dec 2009 Change %

Numbers of authorized retail outlets Retail outlets analysis

1H 2010

1st tier 5%

2nd tier 21%

2007 2008 2009 1H 20100

2000

4000

6000

3661

5179

6206 6796

Retail outlets increased by 590 in the 1H 2010

3rd tier 74%

(By types of cities)

1717

Authorized Retail OutletsAuthorized Retail Outlets

PEAK authorized retail outlets

PEAK basketball specialty retail outlets

In-house design team continues to improve PEAK’s

retail outlet image

Continues to explore innovative image

1818

Distribution Business ModelDistribution Business Model

Peak

Distributors

3rd party retailoutlet operators

Retail outlets

Consumers

Peak distribution business model 2010 Sales fair order book

Q1 30% ▲ 17 June 2009

Q2 35% ▲ 16 Sept 2009

Q3 34% ▲ 8 Jan 2010

Q4 31% ▲ 18 May 2010

36 distributors

3 sales fairs / year

Impressive growth

1919

Production Facilities & CapabilitiesProduction Facilities & Capabilities

1H2010 Production facilities

Outsourced 64.6%

Self-produced 35.4%

1H2010(FY2009: 60.9%)

(FY2009: 39.1%)

Outsourced 77.4%

Self-produced 22.6%

1H2010(FY2009: 80.4%)

(FY2009: 19.6%)

Footwear Apparel

Fengze (Fujian Province) 1.8 m pairs 1.2 m pieces

Shang’gao (Jiangxi Province) 1.9 m pairs --

Hui’an (Fujian Province) -- 3.9 m pieces

Self-production 3.7 m pairs 5.1 m pieces

Total actual production volume 10.5 m pairs 22.8 m pieces

Footwear Apparel

2020

Strong Market Research and Product R&D CapabilitiesStrong Market Research and Product R&D Capabilities

Strong R&D capabilities

Employed more than 200 research and design professionals

Introduced approximately 434 new footwear styles, 669 new apparel products and 343 new accessory products in the first half of 2010

Enhance products’ quality and functionality

- PK-Rocket “Cushion-3” system (PK Rocket三級減震技術技術)

- Strong ventilation (高強透氣性)

- Anti-skidding ripples (抓地水波紋 )

- Support and easy flexing capabilities (支撐性及易彎折的高端性能 )

Battier Kidd Artest Pietrus Landry

Latest basketball shoes for endorsed NBA players

Future Strategies

2222

Future StrategiesFuture Strategies

Market outlook

Continue to emphasize on international & professional brand image

Continued urbanization generates new and tremendous demands for sport

products in tier 2 & 3 cities

Change in life-style of general public results in more people participating in

sports which further increase consumption of sport products

Brand positioning

Product categories expansion

Leverage our highly recognizable basketball footwear brand to further penetrate into other sports categories, such as tennis, soccer, running

2323

Future StrategiesFuture Strategies

Target 1,000 more retail outlets in 2010 Launch more basketball specialty retail outlets Increase size of retail outlets to avg. 80 sq.m Continue to focus on tier 2 & 3 city markets

Adequately increase advertising & promotion expenditure, further enhance brand image Actively organize more promotional activities, such as NBA Star China Tour Continuously cooperate & sponsor NBA, FIBA and other sports events

Sales network expansion

Marketing & brand promotion

R & D

Complete setting up a design team in the U.S.A. to spur new product development

2424

Future StrategiesFuture Strategies

Invest approximately RMB100 million for the two production facilities -- Shang’gao & Hui’an

Production capacity enhancement

Footwear production capacity Apparel production capacity

1H 2010 1H 2010Capacity increase

(10-13)

2013 Capacity increase

2012

(10-12)

8.7

7.0

15.7

9.6

9.1

18.7

5

0

10

15

5

0

10

15

(pairs million) (pieces million)

Capacity expansion plan

Open Forum

Thank You www.peaksport.com