Peak Sport Products : Joint Announcement Proposed Privatisation of Peak Sport Products Co., Limited by the Offeror by Way of A Scheme of Arrangement (under Section 86 of the Companies Law) Despatch of Scheme Document

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement appears for information purposes only and is not intended to and does not constitute, or form part of, any offer to acquire, purchase and subscribe for or an invitation to acquire, purchase or subscribe for any securities of the Offeror or the Company nor is it a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities of the Offeror or the Company in any jurisdiction in contravention of applicable law.

XU'S SPORT COMPANY LIMITED

許氏體育有限公司

(Incorporated in Hong Kong with limited liability)

PEAK SPORT PRODUCTS CO., LIMITED

匹克體育用品有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1968) JOINT ANNOUNCEMENT PROPOSED PRIVATISATION OF PEAK SPORT PRODUCTS CO., LIMITED BY THE OFFEROR BY WAY OF A SCHEME OF ARRANGEMENT (UNDER SECTION 86 OF THE COMPANIES LAW) DESPATCH OF SCHEME DOCUMENT

DESPATCH OF SCHEME DOCUMENT

The Scheme Document together with the respective notices of the Court Meeting and EGM to be held on Wednesday, 19 October 2016 and the relevant proxy forms have been despatched to Shareholders on Friday, 23 September 2016.

RECOMMENDATIONS OF THE INDEPENDENT BOARD COMMITTEE

The Scheme Document contains, among other things, a letter from Gram Capital Limited, the Independent Financial Adviser, giving its advice to the Independent Board Committee in relation to the Proposal, the Scheme and the Option Offer, and a letter from the Independent Board Committee containing its recommendations to the Independent Shareholders and Optionholders in respect of the Proposal, the Scheme and the Option Offer. Scheme Shareholders and Optionholders are urged to read and consider carefully the recommendations of the

Independent Board Committee and the advice of the Independent Financial Adviser, in relation to the Proposal, the Scheme and the Option Offer set out in the letter from the Independent Board Committee and the letter from the Independent Financial Adviser, respectively.

CLOSURE OF REGISTER OF MEMBERS

For the purpose of determining the entitlements of Scheme Shareholders to attend and vote at the Court Meeting and Shareholders to attend and vote at the EGM, the register of members of the Company will be closed from Friday, 14 October 2016 to Wednesday, 19 October 2016 (both days inclusive) and during such period, no transfer of Shares will be effected.

CONDITIONS OF THE PROPOSAL AND THE SCHEME

Shareholders and/or potential investors should be aware that the implementation of the Proposal, the Scheme or the Option Offer is subject to the Conditions as detailed in the Scheme Document being fulfilled or waived, as applicable, and thus the Proposal may or may not be implemented and the Scheme may or may not become effective. Assuming that all the Conditions are fulfilled or waived (as applicable), it is expected that the Scheme will become effective on or before Monday, 31 October 2016 (Cayman Islands time). Details of the Conditions are set out in the Scheme Document.

All the Conditions will have to be fulfilled or waived, as applicable, on or before 28 February 2017 (or such later date as the Offeror and the Company may agree or, to the extent applicable, as the Executive may consent and the Grand Court may direct), failing which the Scheme and the Proposal will lapse. Further announcements on any changes regarding the timetable of the Scheme and the Proposal will be made as and when necessary.

Shareholders and potential investors should exercise caution when dealing in the Shares and any options or other rights in respect of them. Persons who are in doubt as to the action they should take should consult their licensed securities dealer or registered institution in securities, bank manager, solicitor or other professional advisers. INTRODUCTION

References are made to (i) the joint announcement dated 26 July 2016 jointly issued by Peak Sport Products Co., Limited (the "Company") and Xu's Sport Company Limited (the "Offeror") in relation to the proposal for the privatisation of the Company by way of a scheme of arrangement under section 86 of the Companies Law of the Cayman Islands; and (ii) the joint announcement dated 15 August 2016 jointly issued by the Company and the Offeror in relation to the extension of time for the despatch of the scheme document of the Company and the Offeror (the "Scheme Document").

Unless otherwise defined, terms used herein shall have the same meaning as those defined in the Scheme Document.

DESPATCH OF SCHEME DOCUMENT

The Scheme Document together with the respective notices of the Court Meeting and EGM of the Company to be held on Wednesday, 19 October 2016 and the relevant proxy forms have been despatched to Shareholders on Friday, 23 September 2016.

The Scheme Document contains, among other things, further details of the Proposal, the Scheme and the Option Offer, the expected timetable, the explanatory statement of the Scheme as required under the Companies Law, general information regarding the Company and the Offeror, the letters from the Board, the Independent Board Committee and the Independent Financial Adviser, notice of the Court Meeting and notice of the EGM.

RECOMMENDATIONS OF THE INDEPENDENT BOARD COMMITTEE

An Independent Board Committee, which comprises all the independent non-executive directors of the Company, namely Dr. Xiang Bing, Mr. Feng Lisheng and Mr. Zhu Haibin, has been established by the Board to make a recommendation to the Independent Shareholders as to whether the terms of the Proposal and the Scheme are, or are not, fair and reasonable and as to voting, and to the Optionholders as to its views on acceptance of the Option Offer. The Scheme Document contains, among other things, a letter from the Independent Board Committee containing its recommendations to the Independent Shareholders and Optionholders in respect of the Proposal, the Scheme and the Option Offer.

Gram Capital Limited has been appointed as the Independent Financial Adviser (with the approval of the Independent Board Committee) to advise the Independent Board Committee in connection with the Proposal, the Scheme and the Option Offer. The Scheme Document contains, among other things, a letter from the Independent Financial Adviser giving its advice to the Independent Board Committee in relation to the Proposal, the Scheme and the Option Offer.

Scheme Shareholders and Optionholders are urged to read and consider carefully the recommendations of the Independent Board Committee and the advice of the Independent Financial Adviser in relation to the Proposal, the Scheme and the Option Offer set out in the letter from the Independent Board Committee and the letter from the Independent Financial Adviser, respectively.

COURT MEETING AND EGM

The Court Meeting and the EGM are scheduled to be held at 3: 00 p.m. and 3: 20 p.m. (or so soon thereafter as the Court Meeting convened for the same day and place shall have been concluded or adjourned), respectively, on Wednesday, 19 October 2016 at Rooms 1 & 2, United Conference Centre, 10/F, United Centre, 95 Queensway, Hong Kong. Notices of these meetings are set out in the Scheme Document.

In accordance with the directions of the Grand Court, the Court Meeting will be held for the purpose of considering and, if thought fit, passing a resolution to approve the Scheme (with or without modifications). The EGM will be held for the purpose of considering and if thought fit passing (i) the special resolution by Shareholders to approve and give effect to the reduction of the share capital of the Company by cancelling and extinguishing the Scheme Shares; and (ii) the ordinary resolution by Shareholders to immediately thereafter increase the issued share capital of the Company to the amount prior to the cancellation of the Scheme Shares and apply the reserve created as a result of the aforesaid cancellation of the Scheme Shares to pay up on full at par such number of new Shares as is equal to the number of Scheme Shares cancelled as a result of the Scheme, credited as fully paid, for issuance to the Offeror.

An announcement will be made by the Company and the Offeror in relation to the results of the Court Meeting and the EGM in accordance with Rule 19.1 of the Takeovers Code to the extent applicable. Information on the number of votes cast in favour of the Scheme and the number of CCASS Participants on whose instructions they are cast and the number of votes cast against the Scheme and the number of CCASS Participants on whose instructions they are cast will be included in such announcement.

CLOSURE OF REGISTER OF MEMBERS

For the purpose of determining the entitlements of Scheme Shareholders to attend and vote at the Court Meeting and Shareholders to attend and vote at the EGM, the register of members of the Company will be closed from Friday, 14 October 2016 to Wednesday, 19 October 2016 (both days inclusive) and during such period, no transfer of Shares will be registered. In order to be entitled to attend and vote at the Court Meeting and the EGM, all transfers accompanied by the relevant share certificates must be lodged with the Hong Kong share registrar of the Company, Tricor Investor Services Limited, at Level 22, Hopewell Centre, 183 Queen's Road East, Hong Kong no later than 4:30 p.m. on Thursday, 13 October 2016.

CONDITIONS OF THE PROPOSAL AND THE SCHEME

Shareholders and/or potential investors should be aware that the implementation of the Proposal, the Scheme or the Option Offer is subject to the Conditions as detailed in the Scheme Document being fulfilled or waived, as applicable, and thus the Proposal may or may not be implemented and the Scheme may or may not become effective. Assuming that all Conditions are fulfilled or waived (as applicable), it is expected that the Scheme will become effective on or before Monday, 31 October 2016 (Cayman Islands time). Details of the Conditions are set out in the Scheme Document.

All the Conditions will have to be fulfilled or waived, as applicable, on or before 28 February 2017 (or such later date as the Offeror and the Company may agree or, to the extent applicable, as the Executive may consent and the Grand Court may direct), failing which the Scheme and the Proposal will lapse. Further announcements on any changes regarding the timetable of the Scheme and the Proposal will be made as and when necessary.