Microsoft Word - E.announce.20150408

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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) RECENT OPERATIONAL UPDATE ON BUSINESS IN CHINA

This announcement is made on a voluntary basis by the board of directors (the "Board") of Peak Sport Products Co., Limited (the "Company", together with its subsidiaries, the "Group").
The Board would like to announce the following operational update on the Group's business in China:

Orders for the fourth quarter of 2015

The Group held its sales fair for the fourth quarter of 2015 in March 2015. The total amount of sales fair orders for the fourth quarter of 2015 at wholesale prices recorded a mid-teens growth when compared to that of the same quarter in 2014. We are pleased to see a favorable product mix change towards footwear during the period, thanks to our ongoing efforts to increase professionalism and functionality of our brand and products. By category, we see strong sales momentum in running products driven by increasing popularity of the sport and rising demand for the professional gear.
Set out below is an analysis of the order growth by value and growth in average selling prices at wholesale level ("ASP") by major product categories of the Group for the sales fair for the fourth quarter of 2015 when compared to those for the same quarter in 2014:

Product category

Footwear

Apparel

Order growth by value (%)

Mid-forties

Negative low single-digit

ASP growth (%)

Mid single-digit

Flat

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Same store sales for the first quarter of 2015

The same store sales, in terms of revenue at retail level, for certain retail outlets of the Group for the first quarter ended 31 March 2015 recorded a mid single-digit growth when compared to that for the same quarter in 2014. Our focus on professional sportswear helps us achieve better sell-through, and therefore, a healthy inventory level.

Retail outlets at the end of the first quarter of 2015

As at 31 March 2015, the total number of authorized retail outlets of the Group in China amounted to 6,004 (31 December 2014: 6,004). All these retail outlets are owned and managed by independent distributors or retail outlet operators.

The Company's shareholders and potential investors should note that the above announcement is made based on unaudited operational data of the Group and this data has not been audited or reviewed by the Company's auditors. The Company's shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Peak Sport Products Co., Limited Xu Jingnan

Chairman

Hong Kong, 8 April 2015

As at the date of this announcement, the Board comprises three executive directors, namely Mr Xu Jingnan, Mr Xu Zhihua and Mr Xu Zhida; one non-executive director, namely Ms Wu Tigao; and three independent non-executive directors, namely Dr Xiang Bing, Mr Wang Mingquan and Mr Feng Lisheng.

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