China Hongxing

NEWS RELEASE

CHINA HONGXING REGISTERS NET PROFIT SURGE OF 136.7% IN 3Q FY2007 TO RMB90.9 MILLION

* Turnover rose 59.2% to RMB478.5 million as a result of higher product sales across the board underpinned by successful advertising and promotion efforts

* Gross profit margin improved from 38.6% in 3Q FY2006 to 43.8% in 3Q FY2007
on the back of higher selling prices, changes in product mix and greater economies of scale

* Net profit climbed 136.7% to RMB90.9 million lifted by higher turnover

Singapore, 14 November 2007 – China Hongxing Sports Limited

China Hongxing, one of the leading sporting goods companies in the PRC, today reported commendable results for the quarter ended 30 September, 2007 (“3Q FY2007”).

Group turnover soared 59.2% from RMB300.6 million in 3Q FY2006 to RMB478.5 million in 3Q FY2007, while net profit surged 136.7% to RMB90.9 million over the same period. Driven by its sustained efforts in advertising and promotion activities in boosting the Erke brand image and its relentless efforts to augment its presence in the PRC through accelerating sales network expansion rate, the Group continued to achieve an outstanding set of results this quarter. The results reflect a strong appetite for its products across the PRC that has underpinned higher prices and strong sales volumes.