Shoe Enterprises Anta'S Turnover Increased 200% In The First Half Year.

Anta Sports Products Limited is pleased to announce the unaudited consolidated mid-term performance of the company and its Affiliated Companies ("group") for the six months ended June 30, 2007 (the "reporting period").

During the reporting period, the group's turnover was 1497700000 yuan, an increase of 203.1% over the same period last year.

The profit attributable to shareholders is RMB 203300000 yuan, with a growth rate of 284.3%.

The basic earnings per share were RMB 11.3.

Gross margin rose 8.9 percentage points to 33.5 percentage points, net interest rate rose 2.9 percentage points to 13.6 percentage points.

Ding Shizhong, chief executive of Anta sports, recalling the results of the reporting period, said: "2007 was an excellent year for Anta's sports performance. The group was successfully listed on the Hongkong stock exchange in July 10th this year, and the global sale proceeds amounted to HK $3643200000, indicating that investors have confidence in the Chinese sports consumer goods market and Anta sports.

The performance of the group in the first half of 2007 has surpassed its annual performance in 2006. It also reflects the popularity of Anta sports brand, a wide range of new products, notable results in the expansion of the national distribution network, and rapid response to changes in market demand.

During the reporting period, the group continued to consolidate the coverage channels of the two or three line market, and strengthened the retail network construction. The group's Anta brand grew by 130 retail outlets, and through 39 distributors throughout the country managed and operated 4238 Anta brand franchise retail outlets.

Anta's authorized retail outlet will be increased to 4500 during the year, and Anta's authorized retail outlets will be optimized by about 1000.

According to the turnover of product categories, Anta brand footwear, clothing and accessories wholesale business recorded a total of HK $761900000, HK $636200000 and HK $49600000, up 131.9%, 320.2% and 246.9%, respectively.

The sales of Anta brand increased by 192.9% during the period. The reason for the high growth is that the group pfers personal and department store business to the distributor management. The group will focus more on brand building, product category, distribution channel planning and supply chain management.

During the reporting period, the international brand sporting goods retail business was set up in six cities in Beijing, Shanghai, Suzhou, Xiamen, Guangzhou and Harbin to develop and manage retail business channels.

As of June 30, 2007, the Group operates and manages 42 retail outlets selling Adidas brand products, 24 retail outlets selling Reebok brand products and 12 retail outlets selling kappa brand products.

The group plans to open a number of self operated retail sports cities in the second half of the year to sell different brands of sporting goods, which is believed to bring new sources of income to the group and strengthen the business integration of the group.

Looking ahead, Mr. Ding Shizhong said: "the group will continue to develop distribution channels, and plan to open flagship stores and retail sports cities in the second half of 2007. In addition, it will continue to invest more in brand and R & D, continue to expand production capacity and strengthen supply chain management to respond quickly to the market."

Mr. Ding Shizhong concluded that "with the sustained and rapid growth of China's economy, the consumer goods market will continue to thrive, and then there will be great events such as the 2010 Shanghai World Expo, the 2010 Asian Games in Beijing and the Guangzhou World University Summer Games in 2011, after the 2008 Olympic Games. The Group believes that the booming Chinese sporting goods market will continue to promote the growth of Anta sports business, and the group will also strive to get an ideal return for shareholders."