Dear Shareholders,

On behalf of the Board of ANTA Sports Products Limited, I am pleased to present the annual results of the Group for the year ended 31 December 2009 to our Shareholders.

Growth

As a result of the global economic crisis, which has undermined consumer confidence, it was inevitable that China's retail market would suffer. The Chinese government's proactive fiscal policies and economic stimulus measures aimed at spurring domestic consumption have brought a gradual recovery in the domestic market. Riding on these measures, the Group has continued to foster our brand and network strength and to take responsive actions to fully capture the market potential. Thanks to the effective strategy implementation, the Group is pleased to sustain a healthy business growth and deliver a set of impressive financial and operational figures.

During the year, the Group's turnover reached RMB5.87 billion (2008: RMB4.63 billion), representing an increase of approximately 27.0% over that of previous year. The profit attributable to equity shareholders surged 39.8% to RMB1,250.9 million (2008: RMB894.8 million). The free cash inflow increased by 39.9% to RMB1,156.8 million (2008: RMB827.1 million). The basic earnings per share were RMB50.23 cents (2008: RMB35.94 cents). In view of the outstanding performance, the Board proposed to declare a final dividend of HK12 cents and special dividend of HK11 cents per ordinary share (2008: HK10 cents and HK8 cents respectively) which, together with an interim dividend of HK12 cents (2008: HK10 cents) per ordinary share, represent a payout ratio of 61.3% of the profit attributable to equity shareholders for the year.

Breakthroughs

As a leading national sportswear brand with strong sense of belonging, the Group is devoted to supporting the development of sports in China and has continuously made contributions to our country. ANTA Sports was honoured to become the Sportswear Partner of the Chinese Olympic Committee as well as the Official Partner of the Chinese Sports Delegation from 2009 through 2012. The CSD will be wearing ANTA's sportswear in various major international competitions, including the Vancouver 2010 Winter Olympic Games, the Guangzhou 2010 Asian Games and the London 2012 Olympic Games. In order to arouse the awareness in the community, we have rolled out a series of marketing events and promotional campaigns surrounding major competitions. This unique and exclusive sponsorship provides an ideal platform for ANTA Sports to enhance our brand exposure in domestic and international markets, and helps strengthen the desirability of the newly-launched COC licensed products.

As an Official Partner of the CSD, the Group is devoted to providing sportswear of superior quality to Chinese athletes. ANTA Sports was honoured to have been the sportswear sponsor for Olympics medalists and sports elites, who have made great contribution to the Chinese sports development, in the PRC's 60th Anniversary National Day parade. The CSD outfit designs first made their debut at victory ceremonies during the Hanoi 2009 Asian Indoor Games and the Hong Kong 2009 East Asian Games. Winter Olympics gold medalist, Yang Yang, and 9 winter sports elites participating in the Vancouver 2010 Winter Olympic Games, have joined ANTA's endorsement lineup too. Moreover, the Group became the sponsor and sportswear provider for 5 National Water Sports Teams. We believe the continuous collaboration with the COC and outstanding Chinese athletes will greatly help enhance the brand value and future growth.

The Group has added significant sponsorship resources in the core tennis and basketball segments. Kicking off what was to be a successful year of endorsements, we signed up tennis stars Jelena Jankovic and Zheng Jie as our endorsed players. They now play in ANTA professional tennis sportswear in WTA matches and international competitions, thus successfully raising our brand profile and adding credibility to ANTA tennis products. The "Tennis Duo" has headlined our promotional campaigns including the "Dare to be Perfect" TVC and POP series as well as meeting with fans and tennis lovers. These initiatives not only boost the sales of our expanded tennis sportswear series but also promote the popularity of tennis in China.

In order to strengthen our competitiveness in basketball segment, the Group has struck a strategic partnership with the CUBA, a basketball league of 1,200 teams from more than 700 universities in China. The collaboration adds to the Group's existing partnership with the CBA, the leading professional basketball league in the country. ANTA professional basketball gear has made appearance on every match on campus, reaching most of the basketball fans in China. In addition, we have become the partner of CCTV5's renowned weekly basketball infotainment program "HOOPARK". Through sponsoring the CBA, CUBA and "HOOPARK", together with our endorsed NBA and CBA players, the Group has strategically marshalled a comprehensive portfolio of basketball sponsorship resources to help consolidate our leading position in the basketball market.

Expansion

When facing the very challenging market environment, the Group continues to communicate and work closely with our distributors and franchisees to enhance their network management capability so as to boost their confidence in ANTA and network expansion. Moreover, the Group has further strengthened the network management systems to ensure more effective execution of strategies to timely respond to market changes. Following the openings of the 6,000th store and 3 ANTA flagship stores in Xian, Nanjing and Zhengzhou, the number of ANTA stores has reached 6,591 as at 31 December 2009, representing a net increase of 924 ANTA stores during the year. We have strategically expanded our presence in densely populated areas with rapid economic growth to sustain our leading position in second and third tier cities. By fostering the working relationship with the retailers, we are pleased to see a prominent retail performance in terms of strong sales and network growth as well as healthy inventory and discount level.

The Group is not only devoted to optimising the quality and size of ANTA stores, but we also organise various interactive marketing activities from time to time, such as fans gatherings for sponsored players and sports teams at key ANTA stores. Through the perfect integration of quarterly POP and visual merchandising for each ANTA sportswear series, our products are showcased in a vibrant and trendy layout so as to provide our customers a refreshing shopping experience. Meanwhile, ANTA Kids and Sports Lifestyle series stores have been expanding steadily to strengthen the market penetration.

While strengthening ANTA's leading position in the mass market, the Group also explores extending our reach to the high-end sportswear market. On 30 September 2009, the Group completed the acquisition of the 85% of equity interest of Full Prospect and the entire equity interest of Fila Marketing, including the Fila trademarks related to the "FILA" brand in mainland China, Hong Kong and Macau, as well as the Fila business in Hong Kong and Macau. This acquisition represents a good opportunity for the Group to tap the potential of high-end sportswear market as Chinese consumers' taste has become more sophisticated thus drives for better product diversification. By leveraging the Group's strong capabilities on supply chain and network management, we are confident that the Fila business will be another growth driver for the Group.

Consolidation

To enhance our lead in product technology and quality, the Group has stepped up the efforts in boosting our team's R&D and design capabilities and the collaboration with local and international talents. During the year, the Group has launched A-Jelly, a new footwear technology using environmental- friendly material, which possesses excellent anti-compression and shock absorbing capabilities. Thus, it offers greater comfort and protection and has wide application in ANTA tennis and running shoes. Our efforts in R&D have been recognised through the joint accreditation of ANTA Technology Centre by 5 national ministries and commissions, including the National Development and Reform Commission as "National Enterprise Technology Centre", making the Group the first and the only sportswear company to have received the honour.

Global financial crisis brought us challenges and opportunities. The Group has rolled out a five-year strategic planning project to map out a clearer path of development and growth strategy, so as to achieve our long term goals. We also aim to further enhance our operating efficiency. A number of management system optimisation projects have been rolled out, such as improving supply chain management workflow, restructuring internal control system, as well as information system upgrades. The Group has also implemented comprehensive cost and risk control measures to enhance our competitiveness and drive for sustainable business development.

Optimism

China's economy and domestic demand have been recovering desirably since the implementation of stimulus measures. Economic restructuring policies are expected to continue to help spur consumption in urban and rural areas which will benefit the long term development of the consumer goods industry, including the sportswear product industry. The Guangzhou 2010 Asian Games and the government's efforts to promote a healthier lifestyle to the Chinese people have given us confidence in the future of the industry. Leveraging our partnership with the COC, the Group will be able to further enhance the brand equity and loyalty through the integration of advertising and sponsorship resources. Looking ahead, the consolidation of China's sportswear market is likely to accelerate to the advantage of players with strong fundamentals. We will continue to reinforce our competitive advantages so as to create greater shareholder value.

On behalf of the Board, I would like to express my heartfelt gratitude to our shareholders, customers and business partners for their continued support. My thanks also go to the board members, management and all of our staff for their dedication and hard work.

Ding Shizhong
Chairman
Hong Kong, 24 February 2010