Peak Sport Group sales plunge 37.5% in 2012

Peak sponsored seven Olympic Teams at the 2012 London Summer Olympic Games, and as at the end of 2012, the Group was a sponsor of 15 National Basketball Association (NBA) players, three NBA teams and nine national basketball teams in nine countries. In early 2013, we signed an endorsement contract with Tony Parker, the top NBA player of San Antonio Spurs.

In addition, Peak also signed 15 Women’s Tennis Association (WTA) players to become spokeswoman for the Group during 2012. In the future, the Group will continue its cooperation with the NBA, the Fédération Internationale de Basketball (FIBA), the

WTA and other well-known global sports organizations. While basketball will remain a core focus, the Group will also continue to raise its profile in other sports, including running, tennis and football, in order to further build the brand. In addition, the Group will proactively integrate its international resources to expand its presence and promote its brand overseas.

In the coming year, Peak intends to invest RMB150 million on expanding its production facilities. The Group believes that by expanding its own production capacity, it will be able to gain better control over its manufacturing process and greater bargaining power against contract manufacturers, while helping the Group to react much faster to changes in the market.

Mr. Xu Zhihua, CEO and Executive Director of Peak, commented, “We remain optimistic about the future of the sportswear industry in China, despite all of the headwinds. I believe the sportswear industry will benefit from an increase in per capita spending on sports products as a result of the acceleration of urbanization in China and from the potential demand in global markets.

"After years of careful development of both our business and our brand, we have become not only a pioneer in the industry in China, but also a leading proponent of expanding the Chinese sportswear industry around the world.

“We have confidence that we can further enhance the competitiveness of our brand and promote the spirit of our company both domestically and overseas. Meanwhile, we will also take advantage of the opportunities that arise from industry consolidation and awareness of our brand to expand our business. I believe that after this period of intensive destocking and adjustment, Peak will recover very soon and attain sustainable growth in the coming years.”

About Peak Sport Products Co., Limited

The Group’s products are exported to over 70 countries. Peak executes a focused international branding strategy and has become an official marketing partner of the NBA in China since October 2007.

Peak Sport Group