CHINA HONGXING SPORTS LIMITED

Company Registration No. 36746

Incorporated in Bermuda

______________________________________________________________________________

(A) APPOINTMENT OF SPECIAL ACCOUNTANT AND OTHER MATTERS

(B) REQUEST FOR SUSPENSION OF TRADING IN SHARES
______________________________________________________________________

Further to the request for trading halt on 22 February 2011, the Board of Directors (the
“Board”) of China Hongxing Sports Limited (the “Company”) wishes to announce that the
Company and its Auditors (Ernst & Young LLP (the “Auditors”) face certain difficulties in
respect of the finalisation of the audit of the Group’s financial statements for the year ended
31 December 2010.

The Audit Committee has been informed by its Auditors on 22 February 2011 that they have
noted irregularities in the cash and bank balances, accounts receivables, accounts payables,
and other expenses during the course of their audits of its subsidiary companies in the
People’s Republic of China (“PRC”). These subsidiaries are Fujian Hongxing Erke Sports
Goods Co., Ltd and Quanzhou Hongrong Light Industry Co., Ltd. (“PRC Subsidiaries”). As
such, the Auditors will not be able to give audit clearance in respect of the financial results
for year ended 31 Dec 2010 without performing additional procedures and tests relating to
these account balances. The Auditors also recommend that the Audit Committee
immediately commence a fact-finding process to verify such irregularities. The Auditors were
appointed auditors of the Company effective from the financial year ended 31 December
2010.

In view of the above, the Board has resolved to appoint an Independent Special Auditor
(“SA”) to the Company to carry out a thorough investigation into the matters raised and
thereafter to announce the report of the SA. The appointment will be made by 1 March 2011.

The Board has also authorised that the Audit Committee to oversee the investigation and
take any further actions as they deem fit. The SA will report to the Audit Committee and the
Singapore Exchange Securities Trading Limited (“SGX-ST”). In the meantime, the AC will
take steps to safeguard the assets of the Company and continue the operations smoothly.

In view of the above, the Company will apply to convert its trading halt into a trading
suspension.

The Company will apply to SGX-ST for an extension of time in relation to Rule 705(1) of the
Listing Manual for the Company to announce its full financial year statements for the year
ended 31 December 2010 (“FY2010”) as the Company will not be able to make the
announcement of its FY2010 financial year statements by 1 March 2011.

The Company has appointed KhattarWong as the Company’s legal advisers in the matter on
Singapore laws. The Company will appoint a Bermuda legal adviser to advise on Bermuda
Law and a PRC law firm to advise in the matter in relation to the PRC Subsidiaries on the
PRC laws, if necessary.
The Company will make further announcements as and when there are material
developments or more information becomes available.

By Order of the Board

Chew Kok Liang

Company Secretary
Date 25 February 2011