----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|                                           |   | CHINA SPORTS HOLDING COMPANY LIMITED                   |   |                                 |
|------------------------------------------------|--------|--------------------------------------------------------|--------|--------------------------------------|
|                                           |   | (Exact name of registrant as specified in its charter) |   |                                 |
|                                           |   |                                                   |   |                                 |
| Delaware                                       |   | 000-52623                                              |   | 37-1532843                           |
| (State or other jurisdiction of incorporation) |   | (Commission File Number)                               |   | (I.R.S. Employer Identification No.) |

----

| Item 1.  | Financial Statements.                                                                        |
|----------|----------------------------------------------------------------------------------------------|
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk.                                  |
| Item 4T. | Controls and Procedures.                                                                     |

| Item 1.  | Legal Proceedings.                                           |
|----------|--------------------------------------------------------------|
| Item 1A. | Risk Factors.                                                |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds. |
| Item 3.  | Defaults Upon Senior Securities.                             |
| Item 4.  | (Removed and Reserved)                                       |
| Item 5.  | Other Information.                                           |
| Item 6.  | Exhibits.                                                    |

----

|                                                                                                                                                                   |   | June 30,    |       |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                                                                                   |   | 2010        |       |   | 2009         |   |
| ASSETS                                                                                                                                                                 |   | (Unaudited) |       |   |         |   |
| CURRENT ASSETS                                                                                                                                                         |   |        |       |   |         |   |
| Cash and cash equivalents                                                                                                                                              |   | $           | 20,829,938 |   |         | $      | 17,387,929 |   |
| Accounts receivable, net of $nil allowance                                                                                                                             |   |        | 23,247,091 |   |         |   | 22,125,979 |   |
| Prepaid land use rights – current portion                                                                                                                        |   |        | 17,569     |   |         |   | 17,473 |   |
| Inventories                                                                                                                                                            |   |        | 2,327,682  |   |         |   | 1,687,090 |   |
| Loan due from a related party                                                                                                                                          |   |        | -          |   |         |   | 3,148,707 |   |
| Total current assets                                                                                                                                                   |   |        | 46,422,280 |   |         |   | 44,367,178 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| OTHER ASSETS                                                                                                                                                           |   |        |       |   |         |   |   |   |
| Property, plant and equipment, net                                                                                                                                     |   |        | 9,448,505  |   |         |   | 9,837,833 |   |
| Deposit for land use right                                                                                                                                             |   |        | 7,362,794  |   |         |   | − |   |
| Prepaid land use rights – long-term portion                                                                                                                      |   |        | 788,331    |   |         |   | 792,761 |   |
| Total non-current assets                                                                                                                                               |   |        | 17,599,630 |   |         |   | 10,630,594 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| Total assets                                                                                                                                                           |   | $           | 64,021,910 |   |         | $      | 54,997,772 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                 |   |        |       |   |         |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                    |   |        |       |   |         |   |   |   |
| Short-term bank loans                                                                                                                                                  |   | $           | 1,236,949  |   |         | $      | 1,354,676 |   |
| Accounts and notes payable                                                                                                                                             |   |        | 14,295,066 |   |         |   | 14,329,705 |   |
| Other payables and accruals                                                                                                                                            |   |        | 2,527,377  |   |         |   | 1,243,656 |   |
| Income taxes payable                                                                                                                                                   |   |        | 1,806,105  |   |         |   | 1,360,954 |   |
| Total current liabilities                                                                                                                                              |   |        | 19,865,497 |   |         |   | 18,288,991 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| Total liabilities                                                                                                                                                      |   |        | 19,865,497 |   |         |   | 18,288,991 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| SHAREHOLDERS' EQUITY Preferred stock, $0.001 par: 10,000,000 shares authorized, none shares issued and outstanding                                                |   |        | -          |   |         |   | - |   |
| Common stock, $0.001 par: 40,000,000 shares authorized, 10,000,000 and 9,000,000 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively |   |        | 10,000     |   |         |   | 9,000 |   |
| Additional paid-in capital                                                                                                                                             |   |        | 2,402,198  |   |         |   | 2,399,003 |   |
| Statutory reserves                                                                                                                                                     |   |        | 2,009,528  |   |         |   | 2,009,528 |   |
| Retained earnings                                                                                                                                                      |   |        | 35,182,592 |   |         |   | 28,409,504 |   |
| Accumulated other comprehensive income                                                                                                                                 |   |        | 1,902,962  |   |         |   | 1,679,219 |   |
| Total China Sports shareholders' equity                                                                                                                                |   |        | 41,507,280 |   |         |   | 34,506,254 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| Noncontrolling interests                                                                                                                                               |   |        | 2,649,133  |   |         |   | 2,202,527 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| Total equity                                                                                                                                                           |   |        | 44,156,413 |   |         |   | 36,708,781 |   |
|                                                                                                                                                                   |   |        |       |   |         |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                             |   | $           | 64,021,910 |   |         | $      | 54,997,772 |   |

----

|                                                                  |   | For the Three Months |        |   | For the Six Months |   |
|-----------------------------------------------------------------------|--------|----------------------|-------------|--------|--------------------|--------|
|                                                                  |   | Ended June 30,       |        |   | Ended June 30,     |   |
|                                                                  |   | 2010                 |        |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                    | 27,568,749  |   |               | $      | 19,931,420 |   |   | $ | 42,367,797 |   |   | $ | 37,622,831 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                    |   |                 | (19,391,793 | )      |               |   | (14,242,612 | ) |   |   | (29,974,106 | ) |   |   | (27,107,193 | ) |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                          |   |                 | 8,176,956   |   |               |   | 5,688,808 |   |   |   | 12,393,691 |   |   |   | 10,515,638 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                                      |   |                 | (747,617    | )      |               |   | (578,934 | ) |   |   | (1,479,744 | ) |   |   | (1,148,523 | ) |
| General and administrative expenses                                   |   |                 | (760,147    | )      |               |   | (478,587 | ) |   |   | (1,302,683 | ) |   |   | (977,400 | ) |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                                |   |                 | 6,669,192   |   |               |   | 4,631,287 |   |   |   | 9,611,264 |   |   |   | 8,389,715 |   |
| Other income (expenses):                                              |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                       |   |                 | 16,272      |   |               |   | 81,790 |   |   |   | 101,050 |   |   |   | 89,874 |   |
| Interest expenses                                                     |   |                 | (16,730     | )      |               |   | (39,519 | ) |   |   | (34,717 | ) |   |   | (39,530 | ) |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expenses)                                         |   |                 | (458        | )      |               |   | 42,271 |   |   |   | 66,333 |   |   |   | 50,344 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax                                              |   |                 | 6,668,734   |   |               |   | 4,673,558 |   |   |   | 9,677,597 |   |   |   | 8,440,059 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                                              |   |                 | (1,719,968  | )      |               |   | (1,168,391 | ) |   |   | (2,472,184 | ) |   |   | (2,113,923 | ) |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                            |   |                 | 4,948,766   |   |               |   | 3,505,167 |   |   |   | 7,205,413 |   |   |   | 6,326,136 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Income attributable to noncontrolling interests                       |   |                 | (296,926    | )      |               |   | (210,310 | ) |   |   | (432,325 | ) |   |   | (379,568 | ) |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to China Sports shareholders                  |   | $                    | 4,651,840   |   |               | $      | 3,294,857 |   |   | $ | 6,773,088 |   |   | $ | 5,946,568 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income attributable to China Sports shareholders: |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                               |   |                 | 213,951     |   |               |   | 13,220 |   |   |   | 223,743 |   |   |   | 9,128 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to China Sports Shareholders        |   | $                    | 4,865,791   |   |               | $      | 3,308,077 |   |   | $ | 6,996,831 |   |   | $ | 5,955,696 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to noncontrolling interests         |   |                 | 310,582     |   |               |   | 211,154 |   |   |   | 446,606 |   |   |   | 380,150 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                                            |   | $                    | 5,176,373   |   |               | $      | 3,519,231 |   |   | $ | 7,443,437 |   |   | $ | 6,335,846 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share attributable to China Sports shareholders          |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   | $                    | 0.47        |   |               | $      | 0.37 |   |   | $ | 0.69 |   |   | $ | 0.66 |   |
| Diluted                                                               |   | $                    | 0.47        |   |               | $      | 0.37 |   |   | $ | 0.69 |   |   | $ | 0.66 |   |
|                                                                  |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding                         |   |                 |        |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   |                 | 10,000,000  |   |               |   | 9,000,000 |   |   |   | 9,767,956 |   |   |   | 9,000,000 |   |
| Diluted                                                               |   |                 | 10,000,000  |   |               |   | 9,000,000 |   |   |   | 9,767,956 |   |   |   | 9,000,000 |   |

----

|                                    |   | Attributable to China Sports shareholders |       |   |       |   |   |           |   |
|-----------------------------------------|--------|-------------------------------------------|------------|--------|------------|--------|--------|----------------|--------|
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                    |   | Common Stock                              |       |   | Additional |   |   |           |   |   |   |   |   | Other |   |   | Non- |   |   |   |   |
|                                    |   | Number of shares                          |       |   | Amount     |   |   | Paid-inCapital |   |   | StatutoryReserves |   |   | RetainedEarnings |   |   | ComprehensiveIncome |   |   | controllinginterests |   |   | Total |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At January 1, 2010                      |   |                                      | 9,000,000  |   |       | $      | 9,000  |           |   | $ | 2,399,003 |   |   | $ | 2,009,528 |   |   | $ | 28,409,504 |   |   | $ | 1,679,219 |   |   | $ | 2,202,527 |   |   | $ | 36,708,781 |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of reverse acquisition (Note 1)  |   |                                      | 1,000,000  |   |       |   | 1,000  |           |   |   | 3,195 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,195 |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                              |   |                                      | -          |   |       |   | -      |           |   |   | - |   |   |   | - |   |   |   | 6,773,088 |   |   |   | - |   |   |   | 432,325 |   |   |   | 7,205,413 |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment |   |                                      | -          |   |       |   | -      |           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 223,743 |   |   |   | 14,281 |   |   |   | 238,024 |   |
|                                    |   |                                      |       |   |       |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2010 (Unaudited)            |   |                                      | 10,000,000 |   |       | $      | 10,000 |           |   | $ | 2,402,198 |   |   | $ | 2,009,528 |   |   | $ | 35,182,592 |   |   | $ | 1,902,962 |   |   | $ | 2,649,133 |   |   | $ | 44,156,413 |   |

----

|                                                        |   | For the Six Months EndedJune 30, |       |
|-------------------------------------------------------------|--------|----------------------------------|------------|
|                                                        |   | 2010                             |       |   | 2009 |   |
|                                                        |   |                             |       |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                        |   |                             |       |   |   |   |
| Net income                                                  |   | $                                | 7,205,413  |   |   | $ | 6,326,136 |   |
| Adjustments for:                                            |   |                             |       |   |   |   |   |   |
| Interest income receivable on loan due from a related party |   |                             | (73,276    | ) |   |   | (73,176 | ) |
| Depreciation and amortization                               |   |                             | 449,986    |   |   |   | 451,393 |   |
| (Increase) decrease in assets:                              |   |                             |       |   |   |   |   |   |
| Accounts receivable                                         |   |                             | (994,806   | ) |   |   | (2,473,283 | ) |
| Other receivables                                           |   |                             | -          |   |   |   | 83,421 |   |
| Inventories                                                 |   |                             | (628,309   | ) |   |   | 1,771,142 |   |
| Increase (decrease) in liabilities:                         |   |                             |       |   |   |   |   |   |
| Accounts and notes payable                                  |   |                             | (112,805   | ) |   |   | (1,088,408 | ) |
| Other payables and accruals                                 |   |                             | 1,270,791  |   |   |   | 1,355,232 |   |
| Income taxes payable                                        |   |                             | 435,585    |   |   |   | 247,390 |   |
| Net cash provided by operating activities                   |   |                             | 7,552,579  |   |   |   | 6,599,847 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                        |   |                             |       |   |   |   |   |   |
| Repayment by (loan to) a related party                      |   |                             | 3,224,152  |   |   |   | (2,927,058 | ) |
| Purchase of property, plant and equipment                   |   |                             | -          |   |   |   | (203,240 | ) |
| Payment of deposit for land use right                       |   |                             | (7,362,794 | ) |   |   | - |   |
| Net cash used in investing activities                       |   |                             | (4,138,642 | ) |   |   | (3,130,298 | ) |
|                                                        |   |                             |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                        |   |                             |       |   |   |   |   |   |
| Repayments of short-term bank loans                         |   |                             | (124,570   | ) |   |   | - |   |
| Net cash used in financing activities                       |   |                             | (124,570   | ) |   |   | - |   |
|                                                        |   |                             |       |   |   |   |   |   |
| Foreign currency translation adjustment                     |   |                             | 152,642    |   |   |   | 3,383 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                   |   |                             | 3,442,009  |   |   |   | 3,472,932 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period              |   |                             | 17,387,929 |   |   |   | 7,400,057 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                    |   | $                                | 20,829,938 |   |   | $ | 10,872,989 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE INFORMATION                         |   |                             |       |   |   |   |   |   |
| Cash paid for interest                                      |   | $                                | 34,717     |   |   | $ | 39,530 |   |
| Cash paid for income taxes                                  |   | $                                | 2,037,215  |   |   | $ | 1,866,533 |   |
|                                                        |   |                             |       |   |   |   |   |   |
| NONCASH INVESTING AND FINANCING ACTIVITIES                  |   |                             |       |   |   |   |   |   |
| Interest receivable on loan due from a related party        |   | $                                | -          |   |   |   | 73,176 |   |
|                                                        |   |                             |       |   |   |   |   |   |

----

|  Subsidiaries’ names                                                                   |   | Domicile and date ofincorporation                                 |   | Ownership by the Company  |   |  Principal activities                                                          |
|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|---------------------------|--------|-------------------------------------------------------------------------------------|
|                                                                                              |   |                                                              |   |                      |   |                                                                                |
| Kobe Sport (International) Company Limited (“Kobe Sport”)                             |   | British Virgin IslandsSeptember 25, 2009                          |   | 100%                      |   | Intermediate holding company                                                   |
|                                                                                              |   |                                                              |   |                      |   |                                                                                |
| Nam Kwong Trading Company Limited (“Nam Kwong”)                                       |   | Hong KongOctober 8, 2009                                          |   | 100% (through Kobe Sport) |   | Intermediate holding company                                                        |
|                                                                                              |   |                                                              |   |                      |   |                                                                                |
| Kobe Brand and Properties Management Company    Limited (“Kobe Brand”) |   | Hong KongApril 26, 2010                                           |   | 100% (through Kobe Sport) |   | Intermediate holding company                                                        |
|                                                                                              |   |                                                              |   |                      |   |                                                                                |
| Fujian Jinjiang Hengfeng Shoes & Garments Co., Ltd. (“Hengfeng”)                  |   | People’s Republic of China (“PRC”)March 2, 1992 |   | 94% (through Nam Kwong)   |   | Design, manufacturing and sales of sports shoes, sportswear and related accessories |

----

----

|                                             | June 30, 2010          |   | December 31, 2009 |   |
|--------------------------------------------------|-----------------------------|--------|-----------------------------|--------|
| Balance sheet items, except for equity accounts  | US$1=RMB 6.7909             |   | US$1=RMB6.8282              |   |
|                                             |                        |   |                        |   |
|                                             | Three months ended June 30, |   |
|                                             | 2010                        |   | 2009                        |   |
| Items in the statements of income and cash flows | US$1=RMB 6.8235             |   | US$1=RMB 6.8299             |   |
|                                             |                        |   |                        |   |
|                                             | Six months ended June 30,   |
|                                             | 2010                        |   | 2009                        |   |
| Items in the statements of income and cash flows | US$1=RMB 6.8252             |   | US$1=RMB6.8328              |   |

----

| Level 1 - | Quoted prices in active markets for identical assets or liabilities. |
|-----------|----------------------------------------------------------------------|

| Level 2 - | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3 - | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | June 30,    |       |   | December 31, |   |
|---------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                  |   | 2010        |       |   | 2009         |   |
|                                  |   | (Unaudited) |       |   |         |   |
|                                  |   |        |       |   |         |   |
| Accounts receivable                   |   | $           | 23,247,091 |   |         | $      | 22,125,979 |   |
| Less: Allowance for doubtful accounts |   |        | -          |   |         |   | - |   |
|                                  |   |        |       |   |         |   |   |   |
| Accounts receivable, net              |   | $           | 23,247,091 |   |         | $      | 22,125,979 |   |

|             |   | June 30,    |      |   | December 31, |   |
|------------------|--------|-------------|-----------|--------|--------------|--------|
|             |   | 2010        |      |   | 2009         |   |
|             |   | (Unaudited) |      |   |         |   |
|             |   |        |      |   |         |   |
| Raw materials    |   | $           | 665,255   |   |         | $      | 558,990 |   |
| Work in progress |   |        | 848,990   |   |         |   | 317,072 |   |
| Finished goods   |   |        | 813,437   |   |         |   | 811,028 |   |
|             |   |        |      |   |         |   |   |   |
|             |   | $           | 2,327,682 |   |         | $      | 1,687,090 |   |

----

|                                 |   | June 30,    |       |   | December 31, |   |
|--------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                 |   | 2010        |       |   | 2009         |   |
|                                 |   | (Unaudited) |       |   |         |   |
| Cost:                                |   |        |       |   |         |   |
|    Buildings               |   | $           | 3,009,763  |   |         | $      | 2,993,322 |   |
|    Machinery               |   |        | 8,874,298  |   |         |   | 8,825,821 |   |
|    Office equipment        |   |        | 370,749    |   |         |   | 368,724 |   |
|                                 |   |        |       |   |         |   |   |   |
|   Total cost                    |   |        | 12,254,810 |   |         |   | 12,187,867 |   |
|  Less: Accumulated depreciation |   |        | (2,806,305 | )      |         |   | (2,350,034 | ) |
|                                 |   |        |       |   |         |   |   |   |
|  Net book value                 |   | $           | 9,448,505  |   |         | $      | 9,837,833 |   |

| NOTE 8 | OTHER PAYABLES AND ACCRUALS |
|--------|-----------------------------|

|                                             |   | June 30,    |      |   | December 31, |   |
|--------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|
|                                             |   | 2010        |      |   | 2009         |   |
|                                             |   | (Unaudited) |      |   |         |   |
|                                             |   |        |      |   |         |   |
| Accrued staff costs and other operating expenses |   | $           | 474,428   |   |         | $      | 280,126 |   |
| Value added tax and other taxes payable          |   |        | 1,404,495 |   |         |   | 963,530 |   |
| Accrued expenses                                 |   |        | 648,454   |   |         |   | - |   |
|                                             |   |        |      |   |         |   |   |   |
|                                             |   | $           | 2,527,377 |   |         | $      | 1,243,656 |   |

----

|                                               |       | Annualized interest rate |   |   |              |   |   |   |                                                                                                                                      |   |
|----------------------------------------------------|------------|--------------------------|--------|--------|-------------------|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |       | June 30, 2010            |   |   | December 31, 2009 |   |   |   | June 30,2010                                                                                                                              |   |   | December 31,2009 |   |
| Maturity date                                      | Collateral |
|                                               |       | (Unaudited)              |   |   |              |   |   |   | (Unaudited)                                                                                                                               |   |   |   |   |
|                                               |       |                     |   |   |              |   |   |   |                                                                                                                                      |   |   |   |   |
| February 23, 2011                                  |       |                     | 5.31   | %      |              |   | 5.31   | %      | The Company’s land use right and buildings and guaranteed by a minority shareholder of Hengfeng and the general manager of Hengfeng |   | $ | 176,706 |   |   | $ | - |   |
| March 4, 2011                                      |       |                     | 5.31   | %      |              |   | 5.31   | %      | Guaranteed by a third party entity, the general manager of Hengfeng and a third party individual                                          |   |   | 176,707 |   |   |   | - |   |
| February 25, 2010                                  |       |                     | 5.31   | %      |              |   | 5.31   | %      | Guaranteed by a minority shareholder of Hengfeng and the general manager of Hengfeng                                                      |   |   | - |   |   |   | 109,838 |   |
| March 5, 2010                                      |       |                     | 5.31   | %      |              |   | 5.31   | %      | Guaranteed by a third party entity, the general manager of Hengfeng and a third party individual                                          |   |   | - |   |   |   | 366,129 |   |
| April 2, 2010, extended to March 31, 2011          |       |                     | 5.31   | %      |              |   | 5.31   | %      | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng                                        |   |   | 184,070 |   |   |   | 183,064 |   |
| April 10, 2010, extended to March 31, 2011         |       |                     | 5.31   | %      |              |   | 5.31   | %      | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng                                        |   |   | 184,070 |   |   |   | 183,064 |   |
| April 22, 2010, extended to April 19, 2011         |       |                     | 5.31   | %      |              |   | 5.31   | %      | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng                                        |   |   | 191,433 |   |   |   | 190,387 |   |
| August 30, 2009 extended to August 26, 2010        |       |                     | 5.31   | %      |              |   | 5.31   | %      | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng                                        |   |   | 103,079 |   |   |   | 102,516 |   |
| September 26, 2009, extended to September 25, 2010 |       |                     | 5.31   | %      |              |   | 5.31   | %      | Guaranteed by a third party entity, the general manager of Hengfeng and a third party individual                                          |   |   | 110,442 |   |   |   | 109,839 |   |
| September 26, 2009, extended to September 25, 2010 |       |                     | 5.31   | %      |              |   | 5.31   | %      | Guaranteed by a third party entity,  the general manager of Hengfeng and a third party individual                               |   |   | 110,442 |   |   |   | 109,839 |   |
|                                               |       |                     |   |   |              |   |   |   |                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                               |       |                     |   |   |              |   |   |   |                                                                                                                                      |   | $ | 1,236,949 |   |   | $ | 1,354,676 |   |

----

|                |   | For the three months |      |   | For the six months |   |
|---------------------|--------|----------------------|-----------|--------|--------------------|--------|
|                |   | Ended June 30,       |      |   | Ended June 30,     |   |
|                |   | 2010                 |      |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                |   | (Unaudited)          |      |   | (Unaudited)        |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                |   |                 |      |   |               |   |   |   |   |   |   |   |
| Current – PRC |   | $                    | 1,719,968 |   |               | $      | 1,168,391 |   |   | $ | 2,472,184 |   |   | $ | 2,113,923 |   |
| Deferred            |   |                 | -         |   |               |   | - |   |   |   | - |   |   |   | - |   |
|                |   |                 |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                |   | $                    | 1,719,968 |   |               | $      | 1,168,391 |   |   | $ | 2,472,184 |   |   | $ | 2,113,923 |   |

----

|                                                              |   | For the three months |       |   | For the six months |   |
|-------------------------------------------------------------------|--------|----------------------|------------|--------|--------------------|--------|
|                                                              |   | Ended June 30,       |       |   | Ended June 30,     |   |
|                                                              |   | 2010                 |       |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                                              |   | (Unaudited)          |       |   | (Unaudited)        |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                              |   |                 |       |   |               |   |   |   |   |   |   |   |
| Income available to common shareholders – Basic and diluted |   | $                    | 4,651,840  |   |               | $      | 3,294,857 |   |   | $ |  6,773,088 |   |   | $ | 5,946,136 |   |
|                                                              |   |                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares – Basic and diluted       |   |                 | 10,000,000 |   |               |   | 9,000,000 |   |   |   | 9,767,956 |   |   |   | 9,000,000 |   |
|                                                              |   |                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings per share – Basic and diluted               |   | $                    | 0.47       |   |               | $      | 0.37 |   |   | $ |  0.69 |   |   | $ | 0.66 |   |

|                                                 |   | June 30,    |   | December 31, |   |
|------------------------------------------------------|--------|-------------|--------|--------------|--------|
|                                                 |   | 2010        |   | 2009         |   |
|                                                 |   | (Unaudited) |   |         |   |   |
| Loan due from a related party:                       |   |        |   |         |   |   |
| Mr. Qionglin Lin, the general manager of the Company |   | $           | -      |         |   | $ | 3,148,707 |   |

| NOTE 15 | CERTAIN RISKS AND CONCENTRATIONS |
|---------|----------------------------------|

----

| NOTE 15 | CERTAIN RISKS AND CONCENTRATIONS (CONTINUED) |
|---------|----------------------------------------------|

|                                                  |   | (Unaudited) |   |
|-------------------------------------------------------|--------|-------------|--------|
| Payable within:                                       |   |        |   |
| - remainder of fiscal year ending December 31, 2010   |   | $           | 31,468 |   |
| - fiscal year ending December 31, 2011                |   |        | 31,468 |   |
| - fiscal year ending December 31, 2012 and thereafter |   |        | -      |   |
| Total                                                 |   | $           | 62,936 |   |

----

|                                 |   | For the Three months Ended |       |   | For the Six months Ended |   |
|--------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                 |   | June 30,                   |       |   | June 30,                 |   |
|                                 |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                 |   | (Unaudited)                |       |   | (Unaudited)              |   |   | (Unaudited) |   |   | (Unaudited) |   |
| Net revenue from external customers: |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Sports shoes                         |   | $                          | 17,112,339 |   |                     | $      | 11,681,993 |   |   | $ | 24,556,544 |   |   | $ | 21,979,207 |   |
| Sports accessories                   |   |                       | 10,456,410 |   |                     |   | 8,249,427 |   |   |   | 17,811,253 |   |   |   | 15,643,624 |   |
| Total                                |   | $                          | 27,568,749 |   |                     | $      | 19,931,420 |   |   | $ | 42,367,797 |   |   | $ | 37,622,831 |   |

----

----

|                                                                  |   | For the Three Months |        |
|-----------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                  |   | Ended June 30,       |        |
|                                                                  |   | 2010                 |        |   | 2009 |   |
|                                                                  |   |                 |        |   |   |   |
| Revenue                                                               |   | $                    | 27,568,749  |   |   | $ | 19,931,420 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Cost of goods sold                                                    |   |                 | (19,391,793 | ) |   |   | (14,242,612 | ) |
|                                                                  |   |                 |        |   |   |   |   |   |
| Gross profit                                                          |   |                 | 8,176,956   |   |   |   | 5,688,808 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Selling expenses                                                      |   |                 | (747,617    | ) |   |   | (578,934 | ) |
| General and administrative expenses                                   |   |                 | (760,147    | ) |   |   | (478,587 | ) |
|                                                                  |   |                 |        |   |   |   |   |   |
| Income from operations                                                |   |                 | 6,669,192   |   |   |   | 4,631,287 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Other income (expenses):                                              |   |                 |        |   |   |   |   |   |
| Interest income                                                       |   |                 | 16,272      |   |   |   | 81,790 |   |
| Interest expenses                                                     |   |                 | (16,730     | ) |   |   | (39,519 | ) |
|                                                                  |   |                 |        |   |   |   |   |   |
| Total other income (expenses)                                         |   |                 | (458        | ) |   |   | 42,271 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Income before income tax                                              |   |                 | 6,668,734   |   |   |   | 4,673,558 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Provision for income tax                                              |   |                 | (1,719,968  | ) |   |   | (1,168,391 | ) |
|                                                                  |   |                 |        |   |   |   |   |   |
| Net income                                                            |   |                 | 4,948,766   |   |   |   | 3,505,167 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Income attributable to noncontrolling interests                       |   |                 | (296,926    | ) |   |   | (210,310 | ) |
|                                                                  |   |                 |        |   |   |   |   |   |
| Net income attributable to China Sports shareholders                  |   | $                    | 4,651,840   |   |   | $ | 3,294,857 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Other comprehensive income attributable to China Sports shareholders: |   |                 |        |   |   |   |   |   |
| Foreign currency translation adjustment                               |   |                 | 213,951     |   |   |   | 13,220 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Comprehensive income attributable to China Sports Shareholders        |   | $                    | 4,865,791   |   |   | $ | 3,308,077 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Comprehensive income attributable to noncontrolling interests         |   |                 | 310,582     |   |   |   | 211,154 |   |
|                                                                  |   |                 |        |   |   |   |   |   |
| Total Comprehensive income                                            |   | $                    | 5,176,373   |   |   | $ | 3,519,231 |   |
|                                                                  |   |                 |        |   |   |   |   |   |

----

----

|                                                                  |   | For the Six Months |        |
|-----------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                  |   | Ended June 30,     |        |
|                                                                  |   | 2010               |        |   | 2009 |   |
|                                                                  |   |               |        |   |   |   |
| Revenue                                                               |   | $                  | 42,367,797  |   |   | $ | 37,622,831 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Cost of goods sold                                                    |   |               | (29,974,106 | ) |   |   | (27,107,193 | ) |
|                                                                  |   |               |        |   |   |   |   |   |
| Gross profit                                                          |   |               | 12,393,691  |   |   |   | 10,515,638 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Selling expenses                                                      |   |               | (1,479,744  | ) |   |   | (1,148,523 | ) |
| General and administrative expenses                                   |   |               | (1,302,683  | ) |   |   | (977,400 | ) |
|                                                                  |   |               |        |   |   |   |   |   |
| Income from operations                                                |   |               | 9,611,264   |   |   |   | 8,389,715 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Other income (expenses):                                              |   |               |        |   |   |   |   |   |
| Interest income                                                       |   |               | 101,050     |   |   |   | 89,874 |   |
| Interest expenses                                                     |   |               | (34,717     | ) |   |   | (39,530 | ) |
|                                                                  |   |               |        |   |   |   |   |   |
| Total other income (expenses)                                         |   |               | 66,333      |   |   |   | 50,344 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Income before income tax                                              |   |               | 9,677,597   |   |   |   | 8,440,059 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Provision for income tax                                              |   |               | (2,472,184  | ) |   |   | (2,113,923 | ) |
|                                                                  |   |               |        |   |   |   |   |   |
| Net income                                                            |   |               | 7,205,413   |   |   |   | 6,326,136 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Income attributable to noncontrolling interests                       |   |               | (432,325    | ) |   |   | (379,568 | ) |
|                                                                  |   |               |        |   |   |   |   |   |
| Net income attributable to China Sports shareholders                  |   | $                  | 6,773,088   |   |   | $ | 5,946,568 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Other comprehensive income attributable to China Sports shareholders: |   |               |        |   |   |   |   |   |
| Foreign currency translation adjustment                               |   |               | 223,743     |   |   |   | 9,128 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Comprehensive income attributable to China Sports Shareholders        |   | $                  | 6,996,831   |   |   | $ | 5,955,696 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Comprehensive income attributable to noncontrolling interests         |   |               | 446,606     |   |   |   | 380,150 |   |
|                                                                  |   |               |        |   |   |   |   |   |
| Total Comprehensive income                                            |   | $                  | 7,443,437   |   |   | $ | 6,335,846 |   |
|                                                                  |   |               |        |   |   |   |   |   |

----

----

|                                             |   | For the six monthsendedJune 30, |       |
|--------------------------------------------------|--------|--------------------------------------|------------|
|                                             |   | 2010                                 |       |   | 2009 |   |
|                                             |   | (US$)                                |       |
| Net cash provided by operating activities        |   | $                                    | 7,552,579  |   |   | $ | 6,599,847 |   |
| Net cash used in investing activities            |   |                                 | (4,138,642 | ) |   |   | (3,130,298 | ) |
| Net cash used in financing activities            |   |                                 | (124,570   | ) |   |   | - |   |
| Effect of exchange rate changes                  |   |                                 | 152,642    |   |   |   | 3,383 |   |
| Net increase in cash and cash equivalents        |   |                                 | 3,442,009  |   |   |   | 3,472,932 |   |
| Cash and cash equivalents at beginning of period |   |                                 | 17,387,929 |   |   |   | 7,400,057 |   |
| Cash and cash equivalents at end of period       |   | $                                    | 20,829,938 |   |   | $ | 10,872,989 |   |

----

| ExhibitNo. |    | Description                                                                                                                                                       |
|------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                                                              |
| 31.1       |         | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                |
|       |         |                                                                                                                                                              |
| 31.2       |         | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                |
|       |         |                                                                                                                                                              |
| 32.1       |         | Certification of Chief Executive Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|       |         |                                                                                                                                                              |
| 32.2       |         | Certification of Chief Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|       |         |                                                                                                                                                              |

----

|                       | CHINA SPORTS HOLDING COMPANY LIMITED |
|----------------------------|--------------------------------------|
|                       |                                 |   |
| Date: August 16, 2010 | By:                                  | /s/ Mendoza Anding Lin |
|                       |                                 | Mendoza Anding Lin |
|                       |                                 | President, Chief Executive Officer and Chairman |

| Date: August 16, 2010 | By:    | /s/ Wing Sang Tommy Lo                                   |
|-----------------------|--------|----------------------------------------------------------|
|                  |   | Wing Sang Tommy Lo                                       |
|                  |   | Chief Financial Officer and Principal Accounting Officer |