----

----

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

| oTRANSITION 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.) |

| Large Accelerated Filer | o | Accelerated Filer | o | Non-Accelerated Filer | o | Smaller Reporting Company | x |
|-------------------------|---|-------------------|---|-----------------------|---|---------------------------|---|

----

----

----

| 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.                                                    |

----

|                                                                                                                                                                        |   | September 30, |       |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                                                                                        |   | 2010          |       |   | 2009         |   |
| ASSETS                                                                                                                                                                      |   | (Unaudited)   |       |   |         |   |
| CURRENT ASSETS                                                                                                                                                              |   |          |       |   |         |   |
| Cash and cash equivalents                                                                                                                                                   |   | $             | 21,538,313 |   |         | $      | 17,387,929 |   |
| Accounts receivable, net of $nil allowance                                                                                                                                  |   |          | 32,122,923 |   |         |   | 22,125,979 |   |
| Prepaid land use rights – current portion                                                                                                                             |   |          | 17,805     |   |         |   | 17,473 |   |
| Inventories                                                                                                                                                                 |   |          | 2,140,482  |   |         |   | 1,687,090 |   |
| Loan due from a related party                                                                                                                                               |   |          | -          |   |         |   | 3,148,707 |   |
| Total current assets                                                                                                                                                        |   |          | 55,819,523 |   |         |   | 44,367,178 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| OTHER ASSETS                                                                                                                                                                |   |          |       |   |         |   |   |   |
| Property, plant and equipment, net                                                                                                                                          |   |          | 9,350,675  |   |         |   | 9,837,833 |   |
| Deposit for land use right                                                                                                                                                  |   |          | 7,461,462  |   |         |   | − |   |
| Prepaid land use rights – long-term portion                                                                                                                           |   |          | 794,444    |   |         |   | 792,761 |   |
| Total non-current assets                                                                                                                                                    |   |          | 17,606,581 |   |         |   | 10,630,594 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| Total assets                                                                                                                                                                |   | $             | 73,426,104 |   |         | $      | 54,997,772 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                      |   |          |       |   |         |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                         |   |          |       |   |         |   |   |   |
| Short-term bank loans                                                                                                                                                       |   | $             | 1,253,526  |   |         | $      | 1,354,676 |   |
| Accounts payable                                                                                                                                                            |   |          | 16,045,550 |   |         |   | 14,329,705 |   |
| Other payables and accruals                                                                                                                                                 |   |          | 2,864,045  |   |         |   | 1,243,656 |   |
| Income taxes payable                                                                                                                                                        |   |          | 2,128,724  |   |         |   | 1,360,954 |   |
| Total current liabilities                                                                                                                                                   |   |          | 22,291,845 |   |         |   | 18,288,991 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| Total liabilities                                                                                                                                                           |   |          | 22,291,845 |   |         |   | 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 September 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                                                                                                                                                           |   |          | 41,110,497 |   |         |   | 28,409,504 |   |
| Accumulated other comprehensive income                                                                                                                                      |   |          | 2,534,232  |   |         |   | 1,679,219 |   |
| Total China Sports shareholders' equity                                                                                                                                     |   |          | 48,066,455 |   |         |   | 34,506,254 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| Non-controlling interests                                                                                                                                                   |   |          | 3,067,804  |   |         |   | 2,202,527 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| Total equity                                                                                                                                                                |   |          | 51,134,259 |   |         |   | 36,708,781 |   |
|                                                                                                                                                                        |   |          |       |   |         |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                  |   | $             | 73,426,104 |   |         | $      | 54,997,772 |   |

----

|                                                                  |   | For the Three Months |        |   | For the Nine Months |   |
|-----------------------------------------------------------------------|--------|----------------------|-------------|--------|---------------------|--------|
|                                                                  |   | Ended September 30,  |        |   | Ended September 30, |   |
|                                                                  |   | 2010                 |        |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |
| Revenue                                                               |   | $                    | 33,279,809  |   |                | $      | 21,538,673 |   |   | $ | 75,647,606 |   |   | $ | 59,161,504 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                    |   |                 | (23,395,963 | )      |                |   | (15,287,565 | ) |   |   | (53,370,069 | ) |   |   | (42,394,758 | ) |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                          |   |                 | 9,883,846   |   |                |   | 6,251,108 |   |   |   | 22,277,537 |   |   |   | 16,766,746 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                                      |   |                 | (776,424    | )      |                |   | (583,369 | ) |   |   | (2,256,168 | ) |   |   | (1,731,892 | ) |
| General and administrative expenses                                   |   |                 | (700,149    | )      |                |   | (652,901 | ) |   |   | (2,002,832 | ) |   |   | (1,630,301 | ) |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                                |   |                 | 8,407,273   |   |                |   | 5,014,838 |   |   |   | 18,018,537 |   |   |   | 13,404,553 |   |
| Other income (expense):                                               |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                       |   |                 | 18,850      |   |                |   | 82,493 |   |   |   | 119,900 |   |   |   | 172,367 |   |
| Interest expense                                                      |   |                 | (17,557     | )      |                |   | (38,551 | ) |   |   | (52,274 | ) |   |   | (78,081 | )  |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expense)                                          |   |                 | 1,293       |   |                |   | 43,942 |   |   |   | 67,626 |   |   |   | 94,286 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax                                              |   |                 | 8,408,566   |   |                |   | 5,058,780 |   |   |   | 18,086,163 |   |   |   | 13,498,839 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                                              |   |                 | (2,102,284  | )      |                |   | (1,276,286 | ) |   |   | (4,574,468 | ) |   |   | (3,390,209 | ) |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                            |   |                 | 6,306,282   |   |                |   | 3,782,494 |   |   |   | 13,511,695 |   |   |   | 10,108,630 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Income attributable to non-controlling interests                      |   |                 | (378,377    | )      |                |   | (226,950 | ) |   |   | (810,702 | ) |   |   | (606,518 | ) |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to China Sports shareholders                  |   | $                    | 5,927,905   |   |                | $      | 3,555,544 |   |   | $ | 12,700,993 |   |   | $ | 9,502,112 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income attributable to China Sports shareholders: |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                               |   |                 | 631,270     |   |                |   | 11,247 |   |   |   | 855,013 |   |   |   | 20,375 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to China Sports shareholders        |   | $                    | 6,559,175   |   |                | $      | 3,566,791 |   |   | $ | 13,556,006 |   |   | $ | 9,522,487 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to non-controlling interests        |   |                 | 418,671     |   |                |   | 227,668 |   |   |   | 865,277 |   |   |   | 607,818 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                                            |   |                 | 6,977,846   |   |                |   | 3,794,459 |   |   |   | 14,421,283 |   |   |   | 10,130,305 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share attributable to China Sports shareholders          |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   | $                    | 0.59        |   |                | $      | 0.40 |   |   | $ | 1.29 |   |   | $ | 1.06 |   |
| Diluted                                                               |   | $                    | 0.59        |   |                | $      | 0.40 |   |   | $ | 1.29 |   |   | $ | 1.06 |   |
|                                                                  |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding                         |   |                 |        |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   |                 | 10,000,000  |   |                |   | 9,000,000 |   |   |   | 9,846,154 |   |   |   | 9,000,000 |   |
| Diluted                                                               |   |                 | 10,000,000  |   |                |   | 9,000,000 |   |   |   | 9,846,154 |   |   |   | 9,000,000 |   |

----

|                                    |   | Attributable to China Sports shareholders |       |   |    |   |       |      |   |
|-----------------------------------------|--------|-------------------------------------------|------------|--------|---------|--------|------------|-----------|--------|
|                                    |   |                                      |       |   |    |   |       |      |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                    |   |                                      |       |   |    |   | Additional |      |   |   |   |   |   |   |   | Other |   |   | Non- |   |   |   |   |
|                                    |   | Common Stock                              |       |   | Paid-in |   |       | Statutory |   |   | Retained |   |   | Comprehensive |   |   | controlling |   |   |   |   |
|                                    |   | Number of shares                          |       |   | Amount  |   |       | Capital   |   |   | Reserves |   |   | Earnings |   |   | Income |   |   | Interests |   |   | 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                              |   |                                      | -          |   |    |   | -          |      |   |   | - |   |   |   | - |   |   |   | 12,700,993 |   |   |   | - |   |   |   | 810,702 |   |   |   | 13,511,695 |   |
|                                    |   |                                      |       |   |    |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment |   |                                      | -          |   |    |   | -          |      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 855,013 |   |   |   | 54,575 |   |   |   | 909,588 |   |
|                                    |   |                                      |       |   |    |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At September 30, 2010 (Unaudited)       |   |                                      | 10,000,000 |   |    | $      | 10,000     |      |   | $ | 2,402,198 |   |   | $ | 2,009,528 |   |   | $ | 41,110,497 |   |   | $ | 2,534,232 |   |   | $ | 3,067,804 |   |   | $ | 51,134,259 |   |

----

|                                                        |   | For the Nine months EndedSeptember 30, |       |
|-------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                        |   | 2010                                   |       |   | 2009 |   |
|                                                        |   |                                   |       |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                        |   |                                   |       |   |   |   |
| Net income                                                  |   | $                                      | 13,511,695 |   |   | $ | 10,108,630 |   |
| Adjustments for:                                            |   |                                   |       |   |   |   |   |   |
| Interest income receivable on loan due from a related party |   |                                   | (73,828    | ) |   |   | - |   |
| Depreciation and amortization                               |   |                                   | 679,863    |   |   |   | 676,742 |   |
| (Increase) decrease in assets:                              |   |                                   |       |   |   |   |   |   |
| Accounts receivable                                         |   |                                   | (9,476,310 | ) |   |   | (9,434,971 | ) |
| Other receivables                                           |   |                                   | -          |   |   |   | 1,347,580 |   |
| Inventories                                                 |   |                                   | (416,951   | ) |   |   | 1,339,786 |   |
| Increase (decrease) in liabilities:                         |   |                                   |       |   |   |   |   |   |
| Accounts payable                                            |   |                                   | 1,428,829  |   |   |   | 4,535,703 |   |
| Other payables and accruals                                 |   |                                   | 1,579,967  |   |   |   | 1,612,080 |   |
| Income taxes payable                                        |   |                                   | 734,135    |   |   |   | 372,757 |   |
| Net cash provided by operating activities                   |   |                                   | 7,967,400  |   |   |   | 10,558,307 |   |
|                                                        |   |                                   |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                        |   |                                   |       |   |   |   |   |   |
| Repayment by (loan to) a related party                      |   |                                   | 3,248,431  |   |   |   | (2,927,358 | ) |
| Purchase of property, plant and equipment                   |   |                                   | -          |   |   |   | (203,261 | ) |
| Payment of deposit for land use right                       |   |                                   | (7,461,462 | ) |   |   | - |   |
| Net cash used in investing activities                       |   |                                   | (4,213,031 | ) |   |   | (3,130,619 | ) |
|                                                        |   |                                   |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                        |   |                                   |       |   |   |   |   |   |
| Repayment to related parties                                |   |                                   | -          |   |   |   | (399,584 | ) |
| Proceeds from short-term borrowings                         |   |                                   | 1,432,263  |   |   |   |  - |   |
| Repayments of short-term bank loans                         |   |                                   | (1,557,771 | ) |   |   | - |   |
| Net cash used in financing activities                       |   |                                   | (125,508   | ) |   |   | (399,584 | ) |
|                                                        |   |                                   |       |   |   |   |   |   |
| Foreign currency translation adjustment                     |   |                                   | 521,523    |   |   |   | 9,258 |   |
|                                                        |   |                                   |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                   |   |                                   | 4,150,384  |   |   |   | 7,037,362 |   |
|                                                        |   |                                   |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period              |   |                                   | 17,387,929 |   |   |   | 7,400,057 |   |
|                                                        |   |                                   |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                    |   | $                                      | 21,538,313 |   |   | $ | 14,437,419 |   |
|                                                        |   |                                   |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE INFORMATION                         |   |                                   |       |   |   |   |   |   |
| Cash paid for interest                                      |   | $                                      | 52,274     |   |   | $ | 78,081 |   |
| Cash paid for income taxes                                  |   | $                                      | 3,844,043  |   |   | $ | 1,866,533 |   |

----

|  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 |

----

----

|                                             | September 30, 2010          |   | December 31, 2009 |   |
|--------------------------------------------------|----------------------------------|--------|-----------------------------|--------|
| Balance sheet items, except for equity accounts  | US$1=RMB 6.7011                  |   | US$1=RMB6.8282              |   |
|                                             |                             |   |                        |   |
|                                             | Three months ended September 30, |   |
|                                             | 2010                             |   | 2009                        |   |
| Items in the statements of income and cash flows | US$1=RMB 6.7725                  |   | US$1=RMB 6.8310             |   |
|                                             |                             |   |                        |   |
|                                             | Nine months September 30,        |
|                                             | 2010                             |   | 2009                        |   |
| Items in the statements of income and cash flows | US$1=RMB 6.8069                  |   | US$1=RMB 6.8321             |   |

----

| 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. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | September 30, |       |   | December 31, |   |
|---------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                  |   | 2010          |       |   | 2009         |   |
|                                  |   | (Unaudited)   |       |   |         |   |
|                                  |   |          |       |   |         |   |
| Accounts receivable                   |   | $             | 32,122,923 |   |         | $      | 22,125,979 |   |
| Less: Allowance for doubtful accounts |   |          | -          |   |         |   | - |   |
|                                  |   |          |       |   |         |   |   |   |
| Accounts receivable, net              |   | $             | 32,122,923 |   |         | $      | 22,125,979 |   |

|             |   | September 30, |      |   | December 31, |   |
|------------------|--------|---------------|-----------|--------|--------------|--------|
|             |   | 2010          |      |   | 2009         |   |
|             |   | (Unaudited)   |      |   |         |   |
|             |   |          |      |   |         |   |
| Raw materials    |   | $             | 404,382   |   |         | $      | 558,990 |   |
| Work in progress |   |          | 929,062   |   |         |   | 317,072 |   |
| Finished goods   |   |          | 807,038   |   |         |   | 811,028 |   |
|             |   |          |      |   |         |   |   |   |
|             |   | $             | 2,140,482 |   |         | $      | 1,687,090 |   |

----

|                           |   | September 30, |       |   | December 31, |   |
|--------------------------------|--------|---------------|------------|--------|--------------|--------|
|                           |   | 2010          |       |   | 2009         |   |
|                           |   | (Unaudited)   |       |   |         |   |
| Cost:                          |   |          |       |   |         |   |
| Buildings                      |   | $             | 3,050,096  |   |         | $      | 2,993,322 |   |
| Machinery                      |   |          | 8,993,221  |   |         |   | 8,825,821 |   |
| Office equipment               |   |          | 375,718    |   |         |   | 368,724 |   |
|                           |   |          |       |   |         |   |   |   |
| Total cost                     |   |          | 12,419,035 |   |         |   | 12,187,867 |   |
| Less: Accumulated depreciation |   |          | (3,068,360 | )      |         |   | (2,350,034 | ) |
|                           |   |          |       |   |         |   |   |   |
| Net book value                 |   | $             | 9,350,675  |   |         | $      | 9,837,833 |   |

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

|                                             |   | September 30 |      |   | December 31 |   |
|--------------------------------------------------|--------|--------------|-----------|--------|-------------|--------|
|                                             |   | 2010         |      |   | 2009        |   |
|                                             |   | (Unaudited)  |      |   |        |   |
|                                             |   |         |      |   |        |   |
| Accrued staff costs and other operating expenses |   | $            | 458,571   |   |        | $      | 280,126 |   |
| Value added tax and other taxes payable          |   |         | 1,235,292 |   |        |   | 963,530 |   |
| Accrued expenses                                 |   |         | 1,170,182 |   |        |   | - |   |
|                                             |   |         |      |   |        |   |   |   |
|                                             |   | $            | 2,864,045 |   |        | $      | 1,243,656 |   |

----

|                                                     |   | Annualized interest rated |   |              |       |   |              |                                                                                 |                                                                                                        |
|----------------------------------------------------------|--------|---------------------------|--------|-------------------|------------|--------|-------------------|--------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Maturity date                                            |   | September 30, 2010        |   | December 31, 2009 | Collateral |   | September 30,2010 |                                                                                 |                                                                                                        | December 31,2009 |   |
|                                                     |   | (Unaudited)               |   |              |       |   |              |                                                                                 | (Unaudited)                                                                                                 |   |   |   |   |
|                                                     |   |                      |   |              |       |   |              |                                                                                 |                                                                                                        |   |   |   |   |
| February 23, 2011                                        |   |                      | 5.31   | %                 |       |   |              | Guaranteed by a minority shareholder of Hengfeng and the general manager of Hengfeng |                                                                                                        | $ | 179,075 |   |   | $ | - |   |
| March 4, 2011                                            |   |                      | 5.31   | %                 |       |   |              | Guaranteed by a third party entity and the general manager of Hengfeng               |                                                                                                        |   | 179,075 |   |   |   | - |   |
| September 21, 2011                                       |   |                      | 7.02   | %                 |       |   |              | Guaranteed by a third party entity and the general manager of Hengfeng               |                                                                                                        |   | 223,844 |   |   |   | - |   |
| February 25, 2010                                        |   |                      |   |              |       |   | 5.31              | %                                                                                    | Guaranteed by a minority shareholder of Hengfeng and the general manager of Hengfeng                        |   |   | - |   |   |   | 109,838 |   |
| March 5, 2010                                            |   |                      |   |              |       |   | 5.31              | %                                                                                    | Guaranteed by a third party entity and the general manager of Hengfeng                                      |   |   | - |   |   |   | 366,129 |   |
|  September 26, 2009, extended to September 25, 2010 |   |                      | 5.31   | %                 |       |   | 5.31              | %                                                                                    | Guaranteed by a third party entity and the general manager of Hengfeng                                      |   |   | - |   |   |   | 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 |   |   | - |   |   |   | 109,839 |   |
| March 31, 2011                                           |   |                      | 5.31   | %                 |       |   | 5.31              | %                                                                                    | The Company’s land use right and guaranteed by  the general manager of Hengfeng             |   |   | 186,537 |   |   |   | 183,064 |   |
| March 31, 2011                                           |   |                      | 5.31   | %                 |       |   | 5.31              | %                                                                                    | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng          |   |   | 186,537 |   |   |   | 183,064 |   |
| April 19, 2011                                           |   |                      | 5.31   | %                 |       |   | 5.31              | %                                                                                    | The Company’s land use right and guaranteed by the general manager of Hengfeng                        |   |   | 193,998 |   |   |   | 190,387 |   |
| August 26, 2010 extended to August 24, 2011              |   |                      | 5.31   | %                 |       |   | 5.31              | %                                                                                    | The Company’s land use right and buildings and guaranteed by the general manager of Hengfeng          |   |   | 104,460 |   |   |   | 102,516 |   |
|                                                     |   |                      |   |              |       |   |              |                                                                                 |                                                                                                        |   |   |   |   |   |   |   |   |
|                                                     |   |                      |   |              |       |   |              |                                                                                 |                                                                                                        |   | $ | 1,253,526 |   |   | $ | 1,354,676 |   |

----

|                |   | For the three months |      |   | For the nine months |   |
|---------------------|--------|----------------------|-----------|--------|---------------------|--------|
|                |   | Ended September 30,  |      |   | Ended September 30, |   |
|                |   | 2010                 |      |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                |   | (Unaudited)          |      |   | (Unaudited)         |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                |   |                 |      |   |                |   |   |   |   |   |   |   |
| Current – PRC |   | $                    | 2,102,284 |   |                | $      | 1,276,286 |   |   | $ | 4,574,468 |   |   | $ | 3,390,209 |   |
| Deferred            |   |                 | -         |   |                |   | - |   |   |   | - |   |   |   | - |   |
|                |   | $                    | 2,102,284 |   |                | $      | 1,276,286 |   |   | $ | 4,574,468 |   |   | $ | 3,390,209 |   |

|                                                                     |   | For the Three Months |      |   | For the Nine Months |   |
|--------------------------------------------------------------------------|--------|----------------------|-----------|--------|---------------------|--------|
|                                                                     |   | Ended September 30,  |      |   | Ended September 30, |   |
|                                                                     |   | 2010                 |      |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                                     |   | (Unaudited)          |      |   | (Unaudited)         |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                     |   |                 |      |   |                |   |   |   |   |   |   |   |
| Pre-tax income                                                           |   | $                    | 8,408,566 |   |                | $      | 5,058,780 |   |   | $ | 18,086,163 |   |   | $ | 13,498,839 |   |
| United States federal corporate income tax rate                          |   |                 | 34        | %      |                |   | 34 | % |   |   | 34 | % |   |   | 34 | % |
| Income tax computed at United States statutory Corporate income tax rate |   |                 | 2,858,912 |   |                |   | 1,719,985 |   |   |   | 6,149,295 |   |   |   | 4,589,605 |   |
| Rate differential for PRC earnings                                       |   |                 | (756,770  | )      |                |   | (455,291 | ) |   |   | (1,627,754 | ) |   |   | (1,214,896 | ) |
| Non-deductible expenses and non-taxable income                           |   |                 | 142       |   |                |   | 11,592 |   |   |   | 52,927 |   |   |   | 15,500 |   |
|                                                                     |   |                 |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                                                 |   | $                    | 2,102,284 |   |                | $      | 1,276,286 |   |   | $ | 4,574,468 |   |   | $ | 3,390,209 |   |

----

|                                                        |   | For the three months |       |   | For the nine months |   |
|-------------------------------------------------------------|--------|----------------------|------------|--------|---------------------|--------|
|                                                        |   | Ended September 30,  |       |   | Ended September 30, |   |
|                                                        |   | 2010                 |       |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                        |   | (Unaudited)          |       |   | (Unaudited)         |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                        |   |                 |       |   |                |   |   |   |   |   |   |   |
| Income available to common shareholders(basic and diluted): |   |                 |       |   |                |   |   |   |   |   |   |   |
| - Net income                                                |   | $                    | 5,927,905  |   |                | $      | 3,555,544 |   |   | $ | 12,700,993 |   |   | $ | 9,502,112 |   |
|                                                        |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares:                          |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| - Basic and diluted                                         |   |                 | 10,000,000 |   |                |   | 9,000,000 |   |   |   | 9,846,154 |   |   |   | 9,000,000 |   |
|                                                        |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share                                        |   |                 |       |   |                |   |   |   |   |   |   |   |   |   |   |   |
| - Basic                                                     |   | $                    | 0.59       |   |                | $      | 0.40 |   |   | $ | 1.29 |   |   | $ | 1.06 |   |
| - Diluted                                                   |   | $                    | 0.59       |   |                | $      | 0.40 |   |   | $ | 1.29 |   |   | $ | 1.06 |   |

----

|                                                 |   | September 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 |
|---------|----------------------------------|

----

|                                                  |   | (Unaudited) |   |
|-------------------------------------------------------|--------|-------------|--------|
| Payable within:                                       |   |        |   |
| - remainder of fiscal year ending December 31, 2010   |   | $           | 15,945 |   |
| - fiscal year ending December 31, 2011                |   |        | 31,890 |   |
| - fiscal year ending December 31, 2012 and thereafter |   |        | -      |   |
| Total                                                 |   | $           | 47,835 |   |

|                                 |   | For the Three months Ended |       |   | For the Nine months Ended |   |
|--------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                 |   | September 30,              |       |   | September 30,             |   |
|                                 |   | 2010                       |       |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                 |   | (Unaudited)                |       |   | (Unaudited)               |   |   | (Unaudited) |   |   | (Unaudited) |   |
| Net revenue from external customers: |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Sports shoes                         |   | $                          | 20,303,647 |   |                      | $      | 11,957,270 |   |   | $ | 44,860,191 |   |   | $ | 33,936,477 |   |
| Sports accessories                   |   |                       | 12,976,162 |   |                      |   | 9,581,403 |   |   |   | 30,787,415 |   |   |   | 25,225,027 |   |
| Total                                |   | $                          | 33,279,809 |   |                      | $      | 21,538,673 |   |   | $ | 75,647,606 |   |   | $ | 59,161,504 |   |

----

| INCOME STATEMENT                                                      |   | Three months ended September 30, |        |
|-----------------------------------------------------------------------|--------|----------------------------------|-------------|
| (USD)                                                                 |   | 2010                             |        |   | 2009 |   |
|                                                                  |   |                             |        |   |   |   |
| Sales                                                                 |   |                             | 33,279,809  |   |   |   | 21,538,673 |   |
| Cost of sales                                                         |   |                             | (23,395,963 | ) |   |   | (15,287,565 | ) |
| Gross profit                                                          |   |                             | 9,883,846   |   |   |   | 6,251,108 |   |
|                                                                  |   |                             |        |   |   |   |   |   |
| Selling expenses                                                      |   |                             | (776,424    | ) |   |   | (583,369 | ) |
| General and administrative expenses                                   |   |                             | (700,149    | ) |   |   | (652,901 | ) |
| Income from operations                                                |   |                             | 8,407,273   |   |   |   | 5,014,838 |   |
|                                                                  |   |                             |        |   |   |   |   |   |
| Interest income                                                       |   |                             | 18,850      |   |   |   | 82,493 |   |
| Interest expense                                                      |   |                             | (17,557     | ) |   |   | (38,551 | ) |
|                                                                  |   |                             | 1,293       |   |   |   | 43,942 |   |
| Income before income tax                                              |   |                             | 8,408,566   |   |   |   | 5,058,780 |   |
| Provision for income tax                                              |   |                             | (2,102,284  | ) |   |   | (1,276,286 | ) |
| Net income                                                            |   |                             | 6,306,282   |   |   |   | 3,782,494 |   |
| Income attributable to non-controlling interests                      |   |                             | (378,377    | ) |   |   | (226,950 | ) |
|                                                                  |   |                             |        |   |   |   |   |   |
| Net income attributable to China Sports shareholders                  |   |                             | 5,927,905   |   |   |   | 3,555,544 |   |
| Other comprehensive income attributable to China Sports shareholders: |   |                             |        |   |   |   |   |   |
| Foreign currency translation adjustments                              |   |                             | 631,270     |   |   |   | 11,247 |   |
| Comprehensive income attributable to China Sports shareholders        |   |                             | 6,559,175   |   |   |   | 3,566,791 |   |
| Comprehensive income attributable to noncontrolling interest          |   |                             | 418,671     |   |   |   | 227,668 |   |
|                                                                  |   |                             |        |   |   |   |   |   |
| Total comprehensive income                                            |   |                             | 6,977,846   |   |   |   | 3,794,459 |   |

----

----

| INCOME STATEMENT                                                      |   | Nine months ended September 30, |        |
|-----------------------------------------------------------------------|--------|---------------------------------|-------------|
| (USD)                                                                 |   | 2010                            |        |   | 2009 |   |
|                                                                  |   |                            |        |   |   |   |
| Sales                                                                 |   |                            | 75,647,606  |   |   |   | 59,161,504 |   |
| Cost of sales                                                         |   |                            | (53,370,069 | ) |   |   | (42,394,758 | ) |
| Gross profit                                                          |   |                            | 22,277,537  |   |   |   | 16,766,746 |   |
|                                                                  |   |                            |        |   |   |   |   |   |
| Selling expenses                                                      |   |                            | (2,256,168  | ) |   |   | (1,731,892 | ) |
| General and administrative expenses                                   |   |                            | (2,002,832  | ) |   |   | (1,630,301 | ) |
| Income from operations                                                |   |                            | 18,018,537  |   |   |   | 13,404,553 |   |
|                                                                  |   |                            |        |   |   |   |   |   |
| Interest income                                                       |   |                            | 119,900     |   |   |   | 172,367 |   |
| Interest expense                                                      |   |                            | (52,274     | ) |   |   | (78,081 | ) |
|                                                                  |   |                            | 67,626      |   |   |   | 94,286 |   |
| Income before income tax                                              |   |                            | 18,086,163  |   |   |   | 13,498,839 |   |
| Provision for income tax                                              |   |                            | (4,574,468  | ) |   |   | (3,390,209 | ) |
| Net income                                                            |   |                            | 13,511,695  |   |   |   | 10,108,630 |   |
| Income attributable to non-controlling interests                      |   |                            | (810,702    | ) |   |   | (606,518 | ) |
| Net income attributable to China Sports shareholders                  |   |                            | 12,700,993  |   |   |   | 9,502,112 |   |
| Other comprehensive income attributable to China Sports shareholders: |   |                            |        |   |   |   |   |   |
| Foreign currency translation adjustments                              |   |                            | 855,013     |   |   |   | 20,375 |   |
| Comprehensive income attributable to China Sports shareholders        |   |                            | 13,556,006  |   |   |   | 9,522,487 |   |
| Comprehensive income attributable to non-controlling interests        |   |                            | 865,277     |   |   |   | 607,818 |   |
| Total comprehensive                                                   |   |                            | 14,421,283  |   |   |   | 10,130,305 |   |

----

----

|                                                 |   | For the nine monthsendedSeptember 30, |       |
|------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                 |   | 2010                                       |       |   | 2009 |   |
|                                                 |   | (US$)                                      |       |
| Net cash provided by operating activities            |   | $                                          | 7,967,400  |   |   | $ | 10,558,307 |   |
| Net cash used in investing activities                |   |                                       | (4,213,031 | ) |   |   |  (3,130,619 | ) |
| Net cash used in financing activities                |   |                                       | (125,508)  |   |   |   |  (399,584) |   |
| Effect of exchange rate on cash and cash equivalents |   |                                       | 521,523    |   |   |   | 9,258 |   |
| Cash and cash equivalents at beginning of period     |   |                                       | 17,387,929 |   |   |   | 7,400,057 |   |
| Cash and cash equivalents at end of period           |   | $                                          | 21,538,313 |   |   | $ | 14,437,419 |   |

----

| 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: November 15, 2010 | By:                                  | /s/ Mendoza Anding Lin |
|                         |                                 | Mendoza Anding Lin |
|                         |                                 | President, Chief Executive Officer and Chairman |

| Date: November 15, 2010 | By:    | /s/ Wing Sang Tommy Lo                                   |
|-------------------------|--------|----------------------------------------------------------|
|                    |   | Wing Sang Tommy Lo                                       |
|                    |   | Chief Financial Officer and Principal Accounting Officer |