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August 2016

Interim Results Corporate Presentation

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This presentation is prepared by Xtep International Holdings Limited (the “Company”) and is solely for the purpose

of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to

solicit an offer to buy or form any basis of investment decision for any class of securities of the Company in any

jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a

brief summary in nature and do not purport to be a complete description of Company, its business, its current or

historical operating results or its future prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or implied.

The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether

financial or otherwise, contained in this presentation.

This presentation contains certain forward-looking statements with respect to the financial condition, results of

operations and business of the Company. These forward-looking statements represent the Company’s

expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could

cause actual results, performance or events to differ materially from those expressed or implied in such statements.

Certain statements, such as those that include the words “potential”, “estimated”, “expect”, “anticipates”, “objective”,

“intends”, “plans”, “believes”, “estimates”, and similar expressions or variations on such expressions may be

considered “forward-looking statements”.

Forward-looking statements involve inherent risks and uncertainties. Readers should be cautioned that a number

of factors could cause actual results to differ in some instances materially, from those anticipated or implied in any

forward-looking statement. Forward-looking statements speak only as of the date they are made, and it should not

be assumed that they have been reviewed or updated in the light of new information or future events. Trends and

factors that are expected to affect the Company’s results of operations are described in the “Financial Analysis”,

“Business Review” and “Future Plans”.

Disclaimer

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Operational Highlights Financial Highlights

Overview

Footwear revenue increased 16.2% and footwear gross profit margins

increased to 44.2% (1H 2015:43.5%) due to well acceptance of

XTEP’s professional running products

E-commerce revenue increased approx. 100% and accounted for

approx. 15% of overall revenue

Apparel revenue reduction was affected by the unusual weather

conditions in China this year, as well as a conscious adjustment of the

Group’s products to reduce sports lifestyle apparel products to

reinforce the professional sportswear image. Apparel gross profit

margin increased to 41.7% (1H 2015: 39.1%) from this effort due to

increase the proportion of functional apparel

Profit attributable to equity shareholders up by 10.6% YoY to RMB

380.1 million, net profit margin rose by 0.6 pp to reach 15.0%

Significant improvement on operating cashflow turning positive to

RMB353.3 million (1H 2015: cash outflow RMB6.4 million) as overall

working capital days reduced by 28 days to 57 days (1H 2015: 85

days)

Interim dividend per Share of HK10.5 cents, dividend payout ratio

increased to 52.4% (1H 2015: 52.0%)

XTEP brand continued to strengthen repositioning as a

professional sports brand with functional and stylish products

Branding: increased major marathon sponsorships to 12 (1H

2015: 5), continued to be sportswear sponsor of the most

number of marathons in China

Products: improved professional running series and introduced

first generation football products

Retail management: continued to flatten retail channels to

improve retail inventory management. Leading to reduction of

the Group’s inventory turnover days to 55 days (1H 2015: 72

days) and the amount of the Group’s inventory was reduced by

11% YoY

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Result Highlights

For the six months ended 30 June

(RMB mn) 2016 2015 Change

Revenue 2,534.6 2,390.6 6.0%

Gross Profit 1,098.5 999.4 9.9%

Profit Attributable to Equity Shareholders 380.1 343.5 10.6%

Basic Earnings per Share (RMB cents) 17.25 15.86 8.8%

Gross Profit Margin (%) 43.3 41.8 1.5 pp

Operating Profit Margin (%) 23.0 20.9 2.1 pp

Net Profit Margin (%) 15.0 14.4 0.6 pp

ROE (%) 15.3 14.4 0.9 pp

Interim Dividend (HK cents per Share) 10.5 10.0 5.0%

Interim Dividend Payout Ratio(%) 52.4 52.0 0.4 pp

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Sustainable Revenue and Gross Profit Margin Growth

Revenue and Gross Profit Margin

Growth in overall performance due to:

1. Effective control to maintain healthy inventory level in retail channels

2. Successful repositioning of XTEP brand as a

professional sports brand which focuses on Running

3. Overall gross margin driven by increased proportion of

functional wear in product mix

4. Significant increase in revenue contribution from e-

commerce business

(RMB mn)

2,098.0 2,135.0

2,390.6

2,534.6

40.2% 40.4%

41.8%

43.3%

1H 2013 1H 2014 1H 2015 1H 2016

Revenue Gross Profit Margin

Growth in overall performance

Revenue (RMB mn)

Gross

Profit Margin

Footwear 1,738.3 16.2% 44.2% 0.7 pp

Apparel 736.3 12.8% 41.7% 2.6 pp

Accessories 60.0 16.7% 38.9% 2.6 pp

Total 2,534.6 6.0% 43.3% 1.5 pp

1.5 pp

6.0%

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Revenue Breakdown & Product Analysis

Overall Revenue Mix

Stable overall revenue mix while footwear remains as the revenue driver

1H 2016

RMB2,534.6mn

68.6%

2.4%

Footwear

Apparel 29.0%

1H 2015

RMB2,390.6mn

62.5%

35.3%

2.2%

Accessories

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Revenue Breakdown & Product Analysis(Con’t)

Footwear Products Driving Revenue Growth

(RMB mn)

1,495.0

1,738.3

43.5%

44.2%

1H 2015 1H 2016

Revenue Gross Profit Margin

0.7 pp

16.2%

Higher revenue and gross margin driven by professional running footwear with better quality and increased ASP

Professional footwear product sales remained strong despite weather and seasonality volatilities

3 professional running series upgraded and continued to be well-received by consumers:

“Dynamic Foam”

“Reactive Coil”

“Air Mega”

Co-developed SoftpadTM with the Dow Chemical Company for XTEP exclusive use

Introduced other new product features for added performance and comfort :

“Xtep-Aroma”

“Dow”

“X-Flex”

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Apparel Products’ Gross Profit Margin Improved

(RMB mn)

844.2

736.3

39.1%

41.7%

1H 2015 1H 2016

Revenue Gross Profit Margin

2.6 pp

12.8%

Higher margin driven by professional running

apparel with better quality and increased ASP

Retail sales were impacted by unusual weather

conditions, the Group exercised caution in

inventory management and adjusted product

delivery schedules accordingly

Intentionally decreased proportion of lifestyle

sports product offerings to align with brand

positioning toward professional sports brand

Upgraded running features well-received by

customers:

“Xtep Sports Elastic Technology” (X-S.E.T.)

“XTEP-FROZEN”

“XTEP-DRY”

Introduced other new product features:

DupontTM Sorona® cotton

Revenue Breakdown & Product Analysis(Con’t)

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Profit Attributable to Shareholders

Strong Growth in Profit Attributable to Shareholders

(RMB mn)

340.9

284.2

343.5

380.1

16.2%

13.3% 14.4%

15.0%

1H 2013 1H 2014 1H 2015 1H 2016

Profit Attributable to Shareholders

Net Profit Margin

0.6 pp

10.6%

Profit attributable to shareholders

increased by 10.6% mainly due to visible

expansion in profit margins

The Group’s net profit margin increased by

0.6 pp to 15.0% (1H 2015: 14.4%)

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Consistent High Dividend Payout Ratio

Stable Increase of Interim Dividend Payout Ratio

50.8

51.6

52.0

52.4

1H 2013 1H 2014 1H 2015 1H 2016

Payout ratio (%)

Dividend per Share

Interim: HK 10.5 cents

1H 2016

Payout Ratio

52.4%

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Advertising & Promotional Costs

Operating Expenses Analysis

13.4%

9.3%

1H 2015 1H 2016

4.1 pp

(As % of revenue)

Aligning with XTEP’s strategic change to

professional sports brand with functional and

stylish products, sports related sponsorship

spending increased while traditional entertainment

marketing spending decreased

Allocation of full year spending will skew toward

the second half due to major sporting events such

as EuroCup and Olympics

For the six months ended 30 Jun

(RMB mn) 2016 2015 Change

A&P cost 234.6 321.0 26.9%

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Research & Development Costs

For the six months ended 30 Jun

(RMB mn) 2016 2015 Change

R&D cost 58.0 48.8 18.8%

2.0%

2.3%

1H 2015 1H 2016

0.3 pp

(As % of revenue)

Operating Expenses Analysis

International Design Team – Continued to hire

design talent from international brands to build

world class products

Running Research Center – Building China’s first

dedicated running research laboratory with global

leading technology and experienced researchers,

in order to develop the best fitting shoes for

Chinese runners

Research in Technical Material – Partnered with

major international fiber suppliers such as Toray

from Japan and the Dow Chemical Company from

the U.S. to co-develop industry leading materials

together for XTEP’s exclusive use

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Strong Cash Balance

(RMB mn) 30 Jun 2016 31 Dec 2015

Treasury Deposits and Bank Deposits 1,720.6 869.8

Cash and cash equivalent 2,720.3 3,607.0

Total cash and cash equivalent 4,440.9 4,476.8

Bank borrowings (1,554.5) (1,610.5)

Net cash and cash equivalent 2,886.4 2,866.3

Gearing ratio 18.9% 19.8%

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Cash from Operations

Strong improvement in operating

cashflow due to better working capital

management

6.4

353.3

(RMB mn)

Strong Operating Cashflow

1H 2015

1H 2016

Overall working capital turnover days

improved by 28 days to 57 days

(1H 2015: 85 days)

98

89

85

57

1H 2013 1H 2014 1H 2015 1H 2016

(Days)

Working Capital Turnover days

28 days

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Inventory Turnover Days

Significant Reduction on Inventory Turnover

Improvements in inventory days

mainly due to:

Stringent stock control through prudent

products ordering instructions

Flattened distribution channels

Real-time retail inventory monitoring and

management

(days)

86

94

72

55

1H 2013 1H 2014 1H 2015 1H 2016

17 days

As at 30 June

(RMB mn) 2016 2015 Change

Inventory 463.1 520.2 11.0%

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Solid Balance Sheet

(RMB mn) 30 June 2016 31 Dec 2015 Change

Current Assets 7,140.2 7,050.8 1.3%

Current Liabilities 2,979.5 2,966.4 0.4%

Net Current Assets 4,160.7 4,084.4 1.9%

Current Asset Ratio (times) 2.4x 2.4x Same

Shareholders’ Equity 5,046.5 4,851.9 4.0%

Total Net Assets per Share RMB 2.31 RMB 2.22 3.9%

2016 CAPEX approx. RMB 100-150 mn

Sustainable growth supported by a solid and healthy balance sheet

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Production Capacity Allocation

Footwear Production Apparel Production

85% 15% 44% 56%

Self produced Outsourced Self produced Outsourced

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XTEP Spokesperson

Xie Zhenye

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Business Review

A Year of Consolidating the Group’s Internal Resources Towards the Post-Change

Direction of Professional Sports Brand with Functional and Stylish Products

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XTEP Spokesperson

Andriy Shevchenko

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Running Remains the Core Sports Category Focus for the Group

Sports Marketing in 1H 2016

Wuhan Marathon (武漢馬拉松)

Nanjing International Women’s Half Marathon (南京國際女子半程馬拉松)

Beijing Half Marathon (北京半程馬拉松)

Yangzhou Jianzhen International Half Marathon (揚州鑒真國際半程馬拉松賽)

Cross-strait Ladies Half Marathon (海峽兩岸(廈門海滄)女子半程馬拉松賽)

Tianjin Wuqing Development Area Cup International Marathon (天津武清開發區杯國際馬拉松賽)

Please kindly provide the logo

Carried the No. 1 sportswear sponsor position into 2016 with 12 major marathons sponsored as at 30

June 2016 (increased from 5 in the same period of 2015) in the major cities below, and will be involved in

over 40 running events in 2016

Xtep Runner’s Club

Formed in Aug 2012, over 33,000 active runners were registered as members as at 30 June 2016

An important running community gathered around XTEP’s products and sponsored activities, and helps

the Group collected first hand feedback from the frequent runners to help improve XTEP’s products

Xiamen International Marathon (廈門國際馬拉松賽)

Standard Chartered Hong Kong Marathon (渣打香港馬拉松)

Hainan International Marathon (海南國際馬拉松)

Kunming Marathon (昆明馬拉松)

Chongqing International Marathon (重慶國際馬拉松賽)

China Zheng-kai International Marathon (中國鄭開國際馬拉松賽)

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Organized and Sponsored 12 Other Running Events

Sports Marketing in 1H 2016 (Con’t)

3.21 Running Festival (3·21跑步節 )

ILLUMI RUN (炫彩夜跑 ) (Beijing, Guangzhou)

5km night run that ends with a

concert event, perfectly

representing XTEP’s belief in

running as both a competitive

sport and a fun social event Running as another

method to socialize

and meet

Mr./Ms. right

Xtep Happy 10K (特步歡樂跑 – 中國10公里錦標賽)

(Shanghai, Guangzhou, Chongqing,

Changzhou, Suzhou)

China’s first 10km run championship

circuit

Find Mr. Right Love

Marathons

(北西愛情馬拉松)

(Hangzhou, Chengdu,

Guangzhou, Beijing )

Offline

• organized ten-cities running events

with the same start time

• In-store sales promotions and

limited edition products sold

Online

• launched a 100-cities “3.21 Real

Runner” online Marathon with

Joyrun

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Football – Blade Project

Comprehensive football strategy announced on 22 Apr 2016

Focuses on developing wide exposure for XTEP in the football field

Goal to serve 5 million Chinese youth football population in 5 years

Continued to sponsor XTEP China College Futsal League (“CCFL”), XTEP

China University Football League (“CUFL”), and ZSFL Xtep League

(浙江省中小學生校園足球聯賽)

Added sponsorship of China High School Football League, reaching over

20,000 players each year

Sports Marketing in 1H 2016 (Con’t)

Established partnerships with many Chinese youth football education and

training services providers, who will promote XTEP products through their events

Signed Mr. Andriy Shevchenko, former European Footballer of the Year and

current head coach of the Ukraine National Football Team, as XTEP football

spokesperson

Launched professional football products “Blade I” in stores in June 2016

Continue to sponsor football teams and clubs: China All Star Football Team

(中國明星足球隊), China Football Press United (中國足球記者聯隊), Hong Kong

Rangers FC (香港標準流浪足球會), Hong Kong All Star Sports Association

(香港明星足球隊), and La Liga, Villarreal C.F. (Spanish National League)

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Sports Celebrity Endorsement

Sports Marketing in 1H 2016 (Con’t)

Xie Zhenye 謝震業

Part of China’s 4x100m relay Olympic 2016 team and competed in the 100m dash individually

Made history with his 4x100m run teammates in Aug 2015, setting the best record by an Asian team, winning silver medal at the Beijing IAAF World Championships

Xie and his teammates also broke Asian records for 4x100m run in Oct 2014 at the Incheon Asian Games

Trentavis Friday

The 200m dash gold medal winner at the IAAF World Junior Championships in Athletics in Jul 2014

Currently ranked 1st in the world junior ranking in 200m run

Participated in 20km race walk in 2016 Olympic

First PRC gold medal winner of 2012 Olympic 20km race walk event

Andriy Shevchenko

Head coach of the Ukraine National Football Team

European Footballer of the Year in 2004

Second highest scorer in the history of the club, with 175 goals scored for A.C Milan

Record total 375 goals during his 18 years football career

Zhao Qinggang 趙慶剛

2014 Asia record holder for the javelin event

Chen Ding 陳定

Kazakhstan National Track and Field Team

Wears XTEP clothes during all world competitions, such as IAAF World Championships and Olympics

Olga Rypakova is one of the world’s leading triple jump athletes who won Gold Medal in the 2012 Olympics and Bronze Medal in the 2016 Olympics

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Celebrity Spokespersons

Entertainment Marketing in 1H 2016

謝霆鋒

Nicholas Tse 杜天皓 Calvin Tu

李易峰 Li Yifeng

林珍娜 Im Jin-ah,

aka “Nana”

UNIQ

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Entertainment Marketing in 1H 2016 (Con’t)

Please confirm

XTEP’s brand image of professional sports brand with stylish and functional products was strengthened with overall focus on sports marketing,

while retaining some elements of traditional entertainment marketing

Category Partners TV Program Sponsorships

TV

Partners

Internet

Partners

Anhui Satellite TV

CCTV Kids Channel

“Run For Time”

(全員加速中)

“Let’s Go, Boys and Girls”

(男生女生向前衝)

“321 Go”

(321動起來)

“Big Hands with Small Hands”

(大手牽小手)

湖南娱乐 Hunan TV

Entertainment Channel

湖南卫视 Hunan Satellie TV

CCTV- 5 Sports Channel

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Upgraded Professional Quality of Functional Running Products

Incorporated more unique technologies to raise the functionality of the three core running

product lines

Running Footwear Products

SoftpadTM (柔軟墊), Xtep-Aroma (芳香科技),

Dow (仙護盾) , X-Flex (易彎折) New Features

Reactive Coil (減震旋) Dynamic Foam (動力巢) Air Mega (氣能環)

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Upgraded Professional Quality of Functional Apparel Products

Apparel Products

Cooling nano-powder in

clothing fibers, which reflects

sunlight and absorbs heat

immediately when it comes into

contact with the skin thus

providing users with a feeling

of instant coolness

Transfer moisture from the skin

quickly to the surface of the

fabric through special

permutation and combination of

yarn, which is then transferred to

the air to achieve the effect of

instant absorption and

immediate dryness

New professional sportswear

fabric in the sportswear market,

the stretchable and elastic

recovery features allow athletes

and sports participants to

stretch freely during exercise

New Features DupontTM Sorona® cotton from U.S.

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The Introduction of XTEP’s First Professional Football Product Series

Football Products

“Blade I” was launched in stores in Jun of 2016

European football cleats designed to fit Chinese football players’ feet and adapt to Chinese artificial grass football facilities.

Tested on and adjusted according to feedback of over 3,000 Chinese collegiate football players

Light weight and quick dry apparels, carried forth the Group’s expertise for providing maximum comfort for athletes

Further technical modification will be unveiled in new product generations in 2017

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Domestic Market

Refined and flattened distribution channel

Total number of XTEP retail stores: approx. 6,800

Total number of XTEP kids brand POS: approx. 600

Flattened distribution channels enhanced the

manageability of stores, adding transparency and

decreasing inventory risk

Total number of exclusive XTEP distributors: 40

Proportion of directly managed retail stores by

distributors is over 50%

Retail Channel Management

Oversea Market

Enhances XTEP’s global exposure, brand value,

and broadens revenue streams

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Real-time Monitoring and Internal APP for Rapid Response and Unified Image

Retail Channel Management (Con’t)

Bi-directional communication via Super Shopping Guide APP allowed quick response to customer

retail behavior anywhere and anytime based on data provided from real-time DRP system

Centralized real-time DRP system covered over 90% of XTEP retail stores as at 30 Jun 2016,

providing insights into customer preference, which allowed for accurate product pricing and product

mix strategies and controlled retail inventory within healthy levels

Unified XTEP’s professional sports image by introducing the “7th generation” retail store layout with

upgraded sportive store display, and monthly new product shipment cycle ensures same products

were sold in all stores at the same time

Universal pricing by adopting the same retail sticker price throughout the nation and setting the

discount range for each tier of store

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E-Commerce

E-commerce Business Complements Offline Retail

Ranked as the Top selling sports footwear brand on

Tmall.com and No. 1 sportswear brand on JD.com in

terms of volume sold

Products sold through Tmall.com, JD.com, XTEP

official website (www.xtep.com.cn), and other well-

established online shopping platforms.

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1 1 1

2Q14 3Q14 4Q14 1Q15 2Q15 4Q15 2Q16

Xtep’s Ranking on Satisfaction Rating on

Introduction of O2O Model

First sportswear company to start using O2O (“Online-to-Offline”) model with distributors, resulting in increased profit for both the Group and distributors

O2O model currently rolled out to 200-300 stores and expected to reach 1,000 stores by end of 2016

Created a win-win situation where:

XTEP products were aligned and popular items in offline stores also generated top sales online

Exponential effect from branding and promotional efforts

Inventory levels were better controlled

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Future Prospects

“Products+” – XTEP as the Runners’ Brand of Choice

Footwear Products

Continue to launch new generation products of the three core running series: “Dynamic Foam”, “Reactive Coil” and “Air Mega”

Air Mega 2.0 to launch in 2H 2016: combining Air Mega and Dynamic Foam materials in shoe sole

“XTEP Motion” to be launched in Q3 2016: the smart running shoes that can accurately monitor and record running history with internal memory, detect running postures and suggest running plans based on user’s data

Introduce a new XTEP “Comfycubes” series that aims for more comfortable and flexible walking with new SoftpadTM technology

Apparel Products

Continue to launch new professional running apparel products with improved functionality and stylish appearance

Introduce the heating technology “X-warm” by creating internal heat circulation between clothing layers in Q4 2016

Launch the 2nd generation of “Xtep-Dry” in 2017 with added functions of being wind resistant and water-proof

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“Products+” – New Product Categories

Future Prospects (Con’t)

New Sports Product Categories

New product categories take XTEP’s organic growth to 2H 2017 and beyond

New Celebrity Product Line

Announced cooperation with Mr. Nicholas Tse to develop a line of related

products under XTEP brand

Mr. Tse will be involved in the designing and promotion of his related product

line

May continue to cooperate with third parties to develop new product lines

that can enhance brand image and increase profitability

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“Sports+” – A Running Ecosystem under XTEP Brand

Future Prospects (Con’t)

The Group envisions being part of and operating a running ecosystem beyond products and sponsorships

Continue to host running events such as “3.21 Running Festival” (321跑步節) which offers multifaceted approach to running, such as:

Celebrity-lead marathons

Online running rewards

Shopping discounts and in-store promotions

Limited edition products

Runner clinics

Xtep Motion Tracker APP will enable a closer bond to form between the Group and runners, and provide tailor-made offerings to individuals based on user data

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“Internet+” – Build a New Era of Seamless Multi-Channel Marketing and Sales

Future Prospects (Con’t)

Harness the power of digital technology for big data gathering, omni-channel sales,

O2O community building and precise marketing

Pilot the smart retail model in 50 stores using technology such as automatic Traffic

counter (客流計數器), e-payment, iBeacon (比肯), Foot scanner (足型掃描器) and

3D e-Fitting system (3D智能試衣系统) to provide more precise services to consumers

Technology can help record customer data for analysis and leads to improvements in

retail efficiency, product design and targeted promotion

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Contacts

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WeChat

Tel : (852) 2152 0333 Email : ir@xtep.com.hk

Xtep Investor Relations Department

Tel : (852) 2864 4817 Email : sprg_xtep@sprg.com.hk

Strategic Financial Relations Limited