Overview
The 361° brand was founded in 2003, with its brand positioning centered on “Professional +
Youthful.” It focuses on mid-price range product lines within the mass consumer market,
covering multiple segments such as running, basketball, comprehensive training, children’s
products, and outdoor sports. The company consistently advances its “Single Focus, Multi
Brand, Globalization” strategy. With the main brand 361° at its core, it is complemented by
sub-brands including 361° Kids, 361° International Line, forming a multi-layered product
matrix. Currently, 361° products are popular across major cities and regions in China, and
the brand is gradually expanding into overseas markets. As of June 30, 2025, the number of
361° retail stores in mainland China reached 5,669, most of which are located in third-tier
and below cities in China. The number of 361° Kids sales outlets stood at 2,494, while the
number of 361° International sales outlets was 1,357.
Digital Transformation Yields Notable Results, Overseas Market Expansion Continues
In the third quarter of 2025, the 361° main brand and its children’s wear brand both
recorded a 10% year-on-year increase in offline retail sales, while e-commerce platform
retail sales achieved a 20% year-on-year growth. In the first half of 2025, the company’s
revenue reached RMB 5.705 billion, representing an 11% increase compared to the same
period last year. The revenue breakdown by product category is as follows: Footwear
contributed RMB 3.29 billion, accounting for 57.6% of total revenue; apparel contributed
RMB 2.12 billion, accounting for 37.2%; accessories contributed RMB 210 million, accounting
for 3.7%; other products contributed RMB 90 million, accounting for 1.5%. From the
perspective of channel structure, online-exclusive products from the e-commerce business
contributed RMB 1.82 billion in revenue, representing 31.8% of the total and marking a 45%
year-on-year growth. This indicates that the effectiveness of digital transformation
continues to be evident. In terms of regional distribution, the domestic market remains the
core sales market for the company. 361°’s international business contributed 1.5% to total
revenue, with a year-on-year growth of 19.7%. This growth primarily stemmed from
expansion in Southeast Asia, the Americas, Europe, and regions along the “Belt and Road”
initiative. The company will continue to strengthen its presence in overseas markets going
forward. We believe the company still possesses significant room for development in
international markets. With sustained brand-building efforts overseas, the company may
contribute more incremental revenue in the coming years.
Gross Margin Remains Stable for Years, Demonstrating Profit Resilience
In the first half of 2025, the company’s gross margin was 41.5%. Since 2021, the gross
margin has remained above 40% for four consecutive years. The selling and distribution
expense ratio was 18.2%, showing a slight increase year-on-year, mainly due to the company
allocating more resources to advertising and promotional activities, particularly brand
promotion via e-commerce platforms. Online sales are currently the mainstream trend in
the consumer industry, and we anticipate the company will invest more resources in e
commerce platforms in the future, which may keep the selling and distribution expense ratio
on an upward trend. The net profit margin attributable to shareholders was 15.3%,
representing an increase of 2.94 percentage points year-on-year and 3.45 percentage points
quarter-on-quarter, demonstrating its profit resilience across economic cycles. Earnings per
share were RMB 0.41, up 8.6% year-on-year. The debt-to-asset ratio stood at 34.3%. Over
the past four years, the company’s debt-to-asset ratio has consistently remained below 30%,
indicating a healthy financial structure and relatively low debt pressure.
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本科主修市場行銷和英語，並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師，主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作，對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.
