The 361 Degrees International Limited’s Board of Directors informed its shareholders and potential investors of the company that, based on the unaudited consolidated management accounts of the Group for the six months ended June 30, 2023, and the information of the Group available to the Board, the profit attributable to the equity shareholders of the company for the six months ended June 30, 2023, is expected to increase by not less than 25 percent as compared with the profit attributable to the equity shareholders of the company for the six months ended June 30, 2022.

The company recently reported its retail sales (in terms of the retail value) of 361° core branded products for the second quarter of 2023 posted low-teens growth compared to the comparable period of 2022 (read SGB Media‘s coverage here).

The improvement in the performance of the Group was said to be mainly attributable to:

  1. The steady increase in revenue due to the recovery of the market situation since the PRC government adjusted its pandemic preventive measures in early 2023, as well as the continuous improvement of innovation of the Group, and the launch of more new products with high functionality and premium;
  2. Strengthening of credit management on the Group’s distributors which led to a reduction of the aggregate provision for expected credit losses on trade receivables made in previous years;
  3. Government grants received by the company; and
  4. The increase in equity interest in a subsidiary that is engaged in the e-commerce business.

The information contained in the announcement was said to be based solely on the company’s preliminary evaluation of the information and financial figures currently available to the Board, which has not been audited nor reviewed by the company’s auditors and may be subject to further adjustments.

This announcement was made by 361 Degrees International Limited, together with its subsidiaries, pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).