361 Degrees International Ltd. reported an uptick in profits in the first half as sales grew 17.6 percent to RMB 3,653.8 million ($532 mm).

The sales gains were mainly due to 361 Degrees’ successful marketing strategy in diversifying its product range to cover different age groups across youth. Revenues of the Group’sGroup’s two core products, footwear and apparel grew by 7.2 percent to RMB1,480.3 million and 18.4 percent to RMB1,382.4 million, respectively. In addition, revenues from 361° Kids increased by 37.1 percent year on year to RMB683.1 million.

During the period under review, revenues from the sales of web-exclusive products on e-commerce increased by 60.3 percent year on year to RMB781.8 million.

During the period under review, the gross profit was RMB1,515.6 million, representing a year-on-year increase of 16.6 percent. Gross margin maintained stable at 41.5 percent. Since the Group redeemed the 7.25 percent senior notes due in 2021, interest expenses were reduced significantly, coupled with a lower effective tax rate, and the profit attributable to equity shareholders increased 37.2 percent to RMB550.9 million, equivalent to earnings per share of RMB26.7 cents.

Cash and cash equivalents (including bank deposits, cash in hand, and fixed deposits with original maturities not exceeding three months) amounted to RMB 3,423.5 million, representing an increase of 2.5 percent compared to December 31, 2021.

Given the continuous outbreak of pandemics around the world, the uncertainty of the macroeconomic environment and the company’s development strategy, the Board decided not to recommend an interim dividend for the six months to preserve cash for the long-term financial health of the company and bolster its ability to tide over the challenging business environment.

Ding Wuhao, executive director and president of 361°, said, “Looking ahead, we are confident about the prospects of the sports industry. As a leading sports goods enterprise in China, 361° is committed to becoming a globally respected sports brand. In the future, we will continue to adhere to the brand position of ‘professionalism, youthfulness and internationalization’ and uphold the brand belief of ”One Extra Degree of Passion.” While we strive to seize new opportunities and achieve breakthroughs, we will actively bear social responsibility and create value for shareholders, employees and society.”

Photo courtesy 361°