361 Degrees International Limited saw fist half (H1) revenue increase 19.2 percent year-over-year (y/y) to RMB 5.14 billion, compared to RMB 4.31 billion in H1 2023. The strong growth was said to be mainly due to the Group’s continuous efforts in channel rollout and marketing to promote online and offline omni-channel operations.

361 Degrees trades and reports in renminbi (RMB) or “Yuan” currency.

The Group’s product categories each posted double-digit growth for the six-month period ended June 30:

  • Revenue from 361° Footwear products increased 20.1 percent y/y;
  • Revenue from 361° Apparel products grew 15.7 percent y/y;
  • Revenue from 361° Kids products increased 24.2 percent y/y to RMB 1.13 billion, accounting for approximately 22.0 percent of the Group’s total revenue in the half; and
  • Revenue from 361° Online-exclusive products surged 16.1 percent to RMB 1.25 billion.

During the first half, contribution of the Group’s e-commerce business increased by 16.1 percent y/y to RMB 1.25 billion, accounting for approximately 24.4 percent of the Group’s total revenue. The company said e-commerce sales continues to perform well during the “618” period (see additional SGB Media coverage at bottom).

The company is clearly outpacing the growth in the China domestic market. According to outside research cited by the company, the total retail sales of consumer goods nationwide in China in the first half of 2024 amounted to RMB23.6 trillion, representing an increase of 3.7 percent year-over-year. Specifically, online retail sales of physical goods nationwide amounted to RMB5,959.6 billion, representing a increase of 8.8% year-over-year.

First half gross profit was RMB 2.13 billion, representing an increase of 18.3 percent, compared to RMB 1.80 billion in the 2023 first half. Gross margin was 41.3 percent of net sales in the first half, representing a decrease of 40 basis points versus the 2023 first half.

The profit attributable to equity shareholders increased 12.2 percent to RMB 789.7 million (H1 2023: RMB 703.6 million), equivalent to earnings per share of RMB 38.2 cents.

As at 30 June 2024, cash and cash equivalents (including bank deposits and cash in hand, and fixed deposits with original maturities not exceeding three months) amounted to RMB 3.41 billion (31 December 2023: RMB 3.60 billion).

Trade and bills receivable turnover days decreased from 149 days to 148 days as compared to that on December 31, 2023.

Inventory turnover days dropped from 93 days to 85 days as compared to that on December 31, 2023.

The Board has declared an interim dividend for the six months ended June 30, 2024 of HKD$16.5 cents (equivalent to RMB 15.4 cents) per ordinary share, representing a dividend payout ratio of 40.3 percent.

Image courtesy 361 Degrees International Limited