Hong Kong-based 361 Degrees International, Ltd. reported earnings grew 24.2 percent in the year ended December 31 as sales expanded 17.3 percent.

Revenue increased to approximately RMB6,960.8 million from RMB5,933.5 million a year ago. The revenue of the Group’s two core products, footwear and apparel, grew by 12.7 percent to RMB2,853.6 million and 14.0 percent to RMB2,447.5 million and accounted for 41.0 percent and 35.2 percent of the Group’s total revenue, respectively. In addition, the revenue from 361° Kids increased by 30.3 percent YoY to RMB1,442.2 million, accounting for 20.7 percent of the Group’s total revenue.

During the year under review, due to the improvement of product quality, an effective campaign of e-commerce products and optimization of operational efficiency, the revenue from the sales of web-exclusive products from e-commerce business increased by 37.3 percent YoY to RMB1,685.4 million, accounting for 24.2 percent of the Group’s total revenue

During the year under review, the gross profit was RMB2,820.6 million (2021: RMB2,472.4 million), representing a YoY increase of 14.1 percent. Gross margin maintained stable at 40.5 percent. Due to the effective expense control, the profit attributable to equity shareholders increased by 24.2 percent to RMB747.1 million (2021: RMB601.7 million), equivalent to earnings per share of RMB36.1 cents.

Operational highlights

  • Deepened the brand positioning of “professional, youthful and internationalized.”  Implemented a dual-drive operating strategy of “professional sports + sports fashion” and focused on resources to enhance brand competitiveness;
  • The number of POS of 361° core brand and 361° Kids in mainland China increased by 210 percent and 392 percent, respectively, compared to 2021. The store sizes increased, and the percentage contribution of the latest image stores, stores in first- and second-tier cities, and department stores continued to be further optimized. Retail sales continued to achieve high performance, with enhanced management through a smart-retail system;
  • Spokesperson Spencer Dinwiddie brought the newly-launched flagship basketball shoes Big3 3.0 and exclusive signature basketball shoes DVD1 to international attention in 2022;
  • Further diversified brand resources matrix by signing Gao Qunxiang and Ren Qing as 361° skateboarding ambassadors, signing Paraboy as 361° e-sports ambassador, signed Gong Li, the Karate World Champion, as the spokesperson for 361° Women’s Sports Style, and launched the S-SKN 1.0 series of women’s training products;
  • Own-brand events, including “3#Track” and “Light Up,” were organized nationwide, empowering core product categories such as running and basketball, forming an exclusive sports ecosystem integrating online and offline channels, and enhancing the influence of the 361° brand;
  • Collaborated with IPs, including Three-Body Problem, Kakao Friends, Lay’s, Sanxingdui, Pepsi, and SpongeBob SquarePants to launch co-branded products, integrating fashion trends such as “China-Chic”, “science fiction” and “meta-universe,” and gaining visibility in the market;
  • Introduced the second growth curve of 361° Kids, positioning the brand as “Youth Sports Expert,” and aligned with the brand statement “Chasing Your Love!” to enhance professional functionality, health technology and the latest fashion trends. The Group expanded its first kids and adolescents sports market with a differentiated strategy;
  • Improved the efficiency of e-commerce operations, and deepened cooperation with e-commerce platforms such as Tmall, JD, and Vipshop, also collaborated with global brand ambassador GONG Jun to develop the exclusive “Track” series and launch creative marketing and successfully introduced NFT digital collection to upgrade digital marketing and promotion effects in multiple dimensions;
  • Drove product breakthroughs by scientific research and innovation, highlighting the brand’s professional advantages. The development of running shoes and basketball shoes gradually lead to matrixes, with running shoes winning awards subsequently, helping runners achieve new personal best records. The product also helped spokesperson LI Zicheng break the Chinese half marathon record that had been sealed for 13 years; and
  • Supported the Asian Games for four consecutive times, announced a new brand slogan of “One Degree Beyond Chinese Passion” for the Asian Games and was awarded the “Outstanding Contribution Award of the Asian Games” by the Olympic Council of Asia.

Outlook
Looking ahead, Ding Wuhao, executive director and CEO of 361° Group, said: “This year marks the 20th anniversary of the establishment of 361°. Over the past two decades, we have been forging ahead with determination and hard work. We started as a small manufacturer of sports footwear and gradually grew into a comprehensive sporting goods group, becoming a listed company with outstanding commercial and social value. Looking forward, the sports industry will become an important engine of national economic growth, with bright development prospects. 361° will continue to focus on this upward path by firmly adhering to the brand positioning of “professional, youthful, and internationalized.

“We will continue to develop in the Chinese sports apparel market by introducing products and services that convey the brand spirit of “One Degree Beyond” to consumers, actively promote product scientific research and innovation, deepen brand value, and lay a solid foundation for long-term quality development, creating sustainable development value for shareholders, employees, and society.”

Regarding the Hangzhou Asian Games held this year, Wuhao continued, “The 19th Hangzhou Asian Games 2022 will play a key role in rapidly increasing 361°’s influence in the domestic and international markets. 361° has sponsored the Asian Games for four consecutive times and this time we have proposed a new brand slogan for the Asian Games, “One Degree Beyond Chinese Passion. This fully reflects our strategic determination and firm commitment to supporting sports. We believe that on the stage of the Asian Games, 361° will make every effort to help the Asian Games to be successfully held.”