361° reported profits rose 45.0 percent in the year ended December 31 as revenue increased by 15.7 percent.

Financial Highlights

  • Revenue increased by 15.7 percent to approximately RMB 5,933.5 million;
  • Gross profit increased by 27.3 percent to approximately RMB 2,472.4 million and gross profit margin increased by 3.8p.p. to 41.7 percent;
  • Profits attributable to equity shareholders increased by 45.0 percent to approximately RMB 601.7 million; and
  • Cash and cash equivalents, including bank deposits, cash-in-hand, and fixed deposits with original maturities not exceeding three months, amounted to RMB 3,339.0 million.

The revenue of two core product categories, footwear and apparel, increased by 21.7 percent to RMB2,532.1 million and 7.3 percent to RMB2,147.0 million, respectively, accounting for 42.7 percent and 36.2 percent of the Group’s total revenue, respectively.

The revenue of 361° Kids increased by 18.7 percent to RMB 1,106.8 million, accounting for 18.7 percent of the Group’s total revenue. During the year, under review, the Group’s e-commerce business recorded revenue of RMB1,227.4 million from the sales of its online-exclusive product, accounting for approximately 20.7 percent of the Group’s total revenue. The increasing contribution from e-commerce channels reflected the effectiveness of the Group’s product offering and promotion strategy.

Gross profit in 2021 was RMB 2,472.4 million (2020: RMB 1,941.7 million), representing an increase of 27.3 percent. The gross margin increased by 3.8 percentage points to 41.7 percent, mainly due to an upward adjustment of the average wholesale price charged to distributors back to the normal level prior to the pandemic in early 2020 in view of the improved market environment in China and an increase in the sales revenue generated from its e-commerce platform, which conducted business at a higher gross profit margin than the sales made to distributors. Since the Group redeemed the 7.25 percent senior notes due in 2021 during the year under review, there was a reduction in interest expenses.

Ding Wuhao, executive director and president, 361° said, “Looking forward to 2022, the demand of China’s sporting goods market remains strong because of the normalization of the epidemic, the rise of national products and rising health awareness. 361°, as China’s leading sports brand, will fully grasp the opportunity and continue to develop the Group’s business with one extra degree of passion, bringing surprises to those who love and support 361°. In September this year, the 19th Asian Games Hangzhou 2022 will be grandly opened, and we all look forward to seeing 361° shine again in the Asian Games.”

Photo courtesy 361°