361 Degrees International (1361) H1 2025 earnings summary

Executive summary

• Revenue rose 11.0% year-over-year to RMB5,704.8 million, with profit attributable to equity holders up 8.6% to RMB857.7 million for the six months ended 30 June 2025.

• Achieved strong growth by leveraging global sports events, technology-driven innovation, and expanding both online and offline channels.

• Interim dividend declared at HK20.4 cents per share, payout ratio 45.0%.

• Strong growth in e-commerce (+45.0% YoY) and kids business (+11.4% YoY); international revenue up 19.7%.

• Brand strengthened through major sports event sponsorships and product innovation.

Financial highlights

• Total revenue rose 11% year-over-year to RMB5.70 billion for the six months ended 30 June 2025.

• Gross profit increased 11.4% to RMB2,366.5 million; gross margin stable at 41.5%.

• Net cash from operating activities surged 227.2% to RMB523.8 million.

• E-commerce revenue surged 45% year-over-year to RMB1.82 billion, accounting for 31.8% of total turnover.

• Kids segment revenue grew 11.4% year-over-year to RMB1.26 billion, representing 22.1% of total turnover.

Outlook and guidance

• Management expects continued stable growth in China, driven by policy support and consumer upgrades.

• Focus on technology-driven product innovation and sustainable development to drive future growth.

• Continued expansion into global markets and further synergy between online and offline channels.

• R&D expenses expected to rise to 3–4% of revenue in 2025.

• Industry outlook remains positive, with policy support, rising sports culture penetration, and significant growth potential in kids' sportswear.