361 Degrees International Ltd. · HKEX:1361
361 Degrees International — H1 2023 Earnings Presentation
38 slides from 361 Degrees International's earnings presentation, August 2023
Slide 1: Interim Results
Interim Results 361 Degrees International Limited Stock Code: 1361.HK August 2023
Slide 2: Content
Content Financial Business Brand Appendix Q&A Review Review Building 2
Slide 3: Disclaimer
Disclaimer These presentation slides have been prepared by 361 Degrees International Limited (the “Company”) solely for us during its presentation held in connection with its interim results for the six months ended 30 June 2023 and may not be reproduced or redistributed. In particular, these presen
Slide 4: Embrace "ONE DEGREE BEYOND", Passion for Two Decades, Embarking on a New Journey
Passion for Two Decades, Embarking on a New Journey Build upon a 20-year Foundation, Striving to Create Better Future Embrace “ONE DEGREE BEYOND”, Setting forth on New Ascent Declare interim dividends, Sharing Corporate Development Achievements with Shareholders 4
Slide 5: Financial Review
Financial “Biospeed CQT ” Training Shoes for Racing Review 5
Slide 6: Financial Highlights
Financial Highlights Total Revenue Revenue Interim Dividend Revenue from 361ºKids from e-commerce Payout Ratio 18.0% 33.4% 38.0% 17.6% HKD 6.5 Cents RMB 4,311.5 million RMB 910.9 million RMB 1,079.2 million Per ordinary share 6
Slide 7: Financial Overview
Financial Overview For the 6 months ended 30 June RMB mn 2022 2023 Change Revenue 3,653.8 4,311.5 +18.0% Gross Profit 1,515.6 1,796.5 +18.5% Operating profit 771.9 992.8 +28.6% Profit attributable to equity shareholders 550.9 703.6 +27.7% Basic EPS (RMB cents) 26.7 34.0 +27.3% Profitability Ratios (
Slide 8: Revenue Analysis
Revenue Analysis Revenue Revenue by Products RMB mn % 4,311.5 0.9% 1.7% 1.6% 67.6 16.0% 18.7% 21.1% 3,653.8 910.9 62.5 1.1% 1.3% 1.6% 3,107.1 683.1 69.4 25.7 498.2 45.5 37.6% 37.8% 31.6% 35.0 1,362.4 1,382.4 1,167.7 1,901.2 44.4% 40.5% 44.1% 1,380.5 1,480.3 1H2021 1H2022 1H2023 1H2021 1H2022 1H2023
Slide 9: Gross Profit and Gross Profit Margin Analysis
Gross Profit and Gross Profit Margin Analysis Gross Profit and Gross Profit Margin GPM of Footwear Product RMB mn / % 49.0% 47.0% 43.1% 43.5% 43.5% 41.8% 41.5% 45.0% 41.7% 45.0% 43.0% 41.0% 2,000.0 39.0% 40.0% 37.0% 1,796.5 35.0% 33.0% 13.8 35.0% 1H2021 1H2022 1H2023 1,515.6 386.1 1,500.0 4.6 30.0%
Slide 10: Major Operating Expenses Analysis
Major Operating Expenses Analysis RMB mn 9.2% 8.7% 8.3% 8.8% 8.0% 7.1% 3.6% 3.1% 3.2% 1H2021 1H2022 1H2023 Advertising & promotion expenses Staff Cost R&D Selling and Distribution Expenses Administrative Expenses For the 6 months ended 30 June For the 6 months ended 30 June RMB mn 2022 2023 Change R
Slide 11: Operating Profit and Net Profit Analysis
Operating Profit and Net Profit Analysis Operating Profit & Income Tax Expenses & Profit Attributable to Equity Operating Profit Margin Effective Tax Rate Shareholders & Margin of Profit Attributable to Equity Shareholders RMB mn / % RMB mn / % RMB mn / % 900.0 18.0% 22.9% 23.0% 16.3% 1,400.0 25.0%
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights RMB mn As at 31 Dec 2022 As at 30 Jun 2023 Change Current assets 11,283.8 11,793.7 +4.5% Current liabilities 2,905.5 3,002.8 +3.3% Net current assets 8,378.3 8,790.9 +4.9% Equity attributable to owners of the Company 7,943.5 8,860.9 +11.5% Net asset value per share* 4.6 RMB
Slide 13: Working Capital Cycle Analysis
Working Capital Cycle Analysis Working Capital Turnover Days 147 Inventories 144 129 Trade & bills receivables 121 117 Trade and bills payables 91 101 Overall 86 FY2022 1H2023 Trade and Bills Receivables Ageing Analysis As at 31 Dec As at 30 Jun As at 31 Dec 2022 As at 30 Jun 2023 RMB ‘000 RMB ‘000
Slide 14: Liquidity Analysis
Liquidity Analysis As at 30 June As at 30 June RMB mn 2022 2023 Profit before income tax 767.3 983.5 Adjustment of non-cash profit and loss and items from 36.2 (17.2) non-operating activities Increase in inventories (15.7) (35.5) Increase in trade and bills receivables (850.1) (792.8) Increase/(decr
Slide 15: Capital Strength
Capital Strength As at 31 December As at 30 June RMB ‘000 2022 2023 Pledged bank deposits 24,138 21,336 Deposits with bank with maturities > 3 months 2,000,000 2,000,000 Cash and cash equivalents 3,860,442 3,550,357 Total cash 5,884,580 5,571,693 Bank loans 292,282 541,802 Total borrowings 292,282 5
Slide 16: Business Review
Spencer DINWIDDIE International Basketball Superstar Business Review 16
Slide 17: 361° Positioning
361° Positioning With strategic determination and unique brand positioning, 361° precisely capture market opportunities and maintain stable and sustainable development Professional Accelerate product upgrades through R&D to support development Youthful Penetrate the younger consumer group by introdu
Slide 18: Sports Goods for Running
Sports Goods for Running Growing matrix of running shoes, showcasing the brand’s continued professional prowess • The latest running products fully apply the Group’s core technology, and through constant refinement and improvement, we have established a diverse and multi-tiered product matrix that t
Slide 19: Sports Goods for Basketball
Sports Goods for Basketball Collaborating with spokespersons to create a professional image among the public • The basketball category boasts a powerful lineup of resources, including international basketball superstars Aaron GORDON and Spencer DINWIDDIE, as well as Chinese basketball star Kyranbek
Slide 20: Sports Goods for Comprehensive Training and Lifestyle
Sports Goods for Comprehensive Training and Lifestyle Cater to diverse demands of sports, and explore the market for women’s fitness and sports fashion • Our products are designed to meet the consumers’ diverse needs for professional sports, by combining product functionality with trendy design • In
Slide 21: 361° Sales Overview
361° Sales Overview Global Sales Network Customer Experience • The Group has 6,829 points-of-sale worldwide, of which 5,642 are located in • Continuous upgrade of store image, optimizing product display which mainland China, increased by 162 compared to the end of 2022 emphasizes functional categori
Slide 22: 361° Physical Sales Network
361° Physical Sales Network Channel Structure • Mall and department stores accounted for 31.3%, while street level stores 31.3% accounted for 68.7% Store Image Channel Mall + Department stores：1,765 Structure • 9th generation stores accounted for 56.4%, increased by 7.8% compared to the Street level
Slide 23: 361° Kids Positioning
361° Kids Positioning Positioned as a “Youth Sports Expert” to echo 361 ° sports genes Rooted on the spirit of “ONE DEGREE BEYOND” to convey the brand statement of “CHASING YOUR LOVE!” Dedicated to providing excellent products with extraordinary functionality for “Children and Adolescents” CHASING Y
Slide 24: Competitive Edges of 361° Kids
Competitive Edges of 361° Kids Tap into the kids’ sportswear market to strengthen the first-mover advantage Edges on Professional Functionality • Appointed as the official partner of China National Rope Skipping Team, Guoan, and Taishan Football Club (Junior Training Camp), showcasing the support fr
Slide 25: 361°Kids Sales Overview
361°Kids Sales Overview In 1H 2023, revenue of 361° Kids reached RMB 910.9 million, accounted for 21.1% of the Group’s total revenue, representing a YoY increase of 33.4% Sales Network 54.8% • The Group has 2,448 points-of-sale for 361ºKids business, representing a Mall + Department stores：1,341 Cha
Slide 26: 361° E-commerce Overview
361° E-commerce Overview In 1H 2023, the revenue from sales of online-exclusive products from the e-commerce platform amounted to RMB 1,079.2 million, accounting for 25.0% of the Group’s total revenue, representing a YoY growth of 38.0% Sales Channel 34.3% 14.0％ • The Group mainly adopts a direct sa
Slide 27: Competitive Edges of 361° E-commerce
Competitive Edges of 361° E-commerce Driving rapid business growth and expanding operations by optimizing online brand management strategies • Promoting the rapid and healthy development of e-commerce business by leveraging product capabilities and featuring exclusive online products Business Positi
Slide 28: Brand Building
GUAN Siyang Marathon Athlete Brand Building 28
Slide 29: 361° Milestone — To Grow and to Care, for 20 Years and on
361°Milestone —— To Grow and to Care, for 20 Years and on 2003 2009 2014 2016 2020 2022 • 361º Brand • Officially listed on the Main • Became an official sponsor • Became the official partner of • Recognized by the industry with • Became an official partner of China National Rope Skipping was establ
Slide 30: Brand Resources
Brand Resources In 1H 2023, A&P expenses accounted for 8.8% of the Group’s total revenue Large-scale Sports Events Top tier Athletes and Celebrities as Spokespersons • Large-scale comprehensive games: the 19th Asian Games in • Basketball players: International basketball superstar Aaron GORDON, Hang
Slide 31: Brand Owned Running Event — 3#Track
Brand Owned Running Event — 3#Track Provide runners with training platforms through quality self-branded events • “3#Track” was founded in April 2021, which expands the running club through running events in core cities across China • Accurately targeting professional runners, achieving remarkable r
Slide 32: Brand Owned Basketball Event — Light Up
Brand Owned Basketball Event — Light Up Gather basketball enthusiasts through brand owned basketball events • Since its establishment in August 2020, “Light Up” has established a renowned reputation and has become a key event for basketball enthusiasts annually • Continuously innovating the game for
Slide 33: Appendix
GONG Li Karate World Champion Appendix 33
Slide 34: Research and Development
Research and Development In 1H 2023, R&D expenditure accounted for 3.2% of the Group’s total revenue • As of 30 June 2023, the Group has obtained 406 patents and employs 863 R&D technicians • The research and innovation center of the Group, located in the Wuli Industrial Park of Jinjiang City, Fujia
Slide 35: Industry Outlook
Industry Outlook Number of Sports Facilities in China (in 10 thousands) 500.0 450.9 • The “2023 China Sporting Goods Industry Report” released by the China Sporting Goods Federation 450.0 422.7 indicates that quality and functionality are the most considered factors (near or over 40%) when 397.1 400
Slide 36: Shareholding Structure
Shareholding Structure 361 Degrees International Ltd Total Number of Issued Shares (As at 30 June 2023): 2,067,682,000 Mr. Ding Mr. Ding Mr. Ding Mr. Wang Mr. Wang Public Wuhao Huihuang Huirong Jiabi Jiachen Shareholders 17.03% 16.29% 15.67% 8.16% 8.16% 34.69% 36
Slide 37: As China's Top Sportswear Brand with 20 years of Legacy
1 As China’s Top Sportswear Brand with 20 years of Legacy 361° is on the Path of Reaching A New Peak 2 With Strong Brand Power and Extensive Resources A Long-term Sponsor to International Sports Events 3 Stable and Healthy Financial Performance with a Rich Cash Position to Capture New Opportunities
Slide 38: Q&A
Q&A 38
361 Degrees International — H1 2023 Earnings Presentation on 6ix