361 Degrees International Ltd. · HKEX:1361
361 Degrees International — FY2023 Earnings Presentation
38 slides from 361 Degrees International's earnings presentation, March 2024
Slide 1: Annual Results
Annual Results 361 Degrees International Limited Stock Code: 1361.HK March 2024
Slide 2: Content
Content Financial Brand Business Appendix Q&A Review Building Review
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 annual results for the year ended 31 December 2023 and may not be reproduced or redistributed. In particular, these presentat
Slide 4: President’s Speech
President’s Speech Sustainable Development Supported by Agile Execution | Well-thought Strategies with Forward-Looking Vision | Reward Shareholders and Create Mutual Benefits to Achieve Greater Heights 4
Slide 5: Financial Review
Financial Review “3#Track” 361° In-house Event
Slide 6: Financial Highlights
Financial Highlights Profit Revenue Revenue Full-year Total Revenue attributable to Equity From 361ºKids from E-commerce Dividend Payout Ratio Shareholders 21.0% 35.7% 38.0% 28.7% 40.2% RMB RMB RMB RMB HK$20.4 cents 8,423.3 million 1,957.5 million 2,325.5 million 961.4 million per ordinary share 6
Slide 7: Financial Overview
Financial Overview For the Year ended 31 December RMB mn 2023 2022 Change Revenue 8,423.3 6,960.8 +21.0% Gross profit 3,462.2 2,820.6 +22.7% Operating profit 1,383.5 1,074.1 +28.8% Profit attributable to equity shareholders 961.4 747.1 +28.7% Basic EPS (RMB cents) 46.5 36.1 +28.7% Profitability Rati
Slide 8: Revenue Analysis
Revenue Analysis Revenue Breakdown Revenue Contributions by Product Categories RMB mn % 8,423.3 — 131.6 — 1.3% — 1.7% — 1.6% 6,960.8 18.7% 20.7% 1,957.5 23.2% — 121.8 — 1.1% — 1.4% 5,933.5 — 136.8 — 1.6% 1,442.2 — 78.7 1,106.8 — 95.7 36.2% 2,687.5 35.2% 31.9% — 68.8 2,447.5 2,147.0 3,509.9 42.7% 41.
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 Products 43.1% RMB mn / % 43.5% 43.0% 42.4% 42.5% 42.0% 41.2% 41.5% 41.7% 41.1% 45.0% 41.0% 40.5% 40.5% 40.0% 4, 000.0 40.0% 2021 2022 2023 3,462.2 3, 500.0 — 19.1 35.0% GPM of Apparel Products 2,820.6
Slide 10: Key Operating Expenses Analysis
Key Operating Expenses Analysis RMB mn 12.7% 11.1% 11.4% 10.2% 9.8% 9.2% 4.2% 3.8% 3.7% 2021 2022 2023 2023 Advertising and promotional expenses Staff costs R&D expenses Selling and Distribution Expenses Administrative Expenses For the Year ended 31 December For the Year ended 31 December RMB mn 202
Slide 11: Operating Profit and Net Profit Analysis
Operating Profit and Net Profit Analysis Net Profit & Margin of Operating Profit & Income Tax Expense & Profit Attributable to Operating Profit Margin Effective Tax Rate Equity Shareholders RMB / % RMB / % RMB / % 500. 0 35.0% 1, 200.0 15.5% 11.4% 18.3% 1, 800.0 22.0% 16.4% 450. 0 29.0% 10.7% 13.5%
Slide 12: Balance Sheet Overview
Balance Sheet Overview RMB mn As at 31 December 2023 As at 31 December 2022 Change Current assets 11,617.3 11,283.8 +3.0% Current liabilities 3,088.0 2,905.5 +6.3% Net current assets 8,529.3 8,378.3 +1.8% Equity attributable to owners of the Company 9,082.4 7,943.5 +14.3% RMB 4.7 RMB 4.6 +0.1 RMB Ne
Slide 13: Working Capital Cycle Analysis
Working Capital Cycle Analysis Working Capital Turnover Days 147 149 Inventories 121 132 Trade and bills receivables 117 110 Trade and bills payables 91 93 Overall 2022 2023 2023 Trade and Bills Receivables Ageing Analysis As at 31 December As at 31 December RMB ‘000 2023 2022 2023 % 2022 % Trade Re
Slide 14: Liquidity Analysis
Liquidity Analysis Cash Flow For the Year ended 31 December RMB mn 2023 2022 Profit before tax 1,363.4 1,064.7 Adjustment of non-cash profit and loss and items from non-operating activities (13.8) 221.3 Change in inventories (172.7) (286.6) Change in trade and bills receivables (761.6) (589.8) Chang
Slide 15: Capital Strength and Resilience
Capital Strength and Resilience Financial Resources As at 31 December RMB ‘000 2023 2022 Pledged bank deposits 12,415 24,138 Bank deposits with maturities over 3 months 1,600,000 2,000,000 Cash and cash equivalents 3,596,489 3,860,442 Total cash 5,208,904 5,884,580 Bank borrowings 292,491 292,282 To
Slide 16: Brand Building
Brand Building LI Mengwen Chinese Women’s Football Player LI Yuan Asian Cup Champion Chinese Women’s Basketball Player Asian Games Champion
Slide 17: 361° Brand Overview
361° Brand Overview Brand History Brand Spirit Embracing the brand spirit “ONE DEGREE Established in 2003, the 361ºbrand primarily BEYOND”, 361ºis dedicated to becoming a targets the mass sports market, focusing on globally respected sports brand, providing offering integrated sportswear products in
Slide 18: 361° Kids Overview
361° Kids Overview Brand History Brand Statement Established in 2009, 361°Kids is able to Embracing the brand statement of solidify its competitiveness, and captures “CHASING YOUR LOVE!”, 361°Kids is notable growth potential in the Chinese dedicated to providing professional, healthy, children’s spo
Slide 19: 361° Milestones
361° Milestones 2005 2021 · Awarded “China Famous Brand” 2010 2003 ·Ranked first in “China’s Top 100 High Potential ·Became an official sponsor of the Asian Games in Guangzhou, China ·Awarded “Outstanding Contribution Award of the Asian Games” ·Received international recognition for its various prod
Slide 20: Extensive Brand Resources
Extensive Brand Resources In 2023, A&P expenses accounted for 12.7% of the Group’s total revenue Large-scale Sports Events Top-tier Athletes and Celebrities as Spokespersons • Comprehensive sports events: the 19th Asian Games in Hangzhou • 8 Basketball players: Nikola JOKIC, Aaron GORDON, etc. • 13
Slide 21: Innovative Brand Resources
Innovative Brand Resources Innovative in-house IP events to create unique product exposure and raise brand profile “3#Track” was founded in 2021, using “Light Up” was founded in 2020, and has “Women’s Fitness Gym” was founded in race events to connect runners, become an eagerly-anticipated annual ev
Slide 22: Business Review
Business Review “Light Up “ 361° In-house Basketball Event
Slide 23: 361° Product Strength - Running Category
361° Product Strength - Running Category Expanding Running Shoes Series with Cutting-Edge Technologies • The running category showcases the Group's technological prowess, capable of catering to the needs of runners at all stages, including beginners, breakthrough trainers, and professional racers. T
Slide 24: 361° Product Strength - Basketball Category
361° Product Strength - Basketball Category Accumulate Basketball Resources to Raise Influence • The basketball category boasts a powerful lineup of resources, recently signing international basketball star Nikola JOKIC, alongside other international basketball superstars like Aaron GORDON and Spenc
Slide 25: 361° Product Strength - Training and Lifestyle
361° Product Strength - Training and Lifestyle Cater to diverse sports demand by integrating style with functionality • Our Lifestyle products prioritise focuses on providing functionality across different application scenarios, including women's fitness, skateboarding, and badminton gear, that woul
Slide 26: 361° - Sales Network Overview
361° - Sales Network Overview Sales Network • The Group has 6,994 points-of-sale worldwide, of which 5,734 are located in 31.7% mainland China, representing a net increase of 254 compared to the end of 2022 Channel Mall + department stores: 1,816 • Average size of the store is 138m2, increased by 9
Slide 27: 361° Product Strength - 361° Kids
361° Product Strength - 361° Kids Professional products along the trends to capture kids market opportunities Wide variety of products with outstanding functionality • Expansive product offering including running, rope skipping, basketball, football and outdoor activities. Upgraded flagship products
Slide 28: 361° Kids - Sales Overview
361° Kids - Sales Overview In 2023, revenue of 361° Kids reached RMB 1,957.5 million, accounted for 23.2% of the Group’s total revenue, representing a YoY increase of 35.7% Sales Network • The Group has 2,545 points-of-sale for 361ºKids, representing a net increase 57.3% of 257 as compared to the en
Slide 29: 361° E-commerce Competitive Advantage
361° E-commerce Competitive Advantage Business Positioning • Committed to building a comprehensive e-commerce system that seamlessly integrates product sales, brand promotion, and consumer interaction/creation • Primarily utilising a direct sales model on prominent e-commerce platforms such as Tmall
Slide 30: 361° E-commerce Operations Overview
361° E-commerce Operations Overview In 2023, revenue from sales of online exclusive products from the e-commerce platform amounted to RMB 2,325.5 million, accounting for 27.6 % of the Group’s total revenue, representing a YoY growth of 38.0% Sales Channel Remarkable Sales Performance • Omnichannel r
Slide 31: Appendix
Appendix Furious FUTURE 1.5 Professional Racing Shoe for Elite Marathon Runners
Slide 32: Excellent Research and Development Capability
Excellent Research and Development Capability In 2023, R&D expenditure accounted for 3.7% of the Group’s total revenue • As of 31 December 2023, the Group has obtained 494 patents and employed 843 R&D personnel • The research and innovation center of the Group, located in the Wuli Industrial Park of
Slide 33: Advanced Supply Chain System
Advanced Supply Chain System The streamlined supply chain system fosters efficient collaboration, spearheading smart manufacturing development Supply Chain System • The application of digital technology allows integration of multiple terminals and production systems, digitizing material information
Slide 34: Group Recognition
Group Recognition R&D SPIRE5 FUTURA Flying Flame 3.0 CQT Carbon FIRST AWARD Best Lightweight Trail Shoe – 2023 China Design Editor’s Choice Award by OUTSIDE, US Critical Technology Intelligence Award by Test 4 Outside, France Blue Whale JING CHAO CENTAURI The “Louvred Window” AWARDS — One of the fiv
Slide 35: Shareholding Structure
Shareholding Structure 361 Degrees International Ltd Total Number of Issued Shares (As at 31 December 2023): 2,067,682,000 17.03% 16.29% 15.67% 8.16% 8.16% 34.69% Mr. Ding Mr. Ding Mr. Ding Mr. Wang Mr. Wang Public Wuhao Huihuang Huirong Jiabi Jiachen Shareholders 35
Slide 36: Industry Outlook
Industry Outlook Footware & Apparel Industry on the Rise: A Online Consumer Vast Opportunities Kids Sportswear Market Thriving nationwide Promising Outlook for Gains within Holds Promising fitness trend Recovery and Growth Growing Traction Mass Consumer Market Prospects • In 2023, China's social ret
Slide 37: Investment Highlights
Investment Highlights 1 China's Leading Sportswear Brand With 20 Years of Legacy, with 15 Years of Unwavering Commitment as a Listed Company 2 Expansive Brand Resources to Drive Growing Brand Influence and Product Portfolio 3 Resilient Business Operations to Support Sustainable & Long-term Profitabi
Slide 38: Q&A
Q&A
361 Degrees International — FY2023 Earnings Presentation on 6ix