361 Degrees International Ltd. · HKEX:1361
361 Degrees International — H1 2024 Earnings Presentation
38 slides from 361 Degrees International's earnings presentation, August 2024
Slide 1: Interim Results
Interim Results 361 Degrees International Limited Stock Code: 1361.HK August 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 Interim results for the period ended 30 June 2024 and may not be reproduced or redistributed. In particular, these presentati
Slide 4: President's Speech
President’s Speech Technology-driven, Brand-focused | Strong Commitment to Achieve Rapid Growth | Maximise Shareholder Return to Reach New Heights Together 4
Slide 5: Financial Review
Financial “Flying Flame 3 ” Professional marathon running shoe Review
Slide 6: Financial Highlights
Financial Highlights Total Revenue Revenue Revenue Net Profit Interim Dividend from 361º Kids from e-commerce Payout Ratio 19.2% 24.2% 16.1% 12.2% 40.3% HKD [-] Cents HK$16.5 cents RMB5,141.3 million RMB1,131.6 million RMB1,252.7 million RMB789.7 million Per per ordinary share ordinary share 6
Slide 7: Financial Overview
Financial Overview For the 6 months ended 30 June RMB mn 2024 2023 Change Revenue 5,141.3 4,311.5 +19.2% Gross Pofit 2,125.0 1,796.5 +18.3% Operating Profit 1,060.4 992.8 +6.8% Profit attributable to equity shareholders 789.7 703.6 +12.2% Basic EPS（RMB cents） 38.2 34.0 +12.4% Profitability Ratios (%
Slide 8: Revenue Analysis
Revenue Analysis Revenue Breakdown Revenue Contributions by Product Categories RMB mn % 5,141.3 - 1.7% - 1.6% - 1.4% - 72.3 18.7% 21.1% 22.0% 4,311.5 1,131.6 - 67.6 - 1.3% - 1.6% - 1.5% 3,653.8 - 78.5 910.9 - 62.5 683.1 - 69.4 37.8% 31.6% 30.7% 1,575.7 - 45.5 1,362.4 1,382.4 2,283.2 40.5% 44.1% 44.4
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 / % 48.0% 43.5% 43.5% 42.8% 41.5% 45.0% 41.7% 41.3% 43.0% 2,500.0 38.0% 40.0% 33.0% 2,125.0 - 16.0 1H2022 1H2023 1H2024 35.0% 2,000.0 1,796.5 471.7 - 13.8 30.0% GPM of Apparel Product 1,
Slide 10: Major Operating Expenses Analysis
Major Operating Expenses Analysis % of the revenue 10.5% 9.2% 8.8% 8.3% 7.1% 6.2% 3.1% 3.2% 2.8% 1H2022 1H2023 1H2024 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 2024 20
Slide 11: Operating Profit and Net Profit Analysis
Operating Profit and Net Profit Analysis Profit Attributable to Equity Shareholders & Margin of Profit Operating Profit & Operating Income Tax Expenses & Attributable to Equity Profit Margin Effective Tax Rate Shareholders RMB mn / % RMB mn / % RMB mn / % 23.0% 16.3% 500.0 25.0% 1,000.0 21.1% 15.1%
Slide 12: Balance Sheet Overview
Balance Sheet Overview RMB mn As at 30 Jun 2024 As at 31 December 2023 Change Current assets 12,206.8 11,617.3 +5.1% Current liabilities 3,399.4 3,088.0 +10.1% Net current assets 8,807.4 8,529.3 +3.3% Equity attributable to owners of the Company 9,330.6 9,082.4 +2.7% 4.7 RMB 4.7 RMB No change Net as
Slide 13: Working Capital Cycle Analysis
Working Capital Cycle Analysis Working Capital Turnover Days 149 148 Inventories 144 Trade & bills receivables 132 110 Trade & bills payables 93 89 Overall 85 FY2023 1H2024 Trade and Bills Receivables Ageing Analysis As at 30 Jun As at 31 Dec As at 30 Jun 2024 As at 31 Dec 2023 RMB ‘000 2024 2023 %
Slide 14: Liquidity Analysis
Liquidity Analysis Cash Flow For the Period Ended 30 June RMB mn 2024 2023 Profit before income tax 1,052.3 983.5 Adjustment of non-cash profit and loss and items from non-operating activities 32.5 (17.2) Change in inventories (113.7) (35.5) Change in trade and bills receivables (733.7) (792.8) Chan
Slide 15: Capital Strength and Resilience
Capital Strength and Resilience Financial Resources As at 30 June As at 31 December RMB ‘000 2024 2023 Pledged bank deposits 7,074 12,415 Deposits with bank with maturities over 3 months 1,600,000 1,600,000 Cash and cash equivalents 3,410,468 3,596,489 Total cash 5,017,542 5,208,904 Total borrowings
Slide 16: Brand Building
Kentavious CALDWELL-POPE International Basketball Superstar Aaron GORDON International Basketball Superstar Brand Building Spencer DINWIDDIE International Basketball Superstar Nicola JOKIĆ International Basketball Superstar
Slide 17: 361° Brand Overview
361° Brand Overview Technology-Driven Leveraging technology as the key driver for continuous growth, 361° provides consumers with high-value, professional sports products Brand-Focused Embraces the brand spirit of “ONE DEGREE BEYOND” and positions as “Professional, Youthful, Internationalised”, 361
Slide 18: 361° Kids Overview
361° Kids Overview Technology-Driven Riding on the strong R&D capabilities, 361° continues to provide high-quality sports lifestyle solutions for children and adolescents through technological innovation Brand-Focused Embraces the brand statement of “CHASING YOUR LOVE!”, and positions as the “Youth
Slide 19: 361° Milestone
361° Milestone 2003 2005 2009 2010 • 361° Brand was established • Named as the “China Famous • Officially listed on the Main • Became an official sponsor Brand” Board of the Hong Kong of the 2010 Asian Games in • Ranked first in the “China’s Top Stock Exchange Guangzhou, China 100 Potential Enterpri
Slide 20: The Asian Games Endorsed and Increased 361° Brand Value
The Asian Games Endorsed and Increased 361° Brand Value Sponsoring the Asian Games for four consecutive times is a Capturing future opportunities and shining on the solid recognition of our brand value world stage with the “ONE DEGREE BEYOND” spirit • As a pioneer in sponsoring intercontinental spor
Slide 21: Extensive Brand Resources
Extensive Brand Resources In 1H 2024, A&P expenses accounted for 10.5% of the Group’s total revenue Strategic investment allocation to build a professional The flourishing development of our IP events has propelled sports resources matrix the upgrade of brand resources Large-scale Sports Events “3#
Slide 22: Business Review
JIANG Tingting World artistic swimming champions Business Review JIANG Wenwen World artistic swimming champions
Slide 23: 361° Product - Running
361° Product - Running Through technological refinement, our professional expertise in running shoes has reached exceptional performance levels • Our running product line demonstrates the group's technological strength, featuring four professional categories: Top Speed, Professional Speed, Track Tra
Slide 24: 361° Product - Basketball
361° Product - Basketball High-profile international endorsements are driving a sales surge for our premium basketball products • The basketball category boasts a powerful lineup of resources, with endorsements from Nikola JOKIĆ, Aaron GORDON, Kentavious CALDWELL-POPE, Spencer DINWIDDIE, Kyranbek MA
Slide 25: 361° Product - Training and Lifestyle
361° Product - Training and Lifestyle Breaking the boundaries of sports scenes while inspiring a passion for an active lifestyle • 361° stays attuned to industry trends and evolving consumer demands. In January, 361° launched the new “Weekend Lightweight Adventure Series”, encouraging consumers to b
Slide 26: 361° Kids Product
361° Kids Product Securing a first-mover advantage in children’s sportswear with accelerating expansion of professional product lines Technological innovation to propel upgrade of flagship products • 361° Kids leverages its professional sports expertise to gain a first-mover advantage in the Childre
Slide 27: 361° - Sales Overview
361° - Sales Overview Sales Network 32.2% • The Group has 7,037 points-of-sale worldwide, of which 5,740 are located in mainland China Mall & department stores: 1,846 Channel mix • Average size of the store is 143㎡, which increased by 5㎡ compared to the end Street level stores: 3,894 of 2023 67.8% •
Slide 28: 361° Kids - Sales Overview
361° Kids - Sales Overview In 1H2024, revenue of 361° Kids reached RMB1,131.6 million, and accounted for 22.0% of the Group’s total revenue, representing a YoY increase of 24.2% Sales Network 41.5% 58.5% • The Group has 2,550 points-of-sale for 361º Kids Channel Mall & department stores: 1,492 Mix
Slide 29: 361° E-commerce Competitive Advantage
361° E-commerce Competitive Advantage Business Positioning • Leveraging e-commerce channels as a strategic front, 361° promptly responds to consumer trends, offering high-appeal, high-tech and high-value products • By using e-commerce as a platform for consumer interaction, we gain deep insights int
Slide 30: 361° E-commerce Operations Overview
361° E-commerce Operations Overview In 1H2024, revenue from sales of online exclusive products from the e-commerce platform amounted to RMB1,252.7 million, and accounted for 24.4% of the Group’s total revenue, representing a YoY growth of 16.1% Sales Channel Remarkable Sales Performance • Omnichan
Slide 31: Appendix
Appendix AO Ruipeng Famous Chinese Actor
Slide 32: Excellent Research and Development Capability
Excellent Research and Development Capability In 1H2024, R&D expenditure accounted for 2.8% of the Group’s total revenue • As of 30 June 2024, the Group had obtained 562 patents and employed 857 R&D personnel • The research and innovation center of the Group, located in the Wuli Industrial Park o
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 • Utilizing digital technology, the Group focuses on flexible manufacturing, technological innovation and data-driven strategies to ac
Slide 34: Group Recognition
Group Recognition R&D International product Kairos 2 Excellence Award at the 51st (2025 The Gold Prize at the 1st Quanzhou 2024 10th Aibang Polymer Shoe “Sports and Fitness” and 2024 Best Partner of the Year Spring/Summer) Chinese Popular Fabrics High-Value Patent Competition Material Industry Foru
Slide 35: Shareholding Structure
Shareholding Structure 361 Degrees International Ltd Total Number of Issued Shares (As at 30 June 2024): 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 The Rise of National Trend and National Confidence Unprecedented Development Demand Segmentation and Opportunities in Upgrading of High-end Sports Industry Specialties Kids Sportswear Market Promoting Consumption, the Holds Promising Prospects Engine of Economic Growth • In 1H2024,
Slide 37: Investment Highlights
Investment Highlights 1 China's Leading Sportswear Brand With 20+ Years of Legacy and 15 Years of Unwavering Commitment as a Listed Company Technology-driven, Brand-focused, 2 With Continuous Enhancement in Brand Value and Product Excellence 3 The 361° Kids’ Business is Growing Rapidly and Becom
Slide 38: Q&A
Q&A “ BIG3 FUTURE ” Flagship all-purpose combat basketball shoes
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