361 Degrees International (1361) H1 2025 earnings summary

Executive summary

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

• Strong growth in e-commerce (+45.0% YoY) and kids business (+11.4% YoY), with e-commerce now 31.8% of total revenue.

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

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

Financial highlights

• Gross profit increased 11.4% to RMB2,366.5 million; gross margin stable at 41.5% (+0.2 p.p. YoY).

• Operating profit up 7.2% to RMB1,137.3 million; EPS up 8.6% to RMB41.5 cents.

• Net cash from operating activities surged 227% to RMB523.8 million.

• Cash and cash equivalents at RMB4,611.5 million; net cash position RMB4,300.7 million.

• Inventory turnover days at 109; trade receivables turnover improved to 146 days.

Outlook and guidance

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

• Focus on technological innovation, omnichannel expansion, and internationalisation.

• R&D investment to remain high, with full-year ratio expected between 3% and 4%.