361 Degrees International (1361) H2 2024 earnings summary

Executive summary

• Achieved 19.6% year-over-year revenue growth to RMB10.07 billion for 2024, with profit attributable to equity shareholders rising 19.5% to RMB1.15 billion, driven by strong performance in kids' and e-commerce segments.

• Maintained a leading position in China's sportswear industry, leveraging technology-driven innovation, ESG principles, and international expansion.

• Gross profit margin improved to 41.5%, and basic EPS increased to RMB0.556.

• Annual dividend per share increased 29.9% to HK$26.5 cents, with a full-year payout ratio of 45% and a proposed final dividend of HK10.0 cents per share.

• Significant growth in Kids, e-commerce, and international business segments.

Financial highlights

• Gross profit increased 20.8% to RMB4.18 billion, with a gross margin of 41.5%.

• Operating profit rose 13.9% to RMB1.58 billion; operating margin at 15.6%.

• E-commerce revenue grew 12.2% to RMB2.61 billion; Kids segment revenue up 19.5% to RMB2.34 billion.

• Cash and cash equivalents at RMB4.25 billion; gearing ratio at 1.9%.

• Basic EPS up 19.5% to RMB0.556.

Outlook and guidance

• Industry outlook remains positive, supported by favorable policies, rising sports culture, and growing demand for high-performance products.

• Focus on technological innovation, omnichannel integration, and international expansion.

• Kids business and e-commerce expected to remain key growth drivers.

• Children's wear and niche sports categories expected to drive future growth and global expansion.

• Plans to deepen brand positioning as "professional, youthful, and internationalised".