361 Degrees International (1361) H2 2025 earnings summary

Executive summary

• Achieved total revenue of RMB 11.1 billion in 2025, up 10.6% year-over-year, with profit attributable to equity holders rising 14% to RMB 1.31 billion.

• Significant growth in Kids segment (up 110% to RMB 2.6 billion) and e-commerce (up 25.9% to RMB 3.3 billion), now accounting for 23.2% and 29.5% of total revenue, respectively.

• Expanded global presence with 1,253 overseas points-of-sale and direct store openings in Malaysia and Cambodia; overseas retail sales surged 125.4% year-over-year.

• Strengthened brand through major international sports partnerships, proprietary events, and high-profile athlete endorsements.

• Continued investment in R&D, sustainability, and expansion of product lines and channels.

Financial highlights

• Gross profit increased 10.6% to RMB 4.6 billion, with gross margin stable at 41.5%.

• Operating profit rose 12.1% to RMB 1.77 billion; basic EPS up 13.8% to RMB 63.3 cents.

• Net cash generated from operating activities jumped 1067% to RMB 814.6 million.

• Final dividend payout ratio at 45%, with annual dividend per share at HK 31.7 cents.

• Cash and cash equivalents at RMB 4,093.8 million; gearing ratio at 2.1%.

Outlook and guidance

• Industry expected to grow to RMB 5.6 trillion in 2026, with sports apparel segment CAGR of 15%.

• Policy support and technology innovation to drive quality and efficiency in sports consumption.

• Kids’ sports equipment market identified as a key growth driver.

• Anticipates continued growth in 2026, leveraging major international sporting events to drive demand.

• Plans to deepen omni-channel integration and enhance brand value globally.