361 Degrees achieves double-digit growth in revenue and net profit in the first half of the year

361 Degrees International Limited (hereinafter referred to as "361 Degrees") has released its mid-year performance report for 2023. During this period, 361 Degrees achieved record-high mid-year revenue and net profit, with revenue reaching CNY 4.312 billion, a year-on-year increase of 18%, and net profit of CNY 704 million, a year-on-year increase of 27.72%. The gross profit margin also increased slightly by 0.2 percentage points to 41.7% compared to the same period last year.

In the first half of 2023, the revenue of 361 Degrees' children's business and other businesses were CNY 911 million and CNY 67.573 million, accounting for 21.1% and 1.6% of the total revenue, respectively. The sales volume of 361 Degrees' core branded products and international business accounted for 77.3% of the total revenue. The revenue from the international business segment reached CNY 83.3 million, a year-on-year increase of 66.9%.

In terms of product categories, the sales of 361 Degrees' footwear increased by 28.4% to CNY 1.901 billion in the first half of the year, while the sales of clothing decreased by 1.4% to CNY 1.362 billion. The proportion of footwear sales in total revenue increased from 40.5% to 44.1%, while the proportion of clothing sales decreased from 37.8% to 31.6% year-on-year.

The report indicates that the significant increase in revenue from 361 Degrees' footwear is directly related to the growth in sales volume and average wholesale selling price. During the reporting period, the average wholesale selling price of 361 Degrees footwear increased by 3.5% year-on-year to CNY 122.1 per pair, and the sales volume increased by 24% to 15,600 pairs.

However, despite the introduction of multiple new products with higher average wholesale selling prices and increased sales revenue from e-commerce platforms, changes in sales mix and increased production costs have completely offset the increase in gross profit margin. Therefore, the gross profit margin of 361 Degrees' footwear remained unchanged at 43.5% in the first half of the year. In addition, the gross profit margin of 361 Degrees' clothing products decreased by 1.4 percentage points to 40.1% year-on-year, while the gross profit margin of the children's business segment increased by approximately 1.7 percentage points.