Breaking Down 361 Degrees International Limited Financial Health: Key Insights for Investors

Born in 2003 in Xiamen, 361 Degrees International Limited has grown from a domestic sportswear maker into a brand pursuing global recognition-trading on the Hong Kong Stock Exchange as 1361.HK-with a product range spanning footwear, apparel and accessories designed around a mission to "offer valuable sporting goods for everyone" and a vision "to be an Internationalised and Respected Sports Brand"; that trajectory is visible in its role as official partner of major events including the 2018 Jakarta Asian Games, its operations reaching the United States and Europe, and a milestone international retail push marked by opening its first Malaysian store in January 2025, all underpinned by core values-Loyalty, Pragmatism, Collaboration, Efficiency, Integrity and Innovation-that emphasize inclusivity ("One Love"), execution, ethical transparency and continued R&D-driven product competitiveness that invite a closer look at how strategy, sponsorship and store expansion are translating into market momentum.

361 Degrees International Limited (1361.HK) - Intro

• To deliver functional, innovative and stylish sports products that empower everyday athletes and competitive performers.
• To combine performance technology, design aesthetics and value to broaden mass-market sports participation.

• To become a globally recognized Chinese sportswear champion that competes with leading international brands across performance, retail reach and brand loyalty.
• To grow a resilient omni-channel business that balances domestic dominance with sustainable overseas market penetration.

• Performance-first product innovation - rigorous R&D, wearable technology and athlete feedback loops.
• Customer centricity - accessible pricing, broad size ranges and retail presence to serve mass-market demand.
• Integrity and corporate responsibility - ethical manufacturing, supply-chain transparency and community engagement.
• Teamwork and continuous improvement - cross-functional collaboration and metrics-driven operations.

• Annual revenue (recent years): approximately RMB 4.5-7.0 billion (varies by fiscal year; subject to seasonal and channel mix shifts).
• Gross margin: mid-teens to low-20s percentage range depending on channel and product mix in reported periods.
• Capital markets: publicly listed with market capitalization that has fluctuated materially with sentiment and earnings; investors monitor comparable-store sales, inventory turnover and channel mix.

• Product innovation: Expand R&D investment and athlete partnerships to lift performance credentials in running and team sports.
• Omni-channel expansion: Scale owned retail, franchised dealers and digital channels to optimize margin and reach.
• Internationalization: Selective market entry (e.g., Malaysia 2025) and partner-led distribution in the US/Europe to build brand recognition without over-capitalization.
• Sustainability & governance: Improve supply-chain traceability, workplace standards and circularity initiatives in manufacturing.

• Same-store sales growth and retail sell-through rates across key categories (running, basketball, apparel).
• Inventory days and discounting levels indicating channel balance and product-cycle health.
• Gross margin trends tied to channel mix (direct retail vs. wholesale) and input-cost management.
• International revenue contribution and the pace of new market openings (e.g., Malaysia storefronts and subsequent rollouts).

361 Degrees International Limited (1361.HK) - Overview

Mission Statement - 'Offer valuable sporting goods for everyone and encourage them to engage in sports.' This mission reflects 361 Degrees International Limited's commitment to accessibility, performance and community engagement. The brand positions itself to provide high-quality, affordable sportswear and footwear that support active lifestyles, reinforce inclusivity, and promote mass participation in sport under the slogan 'One Love.'

• Accessibility: product lines span entry-level to performance segments to reach a broad demographic.
• Quality & value: focus on cost-effective materials and local supply chains to keep retail prices competitive.
• Community engagement: sponsorship of grassroots sport events and local teams to encourage participation.
• Brand unity: 'One Love' as a unifying message to foster passion and loyalty among consumers.

Strategic emphasis on promoting sports participation is woven into product development, retail distribution and marketing campaigns. The company's public activities consistently prioritize inclusivity - expanding women's and youth ranges, growing e-commerce to serve lower-tier cities, and maintaining physical retail presence in urban and suburban locations alike.

• Product mix: running shoes, basketball footwear, casual sneakers, apparel, and accessories - with running and lifestyle lines driving growth.
• Distribution: combination of owned stores, franchised dealers and major e-commerce platforms to maximize reach.
• Marketing & sponsorship: athlete endorsements and local event sponsorships to translate mission into community visibility.

Mission alignment with corporate actions can be tracked across key indicators - expansion of lower-priced product SKUs, higher online penetration to reach underserved consumers, and steady investment in grassroots sponsorships. For a detailed corporate history, ownership structure and deeper financial/operational analysis, see: 361 Degrees International Limited: History, Ownership, Mission, How It Works & Makes Money

361 Degrees International Limited (1361.HK) - Mission Statement

• Global ambition: prioritize scalable channels (wholesale, franchising, mono-brand stores, e-commerce) to build a consistent international presence.
• Performance and innovation: invest in R&D and product lines tailored to running, training, and lifestyle segments to compete with global peers.
• Brand respect: pursue high-visibility sports sponsorships and athlete partnerships to elevate brand credibility and recognition.
• Sustainable growth: balance retail expansion with margin discipline and inventory management to protect profitability during scaling.

• Capital allocation: maintaining a balance of retail expansion, marketing/sponsorship spend, and inventory control to protect margins.
• KPIs aligned to vision: international revenue share, same-store sales growth (SSSG), brand awareness metrics in target markets, and sponsorship ROI.
• Execution signals: increasing direct retail density in strategic cities, amplified digital commerce and cross-border channels, and selective athlete/event sponsorships.

361 Degrees International Limited (1361.HK) - Vision Statement

• Loyalty - Cohesion: Prioritizing corporate interest through honest, industrious, and responsible conduct across all levels of the organization. Loyalty is operationalized by long-term distributor relationships, centralized merchandising discipline, and incentives that align store-level managers with corporate goals.
• Pragmatism - Execution: Emphasizing practical responsiveness and decisions grounded in measurable results-SKU rationalization, region-specific assortments, and performance KPIs drive SKU-level continuity and markdown control.
• Collaboration - Synergy: Pursuing partnerships across suppliers, retail partners, athletes, and technology vendors to co-create product and channel synergies that deliver mutual value and market penetration.
• Efficiency - Capability: Maintaining focus on end-to-end punctuality and credibility-inventory turns, supply-chain lead-times, and time-to-market are treated as primary performance levers, reinforced by process improvements and digital order-management.
• Integrity: Ensuring transparency and ethical standards in dealings with customers, suppliers, and employees-governance, anti-corruption controls, and supplier code of conduct are integral to procurement and contracting.
• Innovation: Sustaining competitiveness through targeted R&D investment, eco-friendlier materials and product lines, and digital adoption (e-commerce, data-driven merchandising, and performance testing).

• Operational KPIs aligned to values: inventory turns, sell-through rates, gross margin stability, and store-level profitability targets drive Pragmatism and Efficiency.
• R&D and Product: Investment in cushioning systems, breathable textiles, and eco-fibers-Innovation coupled with athlete endorsements for product validation.
• Supply Chain & Sourcing: Supplier audits, consolidated procurement, and lead-time reduction programs reflect Integrity and Collaboration.
• Talent & Culture: Retention, internal mobility, and performance-linked incentives foster Loyalty and Capability.