361 Degrees Released 2015 Interim Results, Half A Year's Revenue Reached 2 Billion 200 Million

In August 13th,

International Limited officially released its interim results in 2015.

According to the announcement, the net profit of the company's operating profit increased 34.4% in the first half year, and the net cash amount amounted to RMB 2 billion 700 million yuan.

Orders will be strong in the next three quarters, and performance in the second half of this year is expected to further improve and become one of China's leading sports brand enterprises.

In the six months ended June 30, 2015, the group's turnover reached RMB 2 billion 200 million yuan, an increase of 5.7% over the same period last year and an increase of 22% in the annulus.

Gross margins were further increased by 1.6 percentage points to 41.3% as the price of materials decreased.

The group strictly controls operating costs, resulting in a significant increase in operating profit of 34.4% to RMB 485 million 500 thousand yuan (2014: RMB 361 million 100 thousand yuan). The growth is encouraging and highlights the improvement of the industry.

Although the cost of Finance and tax increased, the profit attributable to equity holders in the first half of the year was still 220 million 400 thousand yuan (compared with the same period last year), which increased by 22.3% to 269 million 600 thousand yuan due to the one-time and unrealized gains related to convertible bonds.

"The industry is steadily recovering, and the brand of the group has been further accepted by the market. I believe that the performance of the group will be better this year," said Mr. Ding Wu, President and executive director of the company.

Footwear sales increased by 16%, mainly driven by sales and average selling prices, reflecting the positive response of the new functional product mix to retailers.

The turnover of clothing products fell by 3.5% over the same period last year, resulting in a higher base of comparison in the fourth quarter of 2013.

The 361 degree children's clothing highlights the difference between the regional brand and the regional brand, and the growth momentum continues.

With the upgrading of the middle class consumption power and the pursuit of high quality products, the group will strive to improve its retail price strategy.

The group has sponsored various international sporting events in the past few years, such as the Asian Games and the Youth Olympic Games. It has also worked with the national sports channel CCTV fifth (CCTV-5) to make the 31st degree success.

It is highly recognized as a high-performance sports brand.

To further enhance brand recognition in the market, the Group continues to provide non cash repair subsidies to licensed stores to establish a unified, harmonious and well known sales network.

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The related investment in the first half of this year is RMB 147 million 700 thousand yuan (2014: RMB 125 million 600 thousand yuan) and has become an essential part of the group's overall advertising and promotion strategy.

In addition to increasing staff costs by 20% in the second half of 2014, other operating costs are controlled.

Accounts receivable has significantly improved, accounts receivable within 90 days of accounts receivable more than 75%.

At the same time, the group received a reliable positive cash flow from business operations and good capital management, making the group's net cash position continue to rise, with a cash balance of 2 billion 700 million yuan as of June 30, 2015.

Store profitability is the key to profitability in the future.

In view of the changing retail environment and the different consumption habits of the new generation of consumers, the group does not expect that the number of shops will increase significantly in the current 7404.

The group has roughly adapted to the new

In order to stimulate the sale of online and mobile phones, different measures are taken to change this.

However, the era of traditional physical stores has not ended. For the group, more than 70% of the shops are located in cities with a line of three or less, especially when the population of sports to entertainment and attitude towards life is increasing.

In view of the strong orders on hand to be delivered in the second half of this year, the group is confident that its annual performance in 2015 will be significantly higher than that of last year.

At the same time, the board announced an interim dividend of 5 cents per share, the same amount as last year, and reiterated that the group will strive to maintain dividend payout policy of not less than 40% of the annual profit.