Industry Stock Market: 361 Group Released 2019 Annual Report Results

On March 17th, the 361 year group released 2019 annual report on performance, which showed that as of December 31, 2019, the 361 group revenue reached RMB 5 billion 630 million yuan, an increase of 8.6% compared with the same period last year. The group equity holders should account for a 42.4% increase in profits, reaching RMB 430 million yuan.

Among them, children's clothing business income accounted for 17.7% of the total revenue; other businesses (including shoe sales) accounted for 1.5%; the remaining 80.8% of the revenue was mainly contributed by 361 core brand products, 361 international and e-commerce business.

Sales of 361 core products (footwear, clothing and accessories) showed an upward trend, with an annual growth of 7.9%, 3% and 31.8% respectively. In the year of review, the percentage of footwear sales to total revenue was slightly increased from 42.7% to 42.4%, while clothing sales decreased slightly from 38.5% to 36.6%. Footwear is still the most powerful driving force for all 361 core brand products of the group.

For the 361 international business, revenue increased by 41.4% to RMB 132 million, accounting for 2.3% of the group's total revenue in 2019. At present, the 361 group has set up a wholly-owned Affiliated Companies in the United States, Brazil and Europe. Through the local sales team, the products of the 361 international line are sold to local multi brand sporting goods shops.

The profit of 361 children's clothing increased by 22.4% to RMB 999 million, or 17.7% of the total income. The increase was mainly due to an increase of 22% in sales and an average increase of 0.3% in wholesale prices per annualized year. Unlike the 361 core brand, the growth driving force of the 361 children's clothing business is mainly clothing products, not footwear products.

It is understood that since 2010, 361 children's clothing has been operating as an independent business department. Its products are mainly oriented to children's demand for sportswear from three to twelve years of age. In 2019, the 361 children's clothing brand further extended the product age coverage span, and extended the shoes and clothing products suitable for children under three years old.

In the year of review, the sales revenue of online sales of the 361 e-commerce business increased by 23.9% to RMB 916 million yuan, accounting for about 16.3% of the total revenue. The 361 Group believes that e-commerce business will continue to contribute and will continue to grow.

It is understood that the 361 e-commerce business mainly through Tmall, Taobao, Jingdong and other e-commerce platforms and WeChat mall small program and official website. These online platforms are authorized to sell specialized products online and form differentiated marketing with products sold by entities.

In the chairman's report, the 361 / 2019 group summed up the results of the year:

Operational efficiency upgrade, profitability steady

Since 2018, meticulous management of supply chain and distribution chain has been gradually promoted. In terms of supply chain, the transfer of production from high cost areas to low cost areas, and the upgrading of offline channels and e-commerce platforms on the basis of existing mature distribution models on the basis of existing distribution models, the above measures have achieved remarkable results today.

Focus on core brand and continuously enhance brand power

In 2019, the group focused its resources on the 361 core brand, continuously enhancing core brand competitiveness, and concentrating its advantages to Brand Company. In 2020, this business strategy will continue to consolidate the core competitiveness.

Win the market by quality, and actively enhance product strength.

361, over the years, we have persisted in investing in technology research and development, and continuously accumulated technological strength. In addition, we have always adhered to the positioning of "mass professional sports", long-term deep tillage products, sponsoring marathon events for many years, signing many elite runners, improving product quality from a professional perspective, and better meeting the needs of consumers' professional sports.

361. Sponsorship competition

Faced with the development in 2020, 361. The announcement indicates that the outbreak of the new coronavirus disease (COVID-19) will have an impact on the operation and financial performance of the industry and the 31st 2020 brand in the first half of the year. In the short term, China's sports consumption demand is under pressure, but in the long run, after the extinction of the epidemic, people's physical training needs will rise, and the sports industry trend will continue to improve.