361 Degrees Half A Year Revenue Of 3 Billion 200 Million Yuan, Three Major Initiatives To Turn The Tide

At noon on August 20th, the 361 degree group (Stock Code: HK01361) released the first half of 2019's financial report, and the related financial data were quite bright: in the first half of the year, the turnover of 361 degree group reached 3 billion 236 million 800 thousand yuan, an increase of 7.3% over the same period last year, and operating profit of 641 million 500 thousand yuan, an increase of 1.7% over the same period, of which electricity providers and children's wear business grew rapidly. The 361 degree board announced that the interim dividend of 2019 will be 8.2 cents per share (about 7.2 RMB) and a special dividend of 1.1 cents (about 1 RMB), with a total dividend yield of about 46.2%. After the release of the earnings report, the stock price of 361 degrees was quoted at HK $1.550, rising by 24% on a single day.

The 361 point half yearly financial report also highlights a series of Operational Highlights, which can be summarized as seven aspects: the two core products, footwear products and clothing products are on the rise, up 3.8% and 12.1% respectively; the growth momentum of 361 degree children's clothing has been increased by 6.6%; the sales revenue of Online professional products sales has increased by 28.5%; in June 2019, on the occasion of 10th anniversary listing, the brand remolding plan was launched, focusing on products to win users; innovation driven cross boundary cooperation and unprecedented enthusiastic market reaction; the international line technology platform butted the domestic supply chain; the layout of youth football ecology and the consolidation of children's clothing business brand advantage.

After exploring the many bright results of the 361 - and half year earnings report, the big sports business discovered that the 361 degree brand remolding plan, by insisting on innovation drive to create explosive products, and with the continuous layout of Juvenile Soccer to maintain the advantages of children's clothing field, are three key initiatives that are leading the trend in the first half of 361.

Start the brand remodeling program, targeting young and middle class groups.

Ten years ago, in 2009, 361 degree was successfully listed on the main board of the Hongkong stock exchange, thus realizing the transformation of the listed companies from Jinjiang private enterprises to modern and standardized management. Over the past ten years, 361 degrees have made great progress in product development and many other aspects. Through continuous sponsorship of large international competitions, star athletes and national teams and other forms, the brand reputation of 361 degrees continues to improve. So far, 361 degrees has been sponsoring the three Asian Games in Guangzhou, Inchon and Jakarta. In 2016, it became the first Chinese sports brand to sponsor the Olympic Games. In 2011 and 2014, it also sponsored the Shenzhen World University Games and Nanjing Olympic Youth Olympic Committee respectively. With the help of the international competition, the international layout of 361 degree is also improving.

At the same time, the rapid development of China's economy has laid a good foundation for the sports industry, and has also promoted the development of the sports industry in the direction of refinement and standardization. Under this background, the buying habits of the main consumer groups in China have undergone tremendous changes. Their demand for commodity function, price, appearance and other physical properties has been further upgraded, and the demand for spiritual culture such as brand culture and product temperament has begun to appear. More and more consumers are willing to pay emotional premium for commodities.

In response to the changes in consumer groups' consumption habits, in June 2019, the brand remodeling plan was launched at 361 degrees, and the brand was remodeled from the dimensions of brand, product and activity. The brand concept of "more love" was visualized, so that the mainstream consumer group had more resonance towards brand spirit. 361, we hope to provide consumers with "just right products", give the merchandise proper functions and designs, and empower more people to participate in sports.

The core purpose of brand remolding is to meet the needs of consumption upgrading, aiming at a younger and relatively middle class market, creating the cultural value of commodities and driving commodities through stories. Cultural significance is a very important part of the brand. In the first half of 2019, 361 degrees worked together to build up a brand culture and create new cultural elements for the brand by building cultural elements such as IP and collaborate with young people who love to see through the fire line.

As an important fulcrum of brand remolding strategy, 361 degrees built the "Home Game" basketball into the community project. Starting from the passion for basketball, we should create a basketball playing place in the community, fully integrate relevant sports resources, and set up a professional coach team for basketball enthusiasts, especially young basketball lovers.

Adhere to innovation and create a variety of explosive products to lead consumption upgrading

In the first half of 2019, the 361 degree brand continued to appear in the explosive products, thus winning the favor of young consumers and promoting the brand reputation upgrading. Behind this is a 361 degree long-term adherence to innovation driven, so as to successfully play the cross-border trend of cooperation. A data that must be emphasized is that in the first half of 2019, the 361 - point research investment accounted for 3.1% of the turnover. It is through insisting on scientific research investment that we have strengthened the innovative ability of products, and finally produced a series of explosive products.

In April, Liao Wenxing, the 361 degree joint famous craftsman, launched the series of "basketball shoes" built up, which is the unique design of the iron tyre and the ever-changing texture.

In June, in the commemoration of up to IP 40th anniversary, 361 degrees launched the "Gundam" joint products. With the perfect combination of leading technology, trend and function, we will integrate the sense of future and retro feeling into the design, wake up the love that 80/ will never lose to mobile fighters after 90 years. The Gundam series triggered a panic buying craze, and more than sixty thousand of the bookings were harvested at the pre-sale stage.

In July, 361 degrees and Tencent's CF, the first domestic shootout game with more than 500 million users, crossed the line to launch a series of gun shoes. Its design inspiration comes from the elements of military wind in the game, and runs the national tide in the design of this series of merchandise. In line with online, offline and other multi-channel three-dimensional dissemination, through the theme competition, flagship store, immersive drama, live broadcast, star TVC launch, virus video delivery and other ways, gun shoes attract more consumers' attention. Among them, the innovation mode of "clothing tour linkage" has gained 190 million of the topic fever.

At present, with the continuous empowerment of sports industry by science and technology, mass sports are becoming more specialized and differentiated, and consumer demand is more diversified and rich. Under this background, to grasp opportunities from diversified demands, 361 degree continuously strengthen brand building and optimize product series, leading the new trend of consumption upgrading.

In terms of product technology, the technology platform of the 361 degree international line has been smoothly butted with the domestic supply chain. In the next 361 degrees, the domestic supply chain and production system will launch more high-value and high functional products under the help of the international line technology platform, return the market and consumers, and enhance the scientific and technological properties of 361 degrees products in all aspects.

Continuous layout of youth football to stabilize children's brand advantage

In the 361 - and half year earnings report, the growth rate of children's clothing at 361 degrees is amazing. Children's clothing at 361 degrees increased by 6.6% over the same period last year, and has become one of the main driving forces of the 361 degree business growth. It needs to be pointed out that contemporary Chinese children have a high level of comprehensive literacy, fashion trends, desire for individuality and high enthusiasm for consumption, and childhood loyalty is very high. In childhood, once the identity of a brand is formed, this loyalty will be accompanied by a lifetime or even a lifelong belief. In this context, who dominates the children's clothing field means that the brand loyalty of China's future consumer groups has been won in advance.

In order to stabilize the brand advantage of children's market, 361 degree has made a lot of layout in the field of youth sports. In 2018, 361 degrees joined hands to create a youth soccer training system. In June 2019, the children of 361 degrees became the strategic partner of Hengda football school and the equipment sponsor of elite soccer team of Hengda football school. In the same month, he worked with Beijing hitu national football training team to provide professional football equipment for the U8-U12 team.

Through in-depth cooperation with Hengda, Guoan and Shenhua three major football giants in product R & D, event cooperation and other fields, these 361 degrees of cooperation can not only enhance the design and research and development capabilities of children's clothing products, but also enhance their professionalism in the field of children's sports, which can draw a larger user base with children's business expansion and prepare for future business growth.

As a national movement children's clothing brand, 361 degree children have the determination to promote the development of China's youth football career. In the future, they will actively play their role in the accumulation of brand resources and product research and development capabilities, and do their best to bring the most professional and high quality football equipment for children. 361. We hope that our products can cover many age groups from preschool children to teenagers, adults and so on, so as to train consumers to carry out lifelong brand loyalty.