361 Degrees (01361) 2025 Annual Report: The sports apparel sector is scarce with a unique combination of "high dividends + high growth".

As a leading domestic professional sports brand, 361 DEGREES (01361) adheres to long-termism, achieving stable operation by driving products and channels in 2025. The company achieved operating income of 11.146 billion yuan for the full year, a year-on-year increase of 10.64%; net profit attributable to the parent company was 1.309 billion yuan, a year-on-year increase of 13.95%, with simultaneous improvement in operating quality and profit levels. Through research and development innovation and channel upgrades, the company continues to strengthen its core competitiveness, delivering a solid annual report to the capital market. With stable operation and continuous value creation, the company has had a dividend rate exceeding 5% for three consecutive years, ranking first in the industry for revenue growth in the past three years, and achieving continuous ROE growth for five years. On top of high growth, it also has the advantage of stable dividends. Moreover, with a market value of just over 11 billion yuan and a low PE ratio, the company has significant potential for both performance growth and valuation recovery. As a rare "high dividend + high growth" quality target in the sportswear sector. Super Stores: Restructuring offline channels to create core engines for revenue growth In 2025, 361 DEGREES positioned itself as the "National Sports Equipment Station" to accelerate the landing of superstores, breaking through traditional store operating constraints and restructuring offline retail scenes. According to the company's official disclosure, as of December 31, 2025, 361 DEGREES has a total of 127 superstores worldwide, with significant achievements in channel scale expansion. In terms of single store operating efficiency, superstores, with their scene-oriented product displays and one-stop consumer experiences, have significantly higher sales per square meter compared to traditional stores, confirming the commercial viability of the new format. More importantly, the proportion of consumers purchasing a full range of products including footwear and clothing in a single visit to the superstore has greatly increased, effectively breaking the growth restrictions of a single product category and providing solid support for store profitability improvement. In terms of international channel layout, 361 DEGREES has taken the lead, with the first overseas superstore officially opening in Cambodia, marking a crucial step in expanding the brand's international market presence. The subsequent internationalization of retail networks and localization of operations will continue to deepen, opening up overseas incremental space for long-term growth. E-commerce Upgrade: A comprehensive channel layout to broaden new growth boundaries While innovating offline channels, 361 DEGREES' e-commerce business continues to accelerate, building a comprehensive channel layout system covering traditional e-commerce and instant retail. In 2025, the company's e-commerce business achieved rapid growth, with a year-on-year growth of 25.9%, further increasing the contribution of online channels to performance. The company has taken the lead in deep cooperation with leading platforms in instant retail, accurately capturing local life consumption scenarios. Leveraging a network of thousands of offline stores nationwide, 361 DEGREES has fully integrated into the main instant retail platforms such as Taobao Flash Purchase, Meituan Flash Purchase, and JD Fast Delivery, enabling online ordering and rapid delivery from nearby stores, effectively supplementing the shortcomings of instant delivery and forming an efficient closed loop of "online traffic, offline fulfillment," significantly enhancing synergies across all channels. At the same time, the company continues to optimize traditional e-commerce platform operations, continuously improving user retention rates and average order value through user engagement, precise product placement, scene-based marketing, etc., forming efficient complementarity with instant retail channels and expanding online growth boundaries comprehensively. Cost-effective strategy: Building a strong foundation for development to drive long-term stable growth Based on its professional, youthful, and international brand positioning, the company focuses on core categories such as running, basketball, comprehensive training, and sports lifestyle, continuously strengthening its product and channel competitiveness through technological innovation and efficient operations, precisely meeting the demands of the general public for professional sports consumption. It has developed a unique competitive advantage by walking a differentiated development path between industry consolidation and high-end competition. On the product side, the company insists on driving product upgrades through research and development innovation, increasing research and development investment, continuously improving product professional performance and quality standards, enriching the core product category matrix, and providing solid support for group development. On the channel side, through the establishment of the Wuxi Online Offline Communication Information Technology Co., Ltd. system and the innovation of superstore formats, the company has further optimized supply chain efficiency and retail operation levels, enhanced end delivery capabilities and consumer experiences, promoted brand value and operational quality improvement simultaneously, and achieved a virtuous synergy among brands, channels, and consumers. Value Outlook: High growth + high dividends, highlighting long-term investment value From the perspective of value investment logic, the company's growth path is clear, and its profit quality continues to improve. It has maintained strong operational resilience for many years. Core financial data such as dividend yield, revenue growth, and ROE are impressive. What's even more valuable is that against the backdrop of economic pressures and industry pressures in 2025, the company still achieved stable revenue and profit growth, demonstrating strong operational resilience and risk resistance. Many brokerages have pointed out that the company's valuation is significantly lower than the industry's reasonable level, with sufficient margin of safety. Looking to the future, the innovative dividends of the company's full-channel will continue to be released. As the overseas market gradually opens up long-term incremental space, in the context of the upgrade of the sportswear industry and the wave of mass sports consumption, 361 has entered a path of high-quality development. With outstanding advantages in performance stability, high dividends, low valuations, and significant potential, the company is expected to bring stable and substantial long-term returns to investors through the resonance of performance growth and valuation recovery.