Group 1 - The company is exploring the use of stablecoin payment and settlement solutions for product sales outside mainland China, including offline stores, e-commerce sales, supply chain services, and digital ecosystem businesses [1] - An account has been opened with an independent third-party service provider specializing in fiat and stablecoin omnichannel digital payment solutions to facilitate efficient and seamless value flow globally [1] - The integration of virtual assets is expected to create significant business opportunities, particularly for cross-border e-commerce and overseas offline store clients who have ongoing needs for local payments and cross-border settlements [1] Group 2 - The adoption of stablecoin payment methods is anticipated to enhance payment efficiency and reduce costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is also expected to help mitigate exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Core Viewpoint - The company is exploring the use of stablecoin for payment and settlement solutions to enhance product sales outside mainland China, indicating a strategic shift towards digital payment methods [1] Group 1: Company Initiatives - The company has opened an account with an independent third-party service provider specializing in digital payment solutions involving both fiat currency and stablecoin [1] - The integration of virtual assets is seen as a significant business opportunity, reflecting the growing acceptance of cryptocurrencies in the global business community [1] Group 2: Market Demand - The company serves numerous cross-border e-commerce and overseas offline store clients, who have a continuous demand for local payment and cross-border settlement solutions [1] - The adoption of stablecoin payment methods is expected to enhance payment efficiency and reduce costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is anticipated to help mitigate exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Core Viewpoint - 361 Degrees is exploring the use of stablecoin payment and settlement solutions for product sales outside mainland China, aiming to enhance payment efficiency and reduce costs for cross-border e-commerce clients [1] Group 1: Company Initiatives - The company has opened an account with an independent third-party service provider specializing in fiat and stablecoin digital payment solutions [1] - The integration of virtual assets is expected to create significant business opportunities for the company [1] Group 2: Market Context - There is an increasing acceptance of cryptocurrencies in the global business community [1] - The company serves numerous cross-border e-commerce and overseas offline store clients who have ongoing needs for local payments and cross-border settlements [1] Group 3: Expected Benefits - The adoption of stablecoin payment methods is anticipated to improve payment efficiency and lower costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is also expected to help reduce the exchange rate risks faced by the company when transacting with clients outside mainland China [1]

有關可能使用穩定幣支付及結算解決方案的業務最新資料 本公 佈由 361 度國 際有限 公司（「本 公司」，連同 其附 屬公 司統 稱「本 集團」）自 願作 出，以向本公司股東及潛在投資者提供本集團的最新業務發展情況。 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：1361） 自願公佈 本公司股東及潛在投資者於買賣本公司股份時務請謹慎行事。 本公司近期正探索使用穩定幣支付和結算的解決方案，用於本集團在中國大陸以 外地區的產品銷售，涵蓋境外線下門店、電子商務銷售、供應鏈服務和數位生態 業務。就此而言，本集團已在一名獨立第三方服務供應商處開設賬戶，該名供應 商深耕於法定貨幣和穩定幣全渠道數字支付解決方案，助力企業在環球上實現高 效及無縫的價值流動。 全球企業界對加密貨幣的接納程度日益提升。本集團認為，整合虛擬資產將創造 重大業務機遇。本集團服務 ...

Core Insights - The importance of the "14th Five-Year Plan": The upcoming "14th Five-Year Plan" is expected to significantly impact China's economic and social development over the next five years, shifting focus from production to a balance between production and consumption due to the current issue of insufficient effective demand [1] - Strengthening consumption policies: Starting in 2024, consumption policies will be significantly enhanced, including the allocation of special government bond funds to support consumption upgrades. Continued funding is expected in 2025 and 2026 [1] - Potential of service consumption: China's service consumption still lags behind developed economies, indicating a substantial opportunity for growth in this sector to stimulate consumer interest and optimize the consumption environment [1] - Rise of technology consumption: With a rapid technological development and an engineering talent surplus, products like robotic vacuum cleaners and drones are gaining market attention, likely creating new consumer demand [1] - Optimization of the overall consumption mechanism: Measures such as consumption tax reform will encourage local governments to transition from production-oriented to service-oriented, promoting the internationalization of quality consumption companies and enhancing residents' consumption capacity [1] Investment Recommendations - Food and Beverage: Recommended companies include Dongpeng Beverage and Lihigh Food, with a focus on Youran Dairy and Bairun Co [2] - Service Sector: Recommended companies include Guming, Mixue Group, and Bubugao, with a focus on Zhongsheng Holdings [2] - Light Industry: Companies to watch include Hengfeng Paper and Xilinmen [3] - Trendy Toys: Recommended companies include Pop Mart and Blokus [4] - Home Appliances: Recommended companies include Midea Group, Haier Smart Home, TCL Electronics H, Roborock, and Ecovacs, with a focus on Yingshi Innovation [5] - Agriculture: Recommended companies include Zhongchong Co, Petty Co, Muyuan Foods, and Haida Group [11] - Textile and Apparel: Recommended companies include Anta Sports, Xtep International, 361 Degrees, and Hailan Home, with a focus on Li Ning and Sanfu Outdoor [11] Report Content Analysis - Expanding consumption share: The report emphasizes that expanding consumption share is essential for achieving Chinese-style modernization, as China's consumption rate is significantly lower than that of developed countries [9] - Shift in fiscal spending: During the "14th Five-Year Plan" period, fiscal spending will shift from material investments to human capital investments, increasing support for education, healthcare, and housing [9] - Promotion of common prosperity: The report highlights the need for income distribution reform and the promotion of the Zhejiang common prosperity model to achieve balanced development [9] - Consumption tax reform: The report suggests that consumption tax reform will help local governments transition from production-oriented to service-oriented, enhancing the consumption environment [9] - Transition from traditional to new consumption: The report analyzes the maturation of traditional consumption markets and the rise of new consumption, which is characterized by a focus on quality and personal satisfaction [9] - Stimulating interest in service consumption: The report indicates that the shift from physical to service consumption is crucial for expanding domestic demand, with growing demand for events and performances benefiting local consumption [9]

Market Overview - The textile and apparel sector has shown resilience in mid-term performance, with the sports segment leading apparel consumption [1][12] - In August, the A-share textile and apparel sector slightly underperformed the broader market, but has shown stable performance since September, with brand apparel outperforming textile manufacturing [1][12] Brand Apparel Insights - Retail sales of clothing in July grew by 1.8% year-on-year, with a slight deceleration compared to the previous month [1] - E-commerce growth in July rebounded significantly, with outdoor sports leading the way; growth rates for various segments included sports apparel at +11%, outdoor apparel at +26%, and home textiles at +10% [1] - Notable brand performances included Decathlon with +63%, Puma with +41%, and Lululemon with +39% in sports apparel; outdoor brands like Kailas and Arc'teryx also showed strong growth [1] Textile Manufacturing Insights - In August, Vietnam's textile exports fell by 4.5% year-on-year, while China's textile exports improved slightly with a growth rate of 1.4% [2] - The export performance of apparel and footwear from China was poor, with declines of 10.1% and 17.1% respectively [2] - The price of cotton showed slight fluctuations in August, with a small decline noted in September [2] Sector Performance Summary - For the first half of 2025, textile manufacturing revenue grew by 7.8% year-on-year, while the apparel and home textile sector faced a decline of 6.4% [3] - The gross margin for the textile manufacturing sector remained stable at 19.4%, while the apparel and home textile sector's gross margin increased slightly to 46.1% [3] - Key players in the apparel sector, such as Anta and Xtep, maintained steady growth in revenue and profit, while non-sports apparel faced significant challenges [3] Investment Recommendations - Focus on undervalued leaders with strong fundamentals in brand apparel, particularly in the sports segment, with recommendations for Anta Sports, Xtep International, and Li Ning [6] - In textile manufacturing, recommend companies with significant rebound potential and strong fundamentals, such as Shenzhou International and Huayi Group [6]

Core Insights - ONEWAY, a Finnish outdoor brand, opened its first store in Zhengzhou, China, showcasing a new Nordic design style and the 2025 autumn/winter product line [1] - The brand aims to cater to the growing demand for specialized outdoor equipment in China's first-tier cities, reflecting confidence in the outdoor consumer market [1] - ONEWAY is part of the 361° Group, which demonstrates strategic capabilities in the outdoor segment and aims to provide high-quality, professional sports products and services [1] Company Overview - ONEWAY originated in Finland and began operations in the Greater China region in 2013 under the 361° Group [1] - The brand is set to undergo a complete rebranding by 2024, emphasizing its Nordic outdoor sports heritage [1] Industry Trends - The outdoor sports market in China is experiencing significant growth, with an increasing demand for specialized equipment [1] - ONEWAY's professional design and Nordic heritage position it well to offer diverse options to consumers, promoting the professionalization of the outdoor equipment market [1]

Group 1 - Zhang Shuihua, a nurse from Fujian Medical University First Affiliated Hospital, won the domestic women's group championship at the Harbin Marathon and subsequently expressed a desire for leadership support to take time off for marathon running, which sparked controversy [1][3] - 361° announced the termination of its contract with Zhang Shuihua during a live broadcast on September 3, indicating the brand's response to significant social pressure [3][4] - The financial report released by 361° on August 12 showed a revenue increase of 11% year-on-year to 5.705 billion yuan, with a net profit of 858 million yuan, reflecting an 8.6% growth [3][4] Group 2 - 361° has signed 29 endorsers across various sports, with 13 specifically in the running category, highlighting the brand's focus on marketing within the running sector [4] - The types of marathon runners that sports brands typically collaborate with include top runners, elite runners like Zhang Shuihua, and running influencers, with elite runners having limited commercial value compared to influencers [4][5] - The potential for Zhang Shuihua to sign with other sports brands is considered low due to the abundance of elite runners available for brands to choose from [5]

Core Viewpoint - The recent controversy surrounding 361° and its endorsement of marathon runner Zhang Shuihua has led to a significant backlash, resulting in the termination of their partnership and raising concerns about the brand's reputation and sales performance [2][4][7]. Company Performance - 361° reported a revenue of 5.705 billion RMB for the first half of 2025, marking an 11.0% year-on-year increase, and a net profit of 858 million RMB, up 8.6% [15][16]. - Despite the positive financial results, the company's stock price fell over 12% following the earnings announcement, leading to a market value loss of approximately 1.2 billion HKD [5][15][17]. - The company's gross margin increased by 0.2 percentage points to 41.5%, while the operating profit margin decreased by 0.7 percentage points to 19.9% [16][19]. Market Position and Strategy - 361° has adopted a cost-effective strategy, with 52.2% of its products priced below 200 RMB, which has helped it achieve significant revenue growth in previous years [25][26]. - The brand's focus on value-for-money has been challenged by competitors who are moving towards high-end and diversified product lines, raising questions about 361°'s long-term growth potential [28][29][32]. - The company has not engaged in any recent acquisitions to diversify its offerings, which contrasts with competitors like Anta and Xtep that are expanding into high-end markets [29][31]. Brand Image and Consumer Perception - The choice to endorse a "grassroots" athlete like Zhang Shuihua was initially seen as a way to connect with consumers, but the subsequent controversy has damaged the brand's image [12][14]. - The incident has highlighted the risks associated with using non-celebrity endorsements, as public perception can quickly shift and impact brand reputation [12][14]. - 361°'s brand identity is heavily tied to its value proposition, making it difficult to pivot towards higher-end products without losing its established consumer base [28][32].

Core Viewpoint - The incident involving "fastest nurse" Zhang Shuihua and her contract termination with 361 Degrees has sparked significant public discussion, highlighting the brand's marketing strategies and the implications of athlete endorsements in the sports industry [1][3][4]. Group 1: Incident Overview - Zhang Shuihua won the women's group championship at the 2025 Harbin Marathon, but expressed difficulty in taking leave from her nursing job to participate in the event, calling for support from her superiors [1][4]. - Following the incident, 361 Degrees displayed a message in their live stream indicating the termination of their contract with Zhang Shuihua, emphasizing their commitment to promoting sports and a healthy lifestyle [1][3]. - The brand has not issued a formal statement regarding the contract termination, leading to speculation about their marketing approach and athlete selection criteria [1][4]. Group 2: Endorsement Strategy - 361 Degrees has signed a total of 29 endorsers in the first half of 2025, including prominent athletes from various sports, indicating a diverse endorsement strategy [6][12]. - The brand's endorsement roster includes 13 runners, as well as notable figures from basketball, such as NBA stars Nikola Jokic and Aaron Gordon, showcasing a broad appeal across different sports [6][12]. - The company aims to enhance brand influence and sales through partnerships with athletes, leveraging their professional image to connect with consumers [10][12]. Group 3: Advertising and Sponsorship Expenditure - 361 Degrees has consistently increased its advertising and promotional spending, surpassing 1 billion yuan annually in recent years, reflecting a growing investment in brand visibility [13][14]. - The advertising expenditure ratio reached 10.1% in the first half of 2025, marking a 6.4% year-on-year increase, indicating a strategic focus on enhancing brand presence [14]. - The brand's sponsorship of major sporting events, including the Asian Games and World Swimming Championships, further illustrates its commitment to expanding market reach and brand recognition [13][14].