Core Viewpoint - The stock price of 361 Degrees experienced a significant drop despite reporting revenue and net profit growth for the first half of 2025, indicating a disconnect between market performance and financial results [1][2]. Financial Performance - For the first half of 2025, 361 Degrees reported a revenue increase of 11.0% year-on-year, reaching 5.705 billion yuan, and a net profit increase of 8.6%, totaling 858 million yuan [1][2]. - The revenue growth rate of 11% is the lowest in the past five years, and the net profit growth rate of 8.6% is also the lowest, marking the first time it has fallen to single digits [2]. Sales and Product Performance - The slowdown in revenue growth is attributed to a decline in apparel sales, with adult clothing revenue growing by only 1.6% and children's clothing revenue decreasing by 7.6% [3]. - The average wholesale price of adult clothing fell by 4.5% to 70.7 yuan per piece, indicating a strategy of increasing volume at the expense of price [4]. Cost and Profitability Issues - The company's profitability has declined due to rising sales expenses and production costs, with production costs increasing from 3.016 billion yuan to 3.338 billion yuan, a nearly 11% rise [5]. - Sales and distribution expenses rose by 13.2%, outpacing revenue growth, with commissions to e-commerce platforms increasing by 45.3% and logistics costs rising by 40.2% [5]. Market Position and Brand Strength - 361 Degrees has successfully positioned itself in the market by focusing on cost-effectiveness, with revenue nearly doubling since 2019, reaching over 10 billion yuan in 2024 [7]. - Despite its growth, the brand's strength remains a concern, as it relies heavily on distributors in lower-tier cities, which may weaken price and channel control [8]. Accounts Receivable and Financial Management - As of June 30, 2025, accounts receivable increased by 376 million yuan, with an average turnover period of 146 days, significantly higher than competitors like Anta and Li Ning [9]. - The company is working to manage accounts receivable more strictly, but the reliance on distributors may lead to pricing and brand image challenges [9].
361度，业绩涨了，股价却跌了