Group 1: Event Overview - 361 Degrees has terminated its partnership with "fastest nurse" Zhang Shuihua, leading to significant public backlash and media coverage [2][3][11] - The termination was perceived by many as a result of Zhang's comments during a post-race interview, which sparked controversy regarding her work-life balance and the ethics of her dual career as a nurse and athlete [9][11] Group 2: Company Performance - As of June 30, 2025, 361 Degrees reported revenue of 5.705 billion RMB, an increase of 11% year-on-year, and a net profit of 858 million RMB, up 8.6% [12][14] - The company has a total of 5,669 stores, with 76% located in third-tier and lower cities, indicating a strong foothold in lower-tier markets but a need to enhance its presence in first and second-tier cities [12][14] Group 3: Research and Development - 361 Degrees has invested 2.8% of its revenue in research and development, with plans to increase this to between 3% and 4% in the current year [13][15] - The company has achieved 870 patents and employs 832 technical staff, focusing on innovative products such as running shoes and sports apparel [15] Group 4: Market Strategy - The company aims to expand its market share in both domestic mid-to-high-end segments and international markets, despite facing challenges [15][16] - The Chinese sports industry is projected to exceed 7 trillion RMB by 2030, presenting significant growth opportunities for companies like 361 Degrees [16]

Core Viewpoint - The article discusses the recent controversy surrounding Zhang Shuihua, a marathon runner and former sponsored athlete of the domestic sports brand 361°, following her performance at the Harbin Marathon and the subsequent termination of her contract with the brand [3][4]. Summary by Sections Zhang Shuihua's Performance and Contract Termination - Zhang Shuihua achieved a time of 2 hours 35 minutes and 30 seconds, winning the domestic women's championship at the Harbin Marathon, but ranked ninth overall [5][7]. - The contract between 361° and Zhang Shuihua has been terminated due to adjustments in their respective development paths, with Zhang removing related content from her social media [3][4]. Harbin Marathon Overview - The 2025 Harbin Marathon attracted 35,000 participants and has been upgraded to a World Athletics Gold Label event, indicating higher competitive standards and a larger prize pool [5]. - The total prize money for the marathon has significantly increased, with the full marathon champion's prize reaching $80,000 (approximately 560,000 RMB) [5]. Prize Distribution and Incentives - Despite her strong performance, Zhang Shuihua did not receive the rumored $80,000 prize as the Harbin Marathon does not offer special domestic awards [5][7]. - 361° has a reward mechanism for athletes achieving specific times, with a maximum bonus of 1 million RMB for top performances [7][8]. Market Dynamics and Brand Competition - The running market in China is expanding, with 671 road running events held nationwide, attracting approximately 6.56 million participants [11]. - Brands are increasingly sponsoring athletes to enhance visibility and sales, with 361° reporting a 59% increase in sales for its running shoe line during promotional events [12].

Group 1 - The controversy surrounding Zhang Shuihua, the "fastest female nurse," arose after her comments seeking support post-Harbin Marathon, where she was previously a signed athlete for the local sports brand 361° [1][4] - Zhang Shuihua achieved a time of 2 hours 35 minutes and 30 seconds, securing the domestic women's championship, but did not receive the rumored $80,000 bonus due to the absence of a domestic special award at the event [2][6] - The 2025 Harbin Marathon has been upgraded to a World Athletics Gold Label event, attracting top global runners and significantly increasing the prize pool, with the full marathon champion's prize reaching $80,000 (approximately 560,000 RMB) [2][4] Group 2 - The partnership between 361° and Zhang Shuihua has been paused, with her social media reflecting the termination of their contract [1][4] - The incentive mechanism for marathon runners by 361° includes a maximum bonus of 1 million RMB for achieving specific performance standards, with updated criteria effective from January 2025 [4][5] - The running market in China is expanding, with 671 road running events held nationwide, attracting approximately 6.56 million participants, indicating a growing interest in marathon events [7] Group 3 - The competitive landscape among sports brands is intensifying, with brands increasingly sponsoring runners to enhance visibility and sales, particularly in the marathon segment [7] - 361° reported a significant increase in sales of its running shoe products, with a 59% year-on-year growth during the last Double Eleven shopping festival, attributed to the brand's investment in marathon events [7]

Core Viewpoint - The article highlights the intense competition in the sportswear industry, leading to increased discounting practices that negatively impact profit growth and gross margins [2][4]. Revenue and Growth - In the first half of 2025, the four major sports brands in Hong Kong—Anta Sports, Li Ning, Xtep International, and 361 Degrees—achieved revenue growth, with Anta leading at 38.54 billion yuan and a growth rate of 14.26%. Li Ning, Xtep, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [4]. - Over the past three years, except for Anta, the other three brands have shown a decline in growth rates, with Xtep's revenue growth dropping from 14.76% to 7.14%, 361 Degrees from 18.00% to 10.96%, and Li Ning from 12.98% to 3.29% [4]. - Anta's revenue growth is primarily driven by its outdoor brands, while its main brands, Anta and FILA, have seen growth rates decline to single digits [4]. Online Channel Performance - Online channels have become a common growth highlight for the four companies, with Anta, Li Ning, and 361 Degrees reporting online revenue growth rates of 17.6%, 7.4%, and 45% respectively. Xtep did not disclose its overall online growth but noted that its main brand's e-commerce business grew and accounted for over 30% of total revenue [4][5]. - The online business expansion has negatively impacted gross margins, with Anta's gross margin decreasing by 0.7 percentage points to 63.37%, attributed to increased costs and discounts [5]. - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and increased promotional discounts [5]. Profitability Analysis - Despite 361 Degrees experiencing a slight increase in gross margin by 0.2 percentage points to 41.5%, its net profit margin declined due to a significant rise in sales expenses, which increased by 13.2% to 1.037 billion yuan [6][7]. - Anta's net profit for the first half of 2025 was 7.031 billion yuan, a decrease of 8.9% year-on-year, while Li Ning's net profit fell by 10.99% to 1.737 billion yuan [7]. Industry Trends - The industry is witnessing a trend towards professionalization and specialization, with brands focusing on core categories and launching targeted products [9]. - The "big store" strategy is being adopted by all four brands, with flagship stores exceeding 1,000 square meters, offering a mix of sales, experience, and service [10]. - Overall, while the four major sports brands in Hong Kong reported revenue growth in the first half of 2025, they face challenges of differentiated growth rates and profit pressures, actively responding to industry competition through online initiatives, product segmentation, and channel upgrades [10].