361 DEGREES INTERNATIONAL : ° Degrees' 1H2018 Net Profit Up 5.3% to RMB335 million Effective Business Strategies Help Explore New Channels and Drive Rapid Growth

【For Immediate Release】

361 Degrees International Limited

361 度國際有限公司

（incorporated in the Cayman Islands with limited liability）

361˚ Degrees' 1H2018 Net Profit Up 5.3% to RMB335 million Effective Business Strategies Help Explore New Channels and

Drive Rapid Growth

（23 August 2018 - Hong Kong）- The official partner of the 2018 Jakarta Palembang Asian Games and the leading sportswear brand enterprise in China, 361 Degrees International Limited ("361˚" or the "Company", together with its subsidiaries, the "Group"; HKSE stock code: 1361), is pleased to announce its unaudited results for the six months ended 30 June 2018.

Financial highlights

•  Revenue grew 7.8% to RMB3,016.9 million

•  Gross profit increased 6.0% to RMB1,255.7 million

•  Net profit rose 5.3% to RMB335 million

•  Net cash raised 1.6% to RMB3,279.9million

•  Interim dividend increased by 4.9% to RMB6.4 cents

Operational highlights

•  Supported the 2018 Jakarta Palembang Asian Games to take part in major international sports events

•  Took the second step of eSports strategy to build up a powerful trinity that connects the Asian Games, eSports, and 361°

•  361˚ Kids increased steadily and collaborated with Universal Studios to debut crossover IP products

•  Won awards again for the international line functional running shoes

•  E-commerce grew rapidly, representing a new momentum for future growth

Effective Business Strategies Help Explore New Channels and Drive Rapid Growth

23 August 2018 / Page 2

Financial Highlights

Margin of profit attributable to equity holders

For the six months ended 30 June
	Change
2018		2017
3,016.9	2,798.1	+7.8%
1,255.7	1,184.1	+6.0%
630.6	629.1	+0.2%
335.0	318.3	+5.3%
16.2	15.4	+5.2%
41.6	42.3	-0.7 p.p.
20.9	22.5	-1.6 p.p.
	11.4	-0.3 p.p.
	38.7	-3.5 p.p.
	2.9	+0.7 p.p.
	7.7	+1.0 p.p.
	Change
	(RMB mil)
	3,227.7	+1.6%
	6.1	+4.9%

Profitability Data (RMB million)

Revenue Gross profit Operating profit

Profit attributable to equity holders Basic EPS (RMB cents)

Profitability ratios (%)

Gross margin Operating margin

11.1

Effective income tax rate

35.2

Operating ratios as percentage of revenue (%)

Research and Development Advertising and Promotion

3.6 8.7

Cash position (RMB million)

Net cash (including deposits and cash equivalents)

3,279.9

Dividends

Interim dividends per share (RMB cents)

6.4

Financial Analysis

In the first half of 2018, the Group's total revenue rose by 7.8% to RMB3,016.9 million (1H2017: RMB2,798.1 million), mainly driven by the growth of the 361° Kids and E-commerce sales, which also reflected that the Chinese sportswear industry has been growing steadily. During the review period, the sales contribution from footwear products accounted for 45.2% of the Group's total revenue while apparel sales accounted for 40.1% of the Group's total revenue. In addition, 361° Kids continued its strong momentum, with revenue up 18.8% to RMB364.5 million (1H2017: RMB306.9 million), representing 12.1% of the Group's total revenue. This also demonstrated the established customer base of the kids business, a segment with huge potential for further growth. During the review period, the revenue for the sales of web-exclusive products from the E-commerce business increased significantly by 185.5% to RMB328.9 million (2017: RMB115.2 million) and accounted for approximately 10.9% of the Group's total revenue.

The gross profit in the first half of 2018 was RMB1,255.7 million (1H2017: RMB1,184.1 million), gross margin slightly decreased by 0.7 percentage points to 41.6%. Profit attributable to equity holders grew 5.3% to RMB335 million (1H2017: RMB318.3 million), equivalent to earnings per share of RMB16.2 cents. During the review period, net cash position of the Group (including deposits and other cash equivalents) was RMB 3,279.9 million (1H2017: RMB3,227.7 million). Trade and bills receivable turnover days significantly decreased by 6 days to 149 days. Overall working capital turnover days increased by 5 days to 65 days.

Facing the continuous growth of sportswear industry, the Group's strong financial position puts it in good stead for future business opportunities in the industry. Noting the satisfactory results of the Group, the Board of Directors have declared an interim dividend of RMB6.4 cents per share (1H2017: RMB6.1 cents per share). The Group will strive to steadily improve the dividend pay-out ratio, in order to reward its shareholders for their long term support.

Operational Highlights

With the internationalization, professionalization, and rejuvenation initiatives as brand developing strategy, the Group leveraged on its multiple sales channels and unique business strategy with the aim of nurturing new growth drivers. With this unanimous goal, every business unit worked cohesively in line with the Group's overall development direction and the Group is honored to present the following results for the first half of 2018:

First-ever Chinese sportswear brand to implement eSports strategy, marking the second step towards success

After the announcement of 361°'s eSports Strategy and cooperation with QG Happy in March 2018, the official crossover T-shirt launched in April has proved hugely popular among consumers with the first batch of the limited edition of the T-shirts sold out online in just three hours after its debut.

In addition, 361° took the initiatives to promote eSports along with the Asian Games. The second step of the eSports strategy was announced in June 2018 to form a trinity that connects the Asian Games, eSports, and 361°. By promoting eSports which is a popular emerging sports among youngsters, 361° hopes to draw the attention of more young people to the Asian Games and raise the brand awareness of 361° among the fans of both the Asian Games and eSports. In June 2018, 361° participated in the "Belt and Road eSports Festival" which invited the eSports player representatives of the 2018 Jakarta Palembang Asian Games from China and Hong Kong to warm up ahead of the Asian Games and 361° received warm welcome for its support for the event. The next step of eSports strategy is to explore opportunities to cooperate and pool the resources in order to drive the sales growth of eSports sportswear and other related products.

Sponsored major international sports events and built up the international channel to expand market on the back of the Belt and Road Initiative

361° continued to sponsor major international sports events including the 2010 Guangzhou Asian Games, the 2011 Shenzhen Summer Universiade, the 2014 Nanjing Summer Youth Olympic Games, and the 2014 Incheon Asian Games. 361° became the first Chinese sports brand to collaborate with Olympic Games and officially partner with Rio Olympics and Paralympics in 2016. Supporting the 18th Jakarta Palembang Asian Games, 361° continued to become the official partner of the Asian Games for the third consecutive time.

The Group is dedicated to expanding its business presence through supporting large-scale international sports events such as the 2010 Guangzhou Asian Games where 361° expanded into Guangdong's market and the 2016 Rio Olympic where 361° entered the Brazilian market successfully. Riding on the 2018 Asian Games, 361° has established partnership with Matahari, the largest local retailer, to develop Indonesia's market. Matahari has over 60 years experiences in the department store industry and 155 stores in 74 cities across Indonesia. 361° created a powerful alliance with Matahari and started selling branded products in Indonesia. Gaining its foothold in Indonesia, which is the host of the 2018 Asian Games along the route of "Belt and Road Initiative", the Group hopes to expand sales network and channels in the

－ Cont'd －

countries and regions of "Belt and Road Initiative" in order to further explore overseas business as well as increase the brand awareness and open up new sales channels. Supporting large-scale international events is a crucial part of the Group's internationalization strategy that enables the brand to receive publicity and grow business as well.

361˚ Kids collaborated with Universal Studios to debut crossover IP products

361° Kids has entered agreement with Universal Studios on cooperation to launch "361˚ X DreamWorks Animation & Jurassic World" crossover kids' wear and other related products. 361° is the first Chinese brand to launch such products through cross-industry collaboration. The design of the crossover product is inspired by the film series including "How to Train Your Dragon", "Kung Fu Panda", "Madagascar", "Shrek" and "Jurassic World", that are popular among children.

Those elements will be incorporated into the design of apparels, footwear and school bags. Related products will be available in both 361° Kids online and offline stores soon with high expectation in sales. During the review period, the sales contribution from 361° Kids accounted 12.1% of the Group's revenue, representing a year-on-year increase of 18.8%.

Won awards again for the functional international line running shoes with internationally recognized own proprietary technologies

Since its entry into overseas markets in 2014, 361° has produced numerous well-recognized and award-winning running shoes with the support of increasing investment in product research and development. Since 2015, some products from its international line, such as 361 Sensation, KgM2, SPINJECT and MERAKI were numerously recommended by "Runner's World" and other renowned overseas sports magazines. In addition, international professional triathletes such as Jarrod Shoemaker, Alicia Kaye and Katie Zaferes, as well as the track and field athletes such as Giovanni dos Santos and Sarah Crouch, made their preference to use products from 361°degree international line, achieving good results in international professional competitions.

In 2018, SPIRE 3, neutral shock-absorbing running shoes that give stability with good performance cushion, won the ISPO Global Design Award in Munich, Germany in February and won the Newcomer Shoe of the Year Award by The Nordic Edition in May. In addition, STRATA 2 was selected as the 2018 spring "Editor's Choice Award" by "Canadian Running", a Canadian magazine, in February this year. In June, it was recommended as the best stable running shoes of 2018 by "RUNNER'S WORLD", an American running magazine. 361˚ is committed to self-developed innovations and its top-notch and world-class products served as a proof of its internationalization strategy. Its first-rate high quality products received worldwide recognition and overwhelming responses from the global consumers. During the review period, the sales contribution from 361° International accounted for 1.5% of the Group's total revenue.

E-commerce grew rapidly, representing a new momentum for future growth

The Group has adopted the multi-brand strategy, not only the core brand, 361° Kids, and 361° international line, which mainly selling running shoes, but also E-commerce have delivered rapid growth. During the review period, the turnover from online exclusive products increased by 185.5% to RMB328.9 million (1H2017: RMB115.2 million), representing 10.9% of the Group's total revenue. The Group will continue developing its contemporary E-commerce platforms and E-commerce platform is expected to be benefited from the rapid E-commerce industry development.

Prospects and strategies

With the eSports strategic initiative for internationalization, professionalization, and rejuvenation, 361° has continued to extend multiple sales channels and IP collaborations. In the next threeyears, the Group will continue to thoroughly implement the eSports strategy to drive the online and offline sales growth though collaborations and high quality resources sharing. Moreover, 361° will strengthen the brand by extending the product range of 361° Kids and advancing the running shoes technologies for its international line. Currently, the core brand contributed the largest percentage of the revenue. The Group will continue to expand its sales channels with expanding online e-commerce platforms and improving shopping experience in offline retail stores. Meanwhile, the Group will implement its internationalization strategy to its sales in overseas markets along the "Belt and Road Initiative".

Mr. Ding Wuhao, President of 361˚ Group concludes, "361° understands the market trend of sportswear industry. The Group will consolidate its market shares and further develop the unique selling point of its brand with an aim of being a leading brand in the niche markets. Looking back at the first half of 2018, the eSports strategy and the collaboration for crossover products between 361° Kids and international IP served as a manifestation of the Group's internationalization, professionalization, and professionalization strategies. Looking ahead to the second half of 2018, we will continue to support the Jakarta Palembang Asian Games, increase brand awareness in overseas markets and extend sales channels along the 'Belt and Road Initiative' to propel the business growth with the new growth drivers and new sales channels."

- End -

About 361 Degrees International Limited

Established in 2003, 361˚ is a leading sportswear brand enterprise in China with a growing international presence. The Group designs, develops, manufactures and sells functional, innovative and stylish sportswear products to cater to the active, athletic and casual sportswear needs of adults, young adults and children. The Group offers high-performance and value-for-money footwear, apparel, and accessories products targeted at mass market.

The Group operates a distributorship business model through 31 exclusive distributors and approximately 1,600 authorized retailers to manage an extensive distribution network of approximately 7,000 retail stores across China. It has established a leading position in third-tier and lower-tier cities in China.

For more details, please refer to its website:www.361sport.com

For further information, please contact:

361 Degrees International Limited Ms. Nina Zhan

Vice-President, Investor Relations 361 Degrees International Limited Email:[e-mail]

iPR Ogilvy & Mather

Tina Law / Lorraine Luk / Karl Cheung / Gigi Cheung

Tel: [phone] Fax: [phone]

Email:[e-mail]