361 DEGREES INTERNATIONAL : Operations Update for the First Quarter of 2017 Results of the 361 Kids 2017 Fall Trade Fair

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361 Degrees International Limited 3 6 1 度 國 際 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1361)

OPERATIONS UPDATE FOR THE FIRST QUARTER OF 2017 RESULTS OF THE 361° KIDS 2017 FALL TRADE FAIR

This announcement is published on a voluntary basis by the board of directors (the ''Board'') of 361 Degrees International Limited (''361°'' or the ''Company'', together with its subsidiaries, the ''Group'').

The Board is pleased to provide the following operational update in respect of the Group's business for the first quarter of 2017.

361° Core Brand

The Group continues to operate on its franchised business model with 31 exclusive distributors. The Group considers an optimal scale to maintain the store account at approximately 6,000 to 6,500 level for the core brand, and continues to focus on increasing store efficiency.

Based on data from a sample of 3,643 outlets which have been in operation for more than 24 months, the Group delivered the following statistics relating to their retail performance for the first quarter of 2017.

Same store sales growth: 7.0%

Average retail discount: 26.5%

Channel inventory: 4.2 times

Sample size: 3,643

361° Kids Brand (independently-run business unit)

The Group considers an optimal scale to maintain number of points of sale at approximately 1,600 to 2,000 level for the kids brand.

Based on data from a sample of 1,069 outlets which have been in operation for more than 24 months, the Group delivered the following statistics relating to their retail performance for the first quarter of 2017.

Same store sales growth: 7.4%

Channel inventory: 4.2 times

Sample size: 1,069

To conform to disclosure standard of the industry, the Group decided to announce change in retail sales (in terms of the retail value) only, starting from the second quarter of 2017.

Results of the 361° Kids 2017 Fall Trade Fair

We are pleased to announce that the trade fair order value (at wholesale value) of the 361˚ kids for the third quarter of 2017 achieved satisfactory result by recording a high teens increase, on a year-on-year basis. Such order value growth represented the eleventh consecutive quarterly improvement since the first quarter of 2015.

361˚ Kids, an independently-run business unit within the Group, principally offers sporting footwear, apparel and accessories products catered for children aged three to 12. At the 2017 Fall Trade Fair, orders contribution from footwear, apparel, and accessories account for 51.9%, 46.1% and 2.0%, respectively. Footwear achieved a high teens growth in volume and no improvement in the average selling price (the ''ASP''). Apparel showed a low thirties growth in the volume but no improvement in the ASP.

This announcement is made based on a preliminary review of the draft unaudited operational data of the Group and the information currently available to the Board, and is not reviewed or audited by the Group's auditors.

The data do not constitute, represent or indicate the full picture of the Group's total revenue or financial performance and the information contained in this announcement may be subject to change and adjustment.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the Company's securities.

By order of the Board

361 Degrees International Limited Ding Huihuang

Chairman

Hong Kong, 24 May, 2017

As at the date of this announcement, the Directors are as follows:

Executive Directors: Mr. Ding Wuhao, Mr. Ding Huihuang (Chairman), Mr. Ding Huirong and Mr. Wang Jiabi

Independent Non-Executive Directors: Mr. Tsui Yung Kwok, Mr. Liao Jianwen and Mr. Li

Yuen Fai Roger.