361 Degrees International Limited announced that based on a preliminary review of the Group's unaudited management accounts for the year ended December 31, 2012 and the information currently available to the Board, the Board currently estimates that for the year ended December 31, 2012, the Group will likely record a decrease in profit after taxation of approximately 40%, as compared to that for the year ended December 31, 2011. The decrease in profit is principally attributable to the continued challenging landscape facing the sportswear industry in China as high sector inventory level and retail discounting pressure continued to weigh on the sector's performance amidst intensified competition throughout the year 2012 which resulted to (1) a decrease in the general sales volume, (2) a pressure on the gross profit margin and (3) a higher selling expenses as compared
to the year ended December 31, 2011.