361 Degrees International : VOLUNTARY ANNOUNCEMENT OPERATIONAL SITUATION

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361 Degrees International Limited

361 度國 際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1361)

VOLUNTARY ANNOUNCEMENT

OPERATIONAL SITUATION

The announcement is published on a voluntary basis by the board of directors (the "Board") of 361 Degrees International Limited ("361º " or the "Company", which together with its subsidiaries, is referred to as the "Group").

In view of the outbreak of the novel coronavirus disease 2019 (COVID-19) (the "epidemic") in China since January 2020, the Group has adopted various prevention and control measures in accordance with the relevant national and local regulations on epidemic prevention and control to comply with the national epidemic prevention policies. On 23 January 2020, the Group took the lead in establishing an emergency management commanding team for epidemic prevention. The team is led by executive directors and senior management to arrange epidemic prevention and control-related matters and coordinate the implementation of effective measures by various departments with an aim to minimize the impact of the epidemic on the Group.

To ensure the health and safety of employees and customers, the Group has followed the guidelines and requirements of relevant local government departments to arrange its operation in an orderly manner. The Group made flexible working arrangements for its employees by allowing its employees to work remotely while maintaining efficiency. The Group's in-house factories and offices have all resumed operations since 10 February 2020. In terms of retail operations, the Group mobilised all resources to help its franchise partners enhance operational efficiency and reduce losses, ensuring the stability of the channel in terms of quality and quantity. To mitigate the epidemic's negative impact on the retail sales, the Group proactively shifted sales to e-commerce platform and took a prompt action to launch "all-staff marketing" plan. By increasing WeChat mini-programme channel to enhance online marketing, the Group strived to minimise the negative impact of the epidemic on its retail operation. The Group initially expects that all retail stores in China (except for those located in Hubei province) will gradually resume normal operations by the end of February 2020. Many provinces and cities in China have been resuming work and normal operation. The disrupted supply chain is expected to quickly return to normal with the ease of the epidemic.

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As a socially responsible corporation, the Group is committed to supporting the battle against the epidemic. 361º is aware that the anti-coronavirus work consumed enormous medical supplies, leading to the shortage of medical protective supplies. Thus, the Group immediately procured 2,000 sets of medical protective goggles and suits in the USA with the assistance of Chinese Civic Center - Houston. All the medical supplies were donated directly to numerous medical institutions including The Central Hospital of Wuhan. In addition, in February 2020, the Group donated RMB10 million worth of warm clothing and sports outfits through China Youth Development Foundation to provide support to the front-line medical staffs in Hubei province.

The Group is closely monitoring the market situation and continuously evaluating the impact of the epidemic on the Group's operation and financial performance. In the light of the current situation, the Group's financial performance, as well as the sports industry will inevitably be affected by the epidemic in the first half of 2020. Nevertheless, the Group believes that with concreted efforts all over the world, the epidemic will be under control soonest and the current adversity will be overcome with the joint efforts of all employees.

The Group also fully believes that the health awareness of Chinese people will be further raised after the novel coronavirus outbreak, ushering in new development opportunity for the sports industry in China. The Board and the management still have full confidence in the long-term development of the Group.

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

By order of the Board

361 Degrees International Limited

Ding Huihuang

Chairman

Hong Kong, 20 February 2020

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

Executive Directors:	Mr. Ding Wuhao, Mr. Ding Huihuang (Chairman), Mr. Ding
	Huirong and Mr. Wang Jiabi
Independent Non-Executive	Mr. Li Yuen Fai Roger, Mr. Hon Ping Cho Terence and
Directors:	Mr. Chen Chuang

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