361 Degrees, a prominent Chinese sportswear manufacturer, is actively investigating the integration of stablecoin payment and settlement systems for its international business activities. This forward-thinking initiative is designed to enhance operational efficiency, mitigate foreign exchange risks, and significantly reduce transaction expenses across its global footprint. The company's decision underscores a broader trend of businesses exploring digital currencies for cross-border transactions, especially with the evolving regulatory landscape in key financial hubs like Hong Kong.
Amidst a growing global interest in digital currencies, stablecoins, which are cryptocurrencies pegged to more stable assets, are gaining considerable attention from various enterprises. The United States, with its recent 'Genius Act,' and Hong Kong, through its new regulatory framework, have both created a more favorable environment for the adoption and regulation of stablecoins. This positive global sentiment has encouraged companies, including 361 Degrees, to delve into the potential benefits of these digital assets.
As a leading sportswear brand, 361 Degrees has proactively established accounts with a specialized third-party provider offering comprehensive fiat and stablecoin digital payment solutions. This partnership is expected to facilitate seamless and borderless value transfers, aligning with the company's ambition to optimize its global payment infrastructure. The firm believes that embracing stablecoins will be pivotal in meeting diverse customer demands and strengthening its competitive edge in the international market.
The company's focus on international stablecoin applications is strategic, given Mainland China's stringent ban on cryptocurrencies. Hong Kong, however, serves as a crucial exception, frequently acting as a testing ground for innovative financial technologies emanating from the mainland. This allows 361 Degrees to pilot its stablecoin initiatives in a regulated environment while circumventing domestic restrictions.
Beyond its digital currency explorations, 361 Degrees is committed to an aggressive international expansion strategy. The company is leveraging popular e-commerce platforms such as Shopee and Lazada to penetrate the Southeast Asian market, a region that shares many similarities with China and offers fertile ground for growth. Furthermore, the opening of its first directly operated brick-and-mortar store in Kuala Lumpur, Malaysia, highlights its dedication to establishing a robust physical presence in key overseas markets.
In its recent annual report, 361 Degrees outlined its future plans, emphasizing sustained development in international markets, particularly in the Americas, Europe, and countries participating in the Belt and Road Initiative. This three-pronged strategy, centered on professionalism, youth appeal, and internationalization, aims to create a strong global operational base. The company anticipates that integrating stablecoin payments will be a cornerstone of this strategy, boosting its appeal to younger demographics and reinforcing its image as a technologically advanced brand.
While the current regulatory environment limits 361 Degrees' stablecoin activities within China, its overseas segment is experiencing rapid growth. In the first half of 2025, international revenue surged by nearly 20% year-on-year, reaching 87.6 million yuan, although this still represents a small fraction of its total revenue. The company is also pursuing diverse marketing strategies, including a partnership with Meituan for an online-to-offline sales model and a venture with Standard Robots to develop innovative wearable technology and footwear.
Financially, 361 Degrees demonstrates a strong and attractive risk-reward profile. Its profits have shown consistent growth, from 747 million yuan in 2022 to 1.15 billion yuan last year. In the first half of the current year, revenue increased by 11% to 5.7 billion yuan, with profits rising by 7.2% to 858 million yuan. The company boasts a healthy gross margin of 41.5% and substantial cash reserves, with a remarkably low debt ratio of 2.2%. These robust financials provide a solid foundation for its innovative endeavors and global expansion.
Despite trading at a lower price-to-earnings ratio compared to its larger competitors like Anta Sports and Li Ning, and even similar-sized Xtep International, 361 Degrees is seen as potentially undervalued. Its consistent growth trajectory, coupled with strategic expansion and innovative initiatives, makes it an appealing prospect for investors. Brokerages such as Guotai Haitong and Ping An Securities have issued favorable ratings, citing its cross-border efforts, e-commerce growth, and premiumization strategies as key drivers for future success.