361 Degrees sprints ahead of retail rivals with stablecoin exploration

The sportswear seller announced it is researching the potential for accepting stablecoins as payment as Hong Kong experiments with the cryptocurrency type

Key Takeaways:

• 361 Degrees announced it is exploring the potential of accepting stablecoin payments outside of Mainland China, where cryptocurrencies are banned
• The sportswear maker highlighted that such payments can streamline operations and cut its transaction costs

By Lau Chi Hang

As cryptocurrencies gain traction across the world, stablecoins, a type of currency that offers greater stability by being pegged to underlying liquid assets, is drawing increased attention from businesses. U.S. President Donald Trump gave the sector a boost with his Genius Act in July, which set clear rules for issuing payment stablecoins. Hong Kong has also jumped on the bandwagon, rolling out a regulatory framework for stablecoins in August.

Such positive signals are drawing a growing number of companies into the mix, including sportswear maker 361 Degrees International Ltd. (1361.HK), which announced this month it’s looking into stablecoin payment and settlement systems. The move makes the company, one of China’s smaller homegrown sportswear makers, one of the first major retailers to divulge some cryptocurrency aspirations.

The company said it has opened accounts with an unidentified third-party provider specializing in comprehensive fiat and stablecoin digital payment systems. It added the partner assists companies in achieving efficient, borderless value transfers globally.

361 Degrees further noted it was making the move as corporate cryptocurrency acceptance rises globally. It sees stablecoins as key to boosting efficiency, slashing costs for cross-border e-commerce and offshore brick-and-mortar stores by providing frictionless settlements. It added that such an approach can better meet customer demands while lowering foreign exchange risk exposure.

Next frontier: Overseas operations

It’s no mistake that 361 Degrees is looking at applications for stablecoins internationally, since all cryptocurrencies are currently banned in the heavily protected Mainland China market. Hong Kong is an exception to that rule, and is often used by the Mainland for experimenting with emerging financial trends like cryptocurrency.

That works well for 361 Degrees, which, like many of its peers, was already targeting international expansion as it searches for new growth opportunities. The company is leveraging e-commerce platforms like Shopee and Lazada as primary sales conduits into Southeast Asia, a market where many Chinese retail brands start their overseas voyages due to its many similarities with China. The company is using such channels to carve out a niche through localized marketing and extend its brand overseas.

This year, 361 Degrees also opened its first directly operated brick-and-mortar store at the Aeon Bukit Tinggi shopping mall in the Malaysian capital of Kuala Lumpur, marking another important expansion of the brand in Southeast Asia.

“Looking into the future, the group will continue to prioritize the steady development of overseas markets by actively strengthening its foothold in the Americas, Europe and regions along the Belt and Road Initiative and markets with specific growth potential,” it said in its latest annual report. It added its ultimate aim is to build an operational base across the Americas, Europe, and Belt and Road countries, part of its three-pronged strategy prioritizing “professional, youthful and internationalized.”

It said it believes that integrating stablecoin payments will drive its global payment efficiency, which is key to its internationalization. Its strong traction with younger users dovetails with the brand’s youth pivot, it added, pointing out the emerging high-tech payment option inherently bolsters its “professional” credentials with that group.

China’s prohibition on cryptocurrencies means the stablecoin business will be relatively limited for 361 Degrees, at least for now. The company’s overseas segment is growing relatively fast, rising nearly 20% year-on-year in the first half of 2025 to generate 87.6 million yuan ($12.3 million) in revenue. Yet the amount remains marginal in its overall revenue pie, at just 1.5% of the total.

Diverse marketing strategies

The stablecoin exploration follows a recent trend that has seen 361 Degrees pursue a range of innovative approaches across its corporate development, marketing and distribution channels. One notable strategy involves its partnering with online-to-offline (O2) services giant Meituan enabling 361 Degrees to establish an “online traffic funnel, offline verification” sales model.

Last month 361 Degrees also announced that its subsidiary in the Southern Chinese city of Xiamen signed a strategic cooperation agreement with Standard Robots to jointly establish a company that will develop wearables and footwear designed for robots. “This cooperation marks a brand-new starting point for the brand to deeply integrate intelligent genes, opening a new journey of intelligent advancement for the brand,” the company said in announcing the partnership.

Attractive risk-reward profile

Beyond its various innovative initiatives, 361 Degrees has also been quite adept at its core traditional business of selling athletic shoes and clothing. Its profits have been on a steady growth track, rising from 747 million yuan in 2022 to 1.15 billion yuan last year. Its revenue grew 11% year-over-year to 5.7 billion yuan in the first half of this year, while its profit rose 7.2% to 858 million yuan. Its first-half gross margin edged up 0.2 percentage points to 41.5%, with cash on hand growing 7.5% annually to 4.3 billion yuan, while its debt ratio came in at just 2.2%. Such a solid foundation leaves plenty of room for expanding its operations.

361 Degrees currently trades at a trailing price-to-earnings (P/E) ratio of 9.2, far below larger peers Anta Sports (2020.HK) at 16 times, Li Ning (2331.HK) at 15 times, and also behind the more similar-sized Xtep International (1368.HK) at 11 times. Despite lacking the scale of Anta and Li Ning, 361 Degrees still looks relatively undervalued among China’s domestic sportswear brands. Given its solid track record of growth in recent years paired with its expansion initiatives, the company could offer an attractive risk-reward profile.

Multiple brokerages also look favorably at the company. Guotai Haitong highlighted its cross-border initiatives and e-commerce operations as key growth catalysts alongside ascending brand recognition, projecting they could push the stock to fresh highs, giving the shares a “buy” rating and a price target of HK$8.15. Ping An Securities spotlighted the company’s premiumization efforts and superior channel advantages, while recognizing the potential in its children’s apparel business. It gave the stock a HK$7.20 target, or about 27% higher than its Friday close of HK$5.69.

To subscribe to Bamboo Works weekly free newsletter, click here