geogif/iStock Editorial via Getty Images Investment Thesis Niu Technologies (NASDAQ:NIU) is reaching all-time lows despite several growth engines that will likely increase revenues going forward. Their focus on electric scooters is unique and they have a large addressable market to tap into. While most of the market is infatuated with electric cars manufacturers like Tesla (TSLA) and BYD (OTCPK:BYDDY), I think NIU is overlooked. Nevertheless, I believe the market has forgotten about Niu Technologies as ...

Financial Data and Key Metrics Changes - In Q4 2023, total sales volume was 137,000 units, a slight year-over-year drop of 0.6% [5][35] - Total revenue for Q4 was RMB 478.7 million, a decrease of 21% compared to the previous year [5][35] - For the full year 2023, total sales volume reached 709,000 units, with total revenue of RMB 2.7 billion, reflecting a 15% decline year-over-year [5][38] Business Line Data and Key Metrics Changes - Sales volume in the China market decreased by 6.4% to 110,000 units, while overseas sales increased by 33% to 27,000 units [5][35] - In the China market, the average selling price (ASP) for scooters decreased by 15% year-over-year to RMB 32.16, while ASP for the premium series remained around RMB 5,000 [36] - Overseas scooter revenue, including kick-scooters, e-mopeds, and e-motorcycles, was nearly $60 million, with ASP decreasing by 49% year-over-year [36] Market Data and Key Metrics Changes - The international electric two-wheeler market faced challenges, including a decline in key European markets and operational disruptions due to distribution partner issues [7][11] - The micro-mobility segment saw a slight increase in sales volume of 0.5% year-over-year, with total activations doubling compared to 2022 [14][30] Company Strategy and Development Direction - The company remains focused on the premium market segment in China, enhancing product lines with new series like the Falcon and MQiL, which contributed significantly to sales [8][17] - Plans for 2024 include channel expansion into Tier 2 and Tier 3 cities and a focus on same-store sales growth through online and offline traffic optimization [16][24] - The introduction of new products, including the NX and NXT series, aims to target premium motorcycle and performance-driven electric bicycle segments [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2023, including the impact of lithium battery price hikes and cautious consumer spending in top-tier cities [6][11] - Despite these challenges, management expressed optimism for growth in 2024, anticipating sales volume to reach between 1 million to 1.2 million units [34] - The company plans to maintain a steady average selling price while expecting a slight increase in gross margin due to operational efficiencies [60][61] Other Important Information - The company ended 2023 with RMB 1,078 million in cash and short-term investments, with a positive outlook on future receivables collection [43] - The gross margin for Q4 was 19%, down 3.4 percentage points year-over-year, while the full-year gross margin was 21.5%, up from 21.1% [39][40] Q&A Session Summary Question: Store expansion plan and strategy - Management indicated a mix of reclaiming lost stores and opening new ones, focusing initially on the top 45 cities [47] Question: Evaluation of aggressive sales targets - Management emphasized the significant addressable market and the focus on product quality and channel expansion rather than competitor concerns [48] Question: Impact of Nanjing fire on battery safety - Management highlighted the importance of high-quality products and original parts, noting that many issues arise from third-party batteries [50] Question: User behavior analysis - Management noted that users typically keep scooters for about three to four years and emphasized plans to expand into lower-tier cities [51] Question: Sales volume target for 2024 - Management expects kick scooter sales to reach between 200,000 to 250,000 units, with the majority of electric two-wheeler sales in China [55] Question: Profit margin and product strategy - Management anticipates a stable average selling price and a slight increase in gross margin due to operational efficiencies [60][61] Question: Selling expense ratio guidance for 2024 - Management aims to maintain the selling expense ratio within 20% to 24% of revenue, returning to levels seen in early 2022 [63]

NIU at a glance ...

-- Fourth Quarter Revenues of RMB 478.7 million, down 21.8% year over year -- Fourth Quarter Net Loss of RMB 130.2 million, compared to net loss of RMB 37.1 million in the same period of last year -- Full Year Revenues of RMB 2,651.8 million, down 16.3% year over year -- Full Year Net loss of RMB 271.8 million, compared to net loss of RMB 49.5 million in 2022 BEIJING, March 18, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU", or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobil ...

BEIJING, Feb. 19, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU" or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobility solutions, today announced that it will report its financial results for the fourth quarter and full year 2023 before the U.S. market opens on Monday, March 18, 2024. The corporate presentation and financial spreadsheets will be posted on NIU's investor relations website at:https://ir.niu.com/financial-information/quarterly-results The Company will host an e ...

BEIJING, Feb. 19, 2024 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU” or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced that it will report its financial results for the fourth quarter and full year 2023 before the U.S. market opens on Monday, March 18, 2024. The corporate presentation and financial spreadsheets will be posted on NIU’s investor relations website at:https://ir.niu.com/financial-information/quarterly-results The Company will host an ...

Niu Technologies (NIU) announced its fourth-quarter and full-year 2023 sales volume results. The China-based electric scooter company sold 137,476 units of e-motorcycles, e-mopeds, e-bicycles, kick-scooters and e-bikes in the quarter, down from 138,279 units sold in the corresponding quarter of 2022.In the fourth quarter of 2023, the electric scooter company sold 110,454 units in the domestic market, down from 118,065 units in the fourth quarter of 2022.The current economic environment in China, along with ...

BEIJING, Jan. 05, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU", or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobility solutions, today provides its sales volume results for the fourth quarter and full year 2023.  4Q 2023 4Q 2022 FY2023 FY2022China Market110,454 118,065 600,994 710,540International Markets27,022 20,214 108,808 121,053Total137,476 138,279 709,802 831,593 In the fourth quarter of 2023, NIU sold 137,476 units, including e-motorcycles, e-mopeds, e-bicycles, kic ...

BEIJING, Dec. 22, 2023 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU", or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobility solutions, today announces that the Company has appointed Ms. Fion Wenjuan Zhou as a new director of the board of directors of the Company (the "Board"), effective from December 25, 2023. Ms. Fion Zhou has served as the chief financial officer of the Company since November 2021, and she was awarded "Female CFO of the Year" by the Barron's China in 2022. Pri ...

Niu Technologies (NASDAQ:NIU) Q3 2023 Earnings Conference Call November 20, 2023 8:00 AM ET Company Participants Yan Li - Chief Executive Officer Fion Zhou - Chief Financial Officer Operator Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recordi ...