Niu Technologies (NASDAQ:NIU) Q2 2019 Earnings Conference Call August 23, 2019 8:00 AM ET Company Participants Jason Yang - IR Yan Li - CEO Hardy Zhang - CFO Conference Call Participants Bin Wang - Credit Suisse Operator Good day, ladies and gentlemen. Thank you for standing by and welcome to the Niu Technologies Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that tim ...

Financial Data and Key Metrics Changes - Revenue more than doubled, increasing by 106% to RMB 355 million, driven by increased scooter unit volume and higher revenue from scooters [18][19] - Gross margin improved to 21.3%, an increase of 8.6 percentage points year-over-year, while net margin was positive at 3.4% [18][21] - Operating cash flow was positive at RMB 16 million, with a cash balance of RMB 694 million at the end of the quarter [23] Business Line Data and Key Metrics Changes - Scooter unit volumes grew by 76%, with significant contributions from the N and M models in France due to the new national standard deadline [18][19] - Average scooter sales price increased by 14%, driven by higher retail prices for the U series and a favorable change in product mix [19][20] - Sales of accessories, spare parts, and services increased by 47%, averaging RMB 670 per scooter sold [20] Market Data and Key Metrics Changes - The company expanded its distribution network, opening 121 stores in China, bringing the total to 881 outlets [14] - Internationally, the company is now selling in 28 countries through 23 distributors, with plans to expand into Korea and the U.S. [15] - The new regulation on electric bicycles in China, effective April 15, is expected to accelerate the adoption of lithium-ion battery scooters [16][17] Company Strategy and Development Direction - The company is focusing on expanding its product offerings into adjacent categories, such as high-performance bicycles, which have shown a 10% annual growth in China [11][12] - The launch of the U+ and US scooter models, which comply with new regulations, is part of the strategy to enhance brand value and capture a broader consumer segment [9][10] - The company aims to strengthen its distribution network as a top priority to support growth [14] Management's Comments on Operating Environment and Future Outlook - Management noted a temporary drop in retail sales following the new regulation but indicated signs of recovery [28] - The company expects strong demand growth in the second half of the year despite the regulatory impact on the first half [17] - Management remains optimistic about the underlying demand trends in the industry, projecting revenue growth of 51% to 72% for the second quarter [24][25] Other Important Information - The company has implemented a new marketing campaign to reinforce its image as a socially responsible brand, which has garnered significant social media engagement [14] - The company is investing in R&D to support new product development and design, reflecting its commitment to innovation [22] Q&A Session Summary Question: Demand stabilization post-regulation - Management acknowledged a sharp drop in retail sales initially but noted signs of recovery, although the industry has not fully returned to normal levels yet [28] Question: Gross margin benefits from demand pull-forward - Management clarified that the higher gross margin was primarily due to increased ancillary revenues and cost reductions, not from the pull-forward in demand [30] Question: Enforcement of new national standards - Management confirmed that the new national standard is being strictly enforced, particularly in top-tier cities, which is expected to impact demand positively in the long run [32][33] Question: Impact of U.S.-China trade disputes - Management indicated that the current tariff situation does not significantly affect operations, as the company is already operating under a 25% tariff [38] Question: Breakdown of gross margin improvements - Management provided a detailed breakdown of gross margin improvements, attributing them to product mix changes, seasonal impacts, and sustainable cost reductions [39][41]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR o SHELL COMPANY REPORT PURSUANT TO S ...

Start Time: 08:00 January 1, 0000 8:26 AM ET Niu Technologies (NASDAQ:NIU) Q4 2018 Earnings Conference Call March 18, 2019, 08:00 AM ET Company Participants Yan Li - CEO Hardy Zhang - CFO Jason Yang - IR Manager Conference Call Participants Brad Erickson - Needham & Company Operator Good day, ladies and gentlemen. Thank you for standing by, and welcome to Niu Technologies Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question ...