VIE Contributions and Financial Impact - The VIE contributed 99.7%, 99.6%, and 98.8% of total revenues for the years ended December 31, 2022, 2023, and 2024, respectively[25]. - The VIE paid service fees of RMB112.2 million, RMB56.8 million, and RMB58.1 million (US$8.0 million) to the WFOE for the years ended December 31, 2022, 2023, and 2024, respectively[31]. - Niu Technologies did not provide any capital contributions or loans to its mainland China subsidiaries for the years ended December 31, 2022, 2023, and 2024[29]. - The ability to pay dividends is dependent on the profits of mainland China subsidiaries and the VIE, which are subject to restrictions on foreign exchange and cash transfers[38]. - A 10% withholding tax applies to dividends paid by foreign-invested enterprises to foreign non-resident investors, unless a tax treaty provides for a reduced rate[32]. - The VIE and its subsidiary qualify for a 15% preferential income tax rate in mainland China, but this rate is temporary and may not be available in the future[35]. - The VIE contributed a majority of the consolidated total revenues for the company in 2022, 2023, and 2024[166]. - The shareholders of the VIE hold 89.74%, 5.26%, and 5.00% of the equity interest, which may lead to potential conflicts of interest[172]. - The PRC tax authorities may challenge the VIE contractual arrangements, potentially leading to increased tax liabilities and penalties[176]. - The legal system in mainland China presents uncertainties that could limit the enforceability of contractual arrangements with the VIE[171]. - The company relies on contractual arrangements with the VIE, which may not be as effective as direct ownership, posing operational risks[166]. Financial Performance and Revenue - For the year ended December 31, 2024, total revenues amounted to RMB 3,288,296 thousand, a significant increase compared to RMB 2,651,758 thousand for the year ended December 31, 2023[43]. - The gross profit for the year ended December 31, 2024 was RMB 498,763 thousand, while for the year ended December 31, 2023, it was RMB 570,747 thousand, indicating a decrease in profitability[43]. - The net loss for the year ended December 31, 2024 was RMB 193,201 thousand, compared to a net loss of RMB 271,836 thousand for the year ended December 31, 2023, showing an improvement in financial performance[43]. - Selling and marketing expenses for the year ended December 31, 2024 were RMB 489,578 thousand, a slight decrease from RMB 495,735 thousand in the previous year[43]. - Research and development expenses for the year ended December 31, 2024 were RMB 130,111 thousand, compared to RMB 150,986 thousand for the year ended December 31, 2023, reflecting a reduction in investment in R&D[43]. - The company reported interest income of RMB 37,090 thousand for the year ended December 31, 2024, compared to RMB 35,492 thousand for the year ended December 31, 2023, indicating stable income from interest[43]. Cash Flow and Assets - As of December 31, 2024, total assets amounted to RMB 2,613,158,000, a decrease from RMB 2,189,331,000 as of December 31, 2023[47][48]. - Total current assets for 2024 were RMB 2,169,806,000, compared to RMB 1,760,614,000 in 2023, reflecting an increase of approximately 23.2%[47][48]. - Total liabilities decreased to RMB 1,681,876,000 in 2024 from RMB 1,095,715,000 in 2023, indicating a significant reduction of approximately 53.4%[47][48]. - Cash and cash equivalents at the end of 2024 were RMB 630,021,000, down from RMB 872,573,000 in 2023, representing a decline of about 27.8%[47][48]. - Net cash provided by operating activities for 2024 was RMB 52,287,000, compared to a net cash used of RMB 21,089,000 in 2023[50]. - The company reported a net cash outflow from investing activities of RMB 292,429,000 for 2024, a significant increase from the previous year's outflow[50]. - Total shareholders' equity remained stable at RMB 931,282,000 in 2024, unchanged from 2023[47][48]. - The company had short-term bank borrowings of RMB 200,000,000 as of December 31, 2024, consistent with the previous year[47][48]. - The company experienced a net decrease in cash, cash equivalents, and restricted cash of RMB 133,823,000 for the year ended December 31, 2024[50]. Regulatory and Compliance Risks - The PCAOB's ability to inspect auditors in mainland China and Hong Kong affects the trading status of Niu Technologies' shares under the Holding Foreign Companies Accountable Act[28]. - The company is not currently required to obtain permissions from the CSRC or undergo cybersecurity reviews for previous securities issuances to foreign investors[42]. - The Cybersecurity Review Measures require network platform operators holding personal information of over one million users to apply for a cybersecurity review before any public offering at a foreign stock exchange[41]. - The company may face uncertainties regarding future regulatory requirements that could impact its ability to operate or offer securities to foreign investors[41]. - The company must comply with extensive legal and regulatory requirements for manufacturing and product distribution, and failure to do so could materially affect its operations and financial results[92]. - Future changes in industry standards and regulations may increase operating costs and impact ordinary operations, potentially adversely affecting financial results[94]. - The company must navigate complex customs and trade regulations, which could pose additional compliance challenges and costs[146]. - The PRC government has implemented regulations requiring daily monitoring of algorithm data use and security assessments for internet companies[147]. - The company must apply for cybersecurity review if it processes personal information of over 1 million users when seeking foreign listing[147]. - The new Personal Information Protection Compliance Audit Management Measures mandate biennial audits for handlers of data from over 10 million individuals[149]. - The company faces potential penalties, including fines and business license revocation, if found in violation of PRC regulations[161]. - The Foreign Investment Law of the PRC, effective January 1, 2020, introduces uncertainties regarding the company's corporate structure and operations[162]. Market and Competitive Environment - The company faced intense competition in the electric two-wheeled vehicles industry, which may impact future sales and market share[62]. - The company relies heavily on city partners and franchised stores for sales and distribution, indicating a strategic focus on offline distribution networks[60]. - Maintaining and enhancing the "NIU" brand is critical for the company's success, as brand strength directly influences customer retention and expansion[65][66]. - The company may face challenges in managing relationships with city partners and franchised stores, which could impact sales performance[72]. - The company’s marketing strategy aims to appeal to a more diversified group of users, but future success is uncertain[82]. - The company’s ability to maintain profitability depends on increasing sales and managing operating expenses effectively[76]. - International expansion represents a significant opportunity for growth, but it also involves risks such as limited brand recognition and compliance with local laws[103]. Operational Challenges and Risks - The company relies on external suppliers for key components, with one supplier accounting for over 10% of total purchases in each of 2022, 2023, and 2024[73]. - The company has invested significantly in product development but may not achieve expected sales levels for new products[69]. - The company relies on third-party logistics for distribution, and disruptions could impair its ability to sell products and harm its reputation[105]. - Production difficulties due to mechanical failures or natural disasters could adversely affect the company's operations and financial condition[107]. - The company faces challenges in attracting and retaining highly skilled personnel, which may lead to significant costs and impact business operations[131]. - The company may need additional capital in the future for investments or acquisitions, and financing may not be available on acceptable terms[124]. - The company’s performance is sensitive to economic conditions, and an economic downturn could adversely affect consumer discretionary spending on its products[127]. - The company’s growth may be impacted by its ability to effectively manage operational challenges and maintain a reliable supply chain[120]. Employee and Labor Considerations - The company anticipates that employee costs, including wages and benefits, will continue to increase due to rising average wage levels in mainland China, which may adversely affect profitability if these costs cannot be passed on to consumers[121]. - Compliance with mainland China's regulations on employee stock incentive plans is crucial to avoid fines and legal sanctions[212]. - Companies must contribute to various employee benefit plans, with penalties for inadequate contributions potentially affecting financial results[213]. - Stricter labor laws in mainland China may limit the company's ability to manage employment practices cost-effectively, impacting profitability[214][215]. - Registration for social insurance and housing funds is mandatory, with potential administrative fines for non-compliance[216]. - Evolving labor-related laws may lead to disputes or investigations, affecting financial condition and operations[217]. Currency and Economic Risks - Exchange rate fluctuations pose risks to revenues and earnings, with significant impacts from Renminbi appreciation or depreciation against the U.S. dollar[218][219]. - Limited hedging options in mainland China increase exposure to currency exchange risks, potentially affecting investments[220]. - Discontinuation of government subsidies or new taxes could adversely impact financial condition and operational results[221]. - Classification as a mainland China resident enterprise could result in a 25% enterprise income tax on global income, affecting returns for shareholders[222][223].

Core Insights - Niu Technologies has made significant advancements in its Environmental, Social, and Governance (ESG) performance for 2024, with its S&P Global ESG Score increasing by 14 points year-over-year to 43, ranking first in China's two-wheeler segment [1][2] - The company outperformed 68% of global automotive companies in the S&P Global Corporate Sustainability Assessment (CSA), highlighting its leadership in sustainable development [1][2] - NIU has enhanced its ESG transparency by disclosing comprehensive data on greenhouse gas emissions and conducting a climate risk assessment, resulting in a significant increase in its CSA Score [3] ESG Performance - NIU's S&P Global ESG Score ranked first in China's two-wheeler segment and was among the top 4 in the broader automotive industry, surpassing the industry average by 11 points [2] - The company's Environmental score exceeded more than half of global automotive companies, while its Social and Governance scores outperformed 65% and 77% of global peers, respectively [2] Transparency and Data-Driven Leadership - In 2024, NIU disclosed comprehensive data on direct and indirect greenhouse gas emissions for the first time, leading to an increase in its S&P Global CSA Score from 0 to 75 in TCFD Disclosure criteria [3] - The company has disclosed energy consumption data for three consecutive years, raising its CSA score in Energy Consumption criteria from 42 to 90 [3] Decarbonization Initiatives - NIU achieved a perfect S&P Global CSA Score for the second consecutive year in Product Quality & Recall Management, Information Security, Low-Carbon Products, and Product Stewardship criteria [4] - The company's smart two-wheelers feature low-carbon designs and green manufacturing, setting industry standards for sustainability [4] Comprehensive ESG Practices - NIU established a comprehensive value chain management system, introducing a "Supplier Code of Conduct" and "Conflict Minerals Policy" to ensure ethical standards in raw material sourcing [5] - The company implemented 24/7 customer support, achieving a perfect score in Customer Satisfaction Measurement criteria [5] - NIU's "Employee Rights and Interests Policy" prohibits discrimination and harassment, and its newly introduced "Human Rights Policy" received a perfect assessment score [5] Climate Disclosure and Future Commitment - NIU is one of the first electric two-wheeler companies in China to participate in the CDP assessment, publicly disclosing its carbon emissions data and earning an "Awareness Level" rating [6] - The company remains committed to sustainable development and plans to increase investments in research and innovation related to environmental management and carbon emissions control [7]

Core Insights - Niu Technologies has made significant advancements in its Environmental, Social, and Governance (ESG) performance for 2024, with its S&P Global ESG Score increasing by 14 points year-over-year to 43, ranking first in China's two-wheeler segment [1][2] - The company outperformed 68% of global automotive companies in the S&P Global Corporate Sustainability Assessment (CSA) and achieved a perfect score in several key criteria [1][2][4] ESG Performance - NIU's S&P Global ESG Score ranked first in China's two-wheeler segment and was among the top 4 in the broader automotive industry, surpassing the industry average by 11 points [2] - The company's Environmental score exceeded more than half of global automotive companies, while its Social and Governance scores outperformed 65% and 77% of global peers, respectively [2] Transparency and Data Disclosure - In 2024, NIU enhanced its ESG transparency by disclosing comprehensive data on greenhouse gas emissions and conducting a climate risk assessment aligned with the TCFD framework, resulting in a CSA Score increase from 0 to 75 in TCFD Disclosure criteria [3] - The company has disclosed energy consumption data for three consecutive years, raising its CSA score in Energy Consumption criteria from 42 to 90 [3] Decarbonization Initiatives - NIU achieved a perfect S&P Global CSA Score for the second consecutive year in Product Quality & Recall Management, Information Security, Low-Carbon Products, and Product Stewardship criteria [4] - The company's smart two-wheelers feature low-carbon designs and green manufacturing, significantly improving resource efficiency through lightweight designs and lithium battery adoption [4] Value Chain Management - NIU established a comprehensive value chain management system, introducing a "Supplier Code of Conduct" and "Conflict Minerals Policy" to ensure ethical and environmental standards in raw material sourcing [5] - The company implemented a "Human Rights Policy" that received a perfect assessment score, reflecting its commitment to diversity and inclusion [5] Industry Leadership - NIU is one of the first electric two-wheeler companies in China to participate in the CDP assessment, publicly disclosing its carbon emissions data and earning an "Awareness Level" rating [6][7] - The company plans to increase investments in research and innovation related to environmental management and carbon emissions control, aiming to lead the smart two-wheeler segment toward a more sustainable future [7]

Market Capitalization Summary - The market capitalization of various companies is highlighted, with notable figures such as 71.94 billion for an unnamed company and 69.52 billion for another [2]. - Companies like Bilibili and TAL Education have market capitalizations of 64.03 billion and 61.59 billion respectively [2]. - The lowest market capitalizations listed include 0.90672 million for Happy Car and 0.17235 million for Easy Electric [3]. Stock Performance - Stock performance shows fluctuations, with companies like Zai Lab experiencing a decrease of 0.36 (-2.72%) and 0.13 (-3.87%) for another unnamed company [2]. - Positive movements are noted for companies such as 51Talk, which increased by 0.99 (+2.74%) [2]. - The performance of companies like Huya and Xunlei shows declines of 0.11 (-4.00%) and 0.10 (-3.11%) respectively [3]. Company Highlights - Notable companies include JD.com with a market cap of 71.94 billion and TAL Education at 61.59 billion, indicating strong positions in the market [2]. - Other companies like 9F Inc. and Yatsen Global have market caps of 4.98 billion and 3.28 billion respectively, showcasing a diverse range of market sizes [2]. - The report also mentions companies with smaller market caps, such as 1.34 million for Baozun and 1.07 million for Leopard Mobile, indicating a broad spectrum of company valuations [3].

Market Capitalization Summary - The market capitalizations of various companies are listed, with notable values including 70.93 billion, 68.75 billion, and 66.79 billion [2] - Companies such as SOU, 奇富科技, and 再鼎医药 show significant market values of 47.99 billion, 66.05 billion, and 32.90 billion respectively [2] - The market performance of companies like 陆金所控股 and 雾芯科技 reflects increases of +3.70% and +0.99% respectively [2] Stock Performance Highlights - Notable stock price changes include +0.80 (+1.87%) for one company and +2.10 (+5.82%) for another [2] - Companies like 乐信 and iQiyi show stock price changes of -1.16% and +2.91% respectively [2] - The stock performance of companies such as 优信 and 宜人智科 indicates increases of +1.07% and +5.64% respectively [2] Emerging Companies - Newer companies like 新氧 and 天境生物 have market capitalizations of 827.85 million and 561.38 million respectively, with stock price increases of +3.99% and +11.10% [3] - Companies like 华米科技 and 开心汽车 show market values of 36.39 million and 9.20 million, with stock price changes of +9.61% and -1.18% respectively [3]

Core Insights - Niu Technologies experienced a significant increase in its China unit sales, rising 66% in the first quarter, while global sales growth was limited to 6% due to tariff challenges in the U.S. market [2][9] - The company is focusing on the premium segment of the Chinese market, which constitutes over 85% of its sales, while also expanding its international sales network through partnerships with major retailers [5][6] - Despite returning to revenue growth with a 24% increase to 3.29 billion yuan ($451 million) last year, the company is still facing losses, although the loss narrowed in the fourth quarter [6][7] China Market Performance - Niu's China scooter sales reached 183,065 units in the first quarter, marking a 66% year-on-year increase, continuing a trend of strong growth from the previous quarter [12][13] - The growth is attributed to a government program that incentivizes consumer spending through subsidies for trade-ins, which has expanded to include e-scooters [13][14] - The company forecasts a sales volume increase of 40% to 70% for the year, projecting total sales between 1.3 million and 1.7 million units [15] International Market Challenges - International unit sales grew only 6% year-on-year to 20,248 units in the first quarter, a significant slowdown compared to previous quarters [16] - The slowdown is attributed to a new 25% tariff imposed by the U.S. on Chinese imports, prompting the company to establish a manufacturing facility in Southeast Asia [17][18] - Despite the challenges, Niu's stock has increased by 70% this year, reflecting investor confidence in its strong domestic prospects [19]

Chinese electric scooter company Niu Technologies NIU disclosed its sales volume results for the first-quarter.In the first quarter, the company sold a total of 203,313 units, comprising e-motorcycles, e-mopeds, e-bikes, kick-scooters, and e-bikes.Of these, 183,065 units were sold in China, while 20,248 units were sold in international markets.Driven primarily by domestic momentum, Niu saw sales increase 57% in the first-quarter, from the 129,139 units sold in the same period last year.The share of the grow ...

Core Insights - Niu Technologies reported a significant increase in sales volume for Q1 2025, with a total of 203,313 units sold, representing a 57% year-over-year growth compared to Q1 2024 [2][3] - The company achieved a remarkable 66% growth in the Chinese market, selling 183,065 units, while international markets saw a modest 6% increase with 20,248 units sold [2][3] Sales Performance - In Q1 2025, Niu's sales volume in China reached 183,065 units, up from 110,115 units in Q1 2024, indicating strong demand and effective product strategies [2][3] - International sales increased from 19,024 units in Q1 2024 to 20,248 units in Q1 2025, reflecting ongoing progress in expanding electric motorcycle and micromobility channels [2][4] Product Launch and Market Reception - The launch of the NX Pro in late March 2025 received positive market feedback, generating significant pre-order demand and attracting over 3.5 million viewers during its live debut [3] - The company has a robust pipeline of new product launches and upgrades planned for the year, contributing to its strong first-quarter performance [3] Business Model and Product Portfolio - Niu Technologies operates an omnichannel retail model, integrating both offline and online sales channels to enhance customer reach and service [6] - The company offers a diversified product portfolio, including electric motorcycles, mopeds, bicycles, kick-scooters, and e-bikes, catering to various urban mobility needs [6]

证券研究报告 | 2025年04月03日 小牛电动（NIU.O） 优于大市 积极推进产品及渠道变革，有望迎来底部反转 小牛电动是全球化的智能城市出行解决方案提供商。小牛电动成立于 2014 年，公司开创了智能电动车两轮车的新品类，重点定位高端智能锂电产 品，2024 年后推出高端智能铅酸产品补足短板。2024 年公司电动两轮 车国内销售 75.9 万辆，国内市占率约 1.5%，产品平均单价 3500 元以上。 公司在国内有 3735 家品牌体验店及专卖店，重点布局一二线城市，进 入海外 52 个国家，是全球化的智能城市出行解决方案提供商。 2024 年收入恢复，利润亏损幅度收窄。2021 年之前公司收入快速增长， 2016-2021 年收入复合增速达 59.8%，2021 年后由于碳酸锂涨价，公司 主打的锂电产品价格持续上涨，导致销量下滑，至 2023 年收入下降至 26.52 亿元。2024 年公司首次布局高端铅酸电动两轮车，加强终端渠道 开拓及下沉，2024 年收入 32.88 亿元，同比增长 24%。锂电成本增加导 致公司 2022 年净亏损 0.49 亿元，2023 年公司受欧洲代理商资金短缺、 运营 ...

证券研究报告 | 公司深度报告 2025 年 03 月 27 日 小牛电动（NIU.O） 高端两轮车鼻祖，静待困境反转 消费品/家电 小牛电动作为国内锂电高端电动两轮车鼻祖，2022-2023 年受监管趋严、市场 错配和竞争加剧影响，陷入营收瓶颈、盈利亏损阶段，2024 年重新推动产品和 渠道下沉，国内市场重视铅酸车型开发、全渠道营销赋能、门店加速开拓，海 外加快电动滑板车出货调整，有望推动公司经营困境反转，首次覆盖给与"增 持"投资评级。 ❑ 风险提示：行业竞争加剧、成本提升风险、费用投放失控风险、行业销量下 滑影响、政策相关风险。 财务数据与估值 | 会计年度 | 2023 | 2024 | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入(百万元) | 2652 | 3288 | 4934 | 6286 | 7938 | | 同比增长 | -16% | 24% | 50% | 27% | 26% | | 营业利润(百万元) | -320 | -252 | 183 | 346 | 472 | | 同比增长 | 203 ...