Niu Technologies Announces Unaudited Third Quarter 2025 Financial Results

Core Insights - Niu Technologies reported third quarter revenues of RMB 1,693.9 million, marking a 65.4% increase year-over-year, driven by a 49.1% rise in sales volume and an 11.0% increase in revenues per e-scooter [1][3][4] - The company achieved a net income of RMB 81.7 million, a significant turnaround from a net loss of RMB 40.9 million in the same period last year [1][4][8] - The gross margin improved to 21.8%, up from 13.8% in Q3 2024, attributed to a higher proportion of e-scooter sales and cost-reduction initiatives [4][6] Financial Highlights - Revenues from e-scooter sales in the China market reached RMB 1,481.9 million, an increase of 85.8% year-over-year, while international market sales decreased by 48.6% to RMB 67.0 million [3][9] - The total number of e-scooters sold was 465,873, with 451,455 sold in China (up 74.2%) and 14,418 in international markets (down 73.0%) [4][9] - Adjusted net income (non-GAAP) was RMB 88.4 million, compared to an adjusted net loss of RMB 34.2 million in Q3 2024 [4][9] Operating Performance - Operating expenses increased by 48.1% to RMB 297.1 million, but as a percentage of revenues, they decreased to 17.5% from 19.6% in Q3 2024 [6][10] - Selling and marketing expenses rose by 68.3% to RMB 214.9 million, primarily due to increased marketing efforts in the China market [10] - Research and development expenses increased by 43.2% to RMB 43.4 million, reflecting higher design and testing costs [10] Market Position and Strategy - The company is focusing on channel expansion and product transition strategies as it prepares for the implementation of new national standards [2] - Niu Technologies celebrated its 10th anniversary at EICMA, a key global industry exhibition, enhancing its brand influence internationally [2] - The company operates 4,542 franchised stores in China and has 57 distributors in its international sales network, covering 53 countries [4][9] Business Outlook - Niu expects fourth quarter revenues to range between RMB 737 million and RMB 901 million, indicating a potential year-over-year change of -10% to +10% [13]