Financial Data and Key Metrics Changes - Total sales volume for Q1 2024 was 129,000 units, a year-over-year increase of 37% [5][27] - Total revenue for Q1 was RMB 504.7 million, marking a 21% year-over-year increase [5][28] - Gross margin for Q1 was 18.9%, a decrease of 2.8 percentage points year-over-year [30] - Net loss for Q1 was RMB 55 million, with a net loss margin of 10.9% [31] Business Line Data and Key Metrics Changes - In the China market, sales volume increased by 31% to 110,000 units, while overseas sales volume grew by 48% to 19,000 units [5][27] - Revenue from scooters in China was RMB 393 million, a year-over-year increase of 28.8% [28] - Overseas revenue was RMB 60 million, accounting for 12% of total revenue [28] Market Data and Key Metrics Changes - The micro-mobility sector saw a year-over-year growth of 48% [16] - The ASP (Average Selling Price) for scooters in China decreased by 4.7% year-over-year to RMB 3,568 [28] - The ASP for overseas scooters decreased from RMB 4,138 to RMB 2,577 year-over-year [29] Company Strategy and Development Direction - The company is focusing on the premium segments of the market, enhancing its product portfolio with models like the NXT series [5][6] - Plans to expand retail presence globally, with partnerships established in over 1,200 locations worldwide [7][18] - Aiming to build an urban mobility brand focused on diverse user needs, particularly targeting young demographics and female riders [9][10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in Q2, driven by new product introductions and channel improvements [23][25] - Acknowledged potential macroeconomic challenges in the China market but maintained a positive outlook for overseas markets [25][26] - The company anticipates a revenue range of RMB 912 million to RMB 955 million for Q2, representing a year-over-year increase of 10% to 20% [33] Other Important Information - The successful launch of the NXT model contributed 25% of total sales revenue in the China market for the quarter [6] - The company has engaged in extensive marketing campaigns, generating significant brand visibility and engagement [13][15] Q&A Session Summary Question: About the gross margin and its improvement - Management explained that the gross margin did not improve significantly due to changes in sales policy and increased contributions from lower-margin products [35][36] Question: On selling expenses and future guidance - Management indicated that selling expenses as a percentage of revenue have decreased in the domestic market and expect further reductions as sales volume increases [39][40] Question: Plans for retail store expansion in China - Management confirmed plans to increase the number of retail stores in China, with several hundred stores expected to be added in Q2 [42][43] Question: Sales volume target for 2024 - Management maintained the target of selling over 1 million units in 2024, with growth expected to be more pronounced in the overseas market [44][45][46]

1Q 2024 NIU at a glance ...

Sales and Distribution - The company sold a total of 709,802 units in 2023, including e-motorcycles, e-scooters, kick-scooters, and e-bikes, with 600,994 units sold in the China market and 108,808 units in international markets[289] - The company operates through 288 city partners with 2,856 franchised stores in 251 cities in China and 56 distributors in 54 countries overseas as of December 31, 2023[289] - Total e-scooter sales decreased by 19.9% from 1,037,914 units in 2021 to 831,593 units in 2022, and further decreased to 709,802 units in 2023[449] - Revenues from e-scooters accounted for 88.9% of net revenues in 2023, with domestic sales in China contributing 600,994 units and international markets contributing 108,808 units[445] - The F series e-scooter sales increased significantly from 79,747 units in 2022 to 209,554 units in 2023, representing 29.5% of total e-scooter sales[450] - The company operates 2,856 franchised stores in 251 cities in China through 288 city partners and has 56 distributors in 54 countries overseas as of December 31, 2023[445][454] - As of December 31, 2023, the company sold smart e-scooters through 56 distributors in 54 countries overseas, with international market revenues accounting for 14.7%, 18.5%, and 15.2% of total revenues in 2021, 2022, and 2023, respectively[455] - The company plans to expand its distribution network, launch new products tailored to local markets, and explore additional business opportunities in Europe, the U.S., and Southeast Asia[455] Product Portfolio and Innovation - The company's product portfolio includes two main lineups: electric motorcycles, mopeds, and bicycles (NQi, MQi, UQi, F series) and micro-mobility products (KQi kick-scooters and BQi e-bikes)[293] - The company's RQi series features high-performance electric motorcycles with advanced features such as removable batteries, front and rear cameras, and a 5kW mid-mounted motor[298] - The company's SQi series is positioned as its most high-end electric bicycle product in China, featuring aerospace magnesium alloy materials and a futuristic design[299] - The company's KQi series offers a range of electric kick-scooters, including the high-end KQi Air and entry-level KQi1 and KQi2 models[300] - The company's R&D expenses include payroll and related costs for employees, design and development expenses, and facility and equipment costs, with plans to continue innovation and expand the product portfolio[469] Financial Performance - The company raised approximately US$55.2 million in net proceeds from its initial public offering on Nasdaq in October 2018[288] - Revenues from accessories and spare parts accounted for 7.5% of net revenues in 2023, while services revenue increased to 3.6% of total revenues[451] - The company's gross margin remained stable at 21.5% in 2023, despite challenges from lithium battery price hikes and macroeconomic conditions[452] - Selling and marketing expenses increased to 18.7% of revenues in 2023, driven by international market expansion, particularly in kick-scooters[453] - Revenues decreased by 16.3% from RMB3,168.6 million in 2022 to RMB2,651.8 million (US$373.5 million) in 2023, primarily due to a 14.6% decrease in e-scooter sales volume[480] - E-scooter sales revenue decreased by 17.4% from RMB2,853.9 million in 2022 to RMB2,358.7 million (US$332.2 million) in 2023[480] - Revenues per e-scooter decreased from RMB3,810.3 in 2022 to RMB3,735.9 (US$526.2) in 2023, mainly due to decreased sales of higher-priced e-motorcycles and e-mopeds in international markets[481] - Accessory and spare parts sales revenue decreased from RMB242.3 million in 2022 to RMB197.6 million (US$27.8 million) in 2023, driven by reduced battery pack sales and lower e-motorcycle and e-moped sales[482] - Service revenues increased from RMB72.4 million in 2022 to RMB95.5 million (US$13.4 million) in 2023, attributed to growth in the user base[482] - Cost of revenues decreased by 16.7% from RMB2,498.9 million in 2022 to RMB2,081.0 million (US$293.1 million) in 2023, in line with the decrease in e-scooter sales volume[483] - Cost per e-scooter decreased from RMB3,005.0 in 2022 to RMB2,931.8 (US$412.9) in 2023, primarily due to lower freight costs for overseas sales[483] - Gross profit decreased to RMB570.7 million (US$80.4 million) in 2023 from RMB669.7 million in 2022, but gross margin increased from 21.1% to 21.5% due to lower raw material costs and new product launches[484] - Operating income (loss) worsened from a loss of RMB89.3 million in 2022 to a loss of RMB317.5 million (US$44.7 million) in 2023[478] - Net income (loss) worsened from a loss of RMB49.5 million in 2022 to a loss of RMB271.8 million (US$38.3 million) in 2023[478] Technology and Data Analytics - The company's NIU app synchronizes with smart e-scooters and collects user behavioral data to enhance customer engagement and brand loyalty[292] - NIU app connected with approximately 2,704,500 smart e-scooters, accumulating 21.4 billion kilometers of riding distance data as of December 31, 2023[314] - NIU collects 462 types of data points covering 72 dimensions, including humidity, lighting, and temperature, from Cloud ECU and up to 32 sensors per e-scooter[314] - NIU's cloud system handles over a million persistent connections concurrently and supports TB-level database queries[315] - NIU's proprietary big data platform, NIU Inspire, analyzes data to improve product performance, firmware updates, and targeted marketing[316] - NIU's Cloud ECU supports OTA updates, enabling users to benefit from performance improvements and feature enhancements[328] - NIU's Field Oriented Control (FOC) system optimizes motor performance and power consumption using real-time data analytics[331] - NIU's Electronic Braking System (EBS) recycles kinetic energy and enhances braking efficiency[332] - NIU is developing advanced systems, including active safety systems, self-balancing systems, and L2 autonomous driving systems[335] Regulatory Compliance and Legal - The company has obtained China Compulsory Certification for all current for-sale products and aims to obtain certification for future products[387] - The company complies with the Product Quality Law of the PRC, ensuring no production or sale of counterfeit products or false information[386] - The company adheres to the Production Safety Law of the PRC, maintaining safety facilities and procedures to ensure employee and public safety[385] - The company has not initiated any product recalls under the Interim Provisions on the Administration of Recall of Consumer Goods[388] - The company operates its website and app through Beijing Niudian, complying with foreign investment regulations in telecommunications[392] - The company is subject to the Foreign Trade Law of the PRC and has made necessary filings with authorities for import and export activities[390] - The company is not restricted or prohibited under the 2021 Negative List for foreign investment in electric bicycle design, manufacture, and sale[391] - The company monitors regulations under the NDRC Order 11 for potential overseas investments exceeding $300 million[393] - The company is subject to foreign debt regulations, including the Interim Provisions on the Management of Foreign Debts and PBOC Circular 9[395] - The company complies with the Network Security Law of the PRC, ensuring data integrity, confidentiality, and availability[398] - The amended Counterespionage Law of China, effective July 1, 2023, links data security to national security, prohibiting unauthorized data provision and cyberattacks against specific authorities[399] - The Data Security Law, effective September 1, 2021, mandates data processors to establish a whole-process data security management system and imposes penalties for violations[402] - The Personal Information Protection Law, effective November 1, 2021, regulates personal information processing and requires consent for data collection and use[401] - Data processors handling over one million users' personal information must undergo cybersecurity review before listing abroad[404] - The Data Export Measures, effective September 1, 2022, require security assessments for exporting personal information exceeding certain thresholds[405] - The Standard Contract Measures, effective June 1, 2023, regulate outbound transfer of personal information through standard contracts[407] - Companies processing personal information in China must undergo regular compliance audits, as per the Measures for the Administration of Personal Information Protection Compliance Audits (for Public Comments)[409] - Cross-border data transfer exemptions include transfers for contract performance, HR management, emergencies, and non-sensitive data involving less than 100,000 people[412] - Mobile app information service providers must comply with the Administrative Provisions on Mobile Internet Applications Information Services, effective August 1, 2022[415] - The Telecommunications Regulations require value-added telecommunication service providers to obtain an ICP License before operations[414] Taxation and Financial Regulations - Mainland China employers are required to contribute to social insurance for employees, including basic pension, medical, unemployment, maternity, and injury insurance, as well as housing funds[423] - Mainland China residents must register with SAFE for offshore investment and financing through special purpose vehicles, with penalties for non-compliance including restrictions on profit distributions and capital contributions[424] - Mainland China residents participating in overseas stock incentive plans must register with SAFE and remit foreign exchange proceeds into mainland China bank accounts[425] - Foreign-invested enterprises in mainland China must allocate 10% of after-tax profits to statutory common reserves until reserves reach 50% of registered capital[426] - Mainland China resident enterprises are subject to a 25% enterprise income tax rate, while non-resident enterprises without mainland China branches pay a 10% tax rate on mainland China-sourced income[427] - Dividends to non-resident enterprises are subject to a 10% withholding tax, which may be reduced to 5% under certain tax treaties[428] - VAT rates for goods and services in mainland China were adjusted to 13% and 9% respectively, effective April 1, 2019[429] - Advanced manufacturing enterprises can claim an additional 5% input tax credit against tax payable[429] - The company's subsidiaries in mainland China, Jiangsu Xiaoniu and Beijing Niudian, enjoy a preferential income tax rate of 15% as High and New Technology Enterprises (HNTE) for the fiscal years 2021-2023 and 2022-2024, respectively[474] - The company's Hong Kong subsidiary, Niu Technologies Group Limited, is taxed at 8.25% on the first HK$2 million of profits and 16.5% on the remaining profits, with no provision for Hong Kong profits tax made in 2021, 2022, or 2023[473] Manufacturing and Operations - A new manufacturing facility in Changzhou, with a total building area of 123,500 square meters, was completed in August 2021 to meet increasing demand for e-scooters[441] - The company prepaid RMB39.4 million in 2020 and RMB2.0 million in 2019 to acquire land use rights for a 61,148 square meter plot in Changzhou, where the new facility was built[441] - The company's PRC legal counsel confirmed that the VIE structure and contractual arrangements comply with current PRC laws, but noted uncertainties regarding future regulatory interpretations[439][440] Customer Engagement and Loyalty - The company's NIU app provides services such as online repair requests, smart checks, service station locators, and NIU Cover insurance services[306] - The company's NIU Points loyalty program allows users to earn points through activities and redeem them for exclusive NIU badges, accessories, and coupons[308] - Over 75% of NIU users rode their e-scooters on a monthly basis in 2023[311] Warranty and After-Sales Services - NIU's battery packs feature a 24-month or 20,000-kilometer warranty, with some models offering a 36-month or 30,000-kilometer warranty[318] Corporate Structure and Agreements - Beijing Niudian's shareholders have pledged 100% equity interests to the company's WFOE to guarantee performance under contractual agreements[434] - The company's WFOE has exclusive rights to provide operational support and consulting services to Beijing Niudian, with service fees equal to 100% of net profits[436]

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 ...

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 ...

NIU at a glance ...

Financial Data and Key Metrics Changes - In Q2 2023, total sales volume was 211,996 units, a slight year-over-year increase of 1.5% [5] - Total revenue for Q2 2023 was RMB 828.8 million, matching the level from Q2 2022 with a slight increase of 0.1% [5][32] - Gross margin increased by 2.8 percentage points year-over-year, reaching 23.1% [34] - Net loss for Q2 was RMB 2 million compared to a net profit of RMB 14 million for the same period last year [36] Business Line Data and Key Metrics Changes - Sales volume in the China market decreased by 1.0% year-over-year to 178,567 units, while overseas sales volume grew by 17.1% to 33,429 units [5] - New products launched in Q2 accounted for over 60% of total sales volume in June [12] - Micro-mobility revenue increased by 127% quarter-over-quarter and 33% year-over-year, reaching RMB 90 million [33] Market Data and Key Metrics Changes - In the overseas market, sales of electric two-wheelers dropped by 68% year-over-year, while micro-mobility sales increased by 48.5% [8][18] - The average selling price (ASP) of scooters in China increased by 8% year-over-year to RMB 3,577 [32] - The ASP for overseas scooters decreased from RMB 5,122 to RMB 3,430 year-over-year due to a higher proportion of kick scooter sales [33] Company Strategy and Development Direction - The company is focusing on premium and mass premium products to drive long-term growth [6] - Strategic collaborations and participation in high-profile events are being leveraged to enhance brand visibility [16][17] - Plans to roll out battery swapping solutions in Southeast Asia and new high-performance products in Europe are underway [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for growth in both China and international markets, driven by new product launches [27][28] - Challenges in the European market due to economic slowdown and increased lithium battery prices were acknowledged [19] - Regulatory changes in key cities in China may temporarily disrupt sales [27] Other Important Information - The company has sold over 3.8 million scooters globally, contributing to a sustainable reduction of carbon emissions by nearly 4.8 million tons [30] - The company plans to release major product portfolio upgrades later this year to drive sales volume and margin improvement [28] Q&A Session Summary Question: Could you please give us a breakdown of the revenue guidance for Q3 2023? - The company expects a blended sales volume increase of around 10% and a slight increase in ASP compared to Q2, with domestic sales volume expected to be around 85% [41] Question: What is the reason for the gross profit margin increase in Q2, and can it be maintained in Q3? - The gross margin is expected to remain high due to new product advantages, but some gains may be passed to sales channels, leading to a blended gross margin of around 20% to 23% in Q3 [44][45] Question: What is the outlook for electric motorcycles overseas, especially in Europe and Southeast Asia? - The European market is facing challenges due to a weak economy, but the introduction of new products may help. In contrast, Southeast Asia is expected to see better growth due to rising demand [48][49] Question: Will the number of domestic channels grow in Q3 and Q4? - The company anticipates more store openings in Q4 rather than Q3, as Q4 is typically a better time for channel expansion [51]

Company Overview - NIU has sold 3.8 million scooters globally [2] - The company has a sales network that includes 2,844 dedicated stores in China [23] and 55 country distributors [22], covering 53 countries [23] - NIU's current production capacity is 2 million units [26] Financial Performance - In 2022, the company's total revenues reached RMB 3705 million [46] - The company's gross margin was 23.1% [32] - The company's S&M expenses accounted for 13.2% of revenues [32], R&D expenses accounted for 3.4% of revenues [32], and G&A expenses accounted for 7.0% of revenues [32] Balance Sheet - As of June 30, 2023, the company had RMB 1,132 million in cash, restricted cash, deposits & short-term investments [37] - As of June 30, 2023, the company's total assets were RMB 2,385 million [37] and total liabilities were RMB 1,091 million [37] - As of June 30, 2023, the company's total equity was RMB 1,294 million [37]

[Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202023%20Financial%20Highlights) Niu Technologies reported flat Q2 2023 revenue at RMB 828.8 million, a net loss of RMB 1.9 million, with e-scooter sales up 1.5% driven by international growth | Financial Metric | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | RMB 828.8 million | RMB 827.6 million | +0.1% | | Gross Margin | 23.1% | 20.3% | +2.8pp | | Net Income (Loss) | (RMB 1.9 million) | RMB 14.4 million | - | | Adjusted Net Income | RMB 14.4 million | RMB 31.2 million | -53.8% | | Operational Metric | Q2 2023 | YoY Change | | :--- | :--- | :--- | | Total E-scooters Sold | 211,996 | +1.5% | | E-scooters Sold (China) | 178,567 | -1.0% | | E-scooters Sold (International) | 33,429 | +17.1% | | Franchised Stores in China | 2,844 | - | | International Distributors | 55 | - | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Dr. Yan Li noted strong market reception for new products, including MQiL and GOVA G400/G400T, supporting future sales and stable micro-mobility growth - New products, such as the MQiL and GOVA G400/G400T models, have been successfully launched and well-received by the market[3](index=3&type=chunk) - The MQiL model has become a key product, contributing to **one-third of domestic sales** in the quarter[3](index=3&type=chunk) - The micro-mobility segment, specifically kick-scooters, achieved stable growth during the second quarter[3](index=3&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Second%20Quarter%202023%20Financial%20Results) Stable revenue at RMB 828.8 million and improved gross margin to 23.1% were offset by a 14.9% rise in operating expenses, leading to a net loss of RMB 1.9 million [Revenue Analysis](index=2&type=section&id=Revenues) Q2 2023 total revenue marginally increased by 0.1% to RMB 828.8 million, driven by China's e-scooter sales growth, largely offset by a decline in international e-scooter sales due to product mix shifts | Revenue Breakdown (RMB Million) | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | E-scooter sales (China) | 638.7 | 596.6 | +7.1% | | E-scooter sales (International) | 114.7 | 146.3 | -21.6% | | Accessories, spare parts & services | 75.4 | 84.7 | -11.0% | | **Total** | **828.8** | **827.6** | **+0.1%** | - The **7.1% revenue increase** in the China market was primarily driven by strategic optimization of the premium product mix, which increased the revenue per e-scooter by **8.1% to RMB 3,577**[6](index=6&type=chunk) - The **21.6% revenue decrease** in international markets was mainly due to a decline in sales of higher-priced e-motorcycles and e-mopeds, partially offset by increased sales of lower-priced kick-scooters, leading to a **33.0% drop in revenue per e-scooter internationally**[6](index=6&type=chunk) [Cost, Gross Margin, and Operating Expenses](index=3&type=section&id=Cost%20of%20revenues) Gross margin improved to 23.1% due to product mix and lower battery costs, but total operating expenses rose 14.9% to RMB 198.8 million, driven by increased selling, marketing, and G&A costs - Gross margin increased to **23.1%** from **20.3%** in Q2 2022, mainly due to the strategic optimization of the premium product mix and increased revenue per e-scooter in China[8](index=8&type=chunk) - Cost per e-scooter decreased by **4.9% to RMB 3,006**, primarily due to the increased proportion of kick-scooters and decreased cost of battery packs[8](index=8&type=chunk) | Operating Expenses (RMB Million) | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Selling and marketing | 109.5 | 92.5 | +18.4% | | Research and development | 41.3 | 44.5 | -7.1% | | General and administrative | 48.0 | 36.0 | +33.2% | | **Total Operating Expenses** | **198.8** | **173.0** | **+14.9%** | [Net Income and Earnings Per Share (EPS)](index=4&type=section&id=Net%20loss) The company reported a net loss of RMB 1.9 million, a significant decline from prior-year net income, with adjusted net income also decreasing to RMB 14.4 million | Profitability Metric (RMB Million) | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net Income (Loss) | (1.9) | 14.4 | | Adjusted Net Income (Non-GAAP) | 14.4 | 31.2 | - Basic and diluted net loss per ADS were both **RMB 0.02 (US$ 0.00)**[11](index=11&type=chunk) [Balance Sheet Summary](index=4&type=section&id=Balance%20Sheet) As of June 30, 2023, Niu Technologies maintained solid liquidity with RMB 1,022.2 million in cash and investments, total assets of RMB 2,385.3 million, and total liabilities of RMB 1,091.5 million - As of June 30, 2023, the company had cash, term deposits, and short-term investments totaling **RMB 1,022.2 million**[12](index=12&type=chunk) | Key Balance Sheet Items (RMB Million) | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | 1,930.1 | 2,012.1 | | Total Assets | 2,385.3 | 2,536.7 | | Total Current Liabilities | 1,064.0 | 1,192.8 | | Total Liabilities | 1,091.5 | 1,226.6 | | Total Shareholders' Equity | 1,293.8 | 1,310.1 | [Business Outlook](index=4&type=section&id=Business%20Outlook) For Q3 2023, Niu Technologies forecasts revenues between RMB 1,153 million and RMB 1,326 million, representing a 0% to 15% year-over-year increase - The company expects Q3 2023 revenues to be between **RMB 1,153 million and RMB 1,326 million**[12](index=12&type=chunk) - This guidance corresponds to a year-over-year growth rate of **0% to 15%**[12](index=12&type=chunk) [Appendix: Financial Statements](index=7&type=section&id=Appendix) This section presents detailed unaudited financial statements for Q2 and H1 2023, including consolidated balance sheets, income statements, and GAAP to non-GAAP net income reconciliation | Unaudited Income Statement (RMB Million) | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Revenues | 828.8 | 827.6 | | Gross Profit | 191.5 | 167.6 | | Operating Loss | (6.8) | (5.1) | | Net Income (Loss) | (1.9) | 14.4 | | GAAP to Non-GAAP Reconciliation (RMB Million) | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net Income (Loss) (GAAP) | (1.9) | 14.4 | | Add: Share-based compensation | 16.3 | 16.8 | | **Adjusted Net Income (Non-GAAP)** | **14.4** | **31.2** |