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]

Company Overview - NIU was founded in 2014[3] - The company has 4,304 stores in China[3] - NIU products are sold in 53 countries[3,29] - The company has sold 5.7 million scooters globally[3] Sales Performance (Q2 2025) - China sales volume reached 319,000 units, a 54% year-over-year increase[41] - Overseas sales volume reached 33,000 units, a 36% year-over-year decrease[41] - Total revenue was RMB 1,256 million, a 34% year-over-year increase[41] Financial Metrics (Q2 2025) - Gross margin was 20.1% of revenues[45] - Adjusted operating expenses were 17.0% of revenues[45] - Net margin was -27.2%[50] - Adjusted net margin was -2.1%[53] Balance Sheet (June 30, 2025) - Cash, restricted cash, deposits & short-term investment totaled RMB 1,441 million[48] - Total assets amounted to RMB 3,094 million[48] - Total liabilities amounted to RMB 2,190 million[48]

Financial Performance - Q1 2025 - Total revenue reached RMB 682 million in 1Q25[42] - China sales volume increased to 110 thousand units in 1Q25, a 35% year-over-year increase[42] - Overseas sales volume increased to 183 thousand units in 1Q25, a 66% year-over-year increase[42] - Gross margin was 173% of revenues in 1Q25[46] - Net margin was -272% in 1Q25[51] - Adjusted net margin was -46% in 1Q25[54] Assets and Liabilities - End of Period - Cash, restricted cash, deposits & short-term investment was RMB 963 million as of March 31, 2025[49] - Total assets were RMB 2508 million as of March 31, 2025[49] - Total liabilities were RMB 1611 million as of March 31, 2025[49] - Total equity was RMB 897 million as of March 31, 2025[49]

Financial Data and Key Metrics Changes - In Q4 2024, total sales volume reached 226,600 units, a significant 65% year-over-year growth, with total revenue of RMB819 million, reflecting a 71% increase compared to the same period last year [7][8][51]. - For the full year 2024, total sales volume was 924,000 units, representing a 30% year-over-year increase, and total revenue reached RMB3.29 billion, up 24% from 2023 [8][51]. Business Line Data and Key Metrics Changes - In Q4 2024, sales volume in China was 182,000 units, a 65% year-over-year increase, while overseas sales volume reached 44,000 units, marking a 64% growth [7][50]. - The N series accounted for 39% of total sales volume in China, a substantial increase from just 5% in 2023, demonstrating strong market demand [15]. - The ASP for China e-scooters reached RMB3,544, a 15% increase quarter-over-quarter and a 10% increase year-over-year [52]. Market Data and Key Metrics Changes - The overseas market saw a 54% growth in sales volume in Q4 2024 and a 52% growth for the full year [33]. - The overseas branded scooter ASP decreased to nearly RMB2,000, down around 10% year-over-year, primarily due to a higher sales contribution from kick-scooters [52]. Company Strategy and Development Direction - The company remains focused on expanding product offerings, strengthening sales channels, and broadening market reach, with a commitment to refining its strategy to achieve ambitious targets [9][23]. - In 2024, the company opened approximately 900 new stores, with plans to open another 1,000 to 1,500 stores in 2025 to strengthen market presence [26][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the China market and overseas market, highlighting strong foundations established in 2024 and expectations for continued growth in 2025 [39][44]. - The company anticipates a positive effect on ASP and gross margin in the domestic market in 2025, driven by increased sales volume and economies of scale [73]. Other Important Information - The gross margin for Q4 2024 was 12.4%, a decrease of 6.6 percentage points compared to the same period last year, primarily due to shifts in the overseas product mix and US tariffs [56]. - The company ended the year with RMB1.1 billion in cash and short-term investments, with operating cash flow showing an inflow of RMB55 million [62]. Q&A Session Summary Question: What is your sales target for kick-scooters in 2025? - The company expects a sales target of approximately 30% to 50% growth for kick-scooters in 2025, following a previous year of over 160,000 units sold [66][67]. Question: What is your outlook for average selling price and gross profit margin in the domestic market in 2025? - The company anticipates a slight increase in ASP in the domestic market, with expectations for improved gross margin due to economies of scale and increased sales volume [70][73]. Question: Can you provide guidance on expected net profit margin by 2025? - The company is not ready to share specific net profit margin guidance but expects to achieve overall profitability in 2025 [80][81]. Question: Which quarter in 2025 is expected to see the company's net profit turn from loss to profit? - The company expects to see quarterly profits in the second quarter of 2025, which is typically a peak quarter for revenue [84].