Core Viewpoint - The electric two-wheeler industry is approaching a high prosperity turning point due to policy support and market structure optimization, with companies like NIU Electric actively adjusting their product and channel strategies to enhance performance and profitability [1]. Revenue Growth - The company experienced a compound annual growth rate (CAGR) of 59.8% in revenue from 2016 to 2021, but revenue declined to 2.652 billion yuan in 2023 due to rising lithium carbonate prices and increased competition [2][5]. - In 2024, the company is expected to generate 3.288 billion yuan in revenue, a 24% year-on-year increase, with further growth projected in 2025, where H1 revenue reached 1.94 billion yuan, up 34.1% year-on-year, and Q2 revenue was 1.26 billion yuan, up 33.5% year-on-year and 84.1% quarter-on-quarter [2][5]. Profitability Improvement - The company reported a net loss of 0.49 billion yuan in 2022 and a further loss of 2.72 billion yuan in 2023, but managed to achieve a net profit of 0.06 billion yuan in Q2 2025, marking a year-on-year increase of 123.6% and a quarter-on-quarter increase of 115.1% [2][6]. - The gross margin remained stable above 20% from 2019 to 2023, with Q2 2025 gross margin at 20.1%, reflecting a year-on-year increase of 3.1 percentage points [10]. Product and Channel Strategy - The company has shifted its focus to high-end lead-acid electric two-wheelers, launching new models like NT/MT Play in August 2024, which are competitively priced and feature advanced technology [3][26]. - The company is expanding its distribution channels, increasing the number of retail stores from 2,856 in 2023 to 4,304 in H1 2025, with a focus on penetrating second and third-tier cities [32]. Sales Performance - Domestic sales of electric two-wheelers dropped from 988,000 units in 2021 to 601,000 units in 2023, but the company saw a recovery in H1 2025 with total sales of 552,000 units, a year-on-year increase of 43.6% [17][21]. Competitive Advantage - The company has established a strong brand presence and competitive barriers through its focus on high-end, intelligent electric two-wheelers, recognized as a leading brand in the industry [21].