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].

Core Viewpoint - The company has experienced a significant recovery in revenue and a reduction in loss margins in the first quarter of 2025, with a revenue increase of 35.1% year-on-year, reaching 680 million yuan [1][6][7]. Revenue and Profitability - From 2016 to 2021, the company's revenue compound annual growth rate (CAGR) was 59.8%, but revenue declined to 2.652 billion yuan in 2023 due to rising lithium carbonate prices and increased competition [1][7]. - The company is expected to achieve a revenue of 3.288 billion yuan in 2024, a year-on-year increase of 24%, and continue to recover in 2025 [1][7]. - The net loss narrowed to 39 million yuan in the first quarter of 2025, compared to a loss of 272 million yuan in 2023 [1][6][7]. Margin Analysis - The company's gross margin remained stable above 20% from 2019 to 2023, but is projected to decline to 17.3% in the first quarter of 2025 due to tariffs on scooters [3][8]. - The net margin improved to -5.7% in the first quarter of 2025, an increase of 5.2 percentage points year-on-year, driven by increased sales scale and reduced expense ratios [2][3][8]. Product and Channel Strategy - The company has actively adjusted its product and channel strategies since 2024, launching high-end lead-acid electric two-wheelers to enhance competitiveness and improve sales [4][5][14]. - The introduction of new models, such as the NT/MT Play series, has been well-received, with significant sales achieved shortly after launch [17][20]. - The company has expanded its distribution network, increasing the number of terminal stores to 4,119 in the first quarter of 2025, up from 3,735 in 2024 [23]. Sales Performance - The company reported a total sales volume of 203,000 units in the first quarter of 2025, a year-on-year increase of 57.4%, with domestic sales reaching 183,000 units [13][14]. - The company has successfully navigated challenges in overseas markets, achieving 165,000 units in exports in 2024, primarily to the US and Europe [13][14]. Brand and Market Position - The company has established a strong brand presence and competitive edge in the high-end electric two-wheeler market, recognized as a leading brand in smart electric vehicles [5][14].