Niu(US:NIU)2023-08-14 15:18Financial 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]