Niu(NIU) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2022, total sales volume decreased by 17.4% year-over-year to 209,000 units, with the China market down by 26.7% to 180,000 units [5][24] - Total revenue for Q2 was RMB 828 million, a decline of 12.4% year-over-year, while the average selling price (ASP) increased by more than 10% from RMB 3,222 to RMB 3,557 [25][26] - Gross margin for the quarter was 20.3%, down 2.4 percentage points year-over-year but up 1.2 percentage points from the previous quarter [29] Business Line Data and Key Metrics Changes - International sales volume surged by 200% year-over-year, reaching nearly 29,000 units, primarily driven by kick-scooter sales [5][24] - Kick-scooter sales volume doubled quarter-over-quarter to 21,000 units, marking a record high since its launch [25] - E-motorcycles and e-mopeds sales volume increased by nearly 10% to over 7,700 units [25] Market Data and Key Metrics Changes - The China market was significantly impacted by COVID-19 lockdowns, particularly in top-tier cities, which account for 35% to 55% of total sales [6][24] - International markets showed robust growth, with kick-scooter sales growing rapidly, especially during promotional events like Amazon Prime Day [7][25] Company Strategy and Development Direction - The company launched three new electric bicycle products in August, targeting various market segments and reinforcing its position as an innovation leader [8][14] - Niu Technologies is expanding its offline sales network, aiming to grow its point of sales to nearly 2,000 stores in the U.S. and Europe by the end of Q3 [21] - The company is optimistic about sales growth in international markets, particularly in kick-scooters and e-bikes [20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the sales rebound in Q3 due to ongoing COVID impacts and rising lithium-ion battery prices [19] - Despite challenges, the company anticipates positive market responses to new product launches, which are expected to fuel growth in late Q3 and Q4 [18] - The company has adjusted its full-year volume guidance to 1 million to 1.2 million units due to uncertainties in economic recovery [33] Other Important Information - The company released its inaugural ESG report, highlighting its commitment to low carbon operations and corporate governance [22] - Operating expenses increased by 26.4% year-over-year, primarily due to higher selling and marketing expenses [30] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [34]