Niu(US:NIU)2022-11-21 17:50Financial Data and Key Metrics Changes - Total sales volume decreased by 19.2% year-over-year, reaching 321,000 units in Q3 2022 [5][28] - Sales volume in the international market was nearly 58,000 units, while sales volume in China was 263,000 units, down by 32.9% year-over-year [5][28] - Total revenue for Q3 was RMB 1.15 billion, a decrease of 6% compared to the same period last year [30] - Gross margin improved to 22.1%, up by 2.1 percentage points year-over-year [32] Business Line Data and Key Metrics Changes - Premium series sales volume remained stable at 224,000 units, accounting for 85% of total sales volume in China [28] - Kick-scooter sales volume surged to 55,000 units, a growth of 162% quarter-over-quarter [16][28] - E-motorcycle sales volume in the international market decreased by one third to 3,000 units [28] Market Data and Key Metrics Changes - Sales volume in the Southeast Asia market grew by 166.5% year-over-year, driven by Indonesia and Thailand [15] - The kick-scooter category saw significant growth, with models ranking as best sellers on platforms like Amazon [16][18] Company Strategy and Development Direction - The company is focusing on premium and high-end products to improve gross margins and strengthen its brand [12][22] - Plans to expand product offerings and sales channels, including offline retail partnerships [18][25] - The strategy includes exploring battery swapping solutions to enhance market penetration in Southeast Asia [15][26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges from rising raw material prices, market demand fluctuations, and COVID-19 impacts [5][20] - A cautious outlook for Q4 2022, anticipating continued low demand and price increases [20] - Despite challenges, the company is optimistic about recovery and growth in 2023, focusing on premium products [26] Other Important Information - The company has made significant investments in marketing and product development, with a focus on enhancing brand recognition [19][34] - The total operating expenses for Q3 were RMB 263 million, a 72% increase year-over-year [32] Q&A Session Summary Question: Selling and marketing expenses outlook - Management indicated that selling and marketing expenses are expected to remain around RMB 100 million to RMB 130 million for the next two to three quarters, with a potential 20% decrease thereafter [42][45] Question: Product strategy for next year - The focus will be on premium and mass premium products, particularly in the RMB 3,500 to RMB 5,000 range, due to low gross margin contributions from entry-level products [48][49] Question: Product strategy for overseas markets - The company plans to grow in Southeast Asia and explore battery swapping solutions to lower upfront costs for consumers [53][54]