Niu Technologies Reports Growth in Q2 with Expanded Global Reach

Niu Technologies, a prominent player in smart urban mobility solutions, has announced impressive sales and revenue growth for the second quarter of 2024. The company recorded a 21% year-over-year increase in total sales volume, with 207,000 units sold in China and 48,600 units sold internationally.

Total revenue for the quarter reached RMB 940.5 million, reflecting a 13.5% increase compared to the same period last year. In a tough market landscape, Niu Technologies has successfully broadened its product lineup and sales channels, targeting various consumer segments and forging strategic partnerships in retail.

### Key Highlights

– Niu Technologies achieved a 21% increase in total sales volume year-over-year, with notable expansion in both domestic and international markets.
– Revenue surged by 13.5% to RMB 940.5 million, supported by new product innovations and expanded sales networks.
– The company remains optimistic about its growth potential, particularly in markets such as Germany, the United States, and Australia.
– Gross margin for the second quarter dropped to 17%, a decrease from the previous year, along with a net loss of RMB 25 million.
– Niu Technologies is adjusting to market dynamics by relocating some of its manufacturing operations and closely monitoring new national standards for scooters.

### Company Outlook

– For Q3, Niu Technologies expects revenues to fall between RMB 1,298 million and RMB 1,483 million, representing a 40% to 60% increase year-over-year.
– The company plans to open around 1,000 new stores and has begun to relocate part of its manufacturing in response to changing import tariffs.
– Niu aims to optimize its product offerings and enhance same-store sales through an omni-channel strategy.

### Challenges and Opportunities

#### Bearish Aspects

– The electric two-wheeler segment saw a drastic 69% decline in the first half of 2024, spurred by reduced market volume in Europe.
– The gross margin fell to 17% in Q2, a decline of 6.1 percentage points from the previous year.
– The company recorded a net loss of RMB 25 million in Q2, compared to a net loss of RMB 2 million in the same period last year.

#### Bullish Aspects

– Niu Technologies has expanded its presence in micro-mobility retail channels in the U.S., Germany, and Australia through partnerships with major retailers.
– Revenue from kick scooters now accounts for approximately 14% of total revenues, rising from 10% the year prior.
– The company anticipates a decrease in operating expenses as a percentage of revenue in the latter half of the year.

### Q&A Highlights

– Niu Technologies discussed the stability of gross margins for kick scooters and their strategic importance for brand reinforcement in developed markets.
– The potential positive impact of new national standards for scooters on battery safety was highlighted.
– The company expects economies of scale to benefit production and logistics costs when kick scooter sales reach around 500,000 units.

Niu Technologies’ commitment to expanding its product offerings and diversifying sales channels positions it for continued growth in a competitive industry. The company’s management expressed appreciation for ongoing support and looks forward to providing further updates in the upcoming quarter.