NIU had another successful Q4 & Full Year 2021 results, and despite top line and sales growth, it missed its earnings goal, plummeting the stock price.
NIU Q4 results are out. The company announced its financial results for the fourth quarter and full year ended December 31, 2021. Despite showing remarkable growth, the company also has a shrinking gross and net profit line, leading to a stock plummet during yesterday’s market hours.
The earnings report revealed the company is continuing to grow, with an increase in year-over-year sales of 58.3%. Selling a total of 238,188 units in Q4. The local market was the major driver of this growth, increasing 49.2% year-over-year (205,239 units), as well as international sales, growing 155.8% year over year (32,949 units).
NIU reached almost 15,000 kick-scooter standing scooter sales, after strengthening their kick-scooter line-up.
And despite all the strong growth results above, the bottom line of the company showed a shrink in gross and net margins. Due to higher material costs and a shift in sales mix, Niu’s gross profit margin contracted from 25.2% in the prior-year period to 22.6% in the latest quarter. That is evident in the bottom line. In Q4 2020, Niu’s net profit margin was 4.8%, a significant decrease from its 8.7% margin in Q4 2020.
The company recently presented five new products at EICMA 2021 in Milan, this included the highly anticipated RQiGT, the MQiGT-EVO, a 150cc hybrid moped, the YQi, the BQi e-bike and 2 additional KQi series kick scooters.
Management anticipates growth on a year-over-year basis of 20% to 30% in the first quarter of 2022. In spite of that favorable forecast, the company may still incur higher costs of materials, and may still see lower bottom line, weakening their reports.
It is likely that this situation will pass, and the fact that the company’s scooter sales are increasing in China and internationally is a positive sign.
“We are very pleased to see another quarter of outstanding performance with 49.2% and 155.8% increase in domestic and international sales volume, respectively, amid weaker economic conditions. We further expanded our retail sales network in China and opened 422 stores during the fourth quarter…”Dr. Yan Li, Chief Executive Officer, NIU
These results still reflect the continuedly growing 2-wheel electric space, where more models keep on coming, and more riders are looking to expand their options. NIU will continue to release more products, and should they reach their set goals, the company should fare well during the coming years.
CHECK OUT NIU’s LINE UP:
NIU RQi: The electric motorcycle we’ve been waiting for
- 100km/h (62mph) top speed
- Launch Mode for an instant acceleration boost
- Up to 120km (74 miles) range per charge
- Dual 72V removable batteries, each with 36Ah capacity
- 7.5kW peak power
- Fast charging
- Customizable dashboard display faces
- Red, silver, and green color options
This is an important model for NIU as they continue to expand with more products and include additional high performance vehicles. At €6,999 for Europe, the RQi Sport is an excellent choice for those who want the thrill of an electric motorcycle without the costly price.
NIU MQi GT EVO: The future of 125cc scooters
- 100 km/h (62 mph) top speed
- Up to 75 km (46 mi.) range per charge
- Dual 72V removable batteries, each with 26Ah capacity
- 6500W max output
- Fast charging capability
- Customizable dashboard display faces
- Orange, white, gray, and black color options in a matte finish
As you might have noticed, this beast of a scooter will reach the same speed of the RQi motorcycle, with 1kW less in motor power.
Priced at €4,999 to start in the European market, this is a performance scooter for more than city speed, and with many countries offering additional EV incentives and price reductions, NIU has wrapped a top-level specs vehicles in an affordable price.
NIU BQi-C1: An E-bike for urban cyclists
With the BQi series announcement, NIU reaffirm their commitment to electric urban mobility. From light vehicles to motorcycles, NIU is now working on its e-bike offerings with the BQi and giving more options to riders. This BQi-C1 e-bike features:
- 45 km/h (28 mph) top speed
- Up to 100 km (62 mi.) of range per charge
- 48V removable battery
- 750W max output
- Single-speed derailleur
- Class 2 & 3 e-bike (US class)
- White, glossy gray, and matte black color options
NIU KQi2 and KQi3 Max: micro-mobility solutions
The KQi2 Pro features a more personalized design with:
- 25 km/h (17 mph) top speed
- Up to 40 km (24 mi.) of range per charge
- 48V battery
- 600W max output
- Customizable deck grip tape
- White and gray color options
What really sets this scooter apart from the pack, is the option to swap out deck grip tape on the KQi2 with different colors, patterns, and styles. On the higher end of cost bracket, NIU released a new version of the KQi3: the KQi3 Max. The Max is meant to reset the standard for electric kick scooters, featuring:
- 35km/h (21 mph) top speed, depending on the region
- Up to 65 km (40 mi.) of range per charge
- 48V battery
- 900W max output
- Self-healing pneumatic tires
- Robust and highly durable build quality
- Black or gray color options with red accent
Other NIU products in the 2022 lineup
In addition to the expansion of the product offerings for electric motorcycles, scooters, and kick scooters, NIU also refreshed a beloved classic: the NQi GTS. The 2022 version of the NQi GTS got an increase to top speed of 80 km/h (50 mph) and up to 95 km (59 mi.) on the extended range model. It also features two new colors, gloss black and matte gray, in addition to the previous white with red striping color scheme.
Lastly, the YQi, an exciting new gas/electric hybrid scooter, with the goal of transitioning more riders around the world toward electric vehicles. This “gateway scooter” combines a liquid-cooled 150cc engine with an electric motor to reach a top speed of 110km/h (68 mph) and a range of 250+ km (155+ mi.)
Source: NIU, The Motley Fool
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