NIU Technologies Reports for Q1 Shows Higher Battery Costs Continue to Affect China Market While Kick-Scooters Drive Growth Internationally
NIU Technologies, a leading provider of smart urban mobility solutions, has reported its sales volume results for the first quarter of 2023. During the quarter, NIU sold a total of 94,407 units, including e-motorcycles, e-mopeds, e-bicycles, and kick-scooters. While the China market saw a decline in sales volume of 45.3% year-over-year, international markets experienced a decrease of 12.2%, with total sales volume of 12,889 units, including approximately 11,000 units of kick-scooters.
The decline in China market sales volume was mainly attributed to the continued impact of higher lithium-ion battery costs, which have been affecting the company since the second quarter of 2022. Despite the challenges, NIU’s new models have received positive responses from both the industry and customers, with the SQi winning the “Red Dot: Best of the Best” award for its groundbreaking design in the two-wheeler category. The company delivered nearly 5,000 units of SQi in total, and the UQi+ also won a “Red Dot” award for its outstanding design quality.
To further showcase its unique and strong design capabilities, NIU plans to release four to five new models starting from late April. The company is optimistic that these new products will be well received by its customers and help boost its wholesale sales.
In international markets, NIU’s kick-scooters have consistently received positive recognition for their high quality and excellent performance. Two-thirds of the kick-scooters sold in the first quarter were its most high-end KQi3 series, and the company believes that its well-recognized brand, together with its innovative design and continual expansion of product offerings, position it favorably to capture the enormous growth potential in the global market.
NIU’s Fourth-quarter and full-year financial results for 2022:
NIU Technologies reports for final results of 2022 was announced in its unaudited financial form, for the fourth quarter and full year ended December 31, 2022. For Q4, the company’s revenues decreased by 37.9% YoY to RMB 612.3 million. Meanwhile, the net loss for Q4 was RMB 37.1 million, compared to a net income of RMB 47.6 million in the same period of the previous year.
The number of e-scooters sold during the quarter was 138,279, down 41.9% YoY. The number of e-scooters sold in China was 118,065, down 42.5% YoY, while the number of e-scooters sold in international markets was 20,214, down 38.7% YoY. However, the company managed to maintain a gross margin of 22.5% in Q4, compared with 22.6% in the same period of last year.
For the full year 2022, NIU’s revenues decreased by 14.5% YoY to RMB 3,168.6 million. The net loss for the year was RMB 49.5 million, compared to a net income of RMB 225.8 million in 2021. The number of e-scooters sold during the year was 705,954, down 22.3% YoY. Meanwhile, the number of franchised stores in China was 3,102 as of December 31, 2022. The international sales network consisted of 53 distributors covering 52 countries.
Dr. Yan Li, Chief Executive Officer of the Company, stated, “We have been strategically focusing on premium and mid-end segments since mid-2022. Despite the external challenges in the fourth quarter of 2022, we were pleased to see our new UQi+ ranked as No.1 best-seller in electric scooter category on Taobao during the double 11 shopping festival. Although we still face uncertainties and pressures on recovery of consumer sentiment, we are confident that our domestic sales will return to the growth track in 2023 with the launches of new products in the coming months.”
Regarding overseas markets, Dr. Li said, “We continued to expand our kick-scooter product offerings by introducing our KQi Youth series. We sold over 100 thousand units of kick-scooters in 2022. In January 2023, we were awarded the Rider’s Choice Award as the Best Scooter Company, presented by Micromobility World. Winning the Rider’s Choice Best Scooter Company award was a validation of our commitment to provide customers around the world with convenient and environmentally friendly smart electric scooters for urban mobility. We also started to deliver our first e-bike BQi C3 Pro in November 2022. We believe that, leveraging our well-recognized NIU brand and diverse product portfolio, and riding on the mega trend of transition from fuel to electricity in mobility vehicles, there will be great opportunities ahead of us.”
NIU’s sales volume report for the first quarter of 2023 may have declined compared to the same period last year, but the company remains confident in its ability to capture the enormous growth potential in the global market. With its well-recognized brand, innovative design, and continual expansion of product offerings, NIU is well-positioned to meet the evolving demands of urban mobility solutions.
The company’s recent recognition for outstanding design quality and plans to release new models further demonstrate its commitment to meeting the needs of its customers. While there may be short-term challenges, NIU’s long-term outlook remains positive.
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