Niu Technologies Announces Third Quarter 2020 Financial Results

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Rhea-AI Summary

Niu Technologies (NASDAQ: NIU) reported strong financial results for Q3 2020, with a 36.7% increase in revenues, reaching RMB 894.5 million. The total volume of e-scooter sales surged 67.9% year over year, with 250,889 units sold. Net income rose to RMB 80.0 million from RMB 66.4 million last year. However, gross margin decreased to 20.9% from 22.2%, attributed to sales promotions and a higher share of lower-priced models. The company anticipates launching the new Gova product in Indonesia, signaling growth opportunities.

Positive

Revenue increased by 36.7% year over year to RMB 894.5 million.
Net income rose to RMB 80.0 million, up from RMB 66.4 million last year.
E-scooter sales volume increased by 67.9%, totaling 250,889 units.

Negative

Gross margin declined to 20.9%, down from 22.2% year over year.
Revenue per e-scooter decreased by 18.6%.

11/23/2020 - 02:00 AM

-- Third Quarter Total volume of e-scooter sales up 67.9% year over year

-- Third Quarter Revenues of RMB 894.5 million, up 36.7% year over year

-- Third Quarter Net income of RMB 80.0 million, compared with RMB 66.4 million in the third quarter of last year

BEIJING, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced its financial results for the third quarter 2020.

Third Quarter 2020 Financial Highlights

Revenues were RMB 894.5 million, an increase of 36.7% year over year
Gross margin was 20.9%, compared with 22.2% in the third quarter of last year
Net income was RMB 80.0 million, compared with RMB 66.4 million in the third quarter of last year
Adjusted net income (non-GAAP)¹ was RMB 90.6 million, compared with RMB 72.5 million in the third quarter of last year

Third Quarter 2020 Operating Highlights

The number of e-scooters sold reached 250,889, up 67.9% year over year
The number of e-scooters sold in China reached 245,293, up 70.2% year over year
The number of e-scooters sold in the international markets reached 5,596, up 6.3% year over year
The number of franchised stores in China was 1,266, an increase of 182 since June 30, 2020
International sales network expanded to 36 distributors covering 46 countries

Dr. Yan Li, Chief Executive Officer of the Company, commented: “We are very pleased to see the strong sales growth in China during the third quarter. Our China sales volume increased by 70% year over year driven by new products launched earlier this year and retail network expansion. Our international sales were affected by rebound of COVID-19 and sales volume grew by 6% only. We are working closely with our international distributors to mitigate the impact in order to bring our sales back to fast growth track. Our gross margin declined to 20.9% mainly due to sales promotions and higher proportion of sales from G0 model which has lower sales price and gross margin than other models. However, with the continued cost optimization efforts, we expect our gross margin to improve.”

Dr. Li continued, “In the fourth quarter, we plan to launch our new Gova product in Indonesia market. The marketing campaign and pre-sales will start from December. We are very excited about the growth prospective of Indonesia market and plan to expand our product portfolio and retail sales network in the next few years.”

Third Quarter 2020 Financial Results

Revenues were RMB 894.5 million, an increase of 36.7% year over year, due to higher sales volume of 67.9%, partially offset by decreased revenues per e-scooter of 18.6%.

Revenues
(in RMB million)

2020
Q3

2019
Q3

% change
YoY

E-scooter sales from China market

740.8

532.1

+39.2%

E-scooter sales from international markets

59.6

44.1

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