Niu Technologies Provides Second Quarter 2021 E-scooter Sales Volume Update

Rhea-AI Summary

Niu Technologies (NASDAQ: NIU) announced its Q2 2021 e-scooter sales results, with total sales reaching 252,998 units, marking a 58.0% year-over-year increase. The China market saw sales of 246,018 units (up 58.8%), driven by new product launches and retail expansion, adding 450 new stores. International markets contributed 6,980 units (up 34.8%), rebounding from COVID-19 challenges. However, the sales mix included a significant portion of lower-margin models, negatively impacting overall gross margins.

Positive

• Q2 2021 e-scooter sales reached 252,998 units, a 58.0% year-over-year growth.
• Sales in China rose to 246,018 units, reflecting a 58.8% increase.
• Retail network expanded by 450 new stores, totaling 2,366 stores in China.

Negative

• Sales mix included a high proportion of lower-margin models (G0 and F0), negatively affecting gross margins.

BEIJING, July 06, 2021 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today provides its e-scooter sales volume results for the second quarter 2021.

	2Q 2021		2Q 2020		1H 2021		1H 2020
China Market	246,018		154,959		390,672		189,275
International Markets	6,980		5,179		11,975		11,023
Total	252,998		160,138		402,647		200,298

In the second quarter of 2021, NIU sold 252,998 e-scooters, representing a 58.0% year-over-year growth.   The number of e-scooters sold in China market reached 246,018, representing a 58.8% year-over-year growth. The number of e-scooters sold in the international markets reached 6,980, representing a 34.8% year-over-year growth.   The volume is compared on a year-over-year basis instead of on a quarter-over-quarter basis due to strong seasonality in e-scooter market.

The growth in China market was mainly driven by new products launch and retail network expansion. The Company launched four new products, F0, F2, F4 and C0 models in April 2021, out of which, F0 and F2 models have been mass produced and delivered in the second quarter 2021. The two models were welcomed by our customers and contributed to the sales volume growth. The Company continued fast retail network expansion and added 450 new stores in China during the second quarter 2021. There were 2,366 NIU stores in China at the end of June.

The growth in the international markets was mainly driven by recovery from COVID-19, especially in Europe and North America markets. The delivery, however, was affected by the continued challenging environment for international shipping.

Out of the total sales volume, the units of G0 and F0 models sold during the second quarter 2021 represented approximately 30.4%. The G0 and F0 models have lower sales price and gross margin compared with other models, and high proportion of sales volume from these models has negative impacts on the blended revenues per scooter and overall gross margin for the second quarter 2021.

Our sales volume count disclosed above is based on the delivery from our manufacturing facility, which may vary slightly from the sales volume measured from financial accounting and reporting point of view. NIU’s sales volume represents only one measure of the company’s financial performance and should not be relied upon as an indicator of quarterly financial results, which depend on a variety of factors, including revenues from accessories, spare parts and services, cost of sales, operating expenses, etc.

About NIU

As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric bicycles, motorcycles and kick-scooters. NIU has a product portfolio consisting of eight series, four e-scooter series, including NQi, MQi and UQi with smart functions and Gova, two urban commuter electric motorcycles series RQi and TQi, a performance bicycle series, NIU Aero, and a kick-scooter series. Different series of products address the needs of different segments of modern urban residents and resolve the demands of different scenarios of urban travel, while being united through a common design language that emphasizes style, freedom and technology. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to offer the products and services. For more information, please visit www.niu.com.

Safe Harbor Statement

This press release contains statements that may constitute forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as NIU’s strategic and operational plans, contain forward-looking statements. NIU may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIU’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIU’s strategies; NIU’s future business development, financial condition and results of operations; NIU’s ability to maintain and enhance its “NIU” brand; its ability to innovate and successfully launch new products and services; its ability to maintain and expand its offline distribution network; its ability to satisfy the mandated safety standards relating to e-scooters; its ability to secure supply of components and raw materials used in e-scooters; its ability to manufacture, launch and sell smart e-scooters meeting customer expectations; its ability to grow collaboration with operation partners; its ability to control costs associated with its operations; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIU’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and NIU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Niu Technologies
Jason Yang
Investor Relations Manager
E-mail: ir@niu.com

FAQ

What were Niu Technologies' e-scooter sales figures for Q2 2021?

In Q2 2021, Niu Technologies sold a total of 252,998 e-scooters, a 58.0% increase from the previous year.

How did the China market perform in Q2 2021 for Niu Technologies?

Niu Technologies sold 246,018 e-scooters in the China market during Q2 2021, up 58.8% year-over-year.

What percentage growth did Niu Technologies see in international markets in Q2 2021?

Niu Technologies' international markets grew by 34.8% in Q2 2021, selling 6,980 e-scooters.

What factors contributed to Niu Technologies' sales growth in the second quarter of 2021?

The sales growth was driven by product launches, retail network expansion, and recovery from COVID-19 in international markets.

How did the sales mix impact Niu Technologies' gross margins in Q2 2021?

The sales mix included a high proportion of lower-margin models, negatively impacting overall gross margins for Q2 2021.