In This Article:
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Total Sales Volume: 312,000 units, up 17.5% year-over-year.
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China Sales Volume: 259,000 units, up 12.4% year-over-year.
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Overseas Sales Volume: 53,000 units, up 50% year-over-year.
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Total Revenue: RMB1.02 billion, up 10.5% year-over-year.
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China Revenue: RMB880 million, accounting for 86% of total revenue.
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Overseas Revenue: RMB144 million, accounting for 14% of total revenue.
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Gross Margin: 13.8%, down 7.6 percentage points year-over-year.
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Net Loss: RMB41 million, with a net loss margin of 4%.
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Cash and Investments: RMB1.3 billion.
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CapEx: RMB41 million, reflecting an increase of RMB14 million year-over-year.
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Guidance for Q4 Revenue: Expected to be in the range of RMB622 million to RMB718 million, an increase of 30% to 50% year-over-year.
Release Date: November 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Niu Technologies (NASDAQ:NIU) reported a 17.5% year-over-year increase in total sales volume, reaching 312,000 units in Q3 2024.
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The company achieved a significant 50% year-over-year increase in sales volume in the overseas market, totaling 53,000 units.
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Total revenue for Q3 2024 was RMB1.02 billion, marking a 10.5% increase compared to the same period last year.
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Niu Technologies (NASDAQ:NIU) successfully expanded its sales network by adding 240 new stores in Q3, despite it being a traditionally slow period for store openings.
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The company introduced several new products, including the NX and FX series, which contributed to over 50% of total units sold in 2024.
Negative Points
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The introduction of a new standard on battery electric system safety in China led to a significant reduction in sell-in orders from factory to distributors in September.
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The average selling price (ASP) in China decreased by 12% quarter-over-quarter due to a shift in product mix and compliance with new safety standards.
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Gross margin for Q3 2024 was 13.8%, a decline of 7.6 percentage points year-over-year, impacted by increased US tariffs and promotional sales.
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The company reported a net loss of RMB41 million for the third quarter, with a net loss margin of 4% under GAAP accounting.
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The overseas scooter ASP decreased significantly due to a shift in product mix and discounts on older models, impacting overall revenue.
Q & A Highlights
Q: We have seen the domestic average scooter sales price per unit dropped quarter-over-quarter. Considering the release of the new national standard, how do you expect the trend of domestic average selling price? A: Yan Li, CEO: We expect the average selling price (ASP) per unit to increase with the new standard coming into effect. The new standard requires the use of new materials, which will likely drive up the ASP.