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The company does not assume any obligation to update any forward looking statements except as required by law. Our earnings press release and this call included a discussion of certain non GAAP financial measures. Press release contains a definition of non GAAP financial measures a reconciliation of GAAP to non GAAP financial results. On the call with me today are our CEO, Doctor. Yan Li and CFO, Ms. [indiscernible] Now let me turn the call over to CEO, Yan.
11m 43s
You, Crystal. Hello, everyone. Thank you for joining us today. In the first quarter of twenty twenty five, we achieved a total sales volume of 203,000 units. Marking a significant 57.4% year over year growth. Behind the strong performance was a 66% year over year increase the sales volume in the China market 6.4% year over year growth in overseas market. Total revenue for the first quarter reached to RMB $682,000,000, reflecting a 35% increase compared with same period last year. The gross margin rebounded to 17.3% with 4.9% year over year increase. Primarily driven by the pump cost reduction in product platformization component standardization and procurement cost improvement. The performance in Q1 twenty twenty five has set a tone for the rest of the year underlying our drive for high volume and revenue growth. As well as the profitability improvement. Taking a closer look at our performance in China, sales volume reached to 83,000 units in this quarter. Our focused product portfolio strategy emphasized on technology innovation and expanding sales channels. As well as targeting marketing strategy for the key drivers to the strong domestic performance. In Q1 twenty twenty five, maintain our focus in our key product strategy of N, N, U and F series.
13m 16s
We enhanced our existing products through upgrading and refining our product portfolio. Led to optimize product mix and offer our customers even more enjoyable writing experience. Additionally, we step up our motorcycle offerings introduce model like NX, NL, and FX. The expansion diversify our electric motorcycle range and help to broaden our sales channel. First, we successfully launched a comprehensive range of electric mode motorcycles. Including the SNL and FX series. Spending price range from RMB 4,000 plus to over RMB 10,000. Each model features significant enhancement in functionality and smart technologies, aligning with our new performance and safety standard. Those additions have significantly expanded our electric motor [indiscernible] Offering consumers a more diverse options for reinforce our position as premium brand the electric two wheeler sector. So, diving into detail of each product, on March 21, we first launched the NX Pro, motorcycle priced at RMB9999 positioning at the champion among the sub 10,000 electric motorcycles. It's equipped with 72 volts, 42 amp hour high energy [indiscernible] offering a range of over 90 kilometers on one charge. Powered by a motor with a peak power of six kilowatts under a boost mode, It hits the top speed of 80 kilo per hour and accelerates from zero to 50 in just five point four seconds.
14m 57s
The eight amp power intellect intelligent fast charging system allows for full charging in only five hours. The NX Pro received around 2,000 pre orders and set a sales record on a platform like DouyinJD.com and Tmall on its launch date. This model has established itself as a pioneer in the high end two wheel motorcycle market reinforced Niu's reputation for high performance [indiscernible] speed and innovation. It significantly boosts our presence in the premium electric mono type of sigma We also launched our entry level NL, the smart electric motorcycles. Key upgrade include a large footboard, extended seats and expanded storage compartment comes equipped with advanced intelligent features such as full color display, [indiscernible] as well as Okay Go and Go ZZ technologies. Powered by a 2,000 watts peak power motor, the average top speed of 55 kilometer per hour include the TCS as the standard features. Priced at RMB 4,799, the offers a compelling combination performance smart technology and affordability. We also expand our F Series with the FX Pro, FX Sports and FX CD completing the S Series product lineup on the motorcycle side. Their full aggressive design, those models now come with the enhanced features such as full color TFT display, expanded battery compartments, offering options of 72 volt 42 amp power lithium batteries or 72 volts 35 amp power.
16m 41s
The acid batteries those models delivered 45 increase in the top speed and 7572% boost in the peak input power. The s series also feature dual channel ABS and magic wheel, which significantly enhance playability and ease of the operation. Establishing F Series as a performance powerhouse. We launched the F Series on May 13 cross platform such as Tmall, JD, and DOE. This series is set for delivery starting in Q2. Now besides the electric motorcycles, we have also integrated those technologies into our electric electric bicycle lineup, elevating the categories with innovation technologies, We start with the popular signature electric bikes models such as [indiscernible] [indiscernible] Those approach brings a premium electric motorcycle experience to the electric bicycle. Categories. NXT launched on the March 21 stands out as the first lap electric bicycle equipped with dual channel ABS, a 12 inch full disc molar, and a standard boost launch mode. [indiscernible] Those investments have made a high favorite choice among the consumers. Setting a new benchmark in the electric bicycle market. Now we also unveiled two new models under the M series targeting the female users, the MT and MFT. The MT stands out with ultra compact design, a vibrant color options, and user friendly features like gopico systems.
18m 19s
Making it especially suitable for female users seeking convenience and style. [indiscernible] embrace the iconic M Series design with fresh colorful aesthetics, and a comfortable riding experience tailored to a diverse preference of Gen Z female users. As product lining like targeting those demographics the M series accounted for an impressive 32% sales. In Q1. Reinforcing its appeal and market success. Now in Q1, our strategic emphasis on standardizing those key product platforms [indiscernible] The enhanced R and D process and also reduced our bond cost contributing a significant improvement of our gross margin in the China market. The positive impact is evident in Q1 twenty twenty five. Besides the product, we also roll out a series of features in smart technologies, such as a full function five inch TFT display, the magic wheel, all those focusing on seamless driving experience, AI smart control assistance, and AI smart eco ecosystem features. Also in terms of driving safety, we have partnered with ScalzoMap to develop industry pioneer data driven dynamic safety warning system [indiscernible] plant spot warning a real a real vehicle approach warning that AI piloted traffic light navigation, This has already been implemented in our new NX NXT models, with more advanced feature to be released in Q2 and Q3 this year.
19m 58s
We're aiming at a significant enhanced ride safety and uplifting overall ride experience for our customers. Now, in last quarter, we also continued to enhance our brand new influence of our products among the target customer groups, especially the premium consumers and Gen Z writers. On March 21, the launch of our MX Pro was marked by strategic partnership with the renowned gaming Game four Peace. This collaboration introduced the Niu Cup racing tournament within the game, which quickly topped the trending list on platform like Weibo, Douyin and Xiaopengshu. So The advertising campaign spend over a 15,000 placements across 60 major cities, targeting prominent landmarks, key business districts in the subway systems, and office building elevators garnering over 2,400,000,000 views. Also, on May 13, we debut our electric motorcycle matrix product targeting the premium users and Gen Z users. [indiscernible] and also the FF series. The launch become a milestone in 2025. With staffing sales of over RMB 100,000,000 sales in just first five hours, and the volume of 10,000 units plus. Lastly, in terms of channel expansion, we continue our previous strategy with strong focus on penetrating the previous underrepresented market in China strategically expanding our retail footprint to ensure our product reaching a broader consumer base.
21m 33s
Have expanded our resell footprint by opening about three eighty four new stores in Q1, with significant focus on tier three and tier four cities, accounting for 50% of new opening stores. The strategic expansion refine our distribution network and also pave the way for up launch of electric motorcycles product. In Q2. Now additionally, our online presence has been strengthened with [indiscernible] across multiple online channels. Such as our our official brand accounts, the localized accounts, regional localized account, also the hundred plus store accounts. Multi tier strategy has hosted about 10,000 live broadcasts. Generating four thirty million views, marking a 6x increase compared with Q1 twenty twenty four last year. This has significantly boost our online visibility and customer interactions contributing about 100,000 units sales, representing 60% of our total sales volume. Now let me turn into the overseas market. In the overseas market in Q1 twenty twenty five, the sales volumes reached to 20,000 units. Within overseas market, we're focused on electric two wheeler market, which is the electric two wheeler mopeds and electric motorcycles. The electric tool in the market achieved over three x increase to the readiness we put in place on the direct distribution operation in those key countries such as Germany, Italy, France.
23m 4s
And those direct operations contributed more than 50% of sales in q one. Now with the logistic financing CRM system, also the underground team have really built the operation in those key countries and accelerated in our network expansions. By end of Q1 twenty twenty five, the number dealers in those direct distributed regions have increased from 120 to 180 dealers, projection to reach about to two fifty dealers by mid-twenty twenty five exceeding our initial forecast. We have also introduced the full line of electric two wheeler products, spanning from 50 cc equivalent [indiscernible] to 125 cc equivalent L3E models. As well as the off road motorcycles. Those products are priced between €2,000 to €4,600 catering to a diverse consumer needs. Now the first batch of new product was shipped in q one twenty twenty five and now it's in stopped in local warehouse. Ready for the peak season sales in q two. Now with those full lineup of electric tooler products, specifically electric motorcycles, motorcycles, motorcycles, and also the direct distribution operation in place we anticipate exponential sales growth targeting three to 5x increase in 2025 with Q1 as the early indicator of such growth. Now the fast growth in the electric two wheeler sectors was a direct distribution region sales anticipate accounting for 60 to 80% sales.
24m 46s
Contribute significantly in our profit profitability turnaround in the international market. Now for the micro mobility market for the international markets such as the kick scooters and also the e bikes. Q1 twenty twenty five the underperforming quarter with nearly flat volume growth and delayed profit profitability turnaround due to the tariff situation The U. S. And also the inventory play out in Europe. Europe, our Q1 sales focused on sales out of our out of inventories. Hence have impact of gross margin and profitability. Those other inventory impacts will continue partially into Q2, but we expect to be minimized those by Second Half Of This Year. Now In The U. S, due to the uncertainties around the tariff situation, we deliberately hold back the sales of existing inventories in The U. S. Market in Q1. [indiscernible] We have implemented price increase in online channels in Q1 and negotiated offline channel for price increases to be effective in late Q2 and early Q3. Now for the supply to The U. S. Market, our manufacturing in Southeast Asia have already dispatched our first deliveries in late Q1 twenty twenty five taking advantage of the 10% tariff window. The shipped product has not been reflected in the sales yet.
26m 13s
No. Are carefully watching the tariff situation. However, with the negotiated price increases, and the inventories prior to the tariff type, we expect to regain profitability for the second half in twenty twenty five for The U. S. Micro mobility market. Now overall, we remain optimistic with about the China market in Q2 twenty twenty five, building on strong foundation in product channel development, and also the brand momentum. This has already produced the positive initial results in Q1. On the product side, we'll continue to focus on product portfolio around our core N, N, U and F series. The launch of newly upgraded N and F series in Q2 is expected to elevate our brand attractiveness and recognition within the high premium consumers and the Gen Z customers. Simultaneously, the launch of motorcycle product has diversified our product [indiscernible] offering consumers a wide array of options Also, we have moved up the launch of a new product in Q2 to May 13, right before the China top sales season of June 18. To take advantage of this. Now we'll continue to expand our sales channels, expanding expecting to adding another 300 to 400 stores in Q2. The channel expansion will drive sales growth, but also shows the sign of channel momentum turnaround this year.
27m 36s
Now lastly, we'll continue to improve our gross margin as a result ratio via product optimization in Q1. And finally, we have worked diligently to modify our current product lineup to create new design styles to cope with the new electric bicycle standard in China to be in place in September. Have a solid product lineup in development ready to be in the market by the Now looking looking at the international market, with the trend we observed in Q1 and early Q2, we anticipate a steady growth in the overseas market and turnaround profit losses year. In the electric cooler market, a complete product portfolio and established direct distribution operations, we anticipate a hyper growth in both revenue and profit contribution. The sales growth we saw in Q1 is a testament this foundation we have built. In the following quarters, our focus will be on expanding the direct distribution operation as it yield a higher contribution margin. For the micro mobility market, even with the turmoil on the tariffs, have started off the return of route signs from profitability perspective. The clearing out of the outstates inventory in Europe, has also the clarity with The U. S. Tariff situation, expect to rebound with the moderate growth and a significant improvement in the profitability.
29m 1s
Now, I'll turn over to our CFO, Fian Zhou, to talk about the financials.
29m 5s
Thank you, Yan, and hello, everyone. Please note that our press contains all the figures and comparisons you need we have also uploaded the Excel format figures to our IR website for your easy reference As I review our financial results, I'm referring to the first quarter figures unless I say otherwise. And all mandatory figures are non GAAP, not specified. As Yan just mentioned, our total sales volume for the first quarter was 203,000 units, up 57% compared to the same period of last year 183,000 units were sold in China while the remaining 20,000 was sold overseas. Total revenue for the first quarter amounted to $682,000,000 an increase of $177,000,000 or 35% compared to the same period of last year. The China revenues were $6.00 8,000,000 accounting for 8089% of the total revenues. Of this, the scooter revenue were $546,000,000 a year over year increase of 39%. This increase was mainly due to the increase in sales volume and partially offset by a decrease in revenue per e scooters. China scooters ASP was down to nearly RMB 3,000.
30m 30s
This decline in ASP was primarily attributed to a shift in product mix The notable increase in sales volume of high end lead acid models as mentioned in the previous quarters last year has led to a more concentrated retail price range from RMB3000 to RMB7000 And the overseas revenue was 74,000,000 representing 11% of the total revenue scooter revenues including electric motorcycles, mopas, kick scooters and e bikes amounted to 60,000,000 up from $49,000,000 in the same period of last year. And this growth was driven by stronger international demand for electric motorcycles and mopeds which mount higher retail price and the premium pricing of this product also contribute to a year over year increase in the overseas scooter ASP rising from RMB $20,002,577 7 to RMB 2,916. 2. And revenue from accessories, spare parts and services amounted to 76,000,000 a 20% increase compared to the same period of last year due to the increase in the spare parts sales in both China and overseas markets The gross profit for the first quarter exceeded 118,000,000 marking a significant improvement compared to RMB96 million dollars during the same period of last year. And the gross margin was seventeen point three percent one point six ppt lower than the same period of last year.
32m 13s
But 4.9 ppt higher than the previous quarters. The domestic market gross margin improved due to the successful cost reduction initiatives which increased the overall GMV by 1.2 ppt. However, the overseas kid scooters margins dragged down the total gross margin by 2.8 ppt, primarily due to the three factors: the impact of 25% of The U. S. Tariffs implemented last June Elevated freight cost and aged inventory write downs. The operating expenses for the first quarter were $105,000,000 remaining flat compared to the same period of last year However, the OpEx ratio declined significantly from 32.7% to 24.2%. Selling and marketing expenses rose by $9,000,000 year over year to $150,000,000 driven by a higher staff cost, advertising and promotional activities and rental expenses. Selling and marketing expenses, accounted for 16.8% of revenue down from 20.9% in the first quarter of twenty twenty four.
33m 35s
R and D expenses increased by $1,000,000 year over year to 30,000,000 primarily due to the higher staff costs and share based compensation. The R and D expenses as a percentage of revenue is 4.4% compared to 5.7% in the first quarter of twenty twenty four. G and A expenses decreased by $10,000,000 year over year to 21,000,000 largely attributed to the foreign currency exchange gains. And G and A expenses as a percentage of revenue was 3%, a notable reduction from 6.1% compared to last fourth quarter in 2024. The fourth quarter, we had a net loss of RMB39 with a net loss margin of 5.7% under the GAAP accounting compared to net loss of $55,000,000 with the net loss margin of 10.9% for the same period last year.
34m 38s
The adjusted net loss was RMB31 million with an adjusted loss margin of 4.6%. And turning to our balance sheet and cash flow, we ended the quarter with RMB RMB900.0 63,000,000 versus RMB 1,100,000,000.0 last year. In cash, restricted cash, term deposit and short term investments, and our operating cash outflow amounted to $154,000,000 The OpEx for the first quarter amounted to $24,000,000 reflecting an increase of $3,000,000 compared to the same period of last year This can be attributed primarily to an increase in the opening of new stores in China. Now let's turn to guidance.
35m 26s
We expected the second quarter revenue to be in the range of 1,300,000,000.0 to RMB 1,400,000,000.0. An increase of 40% to 50% year over year. Please be aware that this outlook is based on the information available as of the date and reflects the company's and preliminary expectation, which is subject to change due to the uncertainties relating to various factors And with that, we'll now open the call for any questions that you may have for us. Operator, please go ahead. [indiscernible] Thank you.
36m 19s
Roster.
36m 23s
We will take our first question And the first question comes from the line of Kyle Wu from Citi Research. Please go ahead. Your line is open.
36m 35s
Thank you, operator. Hi. This is Kyle from Citi. Thanks for taking my questions. I have two questions. First is about the SARS volume guidance. At the year beginning, we guide 2025 full year sales volume to be 30% to 50% year on year growth. To which to maintain this volume guidance, Second is about the margin. What's our margin outlook for the upcoming quarters of this year? And also, do we still expect second quarter to see net profit turnaround? Thank you. Let me take the first one. In terms of guidance for the volume, we haven't reached we have not changed the guidance I think we're on the path. Okay.
37m 20s
For the gross margin annually, actually last year, our overall gross margin was only 15.2% overall. And for sure, this year, the annual gross margin will be recovered from 15% And for the second quarter this year, we still expected that we will get the profit from the net margin So [indiscernible] is the positive expectation for us.
37m 54s
Okay, thank you.
38m 8s
We will take our next question And the next question comes from the from Yatin Chen from CICC. Please go ahead. Your line is open. Hello? I have one question.
38m 23s
I have seen that the average selling price decreased the quarter over quarter in Q1. But the gross profit margin improved significantly quarter over quarter. So, I'd like to know what is the main reason and what is the outlook for average selling price in subsequent quarters? This is my question. Thank you.
38m 49s
Okay, I'll take this question.
38m 52s
Actually, this quarter, the ASP, especially the China ASP dropped. Due to we launched the new models from starting from last year, the launch date of our new models, especially the flagship models varies each year. For instance, the retail price of MT2025 model is this is our this quarter's best seller. The price range from RMB nearly RMB4000 to RMB 5,000. Whereas last year, we launched the NXT in last Q1. This is our last year's top seller. And the price between RMB6000 around 12,000 So the launching date of our new models [indiscernible] quarter, this ASP will smooth if we're looking forward to the next to the following quarters, especially the [indiscernible] as we just explained to the market that the ASP will remain almost the same compared to last year. Or change a little bit within the single digit digital change. For the second quarter, after this year, actually, we expected the ASP especially in the domestic markets will recover compared to the Q1 this year. [indiscernible] concentrate it. Actually, the model's retail price were concentrated in the range from RMB3000 to RMB7000 So the ASP will rebound from this quarter's RMB 3,000 to around RMB 3,000 RMB3500 ASP in the domestic market.
40m 53s
So this is our expectation in the quarter two ASP. And as to the gross margin recovered, as I just explained, that this quarter's gross margin recovered, especially from the our domestic schoolers cost reduction. Since last Q4, we see a dramatic we see a dramatic gross margin drop down. Due to our light assets motorcycles and mopeds in the domestic market [indiscernible] more than 40% of our sales volume which are 3% to 5% gross margin lower than the same year in the recent Mayan one. And we began to change [indiscernible] smart function platform and also the R and D platform and also the cost reduction from the raw material. And this quarter, we saw the the benefit from the cost reduction in the domestic market. And in Q2, we think the gross margin will remain at this level, but will change a little bit. Due to the product mix in the domestic market. We'll now go back to lower than 15 as last year. Showing the figures. This is the gross margin and ASP for this year's explanation.
42m 44s
You very much. That's all my questions.
42m 50s
Thank you.
42m 59s
We will take our next question And the question comes from the line of Michael Simmons from Global View SA. Please go ahead. Your line is open.
43m 8s
Thank you. Yes. It's Michael here, Michael Simmons.
43m 11s
Doctor. Lee, perhaps I can just ask you a little bit about balance sheet. I think it's the cash position is kind of come down a little bit. Given what you've just been talking about, and it sounds like the second quarter is looking quite good, how do you think the cash position the net cash position is going to look at the end of the year?
43m 35s
Well, each year, the quarter one is the cash position is the lowest. Since it's the Chinese New Year, we need to clear out all the advance to the suppliers. The accounts payable and also the notes payable to the bank. So if you're looking back to 2024 and 2023 each year, the fourth quarter cash balance is the lowest during the whole year.
44m 3s
At the end of this [indiscernible] actually we expected the cash position will grow up starting from quarter two. Since the peak season falls in the domestic market and the overseas market is coming. And we give a high speed sales volume increase aligned with the revenue increase. And this will brought us the operating cash flow inflow starting from quarter two And we didn't expect a large CapEx for the for the furniture and equipment and also the stores opened So overall, we think the cash position at the end of this year will be higher than the December.
45m 4s
Great. Thank you.
45m 9s
Thank you. We will take our next question Your next question comes from the line of Zayan Wanyan from Surferral Capital. Please go ahead. Your line is open.
45m 22s
Okay. This is Daniel from CFI Capital, and I have only one question. Regarding overseas business. Why it's good as we know that why scooter revenue has been negatively by tariffs. Electric motorcycle sales has shown growth. How should we interpret the growth rate target for overseas operations under this these circumstances? Thank you. I think for the overseas growth rate, we remain to be we really changed throughout our forecast for this year. I think even at the last quarter, we we talked about the last year results and even the forecast of this year, we know that our electric tool or the electric motorcycle market the growth rate will be quite high because they start with actually, you know, last year when they did about 3,000 plus units of electric motorcycles. And then during our peak time, we actually did a, you know, close to, you know, way above 20,000 units. So we look at, you know, [indiscernible] starting from 3,000 units last year, look at fast, really a hyper growth this year. Looking at somewhere at least 5x to 6x growth. On the electric motorcycle side. On the on the the which you know on the Q1 quarter one, where you see a 3x growth there.
47m 1s
On the micro mobility, basically the kick scooters, So, we The US tariff really started impact us last year when our tariff actually increased to 25% on May 30 post May. So that already have the impact on our Kickstuders Business. So We Actually Start To Relocating The Manufacturing Base From China to Southeast Asia to try to cope with that 25% tariff where back then in Southeast Asia, was a 0% tariff. So, I mean, this quarter, Q1 this year, you know, we see you know, this tariff goes in the Southeast Asia tariff went up to 10%, but the China's actually went up significantly. So we actually consciously made adjustments saying by holding off the sales for The US market. You look at the entire year, think the demand there with our Southeast Asia manufacturing base in place also with how we negotiate the price increase with the key U. S. Retailers like Best Buy, Walmart, I think we should be able to see that business goes as normal as what we expected at the beginning of the year. But overall, I think our with the micro mobility both on The US, Europe, I think our T3 footprint are U. S. Market well, the entire North American market, basically U. S. And Canada, and also the European market as well as some of the Australian market, New Zealand market.
48m 44s
You know, we expect moderate growth, we don't expect that business grow at 2x or something. We really expect a simple double digit growth and with the key goal is actually a [indiscernible] I think if you look at this two international market segments, with the electric motorcycle, I think it's a hyper growth with [indiscernible] profitability contribution. And on the [indiscernible] mobility market, you really should expect this moderate growth But with the key focus on turning around from a profit loss to a profitability business unit.
49m 32s
Thank you.
49m 35s
There seems to be no further questions. I would like to hand back for closing remarks.
49m 45s
All right. Thank you, operator, and thank you all for on today's call and for your support. We appreciate your interest and looking forward to reporting to you again next quarter on our progress. Thank you.
49m 57s
This concludes today's conference call. Thank you for participating. You may now disconnect.
Key Insights
NIU reported Q1 2025 sales volume of 203,000 units, up 57.4% year-over-year, with China sales up 66% and overseas sales up 6.4%; total revenue reached RMB 682 million, a 35% increase YoY, and gross margin rebounded to 17.3% (up 4.9 ppt YoY) due to cost reductions and product standardization.
The company launched several new electric motorcycle and bicycle models, including the NX Pro and NL series, targeting both premium and entry-level segments, and expanded its product portfolio to appeal to Gen Z and female users; the M series accounted for 32% of Q1 sales.
NIU expanded its retail footprint in China by opening 384 new stores in Q1 (50% in tier 3/4 cities) and strengthened its online presence, with online sales contributing 60% of total sales volume.
Overseas, Q1 sales reached 20,000 units, with direct distribution operations in key European countries driving over 50% of sales; the company anticipates 3-5x sales growth in overseas electric two-wheeler markets in 2025 and expects direct distribution to contribute significantly to profitability turnaround.
For Q2 2025, NIU guides revenue of RMB 1.3-1.4 billion (up 40-50% YoY), expects gross margin to recover above last year’s 15.2%, anticipates a net profit turnaround, and projects cash position to improve in the second half of the year; full-year sales volume guidance remains at 30-50% YoY growth.
