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Niu Technologies Announces Unaudited Third Quarter 2024 Financial Results

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— Third Quarter Revenues of RMB 1,023.9 million, an increase of 10.5% year-over-year

— Third Quarter Net Loss of RMB 40.9 million, compared to Net Loss of RMB 79.4 million in the same period of last year

BEIJING, Nov. 18, 2024 (GLOBE NEWSWIRE) — Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Third Quarter 2024 Operating Highlights

Dr. Yan Li, Chief Executive Officer of the Company, remarked, “Our Q3 sales growth fell short of expectations, primarily due to recent policy changes in China that have impacted sales timing. Nevertheless, our retail sales momentum remains strong, and our upcoming product lineup fully complies with the new standards, positioning us to navigate these changes effectively. In the electric motorcycle segment, the launch of the NX Hyper marks a significant milestone, showcasing our commitment to performance and innovation.”

Dr. Li continued, “We continue to maintain a rapid pace of new store openings this year, laying a solid foundation for driving future sales growth. Earlier this month we continued our annual presence at Milan EICMA where we introduced a range of new scooters highlighting our advanced design capabilities and innovative technologies. Those models will be available in the EU and the US in the coming weeks. Overall, we are well-equipped to embrace changes and are confident in our ability to deliver strong performance in the future.”

Third Quarter 2024 Financial Results

Revenues were RMB 1,023.9 million, an increase of 10.5% year-over-year, mainly due to an increase in sales volume of 17.5%, partially offset by a decrease in revenues per e-scooter of 6.0%. The following table shows the revenue breakdown and revenues per e-scooter in the periods presented:

Revenues
(in RMB million)		   2024
Q3		   2023
Q3		   % change
YoY
E-scooter sales from China market   797.5   710.9   +12.2 %
E-scooter sales from international markets   130.2   121.7   +7.1 %
E-scooter sales, sub-total   927.7   832.6   +11.4 %
Accessories, spare parts and services   96.2   94.4   +1.8 %
Total   1,023.9   927.0   +10.5 %
Revenues per e-scooter
(in RMB)		   2024
Q3		   2023
Q3		   % change
YoY
E-scooter sales from China market2   3,078   3,085   -0.2 %
E-scooter sales from international markets2   2,444   3,430   -28.7 %
E-scooter sales   2,970   3,131   -5.1 %
Accessories, spare parts and services3   307   355   -13.5 %
Revenues per e-scooter   3,277   3,486   -6.0 %
               

Cost of revenues was RMB 882.4 million, an increase of 21.0% year-over-year, mainly due to an increase in sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specific period, was RMB 2,824, an increase of 3.0% from RMB 2,724 in the third quarter of 2023. This increase was mainly due to a higher proportion of premium series sales in China market with higher cost per e-scooter, partially offset by the higher proportion of kick-scooter sales in international markets, which have lower cost per e-scooter.

Gross margin was 13.8%, compared with 21.4% in the same period of 2023. The decrease was mainly due to a higher proportion of kick-scooters sales in international markets, and changes in product mix of e-scooters and increased sales incentives to franchisees in China market.

Operating expenses were RMB 200.6 million, a decrease of 30.5% year-over-year. Operating expenses as a percentage of revenues was 19.6%, compared with 31.1% in the third quarter of 2023.

Operating expenses excluding share-based compensation were RMB 194.0 million, decreased by 30.6% year-over-year, and represented 18.9% of revenues, compared with 30.1% in the third quarter of 2023.

Share-based compensation was RMB 6.7 million, compared with RMB 9.5 million in the same period of 2023.

Income tax benefit was RMB 8.6 million, compared with income tax expense of RMB 0.2 million in the same period of 2023.

Net loss was RMB 40.9 million, compared with RMB 79.4 million in the third quarter of 2023. The net loss margin was 4.0%, compared with 8.6% in the same period of 2023.

Adjusted net loss (non-GAAP) was RMB 34.2 million, compared with RMB 70.0 million in the third quarter of 2023. The adjusted net loss margin4 was 3.3%, compared with 7.5% in the same period of 2023.

Basic and diluted net loss per ADS were both RMB 0.52 (US$ 0.07).

Balance Sheet

As of September 30, 2024, the Company had cash and cash equivalents, term deposits and short-term investments of RMB 1,045.2 million in aggregate. The Company had restricted cash of RMB 210.2 million and short-term bank borrowings of RMB 200.0 million.

Business Outlook

NIU expects revenues of the fourth quarter 2024 to be in the range of RMB 622 million to RMB 718 million, representing a year-over-year increase of 30% to 50%.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectation and is subject to change.

Conference Call

The Company will host an earnings conference call on Monday, November 18, 2024 at 8:00 AM U.S. Eastern Time (9:00 PM Beijing/Hong Kong Time) to discuss its third quarter financial and business results and provide a corporate update.

To join via phone, participants need to register in advance of the conference call using the link provided below. Upon registration, participants will receive dial-in numbers and a personal PIN, which will be used to join the conference call.

A live and archived webcast of the conference call will be available on the investor relations website at https://ir.niu.com/news-and-events/webcasts-and-presentations.

About NIU

As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric motorcycles, mopeds, bicycles, as well as kick-scooters and e-bikes. NIU has a diversified product portfolio that caters to the various demands of our users and addresses different urban travel scenarios. Currently, NIU offers two model lineups, comprising a number of different vehicle types. These include (i) the electric motorcycle, moped and bicycle series, including the NQi, MQi, UQi, F series and others, and (ii) the micro-mobility series, including the kick-scooter series KQi and the e-bike series BQi. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to sell its products and provide services to users.
For more information, please visit www.niu.com.

Use of Non-GAAP Financial Measures

To supplement NIU’s consolidated financial results presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), NIU uses the following non-GAAP financial measures: adjusted net income (loss) and adjusted net income (loss) margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. NIU believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to NIU’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Adjusted net income (loss) is defined as net income (loss) excluding share-based compensation expenses. Adjusted net income (loss) margin is defined as adjusted net income (loss) as a percentage of the revenues.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP and Non-GAAP Results”.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the readers. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 7.0176 to US$ 1.00, the exchange rate in effect as of September 30, 2024, as set forth in the H.10 Statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are 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.

Investor Relations Contact:

Niu Technologies
E-mail: ir@niu.com

NIU TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
　 　 　 　 　 　
　 As of
　 December 31, 　 September 30, 　 September 30,
　 2023   　 2024   　 2024  
　 RMB 　 RMB 　 US$
ASSETS 　 　 　 　 　
Current assets 　 　 　 　 　
Cash and cash equivalents 872,573,460   　 743,347,527   　 105,926,175  
Term deposits 97,555,565   　 291,844,595   　 41,587,522  
Restricted cash 107,666,733   　 210,222,000   　 29,956,395  
Short-term investments –   　 10,002,510   　 1,425,346  
Accounts receivable, net 94,956,170   　 185,531,113   　 26,437,972  
Inventories 392,790,141   　 699,311,558   　 99,651,100  
Prepayments and other current assets 195,072,129   　 260,622,686   　 37,138,436  
Total current assets 1,760,614,198   　 2,400,881,989   　 342,122,946  
　 　 　   　  
Non-current assets 　 　   　  
Property, plant and equipment, net 323,112,366   　 313,739,089   　 44,707,463  
Intangible assets, net 1,306,401   　 1,106,369   　 157,656  
Operating lease right-of-use assets 76,821,285   　 72,148,758   　 10,281,116  
Deferred income tax assets 20,747,021   　 29,352,611   　 4,182,714  
Other non-current assets 6,730,378   　 9,925,077   　 1,414,312  
Total non-current assets 428,717,451   　 426,271,904   　 60,743,261  
　 　 　   　  
Total assets 2,189,331,649   　 2,827,153,893   　 402,866,207  
　 　 　   　  
LIABILITIES 　 　   　  
Current liabilities 　 　   　  
Short-term bank borrowings 100,000,000   　 200,000,000   　 28,499,772  
Notes payable 167,282,688   　 249,991,484   　 35,623,501  
Accounts payable 575,724,288   　 1,026,271,878   　 146,242,573  
Income taxes payable 1,357,913   　 1,054,237   　 150,228  
Advances from customers 19,304,488   　 71,339,217   　 10,165,757  
Deferred revenue-current 41,755,097   　 47,552,465   　 6,776,172  
Accrued expenses and other current liabilities 165,511,396   　 212,566,533   　 30,290,489  
Total current liabilities 1,070,935,870   　 1,808,775,814   　 257,748,492  
　 　 　   　  
Deferred revenue-non-current 13,168,111   　 16,022,221   　 2,283,148  
Deferred income tax liabilities 2,362,494   　 5,014,454   　 714,554  
Operating lease liabilities 280,421   　 119,331   　 17,005  
Other non-current liabilities 8,968,519   　 9,539,200   　 1,359,325  
Total non-current liabilities 24,779,545   　 30,695,206   　 4,374,032  
　 　 　   　  
Total liabilities 1,095,715,415   　 1,839,471,020   　 262,122,524  
　 　 　   　  
SHAREHOLDERS’ EQUITY: 　 　   　  
Class A ordinary shares 90,031   　 90,450   　 12,889  
Class B ordinary shares 10,316   　 10,316   　 1,470  
Additional paid-in capital 1,964,138,365   　 1,982,764,831   　 282,541,728  
Accumulated other comprehensive loss (9,495,674 ) 　 (13,393,350 ) 　 (1,908,537 )
Accumulated deficit (861,126,804 ) 　 (981,789,374 ) 　 (139,903,867 )
Total shareholders’ equity 1,093,616,234   　 987,682,873   　 140,743,683  
　 　 　   　  
Total liabilities and shareholders’ equity 2,189,331,649   　 2,827,153,893   　 402,866,207  
           
NIU TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
　 　 　 　 　 　 　 　 　 　
　 Three Months Ended September 30, 　 Nine Months Ended September 30,
　 2023   　 2024   　 2023   　 2024  
　 RMB 　 RMB US$ 　 RMB 　 RMB US$
Revenues 927,022,630     1,023,896,776   145,904,123   　 2,173,069,852     2,469,116,667   351,846,310  
Cost of revenues(a) (729,071,439 )   (882,352,543 ) (125,734,232 ) 　 (1,693,267,053 )   (2,072,337,778 ) (295,305,771 )
Gross profit 197,951,191     141,544,233   20,169,891   　 479,802,799     396,778,889   56,540,539  
　         　        
Operating expenses:         　        
Selling and marketing expenses(a) (122,663,357 )   (127,674,970 ) (18,193,538 ) 　 (304,565,382 )   (353,235,333 ) (50,335,632 )
Research and development expenses(a) (39,059,530 )   (30,299,955 ) (4,317,709 ) 　 (115,351,728 )   (91,488,651 ) (13,037,028 )
General and administrative expenses(a) (126,821,515 )   (42,583,209 ) (6,068,059 ) 　 (225,122,249 )   (112,541,644 ) (16,037,056 )
Total operating expenses (288,544,402 )   (200,558,134 ) (28,579,306 ) 　 (645,039,359 )   (557,265,628 ) (79,409,716 )
Government grants 1,070,500     520,000   74,099   　 1,897,473     523,756   74,635  
Operating loss (89,522,711 )   (58,493,901 ) (8,335,316 ) 　 (163,339,087 )   (159,962,983 ) (22,794,542 )
　         　        
Interest expenses (524,748 )   (1,537,621 ) (219,109 ) 　 (606,268 )   (4,024,904 ) (573,544 )
Interest income 10,282,848     9,512,697   1,355,548   　 25,545,664     27,530,058   3,923,002  
Investment income 558,506     985,634   140,452   　 985,342     1,987,535   283,221  
Loss before income taxes (79,206,105 )   (49,533,191 ) (7,058,425 ) 　 (137,414,349 )   (134,470,294 ) (19,161,863 )
Income tax (expense) benefit (216,221 )   8,586,698   1,223,595   　 (4,251,721 )   13,807,724   1,967,585  
Net loss (79,422,326 )   (40,946,493 ) (5,834,830 ) 　 (141,666,070 )   (120,662,570 ) (17,194,278 )
　         　        
Other comprehensive (loss) income         　        
Foreign currency translation adjustment, net of nil income taxes (2,644,910 )   (6,430,430 ) (916,329 ) 　 12,842,854     (3,897,676 ) (555,414 )
Unrealized gain on available-for-sale securities, net of reclassification –     –   –   　 (345,356 )   –   –  
Comprehensive loss (82,067,236 )   (47,376,923 ) (6,751,159 ) 　 (129,168,572 )   (124,560,246 ) (17,749,692 )
Net loss per ordinary share 　 　 　 　 　 　 　 　 　
—Basic (0.51 )   (0.26 ) (0.04 ) 　 (0.90 )   (0.76 ) (0.11 )
—Diluted (0.51 )   (0.26 ) (0.04 ) 　 (0.90 )   (0.76 ) (0.11 )
Net loss per ADS         　        
—Basic (1.01 )   (0.52 ) (0.07 ) 　 (1.81 )   (1.52 ) (0.22 )
—Diluted (1.01 )   (0.52 ) (0.07 ) 　 (1.81 )   (1.52 ) (0.22 )
　 　 　 　 　 　 　 　 　 　
Weighted average number of ordinary shares and ordinary shares equivalents
outstanding used in computing net loss per ordinary share		 　 　 　 　 　 　
—Basic 157,165,708     158,808,425   158,808,425   　 156,594,219     158,356,359   158,356,359  
—Diluted 157,165,708     158,808,425   158,808,425   　 156,594,219     158,356,359   158,356,359  
Weighted average number of ADS outstanding used in computing net loss per ADS         　        
—Basic 78,582,854     79,404,213   79,404,213   　 78,297,110     79,178,180   79,178,180  
—Diluted 78,582,854     79,404,213   79,404,213   　 78,297,110     79,178,180   79,178,180  
　 　 　 　 　 　 　 　 　 　
Note: 　 　 　 　 　 　 　 　 　
(a) Includes share-based compensation expenses as follows:
　 Three Months Ended September 30, 　 Nine Months Ended September 30,
　 2023   　 2024   　 2023   　 2024  
　 RMB 　 RMB US$ 　 RMB 　 RMB US$
Cost of revenues 311,157     154,379   21,999   　 902,677     596,268   84,968  
Selling and marketing expenses 2,374,275     2,408,003   343,138   　 8,207,677     5,746,819   818,915  
Research and development expenses 3,550,989     1,997,306   284,614   　 18,656,349     5,270,563   751,049  
General and administrative expenses 3,224,049     2,138,305   304,706   　 12,152,242     6,764,744   963,968  
Total share-based compensation expenses 9,460,470     6,697,993   954,457   　 39,918,945     18,378,394   2,618,900  
                   
NIU TECHNOLOGIES
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
　 　 　 　 　 　 　 　 　 　
　 Three Months Ended September 30, 　 Nine Months Ended September 30,
　 2023   　 2024   　 2023   　 2024  
　 RMB 　 RMB US$ 　 RMB 　 RMB US$
Net loss (79,422,326 )   (40,946,493 ) (5,834,830 ) 　 (141,666,070 )   (120,662,570 ) (17,194,278 )
Add:         　        
Share-based compensation expenses 9,460,470     6,697,993   954,457   　 39,918,945     18,378,394   2,618,900  
Adjusted net loss (69,961,856 )   (34,248,500 ) (4,880,373 ) 　 (101,747,125 )   (102,284,176 ) (14,575,378 )
                   

____________________

1 Adjusted net income (loss) (non-GAAP) is defined as net income (loss) excluding share-based compensation expenses
2 Revenues per e-scooter on e-scooter sales from China or international markets is defined as e-scooter sales revenues from China or international markets divided by the number of e-scooters sold in China or international markets in a specific period
3 Revenues per e-scooter on accessories, spare parts and services is defined as accessories, spare parts and services revenues divided by the total number of e-scooters sold in a specific period
4 Adjusted net income (loss) margin is defined as adjusted net income (loss) (non-GAAP) as a percentage of the revenues


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