NIU Technologies (“NIU”, or “the company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, announced its financial results for the Q3 2019 which ended on September 30, 2019.
Revenues and net income had grown for three consecutive quarters
The revenue and sales volume of NIU continued to grow steadily in Q3 2019. Revenues for Q3 2019 were RMB 654.5 million, an increase of 32.7% year over year. In Q3 2019, the Company sold 149,424 units of e-scooters globally, increased 23.5% YoY. Higher e-scooter sales volume was mainly driven by the peak season for the China market. In addition, the growth of gross margin was up substantially, it increased from 12.4% Q3 2018 to 22.2% Q3 2019.
Q3 2019 witnessed a profitable quarter with net income RMB 66.4 million. The Q3 2019 adjusted net income (non-GAAP) was RMB 72.5 million, compared with an adjusted net income of RMB 4.9 million in Q3 2018. The Q3 2019 adjusted net income margin was 11.1%, compared with an adjusted net income margin of 1.0% in the same period of 2018.
Dr. Yan Li, Chief Executive Officer of the Company, commented: “We delivered solid revenue growth and improved gross margin. The Company continued to operate profitably. The e-scooter market in China recovered gradually from the second quarter when the new national standards started to be implemented. The new regulation also affected the competitive landscape of the industry. We are pleased to see that the Company continued to grow and at the same time achieved higher profitability.”
Continued international growth with plans to attend CES in United States
As the world’s leading lithium-ion electric two-wheeler company, NIU has continued to grow internationally and the market reach had expanded further in Q3 2019. By the end of Q3 2019, the company has covered 35 countries in Europe, Americas, East Asia (Japan and South Korea), Southeast Asia and Oceania. In China, the number of franchised stores has expanded to 1020.
On November 6th, 2019 in Milan Italy, the company launched new products at EICMA motor show: the NIU Aero Electric Bicycle, and three upgraded e-scooter models with improved top speed and driving range. The new product and models are designed mainly for overseas markets such as Europe and United States
NIU continues to expand partnerships with sharing operators globally. NIU currently works with 16 sharing operators in 14 countries such as United States, Germany and France by providing SaaS solutions for electric two-wheelers. Sharing operators with electric scooters are also becoming more widely accepted among local consumers.
Dr. Yan Li also commented, “We are planning to attend the CES show in the U.S in 2020 and launch additional new products. We are very excited about our expanded product portfolio and believe such enriched product offerings will support the continued growth of the Company.”