Niu (NIU) investor relations material

Executive summary

• Revenues rose 33.5% to RMB 1,256 million in Q2 2025, with net income of RMB 5.9 million reversing a prior-year loss and non-GAAP net income at RMB 13.7 million.

• E-scooter sales volume increased 36.7%, with China sales up 54% and international sales down 35–36%.

• Product portfolio expanded in China and overseas, including new high-end and entry-level models and enhanced smart technology features.

• Domestic retail network grew to over 4,300 franchised stores as of June 30, 2025, with international distribution in 53 countries.

• Profitability and margin improvements were driven by product optimization and cost reduction initiatives.

Financial highlights

• Gross margin improved to 20.1% from 17.0% year-over-year, with cost per e-scooter down 6% to RMB 2,866.

• Operating expenses increased 38% year-over-year, mainly from higher marketing and R&D spending; OpEx ratio rose to 21.1%.

• Cash and equivalents totaled RMB 1,226.6–1,441 million as of June 30, 2025, with operating cash inflow of RMB 519 million.

• Basic and diluted net income per ADS were RMB 0.07 (US$0.01).

• China revenue accounted for 91% of total, with overseas revenue at 9% and overseas scooter ASP up 23%.

Outlook and guidance

• Q3 2025 revenue expected between RMB 1,433 million and RMB 1,638 million, a 40–60% year-over-year increase.

• Confident in maintaining healthy gross margin and stable ASP in the second half of the year.

• Anticipates demand surge in Q3 and Q4 due to new national electric bicycle regulations and continued channel expansion.

• Focus on expanding product offerings and omnichannel retail, with Europe and the US as key international markets.

• Production capacity stands at 2 million units per year, supporting future growth.