Niu Technologies (NIU) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales volume reached 256,000 units, up 21% year-over-year, with China up 16.2% and overseas up 45.4%.

• Revenue for Q2 2024 was RMB 940.5 million, a 13.5% increase year-over-year, driven by new product launches and channel expansion.

• Net loss widened to RMB 25 million (GAAP), with adjusted net loss of RMB 20 million, as gross margin declined to 17% due to product mix and incentives.

• Over 50% of Q2 China sales came from new products targeting Gen Z and female users.

• Significant marketing campaigns and expanded sales channels, including 400+ new stores in China and major retail partnerships overseas.

Financial highlights

• China revenue was RMB 802 million (85% of total), with scooter revenue up 14% year-over-year.

• Overseas revenue was RMB 138 million, with kick scooter sales driving a 32% year-over-year increase in micro-mobility revenue.

• Gross margin declined to 17%, down from 23.1% year-over-year.

• Net loss margin was 2.6% (GAAP), with adjusted net loss margin at 2.1%.

• Operating expenses as a percentage of revenue decreased to 19.8% in Q2 2024.

Outlook and guidance

• Q3 2024 revenue expected between RMB 1,298 million and RMB 1,483 million, representing 40%-60% year-over-year growth.

• Gross margin for 2024 expected to remain below 2021-2022 levels but higher than most competitors.

• Plan to add approximately 1,000 new stores in China by year-end.