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 expanded sales channels.

• Net loss widened to RMB 24.9 million (GAAP), with a net loss margin of 2.6%; adjusted net loss was RMB 19.5–20 million, margin 2.1%.

• Strategic focus on premium, Gen Z, and female segments, with new models accounting for over 50% of H1 2024 domestic sales.

• Significant expansion in overseas micro-mobility, including partnerships with Best Buy, Walmart, and major European and Australian retailers.

Financial highlights

• Q2 2024 revenue: RMB 940.5 million, up 13.5% year-over-year; China revenue: RMB 802 million (85% of total), overseas: RMB 138 million.

• Gross margin declined to 17.0%, down from 23.1% in Q2 2023, mainly due to product mix and increased lower-margin kick scooter sales.

• Net loss margin: 2.6%; adjusted net loss margin: 2.1%.

• Operating expenses: RMB 192 million, down 3.5% year-over-year; OpEx ratio decreased from 24% to 20%.

• Operating cash inflow: RMB 174 million; cash and equivalents at quarter-end: RMB 1.3 billion.

Outlook and guidance

• Q3 2024 revenue guidance: RMB 1,298–1,483 million, representing 40–60% year-over-year growth.

• Gross margin for 2024 expected to remain below 2022 levels (22–23%), but still higher than most competitors.

• Continued focus on premium and Gen Z products in China and micro-mobility growth overseas.