Niu Technologies (NIU) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales volume reached 312,000 units, up 17.5% year-over-year, with China up 12.4% and overseas up 50% year-over-year.

• Q3 2024 revenues reached RMB 1,024 million, up 10.5% year-over-year, driven by new product launches and expanded sales channels.

• Net loss narrowed to RMB 40.9 million (net loss margin 4%), improved from RMB 79 million loss a year ago.

• Over 60% of China sales volume came from new products launched in 2024.

• Product portfolio expanded in China, EU, US, and Southeast Asia, with new models and upgrades in 2024.

Financial highlights

• China revenue was RMB 880 million (86% of total), with scooter revenue at RMB 797 million, up 12% year-over-year.

• Overseas revenue was RMB 144 million (14% of total), with scooter revenue at RMB 130 million, mainly from kick scooters.

• Gross margin for Q3 was 13.8%, down from 21.4% year-over-year due to product mix and incentives.

• Net loss margin was 4.0%, improved from 8.6% in Q3 2023; adjusted net loss margin was 3.3%.

• Ended Q3 with RMB 1.3 billion in cash, restricted cash, term deposits, and short-term investments.

Outlook and guidance

• Q4 2024 revenue expected between RMB 622 million and 718 million, up 30%-50% year-over-year.

• Gross margin expected to recover in Q4 and further improve in 2025 as cost-saving initiatives and product mix changes take effect.

• Kick scooter sales volume for 2024 expected at 160,000-170,000 units, with 50%-60% growth projected for 2025.

• Focus on expanding product offerings and international presence, with new models introduced in 2024.