管理層發言
Good day, ladies and gentlemen. Thank you for standing by and welcome to the Niu Technologies First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.
Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the first quarter of 2025. The early press release, corporate presentation, and financial spreadsheet have been posted on our investor relations website. This call is being webcast from our company's investor relations site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required by law. Our earnings press release and this call included a discussion of certain non-GAAP financial measures. The press release contained a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to CEO Yan.
Thank you, Kristal. Hello, everyone. Thank you for joining us today. In the first quarter of 2025, we achieved a total sales volume of 203,000 units, marking a significant 57.4% year-over-year growth. Behind this strong performance was a 66% year-over-year increase in sales volume in the China market and a 6.4% year-over-year growth in the overseas market. Total revenue for the first quarter reached RMB682 million, reflecting a 35% increase compared with the same period last year. The gross margin rebounded to 17.3% with a 4.9% year-over-year increase, primarily driven by the cost reduction in products, platformization, component standardization, and procurement cost improvement. The performance in Q1 2025 has set a tone for the rest of the year, underlining our drive for high-volume and revenue growth, as well as profitability improvement. Taking a closer look at our performance in China, sales volume reached 183,000 units in this quarter.
Our overall product portfolio strategy emphasized technology innovation and expanding sales channels, as well as targeting marketing strategies that were the key drivers to the strong domestic performance. In Q1 2025, we maintained our focus on our key product strategy of N, M, U, and F series. We enhanced our existing products through upgrading and refining our product portfolio, which led to optimizing the product mix and offering our customers an even more enjoyable riding experience. Additionally, we stepped up our motorcycle offerings, introducing models like NX, NL, and FX. The expansion diversified our electric motorcycle range and helped broaden our sales channel. First, we successfully launched a comprehensive range of electric motorcycles, including the NX, NL, and FX series, spanning a price range from RMB4,000 to over RMB10,000. Each model features significant enhancements in functionality and smart technologies, aligning with our new performance and safety standards.
Those additions have significantly expanded our electric motorcycle portfolio, offering consumers more diverse options while reinforcing our position as a premium brand in the electric two-wheeler sector. Diving into the details of each product, on March 21, we launched the NX Pro motorcycle priced at RMB9,999, positioning it as the speed champion among the sub-10,000 electric motorcycles. It's equipped with a 72 volts, 42 amp hour high-energy lithium battery, offering a range of over 90 kilometers on one charge. Powered by a motor with a peak power of six kilowatts under boost mode, it hits the top speed of 80 kilometers per hour and accelerates from zero to 50 in just 5.4 seconds. The intelligent fast charging system allows for a full charge in only five hours. The NX Pro received around 2,000 preorders and set a sales record on platforms like Douyin, JD.com, and Tmall on its launch date.
This model has established itself as a pioneer in the high-end two-wheel motorcycle market, reinforcing our reputation for high performance and attracting a younger demographic that values speed and innovation. It significantly boosts our presence in the premium electric motorcycle segment. We also launched our entry-level NL, the smart electric motorcycle. Key upgrades include a large footboard, extended seats, and an expanded storage compartment. It comes equipped with advanced intelligent features such as a full-color TFT display with navigation capabilities, as well as advanced technologies. Powered by a 2,000 watts peak power motor, the NL reaches a top speed of 55 kilometers per hour and includes TCS as a standard feature. Priced at RMB4,799, the NL offers a compelling combination of performance, smart technology, and affordability. We also expanded our F Series with the FX Pro, FX Force, and FX CD, completing the F Series product lineup.
With their aggressive designs, these models now come with enhanced features such as full-color TFT displays and expanded battery compartments, offering options of 72-volt 42 amp hour lithium batteries or 72-volt 35 amp hour batteries. These models deliver a 45% increase in top speed and a 72% boost in peak input power. The F series also features two-channel ABS and advanced wheel technologies, significantly enhancing playability and ease of operation, establishing the F series as a performance powerhouse. We launched the F series across platforms such as Tmall, JD, and Douyin, with the series set to start in Q2. Besides electric motorcycles, we have integrated those technologies into our electric bicycle lineup, elevating the categories with innovative technologies. We started with popular signature electric bike models such as NXT, NLT, MT, and MMT. This approach brings a premium electric motorcycle experience to the electric bicycle categories.
The NXT launch on March 21 stands out as the first lap electric bicycle equipped with dual-channel ABS, a 12-inch full disc motor, and standard boost launch mode. The NXT seamlessly incorporates top-tier electric motorcycle features, making it a highly favored choice among consumers, setting a new benchmark in the electric bicycles market. We also unveiled two new models under the M series targeting female users, the MT and MFT. The MT stands out with its ultra-compact design, vibrant color options, and user-friendly features, making it especially suitable for female users seeking convenience and style. The MMT, a smaller model, embraces the iconic M Series design with fresh colorful aesthetics and a comfortable riding experience tailored to the diverse preferences of Gen Z female users. As a product line targeting these demographics, the M series accounted for an impressive 32% sales uptick in Q1, reinforcing its appeal and market success.
In Q1, our strategic emphasis on standardizing those key product platforms has shown signs of progress. We enhanced our R&D process and reduced our costs, contributing to a significant improvement in our gross margin in the China market. The positive impact is evident in Q1 2025. Besides the product, we also rolled out a series of smart technology features, focusing on a seamless driving experience, AI smart control assistance, and AI smart ecosystem features. Additionally, in terms of driving safety, we have partnered with mapping technologies to develop an industry pioneer data-driven dynamic safety warning system. The system’s facility and advanced functionalities include blind-spot warnings, real vehicle approach warnings, and AI piloted traffic light navigation. This has already been implemented in our new NX and NXT models with more advanced features to be released in Q2 and Q3 this year.
We're aiming at significantly enhanced ride safety and improving the overall riding experience for our customers. In the last quarter, we also continued to enhance our brand influence among the target customer groups, especially premium consumers and Gen Z riders. The launch of our MX Pro was marked by a strategic partnership with a renowned game. This collaboration introduced a new racing tournament within the game, which quickly topped the trending list on various platforms. The advertising campaign spanned 115,000 placements across 16 major cities, targeting prominent landmarks, key business districts, and subway systems, garnering over 2.4 billion views. On May 13, we debuted our electric motorcycle matrix product targeting premium users and Gen Z with the NX and FX series. The launch became a milestone in 2025 with sales exceeding RMB100 million in just the first five hours and over 10,000 units sold.
In terms of channel expansion, we continue our previous strategy with a strong focus on penetrating underrepresented markets in China, strategically expanding our retail footprint to reach a broader consumer base. We expanded our retail footprint by opening about 384 new stores in Q1, with a significant focus on tier three and tier four cities, accounting for 50% of new store openings. This strategic expansion refines our distribution network and paves the way for upcoming launches of electric motorcycles in Q3. Additionally, our online presence has been strengthened with sales improvements across multiple online channels. Multi-tier strategies have yielded about 10,000 live broadcasts, generating 430 million views, marking a sixfold increase compared to Q1 2024. This has significantly boosted our online visibility and customer interactions, contributing about 100,000 units of sales, representing 60% of our total sales volume.
Turning to the overseas market, in Q1 2025, the sales volume reached 20,000 units, focusing on the electric two-wheeler market, including electric mopeds and motorcycles. The electric two-wheeler market achieved over three times growth due to the preparations we made for direct distribution operations in key countries such as Germany, Italy, and France. These direct operations contributed to over 50% of sales in Q1. With a logistic financing CRM system and our on-ground team, we have successfully built operations in key countries, accelerating our network expansions. By the end of Q1 2025, the number of dealers in those direct distribution regions increased from 120 to 180 dealers, with projections to reach about 250 dealers by mid-2025, exceeding our initial forecasts. We have introduced a full line of electric two-wheeler products, ranging from 50 cc equivalent models to 125 cc equivalent models, as well as off-road motorcycles.
These products are priced between EUR2,000 and EUR4,600, catering to diverse consumer needs. The first batch of new products was shipped in Q1 2025 and is now stocked in local warehouses, ready for peak season sales in Q2. With a full lineup of electric two-wheeler products and our direct distribution operation in place, we anticipate exponential sales growth, targeting a three to five times increase in 2025, with Q1 serving as an early indicator of such growth. The rapid growth in the electric two-wheeler sector, particularly in direct distribution regions, is expected to account for 60% to 80% of sales and contribute significantly to our profitability turnaround in the international market. For the micromobility market, such as kick scooters and e-bikes, Q1 2025 was subpar, with nearly flat volume growth and delayed profitability turnaround due to tariff situations in the U.S. and inventory clear-outs in Europe.
In Europe, our Q1 sales focused on clearing all these inventories, which impacted gross margin and profitability. These inventory impacts will continue partially into Q2, but we expect to minimize them by the second half of this year. In the U.S., due to uncertainties surrounding tariffs, we deliberately held back sales of existing inventories in the U.S. market in Q1 for clearer guidance. We have implemented price increases in online channels in Q1 and negotiated with offline channels for price increases to take effect in late Q2 and early Q3. Our manufacturing in Southeast Asia has already dispatched our first deliveries in late Q1 2025, taking advantage of tariff situations. The shipped products have not yet been reflected in sales. We are carefully monitoring the tariff situation; however, with negotiated price increases and controlled inventories prior to tariff hikes, we expect to regain profitability in the second half of 2025 for the U.S. micromobility market.
Overall, we remain optimistic about the China market in Q2 2025, building on a strong foundation in product channel development and brand momentum. This has already produced positive initial results in Q1. On the product side, we will continue to focus on our portfolio around our core N, M, U, and F series. The launch of newly upgraded N and F series in Q2 is expected to elevate our brand attractiveness among premium consumers and Gen Z customers. Simultaneously, the launch of motorcycle products has diversified our portfolio, offering a wide array of options. We have also expedited the launch of new products in Q2 to May 13, just before the peak sales season, to take advantage of market timing. We will continue to expand our sales channels, expecting to add another 300 to 400 stores in Q2. This channel expansion will drive sales growth and also show signs of channel momentum throughout the year.
Lastly, we will continue to enhance our gross margin through product optimization in Q1. We have worked diligently to modify our product lineup to create new design styles to align with new electric bicycle standards in China, effective September. We have a solid product lineup in development, ready for the market by then. Looking at the international market, based on trends observed in Q1 and early Q2, we anticipate steady growth and a profitability turnaround this year. In the electric scooter market, with a complete product portfolio and established direct distribution operations, we expect hypergrowth in both revenue and profit contributions. The sales growth we saw in Q1 is a testament to the strong foundation we have built.
Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded the Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the first quarter figures unless I say otherwise. And all monetary figures are in RMB, not specified. As Yan just mentioned, our total sales volume for the first quarter was 203,000 units, up 57% compared to the same period of last year. 183,000 units were sold in China, while the remaining 20,000 were sold overseas. The total revenue for the first quarter amounted to RMB682 million, an increase of RMB177 million or 35% compared to the same period of last year. The China revenues were RMB608 million, accounting for 89% of total revenues. Of this, the scooter revenue was RMB546 million, a year-over-year increase of 39%. This increase was mainly due to the increase in sales volume, partially offset by a decrease in revenue per e-scooter.
The average selling price in China fell to nearly RMB3,000, primarily attributed to a shift in product mix. The notable increase in sales volume of high-end models, as mentioned in previous quarters, has led to a concentrated retail price range from RMB3,000 to RMB7,000. The overseas revenue was RMB74 million, representing 11% of total revenue. The scooter revenues, including electric motorcycles, mopeds, kick scooters, and e-bikes, amounted to RMB60 million, up from RMB49 million in the same period of last year. This growth was driven by stronger international demand for electric motorcycles and mopeds, which command higher retail prices. The premium pricing of these products contributed to a year-over-year increase in overseas scooter average selling price, rising from RMB2,577 to RMB2,962. Revenue from accessories, spare parts, and services amounted to RMB76 million, a 20% increase compared to the same period last year due to increased spare parts sales in both China and overseas markets.
The gross profit for the first quarter exceeded RMB118 million, marking a significant improvement compared to RMB96 million during the same period of last year. And the gross margin was 17.3%, 1.6 percentage points lower than the same period of last year but 4.9 percentage points higher than previous quarters. The domestic market gross margin improved due to successful cost reduction initiatives, which increased the overall gross margin by 1.2 percentage points. However, the overseas kick scooter margins dragged down the total gross margin by 2.8 percentage points, primarily due to the impact of 25% U.S. tariffs implemented last June, elevated freight costs, and aged inventory write-downs. The operating expenses for the first quarter were RMB165 million, remaining flat compared to the same period of last year. However, the operating expense ratio declined significantly from 32.7% to 24.2%.
Selling and marketing expenses rose by RMB9 million year-over-year to RMB115 million, driven by higher staff costs, advertising, promotional activities, and rental expenses. Selling and marketing expenses accounted for 16.8% of revenue, down from 20.9% in the first quarter of 2024. R&D expenses increased by RMB1 million year-over-year to RMB30 million primarily due to higher staff costs and share-based compensation. R&D expenses as a percentage of revenue are 4.4% compared to 5.7% in the first quarter of 2024. General and administrative expenses decreased by RMB10 million year-over-year to RMB21 million, largely attributed to foreign currency exchange gains. G&A expenses, as a percentage of revenue, were 3%, down from 6.1% compared to the first quarter of 2024. In the first quarter, we had a net loss of RMB39 million with the net loss margin of 5.7% under GAAP accounting, compared to a net loss of RMB55 million with a net loss margin of 10.9% for the same period last year.
The adjusted net loss was RMB31 million with an adjusted net loss margin of 4.6%. Turning to our balance sheet and cash flow, we ended the quarter with RMB963 million compared to RMB1.1 billion last year in cash, restricted cash, term deposits, and short-term investments. Our operating cash outflow amounted to RMB154 million. Operating expenses for the first quarter amounted to RMB24 million, reflecting an increase of RMB3 million compared to the same period last year, primarily attributed to the opening of new stores in China. Now let's turn to guidance. We expect the second quarter revenue to be in the range of RMB1.3 billion to RMB1.4 billion, an increase of 40% to 50% year-over-year. Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which are subject to change due to uncertainties relating to various factors. With that, we'll now open the call for any questions you may have for us. Operator, please go ahead.
分析師問答
Thank you. We will take our first question. The first question comes from the line of Kyle Wu from Citi Research. Please go ahead. Your line is open.
Thank you, operator. Hi. This is Kyle from Citi. Thanks for taking my questions. I have two questions. First is about the sales volume guidance. At the year beginning, we guided 2025 full year sales volume to be 30% to 50% year-on-year growth. Do we still maintain this volume guidance? Second is about the margin. What's our margin outlook for the upcoming quarters of this year? And also, do we still expect the second quarter to see a net profit turnaround? Thank you.
Let me take the first one. In terms of our guidance for the annual volume, we have not changed the guidance. I think we're on the path.
Okay. For the gross margin annually, last year, our overall gross margin was only 15.2%. This year, the annual gross margin will recover from that. For the second quarter this year, we still expect that we will achieve profitability in terms of net margin. So a net profit is a positive expectation for us.
Okay. Thank you.
Thank you. We will take our next question. The next question comes from Yating Chen from CICC. Please go ahead. Your line is open.
Hello. I have one question. I have seen that the average selling price decreased quarter-over-quarter in Q1, but the gross profit margin improved significantly quarter-over-quarter. So, I'd like to know what is the main reason, and what is the outlook for average selling price in subsequent quarters? This is my question. Thank you.
Okay. I'll take this question. In this quarter, the average selling price, especially in China, dropped due to the launch of new models. Since the launch date of our new models varied each year, for instance, the retail price of the MT 2025 models, our best seller this quarter, ranges from nearly RMB4,000 to RMB5,000. In contrast, last year, we launched the NXT in Q1 with a price between RMB6,000 and around RMB12,000. The launch date of new models affects our average selling price each quarter. However, we expect that the ASP will stabilize in the upcoming quarters, especially in the domestic market, where we anticipate a rebound in the average selling price from this quarter’s RMB3,000 to about RMB3,500. As for the gross margin recovery, this quarter’s gross margin improved, particularly due to cost reductions in domestic scooters. Since last Q4, we saw a drop in gross margin due to our light assets, motorcycles, and mopeds in the domestic market contributing significantly to our sales volume. We began to implement smart function platforms and R&D platform adjustments and cost reductions since last quarter. In Q2, we believe the gross margin will remain at this level but may fluctuate slightly based on product mix but will not drop below the 15% level seen last year.
Thank you very much. Those are all my questions.
Thank you. We will take our next question. The question comes from Michael Simmons from Global View FA. Please go ahead. Your line is open.
Thank you. Yes, it's Michael here, Michael Simmons. Hey, Dr. Li, perhaps I can just ask you a little bit about the balance sheet. I think the cash position has come down a little bit. Given what you've just been talking about, and it sounds like the second quarter is looking quite good, how do you think the cash position will look at the end of the year?
Well, actually, every year, the cash position in quarter one is the lowest due to the Chinese New Year, as we need to clear all the advances to suppliers, accounts payable, and bank notes payable. Looking back at 2024 and 2023, the fourth-quarter cash balance is the lowest during the year. By the end of 2025, we expect the cash position to improve starting from quarter two as the peak season in both domestic and overseas markets approaches. This should bring a high-speed sales volume increase aligned with revenue growth, resulting in positive operating cash flow starting from quarter two. We do not expect significant capital expenditures for furniture, equipment, or store openings. Overall, we anticipate that the cash position at the end of this year will be higher than the end of December 31, 2024.
Great. Thank you.
Thank you. We will take our next question. Your next question comes from the line of Zayan Wanyan from Seville Capital. Please go ahead. Your line is open.
Okay. This is Daniel from Seville Capital, and I have only one question. It's regarding overseas business. As we know, scooter revenue has been negatively impacted by tariffs. However, electric motorcycle sales have shown strong growth. How should we interpret the growth rate target for overseas operations under these circumstances? Thank you.
I think for the overseas growth rate, we have not changed our forecast for this year. Even in the previous quarter, we discussed last year results and this year's forecast, and we know that our electric two-wheeler market, particularly electric motorcycles, will see a high growth rate. Last year we sold about 3,000 units of electric motorcycles, and during our peak times, we actually sold well over 20,000 units. We expect hyper growth this year, aiming for five to six times growth in electric motorcycles. In Q1, we also saw three times growth in this segment. For the micro-mobility market, the scooter business has been impacted since last year when U.S. tariffs increased to 25%. We have started relocating our manufacturing base from China to Southeast Asia to cope with the tariff situation since the tariff in Southeast Asia is still at 0%. Even with the Southeast Asian tariff recently increasing to 10%, we have adjusted our approach by holding off sales in the U.S. market for more clarity. Overall, we believe the demand remains strong and with the Southeast Asia manufacturing base in place and ongoing negotiations for price increases with key U.S. retail partners, we should be able to maintain our expected growth for the overseas market. We foresee moderate growth in micro-mobility, focusing on turning the business from a loss to profitability.
Great. Thank you.
There seems to be no further questions. I would like to hand back for closing remarks.
Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to updating you again next quarter on our progress. Thank you.
This concludes today's conference call. Thank you for participating. You may now disconnect.