Niu Technologies Q4 FY2024 earnings call

• Product Portfolio: Focused on N, M, U, and F series. Launched NX, NXT, N Play, NT Play, FX series with co-branding. Smart technologies like dual-channel ABS, TFT displays, etc. introduced. - Channel Expansion: Added ~900 stores in 2024, plan to open 1,000-1,500 more in 2025. - Technology: Standardizing product platforms to improve R&D and reduce costs. Smart technology advancements with roadmap for 2025. - International: Overseas sales volume grew 54% in Q4 2024 and 52% full year 2024. Addressed US tariff issues by local manufacturing in Southeast Asia, with first shipments in Jan 2025.

In the fourth quarter of 2024, total sales volume was 226,600 units. China sales volume was 182,000 units (80% of total) with a 65% year-over-year growth, and overseas sales volume was 44,000 units (20% of total) with a 64% year-over-year growth. Total revenue for Q4 was RMB819 million, up 71% y-o-y. For the full year 2024, total sales volume was 924,000 units (759,000 in China, 165,000 overseas) and total revenue was RMB3.29 billion, up 24% y-o-y. China scooter revenue in Q4 was RMB646 million (88% of total scooter revenues), with an ASP of RMB3,544. Overseas scooter revenue in Q4 was RMB87 million (12% of total scooter revenues). Gross margin for Q4 was 12.4%, down from last year due to overseas product mix shift, US tariffs, and holiday incentives. Full year 2024 gross margin was 15.2%, down from 21.5% in 2023.

Q1 2025 revenue expected to be in range of RMB631 million to RMB707 million (25%-40% y-o-y growth). Full year 2025 sales volume expected 1.3 million to 1.6 million units. Kick-scooters expected to return profitable in 2025. Domestic market ASP expected to be stable with slight increase, and gross margin to improve due to scale economy and cost reductions.

• US tariffs on kick-scooters initially impacted margins. - Overseas product mix shift negatively affected gross margin. - Year-end overseas holiday season incentives impacted margins.

Q: What is your sales target for kick-scooters in 2025 and long-term plan for the business?

A: Looking at ~30%-50% growth in 2025. Kick-scooters expected to return profitable in 2025 as supply chain adjusted with local manufacturing in Southeast Asia addressing tariff issues.

Q: What is your outlook for average selling price and gross profit margin in domestic market in 2025?

A: ASP in domestic market expected to be stable with slight increase due to concentration in premium and mass premium series. Gross margin to improve due to scale economy in BOM and other costs, and potential recovery of margins from sales distributors as store expansion continues.

Q: What is your expected net profit margin guidance for 2025 and which quarter is expected to turn profit?

A: 2025 is a recovering year, not sharing specific net profit margin guidance yet. Expect quarterly profit in the second quarter (April-June 2025) as it's a peak quarter with improved domestic and international market conditions.