Niu Technologies Q2 FY2025 earnings call

China Market

• Q2 sales in China reached about 318,000 units, a 54% year - over - year growth. ASP increased by 11% compared with Q1 and is close to the 2024 annual level.
• Focused on electric motorcycle product development in the first half of the year, launched models like NX Pro Electric Motorcycle and NX, and has a complete lineup of motorcycle products.
• Developing and modifying product lines to comply with the new national standard for electric bicycles, expecting a smooth transition in Q4.
• Invested in technology innovation in smart technology and powertrain systems, and carried out rich brand marketing activities such as the 618 shopping campaign with RMB 1.06 billion GMV.

Overseas Market

• Electric 2 - wheeler products in overseas market grew at 4x, with over 3,200 units delivered in Q2, and nearly 45% of sales from direct distributor channels. Retail network for direct distributor regions expanded, with direct distributed stores increased from 181 to 244.
• Micromobility segment declined by 41% year - over - year but had a 50% quarter - over - quarter increase. Asian market had a 21% year - over - year increase.

In the second quarter of 2025, Niu Technologies' total sales volume reached 350,000 units. In the China market, sales volume was 318,000 units, a year - over - year increase of 54%, contributing 91% of total revenue (RMB 1.15 billion). The overseas market had a sales volume of 31,000 units, a year - over - year decline of 35%, contributing 9% of total revenue (RMB 110 million). Revenue from accessories, spare parts and services was RMB 96 million, a 15% increase compared to the same period last year.

Expected third quarter revenue to be in the range of RMB 1.4 billion to RMB 1.6 billion, an increase of 40% to 60% year - over - year. This outlook is based on current and preliminary expectations as of the date and is subject to change due to uncertainties.

Risks

• Overseas market affected by U.S. tariffs and intensifying competition in the European market.
• Impact of U.S. tariffs and aged inventory write - downs on overseas margins.
• Uncertainties brought by the new national standard for electric bicycles, such as market changes after the new regulation takes effect.

Q: What are the reasons for the increase of unit price and the gross profit margin in the second quarter and what's the outlook for the unit price and gross profit margin in the third quarter?

A: The ASP improvement quarter - over - quarter is mainly due to product mix improvement, especially in China scooters. The gross margin improved due to cost reduction initiatives and ASP improvement. The third quarter outlook is based on the information available as of the date and is subject to change.

Q: How do you predict sales volume next year for the domestic electric 2 - wheeled vehicles?

A: It's still early to predict. The new regulation will likely affect demand, but the company is preparing compliant products and expanding retail stores, which will help drive growth next year.

Q: Do we think we have working out of the rules or going out of the bottom and climbing up again due to our NIU driver on e - scooter and also our NIU direct selling channel in overseas market and can we expect maybe a better, brighter future since the second half and to the next year in overseas market?

A: Yes. We spent the last 2 years building up the direct distributed models in overseas market. We are ranked #1 in market share in Germany and Italy, and expect continued growth trend in the overseas electric 2 - wheeler market.

Q: Do you think that this will be the first quarter where that's going to be actually ahead of the volume in scooters in terms of revenue growth?

A: My sense is it will be very similar because we're still halfway through Q3 and the ASP situation is not fully clear yet, but currently, we roughly estimate revenue growth will be very similar in line with volume growth.