Niu Technologies Q1 FY2026 earnings call

Core Strategic Positioning

• Management framed Q1 2026 as a period of high-quality execution and strategic resilience amid a complex regulatory environment, with the core priority of healthy long-term profitability over short-term shipment volume.
• The company successfully achieved a definitive structural breakthrough in the electric motorcycle segment, which offset the anticipated contraction in the electric bicycle market caused by the new national standard rollout.

Brand and Marketing Investment

• Management proactively front-loaded full-year 2026 marketing investment into Q1 to capture consumer mindshare ahead of the electric bicycle market transition, leading to a 4x YoY increase in Q1 marketing expenses, which will normalize in subsequent quarters.
• Three major saturated marketing initiatives were executed: 1) Launch of the first industry global ambassador strategy with Wu Lei and Song Yiqi, activated across 40+ cities and 80+ global landmarks, generating 3.4 billion impressions; 2) Spring Festival saturation campaign across 37 cities, 42 transportation hubs and nearly 3,000 cinemas, generating over 400 million impressions; 3) 2026 Technology Launch Event that unveiled the company's next-generation AI mobility strategy, generating 460 million impressions.

Technology and R&D Progress

• Core 2026 R&D focus is integrating AI into electric two-wheelers, centered on three priorities: the AI Operating System (AIOS), Intelligent Chassis System, and Intelligent Riding Technology.
• AIOS, the industry's first mass-produced AI dashboard system launched in Q1, integrates an AI voice assistant with an automotive-grade operating system.
• The new next-generation intelligent chassis platform unifies advanced safety and performance systems (ABS, TCS, battery management, etc.) into a single architecture, enabling industry-first features for mass-produced two-wheelers.
• A strategic partnership with leading automotive technology companies will bring advanced rider assistance functionality to the two-wheeler segment, integrating advanced visual recognition and high-performance processing chips.

Product Launch and Portfolio Expansion

• Product strategy in Q1 prioritized aggressive growth in electric motorcycles while building out a premium portfolio for the upcoming electric bicycle market recovery.
• Key new launches: 1) MX-T2 series (priced RMB 5,299 to 12,999), the industry's first AI-powered electric bicycle, anchored the high-end market; 2) Y-Series, the company's first entry into the female mobility segment (priced RMB 3,000 to 4,000); 3) NX Marathon electric motorcycle (priced RMB 6,499 for long-range family commuters), which generated over RMB 91 million in sales within 5 hours of launch and ranked #1 across major e-commerce platforms.

Channel and Geographic Expansion

• In China, the company achieved a major strategic milestone by expanding beyond traditional Tier 1 markets: Tier 2 and 3 cities grew faster than Tier 1 driven by electric motorcycle adoption, opening up the broader mass premium market.
• Domestic online channels grew 53% YoY, accounting for 46% of domestic retail sales, with over 32,000 live streams on Douyin generating 270 million impressions.
• Internationally, the company completed a major structural shift to a direct distribution model in key markets (Germany, US), with European electric motorcycle dealer count expanding from 307 to 360 active locations in Q1.

Total company revenue for Q1 2026 was RMB 909.52 million, up 33.4% year-over-year, with total sales volume of 261,000 units, a 28.7% YoY increase.

• China Domestic Segment: Revenue of RMB 854 million, accounting for 94% of total company revenue. Total domestic sales volume reached 247,938 units, a 35.4% YoY increase. Electric motorcycle segment grew 3x YoY, driven by the Windstorm product line and penetration into Tier 2/3 cities. Electric bicycle segment saw soft sales due to the full implementation of the new national standard, a planned transitional contraction. Domestic scooter (including electric motorcycles, e-bikes) revenue was RMB 774 million, a 42% YoY increase, with average selling price up 5% YoY to RMB 3,120.

• Overseas Segment: Revenue of RMB 56 million, accounting for 6% of total company revenue. Total overseas sales volume was 13,686 units, a 32.4% YoY decline, a planned result of channel optimization and inventory management. High-margin electric motorcycle shipments grew 29% YoY to over 2,000 units, while micro-mobility (including kick scooters) sales declined 37% YoY due to the channel transition. Overseas scooter average selling price increased from RMB 2,962 to RMB 3,716 YoY due to the shift to premium electric motorcycles.

• Accessories, Spare Parts and Services: Revenue of RMB 85 million, a 13% YoY increase.

• The company provided Q2 2026 revenue guidance of RMB 1.257 billion to RMB 1.82 billion, representing 25% to 45% year-over-year growth, based on current available information.
• In China, management expects the electric bicycle market to recover gradually through Q2, with a phased rollout of the full new product mix ahead of the critical Q3 selling season starting in June. Electric motorcycles will remain the primary domestic growth engine, with additional new models for female riders and technology enthusiasts planned for Q2 and H2 2026.
• Overseas, management expects electric motorcycle dealer count to surpass 400 locations by the end of 2026, supporting volume growth and improved profitability.
• Overseas channel transition for micro-mobility is expected to finalize by the end of H1 2026, with inventory clearance and normalization expected to be largely completed by H2 2026.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, with additional risk factor details disclosed in SEC filings.
• The new national standard for electric bicycles caused a temporary market contraction, with the timing and strength of consumer demand recovery uncertain.
• Elevated inventory of micro-mobility products in Europe and the US from lower-than-expected 2025 sales requires targeted price promotions for older models in 2026, which will depress micro-mobility contribution margins for the full year.
• Foreign exchange volatility increased G&A expenses in Q1 2026, creating ongoing pressure on overhead costs.
• The wider-than-historical Q1 net loss is driven by front-loaded marketing investment, though management expects marketing spend to normalize in subsequent quarters.

No investor questions were submitted during the Q&A portion of the call. The call proceeded directly to closing remarks after the queue was confirmed empty.