Niu Technologies Q2 FY2026 earnings call

• Domestic Market Strategic Pivot

  • Proactively reallocated R&D and product resources to shift from the contracting premium e-bicycle segment to the fast-growing electric motorcycle segment amid China's new national standard regulatory changes and consumer demand shifts, with electric motorcycles now offsetting e-bicycle industry headwinds.
  • Launched two successful new electric motorcycle models in Q2: the M-Funture series (for delivery/cargo use) recorded 32,000 first-day online pre-orders, and the MX Marathon series contributed 11% of total domestic sales volume in Q2. Further expanded the electric motorcycle lineup in July 2026 to cover more price points and consumer segments.
  • Maintained a disciplined presence in the e-bicycle segment, enhancing entry-level offerings and preparing to reintroduce mid-premium compliant models to capture future demand recovery.

• Technology and AI Integration

  • Executed on the company's previously announced strategy to launch AI-powered two-wheel electric vehicles, integrating core AI features (AIOS operating system, navigation, AI voice interaction, etc.) across multiple mass production models.
  • The company's two-wheeler operating system won an international award for user interface and experience design, marking the first such recognition for the industry and validating the company's technological leadership.

• Brand and Retail Channel Optimization

  • Expanded brand positioning from a niche urban premium brand to a broader mass-market premium brand, generating over 5.9 billion total brand impressions across 37 key cities through multi-touchpoint marketing campaigns.
  • Prioritized retail ecosystem health over rapid network expansion: as of Q2 end, total domestic store count reached 4,570 (36% located in lower-tier cities), with same-store sales growing 24% year-over-year.
  • Online domestic sales grew 50% year-over-year, accounting for 64% of total domestic retail sales, with strong expansion on social commerce platforms like Douyin that generated over 720 million impressions in Q2.

• International Business Restructuring

  • Completed the structural adjustment phase and re-entered growth trajectory, with the direct-to-retailer strategy for electric motorcycles driving 50% year-over-year unit growth and expanding the international dealer network from 307 to 417 active locations in H1 2026.
  • Achieved the key milestone of local profitability for international electric motorcycle operations, driven by product mix optimization toward higher-margin 125cc+ premium models. Followed an asset-light, profitability-first approach for emerging markets, with successful initial scaling in markets like Algeria and Thailand.
  • Completed channel transition for the legacy international micro mobility business, with inventory clearance initiatives on track to restore healthy inventory levels by year-end.

1. China Domestic Segment: Total revenue was RMB 1.32 billion, accounting for 92% of the company's total Q2 2026 revenue. Within China domestic scooter revenue, electric motorcycles made up approximately 60% of China sales volume, with total China scooter revenue reaching RMB 1.21 billion (15% year-over-year growth). The MX Marathon electric motorcycle model alone contributed 11% of total domestic sales volume. Accessories, spare parts, and services revenue grew 29% year-over-year to RMB 124 million, driven by growth in new APP services and domestic accessory sales. 2. International Segment: Total revenue was RMB 116 million, accounting for 8% of the company's total Q2 2026 revenue. Total international sales volume reached 32,485 units, a 3.6% year-over-year increase. The international electric motorcycle sub-segment sold 4,800 units (50% year-over-year growth), and 125cc+ premium models now make up 50% of total European sales volume for the company. The legacy international micro mobility (kick scooter) sub-segment completed channel and inventory transition in Q2, with end-user retail sales exceeding 36,000 units (21% year-over-year growth), but inventory clearance activities compressed gross margins for this sub-segment.

• Management maintained a positive forward-looking outlook for full-year 2026 transformation progress, and provided Q3 2026 revenue guidance of RMB 1.86 billion to 2.03 billion, representing 10% to 20% year-over-year growth. This guidance reflects current expectations as of the call date and is subject to change based on evolving market uncertainties.
• Domestic growth will be driven by continued expansion of the electric motorcycle segment, including the upcoming launch of a new female-focused product line and deeper penetration of existing popular product families. Management also expects to improve ASP and margin profiles for the e-bicycle segment via the launch of a refreshed mid-to-high-end compliant product lineup integrated with AI features.
• International business guidance calls for continued steady structural growth of the core electric motorcycle segment, with further margin expansion from higher penetration of 125cc+ premium models. The legacy micro mobility segment is expected to complete inventory normalization by the end of 2026, following the conclusion of active promotional clearance in Q3.

• Domestic market risks: Ongoing industry-wide contraction in the premium e-bicycle segment driven by new national standard regulation and weak consumer demand in top-tier Chinese cities creates structural headwinds for this historical core business. Elevated upstream raw material prices continue to put pressure on product costs and gross margins.
• International business risks: Completed inventory clearance for legacy micro mobility products created short-term gross margin compression, and foreign exchange volatility created unexpected losses on foreign currency-denominated assets (specifically accounts receivable) in Q2 2026. General macroeconomic and market uncertainties across international regions create risks for expansion plans.
• Overall, management acknowledges that forward-looking results are subject to material deviation from current expectations due to these and other unforeseen risks, as disclosed in the company's SEC filings.

No investor questions were submitted during the Q&A portion of the call, so no exchanges occurred.