As the auto industry reels under the impact of the COVID-19 pandemic this year, an electric scooter firm has posted big rises in revenues and income.
Niu Technologies has announced its financial results for the second quarter 2020 which include revenue up 21.6% and adjusted net income up 25%. E-scooter sales were up 61%, boosted by strong sales in China.
Second Quarter 2020 Financial Highlights for Niu:
- Revenues were RMB 644.9 million, an increase of 21.6% year over year
- Gross margin was 23.0%, compared with 23.7% in the second quarter of last year
- Net income was RMB 56.8 million, compared with RMB 51.0 million in the second quarter of last year
- Adjusted net income (non-GAAP)1 was RMB 67.8 million, compared with RMB 54.1 million in the second quarter of last year
Second Quarter 2020 Operating Highlights
- The number of e-scooters sold reached 160,138, up 61.2% year over year
- The number of e-scooters sold in China reached 154,959, up 81.0% year over year
- The number of e-scooters sold in the international markets reached 5,179, down 62.3% year over year
- The number of franchised stores in China was 1,084, an increase of 51 since March 31, 2020
- International sales network expanded to 35 distributors covering 45 countries
Dr. Yan Li, Chief Executive Officer of the Company, commented: “We are very pleased to see the strong recovery in China. Our China sales volume increased by 81% year over year driven by retail network expansion and new product launches. Our international sales decreased in the second quarter due to the continued impact from COVID-19. Since May, our overseas dealer shops gradually reopened and we expect to see recovery in the coming quarters. In light of the prospective volume growth, the Company made prepayment in May to acquire land use right of a new piece of land for future capacity expansion. Despite lower international sales and price discounts offered during new product launches, our gross margin reached 23% as a result of our continued cost optimization initiatives.”
Dr. Li continued, “In May and June, we launched two new models under Gova series, the G0 and G2. The Gova series is targeted at the mid-end e-scooter market, representing good value for money and high quality. The design language is differentiated in comparison to our main e-scooter lines. Both products were well received by the customers and we sold more than 26,000 units of these two products during the second quarter. In July, we launched MQiS, another new model under the MQi series. The MQiS inherits the design language of MQi series of being classic and fashionable. This model complies with the new national standard of electric bicycle in China. We are very excited about the enriched product portfolio and look forward to the continued growth of our business.”
In July 2020, NIU sold 70,685 e-scooters, representing a 63.7% year-over-year growth. The number of e-scooters sold in China market reached 67,883, representing a 64.1% year-over-year growth, despite adverse weather conditions in certain parts of China. The number of e-scooters sold in the international markets reached 2,802, representing a 56.1% year-over-year growth.