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Niu Technologies reports rise in Q3 sales volume

Published 10/05/2024, 04:14 AM
NIU
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BEIJING - Niu Technologies (NASDAQ: NASDAQ:NIU), a global leader in smart urban mobility solutions, has announced an increase in its sales volume for the third quarter of 2024. The company sold 312,405 units across its product range, which includes e-motorcycles, e-mopeds, e-bicycles, kick-scooters, and e-bikes, marking a significant rise from the 265,923 units sold in the same period last year.

In China, the company's sales reached 259,094 units, with the NT model becoming particularly popular, accounting for nearly 20% of the quarter's total sales in the region. The NT model is known for its combination of design and functionality, with features such as keyless ignition and TCS traction control. New models launched by the company have contributed to over 60% of the total sales this quarter.

Niu Technologies has also been actively engaging with younger consumers and women through various marketing strategies. These include a collaboration with JDG and the integration of its FX model with the game "Game for Peace" to enhance brand interaction, as well as leveraging KOL content marketing and influencer events on platforms like Xiaohongshu.

Internationally, the company's sales volume stood at 53,311 units, with new models like the K100 and K300 gaining traction in the EU, North America, and Asia Pacific markets. These models, known for their upgraded smart functions and enhanced safety features, represented over 50% of the international sales for the quarter.

The sales volume figures are based on deliveries from the manufacturing facility and may slightly differ from the financial accounting and reporting perspective. Niu Technologies emphasizes that sales volume is just one aspect of its financial performance and should not be considered an indicator of quarterly financial results, which are influenced by various factors including revenues from accessories, spare parts, and services, cost of sales, and operating expenses.

The company continues to innovate and expand its product portfolio, catering to diverse urban travel needs with its electric motorcycle, moped, bicycle, kick-scooter, and e-bike series. Niu Technologies operates through an omnichannel retail model, integrating offline and online channels to sell products and provide services.

This news is based on a press release statement from Niu Technologies, and it reflects the company's sales performance and strategic initiatives during the third quarter of 2024.

In other recent news, Niu Technologies announced a notable increase in Q2 sales and revenue, marking a 21% year-over-year growth in total sales volume. This growth was seen in both domestic and international markets, with the company selling 207,000 units in China and 48,600 units overseas. The total revenue for the quarter reached RMB 940.5 million, a 13.5% increase from the previous year. Despite a challenging market environment, Niu Technologies managed to expand its product portfolio and sales channels.

However, the company reported a net loss of RMB 25 million and a decrease in gross margin to 17%. Looking ahead, Niu Technologies anticipates Q3 revenue to be between RMB 1,298 million and RMB 1,483 million, a year-over-year increase of 40% to 60%. The company also plans to open approximately 1,000 new stores and is relocating part of its manufacturing due to changing import tariffs. These recent developments suggest Niu Technologies is positioning itself for continued growth in the global micro-mobility landscape.

InvestingPro Insights

Niu Technologies' recent sales volume increase aligns with several key financial metrics and trends highlighted by InvestingPro. The company's revenue growth of 13.47% in the most recent quarter, as reported by InvestingPro, supports the positive sales momentum mentioned in the article. This growth is particularly noteworthy given the company's -5.33% revenue decline over the last twelve months, suggesting a potential turnaround in its market performance.

InvestingPro Tips indicate that NIU is trading near its 52-week high and has shown significant returns over the last week, month, and three months. These trends correlate with the company's reported sales success, especially with new models contributing to over 60% of total sales in China and over 50% internationally.

However, investors should note that despite the sales volume increase, NIU is not currently profitable, with a negative operating income of -$47.5 million over the last twelve months. This underscores the importance of monitoring how the increased sales translate into financial performance in upcoming quarters.

For those interested in a deeper analysis, InvestingPro offers 11 additional tips for NIU, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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