U.S. Markets open in 7 hrs 57 mins
  • S&P Futures

    4,383.50
    -11.00 (-0.25%)
     
  • Dow Futures

    34,831.00
    -122.00 (-0.35%)
     
  • Nasdaq Futures

    14,905.00
    -42.75 (-0.29%)
     
  • Russell 2000 Futures

    2,185.00
    -1.70 (-0.08%)
     
  • Crude Oil

    71.99
    +0.34 (+0.47%)
     
  • Gold

    1,804.50
    +4.70 (+0.26%)
     
  • Silver

    24.83
    +0.19 (+0.75%)
     
  • EUR/USD

    1.1820
    -0.0006 (-0.0473%)
     
  • 10-Yr Bond

    1.2340
    0.0000 (0.00%)
     
  • Vix

    19.36
    +1.78 (+10.13%)
     
  • GBP/USD

    1.3867
    -0.0012 (-0.0874%)
     
  • USD/JPY

    109.7950
    +0.0280 (+0.0255%)
     
  • BTC-USD

    40,002.20
    +2,861.26 (+7.70%)
     
  • CMC Crypto 200

    935.86
    +59.63 (+6.81%)
     
  • FTSE 100

    6,996.08
    -29.35 (-0.42%)
     
  • Nikkei 225

    27,509.85
    -460.37 (-1.65%)
     

Niu Technologies Announces First Quarter 2021 Financial Results

·20 min read

-- First Quarter Total volume of e-scooter sales up 272.6% year over year

-- First Quarter Revenues of RMB 547.3 million, up 135.0% year over year

-- First Quarter Net Loss of RMB 5.4 million, compared with net loss of RMB 26.4 million in the first quarter of last year

BEIJING, May 17, 2021 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced its financial results for the first quarter 2021.

First Quarter 2021 Financial Highlights

  • Revenues were RMB 547.3 million, an increase of 135.0% year over year

  • Gross margin was 23.8%, compared with 23.6% in the first quarter of last year

  • Net loss was RMB 5.4 million, compared with net loss of RMB 26.4 million in the first quarter of last year

  • Adjusted net income (non-GAAP)1 was RMB 6.7 million, compared with adjusted net loss of RMB 18.6 million in the first quarter of last year

First Quarter 2021 Operating Highlights

  • The number of e-scooters sold reached 149,649, up 272.6% year over year

  • The number of e-scooters sold in China reached 144,654, up 321.5% year over year

  • The number of e-scooters sold in the international markets reached 4,995, down 14.5% year over year

  • The number of franchised stores in China was 1,916, an increase of 300 since December 31, 2020

  • International sales network expanded to 39 distributors covering 48 countries

Dr. Yan Li, Chief Executive Officer of the Company, commented: “Our sales volume increased by 272.6% in the first quarter driven by retail network expansion and effective branding and marketing activities in China. The international sales volume however decreased mainly due to COVID-19, especially the recent lockdowns in Europe, and a more challenging environment for international shipping. Since April, the international markets began to recover gradually, and we delivered approximately 3,800 units in April”.

Dr. Li continued, “on April 6th, we launched 4 new products, F0, F2, F4 and C0 models, in the e-scooter category mainly for the China market, and one new product series, the KQi, entering the kick-scooter category mainly for international markets. We began the pre-sale for the F0 model from April 6th and received more than 41,000 orders throughout April. Considering the recent raw materials cost increase, on May 6th, we increased retail sales price by RMB 100 to 300, or 1.5% to 7.5% for selected models in China market and we may do so for additional models with performance upgrades in the coming months. We are very excited about the growth prospective of our business and look forward to the continued growth.”

First Quarter 2021 Financial Results

Revenues were RMB 547.3 million, an increase of 135.0% year over year, due to higher sales volume of 272.6%, partially offset by decreased revenues per e-scooter of 35.8%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

Revenues
(in RMB million)

2021
Q1

2020
Q1

% change YoY

E-scooter sales from China market

406.3

132.2

+207.3%

E-scooter sales from international markets

38.9

53.8

-27.7%

E-scooter sales, sub-total

445.2

186.0

+139.3%

Accessories, spare parts and services

102.1

46.9

+117.6%

Total

547.3

232.9

+135.0%


Revenues per e-scooter
(in RMB)

2021
Q1

2020
Q1

% change
YoY

E-scooter sales from China market2

2,809

3,853

-27.1%

E-scooter sales from international markets2

7,786

9,203

-15.4%

E-scooter sales

2,975

4,632

-35.8%

Accessories, spare parts and services3

682

1,168

-41.6%

Revenues per e-scooter

3,657

5,800

-36.9%

  • E-scooter sales revenues from China market were RMB 406.3 million, an increase of 207.3%, and represented 91.3% of total e-scooter revenues. The increase was mainly driven by retail network expansion and effective branding and marketing activities in China.

  • E-scooter sales revenues from international markets were RMB 38.9 million, a decrease of 27.7%, and represented 8.7% of total e-scooter revenues. The decrease was mainly caused by COVID-19 and by a more challenging environment for international shipping.

  • Accessories, spare parts and services revenues were RMB 102.1 million, an increase of 117.6% and represented 18.7% of total revenues. The increase was mainly driven by higher e-scooter sales volume in China and higher spare parts sales from international markets.

  • Decreased revenues per e-scooter was mainly due to 1) in China market, the sales of product G0 which has a lower sales price compared with other models; 2) in international markets, the depreciation of US dollar against RMB and 3) lower revenues per e-scooter from accessories, spare parts and services as a result of the much faster growth in e-scooters sales volume this quarter, especially considering the low sales volume in Q1 2020 due to the impact of COVID-19. Comparing with Q4 2020, the revenues per e-scooter from accessories, spare parts and services increased by 8.4%.

Cost of revenues was RMB 417.0 million, an increase of 134.2% year over year, mainly due to higher e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, was RMB 2,787, down 37.1% from RMB 4,433 in the first quarter 2020 mainly due to change in product mix.

Gross margin was 23.8%, compared with 23.6% in the same period of 2020. The increase was mainly due to cost savings, partially offset by change in product mix.

Operating expenses were RMB 130.4 million, an increase of 43.1% from the same period of 2020. Operating expenses as a percentage of revenues was 23.8%, compared with 39.1% in the first quarter of 2020.

  • Selling and marketing expenses were RMB 73.5 million (including RMB 3.0 million of share-based compensation), an increase of 66.4% from RMB 44.2 million in the first quarter of 2020. The increase was mainly due to the increase in advertising and promotion expense of RMB 20.3 million, the increase in depreciation and amortization expense of RMB 4.2 million which was due to opening of new franchised stores, the increase in staff cost of RMB 2.7 million, the increase of share-based compensation expenses of RMB 1.4 million, and the increase of online sales promotion expense of RMB 0.4 million. Selling and marketing expenses as a percentage of revenues was 13.4% compared with 19.0% in the first quarter of 2020.

  • Research and development expenses were RMB 25.6 million (including RMB 4.0 million of share-based compensation), an increase of 12.6% from RMB 22.7 million in the first quarter of 2020, mainly due to the increase in staff cost of RMB 4.3 million, the increase in share-based compensation expenses of RMB 2.0 million, and the increase in depreciation and amortization expense and professional fee of RMB 0.4 million. The higher expenses were partially offset by the decrease in design expense of RMB 4.2 million. Research and development expenses as a percentage of revenues was 4.7%, compared with 9.8% in the first quarter of 2020.

  • General and administrative expenses were RMB 31.3 million (including RMB 4.8 million of share-based compensation), an increase of 29.1% from RMB 24.2 million in the first quarter of 2020, mainly due to the increase in foreign currency exchange loss of RMB 5.7 million, the increase in staff cost of RMB 1.6 million, and the increase in tax and surcharges of RMB 1.3 million. The higher expenses were partially offset by the decrease of rental expense of RMB 1.4 million. General and administrative expenses as a percentage of revenues was 5.7%, compared with 10.4% in the first quarter of 2020.

Operating expenses excluding share-based compensation were RMB 118.6 million, increased by 42.0% year over year, and represented 21.7% of revenues, compared with 35.8% in the first quarter of 2020.

  • Selling and marketing expenses excluding share-based compensation were RMB 70.5 million, an increase of 65.6% year over year, and represented 12.9% of revenues, compared with 18.3% in the first quarter of 2020.

  • Research and development expenses excluding share-based compensation were RMB 21.6 million, an increase of 4.1% year over year, and represented 3.9% of revenues, compared with 8.9% in the first quarter of 2020.

  • General and administrative expenses excluding share-based compensation were RMB 26.5 million, an increase of 31.3% year over year, and represented 4.8% of revenues, compared with 8.7% in the first quarter of 2020.

Government grants were RMB 0.4 million, decreased by RMB 6.9 million from the same period of 2020.

Share-based compensation was RMB 12.1 million, an increase of RMB 4.3 million from the same period of 2020.

Income tax expense was RMB 9.2 million, compared with income tax benefit of RMB 0.2 million in the same period of 2020.

Net loss was RMB 5.4 million, compared with net loss of RMB 26.4 million in the first quarter of 2020. The net loss margin was 1.0%, compared with net loss margin of 11.3% in the same period of 2020.

Adjusted net income (non-GAAP) was RMB 6.7 million, compared with adjusted net loss (non-GAAP) of RMB 18.6 million in the first quarter of 2020. The adjusted net income margin4 was 1.2%, compared with adjusted net loss margin of 8.0% in the same period of 2020.

Basic and diluted net loss per ADS were both RMB 0.07 (US$ 0.01).

Balance Sheet

As of March 31, 2021, the Company had cash, term deposits and short-term investments of RMB 1,019.6 million in aggregate. The Company had restricted cash of RMB 178.3 million and short-term bank borrowings of RMB 180.0 million.

Business Outlook
NIU expects revenues of the second quarter 2021 to be in the range of RMB 900 million to RMB 1,030 million, representing a year-over-year increase of 40% to 60%.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectation, which is subject to change in light of uncertainties and situations related to how COVID-19 develops.

Conference Call

The Company will host an earnings conference call on Monday, May 17, 2021 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time) to discuss its first quarter 2021 financial and business results and provide a corporate update.

To join via phone, participants need to register in advance of the conference call using the link provided below. Upon registration, participants will receive dial-in numbers, an event passcode, and a unique registrant ID, which will be used to join the conference call.

Event:

Niu Technologies First Quarter 2021 Earnings Conference Call

Registration Link:

http://apac.directeventreg.com/registration/event/4984085

Conference ID:

4984085

A live and archived webcast of the conference call will be available on the investor relations website at https://ir.niu.com/news-and-events/webcasts-and-presentations.

A replay of the conference call can be accessed by phone two hours later at the following numbers until May 25, 2021.

United States

+1-855-452-5696

International

+61-281-990-299

Hong Kong

800-963-117

Mainland China

400-602-2065

Conference ID

4984085

About NIU

As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric motorcycles, mopeds, bicycles and kick-scooters. NIU has a product portfolio consisting of eight series, four e-scooter series, including NQi, MQi and UQi with smart functions and Gova, two urban commuter electric motorcycles series RQi and TQi, a performance bicycle series, NIU Aero, and a kick-scooter series, KQi. Different series of products address the needs of different segments of modern urban residents and resolve the demands of different scenarios of urban travel, while being united through a common design language that emphasizes style, freedom and technology. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to offer the products and services. For more information, please visit www.niu.com.

Use of Non-GAAP Financial Measures

To supplement NIU’s consolidated financial results presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), NIU uses the following non-GAAP financial measures: adjusted net income and adjusted net income margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

NIU believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to NIU’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Adjusted net income is defined as net income excluding share-based compensation expenses. Adjusted net income margin is defined as adjusted net income as a percentage of the revenues.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP and Non-GAAP Results.”

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the readers. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 6.5518 to US$ 1.00, the exchange rate in effect as of March 31, 2021, as set forth in the H.10 Statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as NIU’s strategic and operational plans, contain forward-looking statements. NIU may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIU’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIU’s strategies; NIU’s future business development, financial condition and results of operations; NIU’s ability to maintain and enhance its “NIU” brand; its ability to innovate and successfully launch new products and services; its ability to maintain and expand its offline distribution network; its ability to satisfy the mandated safety standards relating to e-scooters; its ability to secure supply of components and raw materials used in e-scooters; its ability to manufacture, launch and sell smart e-scooters meeting customer expectations; its ability to grow collaboration with operation partners; its ability to control costs associated with its operations; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIU’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and NIU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact:

Niu Technologies
Jason Yang
Investor Relations Manager
E-mail: ir@niu.com

NIU TECHNOLOGIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of

December 31,

March 31,

March 31,

2020

2021

2021

RMB

RMB

US$

ASSETS

Current assets

Cash

227,004,137

182,793,981

27,899,811

Term deposits-current

130,498,000

131,426,000

20,059,526

Restricted cash

168,469,077

178,251,503

27,206,493

Short-term investments

745,608,877

635,375,784

96,977,286

Accounts receivable, net

101,320,063

42,574,776

6,498,180

Inventories

142,166,179

173,086,301

26,418,130

Prepayments and other current assets

32,832,088

74,022,879

11,298,098

Total current assets

1,547,898,421

1,417,531,224

216,357,524

Non-current assets

Term deposits-non-current

-

70,000,000

10,684,087

Property, plant and equipment, net

199,045,061

258,115,017

39,396,046

Intangible assets, net

5,607,101

5,158,432

787,331

Operating lease right-of-use assets, net

-

103,448,824

15,789,375

Land use rights, net

48,835,120

-

-

Deferred income tax assets

14,593,376

13,287,411

2,028,055

Other non-current assets

30,830,304

3,256,884

497,098

Total non-current assets

298,910,962

453,266,568

69,181,992

Total assets

1,846,809,383

1,870,797,792

285,539,516

LIABILITIES

Current liabilities

Short-term bank borrowings

180,000,000

180,000,000

27,473,366

Accounts payable

395,826,435

352,517,661

53,804,704

Income taxes payable

14,555,094

1,239,773

189,226

Advances from customers

40,062,189

53,157,038

8,113,349

Deferred revenue-current

21,155,634

22,855,386

3,488,413

Accrued expenses and other current liabilities

171,657,604

206,997,180

31,593,941

Total current liabilities

823,256,956

816,767,038

124,662,999

Deferred revenue-non-current

4,176,458

5,226,689

797,749

Deferred income tax liabilities

1,109,479

1,263,338

192,823

Operating lease liabilities-non-current

-

19,499,249

2,976,167

Other non-current liabilities

24,892,246

24,773,991

3,781,251

Total non-current liabilities

30,178,183

50,763,267

7,747,990

Total liabilities

853,435,139

867,530,305

132,410,989

SHAREHOLDERS’ EQUITY:

Class A ordinary shares

87,300

87,423

13,343

Class B ordinary shares

11,202

11,202

1,710

Additional paid-in capital

1,801,940,071

1,814,102,842

276,886,175

Accumulated other comprehensive loss

(43,016,027

)

(39,912,111

)

(6,091,778

)

Accumulated deficit

(765,648,302

)

(771,021,869

)

(117,680,923

)

Total shareholders’ equity

993,374,244

1,003,267,487

153,128,527

Total liabilities and shareholders’ equity

1,846,809,383

1,870,797,792

285,539,516


NIU TECHNOLOGIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

2020

2021

RMB

RMB

US$

Revenues

232,940,508

547,336,565

83,539,877

Cost of revenues(a)

(178,023,007

)

(417,002,269

)

(63,646,978

)

Gross profit

54,917,501

130,334,296

19,892,899

Operating expenses:

Selling and marketing expenses(a)

(44,172,610

)

(73,518,484

)

(11,221,112

)

Research and development expenses(a)

(22,735,585

)

(25,609,234

)

(3,908,733

)

General and administrative expenses(a)

(24,249,242

)

(31,313,799

)

(4,779,419

)

Total operating expenses

(91,157,437

)

(130,441,517

)

(19,909,264

)

Government grants

7,265,883

352,342

53,778

Operating income (loss)

(28,974,053

)

245,121

37,413

Interest expense

(2,172,474

)

(1,732,700

)

(264,462

)

Interest income

2,989,437

1,216,578

185,686

Investment income

1,593,055

4,128,940

630,199

Income (loss) before income taxes

(26,564,035

)

3,857,939

588,836

Income tax benefit (expense)

188,109

(9,231,506

)

(1,409,003

)

Net loss

(26,375,926

)

(5,373,567

)

(820,167

)

Other comprehensive loss

Foreign currency translation adjustment

6,486,957

2,903,736

443,197

Unrealized gain on available for sale securities, net

523,696

200,180

30,553

Comprehensive loss

(19,365,273

)

(2,269,651

)

(346,417

)

Net loss per ordinary share

—Basic

(0.18

)

(0.04

)

(0.01

)

—Diluted

(0.18

)

(0.04

)

(0.01

)

Net loss per ADS

—Basic

(0.35

)

(0.07

)

(0.01

)

—Diluted

(0.35

)

(0.07

)

(0.01

)

Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net loss per ordinary share

—Basic

149,701,680

152,645,455

152,645,455

—Diluted

149,701,680

152,645,455

152,645,455

Weighted average number of ADS outstanding used in computing net loss per ADS

—Basic

74,850,840

76,322,728

76,322,728

—Diluted

74,850,840

76,322,728

76,322,728

Note:

(a) Includes share-based compensation expense as follows:

Three Months Ended March 31,

2020

2021

RMB

RMB

US$

Cost of revenues

76,622

183,337

27,983

Selling and marketing expenses

1,602,642

3,031,862

462,753

Research and development expenses

1,972,691

4,001,487

610,746

General and administrative expenses

4,084,222

4,837,552

738,355

Total share-based compensation expense

7,736,177

12,054,238

1,839,837


NIU TECHNOLOGIES

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

Three Months Ended December 31,

2020

2021

RMB

RMB

US$

Net loss

(26,375,926

)

(5,373,567

)

(820,167

)

Add:

Share-based compensation expense

7,736,177

12,054,238

1,839,837

Adjusted net income (loss)

(18,639,749

)

6,680,671

1,019,670


_________________________
1
Adjusted net income/loss (non-GAAP) is defined as net income/loss excluding share-based compensation expense.
2 Revenues per e-scooter on e-scooter sales from China or international markets is defined as e-scooter sales revenues from China or international markets divided by the number of e-scooters sold in China or international market in a specific period
3 Revenues per e-scooter on accessories, spare parts and services is defined as accessories, spare parts and services revenues divided by the total number of e-scooters sold in a specific period
4 Adjusted net income/loss margin is defined as adjusted net income/loss (non-GAAP) as a percentage of the revenues.