Niu Technologies Q3 FY2024 earnings call

• Q3 2024 showed continuous growth in sales volume and revenue. China market had 12.4% y-o-y growth, overseas market 50% y-o-y. • Launched new product series in China like NX and FX series, and in overseas market expanded retail networks and introduced new products. • Challenges in China due to new battery safety standard affecting sell-in orders and product mix. • Overseas micro mobility segment grew with expanded sales networks and new product launches. • Focus on channel profitability, store expansion, and online-to-offline operations.

Total sales volume in Q3 2024 was 312,000 units, up 17.5% year-over-year. China market sales volume was 259,000 units, up 12.4% year-over-year; overseas market sales volume was 53,000 units, up 50% year-over-year. Total revenue was RMB1.02 billion, up 10.5% year-over-year. China revenue was RMB880 million, accounting for 86% of total revenue; overseas revenue was RMB144 million, accounting for 14% of total revenue. Gross margin for Q3 was 13.8%, 7.6 ppt lower than the same period last year and 3.2 ppt lower than the previous quarter.

Expected Q4 revenue to be in the range of RMB 622 million to RMB 718 million, an increase of 30% to 50% year-over-year.

• Tariffs on kick scooters in the US affecting margins. • Impact of China's new battery safety standard on product mix and sales. • Supply chain complexities in adjusting production for tariff situations.

Q: Concern about domestic average selling price trend post-new standard.

A: Yan Li expects ASP to rise with new standard requiring new materials.

Q: Trend of gross margin.

A: Yan Li states Q3 was low due to international kick scooter tariffs and China's new standard impact; expected recovery in Q4 and 2025.

Q: Kick scooters overseas sales volume and outlook.

A: First three quarters ~120-130k units, expected 160-170k units in 2024; next year 50%-60% growth.