-- First Quarter Revenues of RMB 682.0 million, increase 35.1% year over year

-- First Quarter Net Loss of RMB 38.8 million, compared to net loss of RMB 54.8 million in the same period of last year

BEIJING, May 19, 2025 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU", or "the Company") $(NIU)$, the world's leading provider of smart urban mobility solutions, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

   -- Revenues were RMB 682.0 million, an increase of 35.1% year over year 
 
   -- Gross margin was 17.3%, compared with 18.9% in the first quarter of 2024 
 
   -- Net loss was RMB 38.8 million, compared with net loss of RMB 54.8 million 
      in the first quarter of 2024 
 
   -- Adjusted net loss (non-GAAP)1 was RMB 31.4 million, compared with 
      adjusted net loss of RMB 48.5 million in the first quarter of 2024 

First Quarter 2025 Operating Highlights

   -- The number of e-scooters sold was 203,313, up 57.4% year over year 
 
   -- The number of e-scooters sold in China was 183,065, up 66.2% year over 
      year 
 
   -- The number of e-scooters sold in the international markets was 20,248, up 
      6.4% year over year 
 
   -- The number of franchised stores in China was 4,119 as of March 31, 2025 
 
   -- The number of distributors in our international sales network was 57, 
      covering 53 countries as of March 31, 2025 

Dr. Yan Li, Chief Executive Officer of the Company, remarked: "In China, we are advancing our intelligent product development strategy by integrating automotive-grade technologies such as millimeter-wave radar, dual-channel ABS, and AI Smart Ecosystem to enhance the user experience. Our retail network has continued to expand in-line with our expectations, with new stores opening during the quarter. This synergistic combination of product innovation and omni-channel growth is driving measurable increases in domestic sales and market penetration."

Dr. Li continued, "Globally, the market is undergoing structural shifts, with U.S. trade policies experiencing increased volatility. However, we are leveraging innovation and agile infrastructure to mitigate geopolitical challenges, enabling sustainable global growth through proactive production adjustments."

First Quarter 2025 Financial Results

Revenues reached RMB 682.0 million, representing a 35.1% increase year-over-year. This growth was mainly driven by a 57.4% increase in sales volume, partially offset by a 14.2% decrease in revenues per e-scooter. The following table shows the revenue breakdown and revenues per e-scooter in the periods presented:

 
Revenues                                      2025   2024    % change 
 (in RMB million)                               Q1     Q1       YoY 
-------------------------------------------   -----  -----  ---------- 
E-scooter sales from China market             546.4  392.9   +39.1% 
E-scooter sales from international markets     60.0   49.0   +22.4% 
                                                     -----  ------ 
E-scooter sales, sub-total                    606.4  441.9   +37.2% 
Accessories, spare parts and services          75.6   62.8   +20.3% 
--------------------------------------------  -----  -----  ------ 
Total                                         682.0  504.7   +35.1% 
 
 
Revenues per e-scooter                          2025   2024    % change 
 (in RMB)                                         Q1     Q1       YoY 
---------------------------------------------   -----  -----  ---------- 
E-scooter sales from China market(2)            2,985  3,568   -16.3% 
E-scooter sales from international markets(2)   2,962  2,577   +14.9% 
----------------------------------------------  -----  -----  ------ 
E-scooter sales                                 2,983  3,422   -12.8% 
Accessories, spare parts and services(3)          371    486   -23.7% 
----------------------------------------------  -----  -----  ------ 
Revenues per e-scooter                          3,354  3,908   -14.2% 
 
 
   -- E-scooter sales revenues from China market were RMB 546.4 million, an 
      increase of 39.1% year-over-year, and represented 90.1% of total 
      e-scooter revenues. The increase was mainly due to the increased sales 
      volume, partially offset by decreased revenues per e-scooter in China 
      market. 
   -- E-scooter sales revenues from international markets were RMB 60.0 million, 
      an increase of 22.4% year-over-year, and represented 9.9% of total 
      e-scooter revenues. The increase was mainly due to the increased sales 
      volume of electric motorcycle and moped with higher sales price in 
      international markets. 
   -- Accessories, spare parts sales and services revenues were RMB 75.6 
      million, an increase of 20.3% year-over-year, and represented 11.1% of 
      total revenues. The increase was mainly due to an increase in accessories 
      and spare parts sales in both China and international markets. 
   -- Revenues per e-scooter was RMB 3,354, a decrease of 14.2% year-over-year, 
      mainly due to decreased revenues per e-scooter in China market. 

Cost of revenues was RMB 563.9 million, an increase of 37.8% year-over-year, in line with the growth trend of revenues. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specific period, was RMB 2,774, a decrease of 12.5% from RMB 3,169 in the first quarter of 2024. This decrease was mainly due to changes in product mix, along with the cost-reduction impact in China market.

Gross margin was 17.3%, compared with 18.9% in the same period of 2024. The decrease was mainly attributable to the international market, including changes in the product mix of kick-scooters, higher freight costs and tariffs, and inventory write-downs. This was partially offset by increased gross margin in China market, reflecting the positive impact of cost-reduction initiatives.

Operating expenses were RMB 165.1 million, a slight increase of 0.1% year over year. Operating expenses as a percentage of revenues was 24.2%, compared with 32.7% in the first quarter of 2024.

   -- Selling and marketing expenses were RMB 114.6 million (including RMB 1.7 
      million of share-based compensation), an increase of 8.8% from RMB 105.3 
      million in the first quarter of 2024, mainly due to the increase of RMB 
      6.7 million in staff cost, RMB 6.6 million in advertising and promotion 
      activities and RMB 5.4 million in rental expenses, partially offset by 
      the decrease of RMB 10.2 million in depreciation and amortization. 
      Selling and marketing expenses as a percentage of revenues was 16.8%, 
      compared with 20.9% in the first quarter of 2024. 
 
   -- Research and development expenses were RMB 29.8 million (including RMB 
      2.6 million of share-based compensation), an increase of 3.0% from RMB 
      28.9 million in the first quarter of 2024, mainly due to an increase of 
      RMB 0.9 million in design and testing expenses. Research and development 
      expenses as a percentage of revenues was 4.4%, compared with 5.7% in the 
      first quarter of 2024. 
 
   -- General and administrative expenses were RMB 20.7 million (including RMB 
      2.9 million of share-based compensation), a decrease of 32.5% from RMB 
      30.6 million in the first quarter of 2024, mainly due to an increase in 
      foreign exchange gain of RMB 10.8 million. General and administrative 
      expenses as a percentage of revenues was 3.0%, compared with 6.1% in the 
      first quarter of 2024. 

Operating expenses excluding share-based compensation were RMB 157.8 million, a slight decrease of 0.7% year over year, and represented 23.1% of revenues, compared with 31.5% in the first quarter of 2024.

   -- Selling and marketing expenses excluding share-based compensation were 
      RMB 112.9 million, an increase of 9.3% year over year, and represented 
      16.6% of revenues, compared with 20.5% in the first quarter of 2024. 
 
   -- Research and development expenses excluding share-based compensation were 
      RMB 27.2 million, a decrease of 1.1% year over year, and represented 4.0% 
      of revenues, compared with 5.4% in the first quarter of 2024. 
 
   -- General and administrative expenses excluding share-based compensation 
      were RMB 17.7 million, a decrease of 36.9% year over year, and 
      represented 2.6% of revenues, compared with 5.6% in the first quarter of 
      2024. 

Share-based compensation was RMB 7.5 million, compared with RMB 6.3 million in the same period of 2024.

Income tax benefit was RMB 2.2 million, compared with income tax benefit of RMB 6.2 million in the same period of 2024.

Net loss was RMB 38.8 million, compared with net loss of RMB 54.8 million in the first quarter of 2024. The net loss margin was 5.7%, compared with net loss margin of 10.9% in the same period of 2024.

Adjusted net loss (non-GAAP) was RMB 31.4 million, compared with an adjusted net loss of RMB 48.5 million in the first quarter of 2024. The adjusted net loss margin(4) was 4.6%, compared with an adjusted net loss margin of 9.6% in the same period of 2024.

Basic and diluted net loss per ADS were both RMB 0.49 (US$ 0.07).

Balance Sheet

As of March 31, 2025, the Company had cash and cash equivalents and term deposits of RMB 747.2 million in aggregate. The Company had restricted cash of RMB 215.3 million and short-term bank borrowings of RMB 220.0 million.

Business Outlook

NIU expects revenues of the second quarter 2025 to be in the range of RMB 1,317 million to RMB 1,411 million, representing a year-over-year increase of 40% to 50%.

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 and is subject to change.

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