Niu Technologies (NIU) Reports Q1 Loss of $0.05 on Revenues of $7.76M

Niu Technologies (NASDAQ: NIU) reported Q1 EPS of ($0.05). Revenue for the quarter came in at $7.76 million.

First Quarter 2020 Financial Highlights

• Revenues were RMB 232.9 million, a decrease of 34.4% year over year
• Gross margin was 23.6%, compared with 21.3% in the first quarter of last year
• Net loss was RMB 26.4 million, compared with net income of RMB 12.0 million in the first quarter of last year
• Adjusted net loss (non-GAAP)1 was RMB 18.6 million, compared with adjusted net income of RMB 14.6 million in the first quarter of last year

First Quarter 2020 Operating Highlights

• The number of e-scooters sold reached 40,160, down 39.4% year over year
• The number of e-scooters sold in China reached 34,316, down 43.5% year over year
• The number of e-scooters sold in the international markets reached 5,844, up 5.9%2 year over year
• The number of franchised stores in China was 1,033, a decrease of 17 since December 31, 2019
• International sales network expanded to 33 distributors covering 42 countries

Dr. Yan Li, Chief Executive Officer of the Company, commented: “Many aspects of our operations were harmed as a result of the ongoing pandemic of the novel coronavirus. We prioritized the health and safety of our employees, and took various preventative and quarantine measures across our company soon after the outbreak. Due to the strict measures in response to the outbreak, we had to reduce work resumption rate in February and March of 2020. We are pleased to see demand is recovering in China and our China sales are expected to return to healthy growth in the second quarter. Our operations in the international markets continued to be affected. Our retail sales network expansion has been temporarily suspended. Since May, distributors and dealers in selective international markets resumed operation and we are working closely with them to re-activate our expansion plans.”

Dr. Li continued, “In May 2020, we launched a new product MQi2, NIU’s flagship product under the new national standard of electric bicycle in China. The MQi2 inherits the design language of MQi series of being classic and fashionable. It is also equipped with our most advanced technologies. Simultaneously with new product launch, the NIU app was upgraded to 4.0 version, which is optimized for better interactive experience, higher accuracy of GPS positioning and anti-theft security. We plan to launch another model under the Gova series in June. We are very excited about the enriched product portfolio and look forward to the continued growth of our business.”

Business Outlook
NIU expects revenues of the second quarter 2020 to be in the range of RMB 585 million to RMB 655 million, representing a year-over-year increase of 10% to 23%.

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.

For earnings history and earnings-related data on Niu Technologies (NIU) click here.

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