Niu Technologies Clocks 5% Revenue Growth In Q1, Notes Margin Pressure

  • Niu Technologies ADR NIU reported first-quarter FY22 sales growth of 5.1% year-on-year, to RMB 575.5 million ($90.78 million).
  • The number of e-scooters sold increased 9.4% Y/Y to 163,659, with sales in China rising by 3%.
  • International e-scooters sales jumped 193.7% to 14,672.
  • The number of franchised stores in China was 3,248 as of March 31, 2022, an increase of 140 from December 31, 2021.
  • The gross margin for the quarter declined 470 basis points Y/Y to 19.1%.
  • The operating loss for the quarter was RMB (33) million versus an operating income of RMB (0.25) million.
  • Earnings per ADS were $(0.06). The adjusted net loss was RMB (16.3) million versus an income of RMB (6.7) million last year.
  • The company held RMB 889.6 million in cash and equivalents as of March 31, 2022.
  • "The ongoing increase in raw materials prices, especially lithium-ion battery prices in Q1, has created extra pressure on our gross margin," said CEO Yan Li.
  • Outlook: NIU expects Q2 revenues of RMB 803 million - RMB 945 million, representing a year-over-year decrease of about 15% to flat.
  • Price Action: NIU shares are trading lower by 3.07% at $7.57 in premarket on the last check Monday.
  • Photo Via Company
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