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BEIJING - On Monday, Niu Technologies (NASDAQ:NIU) reported a swing to a profit in the second quarter, driven by strong sales growth in China.
The smart urban mobility solutions provider’s shares jumped 5.82% in pre-market trading after the release.
The company reported net income of RMB 5.9 million ($0.82 million) or $0.01 per ADS for the second quarter, compared to a net loss of RMB 24.9 million in the same period last year. Revenue surged 33.5% YoY to RMB 1,255.7 million ($175.29 million), fueled by a 36.7% increase in e-scooter sales volume to 350,090 units.
The company’s performance in China was particularly strong, with e-scooter sales in the domestic market increasing 53.6% YoY to 318,719 units. However, international sales declined 35.5% to 31,371 units due to ongoing geopolitical and economic uncertainties.
"During China’s e-commerce peak season in May and June, our products consistently ranked among the best-selling mid to high-end models in the electric bicycle and electric motorcycle sectors," said Dr. Yan Li, Chief Executive Officer of the Company.
Gross margin improved to 20.1% from 17.0% in the same period last year, reflecting the positive impact of cost-reduction initiatives and a higher proportion of e-scooter sales in China.
Looking ahead, Niu Technologies expects third-quarter revenue to be between RMB 1,433 million and RMB 1,638 million, representing YoY growth of 40% to 60%.
The company has expanded its domestic retail network to over 4,300 stores in China, reinforcing its growth strategy in the local market while its electric motorcycles continued their steady recovery in overseas markets.
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