E-scooter Leader Niu's 2Q Polarized Sales: Up 81% in China, Down 62% Globally
As one of the leading electronic scooter companies worldwide, Niu technologies has approximately 30% of the total market. The growth space is considerable for the company in the post-pandemic period.
On August 17, Niu Technologies (NIU:NASDAQ) released its financial and operating performance during second quarter of 2020, which is 'bittersweet' due to the unbalanced pace of pandemic recovery around the world.
The company's total revenue reached CNY 664.90 million with an increase of 21.60% year-on-year. The net income saw a slight upward from CNY 51 million during the same period in 2019 to 57 million this year. Notably, the company maintains a relatively high gross margin at 23%, though with a trivial slope of 0.7%.
The e-scooter shipments are highly polarized between the Chinese market and the global market. In China, the number of scooters sold saw a stunning year-over-year increase of 81%, reaching 154,959 pieces. The handsome uptrend is driven by retail network expansion and new product launches. However, the overseas markets of Niu's products suffered from a 62% decline due to the ongoing and long-lasting COVID-19 impact. The sales boost in the Chinese market made up for the slope in the overseas market, bringing an overall shipment lift of 61%, totaling to 160,138 pieces sold in the second quarter.
As the revenue per e-scooter for the international market is approximately three times as that of the Chinese market – CNY 10,995 for the international market and CNY 3,373 for the Chinese market – the recovery and the reopening of dealer shops in the international market is of vital importance for the company's next quarter earnings.