• Niu Technologies Announces First Quarter 2022 Financial Results

    Source: Nasdaq GlobeNewswire / 23 May 2022 03:14:05   America/Chicago

    -- First Quarter Total Volume of e-scooter sales up 9.4% year over year

    -- First Quarter Revenues of RMB 575.5 million, up 5.1% year over year

    -- First Quarter Net Loss of RMB 29.6 million, compared with net loss of RMB 5.4 million in the same period of last year

    BEIJING, May 23, 2022 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced its financial results for the first quarter ended March 31, 2022.

    First Quarter 2022 Financial Highlights

    • Revenues were RMB 575.5 million, an increase of 5.1% year over year
    • Gross margin was 19.1%, compared with 23.8% in the first quarter of last year
    • Net loss was RMB 29.6 million, compared with net loss of RMB 5.4 million in the first quarter of last year
    • Adjusted net loss (non-GAAP)1 was RMB 16.3 million, compared with adjusted net income of RMB 6.7 million in the first quarter of last year

    First Quarter 2022 Operating Highlights

    • The number of e-scooters sold reached 163,659, up 9.4% year over year
    • The number of e-scooters sold in China reached 148,987, up 3.0% year over year
    • The number of e-scooters sold in the international markets was 14,672, up 193.7% year over year
    • The number of franchised stores in China was 3,248 as of March 31, 2022, an increase of 140 from December 31, 2021
    • International sales network expanded to 43 distributors covering 51 countries

    Dr. Yan Li, Chief Executive Officer of the Company, commented: “Despite experiencing a challenging quarter with the supply chain shortage, logistic disruption, and volatile retail environment caused by the recent COVID outbreaks, we managed to achieve moderate growths of sales volume and revenues compared to the same period last year. While uncertainties in the China market continue in Q2 due to the COVID outbreaks, we are confident that our growth strategy to develop diversified product portfolio, including our new product offerings in micro-mobility segment, and our global market expansion plan, will help us weather through the temporary China market shortfalls, and well position the company to capture the post-pandemic rebounds in electric two-wheeler demand.”

    Dr. Li continued, “The ongoing increase in raw materials prices, especially lithium-ion battery prices in Q1, has created extra pressure on our gross margin. As the premium brand in the electric two-wheeler market, we will continue to develop innovative products with unique value propositions to our users, and regain the gross margin gradually.”

    First Quarter 2022 Financial Results

    Revenues were RMB 575.5 million, an increase of 5.1% year over year, due to 9.4% increase in sales volume, partially offset by decreased revenues per e-scooter of 3.9%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

    Revenues
    (in RMB million)    		 2022
    Q1    		 2021
    Q1    		 % change
    YoY
    E-scooter sales from China market 457.7 406.3 +12.6%
    E-scooter sales from international markets 65.7 38.9 +68.9%
    E-scooter sales, sub-total 523.4 445.2 +17.5%
    Accessories, spare parts and services 52.1 102.1 -48.9%
    Total 575.5 547.3 +5.1%


    Revenues per e-scooter
    (in RMB)    		 2022
    Q1    		 2021
    Q1    		 % change
    YoY
    E-scooter sales from China market2 3,072 2,809 +9.4%
    E-scooter sales from international markets2 4,476 7,786 -42.5%
    E-scooter sales 3,198 2,975 +7.5%
    Accessories, spare parts and services3 318 682 -53.4%
    Revenues per e-scooter 3,516 3,657 -3.9%
    • E-scooter sales revenues from China market were RMB 457.7 million, an increase of 12.6%, and represented 87.5% of total e-scooter revenues. The increase was mainly driven by the unit price increases by 9.4%, and the sales volume increases by 3% in China.
    • E-scooter sales revenues from international markets were RMB 65.7 million, an increase of 68.9%, and represented 12.5% of total e-scooter revenues. The increase was mainly driven by the increase in sales of kick-scooter.
    • Accessories, spare parts sales and services revenues were RMB 52.1 million, a decrease of 48.9% and represented 9.1% of total revenues. The decrease was mainly due to the overseas battery pack sales reduction.
    • The decrease of revenues per e-scooter was mainly due to the sales of kick-scooter which has a lower average sales price compared with that of other e-scooters.

    Cost of revenues was RMB 465.8 million, an increase of 11.7% year over year, mainly due to higher e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, was RMB 2,846, up 2.1% from RMB 2,787 in the first quarter 2021 due to higher raw material costs and product mix change.

    Gross margin was 19.1%, compared with 23.8% in the same period of 2021. The decrease of gross margin was due to consistent cost pressure and the decrease in sales of accessories, spare parts and services, which generally have higher gross margin.

    Operating expenses were RMB 143.0 million, an increase of 9.6% from the same period of 2021. Operating expenses as a percentage of revenues was 24.8%, compared with 23.8% in the first quarter of 2021.

    • Selling and marketing expenses were RMB 70.0 million (including RMB 3.9 million of share-based compensation), a decrease of 4.7% from RMB 73.5 million in the first quarter of 2021. The decrease was mainly due to the decrease in advertising and promotion expense of RMB 26.1 million, partially offset by the increase in depreciation and amortization expense of RMB 13.8 million as a result of opening of new franchised stores, and the increase in staff cost of RMB 5.3 million, and the increase in share-based compensation expenses of RMB 0.9 million. Selling and marketing expenses as a percentage of revenues was 12.2% compared with 13.4% in the first quarter of 2021.
    • Research and development expenses were RMB 41.8 million (including RMB 4.9 million of share-based compensation), an increase of 63.4% from RMB 25.6 million in the first quarter of 2021, mainly due to the increase in design and testing expense of RMB 6.6 million, the increase in staff cost of RMB 6.3 million, the system development fees of RMB 2.0 million and the increase in share-based compensation expenses of RMB 0.9 million. Research and development expenses as a percentage of revenues was 7.3%, compared with 4.7% in the first quarter of 2021.
    • General and administrative expenses were RMB 31.1 million (including RMB 4.1 million of share-based compensation), a decrease of 0.8% from RMB 31.3 million in the first quarter of 2021, mainly due to the decrease in foreign currency exchange loss of RMB 4.7 million and share-based compensation expenses of RMB 0.7 million, partially offset by the increase in staff cost of RMB 4.6 million. General and administrative expenses as a percentage of revenues was 5.4%, compared with 5.7% in the first quarter of 2021.

    Operating expenses excluding share-based compensation were RMB 130.0 million, increased by 9.6% year over year, and represented 22.6% of revenues, compared with 21.7% in the first quarter of 2021.

    • Selling and marketing expenses excluding share-based compensation were RMB 66.1 million, a decrease of 6.2% year over year, and represented 11.5% of revenues, compared with 12.9% in the first quarter of 2021.
    • Research and development expenses excluding share-based compensation were RMB 36.9 million, an increase of 70.9% year over year, and represented 6.4% of revenues, compared with 3.9% in the first quarter of 2021.
    • General and administrative expenses excluding share-based compensation were RMB 26.9 million, an increase of 1.7% year over year, and represented 4.7% of revenues, compared with 4.8% in the first quarter of 2021.

    Government grants were RMB 0.3 million, decreased by RMB 0.1 million from the same period of 2021.

    Share-based compensation was RMB 13.2 million, compared with RMB 12.1 million in the same period of 2021.

    Income tax expense was RMB 1.3 million, a decrease of RMB 7.9 million from the same period of 2021.

    Net loss was RMB 29.6 million, compared with net loss of RMB 5.4 million in the first quarter of 2021. The net loss margin was 5.1%, compared with net loss margin of 1.0% in the same period of 2021.

    Adjusted net loss (non-GAAP) was RMB 16.3 million, compared with adjusted net income of RMB 6.7 million in the first quarter of 2021. The adjusted net loss margin4 was 2.8%, compared with the adjusted net income margin of 1.2% in the same period of 2021.

    Basic and diluted net loss per ADS were both RMB 0.38 (US$ 0.06).

    Balance Sheet
    As of March 31, 2022, the Company had cash, term deposits and short-term investments of RMB 889.6 million in aggregate. The Company had restricted cash of RMB 222.5 million and short-term bank borrowings of RMB 180.0 million.

    Business Outlook

    In light of the current market conditions, including the on-going COVID resurgence in China, NIU expects its revenues for the second quarter of 2022 to be in the range of RMB 803 million (representing a year-over-year decrease of 15%) to RMB 945 million (representing no year-over-year change). This 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 due to uncertainties relating to a various factors, such as the pace of COVID-19 pandemic recovery, among others.

    Conference Call

    The Company will host an earnings conference call on Monday, May 23, 2022 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time) to discuss its first quarter 2022 financial and business results and provide a corporate update.

    To join via phone, participants need to register in advance of the conference call using the link provided below. Upon registration, participants will receive dial-in numbers, an event passcode, and a unique registrant ID, which will be used to join the conference call.

    Event:Niu Technologies First Quarter 2022 Earnings Conference Call
    Registration Link:http://apac.directeventreg.com/registration/event/4909308
    Conference ID:4909308

    A live and archived webcast of the conference call will be available on the investor relations website at https://ir.niu.com/news-and-events/webcasts-and-presentations.

    A replay of the conference call can be accessed by phone two hours later at the following numbers until May 31, 2022.

    United States+1-855-452-5696
    International+61-281-990-299
    Hong Kong800-963-117
    Mainland China400-820-9703
    Conference ID4909308

    About NIU

    As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric motorcycles, mopeds, bicycles and kick-scooters. NIU has a diversified product portfolio that caters to the various demands of our users and addresses different urban travel scenarios. NIU’s product portfolio comprises its (i) four electric scooter and motorcycle series, NQi, MQi, UQi and Gova, (ii) one kick-scooter series, KQi, (iii) one high performance motorcycle series, RQi, (iv) one hybrid motorcycle series, YQi and (v) one e-bike series, BQi. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to offer the products and services. For more information, please visit www.niu.com.

    Use of Non-GAAP Financial Measures

    To supplement NIU’s consolidated financial results presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), NIU uses the following non-GAAP financial measures: adjusted net income and adjusted net income margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. NIU believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to NIU’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

    Adjusted net income is defined as net income excluding share-based compensation expenses. Adjusted net income margin is defined as adjusted net income as a percentage of the revenues.

    For more information on non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP and Non-GAAP Results”.

    Exchange Rate

    This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the readers. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 6.3393 to US$ 1.00, the exchange rate in effect as of March 31, 2022, as set forth in the H.10 Statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

    Safe Harbor Statement

    This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as NIU’s strategic and operational plans, contain forward-looking statements. NIU may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to First parties. Statements that are not historical facts, including statements about NIU’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIU’s strategies; NIU’s future business development, financial condition and results of operations; NIU’s ability to maintain and enhance its “NIU” brand; its ability to innovate and successfully launch new products and services; its ability to maintain and expand its offline distribution network; its ability to satisfy the mandated safety standards relating to e-scooters; its ability to secure supply of components and raw materials used in e-scooters; its ability to manufacture, launch and sell smart e-scooters meeting customer expectations; its ability to grow collaboration with operation partners; its ability to control costs associated with its operations; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing.   Further information regarding these and other risks is included in NIU’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and NIU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    Investor Relations Contact:

    Niu Technologies
    E-mail: ir@niu.com
    　

    NIU TECHNOLOGIES
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
          
     As of
     December 31, March 31, March 31,
     2021  2022  2022 
     RMB RMB US$
    ASSETS     
    Current assets     
    Cash208,373,759  112,772,965  17,789,498 
    Term deposits-current95,635,500  174,575,500  27,538,608 
    Restricted cash223,971,197  222,547,853  35,106,061 
    Short-term investments773,678,455  550,504,866  86,840,009 
    Notes receivable-  480,000  75,718 
    Accounts receivable, net268,557,176  171,925,483  27,120,578 
    Inventories269,637,042  345,883,765  54,561,823 
    Prepayments and other current assets56,061,263  103,305,366  16,296,021 
    Total current assets1,895,914,392  1,681,995,798  265,328,316 
          
    Non-current assets     
    Term deposits-non-current35,939,250  51,741,000  8,161,942 
    Property, plant and equipment, net397,215,911  413,418,358  65,215,143 
    Intangible assets, net3,668,189  3,197,885  504,454 
    Operating lease right-of-use assets, net94,201,263  92,617,121  14,609,992 
    Deferred income tax assets11,907,344  12,542,331  1,978,504 
    Other non-current assets2,367,064  4,024,423  634,837 
    Total non-current assets545,299,021  577,541,118  91,104,872 
          
    Total assets2,441,213,413  2,259,536,916  356,433,188 
          
    LIABILITIES     
    Current liabilities     
    Short-term bank borrowings180,000,000  180,000,000  28,394,302 
    Notes payable143,622,874  158,989,430  25,079,966 
    Accounts payable538,930,163  349,703,259  55,164,333 
    Income taxes payable17,601,525  16,294,581  2,570,407 
    Advances from customers17,266,994  80,880,798  12,758,632 
    Deferred revenue-current32,757,740  33,516,338  5,287,072 
    Accrued expenses and other current liabilities198,904,558  150,643,299  23,763,397 
    Total current liabilities1,129,083,854  970,027,705  153,018,109 
          
    Deferred revenue-non-current10,693,692  10,657,593  1,681,194 
    Deferred income tax liabilities1,992,388  2,361,460  372,511 
    Operating lease liabilities-non-current13,921,859  12,821,241  2,022,501 
    Other non-current liabilities20,967,430  17,597,175  2,775,886 
    Total non-current liabilities47,575,369  43,437,469  6,852,092 
          
    Total liabilities1,176,659,223  1,013,465,174  159,870,201 
          
    SHAREHOLDERS’ EQUITY:     
    Class A ordinary shares89,038  89,144  14,062 
    Class B ordinary shares10,316  10,316  1,627 
    Additional paid-in capital1,855,403,759  1,870,571,828  295,075,454 
    Accumulated other comprehensive loss(51,121,030) (55,195,408) (8,706,862)
    Accumulated deficit(539,827,893) (569,404,138) (89,821,294)
    Total shareholders’ equity1,264,554,190  1,246,071,742  196,562,987 
          
    Total liabilities and shareholders’ equity 2,441,213,413  　 2,259,536,916  　 356,433,188  
          


    NIU TECHNOLOGIES
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
         
     Three Months Ended March 31,
     2021  2022
     RMB RMBUS$
    Revenues547,336,565  575,477,902 90,779,408 
    Cost of revenues(a)(417,002,269) (465,793,568)(73,477,130)
    Gross profit130,334,296  109,684,334 17,302,278 
         
    Operating expenses:    
    Selling and marketing expenses(a)(73,518,484) (70,047,236)(11,049,680)
    Research and development expenses(a)(25,609,234) (41,848,584)(6,601,452)
    General and administrative expenses(a)(31,313,799) (31,060,435)(4,899,663)
    Total operating expenses(130,441,517) (142,956,255)(22,550,795)
    Government grants352,342  268,370 42,334 
    Operating income (loss)245,121  (33,003,551)(5,206,183)
         
    Interest expense(1,732,700) (1,454,464)(229,436)
    Interest income1,216,578  1,183,923 186,759 
    Investment income4,128,940  5,046,892 796,128 
    Income (loss) before income taxes3,857,939  (28,227,200)(4,452,732)
    Income tax expense(9,231,506) (1,349,045)(212,807)
    Net loss(5,373,567) (29,576,245)(4,665,539)
         
    Other comprehensive loss    
    Foreign currency translation adjustment2,903,736  (1,694,186)(267,251)
    Unrealized gain/(reclassification adjustment for gains) on available for sale securities, net200,180  (2,380,192)(375,466)
    Comprehensive loss(2,269,651) (33,650,623)(5,308,256)
    Net loss per ordinary share    
    —Basic(0.04) (0.19)(0.03)
    —Diluted(0.04) (0.19)(0.03)
    Net loss per ADS    
    —Basic(0.07) (0.38)(0.06)
    —Diluted(0.07) (0.38)(0.06)
         
    Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net loss per ordinary share 
    —Basic152,645,455  154,549,415 154,549,415 
    —Diluted152,645,455  154,549,415 154,549,415 
    Weighted average number of ADS outstanding used in computing net loss per ADS   
    —Basic76,322,728  77,274,708 77,274,708 
    —Diluted76,322,728  77,274,708 77,274,708 
         
    Note:    
    (a) Includes share-based compensation expense as follows:　　　　
     Three Months Ended March 31,
     2021  2022
     RMB RMBUS$
    Cost of revenues183,337  285,977 45,112 
    Selling and marketing expenses3,031,862  3,917,456 617,963 
    Research and development expenses4,001,487  4,917,894 775,779 
    General and administrative expenses4,837,552  4,122,290 650,275 
    Total share-based compensation expense12,054,238  13,243,617 2,089,129 
         


    NIU TECHNOLOGIES
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
         
     Three Months Ended March 31,
     2021  2022
     RMB RMBUS$
    Net loss(5,373,567) (29,576,245)(4,665,539)
    Add:    
    Share-based compensation expense12,054,238  13,243,617 2,089,129 
    Adjusted net income (loss)6,680,671  (16,332,628)(2,576,410)
         

     

    ______________________________

    1 Adjusted net income/loss (non-GAAP) is defined as net income/loss excluding share-based compensation expense
    2 Revenues per e-scooter on e-scooter sales from China or international markets is defined as e-scooter sales revenues from China or international markets divided by the number of e-scooters sold in China or international market in a specific period
    3 Revenues per e-scooter on accessories, spare parts and services is defined as accessories, spare parts and services revenues divided by the total number of e-scooters sold in a specific period
    4 Adjusted net income/loss margin is defined as adjusted net income/loss (non-GAAP) as a percentage of the revenues


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