NIU.US
Electric scooter maker Niu Technologies announced Monday its revenue for the second quarter of this year rose 0.1% year-on-year to 829 million yuan, ending four consecutive quarters of revenue declines.

The latest: Electric scooter maker Niu Technologies (NIU.US) announced Monday its revenue for the second quarter of this year rose 0.1% year-on-year to 829 million yuan ($114 million), ending four consecutive quarters of revenue declines, while its adjusted profit fell 53.8% to 14.4 million yuan.

Looking up: The company’s electric scooter sales increased 1.5% to 211,996 units in the second quarter, mainly due to a 17.1% jump in international sales, which offset a 1% decline of sales in China.

Take Note: Revenue from international markets decreased by 21.6% to 115 million yuan, due to a decline in sales of more expensive electric motorcycles and electric mopeds.

Digging Deeper: Niu is a beneficiary of the global development of clean energy vehicles, particularly in its home market, where the Chinese government’s commitment to achieve carbon neutrality by 2060 has led to a rapid increase in sales of its electric motorcycles and scooters, but fierce competition in the domestic market has led it to lower its product prices, which has impacted its earnings performance. Last year, the spread of Covid epidemic in many cities of China, coupled with multiple negative factors such as the cessation of new vehicle purchases by shared EV service providers and the increase in the price of lithium batteries, resulted in a 14.5% decrease in its full year revenues to 3.17 billion yuan and a net loss of 49.5 million yuan.

Market Reaction: Niu shares dropped 5.7% to $3.46 in Monday trade in New York. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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