• Niu Technologies Announces Second Quarter 2022 Financial Results

    Источник: Nasdaq GlobeNewswire / 15 авг 2022 03:05:46   America/Chicago

    -- Second Quarter Total Volume of e-scooter sales down 17.4% year over year

    -- Second Quarter Revenues of RMB 827.6 million, down 12.4% year over year

    -- Second Quarter Net income of RMB 14.4 million, compared with net income of RMB 91.8 million in the same period of last year

    BEIJING, Aug. 15, 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 second quarter ended June 30, 2022.

    Second Quarter 2022 Financial Highlights

    • Revenues were RMB 827.6 million, a decrease of 12.4% year over year
    • Gross margin was 20.3%, compared with 22.7% in the second quarter of last year
    • Net income was RMB 14.4 million, compared with net income of RMB 91.8 million in the second quarter of last year
    • Adjusted net income (non-GAAP)1 was RMB 31.2 million, compared with adjusted net income of RMB 104.0 million in the second quarter of last year

    Second Quarter 2022 Operating Highlights

    • The number of e-scooters sold was 208,857, down 17.4% year over year
    • The number of e-scooters sold in China was 180,299, down 26.7% year over year
    • The number of e-scooters sold in the international markets was 28,558, up 309.1% year over year
    • The number of franchised stores in China was 3,329 as of June 30, 2022, an increase of 81 from March 31, 2022
    • International sales network expanded to 53 distributors covering 52 countries as of June 30, 2022

    Other Highlights

    Dr. Yan Li, Chief Executive Officer of the Company, commented: “We delivered mixed results for the second quarter. In China market, our sales were heavily hit and our product development was disrupted by the Covid-19 lockdowns. However, average sales price (ASP) and gross margin both rose due to increase of retail sales prices starting from April 1 and improvement of product mix. In the overseas market, our kick-scooter series continued to receive positive feedback, and the sales volume reached over 20,000 units, another record high since its debut last year.”

    Facing the second half of this year, Dr Li said, "with the coming of peak season, we will make every effort to get back on the growth track. We just released our brand new series SQi and new version of the most popular series UQi+ earlier this month in China market, and will commence deliveries of our BQi e-bike series later this month in the overseas markets. We expect these new products will help us recover from the previous hit. For the rest of this year, since uncertainty remains over the pace of an economic recovery, we here adjust our full year sales volume guidance to 1-1.2 million.”

    Second Quarter 2022 Financial Results

    Revenues were RMB 827.6 million, a decrease of 12.4% year over year, due to 17.4% decrease in sales volume, partially offset by increased revenues per e-scooter of 6.1%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

    Revenues
    (in RMB million)    		 2022
    Q2    		 2021
    Q2    		 % change YoY
    E-scooter sales from China market 596.6 757.5 -21.2%
    E-scooter sales from international markets 146.3 57.7 +153.8%
    E-scooter sales, sub-total 742.9 815.2 -8.9%
    Accessories, spare parts and services 84.7 129.5 -34.6%
    Total 827.6 944.7 -12.4%


    Revenues per e-scooter
    (in RMB)    		 2022
    Q2    		 2021
    Q2    		 % change
    YoY
    E-scooter sales from China market2 3,309 3,079 +7.5%
    E-scooter sales from international markets2 5,122 8,259 -38.0%
    E-scooter sales 3,557 3,222 +10.4%
    Accessories, spare parts and services3 406 512 -20.7%
    Revenues per e-scooter 3,963 3,734 +6.1%
    • E-scooter sales revenues from China market were RMB 596.6 million, a decrease of 21.2%, and represented 80.3% of total e-scooter revenues. The decrease was mainly driven by the sales volume decreases by 26.7% in China.
    • E-scooter sales revenues from international markets were RMB 146.3 million, an increase of 153.8%, and represented 19.7% of total e-scooter revenues. The increase was mainly driven by the increase in sales of kick-scooter, and the increase in sales volume and unit price of electric motorcycle.
    • Accessories, spare parts sales and services revenues were RMB 84.7 million, a decrease of 34.6% and represented 10.2% of total revenues. The decrease was mainly due to the overseas battery pack sales reduction.
    • The increase of revenues per e-scooter was mainly due to the increase in unit price of e-scooter, and a better product mix in China market.

    Cost of revenues was RMB 660.0 million, a decrease of 9.6% year over year, mainly due to lower 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 3,160, up 9.5% from RMB 2,885 in the second quarter 2021 due to higher raw material costs and product mix change.

    Gross margin was 20.3%, compared with 22.7% in the same period of 2021. The decrease of gross margin was due to continuous cost pressure, the increase in sales of overseas kick-scooters, which have lower margin, and the decrease in sales of accessories, spare parts and services, which generally have higher gross margin.

    Operating expenses were RMB 173.0 million, an increase of 26.4% from the same period of 2021. Operating expenses as a percentage of revenues was 20.9%, compared with 14.5% in the second quarter of 2021.

    • Selling and marketing expenses were RMB 92.5 million (including RMB 4.4 million of share-based compensation), an increase of 34.3% from RMB 68.9 million in the second quarter of 2021. The increase was mainly due to the increase in depreciation and amortization expense of RMB 12.0 million as a result of opening of new franchised stores, the increase in advertising and promotion expense of RMB 7.4 million, and the increase in staff cost of RMB 3.9 million. Selling and marketing expenses as a percentage of revenues was 11.2% compared with 7.3% in the second quarter of 2021.
    • Research and development expenses were RMB 44.5 million (including RMB 7.0 million of share-based compensation), an increase of 44.1% from RMB 30.8 million in the second quarter of 2021, mainly due to the increase in staff cost of RMB 7.4 million, the increase in design and testing expense of RMB 3.1 million, and the increase in share-based compensation expenses of RMB 2.7 million. Research and development expenses as a percentage of revenues was 5.4%, compared with 3.3% in the second quarter of 2021.
    • General and administrative expenses were RMB 36.0 million (including RMB 5.1 million of share-based compensation), a decrease of 3.1% from RMB 37.2 million in the second quarter of 2021, mainly due to the foreign currency exchange gain of RMB 11.0 million as compared to the foreign currency exchange loss of RMB 1.4 million in the second quarter of 2021, partially offset by the increase in provision for credit losses of RMB 6.2 million, and the increase in staff cost of RMB 4.3 million. General and administrative expenses as a percentage of revenues was 4.4%, compared with 3.9% in the second quarter of 2021.

    Operating expenses excluding share-based compensation were RMB 156.5 million, increased by 25.3% year over year, and represented 18.9% of revenues, compared with 13.2% in the second quarter of 2021.

    • Selling and marketing expenses excluding share-based compensation were RMB 88.1 million, an increase of 33.7% year over year, and represented 10.6% of revenues, compared with 7.0% in the second quarter of 2021.
    • Research and development expenses excluding share-based compensation were RMB 37.5 million, an increase of 41.0% year over year, and represented 4.5% of revenues, compared with 2.8% in the second quarter of 2021.
    • General and administrative expenses excluding share-based compensation were RMB 30.9 million, a decrease of 4.8% year over year, and represented 3.7% of revenues, compared with 3.4% in the second quarter of 2021.

    Government grants were RMB 0.3 million, decreased by RMB 21.2 million from the same period of 2021.

    Share-based compensation was RMB 16.8 million, compared with RMB 12.1 million in the same period of 2021.

    Income tax benefit was RMB 16.8 million, compared with income tax expense of RMB 11.5 million in the same period of 2021.

    Net income was RMB 14.4 million, compared with RMB 91.8 million in the second quarter of 2021. The net income margin was 1.7%, compared with 9.7% in the same period of 2021.

    Adjusted net income (non-GAAP) was RMB 31.2 million, compared with RMB 104.0 million in the second quarter of 2021. The adjusted net income margin4 was 3.8%, compared with 11.0% in the same period of 2021.

    Basic and diluted net income per ADS were RMB 0.19 (US$ 0.03) and RMB 0.18 (US$ 0.03), respectively.

    Balance Sheet
    As of June 30, 2022, the Company had cash, term deposits and short-term investments of RMB 861.0 million in aggregate. The Company had restricted cash of RMB 189.2 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 third quarter of 2022 to be in the range of RMB 1,165 million (representing a year-over-year decrease of 5%) to RMB 1,349 million (representing a year-over-year increase of 10%). In addition, NIU adjusts its 2022 full year sales volume guidance to 1-1.2 million.

    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, Aug 15, 2022 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time) to discuss its second 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 and an event passcode(PIN), which will be used to join the conference call.

    Event:Niu Technologies Second Quarter 2022 Earnings Conference Call
    Registration Link:https://register.vevent.com/register/BI5679fea7c16f492ba50c567ffd3f4ad1

    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.

    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 6.6981 to US$ 1.00, the exchange rate in effect as of June 30, 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, June 30, June 30,
     2021 2022 2022
     RMB RMB US$
    ASSETS     
    Current assets     
    Cash208,373,759  367,164,224  54,816,175 
    Term deposits-current95,635,500  218,120,500  32,564,533 
    Restricted cash223,971,197  189,213,375  28,248,813 
    Short-term investments773,678,455  255,748,785  38,182,288 
    Notes receivable-  2,889,538  431,397 
    Accounts receivable, net268,557,176  267,053,157  39,869,987 
    Inventories269,637,042  471,976,698  70,464,266 
    Prepayments and other current assets56,061,263  131,613,097  19,649,318 
    Total current assets1,895,914,392  1,903,779,374  284,226,777 
          
    Non-current assets     
    Term deposits-non-current35,939,250  20,000,000  2,985,921 
    Property, plant and equipment, net397,215,911  413,954,582  61,801,792 
    Intangible assets, net3,668,189  2,812,960  419,964 
    Operating lease right-of-use assets94,201,263  90,496,335  13,510,747 
    Deferred income tax assets11,907,344  10,773,996  1,608,515 
    Other non-current assets2,367,064  11,516,028  1,719,298 
    Total non-current assets545,299,021  549,553,901  82,046,237 
          
    Total assets2,441,213,413  2,453,333,275  366,273,014 
          
    LIABILITIES     
    Current liabilities     
    Short-term bank borrowings180,000,000  180,000,000  26,873,292 
    Notes payable143,622,874  175,612,699  26,218,286 
    Accounts payable538,930,163  514,086,844  76,751,145 
    Income taxes payable17,601,525  2,405,109  359,073 
    Advances from customers17,266,994  29,413,170  4,391,271 
    Deferred revenue-current32,757,740  33,761,838  5,040,510 
    Accrued expenses and other current liabilities198,904,558  177,420,561  26,488,192 
    Total current liabilities1,129,083,854  1,112,700,221  166,121,769 
          
    Deferred revenue-non-current10,693,692  10,530,020  1,572,091 
    Deferred income tax liabilities1,992,388  1,441,686  215,238 
    Operating lease liabilities13,921,859  10,802,360  1,612,750 
    Other non-current liabilities20,967,430  17,532,325  2,617,507 
    Total non-current liabilities47,575,369  40,306,391  6,017,586 
          
    Total liabilities1,176,659,223  1,153,006,612  172,139,355 
          
    SHAREHOLDERS’ EQUITY:     
    Class A ordinary shares89,038  89,295  13,331 
    Class B ordinary shares10,316  10,316  1,540 
    Additional paid-in capital1,855,403,759  1,887,444,914  281,788,106 
    Accumulated other comprehensive loss(51,121,030) (32,176,060) (4,803,759)
    Accumulated deficit(539,827,893) (555,041,802) (82,865,559)
    Total shareholders’ equity1,264,554,190  1,300,326,663  194,133,659 
          
    Total liabilities and shareholders’ equity2,441,213,413  2,453,333,275  366,273,014 
          


    NIU TECHNOLOGIES

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
              
     Three Months Ended June 30, Six Months Ended June 30,
     2021 2022
    		 2021 2022
     RMB RMBUS$ RMB RMBUS$
    Revenues944,745,010  827,619,915 123,560,400  1,492,081,575  1,403,097,817 209,476,989 
    Cost of revenues(a)(730,010,232) (659,994,763)(98,534,624) (1,147,012,501) (1,125,788,331)(168,075,772)
    Gross profit214,734,778  167,625,152 25,025,776  345,069,074  277,309,486 41,401,217 
              
    Operating expenses:         
    Selling and marketing expenses(a)(68,873,391) (92,531,147)(13,814,537) (142,391,875) (162,578,383)(24,272,313)
    Research and development expenses(a)(30,847,683) (44,450,826)(6,636,334) (56,456,917) (86,299,410)(12,884,163)
    General and administrative expenses(a)(37,185,424) (36,024,525)(5,378,320) (68,499,223) (67,084,960)(10,015,521)
    Total operating expenses(136,906,498) (173,006,498)(25,829,191) (267,348,015) (315,962,753)(47,171,997)
    Government grants21,504,500  254,668 38,021  21,856,842  523,038 78,088 
    Operating income (loss)99,332,780  (5,126,678)(765,394) 99,577,901  (38,130,229)(5,692,692)
              
    Interest expenses(1,641,648) (1,464,438)(218,635) (3,374,348) (2,918,902)(435,781)
    Interest income1,630,287  925,854 138,226  2,846,865  2,109,777 314,981 
    Investment income4,042,059  3,248,458 484,982  8,170,999  8,295,350 1,238,463 
    Income (loss) before income taxes103,363,478  (2,416,804)(360,821) 107,221,417  (30,644,004)(4,575,029)
    Income tax benefit (expense)(11,528,628) 16,779,140 2,505,060  (20,760,134) 15,430,095 2,303,653 
    Net income (loss)91,834,850  14,362,336 2,144,239  86,461,283  (15,213,909)(2,271,376)
              
    Other comprehensive income (loss)         
    Foreign currency translation adjustment, net of nil income taxes(7,208,765) 23,106,426 3,449,699  (4,305,029) 21,412,240 3,196,763 
    Unrealized gain/(reclassification adjustment for gains) on available for sale securities, net897,660  (87,078)(13,000) 1,097,840  (2,467,270)(368,354)
    Comprehensive income85,523,745  37,381,684 5,580,938  83,254,094  3,731,061 557,033 
    Net income (loss) per ordinary share         
    —Basic0.60  0.09 0.01  0.56  (0.10)(0.01)
    —Diluted0.57  0.09 0.01  0.54  (0.10)(0.01)
    Net income (loss) per ADS         
    —Basic1.20  0.19 0.03  1.13  (0.20)(0.03)
    —Diluted1.14  0.18 0.03  1.08  (0.20)(0.03)
              
    Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income (loss) per ordinary share   
    —Basic153,528,657  155,223,662 155,223,662  153,177,159  154,887,972 154,887,972 
    —Diluted160,860,781  157,998,918 157,998,918  160,751,121  154,887,972 154,887,972 
    Weighted average number of ADS outstanding used in computing net income (loss) per ADS        
    —Basic76,764,329  77,611,831 77,611,831  76,588,580  77,443,986 77,443,986 
    —Diluted80,430,391  78,999,459 78,999,459  80,375,561  77,443,986 77,443,986 
              
    Note:         
    (a) Includes share-based compensation expense as follows:         
     Three Months Ended June 30, Six Months Ended June 30,
     2021 2022
    		 2021 2022
     RMB RMBUS$ RMB RMBUS$
    Cost of revenues183,165  307,095 45,848  366,502  593,072 88,543 
    Selling and marketing expenses2,977,457  4,421,095 660,052  6,009,319  8,338,551 1,244,913 
    Research and development expenses4,283,976  6,988,758 1,043,394  8,285,463  11,906,652 1,777,616 
    General and administrative expenses4,685,866  5,076,711 757,933  9,523,418  9,199,001 1,373,375 
    Total share-based compensation expense12,130,464  16,793,659 2,507,227  24,184,702  30,037,276 4,484,447 
              


    NIU TECHNOLOGIES

    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
              
     Three Months Ended June 30, Six Months Ended June 30,
     2021 2022 2021 2022
     RMB RMBUS$ RMB RMBUS$
    Net Income (loss)91,834,850 14,362,3362,144,239 86,461,283 (15,213,909)(2,271,376)
    Add:         
    Share-based compensation expense12,130,464 16,793,6592,507,227 24,184,702 30,037,276 4,484,447 
    Adjusted net income103,965,314 31,155,9954,651,466 110,645,985 14,823,367 2,213,071 
              

    _____________________

    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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