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Niu Technologies announces third quarter 2021 financial results
Third Quarter Revenues of RMB 1,226.4 million, up 37.1% year over year

Niu Technologies the world’s leading provider of smart urban mobility solutions, today announced its financial results for the third quarter of 2021.

Dr. Yan Li, Chief Executive Officer of the Company, commented: “We delivered a strong quarter with China sales volume up by 59.9% amid weaker economic conditions. Our expansion strategy in product offerings and retail coverage combined with targeted marketing and promotional activities continued to be effective in driving sales volume growth and increasing our market share.
Our cost optimization initiatives have shown positive results since September and we expect to benefit more in the future quarters. The widened product portfolio and channel coverage also laid a strong foundation for our growth in Q4 and 2022.”

Third Quarter 2021 Financial Results

Revenues were RMB 1,226.4 million, an increase of 37.1% year over year, due to 58.3% higher sales volume, partially offset by decreased revenues per e-scooter of 13.4%

E-scooter revenues from sales in China market were RMB 1,077.3 million, an increase of 45.4%, and represented 96.1% of total e-scooter revenues. The increase was mainly driven by retail network expansion and new product launches in China.

E-scooter sales revenues from international markets were RMB 43.2 million, a decrease of 27.5%, and represented 3.9% of total e-scooter revenues. The decrease was mainly due to the impact of COVID-19 and the ongoing difficulties in international shipping.

Accessories, spare parts sales, and services revenues were RMB 105.9 million, an increase of 12.6%, and represented 8.6% of total revenues. The increase was mainly driven by higher e-scooter sales volume in China. The decrease in revenues per e-scooter was mainly due to a change in the product mix.

Expenses

The cost of revenues was RMB 981.2 million, an increase of 38.7% year over year, mainly due to higher e-scooter sales volume. The cost per e-scooter, defined as the cost of revenues divided by the number of e-scooters sold in a specified period, was RMB 2,471, down 12.4% from RMB 2,819 in the third quarter of 2020 mainly due to a change in product mix.

Gross Margin was 20.0%, compared with 20.9% in the same period of 2020.  The decrease was mainly due to weaker international sales.

Operating expenses were RMB 153.2 million, an increase of 42.8% from the same period of 2020. Operating expenses as a percentage of revenues was 12.5%, compared with 12.0% in the third quarter of 2020.

Selling and marketing expenses were RMB 89.8 million compared to RMB 50.8 million in the third quarter of 2020, by an increase of 76.7%. The increase was mainly due to the increase in advertising and promotion expense of RMB 24.6 million, the increase in depreciation and amortization expense of RMB 10.5 million as a result of the opening of new franchised stores, and the increase in staff cost of RMB 6.8 million.

Research and development expenses were RMB 33.7 million (including RMB 4.2 million of share-based compensation), an increase of 16.7% from RMB 28.9 million in the third quarter of 2020, mainly due to the increase in staff cost of RMB 4.8 million and the increase in share-based compensation expenses of RMB 1.2 million, partially offset by the decrease in design expense and material expenditure of RMB 1.6 million. Research and development expenses as a percentage of revenues were 2.8%.

General and administrative expenses were RMB 29.6 million (including RMB 2.8 million of share-based compensation), an increase of 7.6% from RMB 27.5 million in the third quarter of 2020, mainly due to the increase in professional fee of RMB 2.4 million and the increase in staff cost of RMB 1.5 million, partially offset by the decrease in share-based compensation expenses of RMB 1.8 million. General and administrative expenses as a percentage of revenues was 2.4%

Income

Net income was RMB 91.7 million, compared with RMB 80.0 million in the third quarter of 2020. The net income margin was 7.5%, compared with 8.9% in the same period of 2020.

Adjusted net income (non-GAAP) was RMB 102.2 million, compared with RMB 90.6 million in the third quarter of 2020. The adjusted net income margin4 was 8.3%, compared with 10.1% in the same period of 2020.

Basic and diluted net income per ADS was RMB 1.19 (US$ 0.18) and RMB 1.15 (US$ 0.18), respectively.

Balance Sheet as of September 30, 2021, the Company had cash and cash equivalent term deposits and short-term investments of RMB 1,552.6 million in aggregate. The Company had restricted cash of RMB 147.5 million and short-term bank borrowings of RMB 140.0 million.

Financial Statement :

 

NIU TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                 
Three Months Ended September 30,   Nine Months Ended September 30,
2020   2021   2020   2021
RMB   RMB US$   RMB   RMB US$
Revenues 894,464,268 1,226,396,601 190,333,768 1,772,339,186 2,718,478,176 421,901,198
Cost of revenues(a) (707,360,744 ) (981,194,347 ) (152,278,975 ) (1,382,236,093 ) (2,128,206,848 ) (330,292,524 )
Gross profit 187,103,524   245,202,254 38,054,793   390,103,093   590,271,328 91,608,674
                   
Operating expenses:
Selling and marketing expenses(a) (50,837,916 ) (89,848,749 ) (13,944,307 ) (140,614,281 ) (232,240,624 ) (36,043,180 )
Research and development expenses(a) (28,899,391 ) (33,738,673 ) (5,236,160 ) (75,611,663 ) (90,195,590 ) (13,998,136 )
General and administrative expenses(a) (27,520,025 ) (29,618,276 ) (4,596,684 ) (74,779,905 ) (98,117,499 ) (15,227,597 )
Total operating expenses (107,257,332 )   (153,205,698 ) (23,777,151 )   (291,005,849 )   (420,553,713 ) (65,268,913 )
Government grants 1,110,121 10,600,000 1,645,094 9,202,371 32,456,842 5,037,223
Operating income 80,956,313   102,596,556 15,922,736   108,299,615   202,174,457 31,376,984
                 
Interest expense (1,860,930 ) (1,527,066 ) (236,997 ) (5,609,889 ) (4,901,414 ) (760,688 )
Interest income 1,705,239 990,553 153,731 7,073,118 3,837,418 595,558
Investment income 4,312,634 6,669,406 1,035,076 8,208,884 14,840,405 2,303,195
Income before income taxes 85,113,256   108,729,449 16,874,546   117,971,728   215,950,866 33,515,049
Income tax expense (5,106,812 ) (17,017,065 ) (2,641,007 ) (7,514,361 ) (37,777,199 ) (5,862,929 )
Net income 80,006,444   91,712,384 14,233,539   110,457,367   178,173,667 27,652,120
                 
Other comprehensive income (loss)
Foreign currency translation adjustment (21,210,855 ) 1,728,517 268,262 (14,663,948 ) (2,576,512 ) (399,868 )
Unrealized gain (loss) on available for sale securities, net 1,033,589 (369,258 ) (57,308 ) 2,199,260 728,582 113,074
Comprehensive income 59,829,178   93,071,643 14,444,493   97,992,679   176,325,737 27,365,326
Net income per ordinary share                  
—Basic 0.53 0.60 0.09 0.73 1.16 0.18
—Diluted 0.50 0.57 0.09 0.71 1.11 0.17
Net income per ADS                  
—Basic 1.06 1.19 0.18 1.47 2.32 0.36
—Diluted 1.01 1.15 0.18 1.41 2.22 0.34
 
Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income per ordinary share
—Basic 151,421,638 153,933,264 153,933,264 150,478,559 153,431,962 153,431,962
—Diluted 158,776,078 159,943,770 159,943,770 156,297,293 160,327,408 160,327,408
The weighted average number of ADS outstanding used in computing net income per ADS      
—Basic 75,710,819 76,966,632 76,966,632 75,239,280 76,715,981 76,715,981
—Diluted 79,388,039 79,971,885 79,971,885 78,148,647 80,163,704 80,163

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