Niu Technologies Q3 2025 Earnings Call Transcript

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November 17, 2025

Key Takeaways

  • Positive Sentiment: Strong Q3 operating performance — total volume ~466,000 units (+49% YoY) driven by China (451,000 units, +74% YoY), revenue RMB1.69 billion (+65% YoY), gross margin expanded to 21.8%, and net profit of RMB81.7 million, with cash and equivalents rising to RMB1.8 billion.
  • Negative Sentiment: Regulatory transition compressed timing of demand — distributors pre-stocked ahead of the new China e‑bike standard, producing a Q3 pull‑forward that the company says will likely leave Q4 volume roughly flat YoY and shift some demand into Q1 2026.
  • Positive Sentiment: Motorcycle expansion gaining traction — motorcycles contributed ~14% of revenue, the FX Windstorm sold 14,000 units in five hours (RMB68 million GMV) and management is targeting deeper penetration in lower‑tier cities with broader product launches.
  • Negative Sentiment: Overseas micro‑mobility weakness — international volume was ~14,000 units with micro‑mobility down ~77% YoY; the company is deliberately reducing promotions to protect margins and expects a multi‑quarter structural adjustment into 2026.
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Earnings Conference Call
Niu Technologies Q3 2025
00:00 / 00:00

Transcript Sections

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Operator

Dear ladies and gentlemen, thank you for standing by, and welcome to the Niu Technologies' third quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.

Kristal Li
Kristal Li
Investor Relations Manager at Niu Technologies

Thank you, Operator. Hello everyone. Welcome to today's conference call to discuss Niu Technologies' results for the third quarter 2025. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from the company's IR site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the safeguard provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation and updates any forward-looking statements except as required by law.

Kristal Li
Kristal Li
Investor Relations Manager at Niu Technologies

Our earnings press release and this call included discussion of certain non-GAAP financial measures. The press release contained a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Fion Zhou. Now, let me turn the call over to CEO Yan.

Yan Li
Yan Li
CEO at Niu Technologies

Thank you, Kristal. Hello everyone. Thank you for joining us today. In Q3, we delivered solid and sustained progress across all key strategic priorities, supported by discipline and execution in product innovation, channel expansion, and brand elevation. Our results reflect the continual growth of our core China business and early signs of transition in our overseas operations, laying a strong foundation for the next phase of growth. For the third quarter of 2025, the total sales volume reached 465,000 units, representing a strong 49.1% year-over-year increase. This growth was driven primarily by exceptional performance in China, where sales rose to 451,000 units, up 74% year-over-year, supported by our strength in the product portfolio and the effective channel expansion. Overseas volume reached 14,000 units, declining year-over-year, mainly due to weakness in the micro-mobility sector.

Yan Li
Yan Li
CEO at Niu Technologies

Our total revenue grew 65% year-over-year to RMB 1.69 billion, accompanied by a gross margin expansion to 21.8%, up 8.0 percentage points from the prior year, or 1.7 percentage points sequentially. This improvement was driven by a favorable shift in the China product mix, with increased contribution from higher-value models. Notably, sales of models priced above RMB 8,000 accounted for over 10% of China's sales. Net profit for the quarter was RMB 81.69 million, extending the profitability momentum established in Q2. This improvement reflects scale efficiencies from higher volume and our continued focus on operational excellence. Those results underscore our ability to execute with discipline and resilience amid evolving market dynamics. We remain confident in our long-term strategy, and the progress achieved this quarter provides a strong foundation for sustainable growth. China remained our primary focus growth engine in Q3, with unit sales rising 74% year-over-year to 451,000 units.

Yan Li
Yan Li
CEO at Niu Technologies

A key driver was the channel inventory build-up ahead of the implementation of the new national standard for electric bicycles, which provided a substantial short-term boost. This performance was also supported by successful product launches, strong brand-driven demands, and the steady channel expansion. The momentum built through 2024 and into 2025 reflects our refined strategy, enhanced competitiveness, and growing consumer preference for new. In Q3, the China electric bicycle market entered a critical transition phase under the new national standard. While production of non-compliant models ceased after August 31st, retail sales of existing inventories are permitted until November 30, 2025. This prompted distributors and retailers to build inventories in July and August, effectively pulling forward demand from October and November and created a temporary sales boost in Q3.

Yan Li
Yan Li
CEO at Niu Technologies

Now, to prepare for this regulatory shift, we emphasized our three actions: upgrading the existing high-end electric bicycle models to capture the short-term demand, building out the new electric motorcycles unaffected by this regulation to target lower-tier cities, and redesigning and retuning our entire electric bicycle lineup to fully comply with the new standards for the Q4 2025 and Q1 2026. First, to capture the streaming electric bicycle demand surge under the new old standard, we launched the upgraded flagship models, the NXT Ultra 2025 and the FXT Ultra 2025 version, each priced at RMB 11,999. The NXT Ultra 2025 introduced 10 major upgrades, with 77% of core components redesigned to elevate the benchmark standards across safety, power, and intelligence.

Yan Li
Yan Li
CEO at Niu Technologies

The FXT Ultra 2025 featured a futuristic performance-driven design on the same technology platform as the NXT Ultra, equipped with the automotive-grade millimeter wave radar and the dual-channel ABS, setting a new safety benchmark for the segment. Together, those Ultra models contribute 8% of total Q3 sales, effectively serving high-end demand during this regulatory transition. Electric motorcycles are more prevalent in the lower-tier cities, Tier 3 and below, due to more relaxed regulations. This segment has historically been underserving our portfolio and the channel footprint, making it a key growth priority for us. As highlighted in the previous earnings calls, expanding presence in lower-tier cities is a core strategy reflected in our store expansion and strengthened product line.

Yan Li
Yan Li
CEO at Niu Technologies

In Q2, we completed a full N-series motorcycle portfolio covering mainstream price points from entry-level NS at RMB 3,000 above, and NL at RMB 4,000, and NXL at RMB 6,000, to the performance-oriented NX just under RMB 10,000. Starting Q3, we extended the strategy to the S-series, broadened the price band, and enhanced the performance-to-value offerings. Now, despite Q3 being a channel stopping period focused on electric bicycles, our enhanced motorcycle portfolio supported a healthy 14% revenue contribution from motorcycle sales. We expect this year to increase in the coming quarters. A key milestone in Q3 was the successful launch of the FX Windstorm version on September 28th. Known for its sharp, distinctive styling that resonates strongly with Gen Z riders, the FX Windstorm reinforced F-series positioning as a performance powerhouse. Priced at RMB 4,799, it targets the RMB 4,000 segment as its first high-speed motorcycle for the young riders.

Yan Li
Yan Li
CEO at Niu Technologies

Equipped with a 3,000-watt motor, reinforced frame, and a full-size TFT display and four-piston disc brakes, it delivered performance comparable to a model priced above RMB 10,000, including 80 km/h top speed and 0 to 50 km/h in 4.7 seconds. The FX Windstorm was an instant success, with 14,000 units sold in the first five hours and the January RMB 68 million in GMV and ranked number one month though in Tmall, TV.com, and the Kuaishou in GMV and popularity. This success validates our strategic expansion into the electric motorcycles and creates strong momentum for upcoming launches such as FS, targeting the entry-level users. Now, alongside the high-end electric bicycle motorcycles, we dedicated significant R&D resources to the new standard-compliant electric bicycles. The updated regulation requires substantial redesigns from the limit usage of plastics to form factors.

Yan Li
Yan Li
CEO at Niu Technologies

We now plan a full rollout of compliant products beginning in late November and extending through Q1 2026. The portfolio will include the Renewed N-series, M-series, and U-series offerings and also introduce new series designed to reach a broader consumer segment, including products optimized for female riders. Now, beyond the new product development, we continue to invest in core technologies, including the smart riding system, powertrain innovation, and R&D platformization to enhance efficiency and capabilities. Our smart riding and the AI effort focus on three areas: expanding the foundational safety technologies such as the ABS and millimeter wave radar, developing assistive riding features for premium models such as the two-way throttle and downhill assist, and building an intelligent ecosystem to broader third-party integrations.

Yan Li
Yan Li
CEO at Niu Technologies

Through partnerships with Apple and OPPO, with other industry leaders, we expand the cross-device connectivity, including the off-site safety alert and Apple Wallet key access, enhancing overall user experience. In the powertrain system, we advance several next-generation initiatives through a deeper motor control R&D and close collaboration with our battery partners. Our efforts focus on two key objectives: delivering a higher peak current output for stronger acceleration and fine-tuning all system efficiency to extend lower riding range under the diverse conditions. The NXT Ultra 2025 and the FX Windstorm are the strong examples of R&D achievement. The enhanced powertrain architecture enables 0 to 25 km/h acceleration in just 1.92 seconds, setting a new benchmark for urban performance.

Yan Li
Yan Li
CEO at Niu Technologies

For the FX Windstorm, the upgraded 3 kW high-efficiency motor and optimized controller deliver top speed of 80 km/h while maintaining stable power delivery, improved thermal performance, and consistent power output even during the extended high-speed riding. Those advancements not only elevate riding performance but also form a foundation for the new generation of a new powertrain platform that will scale across future product lines. Now, lastly, our product-based R&D strategy continues to deliver a meaningful operational benefit. In Q3, it accelerated product iteration, strengthened manufacturing consistency, and increased the economy of scale. The improvements supported a smooth delivery of 450,000 units, surpassing our previous peak by roughly about 20%, while enhancing margins through shared components and modular design across product lines. Now, in Q3, we continued elevating the new brand and the deepened engagement with our core audiences, particularly improving consumers and Gen Z riders.

Yan Li
Yan Li
CEO at Niu Technologies

Our approach integrates lifestyle campaigns, hiring product launches, and target digital engagement to strengthen brand equity and drive conversion. We actively use focused lifestyle campaigns, the Summer Ride and Splash campaign, embedded into the outdoor leisure scenes such as lake diving and quick hiking across major cities, generating 130 million impressions across online and offline channels. Following the FX Windstorm launch, we hosted large-scale test ride events in Chengdu and Chongqing, engaging riders in real mountain environments. This created an authentic word-of-mouth within the key user segment to provide valuable feedback. Our launch event continued to highlight new technology leadership. On June 17, the FXT Ultra flagship launch generated about 20,000 units sold in five hours with GMV exceeding RMB 228 million. The FX Windstorm launch delivered 14,000 units sold in five hours at 93% positive ratings, resonating strongly with the Gen Z and delivery riders.

Yan Li
Yan Li
CEO at Niu Technologies

Now, we're strengthening both offline and online channels. As of Q3, Niu surpassed 4,500 stores nationwide, with 238 net new stores added in Q3 and 800 year-to-date. Nearly half of new stores were in the lower-tier cities, supporting deeper market penetration. Our digital ecosystem also scaled rapidly. You now manage nine official flagship accounts supported by 1,062 dealers' operated accounts. In Q3, the network generated 30,000-plus live streams, 69,000 content pieces, and 740 million impressions. The online sales represent close to 70% of our total volume. We also expanded onto a new e-commerce platform, Xiaomi Tuan, which piloted with 10% of stores generating RMB 40 million-RMB 50 million monthly sales. We plan to expand store coverage and more motorcycles next.

Yan Li
Yan Li
CEO at Niu Technologies

On Kuaishou Local Services, over 2,200 stores have joined, and FX Windstorm ABS launched ranked number two nationally, reinforcing our brand resonance among Gen Z riders in the lower-tier market. Now, turning to overseas market, Q3 unfolded as expected, a transitional quarter as we continue to optimize operations and prepare for our next growth cycle. The overseas sales volume reached 14,000 units, with declining micro-mobility offset by encouraging progress in electric motorcycles. Despite Q3 being a seasonal low for European two-wheeler demand, our electric motorcycle sales reached approximately 2,500 units, up 160% year-over-year. The self-operated sales accounted for 76% of total. We further accelerated our self-operated dealer network expansion, seeing those direct distribution regions grow from 120 at the start of the year to 289 in Q3, exceeding our initial target of 250.

Yan Li
Yan Li
CEO at Niu Technologies

This reflects the strong brand recognition, product competitiveness, and the growing retailer confidence in the direct distribution model. With channel foundations now established, we will shift from capability building towards product rollout and deeper channel market penetration. The product lineup and vehicle EICMA position us strongly for multi-year goals. At EICMA, the largest two-wheeler show in Milan, we showcased our international product roadmap, expanding from smart extruders to broader electric mobility portfolios. Highlights included the 2026 NQI X-series with Google Maps integration, featuring the 125 km/h NQI 1000 launch in Q3 2026. The all-new XQI X-series for city commuters in the L1e and L3e version for Q3 2026. The expanded XQI series, including the 110 km/h XQI 500 series version, affecting half of 2026. Lastly, the Concept 06, a forward-looking 155 km/h platform featuring AI-assisted intelligence for advanced safety.

Yan Li
Yan Li
CEO at Niu Technologies

The newest NQI 500 was awarded Top Award 2025 by German leading motorcycle media outlet 1000 PS. This is a strong validation of our product excellence. Micro-mobility volume reached 11,900 units, down 77% year-over-year, reflecting market headwinds in the U.S., Europe, and Asia. Europe saw an intensified price competition, while the U.S. shifted towards a lower price model due to tariff dynamics. In Q3, we intentionally reduced promotion and shipment to avoid overstaffing and protect margins during a period of pricing pressure and supply chain transition. Given the current limited levels in Europe and the U.S., we expect the structural adjustment to continue for the next couple of quarters. Now, look ahead. We'll continue executing our strategy of driving fast growth in the China market and scaling our international electric two-wheeler business while strategically adjusting the micro-mobility operation.

Yan Li
Yan Li
CEO at Niu Technologies

We expect China to remain our primary growth driver, our strong execution across the first three quarters, where we break out product each quarter, demonstrating our capability in product definition, channel activation, and brand influence. However, we expect some uncertainty and soft landing in Q4 this year due to the timing of the new standard implementation. The retailers have preloaded inventory in Q3, shifting some demand from Q4. The new standard-compliant product will ramp up from late November through Q1 2026, shifting part of the Q4 demand into Q1 2026. Combining those factors will likely result in a relatively flat year-over-year volume in Q4. We expect growth to re-accelerate in Q1 2026 as the regulatory transition completes and the market stabilizes. The fourth new standard electric bicycle lineup, along with 300-400 new source additions in Q4, will support a strong momentum into 2026.

Yan Li
Yan Li
CEO at Niu Technologies

Now, turning into the overseas market, for electric two-wheelers, we expect strong year-over-year growth in Q4, supported by ongoing expansion of direct distribution network. The new product introduced at EICMA will fuel the multi-year growth starting in 2026. In micro-mobility, we'll continue prioritizing profitability over sales in Q4, reducing promotions and focusing on clearing existing inventories. This will lead to a lower Q4 volume. We expect the adjustment to conclude in the first half of 2026, with margins returning to the normal level in the second half of 2026. Now, with that, let me turn the call to Fion.

Fion Zhou
CFO at Niu Technologies

Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the third-quarter figures unless they are otherwise.

Fion Zhou
CFO at Niu Technologies

All mandatory figures are in R&D, if not specified. As Yan just mentioned, our total sales volume for the third quarter was 466,000 units, up 49% compared to the same period of last year. Among this, 451,000 units sold in China and the remaining 14,000 units overseas. Nearly 50% of our sales volume in China came from our top three models this quarter, and the number of franchise stores in China was 4,542 at the end of the third quarter. Total revenue for the third quarter amounted to RMB 1.69 billion, an increase of RMB 670 million, or 65% compared to the same period of last year. The results came in slightly ahead of our guidance, primarily due to the robust sales volume growth in China during the peak season in the third quarter. China revenues were RMB 1.62 billion, increased 84% year-over-year and accounting for 95% of total revenues.

Fion Zhou
CFO at Niu Technologies

Of this, the scooter revenue was RMB 1.48 billion, and this growth was primarily driven by a 74% increase in sales volume and coupled with a higher ASP. China's scooter ASP was RMB 3,283, representing a nearly 7% year-over-year growth and remaining largely stable compared to the previous quarter. This growth was primarily driven by a favorable shift in our product mix. In Q3, our top-seller MT, with a retail price range from RMB 3,699-RMB 4,599, continued to perform well. In the meantime, complemented by a strong contribution from the new products like the NLP and NSP, ranged from RMB 3,899-RMB 6,299. Collectively, these three top sellers accounted for nearly 50% of our total sales volume this quarter. Overseas revenue was RMB 77 million, representing 5% of total revenue.

Fion Zhou
CFO at Niu Technologies

Scooter revenues, including electric motorcycles and mopeds, kids' scooters, and e-bikes, amounted to CNY 67 million, down from CNY 130 million in the same period of last year. This decline was driven by a decrease in sales volume and ASP of kids' scooters. Overseas scooter ASP increased 90% year-over-year and 41% quarter-over-quarter to CNY 4,648, driven by a greater proportion of revenue coming from the higher-priced electric motorcycles and mopeds. Revenue from accessories, spare parts, and services was CNY 145 million, representing 8.6% of total revenue and a 51% increase compared to the same period of last year due to the increase in spare parts sales in China. Gross margin this quarter, gross profit this quarter exceeded CNY 370 million, marking a significant improvement compared to CNY 142 million during the same period of last year and CNY 252 million last quarter.

Fion Zhou
CFO at Niu Technologies

The gross margin was 21.8%, 8 percentage points higher than the same period of last year and 1.7 percentage points higher than the previous quarter, marking our best quarterly gross margin performance this year. This improvement was driven by the ongoing cost reduction initiatives and the economy of scale from higher sales volume in the China market. Operating expenses for the third quarter were RMB 297 million, increased to 48% compared to the same period of last year. The OpEx ratio down to 17.5%, dropped from 19.6% in the same period of last year and 21.1% in the previous quarter. Selling and marketing expenses rose by RMB 87 million year-over-year to RMB 250 million, primarily driven by a higher spending on marketing and online promotion campaigns in China. Selling and marketing expenses representing 12.7% of revenue compared to 12.5% in the same period of last year and down from 16.1% last quarter.

Fion Zhou
CFO at Niu Technologies

R&D expenses increased by RMB 13 million year-over-year to RMB 43 million, primarily due to the higher staff cost and share rate compensation. R&D expenses representing 2.6% of revenue compared to 3% in the same period of last year and down from 3.5% last quarter. G&A expenses decreased by RMB 4 million year-over-year to RMB 39 million, mainly due to the improved cash collection from account receivable, which resulted in the reversal of bad debt provision. G&A expenses representing 2.3% of revenue, down significantly from 4.2% in the same period of last year, up from 1.5% last quarter, as the company benefited largely from foreign currency exchange gains in the previous quarter. The net income was RMB 82 million, with a net margin of 4.8% on the GAAP accounting, compared to a net loss of RMB 41 million for the same period of last year and net income of RMB 5.9 million for last quarter.

Fion Zhou
CFO at Niu Technologies

The non-GAAP net income was 88 million. Turning to our balance sheet and cash flow, we ended the quarter with RMB 1.8 billion versus 1.1 billion last year in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to 433 million. The CapEx amounted to 73 million, reflecting an increase of 32 million compared to the same period of last year. This can be attributed primarily to an increase in the opening of new stores and modules cost in China. Now let's turn to guidance. We expected the fourth quarter revenue to be in the range of RMB 737 million-RMB 901 million, representing a year-over-year change of -10% to +10%.

Fion Zhou
CFO at Niu Technologies

Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to uncertainties relating to various factors. With that, we will now open the call for any questions you may have for us. Operator, please go ahead.

Operator

Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A queue. Once again, you will need to press star one and one on your telephone to register a question and wait for your name to be announced. To withdraw your question, please press star one and one again. Thank you.

Operator

Seeing no more questions in the queue, let me turn the call back to Mr. Li for closing remarks.

Yan Li
Yan Li
CEO at Niu Technologies

Thank you, Operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

Executives
    • Kristal Li
      Kristal Li
      Investor Relations Manager
    • Yan Li
      Yan Li
      CEO
Analysts
    • Fion Zhou
      CFO at Niu Technologies
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