Niu Technologies Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 11, 2025

Key Takeaways

  • Positive Sentiment: China sales volume reached 318,000 units in Q2, up 54% year-over-year, with ASP rising 11% quarter-over-quarter as high-end scooters regained share.
  • Positive Sentiment: Revenue climbed to RMB 1.26 billion, up 34% year-over-year, and gross margin expanded to 20.1%, driven by portfolio optimization and cost reductions.
  • Negative Sentiment: Overseas scooter sales fell 35% year-over-year due to U.S. tariffs and intense European competition, though electric mopeds grew over 4×.
  • Positive Sentiment: Third-quarter revenue is guided to RMB 1.4–1.6 billion, a 40–60% year-over-year rise, reflecting seasonal tailwinds and expected inventory build ahead of new e-bike standards.
  • Neutral Sentiment: New national e-bike regulations take effect September 1 (manufacturing) and November 30 (retail), with a smooth transition expected thanks to product readiness and retailer buffer time.
AI Generated. May Contain Errors.
Earnings Conference Call
Niu Technologies Q2 2025
00:00 / 00:00

There are 7 speakers on the call.

Operator

Day, ladies and gentlemen. Thank you for standing by, and welcome to the New Technologies Technologies Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a 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.

Operator

If you have any objections, you may disconnect at this time. Now I'll turn the call over to Ms. Crystal Li, Investor Relations Manager of Nu Technologies. Ms. Li, please go ahead.

Speaker 1

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the second quarter twenty twenty five. The earnings press release, corporate presentation and financial spread sheets have been posted on our Investor Relations website. This call is being webcast from company's IR site as well, and a replay of the call will be available soon.

Speaker 1

Please note, today's discussion will contain forward looking statements made under the safe harbor 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.

Speaker 1

Further information regarding the risk factors is included in company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward looking statements, as required by law. Our earnings press release and this call include discussion of certain non GAAP financial measures. The press release contains the 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, Doctor.

Speaker 1

Yan Li and CFO, Ms. Fian Zhou. Now let me turn the call over to CEO Yan.

Speaker 2

Thank you, Crystal. Hello, everyone. Thank you for joining us today. So 2025 marked another strong performance for us, building on solid momentum from Q1. So this quarter, our total sales volume reached 350,000 units, representing a 37% year over year increase.

Speaker 2

In the China market, the sales volume surged by 54% to 318,000 units, continuing the growth trend in Q1. The overseas market recorded a 31,000 units, a 35% year over year decline, mainly due to the impact of The US tariff coupled with intensifying competition in the European market for the micromobility segments, while in overseas market, our electric toolers continue to grow at 4x. However, we have seen positive signs on the structural improvements in our overseas operations, which I'll elaborate on in subsequent sections. Our revenue and gross margin also demonstrated strong improvement this quarter. Revenue reached RMB 1,260,000,000.00, a year over year growth of 3534%, while the gross margin stood at 20.1 percentage, up 3.1% year over year or 2.8 percentage quarter over quarter compared to Q1.

Speaker 2

As previously mentioned, this positive outcome is primarily driven by the product portfolio optimization and the cost reduction achieved through product platformizations of our product and the components. We also achieved net profit RMB 5,900,000.0. Where we are still navigating the challenges on the profitability front, our disciplined execution and the focused strategy continue to position us, well for both revenue and profit growth. The performance of this quarter reaffirmed our growth strategy from product development, technology innovation, expanded sales channels to brand management. Our teams have delivered strong results across all those fronts.

Speaker 2

I will now provide more details starting with our progress in the China market. In China market, Q2 sales, as I mentioned, reached about 318,000 units, representing 54% year over year growth. Although this volume growth rate is 12% lower compared with the Q1 results of year over year growth rate of 66%, the actual revenue growth from scooters year over year for China is 45%, six percentage higher than the Q1 results. As mentioned in the last call, we observed the ASP decline in Q1 as we introduced two entry level models, or MTMMT, in the market responsible for the ASP drop and partially responsible for the high volume growth in Q1. In Q2, as we continue to optimize our product portfolio, the ASP increased by 11% compared with Q1.

Speaker 2

And the Q2 ASP is back close to the 2024 annual level. Now in 2024, last year, our development effort in product was centered around the electric bicycle product with NXT, NT, MT, and has driven a strong growth since then. In the first half of this year, we really focused on electric motorcycle product development to really strengthen our positions in this sector. As we mentioned in the previous quarter, we launched NX Pro electric motorcycle priced at RMB 9,999, positioned as a speed champion among the sub 10,000 RMB electric motorcycles. In Q2, we may expand our high end electric motorcycle lineup by introducing three core models, the NX L, NL, and FX Pro, covering a price range from RMB 4,000 to over RMB 10,000.

Speaker 2

All those models are equipped with advanced intelligent features aligning with our new performance and safety standard, such as a full color TFT display with green mirror navigation, the Okay Go technology, boosting a top speed between 55 to 80 kilometer per hour, undergoing a comprehensive upgrade in handling and performance, and delivering a premium intelligent experience. Those models account for 12% of our total sales volume in Q2. Now building on that momentum, we introduced the NS in July, entry level Smart e motorcycle priced between RMB 3,599 to 4,499. The NIS is built for young urban riders featuring a compact nimble body, a 100 kilometer extended range, and the intelligent features such as a dual weight throttle and downhill assist. Those functionalities typically reserved for premium model are now accessible in the sub RMB4000 e motorcycle segment, giving InMess a strong potential to capture this rapid market share.

Speaker 2

Now with those add ons, we have a complete lineup of motorcycle product in the N series ranging from 3,599 entry level product to a sub 10,000 high speed motorcycle product. We also launched with the launch of FX Pro, we also have a good lineup of F Series product with more to come in the second half of this year. The current electric motorcycle sales only represent less than 20% of our total volume with much more growth potential. Now talking about the new national, standard for the electric bicycle product, which will take effect in September 1, this new regulation will have a set of new requirements for electrical bicycle products, such as a percentage of plastic being used, the total weight, and the form factors. We are developing new product lines and modifying the existing product lines to comply with the new requirements.

Speaker 2

Those products that fit with the new requirements will be rolled out in September and Q4 this year. The new requirement required the manufacturer to stop shipping all standard products by August 31. However, it allows distributors and retailers to continue to sell old standard product until November 30. Hence, with the prepared new product as well as the extra buffer time for the retailer to sell the old standard product, we expect a rather smooth transition from old standard to the new standard in Q4. Now we continue to invest in technology innovation, mainly focusing on smart technology and powertrain systems.

Speaker 2

On the smart technology side, we continue to focus on the seamless driving experience, AI smart control assist assistance, and AI smart ecosystem features. As safety continued to be an important topic for two wheel mobility, in Q1, primarily focused on enhancing driving safety, gradually rolling out features such as a driver dynamic safety warning system, in collaboration with skeletal maps. Additionally, more products are standardized to meet our new safety standards, equipped with with screen mirror navigations, millimeter wave radar, and dual channel ABS. We're the industry first introduced the dual channel ABS adoption in electric bicycles in 2024 on our ANX model in Q2 last year. After one year of continuous development integration, we have incorporated dual channel ABS in many of our electric bicycle models.

Speaker 2

As of now, about one third of electric bicycle models sold are equipped with ABS, coming from old to mid to high end electric bicycle series. Now in Q2, we're focused here to be implementation of AI smart control assistance with launch of features such as the dual throttle and downhill assist. Leveraging the sensors and gyroscoping installed across the scooter, we monitor its real time status, such as the low speed driving mode as well as the steering direction and angle data. With our proprietary algorithms, we use those data to develop smart control system to provide a driver assistant functionalities, such as assisted pushing or reverse backing and parking functions, making the consumers' control experience more effortless and convenient. In the powertrain system, we continue to collaborate with industry leading battery operators battery suppliers to really develop forward looking R and D initiatives and technology adaptations on new battery technologies.

Speaker 2

Those innovations will be released in subsequent quarters. In Q2, our branded strategy center along align the product launch with high impact marketing milestones events to demonstrate our technology innovation. We showcased our technology powers on the tracks. On May 23, we have professional research setting a China record of lap time of two minutes fifty eight seconds with our NX model on the Shanghai F1 circuit. In the product launch dynamics, our May 13 All Star eMotocycle launch event with NXCL NLFX that will emerge as a sales sensation, taking RMB100 million GMV within just five hours and moving over 10,000 units across all online platforms.

Speaker 2

This momentum continued into the six eighteen shopping campaign where we surpassed our previous record with RMB 1,060,000,000.00 in GMV, a 128% year over year search, fueled by a massive live streaming session. The campaign generated about 1,560,000,000 impressions, further solidifying our premium brand positioning in 37 key urban markets. And in July 17, we saw another successful launch with our NXT Ultra and FXT Ultra models, joining about 49,000,000 views and 3,600,000 livestream viewers. Within five hours, those models achieved a staggering 20,000 units sold and RMB $220,000,000 in GMV, securing top rankings across all major e commerce platforms. To celebrate our remarkable tenth anniversary, we also sponsored a play festival on June 1 with 30,000 participants, among which many are new users.

Speaker 2

The total view of such an event reached two twenty million. Now in terms of content placement, our Q2 media campaign cast a wide, yet a targeted, campaign spanning 41 cities and included over 500,000 outdoor placement across six major urban scenes. Online, we engagement on platform like Douyin, Weibo, Xiaohongshu, and Bei Library partners partnering with over 10 thou with 1,000 creators across 12 verticals and generated 4,000,000,000 exposures. By the quarter end, the total campaign expression exceeded 4,500,000,000.0, underscoring the effectiveness of our integrated brand approach. Now speaking of channel expansion, we have continued our PREAST strategy with strong focus on penetrating the PREAST underrepresented market in China.

Speaker 2

We're strategically expanding our retail footprint to ensure that product reach a broader consumer base. In Q2, we expanded our retail footprint by net adds, 185 new stores, with significant focus on tier three and tier four cities, which accounts for 50% of net adds. Year to date, we have net adds total of five sixty nine stores. This strategic expansion not only refined our distribution network but also laid a solid foundation for the upcoming product launch in the second half of the year. Now with this effort, in the first half, the percentage of sales from tier three plus cities grew by four percentage points, in terms of contributions, demonstrating our successful effort in penetrating the lower tier cities.

Speaker 2

Additionally, our online presence has been significantly strengthened with sales performance improving across multiple online channels. Our currently manage 11 official branded accounts, a 48 localized account, and close to 800 store accounts. Those multi tiered strategies have hosted about 20,000 live broadcasts, generating about six twenty million views, an 8x increase compared with last year. This robust news online visibility and customer interactions contributing about 250,000 units in sales, representing 77% of total sales volume. Now turning into our overseas business.

Speaker 2

We recorded a total sales volume of 30,000 units 31,000 units in Q2, representing a 35% year over year decline. However, the scooter revenues declined by only 20% as electric tooler products started to contribute more in the sales with higher ASP. The sales, as micrometability declined by 41 due to the impact, as mentioned, a tariff driven adjustment in The U. S. Market and the pressure from intensive price completion in the key European market.

Speaker 2

Now let's first talk about electric moped segments. Our strategic transition to a direct distribution model in key market begin to yield tangible results. In Q2, we delivered over 3,200 electric two wheeler units in overseas market, marking a more than 4x increase compared with same period last time. And close to 45% of those sales are engineered from our direct distributed channels, making a significant shift from last year and confirming the gross traction of our direct sales approach. Our core market, including Germany and Italy, have now secured a top position in market share, a direct outcome of this robust and efficient direct distribution system we have built in the past years.

Speaker 2

Our regional network for the direct distributed regions had also expanded. In Q2, we increased number of direct discrete stores from 181 to two forty four, adding 63 locations. This figure is three times the number of stores we had during the same period last year and aligns closely with our target of building a two fifty stores network. On the micromobility segment, it declined by 41% year over year, although we saw a 50% quarter over quarter increase. The year over year downturn is primarily attributed to challenging market conditions in Europe and United States market, where the emerging bright spot emerged in the Asian market.

Speaker 2

Our US sales declined by 17% in Q2, particularly due to a strategic channel management and the market trend shift. In Q2, the retail and sell through prices were not adjusted to reflect the recent tariff changes. To avoid channel staffing, we proactively reduced the volume. Notably, the activation number, basically the sell number to the consumers, still grow by 10% year over year, indicate a healthy end user demand. We also observed that customer preference in The US are trending towards the low to mid pricing scooters, leading to a decline in sales of our premium scooter models.

Speaker 2

To address this, we have provided our entry level k 90 model, which is scheduled to be launched in q four. Now the European market faced a significant headwind due to intensified price competition across key markets, including Germany, France, Italy, and Spain. This aggressive pricing environment pressured our sales performance in the region, contributing substantial overall segment decline. Now in contrast to the Europe and The United States market, the Asian market delivered a healthy growth with 21% year over year increase. This positive performance reflected strong market demand and the effective execution of our original strategy.

Speaker 2

On the retail coverage side, our channel expansion had reached maturity with over 2,100 retail locations now carrying new mobility products globally. A key highlight in Q2 are is our participation in the Best Buy Achiever event in The US, where we connected with top performing sales associates, conducted 68 test rides, and explored new service partnerships such as in store repair solutions with Best Buy's Geek Squad. Those interactions paved the way for a deeper retail integration and long term growth, in The United States market. Now looking ahead, we remain optimistic about the performance both of China overseas market in the second half of the year. In China, believe in Q3, we'll benefit from the both seasonal trends, the strong product momentum, and the potential temporary demand surge due to the new regulations.

Speaker 2

The launch of highly competitive NES electric motorcycle and upgrade the also the upgraded smart electric bicycle product in q two has positioned us effectively to meet evolving, consumer preferences. Our channel expansion efforts throughout 2024 and the first half twenty twenty five are the second driver to the sales growth as we target to add about 1,000 plus stores for the entire 2025, we have added about five eighty nine stores in the first half with more to come in Q4 and q in Q3 and Q4. Furthermore, the upcoming implementation of new national regulation for electric bicycles indicate that the manufacturers cannot manufacture old standard bicycles after August 31, and the retailers cannot sell old standard bicycles after November 30. This will in turn drive distributors to build up inventories in Q3 and also drive bit demand surge in Q4 as consumers won't be able to buy the old standard product after November 30. And, also, our effort in the product portfolio optimization and platformization has also demonstrated positive results in gross margin improvement and ASP improvement.

Speaker 2

Looking forward, we're confident that we can maintain a healthy gross margin and stable ASP throughout the second half of the year. Now looking forward for the overseas market, we're on a path towards recovery and profitability. The significant growth in the electric two wheeler, I. E. Electric motorcycle and moped moped sales and the strong performance of our direct distributed regions this year validated both the market competitiveness of our products and the retail capability of our channels.

Speaker 2

Our direct distributed electric moped business has demonstrated a distinct local advantage, but here in the strategy of continuing to expand storing in this direct to distribution, we expect to continue the growth trend as we observed in Q2. In the micromobility segment, we're closing the gap between the losses and breakeven. In The U. S. Market, as tariffs are finalized clear for the Southeast Asia and China, we continue to negotiate a price increase for existing product with retailers and roll out a low cost version for better to a better addressed market.

Speaker 2

This will help The U. S. Market to turn profitability. In the European market, we're planning to recover from the decline in first half and focus more on the profitability in the selected market. Now with that, let me turn the call to Fion.

Speaker 3

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 second quarter figures unless I say otherwise and all monetary figures are in RMB if not specified. As Yan just mentioned, our total sales volume for the second quarter was 350,000 units, up 37% compared to the same period of last year. 319,000 units were sold in China, while the remaining 31,000 units were sold overseas.

Speaker 3

Nearly 50% of our sales volume in China came from our top three models this quarter. The total revenue for the second quarter amounted to RMB1.26 billion, an increase of million or nearly 34% compared to the same period of last year. China revenue was billion, accounting for 91% of total revenue. Of this, the scooter revenues were billion, a year over year increase of 5%. And this increase was mainly due to the increase in sales volume.

Speaker 3

China's scooter ASP was RMB3316, down 5% year over year, but up 11% quarter over quarter. And this decline was primarily attributed to a shift in product mix. In last year's Q2, large scale scooters like NXP and Play dominated our bestsellers with average retail price exceeding RMB5000 in this year's Q2. However, the MT models are more compact scooter emerged as the top seller capturing over one fifth of the total sales unit at a retail price range of RMB3700 to RMB4600. And overseas revenue were million, representing 9% of total revenues.

Speaker 3

The scooter revenue including electronic motorcycles and mopeds, kick scooters and e bikes amounted to RMB103 million, down from 130,000,000 in the same period of last year. And this decline was driven by the decrease in sales volume and ASP of kick scooters. While overseas scooter ASP increased 23% year over year to RMB3288 and driven by the increased proportion of electronic motorcycles in the total sales volume. Revenue from accessories, spare parts and services amounted to million, a 15% increase compared to the same period of last year due to the increase in spare parts sales in China market. The gross margin exceeded $252,000,000, marking a significant improvement compared to RMB 160,000,000 during the same period of last year and RMB 118,000,000 last quarter.

Speaker 3

The gross margin was 20.1%, 3.1 ppt higher than the same period of last year and 2.8 ppt higher than the previous quarter. Domestic market gross margin improved due to the successful cost reduction initiatives contributing to a 5.1 ppt increase in overall gross margin. However, the overseas margins reduced overall gross margin by two ppt, primarily due to three factors: a change in Kick Scooters product mix, the impact of U. S. Tariffs and aged inventory write downs.

Speaker 3

The operating expenses for the second quarter were million, increased 38% compared to the same period of last year. The OpEx ratio rose slightly to 21.1% from 20.4% year over year, but decreased from 24.2% last quarter and 22.8% for the whole year 2024. Selling and marketing expenses rose by $82,000,000 year over year to $2.00 $2,000,000 primarily driven by a higher spending on online shopping festivals and marketing events in China. Selling and marketing expenses representing 16.1% of revenue compared to 12.8% in the same period of last year, but down from 16.8% last quarter. R and D expenses increased by $11,000,000 year over year to 44,000,000 primarily due to a higher staff cost and share based compensation as well as higher design and testing expenses.

Speaker 3

R and D expenses representing 3.5% of revenue compared to 3.4% in the same period of last year, but down from 4.4% last quarter. G and A expenses decreased by $20,000,000 year over year to $19,000,000 largely attributed to a foreign currency exchange gains. G and A expenses representing 1.5% of revenue, a notable reduction from 4.2% in the same period of last year and 3% last quarter. Net income was RMB5.9 million with a net income margin of 0.5% under GAAP accounting, compared to a net loss of RMB25 million for the same period of last year. The non GAAP net income was RMB13.7 million with non GAAP net margin of 1.1%.

Speaker 3

And turning to our balance sheet and cash flow, we ended the quarter with RMB1.4 billion versus RMB1.1 billion last year and in cash, restricted cash, term deposits and short term investments, our operating cash inflow amounted to RMB519 million. CapEx amounted to RMB32 million, reflecting an increase of RMB12 million compared to the same period of last year and this can be attributed primarily to an increase in opening of new stores and modules cost in China. And now let's turn to guidance. We expect third quarter revenue to be in the range of RMB1.4 billion to RMB1.6 billion, an increase of 40% to 60% year over year. 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 reflecting various factors.

Speaker 3

And with that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.

Operator

Thank you. We will now begin the question and answer session. We will now take our first question from the line of Yatin Chen from CICC. Please ask your question, Yatin.

Speaker 4

Hi, this is Yatin from CICC. Congratulations for your outstanding performance. And I have one question. I'd like to know the reasons of I'd like to know that what are the reasons for the increase of unit price and gross profit margin in second quarter? And what's your outlook for the unit price and gross profit margin in the third quarter?

Speaker 3

Okay. This is Piyang. I'll take this question. Regarding to the overall blended ASP, the ASP improvements quarter over quarter mainly due to the product mix improvement, especially in China scooters. Last quarter, our ASP is around RMB3000 in the domestic market, just because we launched two smaller or more compact scooters, MT and MMT, which the retail price range is through 3,500 to RMB 4,800.

Speaker 3

So, this will drag down the ASP last quarter. And this quarter, since we launched the upgraded version of the NXT 2025 version, the NLT and also the Nplate, which all the large scale scooters and the operating version from our best sellers and the retail price exceeding RMB5000. So, the blended product mix in China market rose up by those bestsellers. And additionally, in the overseas market, this quarter, our eMotocycles sales volume increased more than 3,000 units. And our motorcycle ASP was around RMB15000, which includes the FOB models and also the GDP models.

Speaker 3

And this will improve the overseas blended ASP as well. As to the gross margin, actually both on the cost reduction side and also the our ASP improvement brought up the overall China market gross margin. Actually, in this quarter, our China domestic gross margin with the scooters and also the non scooters altogether, the gross margin in the domestic market is more 21% overall. So, this is a very optimistic and a very good figure for the past six quarters. And this also improve give us a better gross margin for the overall gross margin for the total gross margin for our business this quarter.

Speaker 3

Hope this will answer your question.

Speaker 4

Thank you. And I have another question. I'd like to know that how do you predict sales volume next year for the domestic electric two wheeled vehicles? Some investors are worried about that.

Speaker 2

I so it's the answer. Let me address this question. I think I think currently, we're still it's still really early to predict the sales for for next year. I mean, I think the one thing we're looking at is actually with this new as I mentioned, there's this new regulation that's going to be effective with two dates. Right?

Speaker 2

One date is actually September 1. That's for the manufacturers. One date is December 1. That's for the retailers. So if you look at the entire market, you know, there are speculations that maybe some of the demand from next year will shift it to this year because of, you know, because of regulatory changes.

Speaker 2

But we're still being very cautious at this point to, you know, actually to observe the market. In terms of new, I think, you know, what we are doing right now is actually we're preparing. We have a multiple line of products that there are new series that will comply with the new standard. And also we're modifying our existing series to comply with the new standard. At the same time, we continue to increase the number of retail stores.

Speaker 2

And those two actions will help us to really to drive the growth for next year regardless of market changes.

Speaker 4

Thank you. That's all my questions.

Operator

Thank you. Our next question comes from the line of Kai Kang from Citi. Please ask your question, Kai.

Speaker 5

Hi, thank you for this opportunity. This is Kai Kang from Citi. And then congratulations for this strong performance in second quarter. And I also have two questions. And the first question is about the overseas market.

Speaker 5

So we know that in the last two years, we were under a high pressure in overseas market, our performance was under pressure. So do we think we have working out of the rules or the going out of the bottom and are climbing other games due to our new driver on e scooter and also our new direct selling channel in overseas market? So can we expect maybe a better, brighter future since the second half and then to the next year in overseas market? Thanks.

Speaker 2

Right. So, Kai, to address your question, I think, you know, the short answer is yes. We spent the last two years, because the overseas market for electric two wheelers, the mopeds, Europe is actually one of our largest market. And we really spent the last two years building up the direct distributor models. It's very complex.

Speaker 2

It requires setting up our own operations from logistics to dealer financing. So we really spent last year to figure out that. And then it really started to turn around, basically second quarter this year. We look at our market share based on the registered vehicles, because many of the mopeds you sell in Germany, Italy require registration. We look at our market share in registered vehicles.

Speaker 2

We're actually number rev number one market share in Germany and Italy at this point, with much faster growing rate than our, you know, than our competitors in those markets. So we actually expect to continue the growth trend basically in the electric two wheeler market overseas, you know, to hopefully to get back to the peak level which will be in 2020 or 2021.

Speaker 5

Thanks. And I have another question about dealer network in China. So we know the last one year, the dealer network was the strong driver of our performance in the domestic Chinese E2W market that revenue. So do we think we'll keep open more new stores at a very fast pace? And like this year, in the next year, that means maybe next year, our dealer network stores number in China will reach about maybe 6,000 or 7,000, maybe some some speed speed like that.

Speaker 2

So I think right now we're at a 4,300. Right? And we're we're expecting to because this year, our total target was open about 1,000 stores or so. We we have net ads. So we have net ads added about five sixty nine stores.

Speaker 2

So we're looking at another about 400 stores to be net added in Q3 and Q4. So let's say we've achieved that target, though, get us to the number of about 4,700 stores. I think if you look at our competitors in this market, you know, and with the same price range, you know, I think at least the ceiling for us will be somewhere around 8,000 to 9,000 stores. And we still have a long way to go. So you look at basically for the next three years, you should be looking at we'll continue to expand our stores.

Speaker 2

At the same time, as we're opening stores, our per store sales hasn't really been dropped. Actually, the per store sales also has a slightly increase. I think it's more around like 7% to 8% per store sales. So with that, basically that demonstrates that by opening the stores, we didn't dilute the sales per stores. And that actually shows a sort of a trend for healthy growth or healthy channel expansion.

Speaker 5

Very clear. Thanks a lot. Thanks.

Operator

Thank you. We will now take our next question from the line of Michael Siemens from Global View. Please go ahead, Michael.

Speaker 6

Thank you. It's Michael speaking here. Congratulations, Doctor. Lee. Congratulations with China.

Speaker 6

It's very good results for q two. I just you've been for the last few quarters, you've been, posting, some good volume, sales growth, volume growth in the number of scooters, but revenue growth has always fallen behind that. This last quarter, it seems to be catching up a bit. Miss Chan, from you, the comments you've just been making, it sounds as though in this next quarter where you're predicting 40% to 60% revenue sales growth. Do you think that this will be the first quarter where, that's going to be actually ahead of the volume in scooters?

Speaker 2

So so, Michael, sorry. I I I didn't fully get the question. So you I the question based on the volume growth will be similar in line with the revenue growth for q three?

Speaker 6

Well, yeah. I mean, so far for the for a little while now, you've been achieving, revenue growth that's been behind, the the the volume growth in scooters. But, from what you're saying on this call, it sounds though in your guidance of revenue growth of 40 to 60% that actually this could be ahead of, scooter growth volume scooter growth in this quarter. Is is is my assumption correct?

Speaker 2

I think we so let me actually go back to my data here. If Ya has a data in front of her, you know, she could be better answer the question. My My sense actually will be very similar because if you look at our Q basically, you look at our Q3 twenty twenty, If I remember correctly, our ASP for China market for Q3 twenty twenty four is around actually RMB3000. It's actually significantly lower than Q2 twenty twenty four. And compared with our Q2 twenty twenty five, which is around RMB300.

Speaker 2

So Q3 typically to be it's actually a low quarter for ASP because it's actually a top sell season for China. So a lot of the low end scooters, even for us, will represent a higher percentage. So we're still halfway through Q actually, not halfway, about forty days in Q3. So we're still actually don't have the full picture on what our ASP is. Currently, we roughly estimate that, you know, sort of the ASP volume growth will be very similar in line.

Speaker 6

Okay. Thank you. That's that's helpful.

Operator

Right. Thank you. I'm seeing no more questions in the queue. Let me turn the call back to Mr. Li for closing remarks.

Speaker 2

Right. Thank you, operator, and thank you all for participating on 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

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Powered by Quartr