Niu Technologies Q2 Earnings Call Highlights

Key Points

• Revenue and sales increased: Q2 revenue rose 14.7% year over year to RMB 1.44 billion, while total unit sales climbed 24% to more than 434,000. Domestic growth was driven by electric motorcycles, which represented about 60% of China sales volume.
• Profitability deteriorated: Gross margin fell to 16% as the product mix shifted toward lower-margin motorcycles, input costs increased and overseas inventory was cleared. Niu reported a GAAP net loss of RMB 102 million, compared with net income of RMB 5.9 million a year earlier.
• Growth initiatives remain in place: Online domestic sales rose 50%, international electric motorcycle sales increased 50%, and the overseas dealer network expanded to 417 locations. Niu expects Q3 revenue of RMB 1.86 billion to RMB 2.03 billion and aims to normalize overseas inventory by year-end.

Niu Technologies NASDAQ: NIU reported second-quarter 2026 revenue growth and higher unit sales, although the electric two-wheeler maker recorded a net loss as product mix changes, higher input costs and overseas inventory clearance weighed on margins.

Total sales volume rose 24% year over year to more than 434,000 units. Sales in China reached about 400,000 units, up 26%, while overseas shipments increased 3.6% to approximately 32,000 units. Revenue climbed 14.7% to RMB 1.44 billion.

CEO Yan Li said the company’s domestic growth was led by its electric motorcycle category as China’s two-wheeler market undergoes a structural shift. The premium e-bicycle segment, historically a key category for Niu, declined an estimated 25% to 30% industrywide in the first half, he said, amid enforcement of new national standards for electric bicycles and weaker demand in top-tier cities.

Electric motorcycles drive domestic volume

Electric motorcycles accounted for roughly 60% of Niu’s China sales volume during the quarter, according to Li. The company has redirected research, development and product resources toward the category, which has gained demand particularly in lower-tier cities where motorcycles are not banned.

Li highlighted the N Fengchi series, aimed at delivery workers and cargo use, which was priced at RMB 3,399 and generated 32,000 online pre-orders on its first day. The NX Marathon series, launched in April with a stated full-throttle range of 146 kilometers, accounted for 11% of domestic sales volume in the second quarter.

The shift supported unit growth but reduced average selling prices and profitability. CFO Fion Zhou said China scooter average selling price fell 9% year over year to RMB 3,010, largely because electric motorcycles represented a greater share of sales. These products generally carry lower margins than Niu’s premium e-bicycles.

Niu said it continues to support the e-bicycle market through entry-level Y-series products and intends to reintroduce compliant mid- to high-end models priced between RMB 5,000 and RMB 7,000 in the third quarter. The company said the refreshed models will incorporate premium features and its AI operating-system and AI-assisted riding capabilities in an effort to improve average selling prices and defend margins.

Margins decline as costs and clearance efforts weigh

Gross profit fell to RMB 230 million from RMB 252 million a year earlier, while gross margin declined 4.1 percentage points to 16%. Zhou attributed 2.5 percentage points of the decline to product mix changes and higher costs in China, with the remaining 1.6 percentage points tied to lower margins on overseas kick scooters.

Li said the company used promotional activity and inventory write-offs to clear legacy international micromobility inventory. He described the resulting margin pressure as a deliberate, short-term measure intended to restore a healthier operating path.

Overseas micromobility wholesale shipments were about 27,000 units, while end-user retail activations exceeded 36,000 units, up 21% year over year. Activations rose 21% in May and 37% in June, according to Li, who said the figures showed that inventory-clearance initiatives were gaining traction.

Operating expenses increased 29% year over year to RMB 341 million. Selling and marketing expenses rose to RMB 239 million, reflecting increased domestic e-commerce advertising and branding investments as well as depreciation and amortization tied to store expansion. Research and development spending increased to RMB 52 million, and general and administrative expenses rose to RMB 51 million, primarily due to foreign-exchange losses on foreign-currency-denominated assets.

The company reported a GAAP net loss of RMB 102 million, compared with net income of RMB 5.9 million a year earlier. Its non-GAAP net loss was RMB 98 million.

Online channels and international motorcycle business expand

Niu said same-store sales in China increased 24% year over year. Its nationwide store network stood at 4,570 locations at the end of the quarter, with lower-tier cities representing 36% of the footprint.

Online sales increased 50% and represented 64% of total domestic retail sales. In addition to Tmall and JD.com, Niu expanded on Douyin through nine official flagship accounts and 1,600 dealer-operated accounts. The company said it conducted 57,000 livestreams and produced 90,000 short-form videos during the quarter, generating more than 720 million impressions.

International electric motorcycle sales rose 50% to 4,800 units. Niu expanded its overseas dealer network to 417 active locations at the end of the quarter from 307 at the beginning of the year. Higher-displacement 125cc-plus products accounted for about half of European sales volume, and Li said the improved mix helped the regional business reach local profitability.

The company also reported sales of more than 1,000 units in each of Algeria and Thailand, where it is pursuing an asset-light, profitability-first expansion strategy.

Third-quarter outlook

Niu ended the quarter with RMB 1.7 billion in cash, restricted cash, term deposits and short-term investments, up RMB 36 million from year-end. Operating cash inflow was RMB 392 million, while capital expenditures totaled RMB 53 million, driven primarily by new store openings and module costs in China.

For the third quarter, Niu forecast revenue of RMB 1.86 billion to RMB 2.03 billion, representing expected year-over-year growth of 10% to 20%. The company said it plans to continue expanding electric motorcycle offerings, including a female-focused product line, while working to normalize overseas inventory by the end of the year.

About Niu Technologies (NASDAQ:NIU)

Niu Technologies Co, Ltd., established in 2014 and headquartered in Beijing, is a leading designer and manufacturer of smart electric scooters and micro-mobility solutions. The company integrates Internet of Things (IoT) connectivity into its vehicles, enabling real-time monitoring of battery status, vehicle diagnostics, and location tracking through its proprietary mobile application. By leveraging lightweight materials and modular battery systems, Niu aims to deliver efficient urban transportation alternatives that reduce reliance on conventional gasoline-powered motorcycles and cars.

Niu's product portfolio encompasses a range of electric scooters, motorcycles, and e-bikes marketed under its NQi, MQi, and UQi series.

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