• Niu Technologies Announces Second Quarter 2021 Financial Results

    ソース: Nasdaq GlobeNewswire / 16 8 2021 02:00:00   America/Chicago

    -- Second Quarter Total Volume of e-scooter sales up 58.0% year over year

    -- Second Quarter Revenues of RMB 944.7 million, up 46.5% year over year

    -- Second Quarter Net Income of RMB 91.8 million, compared with RMB 56.8 million in the same period of last year

    BEIJING, Aug. 16, 2021 (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 2021.

    Second Quarter 2021 Financial Highlights

    • Revenues were RMB 944.7 million, an increase of 46.5% year over year
    • Gross margin was 22.7%, compared with 23.0% in the second quarter of last year
    • Net income was RMB 91.8 million, an increase of 61.6% compared with RMB 56.8 million in the second quarter of last year
    • Adjusted net income (non-GAAP)1 was RMB 104.0 million, an increase of 53.4% compared with RMB 67.8 million in the second quarter of last year

    Second Quarter 2021 Operating Highlights

    • The number of e-scooters sold reached 252,998, up 58.0% year over year
    • The number of e-scooters sold in China reached 246,018, up 58.8% year over year
    • The number of e-scooters sold in the international markets reached 6,980, up 34.8% year over year
    • The number of franchised stores in China was 2,366, an increase of 450 since March 31, 2021
    • International sales network expanded to 40 distributors covering 48 countries

    Dr. Yan Li, Chief Executive Officer of the Company, commented: “We delivered another strong quarter with China sales volume up by 58.8% and international markets sales volume up by 34.8% year-over-year despite continued challenges with COVID-19 and international logistics. Our new products F0 and F2 have been well received by customers and contributed to the volume growth. Our online sales accounted for 21.4% of our total sales volume, and reached a historical high due to successful launch of F0 through e-commerce platform. Our product mix also improved compared with previous quarter. The sales volume from low-priced models G0 and F0 represented 30.4% of total sales volume, compared with the 38.2% in the first quarter. As a result, revenues per e-scooter improved by 8.3% over previous quarter.”

    Dr. Li continued, “In July, we started to deliver another new model C0 which was specifically designed for female customers. The retail sales price for C0 model starts from RMB 3,399, higher than the prices for G0 and F0. We also began the pre-sale of our newly launched kick-scooter, the KQi3 model, in Europe and US markets. The delivery of KQi3 is expected to start in the fourth quarter. We are very excited about the growth prospects of our business and look forward to the continued growth.”

    Second Quarter 2021 Financial Results

    Revenues were RMB 944.7 million, an increase of 46.5% year over year, due to higher sales volume of 58.0%, partially offset by decreased revenues per e-scooter of 7.3%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

    Revenues
    (in RMB million)    		 2021
    Q2    		 2020
    Q2    		 % change
    YoY
    E-scooter sales from China market 757.5 522.7 +44.9% 
    E-scooter sales from international markets 57.7 56.9 +1.2% 
    E-scooter sales, sub-total 815.2 579.6 +40.6% 
    Accessories, spare parts and services 129.5 65.3 +98.3% 
    Total 944.7 644.9 +46.5% 


    Revenues per e-scooter
    (in RMB)    		 2021
    Q2    		 2020
    Q2    		 % change
    YoY
    E-scooter sales from China market2 3,079 3,373 -8.7% 
    E-scooter sales from international markets2 8,259 10,995 -24.9% 
    E-scooter sales 3,222 3,619 -11.0% 
    Accessories, spare parts and services3 512 408 +25.5% 
    Revenues per e-scooter 3,734 4,027 -7.3% 
    • E-scooter sales revenues from China market were RMB 757.5 million, an increase of 44.9%, and represented 92.9% 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 57.7 million, an increase of 1.2%, and represented 7.1% of total e-scooter revenues. The increase was mainly driven by higher sales volume.
    • Accessories, spare parts sales and services revenues were RMB 129.5 million, an increase of 98.3% and represented 13.7% of total revenues. The increase was mainly driven by higher e-scooter sales volume in China and higher spare parts sales from international markets.
    • The decrease of revenues per e-scooter was mainly due to change in product mix.

    Cost of revenues was RMB 730.0 million, an increase of 46.9% year over year, mainly due to higher 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 2,885, down 7.0% from RMB 3,103 in the second quarter 2020 mainly due to change in product mix.

    Gross margin was 22.7%, compared with 23.0% in the same period of 2020. The decrease was mainly due to higher raw material costs.

    Operating expenses were RMB 136.9 million, an increase of 47.9% from the same period of 2020. Operating expenses as a percentage of revenues was 14.5%, compared with 14.4% in the second quarter of 2020.

    • Selling and marketing expenses were RMB 68.9 million (including RMB 3.0 million of share-based compensation), an increase of 51.0% from RMB 45.6 million in the second quarter of 2020. The increase was mainly due to the increase in advertising and promotion expense of RMB 10.6 million, the increase in depreciation and amortization expense of RMB 7.3 million as a result of opening of new franchised stores, and the increase in staff cost of RMB 6.5 million. Selling and marketing expenses as a percentage of revenues was 7.3% compared with 7.1% in the second quarter of 2020.
    • Research and development expenses were RMB 30.8 million (including RMB 4.3 million of share-based compensation), an increase of 28.7% from RMB 24.0 million in the second 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. Research and development expenses as a percentage of revenues was 3.3%, compared with 3.7% in the second quarter of 2020.
    • General and administrative expenses were RMB 37.2 million (including RMB 4.7 million of share-based compensation), an increase of 61.6% from RMB 23.0 million in the second quarter of 2020, mainly due to the increase in staff cost of RMB 3.7 million, the increase in professional fee of RMB 2.8 million, the increase in foreign currency exchange loss of RMB 2.5 million, the increase in depreciation and amortization expense of RMB 2.0 million, and the increase in rental and other office expenses of RMB 2.1 million. General and administrative expenses as a percentage of revenues was 3.9%, compared with 3.6% in the second quarter of 2020.

    Operating expenses excluding share-based compensation were RMB 125.0 million, increased by 52.6% year over year, and represented 13.2% of revenues, compared with 12.7% in the second quarter of 2020.

    • Selling and marketing expenses excluding share-based compensation were RMB 65.9 million, an increase of 54.3% year over year, and represented 7.0% of revenues, compared with 6.6% in the second quarter of 2020.
    • Research and development expenses excluding share-based compensation were RMB 26.6 million, an increase of 27.3% year over year, and represented 2.8% of revenues, compared with 3.2% in the second quarter of 2020.
    • General and administrative expenses excluding share-based compensation were RMB 32.5 million, an increase of 77.7% year over year, and represented 3.4% of revenues, compared with 2.8% in the second quarter of 2020.

    Government grants were RMB 21.5 million, increased by RMB 20.7 million from the same period of 2020.

    Share-based compensation was RMB 12.1 million, an increase of RMB 1.2 million from the same period of 2020.

    Income tax expense was RMB 11.5 million, an increase of RMB 8.9 million from the same period of 2020.

    Net income was RMB 91.8 million, compared with RMB 56.8 million in the second quarter of 2020. The net income margin was 9.7%, compared with 8.8% in the same period of 2020.

    Adjusted net income (non-GAAP) was RMB 104.0 million, compared with RMB 67.8 million in the second quarter of 2020. The adjusted net income margin4 was 11.0%, compared with 10.5% in the same period of 2020.

    Basic and diluted net income per ADS were RMB 1.20 (US$ 0.19) and RMB 1.14 (US$ 0.18), respectively.

    Balance Sheet
    As of June 30, 2021, the Company had cash, term deposits and short-term investments of RMB 1,222.0 million in aggregate. The Company had restricted cash of RMB 178.1 million and short-term bank borrowings of RMB 180.0 million.

    Business Outlook
    NIU expects revenues of the third quarter 2021 to be in the range of RMB 1,250 million to RMB 1,450 million, representing a year-over-year increase of 40% to 62%.

    The above 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 in light of uncertainties and situations related to how COVID-19 develops.

    Conference Call

    The Company will host an earnings conference call on Monday, August 16, 2021 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time) to discuss its second quarter 2021 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, an event passcode, and a unique registrant ID, which will be used to join the conference call.

    Event:Niu Technologies Second Quarter 2021 Earnings Conference Call
    Registration Link:http://apac.directeventreg.com/registration/event/2198233
    Conference ID:2198233

    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.

    A replay of the conference call can be accessed by phone two hours later at the following numbers until August 24, 2021.

    United States+1-855-452-5696
    International+61-281-990-299
    Hong Kong800-963-117
    Mainland China400-602-2065
    Conference ID2198233

    About NIU

    As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric motorcycles, scooters, bicycles and kick-scooters. NIU has a product portfolio consisting of eight series, four electric scooter series, including NQi, MQi, UQi and Gova, two urban commuter electric motorcycle series RQi and TQi, a performance electric bicycle series, NIU Aero, and an electric kick-scooter series, KQi. Different series of products address the needs of different segments of modern urban residents and resolve the demands of different scenarios of urban travel, while being united through a common design language that emphasizes style, freedom and technology. 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 6.4566 to US$ 1.00, the exchange rate in effect as of June 30, 2021, 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 third 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
    Jason Yang
    Investor Relations Manager
    E-mail: ir@niu.com

    NIU TECHNOLOGIES
     
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    　　　　　　
    　As of
    　December 31,　June 30,　June 30,
    　2020 　2021 　2021 
    　 RMB 　 RMB 　US$
    ASSETS　　　　　
    Current assets　　　　　
    Cash227,004,137 　291,733,197 　45,183,719 
    Term deposits-current130,498,000 　129,202,000 　20,010,842 
    Restricted cash168,469,077 　178,053,372 　27,576,956 
    Short-term investments745,608,877 　781,072,664 　120,972,751 
    Notes receivable- 　10,525,549 　1,630,200 
    Accounts receivable, net101,320,063 　63,413,253 　9,821,462 
    Inventories142,166,179 　211,614,066 　32,774,845 
    Prepayments and other current assets32,832,088 　57,000,475 　8,828,249 
    Total current assets 1,547,898,421  　 1,722,614,576  　 266,799,024  
    　　　　　　
    Non-current assets　　　　　
    Term deposits-non-current- 　20,000,000 　3,097,606 
    Property, plant and equipment, net199,045,061 　306,813,876 　47,519,418 
    Intangible assets, net5,607,101 　4,632,587 　717,496 
    Operating lease right-of-use assets, net- 　99,294,003 　15,378,683 
    Land use rights, net48,835,120 　- 　- 
    Deferred income tax assets14,593,376 　15,919,188 　2,465,568 
    Other non-current assets30,830,304 　1,720,864 　266,528 
    Total non-current assets 298,910,962  　 448,380,518  　 69,445,299  
    　　　　　　
    Total assets 1,846,809,383  　 2,170,995,094  　 336,244,323  
    　　　　　　
    LIABILITIES　　　　　
    Current liabilities　　　　　
    Short-term bank borrowings180,000,000 　180,000,000 　27,878,450 
    Accounts payable395,826,435 　532,601,037 　82,489,396 
    Income taxes payable14,555,094 　4,657,787 　721,399 
    Advances from customers40,062,189 　43,360,632 　6,715,707 
    Deferred revenue-current21,155,634 　22,182,057 　3,435,563 
    Accrued expenses and other current liabilities171,657,604 　236,580,054 　36,641,584 
    Total current liabilities 823,256,956  　 1,019,381,567  　 157,882,099  
    　　　　　　
    Deferred revenue-non-current4,176,458 　5,414,115 　838,540 
    Deferred income tax liabilities1,109,479 　1,534,251 　237,625 
    Operating lease liabilities-non-current- 　18,324,661 　2,838,129 
    Other non-current liabilities24,892,246 　25,186,278 　3,900,859 
    Total non-current liabilities 30,178,183  　 50,459,305  　 7,815,153  
    　　　　　　
    Total liabilities 853,435,139  　 1,069,840,872  　 165,697,252  
    　　　　　　
    SHAREHOLDERS’ EQUITY:　　　　　
    Class A ordinary shares87,300 　88,676 　13,734 
    Class B ordinary shares11,202 　10,316 　1,598 
    Additional paid-in capital1,801,940,071 　1,826,465,465 　282,883,478 
    Accumulated other comprehensive loss(43,016,027)　(46,223,216)　(7,159,065)
    Accumulated deficit(765,648,302)　(679,187,019)　(105,192,674)
    Total shareholders’ equity 993,374,244  　 1,101,154,222  　 170,547,071  
    　　　　　　
    Total liabilities and shareholders’ equity 1,846,809,383  　 2,170,995,094  　 336,244,323  
          


    NIU TECHNOLOGIES
     
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
    　　　　　　　　　　
    　Three Months Ended June 30,　Six Months Ended June 30,
    　2020 　2021　2020 　2021
    　RMB　RMBUS$　RMB　RMBUS$
    Revenues644,934,410 　944,745,010 146,322,369 　877,874,918 　1,492,081,575 231,094,008 
    Cost of revenues(a)(496,852,342)　(730,010,232)(113,064,187)　(674,875,349)　(1,147,012,501)(177,649,615)
    Gross profit 148,082,068  　 214,734,778   33,258,182  　 202,999,569  　 345,069,074   53,444,393  
    　　　　　　　　　　
    Operating expenses:　　　　　　　　　
    Selling and marketing expenses(a)(45,603,755)　(68,873,391)(10,667,130)　(89,776,365)　(142,391,875)(22,053,693)
    Research and development expenses(a)(23,976,687)　(30,847,683)(4,777,698)　(46,712,272)　(56,456,917)(8,744,063)
    General and administrative expenses(a)(23,010,638)　(37,185,424)(5,759,289)　(47,259,880)　(68,499,223)(10,609,179)
    Total operating expenses (92,591,080)　 (136,906,498) (21,204,117)　 (183,748,517)　 (267,348,015) (41,406,935)
    Government grants826,367 　21,504,500 3,330,623 　8,092,250 　21,856,842 3,385,194 
    Operating income 56,317,355  　 99,332,780   15,384,688  　 27,343,302  　 99,577,901   15,422,652  
    　　　　　　　　　　
    Interest expense(1,576,485)　(1,641,648)(254,259)　(3,748,959)　(3,374,348)(522,620)
    Interest income2,378,442 　1,630,287 252,499 　5,367,879 　2,846,865 440,923 
    Investment income2,303,195 　4,042,059 626,035 　3,896,250 　8,170,999 1,265,527 
    Income before income taxes 59,422,507  　 103,363,478   16,008,963  　 32,858,472  　 107,221,417   16,606,482  
    Income tax expense(2,595,658)　(11,528,628)(1,785,557)　(2,407,549)　(20,760,134)(3,215,335)
    Net income 56,826,849  　 91,834,850   14,223,406  　 30,450,923  　 86,461,283   13,391,147  
    　　　　　　　　　　
    Other comprehensive income (loss)　　　　　　　　　
    Foreign currency translation adjustment59,950 　(7,208,765)(1,116,496)　6,546,907 　(4,305,029)(666,764)
    Unrealized gain on available for sale securities, net641,975 　897,660 139,030 　1,165,671 　1,097,840 170,034 
    Comprehensive income 57,528,774  　 85,523,745   13,245,940  　 38,163,501  　 83,254,094   12,894,417  
    Net income per ordinary share　　　　　　　　　
    —Basic0.38 　0.60 0.09 　0.20 　0.56 0.09 
    —Diluted0.37 　0.57 0.09 　0.20 　0.54 0.08 
    Net income per ADS　　　　　　　　　
    —Basic0.76 　1.20 0.19 　0.41 　1.13 0.17 
    —Diluted0.73 　1.14 0.18 　0.40 　1.08 0.17 
    　　　　　　　　　　
    Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income per ordinary share
    		　　　
    —Basic150,301,999 　153,528,657 153,528,657 　150,001,842 　153,177,159 153,177,159 
    —Diluted155,175,644 　160,860,781 160,860,781 　154,098,590 　160,751,121 160,751,121 
    Weighted average number of ADS outstanding used in computing net income per ADS　　　　　　　　　
    —Basic75,151,000 　76,764,329 76,764,329 　75,000,921 　76,588,580 76,588,580 
    —Diluted77,587,822 　80,430,391 80,430,391 　77,049,295 　80,375,561 80,375,561 
    　　　　　　　　　　
    Note:　　　　　　　　　
    (a) Includes share-based compensation expense as follows:　　　　　　　　　
    　Three Months Ended June 30,　Six Months Ended June 30,
    　2020 　2021　2020　2021
    　RMB　RMBUS$　RMB　RMBUS$
    Cost of revenues210,882 　183,165 28,369 　287,504 　366,502 56,764 
    Selling and marketing expenses2,888,358 　2,977,457 461,149 　4,491,000 　6,009,319 930,725 
    Research and development expenses3,109,286 　4,283,976 663,503 　5,081,977 　8,285,463 1,283,255 
    General and administrative expenses4,717,555 　4,685,866 725,748 　8,801,777 　9,523,418 1,474,990 
    Total share-based compensation expense 10,926,081  　 12,130,464   1,878,769  　 18,662,258  　 24,184,702   3,745,734  
              


    NIU TECHNOLOGIES
     
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    　　　　　　　　　　
    　Three Months Ended June 30,　Six Months Ended June 30,
    　2020　2021　2020　2021
    　RMB　 RMB US$　RMB　 RMB US$
    Net Income56,826,849　91,834,85014,223,406　30,450,923　86,461,28313,391,147
    Add:　　　　　　　　　
    Share-based compensation expense10,926,081　12,130,4641,878,769　18,662,258　24,184,7023,745,734
    Adjusted net income 67,752,930 　 103,965,314 16,102,175 　 49,113,181 　 110,645,985 17,136,881
              

    ____________________

    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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