• Niu Technologies Announces Third Quarter 2021 Financial Results

    المصدر: Nasdaq GlobeNewswire / 22 نوفمبر 2021 02:01:20   America/New_York

    -- Third Quarter Total Volume of e-scooter sales up 58.3% year over year

    -- Third Quarter Revenues of RMB 1,226.4 million, up 37.1% year over year

    -- Third Quarter Net Income of RMB 91.7 million, compared with RMB 80.0 million in the same period of last year

    BEIJING, Nov. 22, 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 third quarter 2021.

    Third Quarter 2021 Financial Highlights

    • Revenues were RMB 1,226.4 million, an increase of 37.1% year over year
    • Gross margin was 20.0%, compared with 20.9% in the third quarter of last year
    • Net income was RMB 91.7 million, an increase of 14.6% compared with RMB 80.0 million in the third quarter of last year
    • Adjusted net income (non-GAAP)1 was RMB 102.2 million, an increase of 12.9% compared with RMB 90.6 million in the third quarter of last year

    Third Quarter 2021 Operating Highlights

    • The number of e-scooters sold reached 397,079, up 58.3% year over year
    • The number of e-scooters sold in China reached 392,112, up 59.9% year over year
    • The number of e-scooters sold in the international markets was 4,967, down 11.2% year over year
    • The number of franchised stores in China was 2,686 as of September 30, 2021, an increase of 320 from June 30, 2021
    • International sales network expanded to 41 distributors covering 49 countries

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

    Dr. Li continued, “The decrease of sales volume in the international markets was mainly caused by the impact of COVID-19 during the third quarter and the ongoing difficulties in international shipping, which we expect to improve in Q4. In Q3, we successfully launched our kick-scooter KQi3 in the international markets and received orders for more than 15,000 units during the third quarter. In September, we started to deliver kick-scooters to the international markets and there will be more deliveries in the fourth quarter. Furthermore, we will be debuting five exciting new products at EICMA 2021, in Milan just for the global markets, including our most powerful 125cc electric moped, the MQiGT-EVO, our first 150cc hybrid moped, the YQi, our upgraded e-bike BQi and two additional KQi series kick scooters, demonstrating our continued commitment in global sustainable micro-mobility markets. With these new products, we are very excited about the growth prospects of our business for the global markets and look forward to continued growth.”

    Third Quarter 2021 Financial Results

    Revenues were RMB 1,226.4 million, an increase of 37.1% year over year, due to 58.3% higher sales volume, partially offset by decreased revenues per e-scooter of 13.4%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

    Revenues
    (in RMB million)
     2021
    Q3
     2020
    Q3
     % change
    YoY
    E-scooter sales from China market 1,077.3 740.8 +45.4%
    E-scooter sales from international markets 43.2 59.6 -27.5%
    E-scooter sales, sub-total 1,120.5 800.4 +40.0%
    Accessories, spare parts and services 105.9 94.1 +12.6%
    Total 1,226.4 894.5 +37.1%


    Revenues per e-scooter
    (in RMB)
     2021
    Q3
     2020
    Q3
     % change
    YoY
    E-scooter sales from China market2 2,748 3,020 -9.0%
    E-scooter sales from international markets2 8,693 10,647 -18.4%
    E-scooter sales 2,822 3,190 -11.5%
    Accessories, spare parts and services3 267 375 -28.8%
    Revenues per e-scooter 3,089 3,565 -13.4%
    • E-scooter sales revenues from China market were RMB 1,077.3 million, an increase of 45.4%, and represented 96.1% of total e-scooter revenues. The increase was mainly driven by retail network expansion and new product launches in China.
    • E-scooter sales revenues from international markets were RMB 43.2 million, a decrease of 27.5%, and represented 3.9% of total e-scooter revenues. The decrease was mainly due to the impact of COVID-19 and the ongoing difficulties in international shipping.
    • Accessories, spare parts sales and services revenues were RMB 105.9 million, an increase of 12.6% and represented 8.6% of total revenues. The increase was mainly driven by higher e-scooter sales volume in China.
    • The decrease of revenues per e-scooter was mainly due to change in product mix.

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

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

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

    • Selling and marketing expenses were RMB 89.8 million (including RMB 3.3 million of share-based compensation), an increase of 76.7% from RMB 50.8 million in the third quarter of 2020. The increase was mainly due to the increase in advertising and promotion expense of RMB 24.6 million, the increase in depreciation and amortization expense of RMB 10.5 million as a result of opening of new franchised stores, and the increase in staff cost of RMB 6.8 million. Selling and marketing expenses as a percentage of revenues was 7.3% compared with 5.7% in the third quarter of 2020.
    • Research and development expenses were RMB 33.7 million (including RMB 4.2 million of share-based compensation), an increase of 16.7% from RMB 28.9 million in the third quarter of 2020, mainly due to the increase in staff cost of RMB 4.8 million and the increase in share-based compensation expenses of RMB 1.2 million, partially offset by the decrease in design expense and material expenditure of RMB 1.6 million. Research and development expenses as a percentage of revenues was 2.8%, compared with 3.2% in the third quarter of 2020.
    • General and administrative expenses were RMB 29.6 million (including RMB 2.8 million of share-based compensation), an increase of 7.6% from RMB 27.5 million in the third quarter of 2020, mainly due to the increase in professional fee of RMB 2.4 million and the increase in staff cost of RMB 1.5 million, partially offset by the decrease in share-based compensation expenses of RMB 1.8 million. General and administrative expenses as a percentage of revenues was 2.4%, compared with 3.1% in the third quarter of 2020.

    Operating expenses excluding share-based compensation were RMB 142.9 million, increased by 47.5% year over year, and represented 11.7% of revenues, compared with 10.8% in the third quarter of 2020.

    • Selling and marketing expenses excluding share-based compensation were RMB 86.5 million, an increase of 80.1% year over year, and represented 7.1% of revenues, compared with 5.4% in the third quarter of 2020.
    • Research and development expenses excluding share-based compensation were RMB 29.5 million, an increase of 14.0% year over year, and represented 2.4% of revenues, compared with 2.9% in the third quarter of 2020.
    • General and administrative expenses excluding share-based compensation were RMB 26.8 million, an increase of 17.1% year over year, and represented 2.2% of revenues, compared with 2.6% in the third quarter of 2020.

    Government grants were RMB 10.6 million, increased by RMB 9.5 million from the same period of 2020.

    Share-based compensation was RMB 10.5 million, compared with RMB 10.6 million in the same period of 2020.

    Income tax expense was RMB 17.0 million, an increase of RMB 11.9 million from the same period of 2020.

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

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

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

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

    Business Outlook
    NIU expects revenues of the fourth quarter 2021 to be in the range of RMB 840 million to RMB 910 million, representing a year-over-year increase of 25% to 35%.

    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, November 22, 2021 at 8:00 AM U.S. Eastern Time (9:00 PM Beijing/Hong Kong Time) to discuss its third 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 Third Quarter 2021 Earnings Conference Call
    Registration Link:http://apac.directeventreg.com/registration/event/1922118
    Conference ID:1922118

    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 November 30, 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, mopeds, bicycles and kick-scooters. NIU has a product portfolio consisting of eight series, four e-scooter series, including NQi, MQi and UQi with smart functions and Gova, two urban commuter electric motorcycles series RQi and TQi, a performance bicycle series, NIU Aero, and a 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 6.4434 to US$ 1.00, the exchange rate in effect as of September 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, September 30, September 30,
     2020  2021  2021 
      RMB   RMB  US$
    ASSETS     
    Current assets     
    Cash227,004,137  293,949,109  45,620,186 
    Term deposits-current130,498,000  175,105,800  27,175,994 
    Restricted cash168,469,077  147,512,195  22,893,534 
    Short-term investments745,608,877  1,063,580,320  165,065,077 
    Accounts receivable, net101,320,063  63,806,419  9,902,601 
    Inventories142,166,179  304,363,682  47,236,503 
    Prepayments and other current assets32,832,088  52,482,982  8,145,231 
    Total current assets 1,547,898,421    2,100,800,507    326,039,126  
          
    Non-current assets     
    Term deposits-non-current-  20,000,000  3,103,951 
    Property, plant and equipment, net199,045,061  366,446,253  56,871,567 
    Intangible assets, net5,607,101  4,173,937  647,785 
    Operating lease right-of-use assets, net-  97,087,733  15,067,780 
    Land use rights, net48,835,120  -  - 
    Deferred income tax assets14,593,376  12,615,297  1,957,863 
    Other non-current assets30,830,304  2,282,018  354,164 
    Total non-current assets 298,910,962    502,605,238    78,003,110  
          
    Total assets 1,846,809,383    2,603,405,745    404,042,236  
          
    LIABILITIES     
    Current liabilities     
    Short-term bank borrowings180,000,000  140,000,000  21,727,659 
    Notes payable-  101,410,228  15,738,621 
    Accounts payable395,826,435  794,735,291  123,340,983 
    Income taxes payable14,555,094  11,158,916  1,731,837 
    Advances from customers40,062,189  48,822,633  7,577,154 
    Deferred revenue-current21,155,634  30,298,439  4,702,244 
    Accrued expenses and other current liabilities171,657,604  215,884,609  33,504,766 
    Total current liabilities 823,256,956    1,342,310,116    208,323,264  
          
    Deferred revenue-non-current4,176,458  9,708,660  1,506,760 
    Deferred income tax liabilities1,109,479  1,934,518  300,232 
    Operating lease liabilities-non-current-  17,154,448  2,662,329 
    Other non-current liabilities24,892,246  21,670,969  3,363,281 
    Total non-current liabilities 30,178,183    50,468,595    7,832,602  
          
    Total liabilities 853,435,139    1,392,778,711    216,155,866  
          
    SHAREHOLDERS’ EQUITY:     
    Class A ordinary shares87,300  89,019  13,816 
    Class B ordinary shares11,202  10,316  1,601 
    Additional paid-in capital1,801,940,071  1,842,866,291  286,008,364 
    Accumulated other comprehensive loss(43,016,027) (44,863,957) (6,962,777)
    Accumulated deficit(765,648,302) (587,474,635) (91,174,634)
    Total shareholders’ equity 993,374,244    1,210,627,034    187,886,370  
          
    Total liabilities and shareholders’ equity 1,846,809,383    2,603,405,745    404,042,236  
          


    NIU TECHNOLOGIES
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
              
     Three Months Ended September 30, Nine Months Ended September 30,
     2020  2021 2020  2021
     RMB RMBUS$ RMB RMBUS$
    Revenues894,464,268  1,226,396,601 190,333,768  1,772,339,186  2,718,478,176 421,901,198 
    Cost of revenues(a)(707,360,744) (981,194,347)(152,278,975) (1,382,236,093) (2,128,206,848)(330,292,524)
    Gross profit 187,103,524    245,202,254   38,054,793    390,103,093    590,271,328   91,608,674  
              
    Operating expenses:         
    Selling and marketing expenses(a)(50,837,916) (89,848,749)(13,944,307) (140,614,281) (232,240,624)(36,043,180)
    Research and development expenses(a)(28,899,391) (33,738,673)(5,236,160) (75,611,663) (90,195,590)(13,998,136)
    General and administrative expenses(a)(27,520,025) (29,618,276)(4,596,684) (74,779,905) (98,117,499)(15,227,597)
    Total operating expenses (107,257,332)  (153,205,698) (23,777,151)  (291,005,849)  (420,553,713) (65,268,913)
    Government grants1,110,121  10,600,000 1,645,094  9,202,371  32,456,842 5,037,223 
    Operating income 80,956,313    102,596,556   15,922,736    108,299,615    202,174,457   31,376,984  
              
    Interest expense(1,860,930) (1,527,066)(236,997) (5,609,889) (4,901,414)(760,688)
    Interest income1,705,239  990,553 153,731  7,073,118  3,837,418 595,558 
    Investment income4,312,634  6,669,406 1,035,076  8,208,884  14,840,405 2,303,195 
    Income before income taxes 85,113,256    108,729,449   16,874,546    117,971,728    215,950,866   33,515,049  
    Income tax expense(5,106,812) (17,017,065)(2,641,007) (7,514,361) (37,777,199)(5,862,929)
    Net income 80,006,444    91,712,384   14,233,539    110,457,367    178,173,667   27,652,120  
              
    Other comprehensive income (loss)         
    Foreign currency translation adjustment(21,210,855) 1,728,517 268,262  (14,663,948) (2,576,512)(399,868)
    Unrealized gain (loss) on available for sale securities, net1,033,589  (369,258)(57,308) 2,199,260  728,582 113,074 
    Comprehensive income 59,829,178    93,071,643   14,444,493    97,992,679    176,325,737   27,365,326  
    Net income per ordinary share         
    —Basic0.53  0.60 0.09  0.73  1.16 0.18 
    —Diluted0.50  0.57 0.09  0.71  1.11 0.17 
    Net income per ADS         
    —Basic1.06  1.19 0.18  1.47  2.32 0.36 
    —Diluted1.01  1.15 0.18  1.41  2.22 0.34 
              
    Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income per ordinary share
    —Basic151,421,638  153,933,264 153,933,264  150,478,559  153,431,962 153,431,962 
    —Diluted158,776,078  159,943,770 159,943,770  156,297,293  160,327,408 160,327,408 
    Weighted average number of ADS outstanding used in computing net income per ADS
       
    —Basic75,710,819  76,966,632 76,966,632  75,239,280  76,715,981 76,715,981 
    —Diluted79,388,039  79,971,885 79,971,885  78,148,647  80,163,704 80,163,704 
              
    Note:         
    (a) Includes share-based compensation expense as follows:         
     Three Months Ended September 30, Nine Months Ended September 30,
     2020 2021 2020 2021
     RMB RMBUS$ RMB RMBUS$
    Cost of revenues192,396  223,427 34,675  479,900  589,929 91,556 
    Selling and marketing expenses2,782,878  3,310,173 513,731  7,273,878  9,319,492 1,446,362 
    Research and development expenses2,986,491  4,190,424 650,344  8,068,468  12,475,887 1,936,227 
    General and administrative expenses4,595,381  2,771,071 430,063  13,397,158  12,294,489 1,908,075 
    Total share-based compensation expense 10,557,146    10,495,095   1,628,813    29,219,404    34,679,797   5,382,220  
              


    NIU TECHNOLOGIES
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
              
     Three Months Ended September 30, Nine Months Ended September 30,
     2020 2021 2020 2021
     RMB  RMB US$ RMB  RMB US$
    Net Income 80,006,444   91,712,384 14,233,539   110,457,367   178,173,667 27,652,120
    Add:         
    Share-based compensation expense10,557,146 10,495,0951,628,813 29,219,404 34,679,7975,382,220
    Adjusted net income 90,563,590   102,207,479 15,862,352   139,676,771   212,853,464 33,034,340
              

    _________________________

    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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