The following is a summary of the Niu Technologies (NIU) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Niu Technologies reported Q3 2024 total revenue of RMB 1.02 billion, a 10.5% increase year-over-year.

• The total sales volume was 312,000 units, marking a 17.5% increase from the previous year.

• Gross margin for the quarter was 13.8%, down by 7.6 percentage points year-over-year mainly due to US tariffs and promotional sales.

• Net loss for Q3 stood at RMB 41 million, showing an improvement from a net loss of RMB 79 million in the same period last year.

Business Progress:

• Significant progress in expanding into overseas markets, especially in micro-mobility, with strategic entries into major North American and European retail chains.

• Launched multiple new models targeting diverse markets, including high-performance motorcycles and urban commuter electric scooters.

• Focused on improving channel profitability and expanded sales networks, adding 240 new stores in Q3.

• Initiated production shift to Southeast Asia to mitigate US tariffs, with expected completion in early 2025.

Opportunities:

• Expansion into new international markets, gaining entry with major retailers like BestBuy and Walmart in North America and similar large retailers in Europe for kick scooter products.

• Diversification and innovation in product offerings, such as launching new scooter models tailored for different demographic groups, aiming to drive increased sales.

Risks:

• Implementation of new battery electric system safety standards in China impacted sales and product mix, leading to a temporary reduced average selling price and gross margin.

• US tariffs imposed on kick scooters contributed to negative gross margins for products shipped to the US, affecting profitability in the international segment.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.