Recently, Niu released its Q2 financial results, which show that Niu earned a net profit of more than 54 million yuan in Q2. It marked the second quarter of getting a profit.

From three years of losses to two consecutive quarters of getting profits

Before going public last year, the company reported losses of 233 million yuan in 2016, 185 million yuan in 2017 and 315 million yuan in the first half of 2018 respectively, and fell below its IPO price on its stock market debut.

According to Q3 financial report of 2018, Niu made a net profit of 4.9 million yuan excluding the equity incentive, which was the first quarterly profit of Niu since its establishment.

By 2019, Niu’s earnings have become the norm. Niu has achieved significant increase in key performance indicators including sales volume, sales revenue, net profit, profit margin, and overseas market income.

Significant increase in both sales volume of complete vehicle and income of one vehicle

In the second quarter, Niu sold 99,365 smart electric vehicles, with year-on-year growth of 14%. Under Non-GAPP, Niu’s net profit exceeded 54 million yuan, and Q2 profit margin reached 10.2%, 19 percentage points higher than that of the same period last year. The gross profit margin was 23.7%, increasing year-on-year by 8.6 percentage points.

In Q2, the non-electric vehicle revenue further grew, accounting for 15% of total income.

In Q2, Niu’s sales network has covered 34 countries, with the overseas market income accounting for 27% of the total. The number of offline stores in China has expanded to 1,005 in 182 cities.

The income of one vehicle increased 21.3% year-on-year.

Strong growth in overseas markets, doubling the revenue

For the domestic market, the sales of electric vehicles in Q2 were heavily affected by the new national EV standard, and consumers’ purchase intention weakened. After the implementation of the new national standard, the slight increase of vehicle costs aggravated users’ wait-and-see mood. In terms of overseas markets, due to the increasing international trade friction, the export of EV enterprises has been affected, which also exacerbates the depression of electric vehicle industry.

“Despite the multiple pressures from the domestic economic slowdown, trade war and the new national standard, Niu still has achieved steady growth, and the growth in overseas market sales was very strong. The oversea markets achieved a doubled sales value in Q2”, said Li Yan, CEO of Niu.

Niu has entered 34 countries.

Niu, focusing on high-end smart lithium battery electric vehicles, is capable of withstanding the impact from external environment. Niu have obvious advantages in terms of products and technologies. The new product has also improved its application scenarios. With increasingly great influence of its Lifestyle brand concept and gradually mature cultural construction, Niu is embracing more extensive market demands, which will support its future development space.

In Q3 it is expected an increase of more than 20%

Q2’s financial results benefited from Niu’s comprehensive advantages in product design, technology precipitation, brand culture and other aspects, as well as the continuous expansion of innovative products to market segments in the future. This steady growing momentum will continue. Q3 revenue is expected to rise more than 20%.

Niu got an industrial land of 50,000 square meters in Changzhou at 22.6434 million yuan in May

To keep up with the increasing sales, Niu got a 50,000 square meter industrial land in Changzhou in May at 22.6434 million yuan to build a new production base.

Niu’ operation idea is clear: to continue to deepen the existing Lifestyle brand concept influence and cultural output, vigorously expand new channels through product and technology advantages, and accelerate the international strategy, which will help Niu to further improve its financial results and achieve greater incremental space. (Source: WeChat: aimaebike)