Niu Technologies Announces First Quarter 2019 Financial Results
-- First Quarter Total volume of e-scooter sales up 75.7% year over year
-- First Quarter Revenues of
-- First Quarter net income of
First Quarter 2019 Financial Highlights
- Revenues were
RMB 355.2 million, an increase of 105.5% year over year
- Gross margin was 21.3%, compared with 12.7% in the first quarter of 2018
- Net income was
RMB 12.0 million, compared with net loss of RMB 61.9 millionin the first quarter of 2018
- Adjusted net income (non-GAAP)1 was
RMB 14.6 million, compared with adjusted net loss of RMB 12.5 millionin the first quarter of 2018
First Quarter 2019 Operating Highlights
- The number of e-scooters sold reached 66,284, up 75.7% year over year
- Franchised stores in
Chinareached 881, an increase of 121 or 16% since December 31, 2018
- Overseas sales network expanded to 23 distributors covering 28 countries
- NIU entered into a definitive Development Collaboration Agreement with
Volkswagen Groupin Germanyregarding the joint development of Micro-mobility solutions
Dr. Li continued, “We are committed to providing high-quality products to our customers. In April, we launched two all-new e-scooter models, the U+ and US, together with our new lifestyle brand category, Niu Aero bicycles. Meanwhile, we are expanding our global presence. In March, we attended the Seoul Motor Show and saw the potential for robust demand in
First Quarter 2019 Financial Results
- E-scooter sales represented 87.5% of revenues, while accessories, spare parts sales and service revenues represented 12.5% of revenues.
- Higher e-scooter sales volume was mainly driven by the expanded sales network and higher demand on certain products ahead of the implementation of the new national standards. After the new national standards for electric bicycles became effective on
April 15, 2019, certain existing models could no longer be sold in the category of electric bicycles. We accommodated some demand for these models during the first quarter.
- Increased revenues per e-scooter was mainly driven by higher sales price of NGT model, a larger proportion of high-end model sales in the N and M series, and higher sales volume in accessories and spare parts.
Chinarepresented 81.2% of total e-scooter revenue, while overseas markets represented 18.8% of total e-scooter revenue, compared with 18.5% in the first quarter of 2018.
Cost of revenues were
Gross margin was 21.3%, up substantially from 12.7% in the same period of 2018, mainly due to lower raw material costs, higher retail prices, favorable changes in product mix and a greater proportion of revenue from accessories and spare parts.
Operating expenses were
- Selling and marketing expenses were
RMB 29.8 million(including RMB 0.7 millionof share-based compensation), an increase of 54.8% from RMB 19.3 millionin the first quarter of 2018. The increase was mainly due to the increases in staff cost of RMB 4.0 million, depreciation and amortization expense of RMB 1.7 million, and advertising and promotion expense of RMB 1.4 million, which resulted from the growth in e-scooter sales volume, the opening of new franchised stores and an increased number of sales staffs. Selling and marketing expenses as a percentage of revenues was 8.4% compared with 11.1% in the first quarter of 2018.
- Research and development expenses were
RMB 14.3 million(including RMB 0.4 millionof share-based compensation), an increase of 41.7% from RMB 10.1 millionin the first quarter of 2018, mainly driven by the increases in staff cost of RMB 3.3 millionand design expense of RMB 3.6 million, which was partially offset by the decrease of share-based compensation expenses of RMB 2.8 million. The share-based compensation was lower due to the full vesting of certain founders’ restricted ordinary shares in 2018. Research and development expenses as a percentage of revenues was 4.0%, compared with 5.9% in the first quarter of 2018.
- General and administrative expenses were
RMB 20.7 million(including RMB 1.5 millionof share-based compensation), an increase of 10.9% from RMB 18.6 millionin the first quarter of 2018, mainly due to increase in staff cost of RMB 5.4 million, professional fees of RMB 3.9 million, travelling and other expenses of RMB 2.4 million, as a result of increased number of staffs and engagement of professional firms to meet the regulatory requirements as a public company. The higher expenses were partially offset by decreases of share-based compensation expense of RMB 9.6 milliondue to the full vesting of certain founders’ restricted ordinary shares. General and administrative expenses as a percentage of revenues was 5.8%, compared with 10.8% in the first quarter of 2018.
Operating expenses excluding share-based compensation was
- Selling and marketing expenses excluding share-based compensation were
RMB 29.1 million, an increase of 55.1% year over year, and represented 8.2% of revenues, compared with 10.9% in the first quarter of 2018
- Research and development expenses excluding share-based compensation were
RMB 13.9 million, an increase of 103.2% year over year, and represented 3.9% of revenues, compared with 4.0% in the first quarter of 2018
- General and administrative expenses excluding share-based compensation were
RMB 19.2 million, an increase of 153.2% year over year, and represented 5.4% of revenues, compared with 4.4% in the first quarter of 2018
Change in fair value of a convertible loan was nil, compared to a loss of
Share-based compensation was
Net income was
Adjusted net income (non-GAAP) was
Basic and diluted net income per ADS were
Because certain distributors advanced their purchase in the first quarter ahead of the implementation of the new national standard in April, NIU expects revenues of second quarter to be in the range of
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.
1 Adjusted net income/loss (non-GAAP) is defined as net income/loss excluding share-based compensation expenses and change in fair value of a convertible loan.
2Adjusted net income/loss margin is defined as adjusted net income/loss as a percentage of the revenues.
The Company will host a conference call at
Participants may access the call via below dial-in details:
A replay will be accessible through
|Replay Access Code||8141818|
Additionally, a live and archived webcast of the conference call will also be available through the Company’s investor relations website at https://ir.niu.com/.
As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance smart e-scooters. NIU has a streamlined product portfolio consisting of three series, N, M and U that address the needs of different segments of the modern urban resident, 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 sell its products and provide 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
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/loss is defined as net income/loss excluding share-based compensation expenses and change in fair value of a convertible loan. Adjusted net income/loss margin is defined as adjusted net income/loss as a percentage of the revenues.
For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures.”
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
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
Investor Relations Contacts:
Investor Relations Manager
|UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS|
|As of March 31,|
|Accounts receivable, net||54,424,845||81,462,030||12,138,221|
|Prepayments and other current assets||26,919,954||46,336,261||6,904,318|
|Total current assets||1,119,743,397||1,180,019,853||175,828,443|
|Property and equipment, net||40,985,174||59,845,866||8,917,312|
|Intangible assets, net||7,717,754||9,016,984||1,343,573|
|Other non-current assets||16,805,474||14,708,292||2,191,604|
|Total non-current assets||65,508,402||83,571,142||12,452,489|
|Short-term bank borrowings||179,978,003||208,461,336||31,061,708|
|Advance from customers||20,505,861||44,845,236||6,682,149|
|Accrued expenses and other current liabilities||134,184,026||130,829,930||19,494,268|
|Total current liabilities||597,000,110||673,627,766||100,373,669|
|Deferred revenue-non current||234,801||383,181||57,096|
|Total non-current liabilities||17,844,643||16,556,970||2,467,066|
|Class A ordinary shares||83,120||83,120||12,385|
|Class B ordinary shares||12,839||12,839||1,913|
|Additional paid-in capital||1,717,483,548||1,720,122,258||256,306,213|
|Accumulated other comprehensive loss||(22,786,922||)||(34,408,629||)||(5,127,046||)|
|Total shareholders’ equity||570,407,046||573,406,259||85,440,197|
|Total liabilities and shareholders’ equity||1,185,251,799||1,263,590,995||188,280,932|
|UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME|
|Three months ended March 31,|
|Cost of revenues(a)||(150,847,182||)||(279,547,894||)||(41,653,936||)|
|Selling and marketing expenses(a)||(19,260,806||)||(29,822,193||)||(4,443,645||)|
|Research and development expenses(a)||(10,117,070||)||(14,332,580||)||(2,135,621||)|
|General and administrative expenses(a)||(18,622,625||)||(20,658,720||)||(3,078,245||)|
|Changes in fair value of a convertible loan||(34,499,858||)||-||-|
|Foreign currency exchange losses||(1,368,249||)||(2,365,616||)||(352,488||)|
|(Loss)/income before income taxes||(61,882,999||)||11,975,249||1,784,368|
|Income tax benefit||-||6,961||1,037|
|Other comprehensive income/(losses)|
|Foreign currency translation adjustment||7,119,259||(11,586,902||)||(1,726,502||)|
|Unrealized/(reclassification) of gain on available for sale securities, net||(144,665||)||(34,805||)||(5,186||)|
|Net (loss)/income per share|
|Net income per ADS|
|Weighted average number of shares outstanding used in computing net (loss)/income per share|
|Weighted average number of ADS outstanding used in computing net income per ADS|
|(a) Includes share-based compensation expenses as follows:|
|Three months ended March 31,|
|Cost of revenues||60,162||62,724||9,346|
|Selling and marketing expenses||487,046||698,743||104,116|
|Research and development expenses||3,273,007||424,915||63,314|
|General and administrative expenses||11,038,621||1,452,328||216,404|
|Total share-based compensation||14,858,836||2,638,710||393,180|
|RECONCILIATION OF GAAP AND NON-GAAP RESULTS|
|Three months ended March 31,|
|Change in fair value of a convertible loan||34,499,858||-||-|
|Adjusted net (loss)/income||(12,524,305||)||14,620,920||2,178,585|
Source: Niu Technologies