Niu Technologies Announces First Quarter 2020 Financial Results
-- First Quarter Total volume of e-scooter sales down 39.4% year over year
-- First Quarter Revenues of
-- First Quarter Net loss of
First Quarter 2020 Financial Highlights
- Revenues were
RMB 232.9 million, a decrease of 34.4% year over year
- Gross margin was 23.6%, compared with 21.3% in the first quarter of last year
- Net loss was
RMB 26.4 million, compared with net income of RMB 12.0 millionin the first quarter of last year
- Adjusted net loss (non-GAAP)1 was
RMB 18.6 million, compared with adjusted net income of RMB 14.6 millionin the first quarter of last year
First Quarter 2020 Operating Highlights
- The number of e-scooters sold reached 40,160, down 39.4% year over year
- The number of e-scooters sold in
Chinareached 34,316, down 43.5% year over year
- The number of e-scooters sold in the international markets reached 5,844, up 5.9%2 year over year
- The number of franchised stores in
Chinawas 1,033, a decrease of 17 since December 31, 2019
- International sales network expanded to 33 distributors covering 42 countries
COVID-19 Response and Recovery Actions
The Company is executing its plan to address the impact of COVID-19 and has begun its recovery through a multitude of actions across the following areas:
Supporting distributors and dealers – Extended credit payment date for selective distributors and granted rebate to dealers including those missing the sales volume target in the first quarter. Provided training to
Resumed supply chain – Reopened manufacturing facility since the 2nd half of February after implementing rigorous protocols and procedures for worker safety. Resumed normal supply chain and operation in early April.
Cash and liquidity – Reduced and postponed planned capital expenditure in the first quarter. Resumed retails sales network expansion in
Community strength – Acted quickly and in alignment with government efforts to protect the safety and health of employees. Implemented travel restrictions, enhanced sanitation practices, and cancelled group events. In support of relief efforts, the Company donated masks to hospitals in
First Quarter 2020 Financial Results
- E-scooter sales represented 79.9% of total revenues, while accessories, spare parts sales and service revenues represented 20.1% of total revenues.
- Lower e-scooter sales volume was mainly due to the adverse impact of COVID-19 on our business and operation.
- Increased revenues per e-scooter were mainly driven by higher revenues from accessories, spare parts and services per e-scooter, which was
RMB 1,168, compared with RMB 671in the same period last year. Chinarepresented 71.1% of total e-scooter revenues, while international markets represented 28.9% of total e-scooter revenues.
Cost of revenues were
Gross margin was 23.6%, compared with 21.3% in the same period of 2019. The increase was mainly due to a greater proportion of e-scooter revenues from international markets, and higher proportion of revenues from accessories, spare parts and services.
Operating expenses were
- Selling and marketing expenses were
RMB 44.2 million(including RMB 1.6 millionof share-based compensation), an increase of 48.1% from RMB 29.8 millionin the first quarter of 2019. The increase was mainly due to the increase in advertising and promotion expense of RMB 10.7 millionas a result of our branding and marketing activities to support distributors and dealers to accelerate retail sales, the increase in depreciation and amortization expense of RMB 2.6 milliondue to a larger retail sales network, and the increases in staff cost and travel expenses of RMB 1.3 million. Selling and marketing expenses as a percentage of revenues was 19.0% compared with 8.4% in the first quarter of 2019.
- Research and development expenses were
RMB 22.7 million(including RMB 2.0 millionof share-based compensation), an increase of 58.6% from RMB 14.3 millionin the first quarter of 2019, mainly due to the increase in staff cost of RMB 5.6 millionas a result of more employees, the increase in share-based compensation expense of RMB 1.5 millionand the increase in design expense of RMB 0.9 milliondue to more new products development. Research and development expenses as a percentage of revenues was 9.8%, compared with 4.0% in the first quarter of 2019.
- General and administrative expenses were
RMB 24.2 million(including RMB 4.1 millionof share-based compensation), an increase of 5.3% from RMB 23.0 millionin the first quarter of 2019, mainly due to the increase in share-based compensation expense of RMB 2.6 millionand the increase in rental expenses of RMB 2.0 milliondue to office move and larger office space. The higher expenses were partially offset by the decreases in professional fees of RMB 1.5 millionand foreign currency exchange loss of RMB 1.4 million. General and administrative expenses as a percentage of revenues was 10.4%, compared with 6.5% in the first quarter of 2019.
Operating expenses excluding share-based compensation were
- Selling and marketing expenses excluding share-based compensation were
RMB 42.6 million, an increase of 46.2% year over year, and represented 18.3% of revenues, compared with 8.2% in the first quarter of 2019.
- Research and development expenses excluding share-based compensation were
RMB 20.8 million, an increase of 49.3% year over year, and represented 8.9% of revenues, compared with 3.9% in the first quarter of 2019.
- General and administrative expenses excluding share-based compensation were
RMB 20.2 million, a decrease of 6.5% year over year, and represented 8.7% of revenues, compared with 6.1% in the first quarter of 2019.
Government grants were
Share-based compensation was
Net loss was
Adjusted net loss (non-GAAP) was
Basic and diluted net loss per ADS were both
NIU expects revenues of the second quarter 2020 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 in light of uncertainties and situations related to how COVID-19 develops.
The Company will host a conference call at
Participants may access the call via below dial-in details.
A replay will be accessible through
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 electric bicycles and motorcycles. NIU has a product portfolio consisting of seven series, four e-scooter series, including NQi, MQi and UQi with smart functions and Gova, two urban commuter electric motorcycles series RQi and TQi, and a performance bicycle series, NIU Aero. 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
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. 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 “Reconciliation of GAAP and Non-GAAP Results.”
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Investor Relations Contact:
Investor Relations Manager
|UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||279,945,942||339,273,755||47,914,608|
|Accounts receivable, net||115,228,700||59,624,667||8,420,612|
|Prepayments and other current assets||30,982,131||30,751,263||4,342,907|
|Total current assets||1,311,290,018||1,197,666,109||169,142,768|
|Property and equipment, net||150,891,344||152,265,195||21,503,954|
|Intangible assets, net||7,779,749||7,366,189||1,040,305|
|Land use right, net||34,355,936||34,182,129||4,827,439|
|Other non-current assets||6,522,561||5,885,425||831,180|
|Total non-current assets||199,549,590||199,698,938||28,202,878|
|Short-term bank borrowings||217,394,132||188,910,798||26,679,301|
|Income taxes payable||3,013,805||-||-|
|Advance from customers||7,478,309||31,803,364||4,491,493|
|Accrued expenses and other current liabilities||175,533,397||149,499,433||21,113,353|
|Total current liabilities||693,513,607||594,213,791||83,919,018|
|Deferred income tax liability||1,265,780||1,252,235||176,849|
|Other non-current liabilities||22,358,968||19,438,960||2,745,306|
|Total non-current liabilities||25,795,781||23,146,964||3,268,976|
|Class A ordinary shares||84,494||84,547||11,940|
|Class B ordinary shares||11,977||11,977||1,691|
|Additional paid-in capital||1,738,102,741||1,745,942,033||246,574,121|
|Accumulated other comprehensive loss||(12,368,224||)||(5,357,571||)||(756,633||)|
|Total shareholders’ equity||791,530,220||780,004,292||110,157,652|
|Total liabilities and shareholders’ equity||1,510,839,608||1,397,365,047||197,345,646|
|UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)|
|Three months ended
|Cost of revenues(a)||(279,547,894||)||(178,023,007||)||(25,141,652||)|
|Selling and marketing expenses(a)||(29,822,193||)||(44,172,610||)||(6,238,364||)|
|Research and development expenses(a)||(14,332,580||)||(22,735,585||)||(3,210,878||)|
|General and administrative expenses(a)||(23,024,336||)||(24,249,242||)||(3,424,647||)|
|Total operating expenses||(67,179,109||)||(91,157,437||)||(12,873,889||)|
|Income/(loss) before income taxes||11,975,249||(26,564,035||)||(3,751,559||)|
|Income tax benefit||6,961||188,109||26,566|
|Other comprehensive income/(loss)|
|Foreign currency translation adjustment||(11,586,902||)||6,486,957||916,133|
|Reclassification/Unrealized gain on available for sale securities, net||(34,805||)||523,696||73,960|
|Net income/(loss) per ordinary share|
|Net income/(loss) per ADS|
|Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income/(loss) per ordinary share|
|Weighted average number of ADS outstanding used in computing net income/(loss) per ADS|
|(a) Includes share-based compensation expense as follows:|
|Three months ended
|Cost of revenues||62,724||76,622||10,821|
|Selling and marketing expenses||698,743||1,602,642||226,336|
|Research and development expenses||424,915||1,972,691||278,597|
|General and administrative expenses||1,452,328||4,084,222||576,802|
|Total share-based compensation expense||2,638,710||7,736,177||1,092,556|
|RECONCILIATION OF GAAP AND NON-GAAP RESULTS|
|Three months ended
|Share-based compensation expense||2,638,710||7,736,177||1,092,556|
|Adjusted net income/(loss)||14,620,920||(18,639,749||)||(2,632,437||)|
1 Adjusted net income/loss (non-GAAP) is defined as net income/loss excluding share-based compensation expense.
2 The number of e-scooter sold in the international markets was 5,518 in the first quarter 2019, and 13,748, 5,266 and 4,335 in the second, third and fourth quarter 2019.
3 Adjusted net income/loss margin is defined as adjusted net income/loss (non-GAAP) as a percentage of the revenues.
Source: NIU Technologies