Niu Technologies Announces Third Quarter 2019 Financial Results
-- Third Quarter Total volume of e-scooter sales up 23.5% year over year
-- Third Quarter Revenues of
-- Third Quarter net income of
Third Quarter 2019 Financial Highlights
- Revenues were
RMB 654.5 million, an increase of 32.7% year over year
- Gross margin was 22.2%, compared with 12.4% in the third quarter of 2018
- Net income was
RMB 66.4 million, compared with net loss of RMB 2.2 millionin the third quarter of 2018
- Adjusted net income (non-GAAP)1 was
RMB 72.5 million, compared with adjusted net income of RMB 4.9 millionin the third quarter of 2018
Third Quarter 2019 Operating Highlights
- The number of e-scooters sold reached 149,424, up 23.5% year over year
- Franchised stores in
Chinareached 1,020, an increase of 15 since June 30, 2019
- Overseas sales network expanded to 26 distributors covering 35 countries
Dr. Li continued, “The overseas markets play a significant role in our overall business. In November, at EICMA Milan Italy, we launched a new product, the NIU Aero electric bicycle, and three upgraded e-scooter models with improved top speed and riding range. The new product and models are designed mainly for overseas markets such as European and U.S. In
Third Quarter 2019 Financial Results
- E-scooter sales represented 88.0% of total revenues, while accessories, spare parts sales and service revenues represented 12.0% of total revenues.
- Higher e-scooter sales volume was mainly driven by the expanded sales network and enriched product portfolio.
- Increased revenues per e-scooter were mainly driven by higher sales in accessories, spare parts and services.
Chinarepresented 92.4% of total e-scooter revenues, while overseas markets represented 7.6% of total e-scooter revenues, compared with 5.1% in the third quarter of 2018.
Cost of revenues were
Gross margin was 22.2%, up substantially from 12.4% in the same period of 2018, mainly due to lower raw material costs, and a greater proportion of international sales and revenue from accessories and spare parts.
Operating expenses were
- Selling and marketing expenses were
RMB 57.1 million(including RMB 1.3 millionof share-based compensation), an increase of 49.9% from RMB 38.1 millionin the third quarter of 2018. The increase was mainly due to the increases in advertising and promotion expense of RMB 9.1 million, staff cost and travelling expense of RMB 2.8 million, depreciation and amortization expense of RMB 2.5 millionand online sales promotion expense of RMB 1.8 million, as a result of 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 8.7% compared with 7.7% in the third quarter of 2018.
- Research and development expenses were
RMB 17.1 million(including RMB 1.4 millionof share-based compensation), an increase of 25.0% from RMB 13.7 millionin the third quarter of 2018, mainly driven by the increases in staff cost of RMB 3.1 millionand design expense of RMB 2.0 millionwhich resulted from the Company’s continued efforts to enhance the research and development capability. The higher expenses were partially offset by the decrease of share-based compensation expenses of RMB 2.2 million. Research and development expenses as a percentage of revenues was 2.6%, compared with 2.8% in the third quarter of 2018.
- General and administrative expenses were
RMB 17.6 million(including RMB 3.3 millionof share-based compensation), an increase of 24.9% from RMB 14.1 millionin the third quarter of 2018, mainly due to increase of staff cost of RMB 1.3 millionand taxes and surcharges of RMB 1.0 million. General and administrative expenses as a percentage of revenues was 2.7%, compared with 2.9% in the third quarter of 2018.
Operating expenses excluding share-based compensation was
- Selling and marketing expenses excluding share-based compensation were
RMB 55.8 million, an increase of 48.6% year over year, and represented 8.5% of revenues, compared with 7.6% in the third quarter of 2018.
- Research and development expenses excluding share-based compensation were
RMB 15.7 million, an increase of 55.0% year over year, and represented 2.4% of revenues, compared with 2.0% in the third quarter of 2018.
- General and administrative expenses excluding share-based compensation were
RMB 14.3 million, an increase of 28.2% year over year, and represented 2.2% of revenues, compared with 2.3% in the third quarter of 2018.
Share-based compensation was
Net income was
Adjusted net income (non-GAAP) was
Basic and diluted net income per ADS were
- NIU expects revenues of fourth quarter to be in the range of
RMB 450 million to RMB 515 million, representing a year-over-year increase of 5% to 20%.
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.
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 smart e-scooters. NIU has a streamlined portfolio of products 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|
|December 31,||September 30,||September 30,|
|Accounts receivable, net||54,424,845||62,179,177||8,699,187|
|Prepayments and other current assets||26,919,954||34,426,620||4,816,461|
|Total current assets||1,119,743,397||1,527,064,058||213,644,117|
|Property and equipment, net||40,985,174||118,318,214||16,553,327|
|Intangible assets, net||7,717,754||8,212,859||1,149,021|
|Land use rights, net||-||34,529,744||4,830,889|
|Other non-current assets||16,805,474||4,873,209||681,787|
|Total non-current assets||65,508,402||165,934,026||23,215,024|
|Short-term bank borrowings||179,978,003||268,461,336||37,559,122|
|Income taxes payable||-||7,894,181||1,104,437|
|Advance from customers||20,505,861||44,309,294||6,199,098|
|Accrued expenses and other current liabilities||134,184,026||197,935,964||27,692,260|
|Total current liabilities||597,000,110||942,198,043||131,818,354|
|Deferred revenue-non current||234,801||1,857,151||259,825|
|Total non-current liabilities||17,844,643||20,775,295||2,906,571|
|Class A ordinary shares||83,120||83,487||11,680|
|Class B ordinary shares||12,839||12,839||1,796|
|Additional paid-in capital||1,717,483,548||1,730,040,756||242,041,602|
|Accumulated other comprehensive loss||(22,786,922||)||(5,105,249||)||(714,252||)|
|Total shareholders’ equity||570,407,046||730,024,746||102,134,216|
|Total liabilities and shareholders’ equity||1,185,251,799||1,692,998,084||236,859,141|
|UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME|
|Three months ended September 30,||Nine months ended September 30,|
|Cost of revenues(a)||(432,008,871||)||(509,226,828||)||(71,243,453||)||(909,193,943||)||(1,193,792,703||)||(167,017,740||)|
|Selling and marketing expenses(a)||(38,118,554||)||(57,130,290||)||(7,992,821||)||(108,347,926||)||(133,992,951||)||(18,746,303||)|
|Research and development expenses(a)||(13,652,474||)||(17,061,618||)||(2,387,008||)||(69,706,558||)||(48,097,804||)||(6,729,130||)|
|General and administrative expenses(a)||(14,059,924||)||(17,564,177||)||(2,457,319||)||(247,377,044||)||(57,380,306||)||(8,027,800||)|
|Changes in fair value of a convertible loan||-||-||-||(34,499,858||)||-||-|
|Foreign currency exchange gain/(losses)||2,347,184||4,809,136||672,823||1,944,522||4,029,808||563,791|
|(Loss)/income before income taxes||(2,158,473||)||74,193,494||10,380,052||(317,028,301||)||137,166,754||19,190,335|
|Income tax expense||-||(7,778,647||)||(1,088,273||)||-||(7,788,302||)||(1,089,624||)|
|Other comprehensive income/(losses)|
|Foreign currency translation adjustment||(11,470,675||)||16,604,752||2,323,090||(18,319,140||)||16,779,673||2,347,563|
|Unrealized gain on available for sale securities, net||293,293||853,726||119,441||394,405||902,000||126,194|
|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 September 30,||Nine months ended September 30,|
|Cost of revenues||64,306||76,852||10,752||184,739||214,621||30,027|
|Selling and marketing expenses||580,742||1,332,752||186,459||1,605,107||3,041,915||425,580|
|Research and development expenses||3,542,241||1,385,910||193,896||43,660,213||2,257,838||315,883|
|General and administrative expenses||2,908,665||3,266,058||456,938||195,592,798||6,323,852||884,739|
|Total share-based compensation||7,095,954||6,061,572||848,045||241,042,857||11,838,226||1,656,229|
|RECONCILIATION OF GAAP AND NON-GAAP RESULTS|
|Three months ended September 30,||Nine months ended June 30,|
|Change in fair value of a convertible loan||-||-||-||34,499,858||-||-|
|Adjusted net income/(loss)||4,937,481||72,476,419||10,139,824||(41,485,586||)||141,216,678||19,756,940|
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.
2 Adjusted net income/loss margin is defined as adjusted net income/loss as a percentage of the revenues.
Source: Niu Technologies