Niu Technologies Q1 Earnings Call Highlights

Niu Technologies (NASDAQ:NIU) reported a sharp increase in first-quarter 2026 revenue and China sales volume, as management said growth in electric motorcycles offset weakness in electric bicycles during a period of regulatory transition.

Chief Executive Officer Yan Li said total sales volume reached about 261,000 units, up 28.7% year over year, while revenue rose 33.4% to RMB 909.52 million. Chief Financial Officer Fion Zhou later cited total sales volume of 262,000 units, including 248,000 units sold in China and 14,000 units overseas.

“The first quarter of 2026 was a period of high-quality execution and strategic resilience within a complex regulatory environment,” Li said.

China Growth Driven by Electric Motorcycles

In China, Niu’s sales volume increased 35.4% year over year to 247,938 units. Li said the company saw a “significant positive structural evolution” in its domestic business, with electric motorcycle sales rising threefold from the prior-year period.

Li said the growth built on momentum from the company’s Windstorm product line and reflected expansion into tier 2 and tier 3 cities. He described the performance as a “definitive market breakthrough” that showed Niu’s ability to scale beyond its historical base in tier 1 cities.

At the same time, Li said electric bicycle sales softened, which management had anticipated as China’s market adjusted to a new national standard that took effect last December. He said Niu is introducing new product lines in phases as demand stabilizes.

“Historically, NIU has been perceived as a tier 1 city brand,” Li said. “In Q1, we saw the tier 1, the new tier 1 city softened, where the tier 2 and tier 3 cities grow on a faster pace, fueled by the rapid adoption of electric motorcycles.”

Marketing and Product Launches Front-Loaded

Management said the company made a deliberate decision to front-load marketing, research and development, and product launch investments in the first quarter. Li said marketing expenses rose more than fourfold year over year, calling the spending a “one-time front-loading” of the annual budget.

The company highlighted three major branding initiatives during the quarter:

• A global ambassador campaign featuring Wu Lei and Song Yuqi, which Li said generated 3.4 billion impressions across more than 40 cities and more than 80 global landmarks.
• A Spring Festival campaign across 37 cities, 42 transportation hubs and nearly 3,000 cinemas, which generated more than 400 million impressions.
• A March 17 technology launch event focused on Niu’s next-generation AI mobility strategy, which Li said drew more than 130 media outlets and 450 million impressions.

Li said the company expects the marketing-to-revenue ratio to normalize in the second quarter and beyond.

Niu also emphasized AI-related product development. Li said the company is focused on an AI operating system, an intelligent chassis platform and intelligent riding technology. The company launched the NQi2 series, priced from RMB 5,299 to RMB 12,999, including the NQi2 Ultra, which Li described as the industry’s first AI-powered electric bicycle.

Niu also introduced the Y series, aimed at female mobility users at a RMB 3,000 to RMB 4,000 price point, and the NX Marathon electric motorcycle, priced at RMB 6,499. Li said the NX Marathon generated more than RMB 91 million in sales within five hours of launch and ranked first across major e-commerce platforms.

Overseas Business Remains in Transition

International sales totaled 13,686 units, down 32.4% year over year. Li said the decline was a planned result of channel optimization and inventory discipline, with the company prioritizing retail sales growth and long-term profitability over short-term shipments.

Li said the high-margin electric motorcycle business overseas remained a priority, with shipments of more than 2,000 units, up 29% year over year. The company’s active European dealer locations increased from 307 to 360 during the quarter.

However, micro-mobility sales overseas declined 37% year over year. Li said the company completed a shift to a linear distribution model in key markets including Germany and the United States, with partners such as Best Buy and MediaMarkt focused on selling existing inventory during the first quarter. He said fresh stocking under the new model began in the second quarter.

Niu is also working through elevated micro-mobility inventory in Europe and the U.S. Li said the company will use targeted promotions, particularly on older models, to reduce inventory during 2026. He warned that the strategy will weigh on micro-mobility contribution margins for the year.

Margins, Expenses and Losses

Zhou said first-quarter revenue rose by RMB 228 million from the prior-year period to RMB 910 million. China revenue was RMB 854 million, representing 94% of total revenue. China scooter revenue rose 42% year over year to RMB 774 million, driven by higher sales volume and improved revenue per e-scooter. China scooter average selling price increased nearly 5% to RMB 3,120.

Overseas revenue was RMB 56 million, or 6% of total revenue. Overseas scooter revenue, including electric motorcycles, mopeds, kick scooters and e-bikes, declined to RMB 51 million from RMB 60 million a year earlier. Zhou said the decrease reflected lower sales volume and reduced revenue per kick scooter, partly offset by higher revenue per electric motorcycle and moped. Overseas scooter ASP increased to RMB 3,716 from RMB 2,962.

Revenue from accessories, spare parts and services rose 13% year over year to RMB 85 million, mainly due to higher revenue from new services.

Gross profit exceeded RMB 159 million, and gross margin was 17.4%, up 0.1 percentage point from the prior-year period and 2.1 percentage points from the previous quarter. Zhou said domestic gross margin benefited from a favorable higher-margin product mix, though gains were offset by lower kick scooter margins.

Operating expenses increased 60% year over year to RMB 264 million. Selling and marketing expenses rose to RMB 180 million, R expenses increased to RMB 41 million, and general and administrative expenses rose to RMB 42 million, largely due to foreign currency exchange losses.

Niu reported a GAAP net loss of RMB 94 million, with a net loss margin of 10.3%, compared with a net loss of RMB 39 million and a 5.7% net loss margin a year earlier. Non-GAAP net loss was RMB 88 million, with a non-GAAP net loss margin of 9.7%.

Second-Quarter Outlook

Niu ended the quarter with RMB 1.4 billion in cash, restricted cash, term deposits and short-term investments, which Zhou said was flat compared with the end of last year. Operating cash inflow was RMB 131 million, and capital expenditures were RMB 70 million, mainly due to new store openings and module costs in China.

For the second quarter, the company guided for revenue of RMB 1.57 billion to RMB 1.82 billion, representing year-over-year growth of 25% to 45%. Zhou said the outlook reflects information available as of the call date and remains subject to change.

No analysts asked questions during the conference call.

About Niu Technologies (NASDAQ:NIU)

Niu Technologies Co, Ltd., established in 2014 and headquartered in Beijing, is a leading designer and manufacturer of smart electric scooters and micro-mobility solutions. The company integrates Internet of Things (IoT) connectivity into its vehicles, enabling real-time monitoring of battery status, vehicle diagnostics, and location tracking through its proprietary mobile application. By leveraging lightweight materials and modular battery systems, Niu aims to deliver efficient urban transportation alternatives that reduce reliance on conventional gasoline-powered motorcycles and cars.

Niu's product portfolio encompasses a range of electric scooters, motorcycles, and e-bikes marketed under its NQi, MQi, and UQi series.

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