Contradictions Unveiled: Analyzing Sales Growth, Profit Margins, and Market Outlook in 2025 Q1 Earnings Call

Sales volume growth and profitability expectations, average selling price and gross profit margin outlook, gross margin recovery timeline,



Sales Volume and Revenue Growth:
- Niu Technologies reported a total sales volume of 203,000 units for Q1 2025, marking a 57.4% year-over-year increase, with total revenue reaching RMB682 million, reflecting a 35% increase compared to the same period last year.
- The growth was driven by a 66% year-over-year increase in sales volume in the China market and a 6.4% year-over-year growth in the overseas market. The increase in sales volume was aided by product innovations, expanded sales channels, and targeted marketing strategies.

Gross Margin Improvement:
- Niu Technologies' gross margin rebounded to 17.3%, with a 4.9% year-over-year increase, primarily driven by pump cost reduction, platformization, component standardization, and procurement cost improvements.
- The improvement in gross margin was due to successful cost reduction initiatives, particularly in the domestic market, where motorcycles and mopeds contributed more than 40% of the sales volume.

Overseas Market Growth:
- The overseas market sales volume reached 20,000 units in Q1 2025, reflecting a 3 times growth, with electric two wheeler market sales contributing more than 50%.
- Growth was driven by direct distribution operations in key countries like Germany, Italy, and France, along with the introduction of a full lineup of electric two wheeler products.

Product Innovation and Launch:
- Niu Technologies expanded its electric motorcycle range with models like NX, NL, and FX, priced between RMB4,000 and over RMB10,000, aligning with new performance and safety standards.
- The launch of these models was aimed at diversifying the product portfolio, increasing market share, and enhancing consumer appeal.