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Niu Technologies published Q2 / 2019 financial results

– Second Quarter E-Scooter Gross sales Increased 13.8% YoY

– Second Quarter Income 530.5 Million RMB, 38.1% YoY

– Second Quarter Internet Revenue 51.zero Million RMB , in comparison with a internet lack of RMB 253.zero million in Q2 final yr

BEIJING, Aug 23, 2019 (GLOBE NEWSWIRE) – Niu Technologies (“NIU” or “Company”) (NASDAQ: NIU), World Main Supplier of Sensible Metropolis Visitors Options as we speak introduced its financial results for the second quarter of 2019.

Second quarter 2019 financial highlights

  • Revenue was RMB 530.5 million, up 38.1% in comparison with the identical interval final yr
  • . was 23.7% in comparison with 15.1% in the second quarter of 2018.
  • Internet revenue was RMB 51.zero million, compared with a internet loss of RMB 253.0 million within the second quarter of 2018.
  • Adjusted Internet Revenue (Non-GAAP) 1 was RMB 54.1 Million, in comparison with Adjusted Internet Loss of RMB 33.9 Million in Q2 2018 [196590010] Q2 2019 Key Operations

    • The variety of Scooters bought was 99,365 13.8% greater than a yr earlier.
    • The number of franchising stores in China was 1,005, a rise of 124 after March 31. , 2019
    • overseas sales community expanded to 26 distributors in 34 nations.
    • In April, NIU launched two new fashions, U + and Us.

    Dr. Company CEO Yan Li comments: “We achieved regular revenue progress amid the difficult market surroundings in China's e-scooter business because of the commerce warfare, China's economic slowdown and the introduction of latest nationwide requirements. China's gross sales have been affected by lengthy certification and registration procedures through the implementation of this new regulation. Nevertheless, our worldwide gross sales remained robust and our overseas sales within the second quarter have been more than double the year-ago determine. "

    Dr. Li continued, “Gross margin improved to 23.7% because of lower further prices and favorable change in income combine. We continued to be profitable this quarter with internet revenue of RMB 51.zero million. We are enthusiastic about our enterprise opportunities and are dedicated to increasing our operations profitably within the coming quarters. In an effort to deal with the rising sales volume, we are at present building a new unit in Changzhou for the land we purchased the land use rights in June. “

    Second quarter financial results

    Revenue was RMB 530.5 million. , a rise of 38.1% over the earlier yr resulting from 13.8% improve in gross sales and 21.3% improve in earnings per e-scooter.

    • E-Scooters accounted for 85.1% of complete income, whereas provides, elements and providers accounted for 14.9% of complete revenue.
    • Greater gross sales volumes of e-Scooters have been mainly because of robust demand within the worldwide market.
    • The increase in revenue in the direction of e-scooters was mainly as a result of larger share of international sales and higher gross sales. provides and spare elements sales.
    • China accounted for 73.zero% of the full income of e-Scooters, whereas overseas markets accounted for 27.zero% of the entire revenue of e-Scooters, in contrast with 10.2% in the second quarter of 2018. Reven's gross sales have been RMB 405.0 million, up 24.1% year-on-year, mainly as a result of greater e-scooter sales. The cost of the e-scooter, defined because the income value divided by the number of e-scooters bought during a given period, was RMB four,076, a rise of 9.zero% in comparison with RMB 3,739 in Q2 2018 because of a change in product mix. [19659004] Gross margin was 23.7%, considerably larger than in the identical interval in 2018, when it was 15.1%, primarily as a result of lower raw material costs and better international sales and return on supplies and elements.

      Working expenses have been RMB 82.9 million, down 73.4% in comparison with the identical interval in 2018. Working expenses as a proportion of internet sales have been 15.6%, in contrast with 81.1% in the second quarter of 201.1.

      • Gross sales and advertising expenses have been RMB47.0 million (together with a RMB 1.0 million share premium), down 7.7% from RMB51.0 million within the second quarter of 2018. The lower was primarily as a consequence of decrease promoting and promotion costs of RMB 11.four million, which partially offset employees prices, office and travel expenses of RMB four.1 million, depreciation of RMB 2.zero million as a consequence of elevated sales of e-Scooters, opening of latest franchise shops and elevated gross sales pressure. Gross sales and advertising expenses as a proportion of income have been eight.9% in comparison with 13.3% within the second quarter of 2018.
      • Research and improvement prices totaled RMB 16.7 million (together with RMB 0.4 million in share capital), down 63.6% from RMB 45.9 million in Q2 2018, mainly resulting from a lower in share-based compensation costs of $ 36.four million RMB. The lower prices have been partially offset by a rise in employees costs of RMB 5.0 million and an increase in design prices of RMB 1.2 million following the company's continued efforts to improve its R&D capabilities. R&D expenditure as a proportion of income was three.1%, in contrast with 12.0% within the second quarter of 2018.
      • Common and administrative bills have been RMB 19.2 million (together with RMB 1.6 million in share-based compensation), down 91.1% from RMB 214.7 million within the second quarter of 2018, mainly as a consequence of a lower in share-based compensation prices of 180, RMB zero million and a fireplace accident in April 2018 resulting from a loss of RMB 22.3 million. Lower expenses partially offset employees prices of RMB 5.0 million, journey and workplace prices of RM1.5 million because of increased employees numbers. Basic and administrative bills as a proportion of income have been three.6%, in contrast with 55.9% in the second quarter of 2018.

      Operating expenses excluding share-based compensation have been RMB 79.eight million, down 13.eight% year-on-year to 15.0. % of gross sales, in comparison with 24.1% in the second quarter of 2018.

      • Gross sales and advertising bills excluding share-based compensation have been RMB46.0 million, down eight.7% from the prior yr and representing eight.7% of internet gross sales 13.1% in Q2 / 2018.
      • Analysis and improvement expenses, excluding share-based compensation, totaled RMB16.3 million, up 78.eight% year-on-year and representing three.1% of revenue, compared with 2.four% within the second quarter.
      • Basic and administrative bills, excluding share-based compensation, have been RMB 17.6 million, down 46.9% year-on-year and representing three.three% of internet sales compared to 8.6% within the second quarter of 2018 . 10] Fairness compensation was Rs 3.1 million, a decrease of Rs 216.zero million in comparison with Rs 219.1 million throughout the identical period final yr, mainly because of larger expenses because of the accelerated incomes of sure restricted peculiar shares in 2018 and the transfer of several odd shares to at least one shareholder. compensation in June 2018.

        Internet revenue was RMB 51.0 million, an improvement of RMB 304.0 million compared to a internet loss of RMB 253.0 million. second quarter of 2018. Internet interest margin was 9.6% compared to a internet margin of 65.8% for the corresponding interval in 2018.

        Adjusted internet revenue (non-GAAP) was RMB 54.1 million compared to adjusted internet revenue. Lack of RMB 33.9 million in Q2 2018. The adjusted internet margin margin2 was 10.2% compared to the adjusted internet margin of 8.8% for the same period in 2018.

        Primary and diluted internet revenue per ADS have been RMB zero.685 ($ zero.100) and RMB zero.665 ($ 0.097).

        Stability Sheet
        As of June 30, 2019, the company had a complete of RMB 667.four million in money, fixed-term and short-term investments. The company had limited money holdings of RMB 272.6 million and short-term financial institution loans of RMB 268.5 million.

        Business Outlook
        NIU expects third quarter income to be within the vary of RMB 600 million to RMB 700 million, representing annual progress of 22% to 42%.

        The above views are based mostly on info obtainable at the date of this press release and mirror the Firm's present and preliminary expectations, which can change.

        Conference Name

        The corporate will host a conference name at eight:00 am on August 23, 2019 US Japanese Time (8:00 pm on August 23, 2019 Beijing / Hong Kong Time) to discuss its Q2 / 2019 financial results and provide a business replace.

        Individuals can access the decision by way of the small print of the telephone calls under.

        United States + 1-866-519-4004 Worldwide + 65-6713-5090 [19659045] Hong Kong 800-906-601 Mainland China 400-620-8038 Convention ID 5297867

        Repeat play out there August 31, 2019 by calling the following numbers:

        United States + 1-855-452-5696 international +61 -281-990-299 Hong Kong 800-963-117 Mainland China 400-602-2065 Conference ID 5297867

        In addition, stay and the archived webcast of the convention name can also be out there on the Company's Investor Relations website at https://ir.niu.com/ .

        About Niu Technologies

        The world's leading supplier of sensible cities. mobility options, NIU designs, manufactures and markets high-performance sensible e-scooters. NIU has a streamlined product line consisting of three collection, N, M and U, which meet the wants of various segments of the fashionable city resident, whereas combining a standard design language that emphasizes fashion, freedom and know-how. NIU has introduced a multi-channel retail model that integrates offline and online channels with product gross sales and service supply. For more info, go to www.niu.com.

        Utilizing non-GAAP measures to supplement NIU's consolidated financial results introduced in accordance with Usually Accepted Accounting Rules (GAAP) in america of America. ), NIU uses the next non-GAAP financial measures: Adjusted Internet Revenue / Losses and Adjusted Internet Revenue / Margin. The presentation of these non-GAAP financial measures is just not meant to be separate or to switch financial info prepared and introduced in accordance with GAAP.

        NIU believes that these non-GAAP financial measures provide vital further information about its efficiency and liquidity by excluding certain gadgets that will not essentially indicate its operating outcome. The Firm believes that both administration and buyers will profit from referring to these non-GAAP financial measures in assessing the Firm's efficiency and in planning and evaluating future durations. These non-GAAP financial measures also facilitate inner administration comparisons with NIU's historic performance. The Company believes that these non-GAAP financial measures are useful to buyers because they allow larger transparency relating to the extra info used by management in its financial and operational decision-making. A limitation of using these financial measures outdoors of these non-GAAP financial reporting standards is that these non-GAAP measures exclude certain gadgets which were and shall be vital elements of the company's operating results for the foreseeable future. These non-GAAP financial measures introduced right here is probably not corresponding to similarly titled measures introduced by different corporations. Other corporations might calculate correspondingly titled gadgets, limiting their usefulness as reference elements for firm info.

        Adjusted internet revenue / loss is outlined as internet revenue / loss excluding share-based compensation prices and the change in the truthful value of a convertible bond. . The adjusted internet revenue / margin is defined as the adjusted internet revenue / loss as a proportion of income.

        For more info on non-GAAP financial measures, seek advice from the tables entitled “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measurements. "

        Foreign money Change Price

        This announcement incorporates translations of sure quantities of RMB into US dollars (" US $ ") at charges set forth solely for the needs of readers. Until in any other case said, all translations from RMB to US $ have been made at the fee of RMB 6.8650 – $ 1.00, effective as of June 30, 2019, as disclosed within the H.10 Board Statistical Bulletin. Governors of the Federal Reserve Bank. The Firm doesn’t declare that the stated RMB or US Dollar amounts might be transformed to US Dollars or RMB, as the case could also be, at any specific price or in any respect.

        Protected Harbor Assertion

        This press release incorporates forward-looking statements. These statements are made underneath the protected harbor provisions of the US Personal Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology comparable to "will," "expect," "anticipate," "goals." "Future", "intends", "plans", "believes", "estimates", "probably" and comparable statements. The enterprise prospects and management offerings in this announcement, in addition to NIU's strategic and operational plans, embrace forward-looking statements. NIU may make written or oral forward-looking statements in its periodic studies to the US Securities and Change Fee, in its Annual Report back to shareholders, press releases and other written material, and in oral statements made by its officers, administrators or staff. Statements that aren’t historic information, including statements about NIU beliefs, plans, and expectations are forward-looking statements. Forward-looking statements contain inherent risks and uncertainties. Numerous elements might cause discrepancies in precise results to be materially contained in forward-looking statements, together with but not limited to: NIU Methods; NIU's future enterprise improvement, financial place and results of operations; NIU's capacity to take care of and improve its "NIU" brand; means to innovate and efficiently market new services; the power to take care of and increase their offline distribution network; its means to satisfy obligatory safety standards related to e-scooters; potential to make sure delivery of elements and uncooked supplies used in e-scooters; the power to fabricate, launch and sell sensible e-scooters that meet buyer expectations; means to increase collaboration with business companions; means to regulate the prices associated to its actions; basic economic and enterprise circumstances in China and globally; and the assumptions underlying or associated to any of the foregoing. Extra details about these and different dangers is included in the NIU submitting with the Securities and Trade Commission. All info contained in this press launch is from the date of this release and NIU is just not required to replace the forward-looking statement, besides as required by relevant regulation.

        Investor Relations:

        NIU
        Jason Yang
        Investor Relations Manager
        E mail: ir@niu.com

        NIU TECHNOLOGIES
        VOID CONSOLIDATED
        31. December 30, 19659080 June June 30
        2018 [19659095] 2019 2019
        RMB RMB US $
        ASSETS . ]
        Inventory
        money 569 059 591 [19659120] 291 144 952 42 410 044
        time deposit
        ] 27,452,663 20 028 205
        limited cash move ] 272,581,397 39,705,956 [1965912] 19659129] 238,780,044 34,782,235 internet 54,424,845 [19656129] 19659128] 17,425,144
        inventories 142,382,205 205,904,210 [196595] [196995] [29993,330] 19659174] 19659174] 19659174] 19659174] 5356265 [19659174]
        Current Belongings 1,119,743,397 1,302,298,604 189,701,180
        non-current belongings internet tangible belongings 40,985,174 12,752,967 Intangible belongings, internet 7,717,754 eight,506,343 19659145] [1965919] [1969/599] internet – 34,703,551 5,055,142 like this 1965174 [1965173] [19554744725798 688 390 complete non-current belongings 65,508,402 19,565,913,195,941,129,195,911,134,95,941,129,195,941,124 19,735,588 [1965925] [1965925] [1965925] 19659130] 1 437 783 413 768 [1965919]] current liabilities short-term bank loans 179,978,003 [196591129] [196591309] ] ] 19659128] 20505861 46055803 [196591488] ] computed revenue at present ] 25,930,618 Complete Current Liabilities 597,000 110 [1965292] 113,653,019 Guarantee legitimate 17,609,842 [196591129] 19659130]
      • 19659309 ] deferred revenue long-term 234,801 1,373,147 [1965912] 200.0 short-term debt 17,844,653

        17,988,351 [19659327] 2,620,298 Complete money owed 614,844,75] [1965925] [1965925] 19659255] 19493139] SHAREHOLDERS SHARES: . 19659389] Collection A Atypical Shares 83,120 83,218 12,122 Class B of Class B ]. 12,839 1,870 further invested capital 1,717,483,548 [196591858] Collected Different Loss (22,786,922 ) (22,563, 727 ) (three,286,778) amassed deficit (1,124,385,539 ) (1,061,421 93] 154,613,537 ) Complete fairness 570,407,046 ] 639,567,092 93,163,451 [1965919] [1965919] ] Complete debt and equity 1,185,251,799 1,437,783,413 [1965936568] 19659046] NIU TECHNOLOGIES UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (LOSS) / PROFIT three months ended June 30, [19659046] Six months ended June 30, 2018 2019 2018 2019 . ] RMB RMB US Greenback RMB RMB US Greenback Turnover 384,256,352 530,505,579 276,851 557,079,276 885,725,279 [1965/196] [1962] [1962]] (326337890) ] (405017981 ) (58997521 ) (477185072 ) (684565875 ) (99 718 263) ] gross profit 57,918,462 125,487,598 18,279,330 [1965912] [19659129] 19659130] 201,159,404 29,302,189] 19659043] [19651919] [196519191] [19651919]. expenses: gross sales and advertising bills (a) (50,968,566] 19659096] (47040468 ) (6852217 ) (70229372 ) (76862661 ) (19659096) Research and improvement prices (a) (45,937,014 ) (16,703,606 ) (2,433,155 ) [19650848] [1965045] ) (31,zero36,186 ) (4,520,930 ) Basic and administrative expenses (a) (214,694,495) ) . (19157, 409 ) (2790591 ) (233317120 ) (39816129 ) (5799873) Working loss (loss) / revenue (253,681,613 ) 42,586,115 6,203,367 (1969, 1969 [1969] ]] 53,444,428 7,785,059 Convertible – – – (34,499,858 ) 19659096] .] – Curiosity Prices (1,983,012 ) (2,596,692 ) (378,251 ). ]) [19659128] (5,004,325 ) (728,962 ) interest revenue 957,069 5,682,101 [1965] 1969 [1969] [1965] ] 1,328,689 9,807,450 428,616 return on investment 728,440 [1969199] [1969199] ] 1,204,590 [723 456] 1,1965,9145] 19659188] 251,581 Foreign money trade positive aspects / (losses) [1965] [1969] 19659128] 1586288 231069 19659188]) (779328 ) (113522 ) government grants 26700 2530930 19659135] 1111100 3777930 [19659174] 550 318 (loss) / revenue earlier than tax (252,986,929) 19659096] 50,998,zero11 [19659096] 7,428 19659128] (314,869,828 ) 62,973,260 9,173,090 Revenue tax expense – ) – (9655 ) (1 406 ) Internet (Loss) / Revenue 19659254] (252 986 829 [19659359]) 50,981,395 7,426,278 (314,869,828 [1965925] [1965925]] 9,171,684 ] [1965909] other complete revenue / (losses) ] Foreign money Change Price Conversion (13,967,724 ) 11,761,823 1,713,303 ) 174,921 25,480 [19659043] available-for-sale securities. (Reclassified). 245777 83079 12102 101112 48274 703291945] losses) / revenue (266,708,776 ) 62,826,297 9,151,683 [1965905] [1961595] [19659595] [1945902] 19659138] 63 186 800 9,204 196 internet (loss) / earnings per share [19659191] ] – Basics (6.175 ) zero.343 zero.zero50 (eight.456 ) zero.423 zero.423 ] 0.062 -Diluted (6,175 ) zero,333 zero,048 (eight,865]) ) 0.411 0.060 [19659043] internet revenue from ADS . 19659191] – base – zero.685 19659046] – zero.847 0.123 -Diluted – zero.665 zero.665 ] zero.097 – [19659129] 0.823 zero.120 . Weighted Average Variety of Shares Used for Calculating Internet Loss / Return – Basis 40,971,443 ] 148748978 148748978 -Diluted 40971443 153302652 19659188] 19659188] 19659044] 37 234 327 153 zero16 518 153 016 518 [1965/595] [1965/595] -Primary 74411538 74411538 [19659129] – 74374489 74374189] 19659096] – 76651326 [19659129] 76,651,326 – [19659188] 76,508,259 76,508,259 19659460] Word: (a) Consists of share-based compensation prices as follows: [19659365]                  Three months ended June 30 ,   Six months ended June 30, 2018    2019     2018 [19659090]  2019     RMB   RMB US$   RMB    RMB US$ Value of revenues 60,271     75,045   10,932[19659188]    120,433     137,769   20,068   Promoting and advertising bills 537,319     1,010,420   147,184     1,024,365     1,709,163   248,968   Research and improvement expenses 36,844,965     447,zero13   65,115     40,117,972     871,928   127,011   Basic and administrative expenses 181,645,512    [19659173]1,605,466   233,862     192,684,133     three,057,794   445,418   Complete share-based compensation 219,088,067     3,13 7,944   457,093     233,946,903     5,776,654   841,465                      
        NIU TECHNOLOGIES
        RECONCILIATION OF GAAP AND NON-GAAP RESULTS
                           
          Three months ended June 30,   Six months ended June 30,
          2018    2019   2018    2019
          RMB    RMB US$   RMB    RMB US$
        Internet (loss)/revenue (252,986,829 )   50,981,395 7,426,278   (314,869,828 )[19659638]  62,963,605 9,171,684
        Add:                  
        Share-based compensation 219,088,067     three,137,944 457,093   233,946,903     5,776,654 841,465
        Change in truthful worth of a convertible mortgage       34,499,858    
        Adjusted internet (loss)/revenue (33,898,762 )   54,119,339 7,883,371   (46,423,0 67 )   68,740,259 10,013,149
                           

        ____________________________

        1 Adjusted internet revenue/loss (non-GAAP) is outlined as internet revenue/loss excluding share-based compensation expenses and alter in truthful value of a convertible mortgage.
        2 Adjusted internet revenue/loss margin is defined as adjusted internet revenue/loss as a proportion of the revenues.