‘Recovering year’— NIU Technologies says it will turn profit this year


NIU Technologies (NIU) — a Chinese manufacturer of electric motorcycles, mopeds, scooters, and bicycles — expects to turn a net profit in the second quarter, according to its latest earnings report.

In the final quarter of 2024, NIU stock raked in 819.2 million RMB ($113.3 million) in revenue, a healthy year-on-year rise of 71%. The stock rallied 29% on the news, closing at $3.51 in Monday’s trading session.

One figure that tempered investors’ enthusiasm was the shrinking gross margin. Last year, NIU’s margin stood at 12.4%, compared with 19% over the same period 12 months ago.

Despite rising costs, NIU argues it is continuing to narrow net loss margins as it strives to achieve profitability.

When asked when this might happen, NIU's CFO Zhou Wenjuan said, "We expect to see the quarterly profit in the second quarter, which means from April to June, those three months, we will get the quarterly profits this year."

She went on to describe 2025 as a "recovering year," saying this period will be significant for NIU's financial performance.

"It will contain around 25% to 30% of the revenue each year," Zhou added. "And also for the international market, in the second quarter, no matter the weather or the logistics."

The CFO said both domestic and international markets alike are "on track" to perform well in Q2, despite the potential headwinds posed by an escalating trade war between Washington and Beijing.

That doesn't seem to have slowed NIU's growth just yet.

E-scooter sales across China hit 226,634 in Q4 — a 64.9% rise compared with the same period in 2023. There was a similar percentage bump across the 53 international markets where the manufacturer currently operates.

NIU attributes part of that success to "strategic partnerships" with the likes of Best Buy. Last summer, "a large-scale retail expansion" meant NIU's models became available across 800 of its U.S. stores.

But here's the problem: China is the "number one" source for the products that this chain sells. In its own earnings call earlier in March, it warned that "price increases for American consumers are highly likely" in the months ahead.

The company claims that it has close to 1.4 million active riders on a daily basis, who have collectively driven more than 28.1 billion kilometers.


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