NIU Q4’s financials show strong electric vehicle sales, with revenue up 40%
NIU, an electric-car maker in Beijing, has shown impressive growth quarter after quarter.The company's fourth-quarter financial report, just released, continued that trend with record sales and revenue figures.
NIU's Q4 2019 Earnings Summary
NIU had a 13.5% increase in its total electric vehicle sales in the fourth quarter of 2019 compared with the fourth quarter of 2018.
Revenue in the fourth quarter of 2019 increased 25.4 percent from the fourth quarter of 2018 to 536.1 million yuan ($76.4 million).
The revenue resulted in a net income of 60.7 million yuan ($8.65 million) for the fourth quarter of 2019.The net loss for the same period last year was 32 million yuan ($4.6 million).
The company's gross margin was 26.1% in the fourth quarter of 2019, compared with 13.5% in the fourth quarter of 2018.
Summary of NIU's full-year earnings in 2019
The total sales of NIU electric cars in 2019 increased by 24.1 percent compared with 2018.
The company's revenue rose 40.5 percent year on year to 2.076 billion yuan ($296 million).
This resulted in a net income of 190.1 million yuan ($27.1 million) in 2019, compared with a net loss of 349 million yuan ($49.7 million) in 2018.
According to Yan Li, CEO of NIU:
We achieved solid revenue growth and improved gross margins.The company continued to be profitable.Our revenue growth rate was 25.4%, well above our initial expectations.We are pleased to see continued strong demand for our products.Thanks to higher selling prices, a better product mix and continued cost reduction efforts, we achieved a record gross margin of 26.1%.In the first quarter of 2020, the COVID-19 outbreak severely impacted our sales and operations.We have taken positive measures to mitigate the impact.We are pleased to see the positive trends of the past few weeks.
In December 2019, we opened our new manufacturing facility in Changzhou.The new plant covers about 75 acres and is designed to produce 700,000 units a year.We are very excited about the growth prospects of our business and are committed to expanding our production capacity to meet growing demand.In January 2020, we attended the Consumer Electronics Show in the US and announced two new products, namely the Urban Performance Electric Motorcycle QI-GT and our first electric tricycle QI-GT.We are very excited about our rich product portfolio and look forward to continued growth of our business."
Rqi-gt and QI-GT are two of the biggest news from NIU recently.The QI-GT is a powerful electric scooter with speeds up to 100 MPH (160 km/h), while the QI-GT is a covered, tilting three-wheeled electric scooter with a top speed of 50 MPH (80 km/h).
Both will expand into new areas with NIU's development, allowing it to run larger, faster and more powerful electric cars with intercity travel and highway speeds.
NIU also launched new versions of its popular scooters, such as the updated NIU Nqi-GTS Sport, which is 44 MPH (70 km/h), and the moderately priced Gova series scooters.
NIU has even launched a new electric bike model, as it continues to beef up its product offering a range of alternatives to traditional cars for commuters.