U.S.-Listed Chinese Electric Scooter Maker Niu Rides to Higher Profits
U.S.-listed Chinese electric scooter maker Niu Technologies saw both their revenue and profits grow in the third quarter as the startup sold significantly more products globally.
During the period between July and September, six-year-old Niu generated 894.5 million yuan ($131.7 million) in total revenue, representing a year-on-year increase of 36.7%, and sold 250,889 electric scooters globally, up 67.9% compared to a year ago, according to its latest earnings report released on Monday.
Sales of electric scooters in its home market of China and overseas reached 740.8 million yuan and 59.6 million yuan respectively, with the rest of the total revenue coming from sales of accessories and spare parts.
The company’s net profit climbed to 80 million yuan compared with a 66.4 million yuan net profit a year ago, which was not only attributed to quarterly sales growth but also to lower sales and market spending, which dropped 11% year-on-year to 50.8 million yuan in the third quarter.
Niu is among a group of Chinese startups that are aggressively seeking opportunities in overseas markets with a focus on Europe. According to CEO Li Yan, Niu plans to launch a new product in the Indonesian market in the fourth quarter as part of efforts to further expand into overseas markets, which Li hopes could contribute 50% of the company’s sales in the near future.
The healthy results however failed to please investors as Niu’s Nasdaq-listed stock closed down 9.1% at $32.48 on Monday.