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Niu Technologies – ADR (NASDAQ:NIU) Continues to Show Growth in Chinese E-Scooter Market

Niu Technologies – ADR (NASDAQ:NIU) just hit the wires with its Q3 data, and we wanted to take a look given the implications for Chinese green and efficiency technology investment and demand. The company produces electric scooters. According to its release, the number of e-scooters sold reached 120,961 in the third quarter of 2018, up 76.3% year over year.

In addition, the company’s sales network in China expanded to 215 city partners and 642 franchised stores as of September 30, 2018, its sales network in overseas markets expanded to 20 distributors covering 25 countries as of September 30, 2018, the company launched a new e-scooter model “UM” and new service “Niu Care”, they started to plan for new production facility in Changzhou, China, and also launched the McLaren GT Customer Racing co-branded limited edition smart e-scooters in August 2018.

Niu Technologies – ADR (NASDAQ:NIU) bills itself as a company that designs, manufactures, and sells smart e-scooters in the People’s Republic of China. It offers N, M, and U series e-scooters with various models or specifications under the NIU brand name.

The company sells and services its products through city partner system, as well as through own online store and third-party e-commerce platforms. As of June 30, 2018, it operated through 205 city partners with 571 franchised stores in approximately 150 cities in the People’s Republic of China, as well as 18 distributors in 23 countries internationally.

The company was founded in 2014 and is headquartered in Beijing, the People’s Republic of China.

According to the company’s materials, “As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance smart e-scooters. NIU has a streamlined product portfolio consisting of three series, N, M and U that address the needs of different segments of the modern urban resident, while being united through a common design language that emphasizes style, freedom and technology.  NIU has adopted an omnichannel retail model, integrating the offline and online channels, to sell its products and provide services.”


Just Ride

As we discussed earlier, NIU recently announced its Q3 data, putting out net revenues of RMB493.2 million, an increase of 86.1% year over year. In addition, gross margin was 12.4%, up from 8.8% for the third quarter of 2017, net loss for the third quarter of 2018 was RMB2.2 million, improved by RMB37.1 million compared with net loss of RMB39.3 million in the third quarter of 2017, and adjusted net income (non-GAAP) was RMB4.9 million, improved by RMB16.5 million compared with adjusted net loss of RMB11.6 million in the third quarter of 2017.

The stock has suffered a bit of late, with shares of NIU taking a hit in recent action, down about -2% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 13% in that time on strong overall action.

Dr. Yan Li, Chief Executive Officer of the Company, commented: “NIU delivered a solid third quarter with impressive financial and operational results. We continued the strong revenue growth and generated positive adjusted net income for the first time. We expanded our product line with the new UM entry-level e-scooters, and we started to plan for a new production facility.”

Niu Technologies – ADR (NASDAQ:NIU) is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($87.4M against $94.3M, respectively).

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