Beijing-based electric scooter manufacturer NIU has shown impressive growth quarter after quarter lately. The company’s Q4 financial report was just released, continuing the trend with all-time high sales and revenue figures.
NIU’s Q4 2019 earnings highlights
NIU saw its Q4 2019 total volume sales of electric scooters increase by 13.5% compared to Q4 2018.
Revenue in Q4 2019 increased by 25.4% over Q4 2018, reaching RMB 536.1 million (US$76.4 million).
That revenue resulted in a net income of RMB 60.7 million (US$8.65 million) for Q4 2019. The same period in the previous year saw a net loss of RMB 32 million (US$4.6 million).
The company’s gross margin for Q4 2019 was 26.1%, compared to just 13.5% in Q4 2018.
NIU’s full year 2019 earnings highlights
Compared to 2018, NIU saw a 24.1% increase in total volume sales of electric scooters in 2019.
The company’s revenues were up 40.5% year over year for a total of RMB 2.076 billion (US$296 million).
That resulted in a net income of RMB 190.1 million (US$27.1 million) for 2019, compared to a net loss of RMB 349 million (US$49.7 million) in 2018.
According to NIU CEO Yan Li:
We delivered a solid revenue growth and improved gross margin. The company continued to operate profitably. Our revenue growth rate was 25.4%, well ahead of our initial guidance. We are pleased to see the continued strong demand of our products. We achieved a historically high gross margin at 26.1%, benefiting from the higher sales price, better product mix and continued cost cutting efforts. In the first quarter of 2020, the COVID-19 outbreak adversely affected our sales and operation. We have taken proactive measures to mitigate the impact. We are pleased to see the positive trend in the past few weeks.
In December 2019, our new manufacturing facility at Changzhou commenced operation. The new facility covers about 75 acres and has a designed capacity of 700,000 units per annum. We are very excited about the growth perspective of our business and are committed to expand our production capacity to meet the increasing demand. In January 2020, we attended the Consumer Electronics Show in the US and launched two new products, the RQi-GT, an urban performance electric motorcycle, and the TQi-GT, our first electric three-wheeler. We are very excited about the enriched product portfolio and look forward to the sustaining growth of our business.”
The RQi-GT and the TQi-GT were two of the biggest pieces of news from NIU lately. The RQi-GT is a powerful electric motorcycle capable of 100 mph (160 km/h) speeds, while the TQi-GT is a covered, tilting three-wheeled electric scooter with a top speed of 50 mph (80 km/h).
Both are set to expand NIU’s operations into new territory as it develops larger, faster, and more powerful electric vehicles capable of intercity travel and highway speeds.
NIU has even introduced a new electric bicycle model as it continues to flesh out its product offering to provide commuters with a range of alternatives to conventional cars.
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