NIU has just released its Q2 2020 financial report, indicating that the company has continued its strong recovery after suffering early setbacks from COVID-19 pandemic.
NIU has been on a tear this year, quickly shirking off the initial drop in sales in Asia following the beginning of the COVID-19 pandemic.
The Beijing-based electric scooter company has shown a 134% increase in its stock price since the beginning of the year.
The company’s Q2 2020 financial report showed revenue of $91.29 million, which was a year-over-year increase of 22% with an earnings-per-share of 10 cents.
That Q2 revenue didn’t quite reach the earnings expectation of $96.78 million, but did exceed the expected earnings-per-share of 9 cents.
China represents NIU’s largest market by far, and the electric scooter manufacturer managed to increase sales in China by 81% year-over-year.
China has seen a much faster economic return after the COVID-19 pandemic, due in large part to its heavy-handed response to snuffing out the pandemic locally via strict lockdowns.
While the economy might not be entirely back to where it was pre-pandemic, the growth of electric scooter sales in China has benefited from both the return towqrds normalization and the increased importance placed on socially distant forms of transportation such as electric scooters.
NIU’s international sales, which account for around 10% of the company’s sales, have not recovered nearly as quickly as the company’s domestic sales.
As NIU CEO Yan Li explained:
“We are very pleased to see the strong recovery in China. Our China sales volume increased by 81% year over year driven by retail network expansion and new product launches.
Our international sales decreased in the second quarter due to the continued impact from COVID-19. Since May, our overseas dealer shops gradually reopened and we expect to see recovery in the coming quarters.”
NIU has had a number of successful launches for new electric scooters and electric bicycles in China recently.
The company also has exciting new products in development, including a three-wheeled electric scooter and a 100 mph (160 km/h) electric motorcycle. Production and deliveries of both new high-power electric vehicles were expected to begin by the end of this year, but the COVID-19 pandemic has stretched that timeline and it remains unclear when the vehicles will be released.
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