Niu Stock Slides As China E-Scooter Boom Fails To Offset Weak Overseas Sales, Mixed Q3 Outlook

Chinese electric scooter company Niu Technologies – ADR (NASDAQ:NIU) stock initially dropped on Monday after it reported its second-quarter results.

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Niu reported second-quarter revenue growth of 33.5% year-over-year to $175.29 million (1.26 billion Chinese yuan), driven by a 36.7% increase in sales volume. This was partially offset by a 2.3% decrease in revenues per e-scooter.

Adjusted EPADS of 2 cents compared to 4 cents a year ago.

Also Read: Niu Clocks 57% e-Scooter Sales Surge, But Tariffs Impact Margins

The number of e-scooters sold was 350,090, up 36.7% Y/Y.

The number of e-scooters sold in China was 318,719, up 53.6% Y/Y.

The number of e-scooters sold in the international markets was 31,371, down 35.5% Y/Y.

The number of franchised stores in China was 4,304 as of June 30, 2025.

As of June 30, 2025, its international sales network had 57 distributors covering 53 countries.

E-scooter sales revenues from the China market were 1.06 billion Chinese yuan, an increase of 45.4% Y/Y, representing 91.1% of total e-scooter revenues. The increase was mainly due to a significant increase in sales volume, partially offset by a slight decrease in revenues per e-scooter in the Chinese market.

E-scooter sales revenues from international markets were 103.1 million Chinese yuan, a decrease of 20.9% Y/Y, and represented 8.9% of total e-scooter revenues. The decrease was mainly due to the decline in sales volume and revenues per e-scooter of kick-scooters in international markets.

Accessories, spare parts sales, and services revenues were 95.7 million Chinese yuan, an increase of 15.3% Y/Y, representing 7.6% of total revenues. The increase was mainly due to increased accessories and spare parts sales in China.

Revenues per e-scooter were 3,587 Chinese yuan, a 2.3% Y/Y decrease mainly due to decreased revenues per e-scooter in the China market, partially offset by increased revenues per e-scooter in international markets.

Gross margin expanded to 20.1%, up from 17% a year ago, mainly driven by a higher proportion of e-scooter sales and an improved gross margin in the China market, reflecting the positive impact of its cost-reduction initiatives.

Niu held 1.23 billion Chinese yuan as of June 30, 2025.

CEO Dr. Yan Li said during China's e-commerce peak season in May and June, the company's products ranked among the top-selling mid- to high-end electric bicycles and motorcycles. New models launched in the first half of 2025 featured enhanced intelligence and functionality, underscoring the company's focus on smart technology, he noted.

In overseas markets, electric motorcycle sales steadily recovered in the first half of the year, aligning with the company's international strategy, Li noted. However, sales in the micromobility segment declined amid ongoing geopolitical and economic uncertainties, he added.

Outlook: Niu expects third-quarter revenue of 1.433 billion Chinese yuan-1.638 billion Chinese yuan, up by 40%-60% Y/Y.

Niu stock gained over 111% year-to-date.

NIU Price Action: NIU shares closed Monday up by 1.85% at $3.85 on Monday at publication.

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