By XU Shiqi
Electric scooter maker Niu released its Q2 financial report Monday, with revenue of 829 million yuan (about US$130 million), almost the same as last year. The net loss was 1.9 million yuan, much worse than last year's profit of 14.4 million yuan in the same period. The gross margin reached a historical high of 23.1 percent.
The figures are better than the previous quarter, with a net loss of 60.3 million yuan.
In terms of sales, Niu sold 212,000 scooters in Q2, a year-on-year increase of just 3,000. The domestic market slightly decreased to 179,000 units, while the international market grew by 17.1 percent to 33,000.
Niu is in trouble in the domestic market, with sales heading deeper down every quarter. The company's strategy of offering higher-end products was offset by competitors Yadea and Aima doing likewise. This has put prices up and Niu is struggling to convince.
In international market sales, the primary driver is the lower prices. As a result, overseas revenue has decreased.
Marketing expenses increased to 110 million yuan, compared to 92 million yuan in Q2 2022, mainly due to expansion overseas. Marketing expenses accounted for 13.2 percent of revenue, compared to 11.2 percent a year ago.
During a conference call, the management summarized the performance as "a mix of joys and sorrows." The main challenges include an economic slowdown in Europe and gaps in the product lineup. Niu plans to launch swappable battery scooters in SE Asia in the second half of the year.
