Q3 2023 Niu Technologies Earnings Call
Okay.
Speaker 1: Good day, ladies and gentlemen. Thank you for standing by and welcome to the New Technologies Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording through the day call.
Good day, ladies and gentlemen, thank you for standing by it have all come to the new technologies third quarter 2023 earnings conference call at.
At this time, all participants are in listen only mode.
We will conduct a question and answer session and instructions will follow at that time.
As a reminder, we are recording for today call.
Speaker 1: If you have any objections, you may disconnect at this time. Now I would like to turn the call over to Ms. Chrystia Lee, Investor Relations Manager of Meme Technologies. Ms. Lee, please go ahead.
Do you have any objections you may disconnect at this time now I would like to turn the call over to MS. Chris Chung Li Investor Relations manager of technologies, Italy. Please go ahead.
Speaker 2: Thank you operator. Hello everyone. Welcome to today's conference call to discuss new technologies resolved for the third quarter 2020.
Thank you operator, Hello, everyone welcome to today's conference call to discuss the newer technologies.
The third quarter 'twenty to 'twenty three.
Speaker 2: The earnings press release, corporate presentation, and financial spreadsheet have been posted on our investor relations web.
No.
Corporate presentation and financial spreadsheet.
Our Investor Relations website. This call is being webcast from companies.
Speaker 2: This call is being webcast from companies IR CETA as well. And the replay of the call will be available.
Wow.
Plenty of the call will be available.
Speaker 2: Please note, today's discussion will contain forward-looking statements made under the safe helper provision of the U.S. Private Security period Act of 1995.
Please note today's discussion will contain forward looking statements.
How 'bout publisher after.
The Securities Litigation Reform Act.
Speaker 2: forward-looking statement involves risk, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed.
85.
So stay tuned.
Risks uncertainties assumptions and other factors.
Company's actual results may be materially different from those expressed today.
Speaker 2: Further information regarding the risk factors is included in the company's public following with the security and needs to change.
Further information regarding this.
Included in the company's public.
Yeah.
Speaker 2: The company does not assume any obligation to update any forward routine statement except as required by law.
Sure.
The company does not assume any obligation to update any forward looking statement, except as required by law.
Speaker 2: Our earnings press release and this call include discussion of certain non- GAAP financial matters.
All of our earnings press release and this call.
For discussion of certain non-GAAP financial measures.
Speaker 2: The press release contained definitions of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial reforms.
The press release.
non-GAAP financial measures.
GAAP to non-GAAP financial measures.
Speaker 2: On the call with me today are our CEO , Dr. Yan Li, and CFO , Ms. Fiong Zhou. Now let me turn the call over to CEO Yan.
On the call with me today are our CEO Dr.
CFO Mr Young.
Now, let me turn the call over to <unk>.
Yes.
Speaker 3: Thank you, everyone, for joining us on the call today. In Q3 2023, our total sales volume was 265,923 units, with a year-over-year decrease of 71%.
Thank you everyone for joining us on the call today in Q3 2023, our total sales volume was 265923 units with a year over year decrease about 71%.
Speaker 3: Specifically, sales volume in the China market had a year-over-year drop of 12% to 230,445 units, and sales volume in the overseas market experienced a year-over-year of 38% decrease to 35,468 units.
Specifically it feels boiler in the China market, how that year over year drop off 12% to 230000 on a 445 units and it feels warm in the overseas market experienced a year over year of 38% decrease to 35468 units total revenue in Q3 2022 was RMB 927 million.
Speaker 3: Total revenue in Q3 2023 was RMB927 million, decrease of 19% year-on-year.
Decrease of 19% year over year.
Speaker 3: In the China market, during Q3, we encountered setbacks due to sluggish consumption in top tiers.
In the China market during Q3, we encounter setbacks due to a sluggish consumption in top tier cities.
Speaker 3: resulted in a slowdown in sales for our product. To address this challenge in Q3, we expand our product portfolio with a diverse design functionality to address the wider customer.
The slowdown in sales of our product to address this challenge in Q3, we expanded our product portfolio with the diversifying functionality to address a wider customer needs.
Speaker 3: And with the diversified product portfolio, we plan to expand our retail coverage for greater market reach in Q4 2023 and beyond.
With a diversified product portfolio, we plan to expand our retail coverage for creative Mark Rich in Q4 2022 and beyond.
Speaker 3: In the overseas electric tool market, we have experienced a year-on-year decline of 62 percent, influenced by a combination of challenging factors. The decline in the electric tool market in our key markets, Germany and the Netherlands, has impacted our...
In the overseas electric toilet market, we have experienced a year over year decline of 62% excellence by combination of challenging factors the decline in the electric tool in marketing, our key market, Germany, and Netherlands has impact our business.
Speaker 3: Additionally, we have also faced a temporary disruption in the key European markets due to operational difficulty faced by our distribution partner, which has further affected our sales performance in this period.
Additionally, we have also faced temporary disruption in the key European markets due to operational difficulties faced by our distribution partner, which has further affected our sales performance in this period.
Speaker 3: In response to those challenges we have encountered, we have implemented two strategic adjustments, expanding the process.
In response to the challenges we have encountered implement two strategic adjustment.
Expanding the product portfolio to <unk>.
Speaker 3: expand our addressable market and operational adjustment to resolve the temporary disruption. We introduced key electric motorcycle and off-road motorcycle products to the European and North American markets to expand our addressable market beyond the electric market.
Our addressable market and operational adjustment Twitter yourself with temporary disruption, we introduced key electric motorcycle and offer a motorcycle product to the European and North American market to expand our addressable market beyond the electric more pet food.
Speaker 3: For the South Asia market, we have officially introduced the battery swapping solutions with compatible swap batteries and mopeds. Operationally, we are also working with our distribution partners and retail partners closely to revamp the retail operations in the key markets.
The southeast Asia market will have officially introduced the battery swapping solutions with compatible swapped batteries at a more pets.
Operationally, we're also working with our distribution partner retail partners closely to rent the retail operation in our key markets.
Speaker 3: The overseas micro-mobility market has seen a year-over-year decrease of 37% in sales. This downturn is primarily attributed to the sell-in order delays in Q3. Despite the decline in the sell-in volume, we recorded the highest number of kick scooter activations in this quarter. The number of activations in Q3 showed a significant year-over-year increase of 80%.
The overseas micro mobility market has seen a year over year decrease of 37%.
This downturn is primarily attributed to the cell in order delays in Q3, despite the decline the sell in volume we recorded the highest number I'll kick scooter activation. This quarter. The number of Activations in Q3 show a significant year over year increase of 80%.
Speaker 3: This increase in product activation can be largely attributed to our comprehensive product portfolio and expansion of our sales network, both online and offline in the key market channels.
This increase in product activation can be largely attributed to our comprehensive product portfolio and especially on the sales network, both online and offline in the key market channels.
Speaker 3: In addition, during Q3, we launched an innovative KQI ART scooter for pre-sales, which has been well-received in the market. We're continuously working on expanding our sales channel penetration, aiming to reach a broader customer base and reinforce our market presence. We expect to get back to the growth track in the coming quarters in time for the holidays.
During Q3, we launched our innovative kick you out Erik Scooter for pre sales, which has been well received in the market. We're continuously working on expanding our sales channel penetration aiming to reach a broader customer base and reinforce our market presence, we expect to get back to the growth track in the coming quarters in time for the holiday season.
Speaker 3: Now let me delve into the China market in detail. In this quarter, we continue to build our product portfolio with a diverse design style and functionality to address a wider customer.
Let me delve into the China market details in this quarter, we continue to build our product portfolio with the diverse defined stylus functionality to address a wider customer needs.
Speaker 3: We introduced Q2 2023, the MQL, emerged as a successful edition of our product lineup. It is a product that inherits the design from our old-time classic M-series, along with the significant upgrade in design.
We introduced Q2 2023, I'm sure al emerge that successful additional our product lineup is proud of that he hurts the destocking from our all time classic M series, along with the significant upgrading designed performance. It has not only contributed positively to our sales volume, but also plays a significant role in enhancing our brand image.
Speaker 3: It has not only contributed positively to our sales volume, but also played a significant role in enhancing our brand image.
Speaker 3: In Q3, we also successfully introduced the Falcon series as a new style with the launch of F400T and F200, complementing the previous introduction of F100 in Q3.
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In Q3 will also successfully introduced a cellphone serious that new style with the launch of our 400 TNF 200, complementing the permit you to do so.
100 in Q2 <unk>.
Speaker 3: Collectively, the entire Falcon series accounted for more than 50% of our total sales in this quarter in Q3.
Collectively the entire cell kind of serious accounted for more than 50% of our total sales in this quarter in Q3.
Speaker 3: The Funko series represents our attempt to create another flagship design with its proven popularity. We plan to roll out more products in the newly introduced series in the coming quarter.
Cause serious represent our attempt to create another flagship design, which has proven popularity we plan to roll out more product within the newly introduced series in the coming quarters.
Speaker 3: The F400T was introduced in August this year as a remarkable addition to our Falcon series product lineup. This electric bicycle draws the inspiration from fighter jets and seamlessly incorporated new essential smart functionalities with a maximum range of 90 km.
So that's one or T was introduced in August this year at a remarkable addition to our Falcon series product lineup.
Electric bicycle inspire ratio from fighter Jets, and sympathy corporate at Newsy sexual tomorrow functionality, so cause the maximum range of Medici millimeters.
Speaker 3: The F400's design has captured significant attention since its launch. Notably, it took center stage at Chinatown, the country's largest gaming expo, garnered millions of views across all platforms.
435 has captured significant attention to this lunch, notably eight took center stage at the China Joy the country's largest gaming Expo garnered millions of viewers across all platforms. Another product added this theory in Q2.
Speaker 3: Another product added this series in Q3 was F200. It is released as a high-powered commuter scooters with a sports car inspired frame. It has the max range up to 70 kilometers and equipped with new smart.
200 is released at the high powered computer scooters with the sports card inspired to frame has the Max range up to 70 kilometers are equipped with new smart system.
Speaker 3: The F200 was also launched with a collaboration with a globally renowned IT co-founder.
That's 200 was also launched with the collaboration with our global original IP coconut.
Speaker 3: Our sales performance during the recent W11 Shopping Festival underscored the popularity of those recently launched products. In the first 24 hours of promotion period alone, the pre-order sales revenue surpassed the sum of the entire period last year, showcasing the robust demand for our products.
Our sales performance during the recent double 11 shopping festival underscore the popularity of those recently launched products in the first 24 hours of promotional tiered alone. The preorder sales revenue fill process some of the entire pyrrhuloxia showcasing that robust demand for offerings several of our key products that feature prominent positions on the best.
Speaker 3: Several of our key products have secured prominent positions on the best-selling list of major platforms, including Tmall and JD.com.
Hello list of major platforms, including Tmall and JD Dot com.
Speaker 3: Specifically, the latest iteration of our claim, SQI Electric Bicycles, has gained significant traction during the Double 11 Shopping Festival, emerging as the number one top-selling straddle electric bicycle in the RMB 9,000.
So basically the latest iteration of our claim as to our electric bicycles has gained significant traction during the double 11 shopping festival emerge as the number one top selling straddle electric bicycle.
RMB 9000 price range about on Tmall, and JD Dot com together, our UK life plus 200 I also ask you I had claimed top spots ranking within the top three best selling product in the electric bicycle categories on Piedmont. This highlight the strong customer preference across our diverse product range.
Speaker 3: price range above on Tmall and JD.com. Together, our UQI+, S200, and also SQI has claimed top spots ranking within the top three best-selling product in the electric bicycle categories on Tmall. This highlights a strong customer preference across our diverse product range.
Speaker 3: We remain highly engaged in events and cross-brand collaborations to enhance our brand exposures. In September , we established presence on the G-Fusion Gaming Fest 2023, where we brought our F400 to the gaming enthusiasts. We recently forged an official partnership with JD Gaming, one of China's top esports teams, and a finalist in the League of Legends World 2023.
We have.
We remain highly engaged in events and cross brand collaboration to enhance our brand exposures in September we established a presence on the Chi fusion game first 2023, where we brought our at 400 to the gaming. These suits that we recently forged our official partnership with JD gave me wealth that China's top esports teams Santa.
Finalist in a league of legends or 2023.
Speaker 3: Those engagements underscore our commitment to establish a strong brand presence and the fortune connections with diverse audience even in the face of temporary market challenges. We're confident that those initiatives will contribute significantly to our brand exposures and long-term growth prospects.
Those engagement underscore our commitment to establish a strong brand presence and unfortunate connections with diverse audience. You mean, the phase out temporary market challenges, we're confident that those initiatives will contribute significantly to our brand exposures and long term growth prospect.
Speaker 3: Now turning into international electric moped market, we face the challenge in this quarter with the euro year decline in the electric moped sales accounts for 62%. Several factors converge created this downturn including the decline of the electric moped market in the key European countries like Germany and Netherlands and the temporary operation disruption due to issue encounter about distribution partner in Europe .
Now I'll turn it into international electric.
Pet market, we face the challenges this quarter with a year over year decline in electric mortgage sales account for it.
62% several factors converge created this downturn, including the client electric multi market in the key European countries, like Germany, and Netherlands, and temporary operational disruptions due to issue in counter about distribution partner in Europe.
Speaker 3: While we acknowledge those challenges, we are actively engaged in addressing them and regaining traction in this market.
While we acknowledge the challenges we're actively engaged in addressing them breaking the traction in this market.
Speaker 3: First, we expand our product portfolio beyond electric mopeds, widening our addressable market.
First we expanded our product portfolio beyond electric more pets widening our addressable markets. We have unveiled several key product ready for Q4, 2023, and 2024 I come up in November one key product that we review with ex <unk> III electric dirt bike it a design with a futuristic look with the handful of choice aluminum frame.
Speaker 3: We have unveiled several key products ready for Q4 2023 and 2024 at ECMA in November . One key product that we revealed was XQi3 electric dirt bike. It is designed with a futuristic look with a handful of choice aluminum frame colors integrated with new signature halo light. We have revealed the XQi3 product during the ECMA in Milan, Italy in November and also brought it to the Electrify Expo launch event in Austin, United States.
Colors integrate with new signature Halo light will have revealed the ex Q3 product given the ecmo in Milan, Italy.
November and also product to the electrified export launch event and after the United States.
Speaker 3: The XQi3 Markov expansion into the dirt bike categories and the new XQi3 has attracted a tremendous amount of attention within only a week since its debut. The XQi has won the 2023 Gold winner of the New York Product Design Award.
So thanks to Mark our expansion into the dirt bike categories, and then you execute well you had the track tremendous amount of attention within the only weeks since it debuted the extra has won the 2023 gold winner of the New York product Design Awards.
Speaker 3: We anticipate making the XQI3 model available to the North America and the European market in Q1 2024, and we're confident that it will bring up the sales and therefore uplift the new spread recognition.
Anticipate making the extra that we model available to the North America and the European market in Q1, 2024, and we are confident that will bring up the sales and therefore uplift that new spread recognition.
Speaker 3: Another product we launched for Europe is the RQi, new high-performance urban quad electric motorcycles. It is designed to deliver exhilarating city rides with features like dual removable batteries and ABS. With a top speed of 110 kmph and 0-50 kmph acceleration time just under 2.9 seconds, the RQi is targeted at riders for exciting acceleration experiences.
Another product we launch for Europe, it's our through our new high performance urban electric motorcycles.
Designed to deliver exhilarating CD write it with features like two removable batteries and Aps with a top speed of 110 kilometer power in <unk> to 50 kilometer power acceleration time, just under the 2.9 seconds. The <unk> targeted writers flicks exciting exploration experience.
Speaker 3: The motorcycle is equipped with the integrated traction control system, built-in front and rear cameras, and the impact detection system, making it sophisticated. And it's also a safe riding option. It also comes with NIO's core smart features.
The motorcycle it's equipped with integrated traction control system beauty from rear cameras, and the impact detection system, making a sophisticated and its also a safe riding option.
Also comes with News Corps Smart features.
Speaker 3: The RQI is expected to be available from Q1 2024 in Europe .
Yes.
There are two I expect to be available from Q1 2014 Europe.
Speaker 3: During ECMO, we also brought the award-winning XQI to the international market. It features a futuristic design that earns the 2023 Red Dot Best of Best Design Award.
I can I'll also brought a woman named <unk> to the international market futures that feature.
Futuristic design that earns that 2023 wrapped up desktop as steep outward.
Speaker 3: The bike features a die-cast unibody frame with 0-1000 joint, ensuring seamless integration of form and functions. It offers easy handling, making it ideal for city commuting.
<unk> features the Dicast body frame with zero southern joined ensure seamless integration of form and function.
Easy handling, making it ideal for CD commute.
Speaker 3: Now, in addition to those electric motorcycle products, we officially launched the new battery swapping solutions compatible with the newly launched S600 eMoped. The swapping technology enables riders to swap batteries quickly, reducing downtime, and increase the convenience. During ECMA, we have presented new swap cabinets that technical solution provider collaborating with partners in Europe , Southeast Asia, and South America to deploy the battery swapping cabinets aiming to enter the respective local market.
Okay.
In addition to those electric motorcycle product officially launched the new swap battery swapping solutions compatible newly launched a 600 <unk> more pets the.
The swapping technology enables radar to swap out or as quickly reducing downtime and increased convenience.
We have presented a new sop cabinets that technical solution provider collaborating with partners in Europe, Southeast Asia, and South America to deploy the battery swapping cabinets aiming to enter their respective local markets.
Speaker 3: Now the recent ECMA event presented us an opportunity not only to unveil our latest product, but also engage in meaningful conversations with our key distribution and retail partners. We're actively working with our distribution partner to quickly resolve temporary operation disruptions and get back on the growth trajectory.
The recent economic events presented us an opportunity not only to unveil our latest product, but also engaging in meaningful conversations with our key distribution and retail partners. We're actively working with our distribution partner to quickly resolve temporary operational disruptions and get back on a growth trajectory.
Speaker 3: Now, talking about the overseas micro-mobility market, the micro-mobility market has reported a 37% year-over-year decrease in sales in Q3. As mentioned earlier, the primary contributing factors due to a selling order delay in Q3, while the sell-off or activation volume has increased by 80% year-over-year, driven by a diverse product portfolio and expanding sales network.
Now talking about the overseas micro mobility market. The micro mobility, Mark has reported a 37% year over year decrease in sales in Q3 as mentioned earlier the primary contributing factors due to sell you already late Q3, while the cell or activation volume has increased by 80% year over year, driven by a diverse product portfolio.
Folio.
Speaker 3: During this quarter, we took a significant step in expanding our product portfolio by unveiling one of our standout kick scooter products, the KQi Air and AirX series at an IFA event in Berlin, Germany.
Expanding sales network.
This quarter, we took a significant step being spending our product portfolio by idling one of our standout kick scooter product the <unk> Air and Air X series at our <unk> event in Berlin, Germany.
Speaker 3: One of the standout features of a KQL Air is the construction, with the main body predominantly crafted from lightweight carbon fiber, resulting in an incredibly low weight of 11.7 kilos.
While the standout feature its application areas of construction with the main body predominantly crafted from lightweight carbon fiber, resulting in a quite a bit low way up 11 seven kilos.
Speaker 3: The weight reduction does not compromise performance. The KQi Air delivers impressive capabilities, including top speed of 32 kilometers per hour and a maximum range of 50 kilometers.
The way reduction does not compromise performance the Quechua air delivery.
Impressive capabilities, including top speed up 32 kilometer per hour and the maximum range of 50 kilometers.
Speaker 3: It also incorporates dual-action brake caliper to ensure its short braking distance for added safety. Moreover, the KQi Air embraces smart connectivity and enabling functions like NFC and Bluetooth unlocking, customizable charging capacity settings, speed adjustment, and also the regenerative braking strength.
It also incorporate to action brake caliper ensure its short breaking distance for added safety. Moreover, the kick you out here you've raised the smart connectivity.
<unk> functions like NFC, and Bluetooth unlocking customizable charging capacity settings be adjustment and also the regenerative braking strength.
Speaker 3: Notably, the KQi Air was awarded the Best of IFA 2023 by Gadget Match, a highly regarded tech channel. The KQi Air has MSRP of $1,400 for the standard version and $1,799 for the KQi Air X full carbon fiber version. We launched the pre-sale campaign on September , and we expect to deliver the KQi Air to our customer in December this year in time for the holiday.
Notably the <unk> Air was awarded the best of <unk> 2023 that Guy could match highly regarded tech channel the Cook Air.
<unk> thousand $500 for the standard version of $70 99 for the kick out Erik Ekstrom carbon fiber version, we lapsed the presale campaign on September and we expect to deliver the cakes are top customer in December this year in time for the holiday season.
Speaker 3: The launch of KickScooter AIR marks our consistent effort in product innovation, and we have more KickScooter products in the rollout pipeline for next quarter to further complete our product offerings.
The launch I'll kick you out air marks our consistent effort in product innovation, and we have more kick scooter product pipeline from export it to further complete our product offerings. Meanwhile, we're also leveraging that.
Speaker 3: the traction that we gather from our Kickstarter product to expand our sales network coverage. Currently we have our new product sold in over 1,500 offline stores in the United States and Europe in major retailers like Best Buy and Media Mart. Together with the product portfolio enhancement, the sales network expansion has laid a solid foundation for ramping up sales in the next few months throughout the holiday season.
The traction that we gather from artist put a product to expand our sales network courage currently will have our new products. So the over 500 offline stores in the United States and European major retailers like best buy media markets together with a product portfolio has been the sales network expansion has laid a solid foundation for ramping up the sales in the next few months throughout the holiday season.
Yeah.
Speaker 3: Now as we look forward, we remain a cautious outlook for Q4 this year as some of the operational adjustments in both the China and also the overseas electric multi-market will take time to be fully implemented to drive the mid-term growth. We're nonetheless confident to regain growth in 2024 after a temporary adjustment period.
Now as we look forward, we remain a cautious outlook for Q4 this year at some of the operational adjustment in both the China also the OCC electric multi market will take time to be fully implemented throughout the midterm growth.
Nonetheless confident to regain growth in 2024 after a temporary adjustment periods. This year.
Speaker 3: In the China market, the fourth quarter traditionally experienced a low market demand. We're using this time to continue to enhance our product portfolio and build momentum for store expansion.
Yeah.
In the China market in the fourth quarter is traditionally experienced the low market demand.
We're using this time to continue to enhance our product portfolio and good momentum for store expansions.
Speaker 3: In terms of our product portfolio, the Falcon Series is a testimony of a successful product portfolio expansion. We're also focused on expanding our retail store this quarter. With those, we believe we're well positioned to get back on a high growth track in 2021.
From a product portfolio to the sovereign series is a testimony of successful products with whole expansion.
Also focused on expanding our retail stores this quarter with those we believe we are well positioned to get that back on the high growth track in 2024.
Speaker 3: Now, for the international electric two-wheeler market, the additional new product, the off-road and also the motorcycle product, and also the swapping solutions are well positioned as for growth in the key European, United States, and the South Asian market.
For the international electric tubular market additional new product the offload the Ulster motorcycle market product and also the swapping solutions that will position us for growth in the key European.
The United States in the Southeast Asian market next year.
Speaker 3: We're also actively implementing operational adjustments for better deliver those products to our key markets through the key channels, but we expect those adjustments will take time and hence we remain cautious outlook for the Q4 2023.
We're also actively implementing the operational adjustments for better deliver this product to our key markets through the key channels.
We expect those adjustment will take time it has to we remain cautious outlook for Q4 2023.
Speaker 3: Last but not least, for our international micro-mobility markets, we're pleased to report a sustained and robust growth trajectory. This growth is fueled by two key pillars, the completion of our product portfolio and expansion of our sales network. Our product lineup has not only boosted sales volume, but also significantly elevated the presence of new brands within this market segment.
Last but not least far international micro mobility market.
We're pleased to report a sustain a robust growth trajectory of this growth is fueled by two key pillars.
Completion of our product portfolio, especially our sales network our product lineup has not only boost the sales volume, but also significant elevate the.
Presence up new brands within this market segment.
Speaker 3: The recent addition of the Kikilet Air represents just one of the many exciting products yet to come.
In addition applications represented just marvelous.
Exciting products yet to come.
Speaker 3: The expanding product portfolio has driven the development of our sales channels with remarkable growth observed in our expanded retail network. We are confident in our ability to assist in high growth in Q4 and beyond.
Spending product portfolio has driven the development of our sales channels for the smartphone growth up there.
Spend at retail networks, we're confident in our ability for sustaining high growth in Q4 and beyond.
Speaker 2: Now I'll turn the call over to our CFO , Fiona. Thank you, Yan. And hello, everyone. Please note that our press release contains all the figures and comparisons you need. And we have also uploaded Excel format figures to our IR website for your easy reference.
Now I'll turn the call where our CFO.
Thank you Yan and Hello, everyone. Please note that our press release contains all the figures and comparisons you need and we have also uploaded southall and lapsed users to our IR website for your reference.
Speaker 4: As I review our financial results, I'm referring to third-quarter figures unless I say otherwise, and all monetary figures are in RMB if not specified.
As I review, our financial results, referring to third quarter figures, unless I say, otherwise and all monetary figures are in RMB is not specified.
Speaker 4: As Yan just mentioned, during the third quarter, we sold a total of 266,000 units, and 230,000 were sold in China, while the rest were sold overseas.
As John just mentioned during the third quarter, we sold a total of 266000 units and <unk> already solid and it was solid in China, while the rest was stalled overseas and the total revenue for the third quarter amounted to 927 million a decrease of 220.
Speaker 4: And the total revenue for the third quarter amounted to $927 million, a decrease of $226 million compared to the same period of last year. And China market revenue was $785 million, accounting for 85% of the total revenue.
$6 million compared to the same period of last year and the China market revenue was 785 million accounting for 85% of the total revenue of this the China quarter revenues $711 million a year over year decrease of 17%.
Speaker 4: Of this, the China scooter revenues were $711 million, a year-over-year decrease of 17%.
Speaker 4: And this decrease was mainly due to the lower sales volume of our premium series.
And this decrease was mainly due to the lower sales volume of our premium service and partially offset by the higher sales volume and revenue from our mass premium Crs and the China <unk> with <unk> 85, a year over year decrease of five 5% and this.
Speaker 4: and partially offset by the higher sales volume and revenue from our mass premium series.
Speaker 4: And the China scooter ASP was RMB3085, a year-over-year decrease of 5.5%. And this decline in ASP was mainly due to the product mix change, which I just mentioned.
Decline in ASP was mainly due to the product mix change, which I just mentioned.
Speaker 4: And the overseas market revenue were $142 million, accounted for 15% of the total revenue. And the overseas scooter revenue, including the e-motorcycles, mopeds, kick scooters, and e-bikes, amounted to $122 million, compared to $195 million in the same period of last year. And this decrease was mainly due to the decline in the sales of e-motorcycle and mopeds.
And the overseas market revenue 100.
42 million accounted for 15% of the total revenue and the overseas scooter revenue, including a motorcycle small path keeps quarters any batch amounted to $122 million.
Compared to 195 million in the same period of last year and this decrease was mainly due to the decline in the sales of E motorcycle and small pads.
Speaker 4: The micro-mobility revenue were around $109 million, up 20% quarter-over-quarter. And the overseas scooter ESB increased from RMB3386 to RMB3430 year-over-year, and mainly due to our premium model K3 Max sales volume increase from 3.2 thousand units to 7.1 thousand units year-over-year.
The micro mobility revenue or around $101 million up 20% quarter over quarter and the overseas Scooter ASB increased from RMB 3386 to RMB 430 year over year and mainly due to our premium model case Remax salesforce.
Volume increased from three points to solve in units to 7.1 thousand units year over year and.
Speaker 4: And the revenue from accessories, spare parts, and services amounted to $94 million, a 5% decrease compared to the same period of last year. And this decline was mainly driven by the lower sales of battery packs overseas, as we mentioned in the previous quarter.
And the revenue from accessories spare parts and services amounted to $94 million, a 5% decrease compared to the same period of last year and this decline was mainly driven by the lower sales of battery packs overseas as we mentioned in the previous quarters.
Speaker 4: And the growth margin decreased by 0.7 PPT year-over-year to 21.4%. And of this, 0.6 PPT of this decline was driven by the lower sales volume from the overseas e-motorcycle and e-mopeds. And the remaining 0.1 PPT due to the change to the product mix domestically.
And the gross margin decreased by <unk>, seven ppt year over year to 21, 4%.
And at this 0.6 PBT up this decline was driven by the lower sales volume from the overseas in motorcycle and email pass.
And the remaining one ppt due to the change to the product mix domestically.
Speaker 4: And our third quarter OPEX amounted to $289 million, an increase of $25 million compared to the same period of last year. And this increase was mainly due to a $88 million increase in provisions for credit losses in this quarter.
And our third quarter Opex amounted to 289 million, an increase of 25 million compared to the same period of last year and this increase was mainly due to 88 million increase in provisions for credit losses in this quarter.
Speaker 4: Excluding the impact of the credit losses in each period, the OPEC decreased 25% year-over-year, as percentage of revenue also decreased by 1.4 PPT from 22.3% last year to 21% this year.
Clothing, the impact of the credit losses in each period. They all pass decreased 25% year over year as percentage of revenue also decreased by one four TPG from 22 points to 8% last year to 21% this year.
Speaker 4: For the details, I will explain in a moment.
The detailed I wouldn't explain in a moment.
Speaker 4: Selling and marketing expenses were $123 million.
Selling and marketing expenses were 123 million.
Speaker 4: As percentage of revenue was 13.2 percent, it is a year-over-year decrease of $48 million and 1.6 ppt lower than last year, primarily due to a reduction in advertising and promotion activity.
As a percentage of revenue was 13, 2%.
It is a year over year decrease of $48 million and 1.6 ppt lower than last year, primarily due to a reduction in advertising and promotion of Activations.
Speaker 4: R&D expenses amounted to $39 million, representing an $11 million decrease year-over-year, primarily due to a decrease in share base compensation and staff costs, and also the design and system development professional
R&D expenses amounted to 39 million, representing a $11 million decrease year over year, primarily due to a decrease in share based compensation.
Staff cost and also the design and system development professional fees.
Speaker 4: G&A expenses were $127 million, representing a $83 million increase year-over-year, and this is due to the increase in provision for credit losses of $88 million. Excluding these credit losses, the G&A expenses decreased by 13% compared to the same period of last year.
G&A expenses were 127 million, representing 83 million increase year over year and this is due to the increase in provision for credit losses of $88 million. Excluding this credit losses, the G&A expenses decreased by 13% compared to.
The same cure rate out for that.
Speaker 4: Since our international operation has expanded, we have seen a corresponding increase in the extent of our account receivables, which forms the basis of computing the bad debt provision.
Since our international Operation has expanded we have seen a corresponding increase in the extend of our account receivables, which forms the basis of computing the bad debt provisions as we mentioned in the previous quarters, the European consumer sentiment remains cautious leading our.
Speaker 4: As we mentioned in the previous quarters, the European consumer sentiment remains cautious, leading our distributors to ask for extended payment terms due to the weak retail sales.
Distributors to ask for extended payment terms due to the weak retail sales.
Speaker 4: In the meantime, one of our key motorcycle and moped distributors in the European market announced on September 6 this year that it's going into a court-supervised constructuring process due to the intense economic pressure.
In the meantime, one of our key motorcycle and small pass distributors in the European market announced on September six this year that is flowing into a court supervised just construction cost structuring process due to the intense economic profit.
Pressures.
Speaker 4: Consequently, this quarter, we took a provision of RMB 54 million, representing a full amount of receivable owned by this distributor. And despite the prudent raising provisions for credit losses on the overdue payments, we retain a positive outlook on the future receivable collections, given our other partners' robust financial standing and their continuous ongoing payment.
Consequently, this quarter, which yoga provision of RMB 54 million, representing a small amount of receivable almost by the distributor and despite despite that the prudent raving provisions for credit losses, omni overdue payments, we're retaining our positive outlook on the future receivable collections.
Given our other partners robust financial standing and their continuous ongoing payments.
Speaker 4: To conclude, excluding the prudence provision for credit losses, our cost controls have driven an overall decrease in expenses and made us more efficient, leaner, and flexible to navigate today's volatile and weak macroeconomy, and emerge stronger when conditions eventually improve.
To conclude excluding the <unk> provision for credit losses, our cost control has driven an overall decrease in expenses and made us more efficient and flexible to negative to date to navigate today's volatile and weak macro economy.
And emerge stronger when conditions eventually improve.
Speaker 4: In the third quarter, our net loss was nearly $80 million under the GAAP measurement, compared to a net profit of $3 million for the same period of last year.
Third quarter, our net loss was nearly 80 million alder gas measurement compared to a net profit of 3 million for the same period of last year.
Speaker 4: And turning to our balance sheet and cash flow, we ended a quarter with nearly $1.4 billion in cash, restricted cash, term deposits, and short-term investments.
Turning to our balance sheet and cash flow.
Indeed, a quarter with nearly one 4 billion in cash restricted cash and term deposits and short term investments.
Speaker 4: The operating cash flow was $229 million compared to $415 million in the same period of last year and $270 million last quarter. And our capex for the third quarter amounted to $26 million and has remained stable for the past five quarters.
Operating cash flow was 229 million compared to 415 million in the same period of last year and $217 million last quarter and our capex for the third quarter amounted to 26 million and Hess.
Remained stable for the past four five quarters.
Speaker 4: And now let's turn to guidance. We expect the full quarter revenue to be in the range of RMB 490 million to 612 million, representing a year-over-year decrease from 20% to flat.
And now, let's turn to guidance, we expect fourth quarter revenue to be in the range of RMB 490 million to $612 million, representing a year over year and decreased from 20% to flat.
Speaker 4: And please be aware that this outlook is based on information available as of the date and reflects the company's current and preliminary expectations, which is subject to change due to the uncertainty relating to various factors.
Please be aware that this outlook is based on information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to the uncertainty relating to our various factors and with that we'll now open the call for any questions that you may have for us.
Speaker 4: And with that, we'll now open the call for any questions that you may have for us, operator. Please go ahead.
Operator, Please go ahead.
Speaker 1: Thank you. Thank you. We will now begin the question and answer session. To ask a question, please press star 11 and wait for a name to be announced. If you'd like to cancel your request, please press star 11 again. There will be a short silence while questions are being collected.
Thank you thank.
Thank you.
We will now begin the question and answer session to ask a question. Please press star one one and great brand name to be announced if you'd like to cancel your request. Please press star one again.
Short silence walk questions are being connected.
Okay.
Speaker 1: As a reminder, if you'd like to ask a question, please press star 11.
As a reminder, if you'd like to ask question. Please press star one.
Okay.
Sure.
Yeah.
Speaker 1: There are no questions at this time. I would like to hand the call back to management for closing remarks.
Yes, no questions at this time I would like to hand, the call back to management for closing remarks.
Speaker 3: Thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.
Thank you operator, and thank you all for participating on today's call and for your support we appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.
Speaker 1: That does conclude today's conference call. Thank you for your participation. You may now disconnect your line.
That does concludes today's conference call. Thank you for your participation you may now disconnect your lines.
Okay.
Okay.
Okay.
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Okay.
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