Q2 2024 Niu Technologies Earnings Call
Okay.
Operator: Good day, ladies and gentlemen. Thank you for standing by.
Operator: Good day, ladies and gentlemen. Thank you for standing by.
Speaker Change: Good day, ladies and gentlemen, thank you for standing by welcome two new technologies second quarter 2024 earnings Conference call.
Operator: Welcome to Niu Technologies' second quarter 2024 earnings conference call. At this time, all participants are on a list anonymous. Later, we'll conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I'll turn the call over to Miss Kristal Li, Investor Relations Manager of Niu Technologies. Miss Li, please go ahead.
Operator: Welcome to Niu Technologies' second quarter 2024 earnings conference call. At this time, all participants are in list anonymous. Later, we'll conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms.
Speaker Change: At this time, all participants are in listen only mode.
Speaker Change: Later, we will conduct a question and answer session and instructions will follow at that time.
Speaker Change: A reminder, we are recording today's call. If you have any objections you may disconnect at this time no.
Speaker Change: I'll turn the call over to MS Crystal Li Investor Relations manager of New technologies basically please go ahead.
Crystal Li: Thank you operator, Hello, everyone welcome to today's conference call to discuss new technologist results for the second quarter of 2024, the earnings press release corporate presentation and financial Spreadsheets has been posted on our Investor Relations website.
Kristal Li: Thank you, Operator. Hello, everyone.
Kristal Li: Thank you, Operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the second quarter of 2024. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from our company's investor relations site as well, and the replay of the call will be available. Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995
Kristal Li: Welcome to today's conference call to discuss Niu Technologies' results for the second quarter of 2024. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from our company's IR website as well, and a replay of the call will be available.
Speaker Change: This call is being webcast from our company's IR side, TUSK Wow and the replay of the call will be available soon.
Kristal Li: Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statement except as required by law.
Kristal Li: Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the securities and exchange. The company does not assume any obligation to update any forward-looking statement except as required by law.
Speaker Change: Please note today's discussion will contain forward looking statements made under the safe Harbor provisions of the US Private Securities Litigation Reform Act of 90 95.
Speaker Change: Forward looking statements involve risks uncertainties assumptions and other factors.
Speaker Change: Companys actual results may be materially different from those expressed today.
Speaker Change: Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission.
Speaker Change: The company does not assume any obligation to update any forward looking statement, except as required by law.
Kristal Li: Our earnings press release and this call included discussion of certain non-GAAP financial measures. The press release contains the definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Li Zijiang Zhou. Now, let me turn the call over to CEO Yi.
Speaker Change: Our earnings press release, and this call include a discussion of certain non-GAAP financial measures.
Kristal Li: Our earnings press release and this call included discussion of certain non-GAAP financial measures. The press release contained the definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial resources. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Xiang Zhou. Now, let me turn the call over to Yan. Thank you, Kristal, and hello, everyone.
Speaker Change: The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.
Speaker Change: On the call with me today are our CEO, Dr Yan, Li and CFO Ms beyond Joel.
Yan Li: Now, let me turn the call over to see Oems.
Speaker Change: Thank you Crystal and Hello, everyone. Thank you for joining us today, the second quarter of 2020 for continuing the growth trend from Q1 with a total sales volume of 256000 units, reflecting a year over year increase of 21% the China market saw a 16% year over year increase to 200.
Yan Li: Thank you, Kristal, and hello everyone. Thank you for joining us today. The second quarter of 2024 continued the growth trend from Q1 with a total sales volume of 256,000 units, reflecting a year over year increase of 21%. The Chinese market saw a 16% year over year increase to 207,000 units. While the Overseas Marks experienced a significant euro-year growth of 45% to 48,600 units, total revenue will reach RMB 940.5 million, marking a 13.5-year-old year.
Yan Li: Thank you for joining us today. The second quarter of 2024 continued the growth trend from Q1 with a total sales volume of 256,000 units reflecting a year-over-year increase of 21%. The China market saw a 16% year-over-year increase to 207,000, while the overseas market experienced a significant year-over-year growth of 45% to 48,600 units. Total revenue reached RMB 940.5 million, marking a 13.5-
Speaker Change: <unk> thousand 207000 units.
Speaker Change: While the overseas market experienced a significant year over year growth of 45% to 48600 units total revenue reached RMB $940 5 million, marking a 13 five year over year increase.
Yan Li: This performance underscores the effectiveness of a strategic focus on expanding product, sales channel, and market coverage. We have made substantial progress in both China and overseas markets, reflected in improved performance and increased recognition from our partners. In China, we focused on enhancing our product portfolio with new offerings around the core series. The new product introduced received positive feedback from users. In Q1, we launched a product strategy to focus on target groups, and in Q2, we expanded our product offerings to further meet the diversified needs of the core groups.
Yan Li: This performance underscores the effectiveness of a strategic focus on expanding product, sales channel, and market coverage. We have made substantial progress in both China and the overseas market, which is reflected in the improved performance and increased recognition from our partners. In China, we focused on enhancing our product portfolio with new offerings around the core series. The new product introduced received positive feedback from... In Q1, we launched a product strategy to focus on target groups, and in Q2, we expanded our product offerings to further meet the diversified needs of the corporate world.
Speaker Change: This performance underscores the effectiveness of our strategic focus on expanding products still chatter on the market coverage will have made substantial progress in both China and overseas market reflected in the improved performance and increased recognition from our partners.
Speaker Change: In China, we focused on enhancing our product portfolio with new offerings around the core series. The new product introduced received positive feedback from users in Q1, we launched product strategy to focus on target groups out in Q2 expand our product offering to further meet the diversified needs from the core groups.
Yan Li: In the overseas market, we have significantly expanded our sales network for micro-mobility products by partnering with the key retail channels. This expansion has greatly increased our market presence, expected to further drive long-term growth. In the electric two-wheeler segment, we are optimizing our business operations to focus on key markets.
Yan Li: In the overseas market, we have significantly expanded our sales network for micro-mobility products by partnering with a key retail channel. This expansion has greatly increased our market presence and is expected to further drive long-term growth. In the electric tool segment, we are optimizing our business operations to focus on key markets.
Speaker Change: In the overseas market, but has significantly expand our sales network for micro mobility product by partnering with our key retail channels.
Speaker Change: This expansion has greatly increased our market presence expected to further drive long term growth in.
Speaker Change: In the electric tubular segment, we are optimizing our business operations to focus on key market. We have completed the initial phase of building the foundation of direct sales in key markets in Europe, and United States for our key products.
Yan Li: We have completed the initial phase of building a foundation of direct sales in key markets in Europe and the United States for our key products. Although the strategy to invest more heavily in local operations takes time to implement in the beginning, we're confident that a direct-to-market approach allows us to adapt more to the local market and thus can bring substantial growth in the long term. Now, let me delve into the Chinese market.
Yan Li: We have completed the initial phase of building a foundation of direct sales in key markets in Europe and the United States for our key products. Although the strategy to invest more heavily in local operations takes time to implement in the big... We're confident that a direct-to-market approach allows us to adapt more to the local market and thus can breed substantial growth in the long term. Now, let me delve into the Chinese market.
Speaker Change: Although the strategy to invest more heavily low cooperations takes time to implement in the beginning we're confident that director market approach allows us to adapt more to the local market.
Operator: Good day ladies and gentlemen. Thank you for standing by. Welcome to Niu Technologies 2nd quarter, 2024 earnings conference call. At this time, all participants are in this anonymous. Later, we'll conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.
Speaker Change: Temporary substantial growth in the long term.
Speaker Change: Now let me dive into.
Speaker Change: Into the China markets, our growth is driven by our strategic focus on product portfolio expansion sales channel growth and same store sales improvement.
Yan Li: Our growth is driven by strategic focus on product portfolio expansion, sales channel growth, and same-store sales improvement. This year, we emphasize product development targeting both the high-end premium segment to reinforce our brand's premium image and specific consumer segments like Gen Z and female users. We initiated an effort to expand the sales channel by increasing the number of stores in under penetrated cities. Additionally, we strengthened our omni-channel approach, integrating online and offline strategies to boost same-store sales.
Yan Li: Our growth is driven by a strategic focus on product portfolio expansion, sales channel growth, and same-store sales improvement. This year, we emphasize product development targeting both the high-end premium segment to reinforce our brand's premium image and specific consumer segments like Gen Z and female users. We initiated an effort to expand the sales channel by increasing the number of stores, increasing underpenetrated. Additionally, we strengthened our omni-channel approach, integrating online and offline strategies to boost same-store sales.
Speaker Change: This year with emphasis on product development and targeting both the high end premium segment to reinforce our brand premium image and specific consumer segment that <unk> million users.
Kristal Li: Now, I'll turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Please, please go ahead. Thank you, operator. Hello, everyone.
Speaker Change: We initial effort to expense sales channel by increasing the number of stores in there.
Speaker Change: Penetrated Cds.
Kristal Li: Welcome to today's conference call to discuss Niu Technologies results for the 2nd quarter, 2024. The earnings press release, corporate presentation and financial spreadsheets has been posted on our Investor Relations website. This call is being webcast from our company's IR site as well and the replay of the call will be available soon.
Ali: Ali we strengthen our omnichannel approach integrated online offline strategies to boost same store sales.
In Q1, we introduced the next tier most premier electric bicycle priced at RMB 12099.
Yan Li: In Q1, we introduced the NXP, our most premium electric bicycle, priced at RMB12,899. It quickly became the leading product in SIGMA, equipped with advanced features like full-function ABS, TCS, blind-spot detection, a car-grade dashboard, and a millimeter-wave radar. Riding on this success, we launched the M-PLAY electric motorcycle and the UMAX electric bicycle, designed to appeal to the young Gen Z riders. The M-PLAY inherited the classic in-design, and the UMAX offered a larger form factor, inheriting the classic U-series design.
Yan Li: In Q1, we introduced the NXT, our most premium electric bicycle, priced at RMB12,899. It quickly became the leading product in SIGMA, equipped with advanced features like full-function ABS, TCS, blind spot detection, a car-grade flash forward, and a millimeter wave radar. Riding on this success, we launched the M-PLAY electric motorcycle and an UMAX electric bicycle designed to appeal to the young Gen Z riders. The M-PLAY inherited the classic N design, and the UMAX offered a larger form factor and inherited the classic U-series design.
Ali: It quickly became the leading product segments equipped with the best features like full function EPS TTS blind spot detection, a carpet a dashboard and a millimeter wave radar.
Kristal Li: Please note, to this discussion will contain forward looking statements made under the safe harbor provisions of the US Private Security Education Reform Act of 1995. Forward looking statements involve risks, uncertainties, assumptions and other factors. The company's actual results may be materially different from those its press days. Further information regarding the risk factors is included in company's public fillings with the Security and Exchange Commission. The company does not assume any application to update any forward looking statement except as required by law.
Ali: On the success, we launched it in play electric motorcycle and <unk> electric bicycle designed to appeal to the young Gen Z writers.
Ali: Ladies Heritage Classic designs, and new Mexico for a larger form factor.
Speaker Change: The coffee use series design. Additionally, we spoke about female demographic by lunch and I put a new mine in March coincide with international Women's day, combining the classic design with user friendly and safety focus features.
Yan Li: Additionally, we focused on female demographics by launching the upgraded UMAX in March, coinciding with International Women's Day, combining the classic design with user-friendly and safety-focused features. Those new products were well-received, collectively accounting for more than 50% of all units sold in Q2, underscoring our strict focus on targeted product development. In Q2, we will continue our product development strategy to roll out our key premium products and expand the product portfolio for Gen Z and female users.
Yan Li: Additionally, we focused on female demographics by launching the upgraded UMAX in March, coinciding with International Women's Day. Combining the classic design with user-friendly and safety-focused... Those new products are well-received, collectively accounting for more than 50% of all units sold in Q2, underscoring our strict focus on targeted product development. In Q2, we continued the product development strategy to roll out our key premium products and expand the product portfolio for Gen Z and. We prepared the long-tailed earth egg, our most premium electric motorcycle, which was recently released in the market in July. The NX offers a customizable smart tire pressure monitoring system, high-quality dual disc brakes, and adjustable suspension for a smooth ride.
Those new product award to us collecting the accounting for more than 50% of all units sold in Q2 underscore our strategic focus on targeted product investments.
Kristal Li: Our earnings press release and this call included discussion of certain non-gap financial measures. The press release contain a definition of non-gap financial measures and the reconciliation of gap to non-gap financial results.
Speaker Change: In Q2, we continue the product development strategy to our key premium products and expand the product portfolio for charity and female users we prepare to launch <unk>.
Yan Li: We prepared the launch of NX, our most premium electric motorcycle, which was recently released in the market in July. The NX offers a customizable smart tire pressure monitoring system, high-quality dual-disc brakes, and adjustable suspension for a smooth ride. Equipped with the most up-to-date new smart functionalities, the NX is priced from RMB 6,500 to RMB 20,900. We believe the product will contribute to sales volume but also reinforce Niu's leading position in the premium electric scooter market.
Speaker Change: Our most premium electric motorcycles, which was recently released in the market in July.
Kristal Li: On the call with me today are our CEO Dr. Yan Lee and CFO Ms. Liang Zhou.
Speaker Change: The <unk> offers customizable smart tire pressure monitoring system high quality to disc brakes.
Yan Li: Now, let me turn a call over to CEO Yan. Thank you, Crystal and hello everyone. Thank you for joining us today. The 2nd quarter of 2024 continue the growth trend from Q1 with a total sales volume of 256,000 units reflecting a year or year increase of 21%. The China market saw a 16% year or year increase to 277,000 units. While the overseas markets experience a significant year or year growth of 45% to 48,600 units, total revenue reached RMB 940.5 million, marking a 13.5 year or year increase.
Speaker Change: Adjustable suspension for schools right equipped with the most up to date.
Yan Li: Equipped with the most up-to-date new smart functionality, the NX is priced from RMB 6,500 to RMB 20,900. We believe the product will contribute to sales volume but also reinforce Niu's leading position in the premium electric scooter market. [inaudible] To continue to explore products targeting the Gen Z user group, we recently launched the N-T-Play, an electric bicycle that inherits the classic design of the N-Series and combines the advanced motorcycle-grade high-speed electric bike. Equipped with smart features such as keyless ignition, TCS traction control, cruise control, and push-pull.
Now the price from RMB 6500 to 2900, we believe the product will not only contribute to sales, but also reinforce used leading position in the premium electric scooter markets.
Speaker Change: We also continue to explore product how do you mean, the <unk> user group. We recently launched the anti platelet electric bicycle you inherited a classic design of Siri and.
Yan Li: To continue to explore products targeting the Gen Z user group, we recently launched the N-T-Play, an electric bicycle that inherits the classic design of the N-Series and combines advanced motorcycle-grade handling with electric bikes. Equipped with smart features such as keyless ignition, TCS traction control, cruise control, and push-pull during the ride. The NT is priced competitively at RMB 4,409. For the female consumer segment, in May, we released the O Series to complete our product offerings covering the premium female segment. The O-Series is designed for young female riders with a focus on comfort and low weight.
Speaker Change: And the combined events motorcycle freight has the least electrified.
Yan Li: This performance underscores the effectiveness of a strategic focus on spending products built on a market coverage, who have made substantial progress in both China overseas market reflected in the improved performance and increased recognition from our partners. In China, we focus on enhancing our product portfolio with new offerings around the course years. The new product introduced to receive positive feedback from users. In Q1, we launched product strategy to focus on target groups, saying Q2, expend up product offerings to further meet the diversified needs from the core groups.
Speaker Change: Equipped with our feature such as TV and Commission Tcs traction control.
Speaker Change: Cruise control and push.
Speaker Change: During the race.
Yan Li: During the ride, The NT is priced competitively at RMB 4,409. For the female consumer segment, in May, we released the O series to complete our product offerings covering the previous female segments. The O-Series is designed for young female riders with a focus on comfort and safety, and emphasizes easy long-distance riding safely for Operations and Design.
Speaker Change: The LTE is priced competitively at RMB 4495.
Speaker Change: For the female consumer segment in May we released the old series to complete our product offerings covering the Permian female sector.
Speaker Change: The old series is designed for young female writers with focused on comfort amdocs.
Yan Li: I emphasize easy long-distance riding, safety, simple operations, and design excellence. Key design features include comfortable seating, ergonomic handles, and a stable riding triangle in addition to the new smart features to ensure a delightful and comfortable riding experience for urban commuters. The O-Series will be launched in the market on June 1st throughout its life cycle. Our product rollout strategy positions Niu's portfolio with premium products while also focusing on diversified offerings for unique customers. Each product maintains a consistent design element, a new signature halo light, to help strengthen its brand recognition in the market.
Speaker Change: The long distance driving safety simple operations at these excellent.
Yan Li: In the overseas market, we have significantly[inaudible] This expansion has greatly increased our market presence expected to further drive long-term growth. In the Electro-Tooler segment, we are optimizing our business operations to focus on key markets. We have completed the initial phase of building a foundation of direct sales in key markets in Europe and the United States for our key products. Although the strategy to invest more heavily in local operations takes time to implement in the beginning, we're confident that direct-to-market approach allows us to adapt more to the local market. That's temporary substantial growth in the long term.
Yan Li: Key design features include comfortable seating, ergonomic handles, and a stable riding triangle. In addition to the new smart features, we ensure a delightful and comfortable riding experience for our clients. The O-Series will launch in the market on June 1st, throughout its life cycle. Therefore, our product rollout strategy positions Niu's portfolio with premium products while also focusing on diversified offerings. Each product maintains the consistency of the elements.
Speaker Change: These are features include comparable economics handles stable right track orientation to the new Smart features we ensure the LIFO and uncomfortable right experience urban commuters.
Speaker Change: The old series was launched in the markdown to first throughout livestream.
Speaker Change: Part of our strategy positions us portfolio with premium product. We're also focusing on diversify offering for unique user needs. Each product maintained a consistent element new things for Halo light to help strengthen our brand recognition in the market.
Yan Li: HelioLite to help strengthen our brand recognition in the market. Southpaw, our marketing campaign this year, We have strategically focused on penetrating target user groups with our new product launch. Specifically, we have integrated marketing efforts aimed at the Gen-Z and female demographic. To engage the Gen-Z group, we expanded our partnership with JD Gaming, a popular online gaming platform in China. CoOP Livestream sessions and the gaming competition sponsored by Copper with a grade 30...
Speaker Change: Now for our marketing campaigns this year.
Yan Li: Southpaw, in our marketing campaign this year, we have strategically focused on penetrating target user groups with our new product launch. Specifically, we have integrated marketing efforts aimed at the Gen-Z and female demographics. To engage the Gen-Z group, we expanded our partnership with JD Gaming, a popular online gaming company in China through co-branded product launches, live stream sessions, and the gaming competition sponsored. Additionally, with copper with a grade 30...
Speaker Change: We have strategically focused.
Yan Li: Now let me dive into the China market. Our growth is driven by strategic focus on product portfolio expansion, sales channel growth, and same-store sales improvement. This year, we've emphasized on product development targeting both the high-end premium segment to reinforce our brand-premium image as this big consumer segment that gents the anti-million users. We initiated efforts to expand sales channel by increasing the number of stores in previous under-penetrated CDs. Additionally, we strengthened our omnichannel approach integrated online offline strategy to boost same-store sales.
Speaker Change: Penetrating targeted user groups with our new product launches statistically we have integrated marketing efforts aimed at GNC has similar demographics to engage the TNC group, we expanded our partnership with <unk> a popular online gaming team in China to co branded product launches livestream sessions in the gaming.
Speaker Change: Competition sponsorship.
Recently, we collaborate with the research.
Yan Li: Launching a new X-Razer XQI Limited Edition and participating in a game competition across 50 universities, generating over 50 million views online. Other initiatives include a sponsored U18 basketball team game and the running university's new KOL Ambassador Program. With the product focused on the female user group, we launched a targeted sales and marketing initiative. For the O-Series launch, we executed a comprehensive campaign on the Xiaohongshu, leveraging KOL content marketing and influencer events. This included widespread exposures, in-depth user experiences, and media coverage.
Yan Li: Launching a new X-Razer XQI Limited Edition Participating in a game competition across 15 universities, generating over 50 million views online, Sponsored UAC Class A and the running University of the UK law ambassador. Product Focused on the Female User Group, we launched a targeted sales and marketing campaign. For the O-Series launch, we executed a comprehensive campaign on the Xiaohongshu, leveraging K This includes widespread exposure in depth to the experience and media coverage.
Launching a new X redirect you had limited edition and participated in a game competition Cross 15 universities generating over 50 million views online.
Speaker Change: Other initiatives, including the sponsors do anything basketball game, and then running University nuclear faster progress.
Yan Li: In Q1, we introduced the NXT, our most-premium electric bicycle price that R&B $12,099. It quickly became the leading product in segments equipped with advanced features that full-function EBS, TZ, blind spot detection of carcoded ash floor and a millimeter wave radar. Ready on the success, we launched an in-play electric motorcycle and a U-Max electric bicycle designed to appear to the young Gen D riders. The in-play inherited the classic in-design and the U-Max offer a larger form factor inherited the classic U-Series design.
Speaker Change: When the product focus on female user group, we launched targeted sales and marketing initiatives for the <unk> launch we executed a comprehensive campaign on the shelf and through leveraging our content marketing and Influencer event. This include a widespread exposures in depth as we experienced an immediate coverage across all platforms will have our content.
Yan Li: Across old platforms, we'll have our content on around the product released this year, gaining 1.1. With those marketing efforts, new products will observe a significant increase in interaction across all social media platforms. The new brand has received a total of 125 million interactions, representing a 22% increase in European sales. Both interactions on social media platforms indicate that both are part of a marketing campaign site.
Yan Li: Across all platforms, we have content around the product released this year gaining 1.1 billion views. With those marketing efforts, new products will observe a significant increase in interaction across all social media platforms. This quarter, the new brand received a total of 125 million interactions, representing a 22% increase over the previous year. The growth in interactions on social media platforms indicates that both our product marketing campaigns are gaining significant traction and effectively resonate with our audience.
Speaker Change: Around the product release this year, attaining one less billing views.
Speaker Change: Okay.
Speaker Change: With those marketing efforts new product to observed a significant increase in tax across all social media platform. This quarter. The new brand received a total of 125 minute action, representing a 22% increase year over year. The course interactions on social media platform indicate that both our product marketing campaigns.
Yan Li: Additionally, we focused on female demographics by launching the upper-the-U-Y-E march. Coincide with the International Women's Day, combining the classic design with user-friendly and safety-focused features. Those new products are well received, collectively becoming for more than 50% owe-unit sold in Q2, underscoring our strict focus on targeting product development. In Q2, we continue the product development strategy to draw our key premium products and expand the product portfolio for Gen D and female users.
Speaker Change: Significant traction and effectively resonate with our audience.
Yan Li: Interaction and Effectively Revolving With Ourselves Now regarding the sales network expansion, we made an effort to enhance our sales network. Both channel expansions and same store sales. Drew, by the new product introduction [inaudible] Chen of expansion this year, 400-plus new stores in the first half, resulting in close to 300 store ads, primarily in tier 3 and tier 4. Wow, that's cool.
Speaker Change: Now regarding the sales network expansion with mid effort to enhance our sales network through both channel expansion and same store sales improvement driven by the new product introductions.
Yan Li: Now regarding the sales network expansion, we made an effort to enhance our sales network through both channel expansions and same-store sales. Driven by the new product introductions, we resumed the channel expansion this year, opening 400-plus new stores in the first half, resulting in close to 300 store ads, primarily in tier 3 and 4C. While this growth is modest compared with our total store count, it signals the start of a renewed momentum in our sales network expansion.
Yan Li: We prepared the launch of the NXT, our most-premium electric motorcycles, which was recently released in the market in July. The NXT offers a customized smoke, smart tire pressure monstances, a high quality dual disc brakes, and adjustable suspension for smooths ride. Equipped with the most up-to-date new smart functionality, the NXT price from R&B 6,500 to 20,900. We believe the product will not only contribute to its build oil, but also reinforce new leading positions in the premium electric scooter market.
Speaker Change: The channel expenses this year opening 400, plus new stores in the first half results.
Speaker Change: Close to 300 store at primarily in tier three tier four cities.
Speaker Change: While this growth is.
Yan Li: Smallest compared with our total store counts, a signal to start up renewable energy. Filled Network Filled Network will anticipate a continuous positive trend. In addition to new store openings, our key focus this year has been on improving safe store sales through our omni-channel approach, driving online traffic to offline stores. We recently increased our efforts on the traditional e-commerce platform, with online orders accounting for 48% of total orders in the first half versus last year at 2.5%.
Modest compared with our total store comps a signal to start a renewed momentum in our sales network expansion.
Yan Li: We anticipate a continuous positive trend in Q3 and Q4. In addition to new store openings, our key focus this year has been on improving safe store sales through our omni-channel approach, driving online traffic to offline stores. We significantly increased our effort on the traditional e-commerce platform, with online orders accounting for 48% of total orders in the first half, versus last year at 25%. In addition to traditional e-commerce platforms, we actively expanded our online presence on Douyin, Xiaohongshu, and Kuaishou.
Speaker Change: Japan continued its positive trend in Q3 and Q4.
Speaker Change: In addition to new store openings, our key focus this year has been on improving same store sales were up.
Speaker Change: Only channel approach driving online traffic to offline stores with significantly increased our effort on the traditional e-commerce platform with online orders accounting for 48% of total orders in the first half versus last year at 26%.
Yan Li: Also, continue to explore products having been the Gen D user group, which recently launched the NXT by the electric bicycle that inherited the classic design of the NXT. And it combines the advanced motorcycle, which has a lead in the next five years. Equipped with a sharp feature, such as the Keyless estimation, TCS traction control, cruise control, and the push-pick. This is during the ride. The NT is priced competitively at R&D 1499.
Yan Li: In addition to traditional Itama Spark, we have actively spent our online presence on Zhou Yi Xiao, Wenjuan, and the question, leveraging strong content from our influence internet or those Sparking became a status growing channel. For example, on Douyin, we ramped up the e-store live stream sessions across 15 major cities, conducting more than 500 sessions and nearly 2,000 hours of streaming. By the end of Q2, over 22,000 orders were placed on Douyin compared to a double-digit number from St. Pierre last year.
Speaker Change: In addition to traditional e-commerce platform actively expand our online presence, although each of them through on the classroom leveraging our strong content from our Influencer network those plasma became our fastest growing channels.
Yan Li: Leveraging strong content from our influencer network, those platforms became our fastest-growing channels. For example, on Douyin, we ramped up in-store live stream sessions across 15 major cities, conducting more than 500 sessions and nearly 2,000 hours of streaming.
Speaker Change: <unk> will wrap up the east toward Livestream sessions Cross 50 meters 15 major cities conducting more than 500 sessions and nearly 2000 hours of streaming this quarter.
Yan Li: For the female consumer segment in May, we released the O series to complete our product offerings covering the premium female sector. The O series is designed for young female riders with folks on the culture and looks. And that is a love distance riding safety, simple operations and design plans. Key design features include comfortable seating, ergonomic handles, stable riding for angle, additions to the new smart features we ensure delightful and a comfortable riding experience for urban commuters.
Yan Li: By the end of Q2, over 22,000 orders were placed on ZouYing compared to double-digits from SamePure last year. Those efforts improved same-store sales by close to 70% year-over-year in Q2, laying a strong foundation for future growth. Now, let me turn you to the overseas market. This quarter marks a period of growth and strategic execution.
Speaker Change: And our Q2 over 22000 orders were placed onto in compare to a double digit from same period last year. After you improve the same store sales by close to 7% year over year in Q2, laying a strong foundation for future growth.
Speaker Change: Now, let's turn to the overseas market this quarter marks the tiered outgrowth and strategic execution.
Yan Li: Those efforts improved same-store sales by close to 7% year-over-year, laying a strong foundation. Now, let me turn you to the overseas market. This quarter marks a period of growth in strategic equity. In the micro-mobility category, we achieved a 64% year-over-year growth in volume and launched Entrepreneurship to stand out still. For the electric two-wheeler segment, we focus on building direct sales operations to revive our market presence in key markets. In micro-mobility, we leverage our established product portfolio to grow market presence by updating our well-received products with new versions that enhance channel penetration in key offices.
Yan Li: The O series will launch the market on June 1st throughout live streaming. So our product raw strategy positions use cofoil with premium product are also focusing on diversified offering for unique user needs. Each product maintains the consistency of the element and new things are held alike to help strengthen our brand recognition in the market.
Yan Li: In the micro-mobility category, we achieved a 54% year-over-year growth in volume and launched a key strategic partnership to expand our sales network. In the electric two-wheeler segment, we focus on building direct sales operations to revive our market presence in key markets. In Maximum Mobility, we leverage our established product portfolio to grow market presence by updating our well-received products with new versions and enhanced channel penetration in key offline channels. In Q2, we introduced the KQi 300 series as a significant update to the popular KQi 3 series.
Speaker Change: Micro mobility cap rate, well achieved a 34% year over year across the volume and larger key strategic partnership to expand our sales network.
The electrical tubular segment that we're focused on building direct sales operations to revive our market presence in key markets.
Speaker Change: In micro mobility with leverage our established product portfolio to grow our market presence by upping, a Walgreens C products with new versions that he had channel penetration in key offline channels.
Yan Li: Now for our marketing campaigns this year, we have strategically focused penetrating target user groups without new product launches. So specifically, we have integrated marketing efforts aimed at agency and female demographics to engage the agency group. We expanded our partnership with JD Gaming or POSL online gaming team in China through co-branded product launches, live stream sessions and the gaming competition sponsorship. Additionally, with collaboration with the Razer, you could launch a new X Razer XQ Island to addition and participate in a game competition across 15 universities generating over 50 million views online.
Yan Li: Q2 will introduce the KQI 300 series as a significant update to the popular KQI 300 series, offering What's the Tell and the Powerful Options for Urban Company, Mooting the T-QI C-N-A-P-N-A-X. Both features are advanced due to hydraulic suspension, prior to roughness. Both models include smart connectivity to the new app, enhancing the overall writing experience with customizable settings and features.
Speaker Change: In Q2, we introduced the <unk> 300 series as a significant update to the popular kick you out three series.
Yan Li: Offering versatile and powerful options for urban communities, including the KQi 300P and 300X. Both feature advanced hydraulic suspension systems for a smooth ride on rough surfaces, and both models include smart connectivity to the new app, enhancing the overall ride experience with customizable settings and safety features.
What's the tail on the powerful options for urban community.
Speaker Change: Including the Q2 at 300.
Speaker Change: Ex post features advanced due to hydraulics, the spectra system for seamless rough surfaces.
Speaker Change: Both models.
Speaker Change: Our connectivity to the new App enhancing all right experience with customizable settings at safety features.
Yan Li: The TQi 300 sold out, and Zijun Li, Yating Chen, Zijun Li, Niu Technologies Sponsored ADR Class A. In the first half of 2024, we will also expand our micro-mobility offline retail channel in key countries in the U.S., Germany, and Australia, achieving notable growth in the key markets. In the U.S., in July, we announced our strategic partnership, entering all 800-plus Best Buy stores. This milestone allows us to reach a wide market across the U.S. Yodonna's Momentum is also collaborating with Walmart, Kohl's, Target, and Home Depot to diversify our product offerings across various channels. Similar expansion efforts were carried out in Europe and Australia.
Yan Li: The TQi 300 sold out, and Zijun Li, Yating Chen, Zijun Li, and Niu Technologies sponsored ADR Class A. In the first half of 2024, we will also expand our micro-mobility offline retail channel. Key Countries in the U.S., Germany, and Australia Achieving Notable Growth in the Key Markets In the U.S., in July, we announced our strategic partnership, entering all 800-plus Best Buy stores This milestone allows us to reach a wide market across the United States. Yodonna's Momentum is also collaborating with Walmart, Kohl's, Target, and Home Depot to diversify our product offerings across various channels. Similar expansion efforts were carried out in Europe and Australia.
Speaker Change: 300 or so.
Speaker Change: 10000 units in the first few months of doing this launch and are quickly attract attention from Influencers media in the industry.
Yan Li: Other initiatives including the sponsor new AAC box photo game and the running university new KLO and BAFTA programs. With the product focus on female user group, we launch a target of sales and marketing initiatives. For the O series launch, we execute a competitive campaign on Xiao Huan Shu leveraging KLO content marketing and influencer events. This includes a widespread exposure in depth to the experience and media coverage. Across old platforms, we'll have our content on around the product released this year containing 1.1 billion views.
Speaker Change: In the first half 'twenty 'twenty four will also expand our micro mobility offline retail channels.
Speaker Change: In key countries in the U S, Germany, and Australia, achieving notable growth in the key market in the U S. In July we announced a strategic partnership I can't Oh, 800, plus best buy stores.
Speaker Change: Milestone allows us to reach a white market across the United States.
Speaker Change: Momentum also cooperating with Walmart Kohl's target and home depot to diversify our product offerings across various channels similar expansion effort were carried out in Europe, and Australia, and Germany are now over 400 media Markt Saturn stores and with successful pilot programs, Australia saw a comfortable.
Yan Li: We'll lose marketing after a new product to observe the significant increase in interaction across all social media platforms. This quarter, the new brand will receive a total of 125 million interactions representing a 22% increase in your year. The course interactions on social media platforms indicates that both our product and marketing campaigns are creating significant interactions and effectively resonate with our audience. Regarding the sales network expansion, we made effort to enhance our sales network through both channel expansion and same-store sales improvement.
Yan Li: In Germany, our products are now in over 400 media markets in home stores. And with successful pilot programs, Australia saw considerable progress, with JB HiFi stores increasing to 230 and hundreds of Blue Guys and Harbour Norman stores also displaying our products. Moving forward, our focus for the rest of the year is to leverage our well-rounded product portfolio and establish a sales network to drive growth in both sales volume and profitability. In response to the change in import tariffs to the United States, we have initiated efforts to relocate part of our manufacturing outlets to China. Now, shifting to the electric toilet segment, the business decreased by 69% year-over-year in the first half of 2024, driven by both external and internal factors.
Yan Li: In Germany, our products are now in over 400 media markets that... And with successful pilot programs, Australia saw considerable progress with JV HiFi stores increasing to 230 and hundreds of Blue Guys and Harbour Norman stores also displaying our product. Moving forward, our focus for the rest of the year is to leverage our well-rounded product portfolio and establish a sales network to drive growth in both sales volume and profit. In response to the change in import tariffs to the United States, we have initiated efforts to relocate part of our manufacturing outlets to China. Now shifting to the electric toilet segment, the business decreased by 69% year-over-year in the first half of 2024, driven by both external and internal factors.
Speaker Change: Our progress with <unk>, hi back towards increasing to 230 at hundreds of Hawkeye and Harvard enrollments towards also displaying our product.
Speaker Change: Now moving forward I'll focus on for the rest of the year is to leverage our well rounded product portfolio and established sales network to drive growth in both sales volume and profitability.
Speaker Change: In response to change the input tariff to ignite states would have initial effort to relocate part of manufacturing outside of China.
Yan Li: Through the new product introductions, we zoom into the channel expansion this year opening 400 plus new stores in first half, resulting close to 300 stores as primarily in tier 3 and tier 4 CDs. While this course is modest compared with our total store counts, a signal to start up a new moment in our sales network expansion, we anticipate a continuous positive trend in Q3 and Q4. In addition to new store openings, our key focus this year has been on, and improving safe source sales through our online channel approach, driving online traffic to offline stores, with significantly increase the effort on the traditional e-commerce platform with online orders accounting for 48% of total orders in first half versus last year at 26%.
Speaker Change: Now shifting to the electric toward our SYGMA business decreased by 69% year over year. Your first half 2024, driven by both external and internal factors externally key markets Europe, Europe, like Germany, France and tax regions.
Yan Li: Externally, key markets in Europe, like Germany, France, and the Netherlands, saw a significant drop in the total market volume after withdrawal of government subsidies for clean energy products, leading to over a 50% decrease in total market size. Internally, we transitioned to a direct sales model in the core market, while this shift will drive substantial long-term growth that requires time to be fully implemented and realized. By Q2, we have added 100-plus theaters in 40 of those key countries.
Yan Li: Externally, key markets in Europe like Germany, France, and the Netherlands. So a significant drop in the total market volume after the withdrawal of government subsidies for clean energy products, leading to over a 50% decrease in GDP. Market Sight [inaudible] Internally, we are transitioning to a direct sales model in core markets, and while those shifts will drive substantial long-term growth, require time to be fully implemented and realized. By Q2, we have added 100-plus theaters in 40 of those key countries. And those build a good foundation for the future.
Speaker Change: So a significant drop in the total market volume Acker with two of our government subsidies for clean energy product, leaving over a 50% decrease in total market size.
Speaker Change: We internally, we transition to a direct sales model and core market share.
Speaker Change: We will drive substantial long term growth require time to be fully implemented annualized.
Speaker Change: By Q2, we have added 100, plus theaters now 42 key countries and those build a good foundation for future growth when the market starts to turn around.
Yan Li: The market starts to turn. Now, looking ahead, we're optimistic about the coming quarters for both China and overseas operations. China will continue our strategy of optimizing the product portfolio with premium products and Gen Z mass premium products to be announced in this market in July and August. We are using same-source sales with an omni-channel approach and building our market effort around the specific consumer sector. Those adjustments have shown very positive results in Q1 and Q2, and we're confident that this will bring faster growth. Overseas markets expect sustained growth in the micro-mobility segment, supported by a comprehensive product portfolio and a solid channel presence in key markets like Germany, the US, and Austria.
Speaker Change: Now looking ahead, we're optimistic about the coming quarters, but both China overseas operation.
Yan Li: And those build a good foundation for future growth when the market starts to turn around. Now, looking ahead, we're optimistic about the coming quarters for both China and overseas operations. In China, we will continue our strategy of optimizing products for photo with premium products and Gen Z mass premium products. We will announce in this market in July of August, improving the same source sales with the Omnichannel Approach and building our market effort around the. Those adjustments have shown very positive results in Q1 and Q2, and we're confident that it's bringing faster growth in Q3 and Q4.
Speaker Change: China will continue our strategy of optimizing product portfolio with premium product agenda. The mass premium products will be announced in this markets in July August.
Yan Li: For example, although you will run up the e-store live stream sessions across 15 major cities conducting more than 500 sessions and nearly 2000 hours of streaming this quarter. By end of Q2, over 22,000 orders were placed until in compared to a double digit from same period last year. Those efforts improve the same source sales by close to 70% year or year in Q2, laying a strong foundation for future growth.
Speaker Change: Same store sales with Omnichannel approach and are building a market effort.
Speaker Change: Around the specific consumer segments those adjustments have show a very positive results in Q1.
Speaker Change: Q2, and we're confident that as for faster growth in Q2 and Q4.
Yan Li: Overseas markets expect sustained growth in the micromobility segment, supported by a comprehensive product portfolio and solid channel presence in key markets like Germany, the US, and Australia. We have observed strong 30-year growth 32% year-on-year growth in product activation in July, and those growths are sustainable throughout the year. In lecture 2 of the market, while we're updating our product offerings, our focus remains on expanding the dealer network throughout the rest of the year to regain the dealer network. Now, with that, let me turn the call to Fiona. Thank you, Yan. Hello everyone.
Speaker Change: Overseas market, we expect sustained growth in micro mobility segments supported by a comprehensive product portfolio and a solid 10, our presence in the key market like Germany, Austria, Australia.
Yan Li: Now let me turn to the overseas market, this quarter marks the period of growth and strategic execution. In the micromobility category will achieve the 34% year or year growth in volume and launch a key strategic partnership to expand our sales network. For electric tool or segment, we focus on building direct sales operations to revive our market presence in key markets. In micromobility, we leverage our established product of photo to grow market presence by updating a currency product of new versions that enhance channel penetration in key offline channels.
Yan Li: We have interpreters from 30... 32% year-over-year growth in product activation in July, and those growths are sustainable throughout the year. In election 2 of the market, while we're updating our product offerings, our focus remains on expanding the dealer network throughout the rest of the year to regain the dealer network. Now with that, let me say thank you, Yan.
Speaker Change: But they're very strong 30.
Speaker Change: 32% year over year growth in the product activation to lie.
Speaker Change: And those costs are sustainable throughout the year.
Speaker Change: Electric to the market, while we are updating our product offerings. Our focus remains on expanding the theater network throughout the rest of the year to routine that dealer network footprint.
Speaker Change: Let me turn the call. Thank you again after the line. Please note that our press release contains all the King airs and comparisons you need.
Zijun Li: 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 easier reference. As I review our financial results, I'm referring to the second quarter figures, unless I say otherwise, and all monetary figures are in RMB unless otherwise specified. As Yan just mentioned, our total sales volume for the second quarter was 6,000 units, up 21% compared to the same period last year.
Wenjuan Zhou: Hello everyone, please note that our press release contains all the figures and comparisons. We have also uploaded Excel format stickers to our IR site for your easy reference.
Zijun Li: Thank you, Yan. Hello, everyone.
Yan Li: In Q2, we introduce the KQI 300 series as a significant update to the popular KQI 3 series, offering a versatile and powerful options for urban community. Including the KQI 300 PS-Render X, both features are advanced due to hydraulics suspension system for smooth ride or rough decisions. Both models include a smart connectivity to the new app, enhancing the oral ride experience with customized both settings and safety features. The KQI 300 sold over 10,000 units in the first few months is during the launch and quickly attract the tensions from influencers, media and industry.
Speaker Change: <unk> software last week or so of our IR.
Slides for your reference as I review, our financial results I am referring to the second quarter King airs on that side.
Wenjuan Zhou: As I review our financial results, I'm referring to the second quarter figures, unless I say otherwise, and all monetary figures are in RMB unless specified. As Yan just mentioned, our total sales volume for the second quarter was $250,000. [inaudible] Up 21% compared to the same period of last year. 208,000 units were sold in China, while the remaining 48,000 units were sold overseas.
Zijun Li: 208,000 units were sold in China, while the remaining 48,000 units were sold overseas. Nearly 60% of our sales volume in China was contributed by the new products launched this year, and the total revenue for the second quarter amounted to 9.4 million, up 1,000,000,000, or 13.5% compared to the same period last year. China revenue was 8.2 million, accounting for 85% of total revenue. And of this, scooter revenue was $727 million, up 14% year-over-year. This increase was mainly due to higher sales volume and partially offset by a decrease in revenue per scooter. China's scooter CSP was RMB3503, down 2% year-over-year and 2% quarter-over-quarter.
Speaker Change: Hawaii and all monetary figures.
We've not specified and Dan just mentioned our total sales volume for the second quarter was 256000 units up.
Speaker Change: 101% compare to the same period of last year.
Speaker Change: 208000 units facility in China, while the remaining 48000 units with solid OSV.
Yan Li: In the first half of 2024, we also expand our micromobility offline retail channels. In key countries in the US, Germany and Australia, achieving notable growth in the key market. In the US, in July, we announced a single partnership entering all 800 plus best-by-stores. This milestone allows us to reach a wide market across the United States. You'll notice momentum also collaborating with Walmart, Coast, Target and Home Depot to diversify our product offerings across various channels.
Speaker Change: Nearly 60% of our sales volume in China was contributing five new products launched this year.
Wenjuan Zhou: Nearly 60% of our sales volume in China was driven by the new product launched this. And the total revenue for the second quarter amounted to $940 million, up $112 million, or 13.5% compared to the same period last year. China revenue was $8.2 million, accounting for 85% of the total revenue. And of this, the school revenue was $727 million, up 14% year-over-year, and this increase was mainly due to the higher sales volume and partially offset by a decrease in revenue. China's scooter CSP was RMB3503, down 2% year over year and 2% quarter over quarter. The year-over-year decline in FPE was mainly due to a change in product mix within the premium series.
Speaker Change: And the total revenue for the second quarter amounting to 940 million up 112 million, all 13, 5% compared to the same period last year, China revenue was eight 2 million.
Speaker Change: Accounting for 85% of the total revenues.
Speaker Change: This quarter revenue was $727 million up 14% year over year and this increase was mainly due to the higher sales volume and partially offset by a decrease in revenue plus quarters.
Yan Li: Similar expansion efforts were carried out in Europe and Australia. In Germany, our product are now over 400 media markets at home stores and with successful product programs. Australia saw a considerable progress with JD Hi-Fi stores increasing to 230 and hundreds of cool guys and carbon-woman stores also displaying our products.
Speaker Change: China CSP was RMB, five <unk> down, 2% year over year, and 2% quarter over quarter.
Zijun Li: The year-over-year decline in FPE was mainly due to a change in product mix within the premium series. This quarter, the sales volume of our high-end lead-acid motorcycles grew favorably in the premium markets, accounting for one-third of the sales in our premium series. And these models are typically offered at a competitive price, which explains the slightly declining ASP and margins as well. The overseas revenue was $138 million, accounting for 15% of the total revenue.
Speaker Change: The year over year declining ASP was mainly due to a change in product mix within the premium tier.
Yan Li: Now moving forward, I'll focus on the rest of the years to leverage our well-rounded product portfolio and establish a built-in network to drive growth in both sales volume and profitability. In response to the changed the import tariffs to the United States, we have an initial effort to relocate part of manufacturing outside China. Now shifting to the electric tool or segment, the business decreased by 69% year or year, in first half, 2024, driven by both external and internal factors.
Wenjuan Zhou: This quarter, the sales volume of our high-end lead-acid motorcycles grew favorably in the premium market, accounting for one third of the sales in our premium series, and these models are typically offered at a competitive price, which explains the slightly declining ASP and margins as well. The overseas revenue was $138 million, accounting for 15% of the total revenue. Scooters revenue, including motorcycles, mopeds, kick scooters, and bikes, amounted to $130 million compared to $150 million in the same period last year.
Speaker Change: This quarter as sales volumes of our high end that asset motorcycle oral favorably in the premium market accounting for one third of the sales in our premium tier in Andy.
Speaker Change: In this model actually literally offered a competitive price, which explains to slightly declining asps and margins as well.
Speaker Change: Overseas revenue.
Yan Li: Externally, key markets in Europe, like Germany, France, and Dutch region. So significant drop in the total market volume after withdrawal of government subsidies for clean energy product, leading over 50% decrease in total market size. Internally, we transition to a direct sales model in coal market, while those ships will drive substantial long-term growth require time to be fully implemented and realized. By Q2, we have added 100 plus theaters down 40 in those key countries, and those build a good foundation for future growth when the market starts to turn around.
Speaker Change: 138 million accounting for 15% of the total revenue.
Zijun Li: Scooters revenue, including motorcycles, mopeds, kick scooters, and bikes, amounted to $130 million compared to $150 million in the same period last year. This growth was mainly due to the increased sales of Kik's orders.
Speaker Change: <unk> revenue, including in motorcycles, tmall past quarters, and amounted to $130 million compared to $115 million in the same period of last year.
Wenjuan Zhou: This growth was mainly due to the increased sales of, but partially offset by the decline in the sales of electronic motorcycles and mopeds. The micro-mobility revenue was around $119 million, up 32% year-over-year, and the overseas scooter ASD decreased from our 4, 3, 0, to 6.8. Year-over-Year, as the increased proportion in the sales volume of, However, compared to the first quarter of 2024, the ASP increased 4% quarter over quarter. The revenue from accessories, spare parts, and services amounted to $83 million, a 10% increase compared to the same period of last year, and other leaders. They will come.
Speaker Change: And this growth was mainly due to the increased sales upticks borders and partially offset by the decline in the sales of electronic motorcycles and mopeds.
Zijun Li: Partially offset by the decline in the sales of electronic motorcycles and mopeds. The micromobility revenue was around $119 million, up 32% year-over-year, and the overseas scooter ASD decreased from RV3430 to 2682 year-over-year, as the increased proportion in the sales volume of Kicks. However, compared to the first quarter of 2024, the ASP increased 4% quarter over quarter. The revenue from accessories, spare parts, and services amounted to $83 million, a 10% increase compared to the same period of last year due to the increase of spare parts in the Chinese market.
Speaker Change: The micro mobility revenue with around $119 million up 32% year on year.
Speaker Change: And the overseas quarter ASP decreased by RMB 3430 to <unk> 82.
Yan Li: Now looking ahead, we're optimistic about the coming quarters of both China overseas operations. In China, we'll continue our strategy of optimizing product portfolio with premium products and Gen Z mass premium products we announced in this market in July of August, including the same source sales with our main channel approach and building our market efforts around the specific consumer segments. Those adjustments have shown very positive results in Q1 and Q2, and we're confident that it's very faster scrolls in Q2 and Q2.
Speaker Change: Yeah.
Speaker Change: The increased proportion of sales volume quarters.
Speaker Change: However, compared to the fourth quarter of 2024, Asps increased 4% quarter over quarter.
Speaker Change: Revenue from accessories spare parts and services amounted to 83, million% to 10% increase compared to the same period of last year due to the increase of sales spare parts in China market.
Yan Li: Ours in market, we expect the same growth in the micro mobility segments supported by the comprehensive product portfolio and the solid channel presence in the key market, like Germany, US, Austria, Australia. We have observed it from 32% year-year growth in the product activation in July, and those growth are sustainable throughout the year. In a lecture two of the market, while we're updating our product offerings, our focus remains on spending at either network throughout the rest of the year to regain at either network footprint.
Zijun Li: And the growth margin for the second quarter was 17%, 6.1 ppt lower than the same period of last year, and 1.9 ppt lower than the previous quarter. This decline was mainly due to the lower margins of China's scooters and the increased proportion of overseas kick scooters with their lower margins. In China, as we mentioned previously, our high-end lead-acid motorcycles offer a lower margin compared to our classic premium lithium-ion ones.
And the gross margin for the second quarter was 17% six one ppt lower than the same period of last year, and one nine ppt lower than the previous quarter.
Speaker Change: This decline was mainly due to the lower margins of China.
Speaker Change: And the increased proportion of the overseas Keith orders with US all of our margin.
Speaker Change: In China as we mentioned previously our high end of that assay motorcycles, all for the lower margin compared to our classic premium Lisa My online.
Liang Zhou: Now with that, let me turn into the call to FIA. Thank you, Rinyan. Hello, everyone.
Liang Zhou: Please note that our press release contains all the figures and comparisons you need. We have also uploaded Excel format figures to our IAL site for your easier reference. As I review all the financial results, I'm referring to the second quarter figures, unless I say otherwise, and all monetary figures are in Northern B if not specified. At the end, just mention our total sales volume for the second quarter was 256,000 units, up 21% compared to the same period of last year.
Zijun Li: And meanwhile, we contributed to allocate part of the margins to our domestic distribution partners to reward their loyalty to the company. And talking about operating expenses, the second quarter OPEX was $192 million, representing a 3.5% decrease compared to the same period of last year. And the total OPEX ratio decreased from 24% to 20%. Salient marketing expenses were $120 million, up $11 million year-over-year, primarily due to the new product's promotion in online shopping festivals like June 18th, May 20th, and other advertisements in China, selling and marketing expenses as percentage of revenue went down from 13.2% to 12.8% R&D expenses amounted to $32 million, down $9 million year-over-year, and mainly due to a decrease of $9 million in share rate compensation and stock costs.
Speaker Change: And Meanwhile, we're contributing to allocate part of margins to our domestic distribution partners to reward their loyalty to the company.
Speaker Change: And talking about operating expenses, the second quarter Opex was $192 million.
Speaker Change: <unk>, 5% decrease compared to the same period of last year and a total opex ratio increased from 24% to 20%.
Speaker Change: Selling and marketing expenses were $120 million up $11 million year over year, primarily due to the new product promotion online shopping festival like June 18th May 'twenty and other advertisements in China.
Liang Zhou: 208,000 units was sold in China, while the remaining 48,000 units was sold overseas. Yearly 60% of our sales volume in China was contributed by the new product launch this year. And the total revenue for the second quarter amounted to 940 million, up 12 million, of 13.5% compared to the same period of last year. China revenue was 8 and 2 million. Accounting 45% of this total revenue. And of this, the scooter revenue was 7.27 million, up 14% year-over-year, and that's increased with mainly due to the higher sales volume and partially offset by in the Red Info Scooter.
Speaker Change: Marketing expenses as percentage of revenue went down from 13, 2% to 12, 8%.
R&D expenses amounted to $32 million down 9 million year over year, mainly due to a decrease of 9 million in share based compensation and staff costs R&D expenses as a percentage of revenue went down from $5 10 to a three 4%.
Zijun Li: R&D expenses as a percentage of revenue went down from 5% to 3.4%. GNA expenses were $39 million, down $9 million year-over-year, mainly due to the decrease in allowance for doubtful accounts. GMA expenses as a percentage of revenue went down from 5.8% to 4.9%.
Speaker Change: G&A expenses were $39 million down 9 million year over year, mainly due to the decrease in our allowance for doubtful accounts.
Liang Zhou: China Scooter CFP was R&B 3803, down 2% year-over-year and 2% quarter-over-quarter. The year-over-year declining, FPE was mainly due to a change in product mix within the premium series. This quarter, the sales volume of our high-end, flat-acid motorcycles were also in the premium market, accounting for one-third of the sales in our premium series. And this model specifically offered a competitive price, which explains the likely decline in ASP and margins as well. The overseas revenue was $138 million, accounting for 15% of the total revenue.
Speaker Change: <unk> expenses as a percentage of revenue went down from five 8% in Q4 two per cent.
Speaker Change: In the second quarter, we had a net.
Zijun Li: In the second quarter, we had a net loss of $25 million, with a net loss margin of 2.6% under the GAAP account, compared to a net loss of $2 million for the same period of last year. The adjusted net loss was $20 million, with an adjusted net loss margin of $2.1 billion. And turning to our balance sheet and cash flow, we ended the quarter with $1.3 billion in cash, restricted cash, term deposits, and short-term investments.
Net loss of $25 million within that sloth, marking of two 6% on the GAAP accounting compared to a backlog of $2 million for the same period of last year. The adjusted net loss was $20 million with AI adjusted net loss margin of two one person.
Speaker Change: Then.
Speaker Change: And turning to our balance sheet and cash flow with any of the quarter with $1 3 billion in cash restricted cash target policy and short term investments.
Zijun Li: Last quarter, this amount was $1.2 billion, and last year-end, it was $1.1 billion. Our operating cash inflow amounted to $174 million, and we expected the operating cash flow to remain healthy going forward. The context for this quarter was the outflow of 20 million, and reflecting an increase of 5 million compared to the same period last year, this can be attributed primarily to an increase in the opening of new stores in China.
Liang Zhou: The Scooter's revenue, including the motorcycles in more past, kick scooters and bikes, amounted to $130 million compared to $115 million in the same period of last year. And this growth was mainly due to the increased sales of kick scooters, and partially offset by the decline in sales of electronic motorcycles and more pads. The micro-mobility revenue was around $119 million, up 32% year-over-year, and the overseas Scooter ASP decreased from R&B 340 to 2682 year-over-year.
Speaker Change: Last quarter. This amount was $1 2 billion and laughed at year end was $1 1 billion.
Our operating cash inflow amounted to $174 million and we expect the operating cash flow to remain healthy going forward.
Speaker Change: Capex for the quarter or whats the outflow of $20 million.
Speaker Change: And reflecting an increase of <unk> 5 million compared to the same period of last year. This can be attributed primarily to increasing the opening of new stores in China.
Speaker Change: And now, let's turn to the guidance, we expect third quarter revenue to be in the range up from 1200 and.
Zijun Li: Now let's turn to the guidance. We expected third-quarter revenue to be in the range of $1,298 million to $1,483 million, an increase of 40% to 60% year-over-year. And please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which are subjected to change due to the uncertainties relating to various factors. And with that, we're now open to the call for any questions that you may have for us. Operator, please go ahead.
Liang Zhou: As the increased proportion in the sales volume of kick scooters. However, compared to the first quarter of 2024, the ASP increased 4% quarter-over-quarter. The revenue from accessories, spare parts and services amounted to $83 million, a 10% increase compared to the same period of last year due to the increase of sales, spare parts in China, markets. And the growth margin for the second quarter was 17%, 6.1 PPT lower than the same period of last year, and 1.9 PPT lower than the previous quarter.
Speaker Change: 80, $98 million to 1480 $3 million, an increase of 40% to 60% year over year.
Speaker Change: And please be aware that this is all little tests based on the information available as of the date and with that the company's current and preliminary expectation, which.
Speaker Change: She is subjected to change due to the uncertainties relating to various factors.
Wenjuan Zhou: .. .. .. .. .. .. .. .. .. .. .. ....
Speaker Change: And with that we're now open for the call for any questions that you may have for US operator. Please go ahead. Thank you.
Wenjuan Zhou: Spare Parts in China Market, and the growth margin for the second quarter was 17%, 6.1 PPT lower than the same period of last year and 1.9 PPT lower than the previous quarter. This decline is mainly due to the lower margins of China's borders and the increased proportion of the overseas Chinese.
Wenjuan Zhou: Ordered with Daniel Wormart, In China, as we mentioned previously, our high-end lead-acid motorcycles offer a lower margin of error compared to our classic premium lithium-ion one. And meanwhile, we contributed to allocate part of the margins to our domestic distribution partners, to reward their loyalty to the company, and talk about operating expenses. The second quarter OPEX was $192 million, presenting a 3.5% decrease compared to the same period of last year and a total OPEX ratio decreased from 24% to 25%.
Operator: Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star 11 again. One moment for the first question. Wenjuan Zhou, Yan Li, Zijun Li, Niu Technologies Sponsored ADR Class A. Our first question comes from Kai Kang from Citix. Please go ahead.
Wenjuan Zhou: Salient marketing expenses were $120 million, up $11 million year-over-year, primarily due to the new product's promotion in online shopping festivals like May 20th and other advertisements in China. R&D expenses amounted to $32 million, down $9 million year-over-year, and mainly due to a decrease of $9 million in share rate compensation and stock costs. R&D expenses as a percentage of revenue went down from 5% to 3.4%. GNA expenses were $39 million, down $9 million year-over-year. Now Lawrence will bow for a time.
Wenjuan Zhou: Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, and is subjected to change due to the uncertainties related... Various Facts. And with that, we're now open to the call for any questions that you may have for us. Operator, please go ahead.
Wenjuan Zhou: GMA's expenses as a percentage of revenue went down from 5.8% to 4.8%. In the second quarter, we had a net loss of $25 million, with a net loss margin of 2.6% under the GAAP account, compared to a net worth of $2 million for the same period of time. The adjusted net loss was $20 million, with an adjusted net loss margin of $2.1 million. In turning to our balance sheet and cash flow, we ended the quarter with $1.3 billion in cash, restricted cash, term deposits, and short-term investments.
Operator: Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star 11 again.
Wenjuan Zhou: Last quarter, this amount was $1.2 billion, and last year end, it was $1.1 billion. Our operating cash inflow amounted to $174 million, and we expect the operating cash flow to remain healthy going forward. TAPACS for this quarter was the outflow 20, reflecting an increase of 5 million compared to the same period last year.
Speaker Change: Ill begin the question and answer session to ask a question. Please press star one on your telephone and wait for it.
Wenjuan Zhou: This can be attributed primarily to an increase in the opening of new stores in China. And now let's turn to the guidance. We expect the third quarter revenue to be in the range of $1,298 million to $1,483 million, an increase of 40%. Yo, be here!
Liang Zhou: This decline was mainly due to the lower margins of China Scooter and the increased proportion of the overseas kick scooters with the lower margin. In China, as we mentioned previously, our high-end land assets, motorcycles, offered a lower margin compared to our classic premium lease and my own ones. And meanwhile, we contributed to allocate part of the margins to our domestic distribution partners to reward their loyalty to the company. And talking about operating expenses, the second quarter OPEX was $192 million, representing a 3.5% decrease compared to the same period of last year, and a total OPEX ratio decreased from 24% to 20%.
Speaker Change: It would be that at all.
Speaker Change: If you'd like to see a request please press star one again.
Speaker Change: One moment for the first question.
Operator: One moment for the first question. Our first question comes from Kai Kang from Citix. Please go ahead.
Kai <unk>: Our first question comes from Kai <unk> from <unk>. Please go ahead.
Speaker Change: Okay. Thank you for the opportunity and thank you Mr. President Lee Thank you present payout.
Kai Kang: OK, thank you for the opportunity, and thank you, Mr. President Li, and thank you, President Biao. And I'm Kai Kang from City Security and also from CISA, and I have two questions. And the first question, as we have mentioned, is that we will have strong growth in the third quarter of 2004. So what GPM do we think we can achieve in the third quarter as our volume will be much better with the scale effect? And what's the maybe for some of the long term or the midterm GPM do we think we can achieve or can get?
Kai Kang: Okay, thank you for the opportunity, and thank you, Mr. President Li, and thank you, President Biao. And I'm Kai Kang from City Security and also from CISA, and I have two questions.
Operator: And that's the first question. Okay, sir, let me repeat the question. So basically, you're asking about third quarter strong growth and you're asking about the GTM, or I think I, Yes. What do you mean by PTM?
Kai <unk>: From the security I know so from CLSA.
Speaker Change: I have two questions and the first question that we have.
Kai Kang: And the first question, as we have mentioned, is that we will have strong growth in the next third quarter of 2004. So what GPM do we think we can achieve in the third quarter as our volume will be much better with the scale effect? And what's, maybe, some of the long-term or the mid-term GPM do we think we can achieve or can get? And that's the first question.
Speaker Change: Mentioned that would be.
Our strong growth on the third quarter or so.
Speaker Change: What.
Speaker Change: Do we think we can achieve in the.
Speaker Change: Third quarter as our volume will be much better with Kelly effect.
Speaker Change: What's the maybe both in terms of long term or the midterm.
Liang Zhou: Salient marketing expenses were $120 million, OPEX 11 million year over year, primarily due to the new product promotion in online shopping festivals like June 18, May 20, and other advertisements in China. Salient marketing expenses as percentage of revenue was down from 13%. 42% to 12.8%. R&D expenses amounted to 32 million, down 9 million year over year, and mainly due to a decrease of 9 million in share rate compensation and stock cost.
Speaker Change: GPM to where it can be kind of cheap gas and that's the first question.
Speaker Change: Okay.
Unknown Executive: Okay, sir, let me repeat the question. So basically, you're asking about third quarter strong growth, and you're asking about the GCN, or I don't think I've got it.
Speaker Change: So let me ask you two questions. So basically you are asking about the third quarter's strong growth.
You were asking about the TTM art.
Speaker Change: I think.
Unknown Executive: Yes.
Speaker Change: Yes, yes.
Kim: What do you what do you mean by Kim.
Unknown Executive: What do you mean by PTM? Go-To-Market Plan, Uh-oh.
Kim: The go to market plan.
Operator: The Go-To-Market Plan, Uh-oh, the gross profit market. Oh, okay. So regarding growth, you're asking about the reason why the growth margin dropped, right? This is beyond.
Kim: Yes.
Unknown Executive: Gross Profit Market. Oh, okay.
Kim: The gross the gross profit margin.
Liang Zhou: R&D expenses as percentage of revenue went down from 5% to 3.4%. G&D expenses were 39 million, down 9 million year over year, and maybe due to the decrease in allowance for doubtful accounts. G&D expenses as percentage of revenue went down from 5.8% to 4.2%. In the second quarter, we had a net loss of 25 million within that loss margin of 2.6% under the gap accounting, compared to a net loss of 2 million for the same period of last year.
Speaker Change: Oh, okay.
Unknown Executive: So regarding growth, you're asking about the reason why the growth margin dropped, right?
So regarding to the gross profit so.
Speaker Change: You are asking about.
Speaker Change: The reason why the gross margin dropped right.
Speaker Change: This is beyond.
Speaker Change: Yes, the trend.
Operator: Yes, and the trend of the gross profit margin for the next few quarters. Okay. All right. So, regarding gross margin, actually, this quarter and last quarter, the reason is mainly based on the domestic gross margin drop. As I just explained, starting this year, we plan to launch high-end lead-acid motorcycles in our premium series. Normally, in domestic markets, we set a bar that the MSRP above 4,500 is our premium series, and below that is our mass series. And this year our high-end lead-acid motorcycles; the cheapest model of our high-end lead-acid ones is around 4,800 RMB.
Unknown Executive: Yes, and the trend of the gross profit margin for the next few quarters. Okay.
Speaker Change: Gross profit margin for the next few quarters.
Zijun Li: Okay, all right. So regarding gross margin, actually this quarter and last quarter, the reason is mainly based on the domestic gross margin drop. As I just explained, starting this year, we plan to launch high-end lead-acid motorcycles in our premium series. Normally, in domestic markets, we set a bar that the MSRP above 4,500 is our premium series, and below that is our mass premium series. And this year, our high-end lead-acid motorcycles; the cheapest model of our high-end lead-acid ones is around 4,800 RMB.
Speaker Change: Okay, alright, so all regarding towards <unk>.
Speaker Change: Gross margin actually this.
Speaker Change: This quarter and last quarter.
Speaker Change: The reason is.
Speaker Change: And the reason, it's meaning count on all of the domestic gross margin drop.
Speaker Change: As I just explained starting from this year with plans to launch the high end that assay moral cycles in our premium series nominee domestic market.
Liang Zhou: The adjusted net loss was 20 million, with a adjusted net loss margin of 2.1%. In turning to our balance sheet and cash flow, we added a quarter with 1.3 billion in cash, restricted cash term deposits and short-term investments. Last quarter, this amount was 1.2 billion and last year and was 1.1 billion. Our operating cash inflow amounted to 174 million, and we expected the operating cash flow to remain healthy going forward. The tax flow of this quarter was the outflow of 20 million, and the resulting increase of 5 million compared to the same period of last year, this can be attributed primarily to the increase in the opening of new stores in China.
We set a.
Speaker Change: A bar that MSRP MSRP of boss al.
Was that 4500 is our premium materials and below that <unk>.
Speaker Change: <unk> premiums theorist and this year, our high end Lat.
Speaker Change: Actually in motorcycles.
Speaker Change: The the.
Speaker Change: It shifted to model off of that high end of that asset.
Speaker Change: The round.
4800 RMB.
Wenjuan Zhou: So this means a lot, and we also launched the other lead-acid high-end motorcycles set the price around 6,000 to 8,000 MSRP, which is also the leader in the premium market in our premium series and also in the Chinese market. But those lead acid one growth margin is around 5% to 7% PPT growth margin less than our premium models. Normally, our premium lithium-ion one got a growth margin of around 22% to 28%. And the lead-acid one is around 5% to 7% PPT lower than our traditional premium lithium-ion one.
Zijun Li: So this means a lot, and we also launched the other lead-acid high-end motorcycles set the price around 6,000 to 8,000 MSRP, which is also the leader in the premium market in our premium series and also in the Chinese market. But those lead-acid one growth margin is around 5 to 7 PPT growth margin less than our premium models. Normally, our premium lithium-ion one got a growth margin of around 22% to 28%. And the lead-acid one is around 5 to 7 PPT lower than our traditional premium lithium-ion one.
Speaker Change: So this means a lot.
Speaker Change: We also launched the other assays.
Speaker Change: High end motorcycles.
Operator: Now, let's turn to the guidance. We expected the third quarter revenue to be in the range of 1,200 and 88 million to 1,483 million, an increase of 83 million to 40% to 60% here over the years. And please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which is subjected to change due to the uncertainties relating to various factors.
Speaker Change: Around 6000 to eight <unk>.
Solid in 2000, and the MSRP, which is also lives in be the leader in the premium market in our in our premium series and also in the <unk>.
Speaker Change: In China market.
Speaker Change: But those lab assays, one gross margin is around five to seven ppt gross margin less than our premium models normally our premium at least in my own one got the gross margin around 22% to 28% gross margin.
Operator: And with that, we're now open for the call for any questions that you may have for us. Operators, please go ahead. Thank you. We will now begin the question and answer session. To ask a question, please press star 1-1 on your telephone and wait for an MP to be announced. If you'd like to cancel requests, please press star 1-1 again. One moment for the first question.
Speaker Change: And the lead acid wise is around five to seven people killed or than our.
Speaker Change: Our traditional premium lithium ion one.
Wenjuan Zhou: This main factor drives our growth margin in the Chinese market and also, you know, in total to around three percent. And the rest of the 3%, as I just explained last quarter, that this year, since we launched the different new products fitting to different consumers, like Yan just mentioned, the Generation Z, the female ones, the lead-acid products, which are new to the market. So, we offered several points of channel profit to our distributors to thank them for their loyalty to our brand during last year and the year before last when we were facing difficulties in the domestic market.
Zijun Li: This main factor drives our growth margin in the Chinese market and also, you know, in total to around 3%. And the rest of 3%, as I just explained last quarter, that this year, since we launched different new products fitting to different consumers, like Yan just mentioned, the Generation Z, the female ones, the lead-acid products, which are new to the market. So we offered several points of data.
Speaker Change: This main factors drive our gross margin in China market and also.
In blended in total to around a three 3%.
Kai Kang: Our first question comes from Kai Kang from Citix. Please go ahead. Okay. Thank you for the opportunity. And thank you, Ms. President Lee. And thank you, President Bill. And I'm Kai Kang from the Citix security and also from the RSA. And I have two questions. And the first question, as we have mentioned, that we will have strong growth on the third quarter of the 24th. So what can we keep him to do?
Speaker Change: And the rest of us.
Speaker Change: 3% as I just explained last quarter that this this.
This year since we launched the difference Oh, new products fit into different consumers that Ken just mentioned.
Kai Kang: Do we think we can actually, in the third quarter, as our volume will be much better with scale effect. And what's the, maybe for some of the long term on the mid-term GPM, do we think we can't see what we can get? And that's the first question. Let me repeat the question. So basically, you're asking about the third quarter strong growth and you're asking about the GTN or I think I have.
Speaker Change: Generation Z the female one the lead acid products, which are new to our to.
Speaker Change: To the markets.
Speaker Change: We offered a several points off day on day.
Speaker Change:
Zijun Li: They channel profit to our distributors to thank them for their loyalty to our brand during last year and the year before last when we were facing difficulties in the domestic market. And also, you know, to boost their confidence and help us to build a more healthier sales channel in the domestic market. And that's why, you know, we were able to open new stores in the first half of this year, more than, you know, 400 new stores in the Chinese market.
Speaker Change: They are channel profit to our distributors.
J: So thanks a J.
J: Thanks for their loyalty to our brand during.
Speaker Change: During last year and the year before that that when we're facing the difficulties in the domestic market and also to boost their confidence and help us to build in the mall healthier sales channel in the domestic market and that's why we're able to open the new stores in the first half.
Wenjuan Zhou: And also to boost their confidence and help us to build a more healthy sales channel in the domestic market. And that's why we were able to open new stores in the first half of this year, more than 400 new stores in China. And those are the two major points which drag down our growth market in China. And in the meantime, in overseas markets, the kick scooter revenue contributes around 14% of our total revenues compared to only 10% last year.
Kai Kang: Yes. Yes, yes. What do you mean by GTN? The growth of market plan? The growth profit market. Okay. So regarding to the growth process, so you're asking about the reason why the growth margin drops, right? This is Fian. Yes, and the trend of the growth profit margin in the next few quarters. Okay. All right. So regarding to the growth margin, actually, this quarter and last quarter, the reason it's mainly found on the domestic growth margin drop.
Speaker Change: In the first half of this year more than.
Speaker Change: 400, new stores in China, and those are the two.
Zijun Li: And those are the two major points which, you know, drag down our growth in the Chinese market. And in the meantime, in our overseas markets, the KickSchoolers revenue contributes around 14% of our total revenue, compared to only 10% last year.
Speaker Change: A major point.
Speaker Change: Oh dragged down our gross margin in China market and in the Meanwhile, our.
Speaker Change: Overseas markets the key scooter revenue contributes around 14% of our total revenues compared to only 10%.
Speaker Change: Last year and those increased proportion of the overseas keep score. It's also dragged down our blended gross margin in total and those are the main reasons why the gross margin drop compared to last year, but for.
Zijun Li: And the increased proportion of the overseas kick scooters also drags down our branded growth margin in total. And that is the main reason why the growth margin dropped compared to last year. But you know, for the following quarter, and so when we see this, Overall, this year's guidance, we won't expect our year-end or the average annual growth margin to go back to around 22-23% as we previously did in 2021 or 2022.
Wenjuan Zhou: And the increased proportion of overseas kick scooters also, you know, drags down our blended growth margin in total. And those are the main reason why the growth margin dropped compared to last year. But you know, for the following part, and when we see this, Overall, this year's guidance, we won't expect our year-end or the average annual growth margin to go back to around 22% to 23% as we previously did in 2021 or 2022. But, you know, we expected the growth margin this year would be lower than the year before that and last year.
Kai Kang: As I just explained, starting from this year, we plan to launch the high end, that as a motorcycle in our premium series. Normally in domestic market, we set a bar that the MSRP above 4,500 is our premium series and below that is our mass premium series. And this year, our high end, let's add the motorcycles, the cheapest model of our high end, let's add this one. It's around 4,800 RMB. So this means, and we also launched the other, you know, lead assets, high end motorcycles that the price around 6,000 to 6,000 to 8,000 MSRP, which is also lead in the leader in the premium market in our premium series and also, you know, in the China market.
Speaker Change: For the following floors and so when we see the.
Speaker Change: Overall this year's guidance.
Speaker Change: We won't expect the hour.
Speaker Change: By year end, all the average annual gross margin go back to around 22% to 23% previously.
Speaker Change: Did in 2021 or 2022 but you know are we.
Zijun Li: But we expected the growth margin this year would be lower than the year before that and last year, but still, we know it will remain at a higher level when we compare it to all competitors in China schools. This is the, hope this will answer your question.
Speaker Change: We expect that gross margin this year would be lower than our than the year before that and last year, but still what we know will remain at the higher level, when we compare to our competitors in India and China scooters market.
Wenjuan Zhou: But still, you know, we'll remain at a higher level when we compare to our competitors in the Chinese scooter market. This is the hope, hope, hope this will answer a question. Thanks a lot.
Speaker Change: This is the hope this will answer your question.
Wenjuan Zhou: I see the trend on this margin. And you also mentioned the new shops and new data networks that we are expanding in China. So do we now have a higher target for the data network volume or shop volume in China at the end of this year? Or what's the target for the data network?
Kai Kang: Thanks a lot. I see the trend on this margin. And you also mentioned the new shops and new data networks that we are expanding in China. So do we now have a higher target for the data network volume or shop volume in China at the end of this year? Or what's the target for the data network?
Speaker Change: Thanks, a lot.
Speaker Change: Trend on just margin.
Speaker Change: And also you also mentioned about the new shops and annuity that works.
Speaker Change: Pending in China, So and so do we now have a higher target on volume.
Speaker Change: Volume a sophomore in China at the end of this year.
Kai Kang: But those lead assets, one, growth margin is around 5,000 to 7,000 PBG, growth margin less than our premium models. Normally, our premium, at least in my own one, got the growth margin around 22% to 28% growth margin. And the lead asset one is around, you know, 5 to 7,000 PBG lower than our traditional premium item I own one. This main factor strived our growth margin in China market and also, you know, in planted in total to around 3%, and the rest 3% of the logistics lines last quarter, that this year since we launched the different new products, fitting to different consumers.
Speaker Change: What's the target.
Speaker Change: Does that work.
Wenjuan Zhou: I think the goal is actually to at least add another roughly another thousand stores this year, you know, in addition to the existing ones we have. I think in the first half, we opened up you know 400 plus stores, but also, I think we shut down about 100 something, so basically that results in a net add of close to 300 stores. I think the rest of Luqian, You know, basically what we need to do for Q3.
Speaker Change: I think the goal is actually true.
Speaker Change: To add another rocket in almost all of the stores this year.
Speaker Change: In addition to the existing ones, who have I think the first half.
Yan Li: I think the goal is actually to at least add another, roughly another thousand stores this year in addition to the existing ones we have. I think in the first half, we opened up 400-plus stores, but also, I think we shut down about 100-something. So basically, that resulted in a net add of close to 300 stores. I think the rest that we're looking at is basically what we need to do for Q3 and Q4.
Speaker Change: Okay.
Speaker Change: No the 400 plus stores, but also I think we were shut down or something so basically because that result.
Speaker Change: So.
Speaker Change: Close to 300 stores. So I think the rest of it. We're looking at is basically would have been used to for Q3 and Q4.
Operator: Thank you. It's very clear, and thank you. Thank you for the questions. Our next question comes from James Zhou from UBS. Please go ahead.
Wenjuan Zhou: Thank you. It's very clear, and thank you. Thank you for the questions. Our next question comes from James Zhou from UBS. Please go ahead, their management.
Speaker Change: Well, thank you very clear thank.
Speaker Change: Thank you.
Speaker Change: Thank you for the questions.
Operator: Thank you for the questions. Our next question comes from the line of James Zhou from UBS. Please go ahead.
Speaker Change: Our next question comes from the line with James Joe from UBS. Please go ahead.
Operator: The Air Management.
James Joe: As Dan mentioned and thanks for taking my questions.
James Zhou: Thanks for taking my questions. I have one question. And we all know that the new national standard is about to roll out in a few months. So there are any comments on the potential policy and maybe its impact on the high-end integrated markets we are in? Well, I think we're still very closely monitored and are actually looking to study this new national standard. I think it has basically done the basics, the standard has some key things around battery safety, which actually may.
James Joe: One question.
Speaker Change: So deep.
James Joe: I know that the new National standard is about your quality of few months. So there is any comments on the potential policy and maybe its impact on the heightened in two Wheeler markets. We're in.
Kai Kang: Let me just mention the generation Z, the female one, the lead asset products which are new to the market. So, we offered several points of the channel profits to our distributors, to thanks for their loyalty to our brand during last year and the year before last, when we're fixing the difficulties in the domestic market. And also, to boost their competence and help us to build in the more healthier sales channel in the domestic market.
James Joe: Yeah.
Speaker Change: Well I think we're still very closely you know.
Yan Li: Well, I think we're still very closely, you know, monitoring and actually looking into studies this new national standard. I think it has, basically, it has some key things around battery safety, which actually, you know, may Actually, I think it will be really positive news for us and also, you know, have the standard also have some requirements on sort of, you know, the design form factors. So our design team is actually really looking into the standard and, in the process, basically, are developing products that meet new standards. So... You know, in terms of the impact, you know, I guess Wenjuan Zhou, Yan Li, Zijun Li, Niu Technologies Sponsored ADR Class A, Just to watch it.
Speaker Change: <unk> actually looking studying the new national standard I think that it has to basically.
Speaker Change: Understand there has some key things their own battery <unk>.
Speaker Change: Which actually you know me.
Yan Li: Actually, I think it will be actually positive news for us and also, you know, have the standard also have some requirements on sort of, you know, the design form factors. So our design team is actually really looking into the standard and actually, in the process, basically, our developing product meeting new standards. So... In terms of the impact, you know, I guess we just have to watch, OK.
Speaker Change: Actually I think will be actually positive news for us.
Speaker Change: And also Uh huh.
Speaker Change: Then it also have some requirement on sort of you know that.
Speaker Change: Time form factors still already 19th century, really looking to the standard and actually.
Kai Kang: And that's why we're able to open the new stores in the first half, in the first half of this year, more than 400 new stores in China market. And those are the two major points which drag down our growth margin in China market. And in the main world, our overseas market, the Kickstarter's revenue contributes around 14% of our total revenues compared to only 10% last year. And those increased proportion of the overseas kick scooters also drag down our land growth margin in total.
Speaker Change: In the process basically aren't developing product that meeting the new standards.
Speaker Change: So.
Speaker Change: In terms of the impact I guess.
Speaker Change: We had to.
Speaker Change: Just to watch and see.
Speaker Change: Okay.
Speaker Change: Okay. Thank you.
Operator: Thank you. Thank you for the questions. Once again, to ask questions, please press star 11. One moment for the next question. Our next question comes from the line Yating Chen from CICC. Please go ahead. Chen, your line is open, you may unmute locally.
Speaker Change: Thank you for the questions once again to ask a question. Please press star one.
Operator: Thank you for the questions. Once again, to ask questions, please press Star 11. One moment for the next question. Our next question comes from the line Yating Chen from CICC. Please go ahead. Please check your line is open. You may unmute locally.
Speaker Change: One moment for the next questions.
Speaker Change: Our next question comes from the line of Yadkin Chin from CIBC. Please go ahead.
Kai Kang: And those are the main reason why the growth margin dropped compared to last year. But for the following quarter, and so when we see this overall, this year's guidance, we won't expect our year end or the average annual growth margin go back to around 22% to be, you know, this in 2021 or 2022. But you know, we expect that we'll smart in this year would be lower than, you know, the year before last and last year.
Speaker Change: Your line is open debate on mute locally.
Operator: Oh, hello. Good evening. I'm Yating from CSCC.
Yating Chen: Oh, hello. Good evening.
Speaker Change: Hello.
Speaker Change: And Jackson from SEC and my first question is on.
Yating Chen: I'm Yating from CSCC. And my first question is, what is your expected gross margin for kick scooters in the mid to long term? Because we can see that the gross margin for kick scooters may be lower than for scooters in domestic markets. So how can we improve the gross margin for kick scooters? And what is your expectation of it?
Yating Chen: And my first question is, what is your expected gross margin of kick scooters in the mid to long term? Because we can see that the gross margin of kick scooters may be lower than that of scooters in domestic markets. So how can we improve the gross margin of kick scooters? And what is your expectation of it? Well, this is Fiong.
Yadkin Chin: What is your expected gross margin uptake scooters.
Speaker Change: In the mid to long term because we can see that the gross margin of Keith scooters may be low years.
Speaker Change: Then there's scooters in domestic market.
Speaker Change: So how can we improve the gross margin peak scooters.
Speaker Change: What is your expectation.
Kai Kang: But still, you know, we'll remain at the higher level when we compare to our competitors in China scooter's market. This is the hope of this will answer a question. Thanks a lot, I see the trend on this margin. And also you also mentioned about the new shops and new dealer networks that we are expanding in China. So, and so do we now have a higher target on the dealer network volume or shop volume in China at the end of this year, or was the target on the dealer network?
Speaker Change: Oh, well this is <unk> I'll answer this question actually on our cheeks towards gross margin remained almost stable for the past this way quarter when our sales volume.
Wenjuan Zhou: I'll answer this question. Actually, you know, our kick source growth margin remained almost stable for the past three quarters when our sales volume ramped up to around 40,000 units per quarter. And in the meantime, the other reason why the growth margin remains stable is that we set up a stable partnership with our overseas sales partners. Like Yan just mentioned, in the U.S., Best Buy, Wal-Mart, and also, you know, in the U.S., the major electronic markets like MediaMarkt, those big partners.
Zijun Li: Well, this is Jiang. I'll answer this question. Actually, you know, our kick source growth margin remained almost stable for the past three quarters when our sales volume ramped up to around 40,000 units per quarter. And in the meantime, the other reason why the growth margin remains stable is that we set up a stable partnership with our overseas sales partners. Like Jiang just mentioned, in the U.S., Best Buy, Walmart, and also, you know, in the U.S., the major electronic markets like MediaMarkt, those big partners.
Speaker Change: Ramped up to around a.
Speaker Change: 40000 units per quarter.
And in the Meanwhile.
Speaker Change: The other reason why the gross margin remained stable as that we set up a stable a partnership with our overseas sales.
Speaker Change: Sales partners.
Dan: Dan just mentioned in a in U S. The best buy Walmart and also you know.
Dan: And the new the major electronic margins like they are media March though with big partners.
Kai Kang: I think the goal is actually to add another, roughly another thousand stores this year, you know, in addition to the existing ones we have. I think the first half, I mean, we opened up, you know, 400-plus stores, but also, I think we shut down about 100-something. So basically that is not as close to 300 stores. I think the rest of what we're looking at is, you know, basically what we need to do for Q3 and Q4. Well, thank you very much. Clear and thank you. Thank you for the questions.
Wenjuan Zhou: But our kick scooter business is still at the very beginning stage. This year, we don't expect a huge increase compared to last year, or we won't make a market somebody in those countries. We still expect that, you know, once our sales volume reaches around 0.5 million sales volume in total in the overseas market, we will be able to see the scale of economic benefits from the production cost and also, you know, the bargaining power in the shipping and logistics cost.
Speaker Change: But this is about our kick scooter business is still at the very beginning stage. Even this year, we don't expect a huge increased compared to last year, our we made eight markets.
Zijun Li: But this is about our kick scooter business is still at the very beginning stage. Even this year, we don't expect a huge increase compared to last year, or we have made a market somebody in those countries. We still expect that, you know, once when our sales volume reach around 0.5 million sales volume in total in the overseas market, we are able to see the scale of the economy benefits from the production cost.
Speaker Change: Anybody in the in those countries, we still expect that one when our sales volume reached around two.
Speaker Change: Is there a point 5 million sales volume in total in the overseas market, we are able to see the the scale of economy benefits from their production cost and also you know the on the bargaining power in the shipping and logistics.
James Zhou: Our next questions come from the line of James Zhou from UBS. Please go ahead. Well, I think we're still very closely, you know, monitor and actually looking study in this new national standard. I think it has a, you know, basically, it has the standard has some key things around battery safety, which actually, you know, may actually I think will be actually positive news for us. And also, you know, have the standard also have some requirement on sort of design form factors. So our design team is actually really looking into the standard and actually in the process basically are developing products that meeting new standards.
Peter Costa: Peter Costa.
Wenjuan Zhou: But, you know, below those sales volumes, since we sell them, you know, across the U.S. and the EU, there is no strong benefit from the cost reduction way for us. And in the meantime, we didn't expect the kick scooter as a profit stream for our company. We still see the kick scooter as a strategic footprint for our, you know, micro-mobility and our mobility business in developed countries, to reinforce our brand and to help us build up the brand image compared with our motorcycles. And that's why, you know, we didn't put such harsh pressure on the kick scooters' profitability.
Zijun Li: And also, you know, the bargaining power in the shipping and logistic costs. But, you know, below those sales volumes, since we sell it, you know, across the U.S. and the EU, there is no strong benefit from the cost reduction for us. And in the meantime, we didn't expect the kick scooter to be a profit stream for our company. We still see the kick scooter as a strategic footprint for our, you know, micro-mobility and our mobility business in developed countries, to reinforce our brand and to help us build up the brand image compared with our motorcycles. And that's why, you know, we didn't put, you know, harsh pressure on the kick scooter profitability. I hope this will answer your question.
Speaker Change: The low dose sales of audio and since we sell it. So you know across the U S. N D I knew Ah they already know.
Speaker Change: Our strong benefits from the cost reduction way for us and and in the meantime, we did expect the keep scooter S. B all profits.
Speaker Change: As they as they profit screen to our company, we still see the kick scooter at the strategic.
Speaker Change: Footprint far you know micro mobility.
Speaker Change: Our mobility business in the in the developed countries to reinforce our friends and to help us build up there.
Speaker Change: Brand image, all compared with our motorcycles and that's why we didn't put you know a hush.
Operator: So, you know, in terms of the impact, you know, I guess we had to just watch and see. Okay, thank you. Thank you for the questions. Once again to ask questions, please press star 111. One moment for the next questions.
Speaker Change: Pressure on the Kids school, there's profit bullish.
Yating Chen: I hope this will answer your question. Thank you. It's very clear.
Speaker Change: Hopefully this will answer your question.
Wenjuan Zhou: And my second question is about the expense ratio, because we have seen a downward trend in operating expense ratio in quarter two. So, will it continue to decline in the second half of the year, quarter to quarter? Yes, for sure.
Yating Chen: Thank you. It's very clear. And my second question is about the expense ratio, because we have seen a downward trend in operating expense ratio in Q2. So, will it continue to decline in the second half of the year, quarter to quarter?
Speaker Change: Thank you.
Speaker Change: And my second question.
Speaker Change: It is about it.
Our expense ratio, because we have seen a downward trend in operating expense ratio in quarter two.
Yating Chen: Our next question comes from the line of Yating Chen from CIC. Please go ahead. Which and your lines open. You may unmute locally. Oh, hello. Good evening.
Speaker Change: So will it continue to decline in the second half of the year.
Speaker Change: Quarter to quarter.
Speaker Change: Yes for sure.
Wenjuan Zhou: Once when our revenue increases and we get back on the right track in the growth of our business, those expenses as a percentage of revenue will drop dramatically. Since last year, we have already done cost reduction and improved our operating efficiency in the second half of last year. Normally, you know, the expenses as kind of the fixed cost or fixed expenses are at the lowest level for our production and our business scale.
Zijun Li: Yes, for sure. Once our revenue increases, and we, you know, we get back to the right track in the growth of our business, those expenses as a percentage of revenue will drop dramatically. Since last year, we have already done cost reduction and improved our operating efficiency in the second half of last year. Normally, the expenses, kind of fixed cost or fixed expenses, are at the lowest level for our production and our business scale.
Remy: You know once one now Remy, we increased AR and we you know we get back to the right track in the eye.
Speaker Change: And the wealth of our business those expenses as a percentage of revenue will drop dramatically. Since you know last year, we already done the cost reduction and improved our operating efficiency at the second half of last year normally you get all the expense.
Yating Chen: I'm Yating from CIC and the my first question is what is your expected growth margin of kick scooters in the lead to long term, because we can see that the growth margin of kick scooters may be lower than then scooters in domestic markets. So how can we improve the growth margin of kick scooters and what is your expectation of it? Well, this is the answer to this question. Actually, you know, our kick scooters growth margin remain almost stable for the past three quarters.
This as kind of the fixed costs are fixed expenses are at the lowest level to our production in our business our scale and this year the only thing.
Wenjuan Zhou: And this year, the only thing that will be changed is the only expenses will be changed aligned with our revenue are the selling and marketing expenses. For the R&D and G&A, since the revenue increase, those expenses as a percentage of revenue were dropped. And this year, we expect even the annual OPEX as a percentage of revenue to drop dramatically compared to last year. We'll be back to the same level as the year before last, which is annually around 16% to 20%. Our normal level for the annual OPEX as a percentage of revenue.
Zijun Li: And this year, the only thing that will be changed is the only expenses will be changed aligned with our revenue are the selling and marketing expenses. For the R&D and G&A, since the revenue increase, those expenses as a percentage of revenue were dropped. And this year, we expect even the annual OPEX as a percentage of revenue will drop dramatically compared to last year. We'll be back to the same level as the year before last, which is around 16% to 20%. Our normal level for the annual OPEX.
It will be will be changed with the only expenses will be changed the aligned with our revenue is the selling and marketing expenses for the R&D and G&A are since.
Yating Chen: When our sales volume rents up to around 40,000 units per quarter. And in the meanwhile, the other reason why the growth margin remains stable is that we set up a stable partnership with our overseas sales partners. Like Jens just mentioned in the US, the best firewall mask. And also, you know, in the major electronic markets, like the medium markets, those big partners. But our Kickstarter business is still at the very beginning stage, even this year we don't expect a huge increase compared to last year or we made a market somebody in those countries.
Speaker Change: Since the revenue increase those expenses out of <unk> as a percentage of revenue were dropped and this year we expect.
Speaker Change: Even the and new opec's as percentage of revenue will drop dramatically compared to last year well will be.
Speaker Change: Back to the same level as the year before last year, which is around you know annually around 16% to 20% is our normal level.
Speaker Change: For the annual Opex as a percentage of revenue.
Speaker Change: Yeah.
Yating Chen: Thank you very much. That's all my questions, and we are looking forward to the earnings in the next two quarters. Thank you very much. Thank you for the questions. Once again, to ask questions, please press Star 11.
Yating Chen: Thank you very much. That's all my questions, and we are looking forward to the earnings in the next two quarters. Thank you very much.
Speaker Change:
Speaker Change: Thank you very much that's all my questions and we're looking forward to the.
Speaker Change: Earnings in next two quarters. Thank you very much.
Operator: Thank you for the questions. Once again, to ask questions, please press star 11. Thank you. Since there are no more questions in the question queue, let me turn the call back to Mr. Li for closing remarks.
Speaker Change: Okay.
Yan Li: Thank you. Since there are no more questions in the question queue, let me turn the call back to Mr. Li for closing remarks. All right.
Speaker Change: Thank you for the questions.
Speaker Change: Once again to ask question. Please press star one.
Speaker Change: Thank you seeing no more questions in the question queue, Let me turn the call back to Mr. Li for closing remarks.
Yating Chen: We still expect that once, when our sales volume reaches around 0.5 million sales volume in total in the overseas market, we are able to see the scale of economy benefits from their production cost. And also the buying power in the shipping and logistics cost. But below those sales volume, since we sell it across the US and the EU, there is no strong benefit from the cost reduction way for us. And in the meantime, we didn't expect the Kickstarter as a profit stream to our company.
Operator: Thank you, operator. And thank you all for participating in 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. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now...
Yan Li: Alright, thank you operator and thank you all for participating in 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.
Mr. Li: Alright, Thank you operator, and thank you all for participating on today's call nuclear support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines.
Speaker Change: Ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect your lines.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Yating Chen: We still see the Kickstarter as the strategic footprint for micro mobility business in the developed countries to reinforce our brand. And to help us build out the brand image compared with our motorcycles. And that's why we didn't put a harsh pressure on the Kickstarter's profitability. Hope this will answer your question. Thank you. It's very clear.
Yating Chen: And my second question is about expense ratio because we have seen about what trend in operating expense ratio in quarter two. So it's continued to decline in the second half of the year quarter to quarter. Yes, for sure. Once when our revenue increased and we get back to the right track in the world of our business, those expenses as percentage of revenue will drop dramatically. Since you know last year, we already done the cost reduction and improved our operating efficiency at the second half of last year.
Yating Chen: Normally, you know, the expenses as kind of the fixed cost of fixed expenses are at the lowest level to our production and our business scale. And this year, the only thing will be will be changed with the only expenses will be changed aligned with our revenue is the salient marketing expenses for the R&D and GNN since the revenue increase, those expenses of as percentage of revenue will drop. And this year, we expect even the annual OPEX as percentage of revenue will drop dramatically compared to last year, will be back to the same level as the year before last, which is around, you know, annually around 16 to 20% is normal level for the annual OPEX, as a percentage of revenue. Thank you very much.
Yating Chen: That's all my questions and we are looking forward to the earnings in next year. Thank you very much. Thank you for the questions. Once again to ask questions, please press star 11. Thank you.
Liang Zhou: Seeing no more questions and the questions, let me turn the call back to Mr. Li for closing remarks. Thank you all for participating on today's call and for your support. We'll appreciate your interest and look forward to reporting to you again next quarter on our program. Thank you.
Speaker Change: Yes.
Speaker Change: [music].
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines. Thank you. Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A[inaudible] Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A Niu Technologies Sponsored ADR Class A
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