Q1 2025 Niu Technologies Earnings Call
Operator: Good day, ladies and gentlemen.
Okay.
Speaker Change: Good day, ladies and gentlemen, thank you for standing by and welcome to the knee whole Technologies' first quarter 2025 earnings conference call.
Operator: Thank you for standing by, and welcome to the NIHOR Technologies First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: Later, we will conduct a question and answer session and instructions will follow at that time.
Operator: As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.
Speaker Change: As a reminder, we all the court in today's call. If you have any objections you may disconnect at this time.
Kristal Li: Now, I will turn the call over to Ms. Kristal Li, Investor Relations Manager of NIHOR Technologies. Ms. Li, please go ahead. Thank you, Operator. Hello, everyone.
Speaker Change: Now I will turn the call over to Mr. Crystal Li Investor Relations manager of me holding that technologies Ms. Li. Please go ahead.
Speaker Change: Thank you operator, Hello, everyone welcome to today's conference call to discuss Mueller Technologies' results for the first quarter to 10 to 25.
Kristal Li: Welcome to today's conference call to discuss Niu Technologies' results for the first quarter of 2025. The earnings press release, corporate presentation, and financial spreadsheet have been posted on our Investor in Relations website. This call is being webcast from our company's IRS site as well, and a replay of the call will be available soon.
Speaker Change: Those got released quite a broad population of financial Scrushy had been posted a remastering of liberation front side.
Speaker Change: Cosby laptops from all the companies I always thought as well.
Speaker Change: Lay up the call will be available soon.
Kristal Li: Please note, today's discussion will contain forward-looking statements made under the Safe Harbor Prohibitions 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 suing with the Security and Exchange Commission. The company does not assume any obligation to update any forward-looking statements 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 private Securities Litigation Reform Act of 90 95.
Speaker Change: Whoever placed in multimode risks uncertainties assumptions and other factors.
Speaker Change: Actual results may be materially different from those expressed today.
Speaker Change: Further information regarding the risk factors is included in the Companys public filings with the security and Exchange Commission.
Speaker Change: No. It's I assume any obligation to update any forward looking statements, except as required by law.
Kristal Li: Our earnest press release and this call included a discussion of certain non-gap financial measures. The press release contained a definition of non-gap financial measures and the reconciliation of gap-to-non-gap financial results.
Speaker Change: All of our earnings press release and this call include a discussion of certain non-GAAP financial measure.
Speaker Change: So culturally it's controlling a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.
Kristal Li: On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Bian Zhou.
Phil Jones: On the call with me today are all the C O Doctor Yodlee and CFO Phil Jones.
Yan Li: Now, let me turn the call over to CEO, Yan Li. Thank you, Kristal. Hello, everyone. Thank you for joining us. In the first quarter of 2025, we will achieve a total sales volume of 203,000 units. Marking a significant 57.4% year-on-year growth. Behind its strong performance was a 66% year-on-year increase in sales volume in the China market and a 6.4% year-on-year growth in overall sales volume. Total revenue for the first quarter reached RMB 682 million, reflecting a 35% increase compared with the same period last year. The Gross Margin rebounded to 17.3% with 4.9% year-on-year increase. Primarily driven by the pump cost reduction in product platformization, component standardization, and procurement cost.
Speaker Change: Now, let me turn the call over to see at all yet.
Speaker Change: Thank you Christopher Hello, everyone. Thank you for joining us.
Speaker Change: In the first quarter of 2025 will exceed the total sales volume of 203000 units.
Speaker Change: He has significant at 57, 4% year over year growth.
Speaker Change: This strong performance was a 66% year over year.
Speaker Change: Sales volume in the China market.
Speaker Change: And at six 4% in your gross.
Speaker Change: Total revenue for the first quarter reached.
Speaker Change: To RMB 682 million, reflecting 35% increase compared with same period last year.
Speaker Change: The gross margin rebounded to 17, 3% with four 9% year over year increase.
Speaker Change: Primarily to be by the pump cost reduction product.
Speaker Change: Component standardization not particular coffee program.
Yan Li: The performance improvement in 2025 has set a tone for the rest of the year, underlining our drive for high volume and revenue growth as well as the possibility Taking a closer look at our performance in China, sales volume reached to 183,000 units in this quarter. Our focus product portfolio strategy emphasizes on technology innovation and expanding sales channels as well as targeting marketing strategy for the key drivers to the strong domestic In Q1 2025, we maintain our focus in our key product strategy of N, M, U, and F series. We enhance our existing products through upgrading and refining our product portfolio, which led to optimized product mix and offer our customers an even more enjoyable riding experience.
Speaker Change: The pro forma in Q1 2025 has set the tone for the rest of the year underlying driver for high volume high revenue growth.
Speaker Change: As well as a profitability improvement.
Speaker Change: A closer look out.
Speaker Change: China sales.
Speaker Change: 283000 units this quarter.
Speaker Change: Uh huh.
This strategy is effective.
Speaker Change: On technology innovation, and expanding sales channels as well.
Speaker Change: Targeted marketing strategies, what are the key drivers to the strong.
Speaker Change: Strong domestic performance.
Speaker Change: In Q1, 2025, we maintain our focus in our key product strategy.
Speaker Change: And last years.
Speaker Change: We have our existing products to upgrading and refining our product portfolio.
Speaker Change: Which led to optimize the product mix and offer our customers even more enjoyable riding experience.
Yan Li: Additionally, we step up our motorcycle offerings, introduce models like NX, NL, and FX. The expansion diversifies our electric motorcycle range and helps to broaden our sales. First, we successfully launched a comprehensive range of electric motorcycles. including the NX, ML, and FX series. Spending price range from RMB4000 plus to over RMB10,000 Each model features significant enhancement in functionality and smart technologies, aligning with our new performance and safety standards. Those additions have significantly expanded our electric motorcycle portfolio, offering consumers more diverse options while reinforcing our position as a premium brand in the electric two-wheelers.
Speaker Change: Additionally, we step up our offerings introduce model.
Speaker Change: Ex FX.
Speaker Change: FX.
Speaker Change: Expansion diversify our electric motorcycle range and helped to broaden our sales channels.
Speaker Change: The first was successfully launched a comprehensive electric.
Speaker Change: Electric motorcycles.
Speaker Change: <unk> doesn't act.
Speaker Change: Next year's spending price range from RMB, 4000, plus or RMB 10000.
Speaker Change: Each model feature significantly fashion.
Speaker Change: Functionality on the smart technologies, aligning with our new performance and safety standards.
Speaker Change: Those are the issues of some significant spend all electric models that portfolio offering consumers more diverse options Walgreens.
Speaker Change: So our position on premium brands.
Speaker Change: Electric two wheelers sector.
Yan Li: To delve into detail of each product, on March 21st, we first launched the NX Pro motorcycle, priced at RMB 9,999, positioned as the speed champion among the sub-10,000 RMB electric motorcycles. It's equipped with a 72V, 42Ah high-energy DCM battery, offering a range of over 90km on one charge. Powered by a motor with a peak power of 6kW under a boosted battery. It has a top speed of 80 km per hour and accelerates from 0 to 50 km per hour. The 8Ah Intelligent Fast Charging System allows for full charging in only 5 hours. The NX Pro received around 2,000 quick orders and set a sales record on platforms like Douyin, JD.com, and Tmall on its launch.
Speaker Change: So that means with detail.
Speaker Change: On March 21st with first launched next control motorcycle price to RMB 9999 positioning at the speech empty among the sub 10000 RMB electric motorcycles.
Speaker Change: Quickly 72 boats 42 at our high energy lithium batteries.
Speaker Change: Offering a range of <unk> 90 kilometers on my charge powered by Im wondering what the peak power at six kilowatts and boost mode.
Speaker Change: It's a tough <unk> humor meters powers and accelerates from zero to 50.
Speaker Change: $5 four seconds so.
Speaker Change: Empower intelligence fast charging system allows for a full charge of 25 hours.
Speaker Change: The unmatched pro received around 2000 Creek orders sales, Greg for a platform like <unk>.
Speaker Change: <unk> dot com and Tmall launch date.
Yan Li: This model has established itself as a pioneer in the high-end two-wheel motorcycle market, reinforced news reputation for high performance, and attracting a younger demographic that values speed and efficiency. significantly boosts our presence in the premium electric motor tech.
Speaker Change: This model has established itself as a pioneer in the high end two wheel motorcycle market, great Sports news reputation for high performance and attracting a younger demographics that ISP in the relationship.
Speaker Change: It's significantly boost our presence in the premium electric motorcycle Sigma.
Yan Li: We also launched our entry-level NL smart electric motorcycles. Key upgrades include enlarged footboards, extended seats, and expanded storage compartments. It comes equipped with advanced intelligent features such as full-color display, TFT display with a screen measuring navigation, as well as OKGO and GOES-EZ technology. Powered by a 2,000-watt peak power motor, the Unmao reaches a top speed of 35 km per hour and includes a TCS as a standard feature. Priced at RMB4,799, it offers a compelling combination of performance, smart technology, and affordability.
Speaker Change: We also launched our entry level and L. A smart electric motorcycles kiosk. We include a large foot board extended seats and expanded storage compartment.
Speaker Change: It comes from quicker with advanced intelligent features such as full color display do you have to get used to play with the Squibb Fisher major.
Speaker Change: Navigation.
Speaker Change: Okay go ahead to go with easy technologies.
Speaker Change: Power by 2000 Watts of peak power owner outreach tough speed up two five kilometer power.
Speaker Change: Who the Tcs at the center features.
Speaker Change: The RMB 4799 offers a compelling combination performance Mark Mcnulty and affordability.
Yan Li: We also expanded our F-series with the FX-Pro, FX-Force, and FX-City, completing the F-series product lineup on the model stacker side. With their bold, aggressive design, those models now come with enhanced features, such as full-color TFT display. Expanded Battery Compartments, 72V 42Ah Lithium Batteries, 72V 35Ah Li-Ion Batteries Deliver 45% Increase in Top Speed and 72% Boost in Peak Input Power The S-series also features dual-channel ABS and a magic wheel, which significantly enhances playability and ease of operation. Establishing F-Series as a performance powerhouse We launched our series on May 13 across platforms such as Tmall, JD, and Douyin, and the series is set to be released starting Q2.
Speaker Change: We also expand our F series was the FX Pro sports and FX C D completing product lineup on the more satisfied.
Speaker Change: With their full aggressive design those model now come with enhanced features such as full color display.
Speaker Change: Expanded battery compartments.
Speaker Change: Great option.
Speaker Change: 72, both 40 to empower became batteries, where 72, both 35 empower the asset batteries. Those models delivered 45 increase in the top speed and a 70, 572% boosting the input power.
Speaker Change: So I'm curious also featured two channel Aps and the magic will which significantly enhanced capability on the use of the operation.
Speaker Change: Establishing <unk> as a pro forma powerhouse.
Speaker Change: We launched on.
On may 13th cross platforms, such as Tmall JD Soe.
Speaker Change: This series et cetera.
Speaker Change: Starting in Q2.
Yan Li: Now besides the electric motorcycles, we have also integrated those technologies into our electric bicycle lineup, elevating the category with innovation technologies. We start with the popular signature electric bicycle models such as an XT, an LT, an MT, and an MM. Those approaches bring a premium electric motorcycle experience to the electric bicycle category. The NICT Longchuan on March 21st stands out as the first light-asset electric bicycle equipped with dual-channel ABS, a 12-inch full-disc motor, and a standard Boost Longchuan The NXT similarly incorporates top-tier electric motorcycle features. Those advancements have made a highly favored choice among the consumers, setting a new benchmark in the electric bicycle market.
Speaker Change: Now besides the electric motorcycles, we have also integrate those technologies into our relax <unk> electric bicycle elevating the category with innovation technologies.
Speaker Change: With that was popular signature electric bikes model, that's right and S. P.
Speaker Change: L P N P and M T.
Speaker Change: Approach for a premium electric motorcycle experience truly electric bicycle categories.
Speaker Change: The long term the March 'twenty one.
Speaker Change: Firstly, the electric bicycle you quickly dual channel Etfs 12 inch for this quarter and extend their post launch mode.
Speaker Change: Next he is sitting with the corporate the top tier electric motorcycle features.
Speaker Change: That's been has made a highly favorite choice among the customers setting a new benchmark in the electric bicycle market.
Yan Li: Now we also unveiled two new models under the M-series targeting the female users, the MT and MM. The MT stands out for its ultra-compact design, vibrant color options, and user-friendly features like the GoPiGo system. making it especially suitable for female users seeking convenience and style The MMT, a smaller model, embraces the iconic M-series design with fresh, colorful aesthetics and a comfortable writing experience tailored to a diverse preference of Gen Z female users As part of targeting those demographics, the M3 accounted for an impressive 32% sales in Q1, reinforcing its appeal and market success.
Speaker Change: Now we also unveiled two new models under the M series targeting female users the MTN mfg.
Speaker Change: M T standoff with ultra compact design, a vibrant color options and user friendly features that both ecosystems.
Speaker Change: Makes me, especially to local users seeking convenience of style.
Speaker Change: And then T a smaller model.
Speaker Change: The iconic N series design with a fresh colorful aesthetics and a comfortable riding experience tailored to a diverse preference of January female users.
Speaker Change: As part of aligning like targeting those demographics M series accounted for a price of 32% of sales in Q1 reinforces its appeal in the market success.
Yan Li: Now in Q1, our strategic emphasis on standardizing those key product platforms has shown a sign of progress. It enhances our R&D process and also reduces our bomb cost, contributing a significant improvement of our gross margin in the China market. The positive impact is evident in Q1 2025. Besides the product, we also rolled out a series of features in smart technologies, such as a full-function 5-inch TFT display, the Magic Wheel, all those focusing on seamless driving experience, AI smart control assistance, and AI smart ecosystem features. Also in terms of driving safety, we have partnered with Skullville Maps to develop an industry-pioneered data-driven Dynamic Safety Warning System.
Speaker Change: Now in Q1 are certainly strategic.
Speaker Change: Strategic emphasis on standardized key product platforms.
Speaker Change: Fair enough progress the handful of R&D process and also reduce our bom cost contributing a significant improvement of our gross margin in the China market.
Speaker Change: The impact was evident in Q1 2025.
Speaker Change: Besides the product, but also to roll out a series of featured smart technology, such as a full function by each TMT display.
Speaker Change: The magic will all those focusing on seamless driving experience smart control assistance.
Speaker Change: Martin.
Speaker Change: System features also in terms of driving 50 without a partner with scalzo maps to deal out the industry pioneer data driven dynamic 60 warning system the system for citizens and events functionality to include glass box warning.
Yan Li: The system facilitates advanced functionalities including blind spot warning, rear vehicle approach warning, and AI-piloted traffic light navigation. This has already been implemented in our new NX and NXT models, with more advanced features to be released in Q2 and Q3 this year. We are aiming at a significantly enhanced riding safety and uplifting overall riding experience for our customers.
Speaker Change: A rare vehicle approach warnings that AI pilot that traffic like navigation.
Speaker Change: This has already been implementing our new Nx and ex T models with more advanced feature to be released in Q2 Q3. This year, we're aiming at a significantly enhanced right, even 50, an uplifting or riding experience for our customers.
Yan Li: Last quarter, we also continued to enhance our brand influence of our products among the target consumer groups, especially the premium consumers and Gen Z riders. On March 21st, the launch of our NX Pro was marked by a strategic partnership with a renowned game, Game for Peace. This collaboration introduced a new cup-raising tournament within the game, which quickly topped the trending list on platforms like Weibo, Douyin, and Xiaobai. The advertising campaign spent over 115,000 placements across 16 major cities, targeting prominent landmarks, key business districts and subway systems, and offices in elevators garnering over 2.4 billion views.
Speaker Change: Last quarter, we also continued to enhance our credit influenced our products among the target customer groups, especially the premium consumers and Gen Z writers on March 21st the lockup.
Speaker Change: <unk> Pro was marked by a strategic partnership with a known gave gave for peace. This collaboration introduced a new Cup racing tournament within the game, which quickly top the trending lives on platform like wastewater in that shopping through the advertising.
Speaker Change: Advertising campaign spend over a 100 <unk> hundred 110, <unk> hundred <unk>.
Speaker Change: 15000 placement across 60 major cities.
Speaker Change: Targeting prominent landmarks key business district in the subway systems in Opex and elevators, garnering over $2 4 billion views.
Yan Li: Also on May 13th, we will debut our electric motorcycle matrix product targeting the premium users and jazzy users. with the NX and also the FF series. The launch became a milestone in 2025, with document sales of over RMB 100 million sales in just the first five hours and a volume of 10,000 units plus.
Speaker Change: Also on May 13th with our electric motorcycle matrix product targeting the premium users and Jeremy users.
Speaker Change: And also the FX jus the lunch become a milestone in 2000 quantified with documents still sell over RMB 100 million sale of <unk> versus <unk>.
Speaker Change: Five hours and avoid another 10000 units plus.
Speaker Change: Okay.
Yan Li: Lastly, in terms of channel expansion, we continue our previous strategy with a strong focus on penetrating the previous underrepresented market in China, strategically expanding our retail footprint to ensure our product reaching a broader consumer base. We have expanded our retail footprint by opening about 384 new stores in Q1, with significant focus on Tier 3 and Tier 4 cities, accounting for 50% of new opening stores. This strategic expansion refines our distribution network and also paves the way for upcoming launch of electric motorcycle products. Now, additionally, our online presence has been strengthened with sales improvement across multiple online channels, such as our official brand accounts, the localized accounts, regional localized accounts, and also the 400-plus store accounts.
Speaker Change: Lastly, the Trimble channel expansion will continue our previous strategy with strong focus on penetrating the previous underrepresented market China.
Speaker Change: Strategically expanding our retail footprint to ensure our product, reaching a broader consumer base, we have expanded our retail footprint by opening up 384, new stores in Q1.
Speaker Change: With significant focus on tier three tier four cities accounting for 50% of new opening stores. This strategic expansion of our final distribution network and also pave the way for upcoming long term electric motorcycle product in Q2.
Speaker Change: Okay.
Speaker Change: Additionally, our online presence has been strengthened with improvement across multiple online channels such as our.
Speaker Change: Official credit accounts, the localized accounts, reaching that looked like that also the 400 plus store tenants.
Yan Li: This multi-tier strategy has hosted about 10,000 live broadcasts, generating 430 million views, marking a 6x increase compared with Q1 2024 last year. This has significantly boosted our online visibility and customer interactions, contributing about 100,000 units of sales, representing 60% of our total sales volume.
Speaker Change: Multi tier strategy has close to about 10000 lifeboat tasks generating 430 million views marketing six actually increased compared with Q1 2024 last year.
Speaker Change: This has significantly boost our online visibility and customer interactions contributed about 100000 unit sales represented 60% of our total sales of oil.
Yan Li: Now, let me turn to the overseas market. In the overseas market in Q1 2025, the sales volume reached to 20,000 units. Within the overseas market, we first focused on the electric two-wheeler market, which is electric mopeds and electric motorcycles. The electric two-wheeler market achieved an over 3x increase due to the readiness we put in place on the direct distribution operation in key countries such as Germany, Italy, and France. and those direct operations contributed more than 50% sales in Q1. Now with the logistic financing CRM system also on the ground We have really built the operation in those key countries and accelerated in our network expansion.
Speaker Change: Now, let me turn to the overseas market in the overseas market in Q1 2025, the sales volume reached to 20000 units.
Speaker Change: Within the overseas market with folks focused on electric tubular market, which would be electric.
Speaker Change: More passenger electric motorcycles electric two in the market achieve over three X increase due to the readiness, we're putting in place on the direct distribution operations in those key countries.
Speaker Change: Germany, Italy and France.
Speaker Change: And those direct operations contributed more than 50% of sales in Q1 now with the logistics financing CRM system also the underground team we have.
Speaker Change: Really feel the accretion in those key countries and accelerated network expansions, but end up Q1 2025, the number of dealers deals directly distributed up regions have increased from 120 to 180 dealers with protection to reach about $250 by mid 2025 exceeding our initial forecast.
Yan Li: By end of Q1 2025, the number of dealers in those direct distributed regions have increased from 120 to 180 dealers, with projections to reach about 250 dealers by mid-2025, exceeding our initial forecast. We have also introduced a full lineup of electric two-wheeler products, ranging from 50cc equivalent LYE models to 125cc equivalent L3E models, as well as the off-road motorcycles. Those products are priced between 2,000 euros to 4,600 euros, catering to a diverse consumer needs. Now the first batch of new product will ship in Q1 2025 and now it's been stocked in local warehouse. Ready. for the peak season sales in Q1.
Speaker Change: We have also introduced a full lineup of electric to other products spanning from 50 cc equivalent.
Speaker Change: L Y E models to $25 50 equivalent <unk> models as well as the offer of motorcycles those product price be treated.
Speaker Change: 2000 euros, 240, 600 euros catering to a diverse customer needs now.
Speaker Change: The first batch of new product was shipped in Q1, 2025, and obviously stopped local warehouse.
Speaker Change: Ready.
Speaker Change: For the peak season sales in Q2.
Yan Li: Now with those full line-up of electric two-wheeler products, specifically electric motorcycles, most added off-road motorcycles, and also the direct distribution operation in place, we anticipate financial sales growth targeting the 3 to 5x increase in 2025, with Q1 as an early indicator of such growth. The fast growth in the electric and two-wheeler sectors, with the direct distribution region sales anticipated accounting for 60-80% sales, will contribute significantly to our profitability turnaround in the international market.
Speaker Change: Now with the full lineup of electric tubular products, just figured electric motorcycles.
Speaker Change: Altra modal cycles and also the direct distribution operation in place.
Speaker Change: National sales growth targeting three to five <unk> increase in 2025 with Q1.
Speaker Change: The early indicator of such growth.
Speaker Change: Yes.
Speaker Change: Now the fast growth in the electric two wheelers sectors was the direct distribution reach and still anticipate accounting for 60% to 80% of sales will contribute significantly profitable profitability turnaround in international market.
Yan Li: Now for the micro-mobility market for the international market, such as the kick scooters and also the e-bikes, Q1 2025 is an underperforming quarter with nearly flat volume growth and delayed profitability turnaround due to the tariff situation in the US and also the inventory clear out in Europe. In Europe, our Q1 sales focus on sales of outdated inventories, hence have impact on gross margin and profitability. Those outdated inventory impacts will continue partially into Q2, but we expect to minimize those by the second half of this year. In the U.S., due to uncertainties around the tariff situation, we deliberately hold back the sales of existing inventories in the U.S.
Speaker Change: Now for the micro mobility micro mobility market, so the international market such as that kicks Scooters Center.
Speaker Change: So the EBIT Q1, 2025 is the underperforming quarter with nearly flat volume growth and a delayed profitability turnaround due to the tariff situation in the U S and also the inventory clear out in Europe.
Speaker Change: In Europe, our Q1 <unk>.
Speaker Change: Inventories have impacted our gross margin and profitability.
Speaker Change: Inventory impacts will continue partially into Q2, but we expect to be minimized.
Speaker Change: Second half of this year.
Speaker Change: Now in the U S due to the uncertainties.
Speaker Change: The tariff situation, we deliberately pulled back the sales of existing inventory in the U S market in Q1 for more clarity.
Yan Li: market in Q1 for more clarity. We have implemented price increases in online channels in Q1 and negotiated with offline channels for price increases to be effective in late Q2 and early Q3. Now for the supplies to the U.S. market, our manufacturing in Southeast Asia have already dispatched our first deliveries in late Q1 2025, taking advantage of the 10% tariff window. The shipped product has not been reflected in the sales. Now... We are carefully watching the tariff situation. However, with the negotiated price increases and the inventories prior to the tariff hike, we expect to regain profitability for the second half in 2025 for the U.S.
Speaker Change: Implement the price increase in online channels in Q1, and negotiate offline channel full price increases to be effective in late Q2 early Q3.
Speaker Change: Now for the supply to the U S market, our manufacturing in Southeast Asia have already this backup first University in late Q1, 2025, taking advantage of the 10% tariff window.
Speaker Change: <unk> product has not been good.
Speaker Change: Collecting the sales yet.
Speaker Change: No.
Speaker Change: We are carefully watching the tariff situation. However, it was a negotiated price increases and the inventories prior to the tariffs we expect to regain profitability for the second half in 2025 for the U S micro mobility market.
Yan Li: micro-mobility market.
Yan Li: Our overall remain optimistic about the China market in Q2 2025, building on strong foundation in product channel development and also the brand momentum. This has already produced positive initial results in Q1. On the product side, we will continue to focus on our product portfolio around our core N, M, U, and F series. The launch of newly upgraded N and F series in Q2 is expected to elevate our brand attractiveness and recognition within the high premium consumers and the Gen Z customers. Simultaneously, the launch of motorcycle products has diversified our product portfolio, offering consumers a wide array of options.
Speaker Change: Overall, we remain optimistic about the China market in Q2, 2025 building a strong foundation product channel development and also the brand momentum. This has already produced the positive initial results from Q1.
Speaker Change: On the product side, we will continue to focus on our product portfolio.
Speaker Change: Our core <unk>.
Speaker Change: And F series, the lunch opportunity upgraded than the F series in Q2 is expect to add about brown attractiveness and recognition within the high premium consumers and the Gen Z customers.
Speaker Change: Simultaneously the launch of motorcycle product has that response.
Speaker Change: <unk>.
Speaker Change: So in consumer to a wide array of options also have known about the launch of a new product in Q2, two may 13th right before the China top sales season of June 18th.
Yan Li: Also, we have moved up the launch of a new product in Q2 to May 13, right before the China top sales season of June 18. to take advantage of. Now we'll continue to expand our sales channels, expecting to add another 300 to 400 stores in Q2. The channel expansion will drive sales growth, but also shows the sign of channel momentum turnaround. Lastly, we will continue to improve our gross margin as the result ratio will be the product-platform valuation in Q1. Finally, we have worked diligently to modify our current product line-up to create a new design style to cope with the new electric bicycle standards in China to be in place in September.
Speaker Change: To take advantage of this.
We will continue to expand our sales channels expanding expecting to adding another 300 to 400 stores in Q2.
Speaker Change: The China expansion will drive sales growth, but also showed the sial, China momentum turnaround this year.
Speaker Change: Lastly, we will continue to improve our gross margin results ratio be.
Speaker Change: Product platform that you showed in Q1.
Speaker Change: And finally, we have worked diligently to modify our current product lineup to create new design style to cope with the new electric bicycle standard in China to be in place in September we'll have a solid product development.
Yan Li: We have a solid product line-up in development, ready to be in the market by the end of the year.
Speaker Change: Development is ready to be in the market.
Yan Li: Now looking at the international market, with the trend we observed in Q1 and early Q2, we anticipate a steady growth in the overseas market and turnaround profit block. In the electric tooler market, with a complete product portfolio and established direct distribution operations, we anticipate a hyper-grossing both revenue and profit contribution. The sales growth we saw in Q1 is a testament to this foundation we have built. In the following quarters, our focus will be on expanding the direct distribution operations as it yields a higher contribution margin. For the micro-mobility market, even with the turmoil on tariffs, we have started to observe a turnaround sign from a profitability perspective.
Now looking at the international market.
Speaker Change: What is the trend we observed in Q1 early Q2, we anticipate steady growth in the overseas market and turn a profit loss this year.
Speaker Change: Electric market with a complete product portfolio and establish direct distribution operations, we anticipate a hyper growth in both revenue and profit contribution.
Speaker Change: The sales growth we saw in Q1 is a testament to this foundation we have built.
Speaker Change: Following quarters, our focus will be up expanding the direct distribution operations.
Speaker Change: The higher contribution margin.
Speaker Change: For the micro mobility market, even with the turmoil on the tariffs will have started to up their return Ralph signs from the profitability perspective with the clearing all state inventory in Europe and also the clarity with the U S. Tariff situation, we expect to rebound with the moderate growth and a significant improvement in the profit.
Yan Li: With the clearing out of the out-of-state inventory in Europe, as well as the clarity with the U.S. tariff situation, we expect to rebound with moderate growth and significant improvement in profitability.
Bian Zhou: Now I'll turn over to our CFO, Bian Zhou, to talk about the financials. Thank you, Yan. And hello, everyone.
Speaker Change: Team.
Speaker Change: Now I'll turn over to our CFO, Dr. Joel to talk about the financials. Thank you and Hello, everyone. Please note that our press release contains all the figures and comparisons you need and we have all sorts of holiday in the South Hall matched fingers Chihuahua IR website IGT referenced as I review our financial results.
Bian Zhou: Please note that our press release contains all the figures and comparisons you need. And we have also uploaded the Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the first quarter figures unless I say otherwise. And all monetary figures are in non-BIF, not specified. As Yan just mentioned, our total sales volume for the first quarter was 203,000 units, up 57% compared to the same period of last year. 183,000 units were sold in China, while the remaining 20,000 were sold overseas. The total revenue for the first quarter amounted to $682 million, an increase of $177 million or 35% compared to the same period of last year.
Speaker Change: During the first quarter comparison, unless I say, otherwise and all monetary stinkers to our stock based loss basis right.
Speaker Change: And Jen just mentioned our total sales volumes for the first quarter was 203000 units up 67% compared to the same period of last year.
Speaker Change: Around any sweet spot.
Speaker Change: We're selling in China, while the remaining 20000 cross sell it overseas.
Speaker Change: Total revenue for the first quarter amounting to $682 million, an increase of 177 million or <unk> 35 per cent compared to the same period of last year. The China revenues were 608 million accounting for IBD, 89% of the total revenues.
Bian Zhou: The China revenues were $608 million, accounting for 89% of the total revenues. Of this, the scooter revenues were $546 million, a year-over-year increase of 39%. This increase was mainly due to the increase in sales volume and partially offset by a decrease in revenue per e-scooter. China Scooter's ASP was fell to nearly RMB 3000. This decline in ASP was primarily attributed to a shift in product demand. The notable increase in sales volume of high-end lead-acid models, as mentioned in the previous quarters last year, has led to a more concentrated retail price range from RMB3,000 to RMB7,000.
And then the scooter revenue 546 million a year over year.
Speaker Change: The increase of 39% and this increase was mainly due to an increase in sales volume and partially offset by a decrease in revenue per each quarters.
Speaker Change: China, whatever CSP was found Genuity on biscuit Sullivan this decline.
Speaker Change: It was primarily attributed to a shift in product mix.
Speaker Change: Increase in sales volume of high end that asking models as mentioned in the previous quarters last year at <unk> are more concentrated in the retail price range from RMB <unk> thousand to 7000.
Bian Zhou: and the overseas revenue was $74 million, representing 11% of the total revenue. The scooter revenues, including electric motorcycles, mopeds, kick scooters, and e-bikes, amounted to $60 million, up from $49 million in the same period of last year. And this growth was driven by stronger international demand for electric motorcycles and mopeds, which amounted to a higher retail price. And the premium pricing of these products also contributed to a year-over-year increase in the overseas scooter ASP, rising from RMB 2,577 to RMB 2,962. And the revenue from accessories, spare parts, and services amounted to $76 million, a 20% increase compared to the same period of last year due to the increase in the spare parts sales in both China and overseas markets.
Speaker Change: And the overseas revenue was $74 million, representing 11% of the total revenue this quarter revenue, including electric motorcycles small pass kicks quarters M. E bikes amounting 260 million up from 29 million in the same period last year and this growth was driven.
Speaker Change: By stronger international demand for electric motorcycles, <unk>, which come at a higher retail price and a premium pricing of Vince products also contributed to our Nuomi youre, increasing the overseas Scooter ASP rising from RMB 2002.
Speaker Change: 2577 to RMB 2009 conference. Thanks team.
Speaker Change: And the revenue from accessories spare parts and services amounting to 76, million% to 20% increase compared to the same period last year due to the increase in the spare parts sales in both China and overseas markets.
Bian Zhou: The gross profit for the first quarter exceeded $118 million, marking a significant improvement compared to $96 million during the same period of last year. And the gross margin was 17.3%, 1.6 PPT lower than the same period of last year, but 4.9 PPT higher than the previous quarter. The domestic market growth margin improved due to the successful cost reduction initiative. which increased the overall GN by 1.2 PPT. However, the overseas kick scooters' margins dragged down the total gross margin by 2.8. Primarily due to the three factors, the impact of 25% of the U.S. tariffs implemented last July.
Speaker Change: Gross profit for the fourth quarter exceeded our hardware and an $18 million Mark here significantly improvement compared to 96 million. During the same period of last year and the gross margin was 17.3% 1.6 ppt lower than the same period last year, but for clients.
Speaker Change: Nine ppt higher than previous quarters.
Speaker Change: The domestic market gross margin improved due to the successful cost reduction initiatives, which increased the overall G. Five 1.2 ppt. However, the overseas key corners margins dragged down the total gross margin by 2.8 ppt, primarily due to the story.
Speaker Change: Factors impact of 25% of the U S tariffs implemented last June.
Bian Zhou: Elevated freight cost and aged inventory write-down The operating expenses for the first quarter were $165 million, remaining flat compared to the same period of last year. However, the OPEX ratio declined significantly from 32.7% to 24.2%. Sully and Martin expenses rose by 9 million yuan over a year to 150 million yuan. Advertising and Promotional Activities and Rental Expenses selling and marketing expenses accounted for 16.8% of revenue, down from 20.9% in the first quarter of 2024. R&D expenses increased by $1 million year-over-year to $30 million, primarily due to the higher staff cost and share risk compensation. The R&D expenses as percentage of revenue is 4.4% compared to 5.7% in the first quarter of 2024.
Speaker Change: <unk> freight cost.
Speaker Change: Inventory write downs.
Speaker Change: Operating expenses for the fourth quarter 165 milligram remaining flat compared to the same period of last year, However, opex ratio.
Speaker Change: Declined significantly from 32, 7% to 24, 2% selling and marketing expenses rose by 9 million gallons per year to 116.
Speaker Change: I'll answer the $10 million driven by a higher staff cost advertising and promotional activities in ventana expenses, selling and marketing expenses.
Speaker Change: <unk>, 416.8% of revenue down from 29% in the first quarter of 2024.
Speaker Change: R&D expenses increased five 1 million year over year to starting to millennium, primarily due to the higher staff cost and share based compensation R&D expenses as percentage of revenue is 4.4% compare to five 7% in the fourth quarter of 2024.
Bian Zhou: G&A expenses decreased by $10 million year-over-year to $21 million, largely attributed to the foreign currency exchange gains. G&A expenses as percentage of revenue was 3%, a notable reduction from 6.1% compared to the first quarter of 2024. In the first quarter, we had a net loss of R&D $39 million with a net loss margin of 5.7% under the GAAP accounting, compared a net loss of R&D $55 million with a net loss margin of 10.9% for the same period of last year. Their adjusted net loss was RMB31 million with an adjusted net loss margin of 4.6%.
Speaker Change: G&A expenses decreased by 10 million yellow and year to 21 million largely attributable to the foreign currency exchange.
Speaker Change: And G&A expenses as percentage of revenue.
Speaker Change: Plus 3% a notable reduction from six 1% compared to last last first quarter in 2024.
Speaker Change: In the first quarter, we had a net loss of RMB 39 million with a net loss margin of five 7% under the GAAP accounting compare last last up 55 milligram with them that loss margin of 10, 9% for the same period last year.
Speaker Change: Adjusted net loss was RMB 31 million with an adjusted net loss marching off more clients, 6% turning to our balance sheet and cash flow. We ended the quarter with RMB 963 Oems are stage, one 1 billion last year in cash restricted cash.
Bian Zhou: And turning to our balance sheet and cash flow, we ended the quarter with our mean $963 million versus $1.1 billion last year. In cash, we received cash, term deposits, and short-term investments. And our operating cash outflow amounted to $154 million. The old capex for the first quarter amounted to $24 million, reflecting an increase of $3 million compared to the same period of last year, and this can be attributed primarily to an increase in the opening of new stores in China.
Speaker Change: You're pausing and short term investments and our operating cash outflow amounted to $164 million.
Speaker Change: That's the floor clause quarter amounting to 24 million, reflecting an increase of $3 million compared to the same period last year and this can be accurately OTT, primarily to an increase in the opening up new stores in China.
Bian Zhou: Now, let's turn to guidance. We expected the second quarter revenue to be in the range of RMB 1.3 billion to 1.4 billion, an increase of 40% to 50% year-over-year. Please be aware that this outlook is based on information available as of the date and reflects the company's current and preliminary expectation which is subject to change due to the uncertainties relating to our various factors.
Speaker Change: Now, let's turn to guidance, we expect in the second quarter revenues will be in the range of RMB, one <unk> billion to $1 4 billion.
Speaker Change: Increased 40% to 50% year on year.
Speaker Change: Please be aware that this outlook is based on information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to the uncertainties relating to our various factors.
Operator: And with that, we'll now open the call for any questions you may have for us. Operator, please go ahead. Thank you.
Speaker Change: With that well now open the call for any questions questions on behalf of Ross.
Speaker Change: Operator, Please go ahead.
Operator: If you wish to ask a question, please press star 1, 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1, 1 again. Please stand by while we compile the Q&A roster.
Speaker Change: Thank you.
Speaker Change: If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question. Please press star one one again please.
Speaker Change: Please standby, while we compile the Q&A roster.
Operator: We will take our first question.
Speaker Change: We will take our first question.
Kyle Wu: And the first question comes from the line of Kyle Wu from City Research. Please go ahead, your line is open. Thank you, operator. Hi, this is Kyle from Citi. Thanks for taking my questions. I have two questions. First is about the sales volume guidance. At the year beginning, we guide 2025 four-year sales volume to be 30% to 50% year-on-year growth. Do we still maintain this volume guidance? Second is about the margin. What's our margin outlook for the upcoming quarters of this year? And also, do we still expect second quarter to see net profit turnaround? Thank you.
Speaker Change: On the first question comes from the line of Kyle <unk> from Citi Research. Please go ahead. Your line is open.
Speaker Change: Thank you operator, hi basis, Kyle from Citi. Thanks for taking my questions.
Speaker Change: I have two questions first is about the volume guidance.
Speaker Change: At the beginning we guide 2025 full year test volume to be 30% to 50% year on year gross.
Speaker Change: We still maintain this volume guidance.
Speaker Change: Second is about the margin whats our margin outlook for the upcoming quarter is up this year and also do you expect second quarter to see copaxone around.
Speaker Change: Thank you.
Yan Li: Let me address the first one. In terms of guidance for the annual volume we haven't reached, we have not changed the guidance. I think we're on the path. Okay, for the growth margin annually, actually last year, our overall growth margin was only 15.2% overall. And for sure, this year, the annual growth margin will be recovered from 15%. And for the second quarter this year, we still expected that we will get the profit from the net margin. So the NP is the positive expectation for us. Okay, thank you. Thank you.
Speaker Change: Yes, that's interesting.
Speaker Change: First one in terms of our guidance for the other loyalty how many rigs we have not changed our guidance I think we're on the path.
Speaker Change: Okay.
Speaker Change: Gross margin annually actually last year.
Speaker Change: Our overall gross margin was 15, 2% of all our all and for sure. This year. The annual gross margin will be recover from 15% and for the second quarter of this year are we.
Speaker Change: We do expect that the we will get the profit from the Nash Margie.
Speaker Change: So they are emptied deposit heavy expectation for us.
Speaker Change: Okay. Thank you.
Speaker Change: That's true.
Operator: Once again, if you wish to ask a question, please press star 1, 1 on your telephone. We will take our next question.
Speaker Change: Thank you once again, if you wish to ask a question. Please press star one one on your telephone.
Speaker Change: We will take our next question.
Yating Chen: And the next question comes from Yating Chen from CICC. Please go ahead, your line is open. Hello, I have one question. I have seen that the average selling price decreased a quarter of a quarter in Q1, but the gross profit margin improved significantly quarter of a quarter. So I'd like to know what is the main reason and what is the outlook for average selling price in subsequent quarters? This is my question. Thank you.
Yale Jen: And the next question comes from the from Yale Jen from CIBC. Please go ahead. Your line is open.
Yale Jen: Hello I.
Speaker Change: I have one question.
Speaker Change: I have seen that the average selling price decreased quarter over quarter in Q1.
Speaker Change: The gross profit margin improved significantly quarter over quarter.
Speaker Change: So I'd like to know what is the main reason.
Speaker Change: But what is the outlook for average selling price.
Speaker Change: Subsequent quarters. This is my question. Thank you.
Yan Li: Okay, I'll take this question. Actually, in this quarter, the ASP, especially the China ASP dropped due to we launched the new models. Starting from last year, the launch date of our new models, especially the flagship models, varies each year. For instance, the retail price of MT 2025 models, this is this quarter's bestseller. The price range from nearly RMB 4,000 to 5,000. Whereas last year, we launched the NXT in last Q1. This is our last year's top seller, and the price between RMB 6,000 to around RMB 12,000. So the launching date of our new models actually varies our ASP each quarter.
Speaker Change: Okay I'll take this question.
Speaker Change: Actually in this quarter.
Speaker Change: <unk>, especially the China ASP dropped due to we launched our new models.
Speaker Change: All fromstein from last year, the launch dates of our new model, especially their flagship model various each year.
Speaker Change: For instance, the retail price of MQ25 models.
Speaker Change: This is our this quarter's bats out or the price range from RMB nearly RMB 4000 shoe fits all event, whereas last year, we launched the next key lock Q1.
Speaker Change: This is our last years top center, and the price, which when the RMB RMB $6 shoe around call solvent. So are the launch dates of our new models actually you know various resp each quarter, but but this ESP will smooth if we're looking forward.
Yan Li: But this ASP will smooth if we're looking forward to the following quarters, especially the annual ASP, as we just explained to the market that the ASP will remain almost the same compared to last year, or change a little bit within the single digital change. For the second quarter, after this year, actually, we expected the ASP, especially in the domestic market, will recover compared to the Q1 this year. But we'll concentrate it. Actually, the model's retail price were concentrated in the range from RMB 3,000 to 7,000. So the ASP will rebound from this quarter's RMB 3,000 to around RMB 3,000 to 3,500 ASP in the domestic market.
Speaker Change: <unk>.
Speaker Change: So the next to the following quarter as to especially India anyway as P. As we just explained to the market. That's you know the ESP will remain almost the same compared to last year.
Speaker Change: <unk> changed a little bit.
Speaker Change: Within your all day, it seems though digital change.
Speaker Change: For the.
Speaker Change: Quarter. After this year actually are we expecting there.
Speaker Change: E S P a especially in the domestic market will recover.
Speaker Change: Compared to the.
Speaker Change: Q1, this year well, we were you know a real concentrated actually the models retail price.
Speaker Change: We are concentrated in the range from margins, we saw them into seven solvent. So are the asps will rebound.
Speaker Change: Rebounds from this quarter.
Speaker Change: Resolving the RMB to around 3002 awards with a 3500 ESP in the domestic market.
Yan Li: This is our expectation in the quarter two ASP.
Speaker Change: So this is our expectation.
Speaker Change: Quarter, two was ESP and add to the gross margin recovered as I just explained.
Yan Li: And as to the gross margin recovered, as I just explained. that this quarter's gross margin recovered, especially from our domestic scooters' cost reduction. Since last Q4, we see a dramatic gross margin drop down due to our land assets, motorcycles, and mopeds in the domestic market contributed more than 40% of our sales volume, which are 3-5% gross margin lower than the same year in the recent Mayan one. And we began to change the smart function platform and also the R&D platform and also the cost reduction from the raw material. And this quarter, we saw the benefit from the cost reduction in the domestic market.
Speaker Change: This quarter our gross.
Speaker Change: Gross margin.
Speaker Change: Cards, especially from that from the art Domanski exclude cost of reduction.
Speaker Change: Since last Q4, we see a dramatic Ah, we see a dramatic gross margin dropped out.
Speaker Change: Tomorrow that athletes.
Speaker Change: Motorcycles animal pattern in the domestic market come to their teams.
Speaker Change: More than 40% of our sales volumes, which are.
Speaker Change: Which are 3% to 5% gross margin is lower than the same here and there is a middle class and we began to.
Speaker Change: We began to change there.
Speaker Change: D a.
Speaker Change: Smart <unk>.
Speaker Change: <unk> function platform and also the RMB.
Speaker Change: The R&D platform and also the cost reduction from the raw material and this quarter. We saw the benefits from the cost of reduction in the domestic markets and in Q2 I would think the gross margin.
Yan Li: And in Q2, we think the gross margin will remain at this level, but will change a little bit due to the product mixed in the domestic market. But we will not go back to lower than 15% as last year, showing the figure.
Speaker Change: <unk> remain at this level, but you know it will change.
A little bit due to product.
Speaker Change: Product mix in the domestic market, but will not go back she wasn't getting a lower Nancy in percent at last year showing the figures.
Yating Chen: This is the world's market and the ASP for this year's explanation. Thank you very much. Those are all my questions. Thank you. Once again, if you wish to ask a question, please press star 1, 1 on your telephone.
Speaker Change: This is yeah. This is des.
Speaker Change: The gross margin on the ESP for this year's explanation.
Speaker Change: Thank you very much.
Speaker Change: That's all my questions.
Speaker Change: Thank you once again, if you wish to ask a question. Please press star one one on your telephone.
Michael Simmons: We will take our next question and the question comes from the line of Michael Simmons from Global View SA. Please go ahead, your line is open. Thank you. Yes, it's Michael here, Michael Simmonds.
Speaker Change: We will take our next question and the question comes from the line of Michael Simmons from Global view S. A please go ahead. Your line is open.
Michael Simmons: Thank you yes. This is Mike Michael here, Michael says Hey, Doug.
Yan Li: Dr. Li, perhaps I can just ask you a little bit about the balance sheet. I think the cash position has kind of come down a little bit. Given what you've just been talking about, and it sounds like the second quarter is looking quite good, how do you think the cash position, the net cash position, is going to look at the end of the year? Well, actually, each year, quarter one, the cash position is the lowest. Since it's the Chinese New Year, we need to clear out all the advance to the suppliers, the accounts payable, and also the notes payable to the bank.
Speaker Change: Perhaps I can just ask you a little bit about the balance sheet.
Michael Simmons: The cash position has kind of come down little bit.
Michael Simmons: Given what you've just been talking about it sounds like the second quarter is looking quite good.
Michael Simmons: How do you think the cash position net cash position is going to look at the end of the year.
Michael Simmons: Well actually each year the quarter over quarter, while the cash position is the lowest that's extended the Chinese new year, we need to clear out all day, a bump to the suppliers. They are accounts payable and also they are notes payable to the bank.
Yan Li: So if you're looking back to 2024 and 2023, each year, the fourth quarter's cash balance is the lowest during the whole year. But at the end of this year, 2025, actually, we expected the cash position will grow up starting from quarter two. Since the peak season, both in the domestic market and the overseas market is coming, and we give a high-speed sales volume increase aligned with the revenue increase. And this brought us the operating cash flow inflow starting from quarter two. And we didn't expect a large capex for the furniture and equipment and also the stores open.
Michael Simmons: If you're looking back to 2021 'twenty three.
Speaker Change: Three each year the fourth quarter's cash balance is the lowest oh during the whole year, but Andy you end up at one.
Speaker Change: Yeah, <unk> actually we are expecting the cash condition will rollout starting from quarter. Two offices that are the peak season, both in the domestic market and they are overseas market is coming as a we give a a high speeds.
Speaker Change: Sales volume increased in line with the revenue increase and that's what brought us the operating cash flow inflow, starting from <unk> and <unk>.
Speaker Change: <unk> back to a large packs that all for me.
Speaker Change: For the furniture and equipment and also the all stores opened so overall, we are with our cash position at the end of this year will be high.
Yan Li: So overall, we think the cash position at the end of this year will be higher than the end of December 31st in 2024. Great, thank you. Thank you.
Speaker Change: And the.
Speaker Change: The end of December 31st in 2024.
Speaker Change: Great. Thank you.
Speaker Change: Yeah.
Speaker Change: Okay.
Operator: We will take our next question.
Speaker Change: Thank you.
Speaker Change: We will take our next question.
Ziyan Wanyan: Your next question comes from the line of Ziyan Wanyan from Southfield Capital. Please go ahead, your line is open.
Speaker Change: Your next question comes from the line of sight on one yen from Sappho Cup. So please go ahead. Your line is open.
Daniel: Okay, this is Daniel from Sifa Capital, and I have only one question regarding overseas business. As we know that white scooter revenue has been negatively impacted by tariffs. Electric motorcycle sales have shown growth. How should we interpret the growth rate target for overseas operations under these circumstances?
Daniel: Okay. This is daniel for them and see if that capital and I have only one question is regarding the overseas business wise.
Speaker Change: As we know that's a wide scooter revenue has.
Speaker Change: Has been negatively impacted by tariffs.
Speaker Change: Electric motorcycle sales has from gross.
Speaker Change: How should we interpret that goes.
Speaker Change: Those rate target for overseas operations on their lives.
Yan Li: Thank you. I think for the overseas growth rate, we haven't really changed our forecast for this year. I think even at the last quarter, when we talked about the last year results and the forecast for this year, we know that our electric motorcycle market, the growth rate will be quite high, because last year we only did about 3,000 plus units of electric motorcycles. During our peak time, we actually did close to, way above 20,000 units. So, we look at, you know, that, you know, starting from 3,000 units last year, we look at fast, really hyper growth this year, looking at somewhere at least 5x to 6x growth on the electric motorcycle side.
Speaker Change: Understand thank you.
Speaker Change: Alright, I think for the overseas grocery we remain.
Speaker Change: We haven't really changed our forecast.
Speaker Change: For this year.
Speaker Change: I think even at the last quarter.
Speaker Change: We talked for the last year result, given the forecast for this year, we know that our electric 200, electrical motorcycle market the growth rate will be.
Speaker Change: Hi, because they start with actually last year.
Speaker Change: <unk> 3000, plus units of electric motorcycles.
Speaker Change: During our peak time.
Speaker Change: We actually did it close to zero.
Speaker Change: Way above.
Speaker Change: 20000 units.
Speaker Change: So we'll look at.
Speaker Change: Starting with up to 3000 units last year, we'll look at fast really hyper growth this year at somewhere at least <unk> to <unk> growth.
Speaker Change: Motorcycle side.
Yan Li: On the, which, you know, on the Q1, the quarter one, we already see a 3x growth there. On the micro mobility, basically the kick scooters, so we, the US tariff really started to impact us last year when, you know, our tariff actually increased to 25% on May 30, post May 31st of last year. So, that already has an impact on our kick scooter business. So, we actually start to. relocating the manufacturing base from China to Southeast Asia to try to cope with that 25% tariff, where back then in Southeast Asia, it was a 0% tariff.
Speaker Change: On the.
Speaker Change: On the.
Speaker Change: The.
Speaker Change: Q1 reported <unk> growth there.
Speaker Change: On the micro mobility piece basically the peak scooters.
Speaker Change: So yes.
Speaker Change: U S tariff and really start to impact us last year.
Speaker Change: Our tariffs are actually increased to 25%.
Speaker Change: On May 30 post may 31 of last year, so that already had an impact on hardware.
Speaker Change: Exclude a business so we actually start to.
Speaker Change: Relocating the manufacturing base from China to southeast Asia to try to cope with that 25% tariff where back then the southeast Asia.
Yan Li: So, I mean, this quarter, Q1 this year, you know, we see, you know, basically this tariff goes, even the Southeast Asia tariff went up to 10%, but the China side actually went up significantly. So we actually consciously made adjustments, by holding off the sales for the U.S. market. But you look at the entire year, I think the demand there, with our Southeast Asia manufacturing base in place, also with how we negotiate the price increase with the key U.S. retailers, like Best Buy, Walmart, you know, I think we should be able to see that business goes as normal as what we expected at the beginning of the year.
Speaker Change: Turf. So this quarter Q1 this year.
Speaker Change: We see.
Speaker Change: Basically this tariff goes.
Speaker Change: In the southeast Asia tariff went up to 10%, but the China actually would not significantly so we actually consciously made adjustments by holding up the sales.
Speaker Change: For the U S market, but you can look at the entire year I think the demand there.
Speaker Change: Our southeast Asia manufacturing base in place.
Speaker Change: Also with how we negotiate the price increase.
Speaker Change: A key U S retailer expect best buy Walmart.
Speaker Change: I think we should be able to see that business goes as normal as what we expected at the beginning of the year.
Yan Li: But overall, I think with maximum ability, both on the U.S., Europe, I think our key three footprints are U.S. market, well, the entire North American market, basically U.S. and Canada, and also the European market, as well as some of the Australian market, New Zealand market. You know, we expect moderate growth. We don't expect that business to grow at two acts or something. We really expect a simple double-digit growth. And with the key goal, it's actually a... turn around the profitability. I think if you look at the two international market segments, with the electric motorcycle, I think it's a hyper-growth with a high profitability contribution.
Speaker Change: But overall I think our micro mobility, both on the U S. Europe I think our key three footprint.
Mark Mcnulty: <unk> Mark.
Speaker Change: The entire North American market basically U S, Canada and also the European market as well as some of the stuff with the upstream.
Speaker Change: Really a market do you view that market.
Speaker Change: We expect moderate growth, where do we expect that.
Speaker Change: This grow it to act or something where you would expect.
Speaker Change: A simple double digit growth.
Speaker Change: With a key go it's actually.
Speaker Change: A turnaround of profitability I think if we look at the two international market segment with the electric motorcycle I think it's a hyper growth with high profitability contribution.
Yan Li: And on the kick scooter, micro-mobility market, you really should expect this is a moderate growth, but with the key focus on turning around from a profit loss to a profitability Thank you.
Speaker Change: On the <unk>.
Speaker Change: <unk> quarter.
Speaker Change: Mobility market.
Speaker Change: You should expect us with moderate growth, but with the key focus.
Speaker Change: Turning around from a profit loss.
Speaker Change: So a profitability business unit.
Speaker Change: Okay. Thank you.
Operator: There seems to be no further questions.
Speaker Change: That seems to be no further questions I would like to hand back for closing remarks.
Yan Li: I would like to hand back for closing remarks. Thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and looking forward to reporting to you again next quarter on our progress. Thank you.
Speaker Change: Alright, Thank you operator, and thank you all for participating on today's call and for your support.
Speaker Change: <unk> are looking forward to reporting to you again next quarter on our progress. Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music] okay.
Speaker Change: Okay.
Speaker Change: [music].