Q3 2025 Niu Technologies Earnings Call

November 17, 2025

At this time all participants are in listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time as a reminder, we are recording today's call. If you have any objections you may disconnect. At this time now I will turn the call over to MS. Chris.

Operator: earnings conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording 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. Li, please go ahead.

Operator: Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording 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. Li, please go ahead.

Italy Investor Relations manager of New technologies Ms. Li Please go ahead.

Okay.

Thank you operator, Hello, everyone welcome to today's conference call to discuss new technologists resolved for the third quarter of 2025, the earnings press release, and corporate presentation and financial Spreadsheets has been posted on our Investor Relations website.

Kristal Li: Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss NIU Technologies results for Q3 2025. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our investor relations website. This call is being webcast from company's IR site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities 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 company's public filings with the Securities and Exchange Commission. The company does not assume any obligation and update any forward-looking statements except as required by law.

This call is being webcast from company's IR site as well and the replay of the call will be available soon.

Please note today's discussion will contain forward looking statements made under the safe Harbor provision of the U S. Private Security Litigation Reform Act of 90 95.

Forward looking statements involves risks uncertainties assumptions and other factors.

The companys extra actual results may be materially different from those expressed today.

Further information regarding the risk factors is included in company's public filings with the Securities and Exchange Commission.

The company does not assume any obligation and update any forward looking statements, except as required by law.

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 a 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, Ms. Fion Wenjuan Zhou. Now let me turn the call over to CEO Yan.

The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.

On the call with me today are our CEO, Dr. Yan Li and CFO Ms Beyond Joel now, let me turn the call over to CEO yet.

Thank you Chris Hello, everyone. Thank you for joining us today.

Yan Li: Thank you, Kristal. Hello, everyone. Thank you for joining us today. In Q3, we delivered solid and sustained progress across all key strategic priorities, supported by disciplined execution in product innovation, channel expansion, and brand elevation. Our results reflect the continual growth of our core China business and early signs of transition in our overseas operations, laying a strong foundation for the next phase of growth. For Q3 2025, the total sales volume reached 465,000 units, representing a strong 49.1% year-over-year increase. This growth was driven primarily by exceptional performance in China, where sales rose to 451,000 units, up 74% year-over-year, supported by our strength in the product portfolio and effective channel expansion. Overseas volume reached 14,000 units, declining year-over-year, mainly due to a weakness in the micro-mobility sector.

In Q3, we delivered solid.

Progress across all key strategic priorities supported by disciplined execution and product innovation channel expansion that a brand elevation.

Our results reflect the continued growth of our core China business and early signs of transition in our overseas operation.

Strong foundation for the next phase of growth.

For the third quarter of 2025 total sales volume reached 465000 units, representing a strong 49, 1% year over year increase.

This growth was driven primarily by exceptional performance in China, where sales rose to 451000 units up 74% year over year supported by our strength in the product portfolio and in fact, the channel expansion.

Osp's of oil rich 14000 units declining year over year, mainly due to weakness in the micro mobility sector.

Our total revenue growth, 65% year over year to RMB 169 billion accompanied by gross margin expansion to a 21, 8% up eight eight equals zero percentage points from the prior year or one seven percentage points.

Yan Li: Our total revenue grew 65% year-over-year to RMB 1.69 billion, accompanied by a gross margin expansion to 21.8%, up 8.0 percentage points from the prior year, or 1.7 percentage points sequentially. This improvement was driven by a favorable shift in the China product mix, with increased contribution from higher value models. Notably, sales of models priced above RMB 8,000 accounted for over 10% of China sales. Net profit for the quarter was RMB 81.69 million, extending the profitability momentum established in Q2. This improvement reflects scale efficiencies from higher volume and our continued focus on operation excellence. Those results underscore our ability to execute with discipline and resilience amid evolving market dynamics.

This improvement was driven by a favorable shift in the China product mix with increased contribution from higher value models.

Notably sales of models price of RMB 8000 accounted for over 10% China sales.

Net profit for the quarter was RMB 80 169 million.

Pending the profitability momentum established in Q2.

This improvement reflects efficiencies from higher volume and our continued focus on operational excellence.

Yeah.

Those results underscore our ability to execute with discipline and resilience amid evolving market dynamics, we remain confident in our long term strategy and the progress achieved this quarter provides a strong foundation for sustainable growth.

Yan Li: We remain confident in our long-term strategy, and the progress achieved this quarter provides a strong foundation for sustainable growth. China remained our primary full growth engine in Q3, with unit sales rising 74% year-over-year to 451,000 units. A key driver was the channel inventory build up ahead of the implementation of the new national standard for electric bicycles, which provided a substantial short-term boost. This performance was also supported by successful product launches, strong brand-driven demands, and steady channel expansion. The momentum built through 2024 and into 2025 reflect our refined strategy, enhanced competitiveness, and growing consumer preference for NIU. In Q3, the China electric bicycle market entered a critical transition phase under the new national standard. While production of non-compliant models ceased after 31 August, retail sales of existing inventories are permitted until 30 November 2025.

China remain our primary growth engine in Q3 with unit sales rising 74% year over year to 451000 units a key driver.

China inventory buildup ahead of the implementation of the new National standard for electric bicycles.

Which provided a substantial short term boost this performance was also supported by successful product launches strong brand driven demand and the steady trend of expansion the momentum built through 2024 and into 2025 reflect our refined strategy.

Competitiveness and growing consumer preference for you.

In Q3, the China electric bicycle market entered a critical transition phase under the new National standard.

<unk> of Noncompliant models ceased after August 31st retail sales of existing inventories are permitted until November 32025.

This prompted distributors and retailers to build inventories in July and August.

Yan Li: This prompted distributors and retailers to build inventories in July and August, effectively pulling forward demand from October and November and created a temporary sales boost in Q3. Now, to prepare for this regulatory shift, we emphasize on 3 actions: upgrading the existing high-end electric bicycle models to capture the short-term demand, building on the new electric motorcycles unaffected by this regulation to target lower tier cities, and redesigning and retuning our entire electric bicycle lineup to fully comply with the new standard for the roll-off Q4 2025 and Q1 2026.

Actually pulling forward demand from October and November and liquidity temporary sales force in Q3.

Now could prepare for this regulatory shift that we emphasize some of the actions upgrading the existing high end electric bicycle models to capture short term demand building on the new electric motorcycles unaffected by this regulation took probably a lower tier cities and a really fine tune the entire electric bicycle lineup.

To fully compliant with the new standards for their draw Q4, 2025, and Q1 2026.

First with <unk> Premier electric bicycle demand search under the old standard we launched the upgraded flagship models next the outlook 2025, FX keep out with 195 version is priced at RMB 11995.

Yan Li: First, to capture this premium electric bicycle demand surge under the new old standard, we launched the upgraded flagship models, the NXT Ultra 2025 and the FXT Ultra 2025 version, each priced at RMB 11,999. The NXT Ultra 2025 introduced 10 major upgrades with 77% of core components redesigned to elevate the benchmark standards across safety, power, intelligence. The FXT Ultra 2025 featured a futuristic performance-driven design on the same technology platform as the NXT Ultra, equipped with the automotive-graded millimeter wave radar and a dual channel ABS, setting a new safety benchmark for the segment. Together, those Ultra models contribute 8% of total Q3 sales, effectively serving high-end demand during this regulatory transition. Electric motorcycles are more prevalent in the lower tier cities, tier 3 and below, due to a more relaxed regulations.

Next the ultimate 2025 introduce 10 major upgrades with 77% of core complements redesign to elevated benchmark vendors across six key power intelligence.

Next the Altra 2025 featured a futuristic performance driven design.

On the state of technology platform at the NXT ultra equipped with the ultimate.

Automotive grade amendment with radar and dual channel ABS setting a new safety benchmark for the segments.

Together those alpha models contributed 8% total Q3 sales.

Secondly, serving high end demand during this regulatory foundation.

Yeah.

Electric motorcycles that more prevailing in the lower tier cities to tier three and below due to a more relaxed regulations.

This segment has historically been underserved in our portfolio the charter footprint, making it a key growth priority slot.

Yan Li: This segment has historically been underserved in our portfolio and the channel footprint, making it a key growth priority for us. As highlighted in the previous earnings calls, extending presence in lower tier cities, the core strategy reflected in our store expansion and strengthened product line. In Q2, we completed a full N-series motorcycle portfolio covering mainstream price points from entry-level NS at RMB 3,000 above, NL at RMB 4,000, and XL at RMB 6,000. To the performance-oriented NH, just under RMB 10,000. Starting Q3, we extended the strategy to the S-series, broaden the price band, and enhance the performance to value offerings. Now, despite Q3 being a channel stocking period focused on electric bicycles, our enhanced motorcycle portfolio supported a healthy 14% revenue contribution from motorcycle sales. We expect this share to increase in the coming quarters.

As highlighted in our first earning call expanding presence in lower tier cities. The core strategy reflected in our store expansion that strengthen product line.

In Q2, we completed a full and serious motorcycle portfolio covering mainstream price points from entry level.

<unk> thousand RMB evolves.

4000, RMB 6000, RMB to the performance of Orange.

Just under RMB 10000.

Starting Q3 extended the strategy to the F series broaden the price spend hence the performance to value offerings.

Despite Q3 being a channel stocking period focused on electric bicycles.

Motorcycle portfolio supported a healthy 14%.

Revenue contribution from motorcycle sales.

Expect this year to increase in the coming quarters.

A key milestone in Q3 was the successful launch of FX Windstorm version on September 28.

Yan Li: A key milestone in Q3 was a successful launch of FX Windstorm version on September 28th. Known for its sharp, distinctive styling that resonates strongly with Gen Z riders, the FX Windstorm reinforced F-series positioning as a performance powerhouse. Priced at RMB 4,799, it targets the RMB 4,000 segments at its high, first high speed motorcycle for the young riders. Equipped with a 3,000W motor reinforced frame and a full-size TFT display and 4-piston disc brakes, it delivered performance comparable to a model priced above RMB 10,000, including 80mi, 80km/h top speed and a 0 to 50km/h in 4.7 seconds.

Non voice sharp distinctive styling that resonates strongly with Gen Z writers the FX windstorm reinforce <unk> positioning as the performance powerhouse priced at RMB 4799, a target the RMB 4000 segments at a high risk high speed model cycle for the young riders equipped with a three.

<unk> motor reinforce framed by the food side, CFP display and a 4% breaks a deliver performance comparable to a model price of RMB 10.

Including ADT model 80 kilometer powers top speed in the zero to 50 kilometer probably four seven seconds.

The FX windstorm was the eastern success with 14000 units sold in the first by hours and the January RMB $68 million in <unk> and ranked number one in Tmall <unk> dot com and the <unk> popularity.

Yan Li: The FX Windstorm was an instant success with 14,000 units sold in the first 5 hours, the January RMB 68 million in GMV, and ranked number one on Douyin, Tmall, JD.com, and Kuaishou in GMV and popularity. This success validates our strategic expansion into the electric motorcycles and create strong momentum for upcoming launches such as FS, targeting the entry-level users. Alongside the high-end electric bicycle motorcycles, we dedicate significant R&D resources to the new standard compliant electric bicycles. The updated regulations require substantial redesign from the limited usage of plastics to form factors. We now plan a full rollout of compliant products beginning in the late November and extending through Q1 2026. The portfolio will include the renewed N-series, MQi series, and UQi series offerings, also introduce new series designed to reach a broader consumer segments, including products optimized for female riders.

This success validates our strategic expansion into the electric motorcycles that inquiry, a strong momentum for up coming launches such as FX targeting the entry level users.

Now along.

Alongside the high end electric bicycles motorcycles, we dedicate significant R&D <unk>.

Sources to the new standard compliant electric bicycles the updated regulations require substantial redesign from the limit usage of plastics to form factors. We're now planning a full rollout of compliant products beginning in the late November and extending through Q1 2026. The portfolio will include a renewed.

And in our new series offerings.

And also introduce new series designed to reach a broader consumer sentiment, including products optimized for female writers.

Beyond the new product development, we continue to invest in core technologies, including the smart writing system parts of innovation.

Yan Li: Now, beyond the new product development, we continue to invest in core technologies including the smart riding system, powertrain innovation, and R&D platformization to enhance efficiency and the capabilities. Our smart riding and AI effort focus on 3 areas, expanding the foundational safety technologies such as the ABS and millimeter wave radar, developing assisted riding features for premium models such as the two-way throttle and downhill assist, and building intelligent ecosystem to broader third-party integrations. Through partnership with Apple and Oppo, with other industry leaders, we expand the cross-device connectivity, including the off-bike safety alert and Apple Wallet key access, enhancing overall user experience. In the powertrain system, we advanced several next generation initiatives through a deeper motor control R&D and the close collaboration with our battery partners.

R&D pop organization to enhance efficiency and capabilities.

Our smart writing an effort focused on three areas expanding the foundational safety technologies.

The ABS at Midnight February radar.

Welcome to assist their writing features for premium models, such as the two weaker auto and <unk>.

And the building intelligent ecosystem two products third party integrations.

Partnership with Apple and Oracle with <unk> with other industry leaders, we extend the cross device connectivity, including the off site.

The alert and Apple wallet key axes, enhancing overall user experience.

On the powertrain system.

Several next generation initiatives through a deeper model control R&D and the close collaboration with our battery partners are focused on two key objectives, delivering higher current output for stronger acceleration and fine tune all system efficiency to extend your writing range under the diverse conditions.

Yan Li: Our efforts focus on two key objectives, delivering a higher peak current output for stronger acceleration and a fine-tune overall system efficiency to extend real-world riding range under the diverse conditions. The NXT, FXT Ultra, and FX Windstorm are the strongest examples of this R&D achievement. The enhanced powertrain architecture enables 0 to 25 km/h acceleration in just 1.92 seconds, setting a new benchmark for urban performance. For the FX Windstorm, the upgraded 3 kW high efficiency motor and optimized controller deliver top speed of 80 km/h while maintaining stable power delivery, improve thermal performance, and consistent power output even during the extended high-speed riding. Those advancements not only elevate riding performance, but also form a foundation for the new generation of a NIU powertrain platform that will scale across future product lines.

<unk> also on the FX brainstorm other strong blend of those R&D acumen.

Hence powertrain architecture enables them to 25 films products that they're issuing EPS $1 19 seconds.

Setting a new benchmark for urban performance for the FX, we swung last week kilowatt high efficiency motor on optimized controller.

Top speed up 80 kilometer power, while maintaining stable power delivery improved thermal performance that consistent.

Power output, even during the extended high speed right.

Those events not only elevate ratings performance, but also form a foundation for a new generation of a new powertrain platform that will still cross future product lines.

Now lastly, our product based R&D strategy continues to deliver meaningful operational benefit in Q3 accelerated product <unk> strengths in manufacturing consistency by increasing economy of scale.

Yan Li: Lastly, our product-based R&D strategy continues to deliver a meaningful operational benefit. In Q3, it accelerated product iteration, strengthened manufacturing consistency, and increased economy of scale. The improvements supported smooth delivery of 450,000 units, surpassing our previous peak by roughly about 20%, while enhancing margins through a shared components and module design cross product. In Q3, we continued elevating the NIU brand and deepening engagement with our core audiences, particularly in premium consumers and Gen Z riders. Our approach integrate lifestyle campaign, adding product launches, and target digital engagement to strengthen brand equity and drive conversion. We active a series of user-focused lifestyle campaigns. The Summer Ride and Splash campaign embed NIU into the outdoor leisure scenes, such as lake diving and quick hiking across major cities, generate 130 million impressions across online, offline channels.

<unk> supported smooth delivery of 450000 units.

<unk> peak by roughly about 20%.

As the margins to a share components in the module design Cross trial.

Now in Q3, we continued elevating the new brand and the deepening engagement with our core audiences, particularly in premium consumers and Gen. Z writers are approaching the great lifestyle campaign hanging Pos.

Product launches and targeted digital engagement to strengthen brand equity and drive cumbersome.

Reactive as serious or who use focused.

Lifestyle campaigns with Sunrise and splash campaign embedded into the outdoor leisure seems like diving adequate tightly.

Across major cities generally understood in million impressions across online and offline channels. Following the FX a windstorm launch with wholesale large scale tests right events in terms of Unchancy engaged riders in real mountain environment.

Yan Li: Following the FX Windstorm launch, we host a large-scale test ride event in Chengdu and Chongqing, engage riders in real mountain environment. This create authentic word of mouth within the key user segment to provide valuable feedback. Our launch event continued to highlight NIU technology leadership. On 17 June, the DU Ultra flagship launch generate about 20,000 units sold in 5 hours, with GMV exceeding RMB 228 million. The FX Windstorm launch deliver 14,000 units sold in 5 hours at 93% positive ratings, resonantly strong with the Gen Z and delivery riders. Now with strength in both offline, online channels, as of Q3, NIU surpassed 4,500 stores nationwide with 238 net new stores added in Q3 and 800 year to date. Nearly half of NIU stores were in the lower tier cities, supporting deeper market penetration.

Creating authentic the word of mouth within the keys are sticking around to provide valuable feedback.

<unk> been continuing to highlight new technology leadership that June 17th two ultra flagship launch January above 20000 units 45 hours for the CMV exceeding RMB 228 million.

The FX winter storm launch deliver 14000 units. So that you can try hours at 93%, possibly greetings.

Resonant is strong with the Gen Z and delivery riders.

Now with strength in both offline and online channels as of Q3, new surpassed 4500 stores nationwide with 238 net.

New stores added in Q3 and 800.

Year to date.

Nearly half of new stores were in the lower tier cities. According deeper market penetration.

Digital ecosystem also scaled rapidly new nomination official accounts quoted back.

Yan Li: Our digital ecosystem also scaled rapidly. We now manage 9 official flagship accounts, supported by 1,062 dealers-operated accounts. In Q3, the network generates 30,000+ live streams, 69,000 content pieces, and 740 million impressions. The online sales representing close to 70% of our total volume. We also expanded onto a new e-commerce platform, Meituan, we piloted with 10% of stores generate RMB 40 to 50 million among monthly sales. We plan to expand store coverage and motorcycles next on Kuaishou local services. Over 2,200 stores have joined. FX Windstorm ABS launched to rank number 2 nationally, reinforce our brand resonance among Gen Z riders in the lower tier market. Now turning to our overseas market.

1000, <unk> dealers operated accounts in Q3 and that will generate.

30, plus 30000, plus livestreams beacon ninth relevant content pieces that 74 740 million impressions.

The online sales representing close to 70% of our total one.

We're also expanding onto a new E. Commerce platform is how many 12 competitive with 10% stores generate RMB $40 million to $50 million monthly sales, we plan to expense to accomplish and more motorcycles mix unquiet for local services over 2200 stores have joined and FX windstorm Aps launch.

Number two nationally.

Horse out Brian residents among Gen Z writers in the lower tier markets.

Now turning to overseas market in Q3 unfolded as expected transition transitional quarter as we continue to optimize operations and preparing for our next growth cycle. The.

Yan Li: Q3 unfolded as expected transition, transitional quarter as we continue to optimize operation and preparing for our next growth cycle. The overseas sales volume reached 14,000 units, with decline in micro-mobility offset by encouraging progress in electric motorcycle. Despite Q3 being a seasonal low for European two-wheeler demand, our electric motorcycle sales reached approximately 2,500 units, up 160% year over year. The self-operated sales accounted for 76% of total. We further accelerate our self-operated dealer network expansion. Dealers in those direct distribute regions grow from 120 at the start of the year to 289 in Q3, exceeding our initial target of 250. This reflects the strong brand recognition, product competitiveness, and the gross-growing retailer confidence in NIU's direct distribution model.

The overseas sales more rich.

14000 units with declining micro mobility.

By encouraging progress electrical model cycle.

Despite Q3 being a seasonal low for European two Wheeler.

Our electric motorcycle sales reached approximately 2500 units up.

Under 60% year over year, the self operated.

Sales accounted for 76% of total.

Further accelerate our self operated dealer network expansion <unk> seen those direct distribution regions growth from under 20, and the start of the year to 290 in Q3 exceeding our initial target of 250.

This reflects a comprehensive automation product competitiveness and of course growing retailer confidence in your direct distribution model.

With channel foundations now establish a fit from a capability building towards product rollout and deeper market penetration.

Yan Li: With channel foundations now established, we will shift from capability building towards product roll and deeper channel market penetration. The product lineup unveiled at EICMA position us strongly for multi-year growth. At EICMA, the largest two-wheeler show in Milan, we showcased our international product roadmap, expanding from smart e-scooters to broader u-electric mobility portfolios. Highlights included 2026 NQiX Series with Google Maps integration, featuring a 125 km/h NQiX 1000 launching Q3 2026. The all new FQiX Series for city commuters in the L1e and L3e version for Q3 2026. The expanded XQi Series, including the 110 km/h XQi 500 Street version for H2 2026. Lastly, the Concept 06, a forward-looking 155 km/h platform featuring AI-assisted intelligence, advanced safety.

<unk> lineup and do it at come up position us strongly for multi year growth.

<unk> largest twilla showing new line with showcased our international product roadmap.

Spending from Martin excluded two product electrical mobility portfolios highlights included.

2026.

<unk> X series with Google map integration, featuring 175 kilometer power and QR 1000 launch in Q3 2006, the O'neill SQL experienced with Sealy commuters in <unk> LTE version for Q3 2006.

<unk> X series, including the 110 kilometer per hour ex USA Henry.

The second half of 2026.

And lastly, the concept zero sticks are forward looking under $55 two meter powered platform appreciate AI assistant intelligence.

And then safety.

The use of <unk> hundred was awarded top award 2025 by German leading models cycle media outlet when Feldman PFS is strong validation of our product excellence.

Yan Li: The new NQi 500 was awarded top award 2025 by German leading motorcycle media outlet, 1000PS. This is strong validation of our product excellence. Our micro-mobility volume reached to 11,900 units, down 77% year over year, reflecting market headwinds in the US, Europe, and Asia. Europe saw intensified price competition, while the US shifted towards a lower price model due to tariff dynamics. In Q3, we intentionally reduced promotion and shipment to avoid overstocking and to protect margin during period of pricing pressure and supply chain transition. Given the current inventory levels in Europe and the US, we expect the structural adjustment to continue for the next couple quarters. Look ahead, we'll continue executing our strategy of driving fast growth in the China market and scaling our international electric two-wheeler business while strategically adjusting our micro-mobility operation.

On micro mobility wound reached to 11900 units down 77% year over year, reflecting market headwinds in the U S Europe and Asia.

Europe saw intensified price competition multi use shifted towards a lower lower price model due to tariff dynamics in.

In Q3, we intentionally reduced promotion that shipment to avoid overstocking and protect margins during a period of pricing pressure on supply chain transition.

Given the current inventory levels are in Europe, and the U S. We expect the strict structure adjustment to continue for the next couple of quarters.

Now look ahead, we'll continue executing our strategy of driving fast growth in the China market and scaling all internationally electric tubular business, while strategically adjusting in micro mobility operation.

We expect China to the meal primary growth driver of strong execution across the first three quarters, we break up each quarter, demonstrating our capability and product definition channel observation is brand new for us.

Yan Li: We expect China to remain our primary growth driver of strong execution across the first three quarters. We break out product each quarter, demonstrating our capability in product definition, channel activation, and brand influence. However, we expect some uncertainty and softening in Q4 this year due to the timing of the new standard implementation. The retailers have preloaded inventory in Q3, shifting some demands from Q4. The new standard compliant product will ramp up from late November through Q1 2026, shifting part of the Q4 demand into Q1 2026. Combine those factors will likely result in a relative flat year-over-year volume in Q4. We expect growth to re-accelerate in Q1 2026 as the regulatory transition completed and the market stabilized.

However.

Some uncertainty soft maybe in Q4 this year due to the timing of the new standard implementation.

Retailers are preloaded inventory in Q3, you should see some demand from Q4.

And a new standard compliant product will ramp up from late November.

Through a Q1 2026 shifting part of the Q4 demand into Q1 2026.

Combining those factors will likely result in a relatively flat year over year volume in Q4.

We expect growth to Reaccelerate in Q1, 2026, as the regulatory transition completed and the market's stabilized.

The new standard electric bicycle lock up along with 300 to 400, new stores additions in Q4 will support a strong momentum into 2026.

Yan Li: The full new standard electric bicycle line up, along with 300 to 400 new stores additions in Q4, will support a strong momentum into 2026. Now turning into the overseas market. For electric two-wheelers, we expect strong year-over-year growth in Q4, supported by ongoing expansion of direct-to-consumer network. The new product introduced at EICMA will fuel the multi-year growth starting in 2026. In micro-mobility, we'll continue prioritizing profitability over scale in Q4, reducing promotions that focus on clearing existing inventories. This will lead a lower Q4 volume. We expect the adjustment to conclude in H1 2026, with margin return to the normal level H2 2026. Now, with that, let me turn the call to Fion Wenjuan Zhou.

Now turning into the overseas market, where electric two wheelers, we expect strong year over year growth in Q4 supported by ongoing expansion of direct distribution network. The new product, we introduced X amount, we will through the multiyear growth starting in 2000 and mistakes.

In micro mobility will continue requires housing profitability of our skills in Q4, reducing promotions that focused on clearing existing inventories. This will lead to a lower Q4 oil we expect to the adjustment to conclude in the first half of 2006 was margins return to the normal level.

Second half of 2026.

Now with that let me turn to culture.

Thank you Hello, everyone. Please note that our press release.

Fion Wenjuan Zhou: Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need. We have also uploaded cell phone mass figures to our IR website for your easy reference. As I review our financial results, I am referring to the Q3 figures, unless stated otherwise. All monetary figures are in RMB, if not specified. As Yan just mentioned, our total sales volume for Q3 was 466,000 units, up 49% compared to the same period of last year. Among this, 451,000 units sold in China, and remaining 14,000 units overseas. Nearly 50% of our sales volume in China came from our top 3 models this quarter, and the number of franchise stores in China was 4,542 at the end of Q3.

Fion Zhou: Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need. We have also uploaded cell phone mass figures to our IR website for your easy reference. As I review our financial results, I am referring to the Q3 figures, unless stated otherwise. All monetary figures are in RMB, if not specified. As Yan just mentioned, our total sales volume for Q3 was 466,000 units, up 49% compared to the same period of last year. Among this, 451,000 units sold in China, and remaining 14,000 units overseas. Nearly 50% of our sales volume in China came from our top 3 models this quarter, and the number of franchise stores in China was 4,542 at the end of Q3.

First on the comparison.

And we have all sorts of cell phone asking you guys to our IR website a reference.

Alright.

Actual results I'm, referring to the third quarter comparison.

Otherwise.

All monetary figures are in RMB.

Again as mentioned.

Total sales volume for the third quarter with 400.

66000 units.

Up 49% compared to the same period.

Among the 451000 units in China anyway.

Meaning 14000 units overseas.

Nearly 50% of our sales volume in China came from our top three models this quarter.

The number of franchise stores in China with 4542 at the end.

On the corner.

Total revenue for the third quarter amounted to 169 billion, an increase of $617 million or 65%.

Fion Wenjuan Zhou: Total revenue for Q3 amounted to RMB 1.69 billion, an increase of RMB 670 million or 65% compared to the same period of last year. The result came in slightly ahead of our guidance, primarily due to the robust sales volume growth in China during the peak season in Q3. China revenues were RMB 1.62 billion, increased to 84% year-over-year and accounting for 95% of total revenues. Of this, the scooter revenue was RMB 1.48 billion. This growth was primarily driven by a 74% increase in sales volume and coupled with a higher ASP. China scooter ASP was RMB 3,283, representing a nearly 7% year-over-year growth and remaining largely stable compared to the previous quarter. This growth was primarily driven by a favorable shift in our product mix.

Fion Zhou: Total revenue for Q3 amounted to RMB 1.69 billion, an increase of RMB 670 million or 65% compared to the same period of last year. The result came in slightly ahead of our guidance, primarily due to the robust sales volume growth in China during the peak season in Q3. China revenues were RMB 1.62 billion, increased to 84% year-over-year and accounting for 95% of total revenues. Of this, the scooter revenue was RMB 1.48 billion. This growth was primarily driven by a 74% increase in sales volume and coupled with a higher ASP. China scooter ASP was RMB 3,283, representing a nearly 7% year-over-year growth and remaining largely stable compared to the previous quarter. This growth was primarily driven by a favorable shift in our product mix.

Compared to the same period of last year and the results came in slightly ahead of our guidance primarily due to the robust sales volume growth in China during the peak season in the third quarter.

China revenues were $1 62 billion increased to 84% year over year and accounting for 95 of total revenues.

This quarter revenue was one one.

48 billion and this growth was primarily driven by a 17, 4% increase in sales volume coupled with a higher ASP.

China <unk> was RMB 3283.

January 7% year over year growth and remaining largely stable compared to the previous quarter.

And this growth was primarily driven by a favorable mix shift in our product to make.

In Q3, our top center.

Fion Wenjuan Zhou: In Q3, our top seller, NT, with a retail price range from RMB 3,699 to 4,599, continued to perform well. In the meantime, complemented by a strong contribution from the new products like the NLT and NSP range from RMB 3,899 to 6,299. Collectively, these three top sellers accounted for nearly 50% of our total sales volume this quarter. Overseas revenue was RMB 777 million, representing 5% of total revenue. Scooter revenues, including electric motorcycles and mopeds, kick scooters, and e-bikes, amounted to RMB 67 million, down from RMB 130 million in the same period of last year. This decline was driven by a decreases in sales volume and ASP of kick scooters.

Fion Zhou: In Q3, our top seller, NT, with a retail price range from RMB 3,699 to 4,599, continued to perform well. In the meantime, complemented by a strong contribution from the new products like the NLT and NSP range from RMB 3,899 to 6,299. Collectively, these three top sellers accounted for nearly 50% of our total sales volume this quarter. Overseas revenue was RMB 777 million, representing 5% of total revenue. Scooter revenues, including electric motorcycles and mopeds, kick scooters, and e-bikes, amounted to RMB 67 million, down from RMB 130 million in the same period of last year. This decline was driven by a decreases in sales volume and ASP of kick scooters.

With the retail price range from RMB 3699.

<unk> thousand 599 continued to perform well in the meantime, complemented by a strong contribution from the new products.

Our key and that.

Range from RMB 3899 to 602.

6290.

Collectively these three top centers.

Percent of our total sales volume this quarter.

Revenue was $777 million.

This is <unk>, 5% of total revenue square revenues, including electric motorcycles and mopeds Keith.

<unk> amounted to $67 million down from 130 million limited. Thank you.

And this decline was driven by a decrease in sales volume and ASP.

Alright, thank food area increased 90% year over year.

Fion Wenjuan Zhou: Overseas scooter ASP increased 90% year-over-year and 41% quarter-over-quarter to RMB 4,648. Driven by a greater proportion of revenue coming from the higher priced electronic motorcycles and mopeds, revenue from accessories, spare parts, and services were RMB 145 million, representing an 8.6% of total revenue and a 51% increase compared to the same period of last year, due to the increase in spare parts sales in China. Gross profit this quarter exceeded RMB 370 million, marking a significant improvement compared to RMB 142 million during the same period of last year and RMB 252 million last quarter.

Fion Zhou: Overseas scooter ASP increased 90% year-over-year and 41% quarter-over-quarter to RMB 4,648. Driven by a greater proportion of revenue coming from the higher priced electronic motorcycles and mopeds, revenue from accessories, spare parts, and services were RMB 145 million, representing an 8.6% of total revenue and a 51% increase compared to the same period of last year, due to the increase in spare parts sales in China. Gross profit this quarter exceeded RMB 370 million, marking a significant improvement compared to RMB 142 million during the same period of last year and RMB 252 million last quarter.

And 41% quarter over quarter to RMB, 4648, and driven by a greater proportion of revenue coming from the higher price the electronic motorcycle dental pad.

Revenue from accessories spare parts and services.

$145 million, representing eight 6% of total revenue.

51% increase compared to the same period last year due to an increase in spare parts sales in China.

Gross margin this quarter gross profit this quarter exceeding.

370 million, marking a significant improvement compared to $142 million. During the same story of last year and $252 million last quarter.

Gross margin was 21, 8% <unk> higher than the same period last year.

Fion Wenjuan Zhou: The gross margin was 21.8%, 8 PPT higher than the same period of last year, and 1.7 PPT higher than Q2, marking our best quarterly gross margin performance this year. This improvement was driven by the ongoing cost reduction initiatives and the economies of scale from higher sales volume in China market. Operating expenses for Q3 were RMB 297 million, increase of 48% compared to the same period of last year. OPEX ratio down to 17.5%, dropped from 19.6% in the same period of last year, and 21.1% in Q1. Selling and marketing expenses rose by RMB 87 million year-over-year to RMB 250 million, primarily driven by a higher spending on marketing and online promotion campaigns in China.

Fion Zhou: The gross margin was 21.8%, 8 PPT higher than the same period of last year, and 1.7 PPT higher than Q2, marking our best quarterly gross margin performance this year. This improvement was driven by the ongoing cost reduction initiatives and the economies of scale from higher sales volume in China market. Operating expenses for Q3 were RMB 297 million, increase of 48% compared to the same period of last year. OPEX ratio down to 17.5%, dropped from 19.6% in the same period of last year, and 21.1% in Q1. Selling and marketing expenses rose by RMB 87 million year-over-year to RMB 250 million, primarily driven by a higher spending on marketing and online promotion campaigns in China.

And one 7%.

Higher than the previous quarter, marking our best quarterly gross margin performance. This year and this improvement was driven by the ongoing cost reduction initiatives and the economy of scales from higher sales volume in China market.

Operating expenses for the third quarter were $297 million increased 48% compared to the same period.

And the Opex ratio down from 17, 5% dropped from 19, 6% in the same period last year and 21, one percentage in the previous quarter.

Selling and marketing expenses rose by 87 million year over year to 215.

<unk> million, primarily driven by a higher spending on marketing and online promotion campaigns in China, Donnie Martin expenses, representing 12, 7% of revenue compared to 12, 5% in the same period.

Fion Wenjuan Zhou: Selling and marketing expenses representing 12.7% of revenue compared to 12.5% in the same period of last year and down from 16.1% last quarter. R&D expenses increased by RMB 13 million year-over-year to RMB 43 million, primarily due to the higher staff costs and share-based compensation. R&D expenses representing 2.6% of revenue compared to 3% in the same period of last year and down from 3.5% last quarter. G&A expenses decreased by RMB 4 million year-over-year to RMB 39 million, mainly due to the improved cash collection from account receivables, which resulted in the reversal of bad debt provision.

Fion Zhou: Selling and marketing expenses representing 12.7% of revenue compared to 12.5% in the same period of last year and down from 16.1% last quarter. R&D expenses increased by RMB 13 million year-over-year to RMB 43 million, primarily due to the higher staff costs and share-based compensation. R&D expenses representing 2.6% of revenue compared to 3% in the same period of last year and down from 3.5% last quarter. G&A expenses decreased by RMB 4 million year-over-year to RMB 39 million, mainly due to the improved cash collection from account receivables, which resulted in the reversal of bad debt provision.

Year and down from 16, 1% last quarter R&D expenses increased by <unk> <unk>.

Over year to $43 million, primarily due to the higher staff cost as chairman compensation R&D expenses, representing two 6% of revenue compared to 3% in the same year.

Year end down from three 5% quarter.

G&A expenses decreased by 4 million year over year to $39 million, mainly due to the improved cash collections from accounts receivable, which resulted in the reversal of bad debt provision and G&A expenses, representing two 3% of revenue down significantly from.

Fion Wenjuan Zhou: G&A expenses representing 2.3% of revenue, down significantly from 4.2% in the same period of last year, while up from 1.5% last quarter, as the company benefited largely from foreign currency exchange gains in the previous quarter. The net income was RMB 82 million, with a net margin of 4.8% on the GAAP accounting, compared to a net loss of RMB 41 million for the same period of last year and net income of RMB 5.9 million for last quarter. The non-GAAP net income was RMB 88 million. Turning to our balance sheet and cash flow. We ended the quarter with RMB 1.8 billion versus RMB 1.1 billion last year end in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to RMB 433 million.

Fion Zhou: G&A expenses representing 2.3% of revenue, down significantly from 4.2% in the same period of last year, while up from 1.5% last quarter, as the company benefited largely from foreign currency exchange gains in the previous quarter. The net income was RMB 82 million, with a net margin of 4.8% on the GAAP accounting, compared to a net loss of RMB 41 million for the same period of last year and net income of RMB 5.9 million for last quarter. The non-GAAP net income was RMB 88 million. Turning to our balance sheet and cash flow. We ended the quarter with RMB 1.8 billion versus RMB 1.1 billion last year end in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to RMB 433 million.

Four 2% in the same period last year.

While up from one 5% last quarter.

Company benefited largely from foreign currency exchange gain in the previous quarter.

The net income with 82 ammonia within that margin of four 8% on a GAAP accounting compared to a net loss of 40.

41 million for the same periods last year and net income of $5 9 million for last quarter.

non-GAAP net income was $88 million.

And turning to our balance sheet and cash flow. We ended the quarter with RMB, one 8 billion versus $1 1 billion last year and cash.

Keep cash from deposits and short term investments.

Our operating cash flow amounting to $433 million.

Capex amounted to 73 million $73 million, reflecting an increase of $32 million compared to the same period last year and this can be accurately which is primarily due to an increase in new opening of new stores and module cost in China.

Fion Wenjuan Zhou: The CapEx amounted to RMB 73 million, reflecting an increase of RMB 32 million compared to the same period of last year. This can be attributed primarily to an increase in the opening of new stores and modules COF in China. Now let's turn to guidance. We expected the Q4 revenue to be in the range of RMB 737 million to 901 million, representing a year-over-year change of -10% to +10%. Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to uncertainties relating to various factors. With that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.

Fion Zhou: The CapEx amounted to RMB 73 million, reflecting an increase of RMB 32 million compared to the same period of last year. This can be attributed primarily to an increase in the opening of new stores and modules COF in China. Now let's turn to guidance. We expected the Q4 revenue to be in the range of RMB 737 million to 901 million, representing a year-over-year change of -10% to +10%. Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to uncertainties relating to various factors. With that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.

And now let's turn to guidance, we are expecting the fourth quarter revenue should be in the range of RMB 737 million to $901 million.

For Dan here year over year change of minus 10 to plus 10%.

And please be aware that this outlook is based on information available as of the date and reflect the company's current and preliminary expectation, which is subject to change due to the uncertainties relating to various factors.

That well now open the call for any questions on your behalf are up.

Operator, Please go ahead.

Thank you.

To ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one on one again.

Operator: Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, you will need to press star one and one on your telephone to register a question and wait for your name to be announced. To withdraw your question, please press star one and one again. Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Li for closing remarks.

Please stand by while we compile the Q&A Keith.

Once again, you will need to press star one on one on your telephone to read just a quick question and wait for your name to be announced to withdraw. Your question. Please press star one and one again.

Yes.

Thank you seeing no more questions in the queue, Let me turn the call back to Mr. <unk> for closing remarks.

Alright, Thank you operator, and thank you all for participating on today's call and for your support we appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

Yan Li: Thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you.

This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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