Q1 2026 Niu Technologies Earnings Call
Operator: Conference Call. Now, I will turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.
Speaker #1: Difference 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.
Speaker #1: 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 New Technologies, Ms. Li, please go ahead.
Speaker #2: Thank you, Operator, and hello everyone. Welcome to today's conference call to discuss new technologies' results for the first quarter of 2026. The earnings press release corporate presentation and financials spreadsheet has been posted on our Investor Relations website.
Kristal Li: Thank you, operator, and hello, everyone. Welcome to today's conference call to discuss NIU Technologies results for Q1 2026. The earnings press release, corporate presentation, and financial spreadsheet have been posted on our investor relations website. This call is being webcast from the 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 provisions of the US 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 to update any forward-looking statements except as required by law.
Speaker #2: This call is being webcast from companies' 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 Provisions of the US Private Security Litigation Reform Act of 1995.
Speaker #2: 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 companies' public rollings with the securities and exchange commission.
Speaker #2: The company does not assume any obligation to update any forward-looking statements except as required by law. Our earnings press release in this call included discussion of certain non-GAAP financial measures.
Kristal Li: Our earnings press release and this call include a discussion of certain non-GAAP financial measures. The press release contain 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. Wenjuan Zhou. Now, let me turn the call over to CEO Yan.
Speaker #2: The press release contained 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. Liang Zhou.
Speaker #2: Now let me turn the call over to CEO
Speaker #3: Thank you, Kristal. Hello everyone. Thank you for joining our first quarter 2026 results call. The first quarter of 2026 was a period of high-quality execution of strategic resilience within a complex regulatory environment.
Yan Li: Thank you, Kristal. Hello, everyone. Thank you for joining our Q1 2026 results call. The Q1 2026 was a period of high-quality execution and strategic resilience within a complex regulatory environment. The total sales volume reached 261,000 units, representing a robust of 28.7% year-over-year increase. Revenue for the quarter reached RMB 909.52 million, up 33.4% year-over-year. In China, the sales volume increased 35.4% to nearly 248,000 units. This growth was powered by a major structural breakthrough in our electric motorcycle segment, which successfully offset a temporary contraction in the electric bicycle market as the new national standard took full effect. Overseas, the sales of 13,686 units reflected a 32.4% decline.
Speaker #3: The total sales volume reached $261,000 units, representing a robust 28.7% year-over-year increase. Revenue for the quarter reached R&D $909.52 million, up 33.4% year-over-year. In China, the sales volume increased 35.4% to nearly $248,000 units.
Speaker #3: This growth was powered by major structural breakthroughs in our electric motorcycle segment, which successfully offset a tempered contraction in the electric bicycle market as a new national standard took full effect.
Speaker #3: Overseas, the sales of 13,686 units reflected a 32.4% decline. This remains a planned result of our ongoing channel structure optimization and discipline inventory management.
Yan Li: This remains a planned result of our ongoing channel structure optimization and disciplined inventory management. We're staying completely focused on our core objective, prioritizing healthy retail sales growth and the long-term profitability over short-term shipping volume. Let me walk through our China overseas operation in more detail. In China, our Q1 sales volume reached 247,938 units, a 35.4% increase year-over-year. While this growth is robust, internal data reveals a significant positive structural evolution of our brand. To end this quarter, we must look at a divergence between two product categories. First, in the electric motorcycle category, the segment surged by a staggering 3x year-over-year increase.
Speaker #3: We're staying completely focused on our core objective: prioritizing healthy retail sales through and the long-term profitability over a short-term shipping volume. Now let me walk through our China overseas operation in more detail.
Speaker #3: In China, our first quarter sales volume reached a $247,938 units, a 35.4% increase year-over-year. While this growth is robust, internal data reveals a significant positive structural evolution of our brand.
Speaker #3: To end this quarter, we must look at a divergence between two product categories. First, in the electric motorcycle category, the segment surged by a stagnant 3x year-over-year increase.
Speaker #3: Suiting our momentum that begins in Q4 last year with our windstorm product line, we further accelerate our growth in the electric motorcycle market, expanding our footprint directly into the Tier 2 and Tier 3 cities.
Yan Li: Building on our momentum that begins in Q4 last year with our Windstorm product line, we further accelerate our growth in the electric motorcycle market, expanding our footprint directly into tier 2 and tier 3 cities. This is no longer just a temporary trend, it's a definitive market breakthrough, proving NIU's ability to rapid scale and capture the meaningful volume in the segment. In the electric bicycle segment, the sales have softened. This was fully anticipated as the market remains transitional, waiting period as the new standard rolling out last December. We're managing this period deliberately by rolling out our new product lines in a phased approach, ensuring we're perfectly positioned to capture the high-quality volume as consumer demand returns. This shift has fundamentally redefined our geographic footprint as well. Historically, NIU has been perceived as a tier 1 city brand, with the market represents 60% of sales.
Speaker #3: This is no longer just a temporary trend; it's a definitive market breakthrough, proving new ability to rapidly scale and capture the meaningful volume in the segment.
Speaker #3: In the electric bicycle segment, the sales have softened. This was fully anticipated as the market remained transitional, waiting period as a new standard rolling out last December.
Speaker #3: We're managing this period deliberately by rolling out our new product lines in a phased approach, ensuring we're perfectly positioned to capture the high-quality volume as consumer demand returns.
Speaker #3: Now, this shift has fundamentally redefined our geographic footprint as well. Historically, NIU has been perceived as Tier 1 city brand with the market representing 60% of sales.
Speaker #3: In Q1, we sold the Tier 1, the new Tier 1 city softened. For the Tier 2 and Tier 3 cities grew at a faster pace, fueled by the rapid adoption of electric motorcycles.
Yan Li: In Q1, we saw the tier 1, the new tier 1 cities softened, where the tier 2 and tier 3 cities grow at a faster pace, fueled by the rapid adoption of electric motorcycles. This represents a massive strategic milestone, improves NIU's brand equity, successfully scaling beyond the urban elites, and penetrating the broader mass premium China market. This shift has set a powerful foundation for 2026. By breaking through the lower-tier motorcycle market, we have added a new growth engine. When the electric motorcycle market inevitably recovers, our total growth will rebound with double the force. To ensure we're the first to capture that recovery, we made deliberate strategic decisions to front-load our investment in branding, R&D, and the new product launch in Q1.
Speaker #3: This represented a massive strategic milestone, improves NIU's brand equity, successfully scaling beyond the urban elites and penetrating the broader mass premium China market. Now, this shift has set a powerful foundation for 2026.
Speaker #3: By briefing through the lower-tier motorcycle market, we have added a new growth engine. When the electric motorcycle market inevitably recovers, our total growth will rebound with double the force.
Speaker #3: To ensure we're the first to capture that recovery, we made deliberate strategic distinction to front-load our investment in branding, R&D, and the new product launch in Q1.
Speaker #3: Now, in branding and marketing, recognizing 2026 is a pivotal year for our brand's revolution, we made a proactive decision to front-load our marketing investment in this quarter.
Yan Li: Now, in branding and marketing, recognizing 2026 is a pivotal year for our brand's revolution, we made a proactive decision to front-load our marketing investment in Q1. We chose to capture the consumer mindshare ahead of the curve by building a massive brand awareness in Q1. We have ensured as the new national standard transition stabilized, NIU is well-positioned to capture its unmet demand. In Q1, we executed three major saturation initiatives. First, our two global ambassador strategy. In late January, we officially announced Wu Lei and Song Yuqi as NIU's global brand ambassadors, the first strategy of its kind in our industry. Wu Lei's image as a high-performance outdoor enthusiast resonated with our core premium users, while Song Yuqi significantly extended our reach among Gen Z and female audiences. This campaign was activated across 40-plus cities and 80-plus global landmarks, generating an unprecedented 3.4 billion impressions.
Speaker #3: We chose to capture the consumer mindset ahead of the curve by building a massive brand awareness in Q1. We have ensured, as the new national standard transition stabilized, NIU is well positioned to capture this unmet demand.
Speaker #3: In Q1, we executed three major saturation initiatives. First, our do-global ambassador strategy. In late January, we officially announced Wulei and Sun Yat-che as NIU's do-global brand ambassadors, the first strategy of its kind in our industry.
Speaker #3: Wulei's image as a high-performance outdoor enthusiast resonated with our core premium users, while Sun Yat-che significantly extended our reach among Gen Z and female audiences.
Speaker #3: This campaign was activated across 40-plus cities and 80-plus global landmarks, generating an unprecedented 3.4 billion impressions. Second, our Spring Festival saturation campaign. We capitalized on the highest-frequency travel period in China and large-scale offline campaigns across 37 cities and 42 transportation hubs and nearly 3,000 cinemas.
Yan Li: Second, our Spring Festival saturation campaign, which capitalized on the highest frequency travel period in China and large-scale offline campaigns across 37 cities, 42 transportation hubs, and nearly 3,000 cinemas. This generated over 400 million impressions, firmly embedding the message, Premium smart equals NIU, in the minds of travelers. Third, the 2026 technology launch event. On 17 March, we unveiled our next-generation AI mobility strategy. This event was not just a product review, but also repositioned NIU as a technology leader in the AI era. With over 130 media outlets and 450 million impressions, we have redefined what smart two-wheelers can be. Now, those intensive branding activities led to a 4x plus year-over-year increase in the marketing expense for Q1. This was a one-time frontloading of our annual budget. Historically, Q1 has seen a lower marketing spend due to seasonal retail trends.
Speaker #3: This generated over $400 million impressions, firmly embedded in the message premium smart equals NIU in the mind of travelers. Third, the 2026 technology launch event.
Speaker #3: On March 17th, we unveiled our next-generation AI mobility strategy. This event was not just a product review but also repositioned NIU as a technology leader in the AI era.
Speaker #3: With over 130 media outlets and 460 million impressions, we have redefined what smart two-wheelers can be. Now, those intensive branding activities led to a 4x plus year-over-year increase in the marketing expense for Q1.
Speaker #3: So this was a one-time front-loading of our annual budget. Historically, the first quarter has seen a lower marketing spend due to a seasonal retail trend.
Yan Li: However, we choose to strategically shift our marketing weight in Q1 this year to ignite the brand momentum for the entire fiscal year. Now, as we move into Q2 and beyond, you will see that our marketing-to-revenue ratio normalized, and we have already established deep brand equity to drive our 2026 growth target. Now we're transitioning directly from this investment phase to execution, the harvest phase. Now, in terms of R&D and technology, the technology and continuous innovation remain core to NIU's long-term strategy as they are fundamental to our ability to compete far beyond simple pricing and basic hardware specifications. Our primary technology focus this year is to bring the power of AI to the electric two-wheeler industry, zeroing in on three major development areas. The AI operating system, intelligent chassis system, and intelligent riding technology. First, on the NIU's AI OS.
Speaker #3: However, we choose to strategically shift our marketing ways in Q1 this year. To ignite the brand momentum for the entire fiscal year. Now, as we move into Q2 and beyond, you will see that our marketing-to-revenue ratio normalized.
Speaker #3: We have already established deep brand equity required to drive our 2026 growth target. Now, we're transitioning directly from this investment phase to our execution and harvest phase.
Speaker #3: Now, in terms of R&D and technology, the technology and continuous innovation remain core to NIU's long-term strategy as they are fundamental to our ability to compete far beyond simple pricing and basic hardware specifications.
Speaker #3: Our primary technology focus this year is to bring the power of AI to the electric two-wheeler industry, zeroing in on three major development areas.
Speaker #3: The AI operating system Intelligent Chassis System and Intelligent Writing Technology. First, on the NIU's AI OS, launched on March 17th event, the new AI OS is our cornerstone to redefining the next era of intelligent writing.
Yan Li: Launched at our 17 March event, the new AI OS is our cornerstone to redefining the next era of intelligent riding. As the industry's first mass-produced AI dashboard system, it represents a technological milestone, integrating AI-enabled voice assistant with high-performance automotive-grade operating system. The second is the intelligent chassis platform. Also introduced our next-generation intelligent chassis platform. This platform is engineered to integrate advanced safety and performance systems, including ABS, TCS, continuous damping control, battery management system, and lighting system into a single unified vehicle-level architecture. Based on this platform, we aim to introduce several industry-first features for mass-produced two-wheelers, such as adaptive driving beam AI headlights and adaptive CDC suspension. The last, we do a strategic partnership with the leading automotive-grade technology companies. We're bringing advanced rider assistant functionalities to the two-wheeler segments. This includes integrating cutting-edge hardware like advanced visual recognition systems and high-performance processing chips.
Speaker #3: As the industry's first mass-produced AI dashboard system, it represents a technological milestone integrating AI enabled voice assistant with high-performance automotive-grade operating system. Now, the second is the Intelligent Chassis Platform, also introduced our next-generation intelligent chassis platform.
Speaker #3: This platform is engineered to integrate advanced safety and performance systems, including TABS, TCS, continuous damping control, battery management system, and lighting system into a single unified vehicle-level architecture.
Speaker #3: Based on this platform, we aim to introduce several industry-first features for mass-produced two-wheelers. Such as adaptive driving beam, AI headlights, and adaptive CDC suspension.
Speaker #3: And the lastly, through a strategic partnership with the leading automotor-grade technology companies, we're bringing advanced rider assistant functionality to the two-wheeler segments. This includes integrating cutting-edge hardwares like advanced visual recognition systems, and high-performance processing chips.
Yan Li: Now, supported directly by those core technologies, we launched the industry's first AI-enabled electric bicycle, the NXT2 Ultra, as our flagship model. Now, talking about our product matrix. Our product strategy in Q1 was clear. It's driving aggressive growth in the electric motorcycle segment while building a dominant portfolio for the electric bicycle recovery. First, to lead the electric bicycle transition, we launched the NXT2 series, priced from RMB 5,299 to 12,999. The flagship NXT2 Ultra is the industry's first AI-powered e-bicycle, featuring our AI OS, two-channel ABS, and millimeter wave radar. This isn't just a bike, it's a statement that NIU is owning the high-end market. Second, we expand our total addressable market with the Y Series. We officially entered the female mobility segment with the Y Series, endorsed by our ambassador, Song Yuqi, at a competitive RMB 3,000 to 4,000 price point.
Speaker #3: Now, supported directly by those core technologies, we launched the industry's first AI-enabled electric bicycle, the NXT2 Ultra, as our flagship model. Now, talking about our product matrix, our product strategy in Q1 was clear.
Speaker #3: It's driving an aggressive growth in electric motorcycle segment while building a dominant portfolio for the electric bicycle recovery. Now, first, to lead the electric bicycle transition, we launched the NXT2 series priced from R&D $52.99 to R&D $12,999.
Speaker #3: The flagship NXT2 Ultra is the industry's first AI-powered e-bicycle, featuring our AI OS, a two-channel ABS, and millimeter wave radar. This isn't just a bike; it's a statement that NIU's own high-end market.
Speaker #3: Second, we expanded our total addressable market with the Y series. We officially entered the female mobility segment with the Y series, endorsed by our ambassador Sun Yat-che at a competitive R&D $3,000 to $4,000 price point.
Speaker #3: And third, the NX Marathon, our new volume engine, to capitalize on our 3x growth in electric motorcycle market. We launched the NX Marathon at an R&D $6,499.
Yan Li: Third, the NX Marathon, our new volume engine. To capitalize our 3x growth in the electric motorcycle market, we launched the NX Marathon at RMB 6,499. This model targets long-range family commuters, offers a 146-kilometer drive range, and has flagship features such as magic wheel at a mainstream price point. The market response was immediate. Within just 5 hours of launch, the NX Marathon generated over RMB 91 million in sales, ranking number one across major e-commerce platforms. Those performance proves our hero product strategy is working. Now in Q1, we continued to strengthen our both the offline retail sales and online ecosystem operations. In terms of online channels, it delivered another standout quarter. The online sales increased by 53%, accounting for approximately 46% of domestic retail sales, demonstrating a continuous strength of our online to offline operation model.
Speaker #3: This model targeted a long-range family commuter's offers a 146-kilometer drive range as flagship features. Such as Magic Wheel at a mainstream price point. On the market expense was immediate.
Speaker #3: Within just five hours to launch, the NX Marathon generated over R&D $91 million in sales. Ranking number one across major e-commerce platforms. Those performance proved our hero product strategy is working.
Speaker #3: Now, in Q1, we continued to strengthen our both the offline retail sales and online ecosystem operations. In terms of online channels, it delivered another standout quarter.
Speaker #3: The online sales increased by 53%, accounting for approximately 46% of domestic retail sales. Demonstrating a continuous trend of our online-to-offline operation model. Also on Douyin, we conducted more than 32,000 live streams, generating over $270 million impressions.
Yan Li: Also on Douyin, we conducted more than 32,000 live streams, generating over 270 million impressions. We also continued to spend on Kuaishou and Meituan to further broaden our digital retail coverage. Now turning to our international operations. We're navigating a deliberate structural transition to prioritize the healthy fundamentals. Our high-margin electric motorcycle business remains a key strategic priority and is showing a strong momentum. Shipment reached more than 2,000 units, a 29% year-over-year increase. Our European dealer network expanded from 307 to 360 active locations this quarter. Now in the micro-mobility segment, international sales was down 37% year-over-year. First, this is regarding the channel distribution restructuring. During Q1, we completed a major structural shift to a linear distribution model in our key market like Germany and US. This critical action allows us to significantly minimize the ongoing channel operation expenses.
Speaker #3: We also continue to expand on Kuaishua and Meituan, further broaden our digital retail coverage. Now, turning to our international operations, we're navigating a deliberate structural transition to prioritize a healthy fundamentals.
Speaker #3: Our high-margin electric motorcycle business remains a key strategic priority and is showing a strong momentum. Shipment reached more than 2,000 units in 29% year-over-year increase.
Speaker #3: Our European dealer network expanded from 307 to 360 active locations this quarter. Now, in the micromobility segment, the international sales were down 37% year-over-year.
Speaker #3: First, this is regarding the channel distribution structuring. During the first quarter, we completed a major structural shift to a linear distribution model in our key market like Germany and US.
Speaker #3: This critical action allows us to significantly minimize the ongoing channel operation expenses. Consequently, Q1 started as a transition phase where the major retail partners such as Best Buy in the United States and the MediaMart in Germany focused primarily on sell-out of their existing retail inventories.
Yan Li: Q1 served as a transition phase where the major retail partners, such as Best Buy in the United States and MediaMarkt in Germany, focus primarily on sell-off of their existing retail inventories. The fresh stock-up period under the new distribution model is only in the beginning now in Q2. Reflecting our current inventory positions, we are holding an elevated volume of micro-mobility inventories in Europe and the United States, stemming from lower than anticipated sales in 2025. Our primary mandate for the remainder of 2026 is clear, is to accelerate unit sales volume and aggressively reduce the inventory back to a lean and healthy baseline. To execute this inventory clearance swiftly and protect against long-term operation drag, we're implementing targeted price promotions throughout the rest of the year, especially on older model products. Those efforts will depress our micro-mobility contribution margins throughout the year.
Speaker #3: The fresh stock-out period under the new distribution model is only in the beginning now in Q2. Second, reflecting on our current inventory positions, we're holding an elevated volume of micromobility inventories in Europe and the United States, stemming from lower-than-anticipated sales in 2025.
Speaker #3: Our primary mandate for the remainder of 2026 is clear: it's to accelerate unit sales volume and aggressively reduce the inventory backlog back to a lean and healthy baseline.
Speaker #3: To execute this inventory clearance swiftly and protect against long-term operation drag, we're implementing targeted price promotions throughout the rest of the year. Especially on older model products.
Speaker #3: So those efforts will depress our micromobility contribution margins throughout the year. While this discounting strategy presented short-term headwinds to our profitability matrix, it is necessary to bring our global micromobility operation back to a clean, optimized and highly stable foundation for local sub-2026.
Yan Li: While this discounting strategy present a short-term headwind to our profitability matrix, it is necessary to bring our global micro-mobility operation back to a clean, optimized, and highly stable foundation for the course of 2026. Now looking ahead, we will continue executing our strategy with a focus on sustainable and quality-driven growth. In China, we expect the electric bicycle market will recover gradually throughout Q2. We're taking a cautious view. To lead this market, we're executing a phased out roll-out of our full compliant product mix, anchored by the NXT2 and the Y Series. Those position us with a comprehensive premium lineup ahead of a critical June and Q3 selling season. Meanwhile, our electric motorcycle category will continue to be our primary growth engine. We have additional models targeting female riders and technology enthusiasts planned for Q2 and H2.
Speaker #3: Now, looking ahead, we'll continue executing our strategy with a focus on sustainable and quality-driven growth. In China, we expect the electric bicycle market will recover gradually throughout Q2.
Speaker #3: We're taking cautious view to lead this market where executing a phase-out rollout of our full-compound product mix anchored by the NXT2 and the Y series those position us with a comprehensive premium lineup ahead of a critical junior end of Q3 selling season.
Speaker #3: Meanwhile, our electric motorcycle category will continue to be our primary growth engine. We have additional models targeting female riders and technology enthusiasts planned for Q2 and second half of the year.
Speaker #3: And the upcoming 618 shopping festival will be the first major retail test of those expanded portfolios. Now, overseas, our direct-to-retail strategy in the electric motorcycles is gaining speed.
Yan Li: The upcoming 618 Shopping Festival will be the first major retail test of those expanded portfolios. Overseas, our direct-to-retail strategy in the electric motorcycles is gaining speed. We expect our dealer count to surpass 400 locations by the year-end, supporting both volume growth and improved profitability. In the micro-mobility, as I detailed moments ago, our absolute operation priority for the remainder of 2026 is to aggressive inventory normalization and maximizing retail sell-through. We expect our linear operate channel transition to finalize throughout H1 of this year with our broad and promotional clearance, and the inventory normalization largely conclude by H2 of 2026. In summary, we have used Q1 to do the heavy lifting required for a transformative year.
Speaker #3: We expect our dealer accounts to surpass 400 locations by the year-end, supporting both volume growth and improved profitability. In the micromobility, as I detailed moments ago, our upsell operation priority for the remainder of 2026 is to aggressively inventory normalization and maximizing retail sales through.
Speaker #3: We expect our linear operating channel transition to finalize throughout the first half of this year with our broadened promotional clearance and inventory normalization largely concluded by the second half of 2026.
Speaker #3: So in summary, we have used the first quarter to do the heavy lifting required for a transformative year. By front-loading our marketing investing deeply in our AI technology roadmap and diversifying our product portfolio, and cleaning up our global channels, we have moved beyond the transition phase.
Yan Li: By front-loading our marketing, investing deeply in our AI technology roadmap, and diversifying our product portfolio, and clean up our global channels, we have moved beyond the transition phase. We believe those strategic actions have laid a solid foundation to drive sustainable and high-quality growth in Q2, and will serve as a catalyst to accelerate our growth in the latter half of the year. We're confident in our path and focused on execution. Now I will turn over to our CFO, Wenjuan Zhou, to talk about the financials.
Speaker #3: We believe those strategic actions have laid a solid foundation to drive sustainable and high-quality growth in Q2. And we'll serve as a catalyst to accelerate our growth in the latter half of the year.
Speaker #3: We're confident in our path and focused on execution. Now, I'll turn over to our CFO, Fian Zhou, to talk about the financials.
Speaker #1: Thank you, Yan. Hello, everyone. 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.
Wenjuan Zhou: Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded the Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring the Q1 figures unless I say otherwise, and all monetary figures are in RMB if not specified. As Yan just mentioned, our total sales volume for Q1 was 262,000 units, up 29% compared to the same period of last year. 248,000 units were sold in China, while the remaining 14,000 units sold overseas. Over 60% of our sales volume in China came from the top three bestsellers. The total revenue for Q1 amounted to RMB 910 million, an increase of RMB 228 million or 33% compared to the same period of last year.
Speaker #1: As I review our financial results, I'm referring the first quarter figures unless I say otherwise. And all monetary figures are in RMB, if not specified.
Speaker #1: As Yan just mentioned, our total sales volume for the first quarter was 262,000 units, up 29% compared to the same period of last year.
Speaker #1: 248,000 units were sold in China, while the remaining 14,000 units sold overseas. Over 60% of our sales volume in China came from the top three bestsellers.
Speaker #1: The total revenue for the first quarter amounted to 910 million, an increase of 228 million, or 33% compared to the same period of last year.
Speaker #1: China revenue was 854 million, accounting for 94% of the total revenue. Of this, the scooter revenue was 774 million, a year-over-year increase of 42%.
Wenjuan Zhou: China revenue was RMB 854 million, accounting for 94% of the total revenue. Of this, the scooter revenue was RMB 774 million, a year-over-year increase of 42%. This growth was primarily driven by a sales volume and improvement in the revenue per e-scooters. China scooter ASP were RMB 3,120, up nearly 5% year-over-year. While the overseas revenue were RMB 56 million, representing a 6% of the total revenue, the scooter revenue, including electronic motorcycles, mopeds, kick scooters, and e-bikes, amounted to RMB 51 million, down from RMB 60 million in the same period of last year. This decline was driven by the lower sales volume and reduced the revenue per kick scooters. Partially offset by a higher revenue per electronic motorcycle and mopeds, which command higher retail prices. The sales volume in the international market shifted in favor of the electronic motorcycle and mopeds category.
Speaker #1: And this growth was primarily driven by a sales volume and an improvement in the revenue per e-scooters. China's scooter ESP or RMB, 3,120, up nearly 5% year-over-year.
Speaker #1: While the overseas revenue was 56 million, representing a 6% of the total revenue, the scooter revenue, including electronic motorcycles, mopeds, kick scooters, and e-bikes, amounted to 51 million, down from 60 million in the same period of last year.
Speaker #1: And this decline was driven by the lower sales volume and reduced revenue per kick scooters. Partially offset by a higher revenue per electronic motorcycle and mopeds, which combined higher retail prices.
Speaker #1: The sales volume in the international market shifted in favor of the electronic motorcycle and mopeds category. The premium pricing of this product further contributed to a year-over-year increase in the ASP of overseas scooters.
Wenjuan Zhou: The premium pricing of this product further contributed to a year-over-year increase in the ASP of overseas scooters, which rose from RMB 2,962 to RMB 3,716. The revenue from accessories, spare parts, and services was RMB 85 million, a 13% increase compared to the same period of last year, mainly driven by the higher revenue from new services. The gross profit for this quarter exceeded RMB 159 million, marking a significant improvement compared to RMB 118 million during the same period of last year. The gross margin was 17.4%, 0.1 ppt higher compared to the same period of last year, and 2.1 ppt higher than the previous quarter. The domestic gross margin improved due to a favorable high margin product mix, which boosted overall gross margin by 2 ppts. However, these gains were offset by a 1.9 ppt strike from the lower key scooters margin.
Speaker #1: Which rose from RMB 2,962 to RMB 3,716. The revenue from accessories, spare parts, and services was 85 million, a 13% increase compared to the same period of last year.
Speaker #1: Mainly driven by the higher revenue from new services. And the growth profit for this quarter exceeded 159 million, marking a significant improvement compared to 118 million during the same period of last year.
Speaker #1: The growth margin was 17.4%, 0.1 PPT higher compared to the same period of last year, and 2.1 PPT higher than the previous quarter. The domestic growth margin improved due to a favorable high margin product mix, which boosted overall growth margin by 2 PPTs.
Speaker #1: However, this gains were offset by a 1.9 PPT strike from the lower kick scooters margin. The operating expenses for the first quarter were 264 million, increased 99 million, or 60% compared to the same period of last year.
Wenjuan Zhou: The operating expenses for Q1 were CNY 264 million, increased CNY 99 million, or 60%, compared to the same period last year. The OPEX ratio was 29% compared from the 24.2% in the same period of last year, down from 30.5% in the last quarter. Selling and marketing expenses rose by CNY 65 million year-over-year to CNY 180 million, primarily driven by the intensified marketing initiatives in domestic market during the holiday season, as well as a higher depreciation and amortization expenses and staff cost. Selling and marketing expenses accounted for 19.8% of revenue, up from 16.8% in the same period of last year, down from 21.3% in last quarter. R&D expenses increased by CNY 12 million year-over-year to CNY 41 million, primarily due to an increase in design and testing costs as well as the staff cost.
Speaker #1: The OPEX ratio was 29% compared from the 24.2% in the same period of last year, but down from 30.5% in the last quarter. Selling and marketing expenses rose by 65 million year-over-year to 180 million.
Speaker #1: Primarily driven by the intensified marketing initiatives in domestic market during the holiday season. As well as a higher depreciation and amortization expenses. And staff cost.
Speaker #1: Selling and marketing expenses accounted for 19.8% of revenue, up from 16.8% in the same period of last year, but down from 21.3% in last quarter.
Speaker #1: R&D expenses increased by 12 million year-over-year to 41 million. Primarily due to an increase in design and testing cost, as well as the staff cost.
Speaker #1: The R&D expenses representing 4.5% of revenue compared to 4.4% in the same period of last year, but down from 7.3% in last expenses increased by 22 million year-over-year to 42 million.
Wenjuan Zhou: The R&D expenses representing 4.5% of revenue compared to 4.4% in the same period of last year, down from 7.3% in last quarter. G&A expenses increased by CNY 22 million year-over-year to CNY 42 million, largely driven by an increase from foreign currency exchange losses. The G&A expenses constitute 4.7% of revenue, up from 3% in the same period of last year and 1.8% in last quarter. Excluding the impact of foreign currency exchanges, the G&A expenses were CNY 23 million, compared to CNY 30 million in the same period last year. In Q1, we had a net loss of CNY 94 million, with a net loss margin of 10.3% under GAAP accounting, compared to a net loss of CNY 39 million with a net loss margin of 5.7% for the same period of last year. The non-GAAP net loss was CNY 88 million, with a non-GAAP net loss margin of 9.7%.
Speaker #1: Largely driven by an increase from foreign currency exchange losses. The G&A expenses constituted 4.7% of revenue, up from 3% in the same period of last year, and 1.8% in last quarter.
Speaker #1: Excluding the impact of foreign currency exchanges, the G&A expenses were 23 million, compared to 30 million in the same period of last year. In the fourth quarter, we had a net loss of 94 million with a net loss margin of 10.3% on the GAAP accounting, compared to a net loss of 39 million with a net loss margin of 5.7% for the same period of last year.
Speaker #1: And the non-GAAP net loss was 88 million with a non-GAAP net loss margin of 9.7%. Turning to our balance sheet and cash flow, we ended this quarter with R&D 1.4 billion, remained flat compared to the end of last year.
Wenjuan Zhou: Turning to our balance sheet and cash flow, we ended Q1 with RMB 1.4 billion, remain flat compared to the end of last year in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to RMB 131 million. CapEx for Q1 amounted to RMB 70 million, reflecting an increase of RMB 46 million compared to the same period of last year. This can be primarily attributed to an increase in opening of new stores and module costs in China. Now let's turn to guidance. We expected Q2 revenue to be in the range of RMB 1.57 to 1.82 billion, an increase of 25% to 45% year-over-year.
Speaker #1: In cash, restricted cash, term deposits, and short-term investments. Of our operating cash inflow, amounted to 131 million. CAPEX for the first quarter amounted to 70 million, reflecting an increase of 46 million compared to the same period of last year.
Speaker #1: And this can be primarily attributed to an increase in opening of new stores and module cost in China. And now let's turn to guidance.
Speaker #1: We expected the second quarter revenue in the range to be in the range of R&D 1.57 billion to 1.82 billion, an increase of 25% to 45% year-over-year.
Speaker #1: 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 a various factors.
Wenjuan Zhou: Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to uncertainties relating to various factors. With that, let's now open the call for any questions that you may have for us. Operator, please go ahead.
Speaker #1: And with that, let's now open the call for any questions that you may have for us. Operator, please go ahead.
Speaker #2: 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.
Operator: Seeing no questions in the queue, let me turn the call back to Mr. Li for closing remarks.
Speaker #2: To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A queue. Once again, that's star one and one on your telephone to register a question.
Speaker #2: And wait for your name to be announced. To withdraw your question, please press star one and one again. Seeing no questions in the queue, let me turn the call back to Mr. Lee for closing remarks.
Speaker #3: Thank you, Operator, and thank you all for participating on today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.
Kristal 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.
Speaker #3: Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
