Niu Technologies (NASDAQ: NIU) reported first-quarter revenue of RMB 909.5 million, a 33.4 percent year-over-year increase, though its net loss more than doubled, reflecting persistent international weakness and rising costs.
"Internationally, we continued to refine our market strategy. By prioritizing our electric motorcycle position and optimizing our micro-mobility footprint, we are driving the operational improvements that reinforce our foundation for sustainable, long-term growth,” Dr. Yan Li, Chief Executive Officer, said in a statement.
The beat on revenue was overshadowed by a wider-than-expected loss and regional sales divergence.
Total e-scooter sales volume grew 28.7 percent to 261,624 units. However, the growth was entirely dependent on its home market of China, as international sales continued to slide. Operating expenses surged 59.7 percent to RMB 263.6 million, which the company attributed to intensified marketing initiatives, higher staff costs, and foreign exchange losses.
The mixed results highlight Niu's ongoing challenge to balance strong domestic growth against international struggles and rising costs. For its second quarter, Niu expects revenues between RMB 1,570 million and RMB 1,821 million, which would represent year-over-year growth of 25 to 45 percent.
Niu's gross margin remained stable at 17.4 percent, a slight increase from 17.3 percent in the first quarter of 2025. The company said this was due to a favorable product mix and cost-control efforts in China, which were partially offset by lower gross margins on kick-scooters in international markets.
The company's strategy in China has focused on younger consumers, using brand ambassadors to deepen engagement and launching new AI-integrated flagship models. "Powered by the NIU AIOS intelligent operating system, these models highlight our industry-leading position in AI technology, delivering a seamless, smart riding ecosystem," CEO Dr. Yan Li said.
In contrast, revenues from international markets decreased by 15.2 percent to RMB 50.9 million. The company cited lower sales volume of kick-scooters as the main reason for the decline.
The significant increase in operating expenses as a percentage of revenue, rising to 29.0 percent from 24.2 percent a year ago, is a key concern for investors. Selling and marketing expenses alone jumped 56.8 percent, driven by a RMB 45.9 million increase in advertising and promotion.
The guidance for strong second-quarter growth suggests management is confident in its strategy, particularly within the Chinese market. Investors will be closely watching the company's next earnings report to see if it can reverse the negative trend in international sales and gain control over its operating expenses.
This article is for informational purposes only and does not constitute investment advice.
