小牛電動 (NIU) 2019 Q2 法說會逐字稿

Good day, ladies and gentlemen, thank you for standing by, and welcome to the Niu Technologies Second Quarter 2019 Earnings Conference Call.

女士們，先生們，美好的一天，感謝你們的支持，歡迎來到小牛科技 2019 年第二季度收益電話會議。

(Operator Instructions) As a reminder, we are recording today's call.

（操作員說明）作為提醒，我們正在錄製今天的通話。

(Operator Instructions)

（操作員說明）

Now I will turn the call over to Mr. Jason Yang, Investor Relations Manager of Niu Technologies.

現在，我將把電話轉給小牛科技投資者關係經理 Jason Yang 先生。

Mr. Yang, please go ahead.

楊先生，請繼續。

Thank you, operator.

謝謝你，接線員。

Hello, everyone.

大家好。

Thank you for joining us on today's conference call to discuss the company's financial results for the second quarter 2019.

感謝您參加今天的電話會議，討論公司 2019 年第二季度的財務業績。

We released the results earlier today.

我們今天早些時候發布了結果。

The press release is available on company's IR website as well as from Newswire services.

該新聞稿可在公司的 IR 網站以及 Newswire 服務上獲得。

Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.

請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。

Forward-looking statements involve certain risks, uncertainties, assumptions and other factors.

前瞻性陳述涉及某些風險、不確定性、假設和其他因素。

The company's actual results may be materially different from those expressed today.

該公司的實際結果可能與今天所表達的結果大不相同。

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

有關風險因素的更多信息包含在公司向證券交易委員會提交的公開文件中。

The company does not assume any obligation to update any forward-looking statement, except as required by law.

除法律要求外，公司不承擔更新任何前瞻性陳述的任何義務。

Our earnings press release today and this call include discussions of certain non-GAAP financial measures.

我們今天的收益新聞稿和這次電話會議包括對某些非公認會計原則財務措施的討論。

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

新聞稿包含非公認會計原則財務指標的定義以及公認會計原則與非公認會計原則財務結果的對賬。

Please note that, unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi.

請注意，除非另有說明，電話會議中提及的所有數字均為人民幣。

On the call with me today are Dr. Yan Li, Chief Executive Officer; and Mr. Hardy Zhang, Chief Financial Officer.

今天與我通話的是首席執行官李彥博士；張先生，首席財務官。

Now let me turn the call over to our CEO, Dr. Yan Li.

現在讓我把電話轉給我們的首席執行官李彥博士。

Yan?

顏？

All right.

好的。

Thanks, Jason, and thanks everyone for joining us on the call today.

謝謝，傑森，感謝大家今天加入我們的電話會議。

We have been navigating a dynamic market in the second quarter that has been challenged by regulatory changes.

在第二季度，我們一直在一個充滿活力的市場中航行，該市場受到監管變化的挑戰。

Despite the fact that overall China market for electric scooters slowed in Q2, we managed to deliver healthy growth.

儘管第二季度中國電動滑板車市場整體放緩，但我們仍實現了健康增長。

Our scooter sales volume grew by 14% and revenue grew by 38%.

我們的滑板車銷量增長了 14%，收入增長了 38%。

We also improved gross margin to 23.7% and net profit margin to 9.6%.

我們還將毛利率提高至 23.7%，將淨利潤率提高至 9.6%。

Both are significantly higher than Q2 last year and further improved from Q1 this year.

兩者均顯著高於去年第二季度，並比今年第一季度進一步改善。

We are pleased to continue to operate profitably in this quarter.

我們很高興在本季度繼續盈利。

Niu is at the forefront of the revolution in urban mobility, and our results this quarter demonstrated our leadership position.

小牛處於城市交通革命的最前沿，我們本季度的業績證明了我們的領先地位。

We made advances in technology leadership and leveraged our brand awareness into a new adjacent categories.

我們在技術領先方面取得了進步，並將我們的品牌知名度引入了新的相鄰類別。

Our brand and product strength really showed in our financial results.

我們的品牌和產品實力真正體現在我們的財務業績中。

First, as we discussed in last earning call, we launched our 2 new product lines compliant with the new China regulations effective April of this year, namely the U+ and the US.

首先，正如我們在上次財報電話會議中所討論的，我們推出了符合今年 4 月生效的中國新法規的兩條新產品線，即 U+ 和美國。

Both products were delivered to the market in late April and both have received very positive feedback from our customers.

兩款產品均於四月下旬投放市場，均獲得客戶非常積極的反饋。

The U+ and the US volume represented more than 1/3 of our sales volume in Q2 and widely consider a top list products in the market against our competitors.

U+ 和美國的銷量占我們第二季度銷量的 1/3 以上，被廣泛認為是市場上與我們的競爭對手競爭的頂級產品。

The US retail price start at RMB 3,499 or approximately $500 and is considered an affordable entry-level product for new customers to experience Niu for the first time.

美國零售價 3,499 元起，約合 500 美元，被認為是新客戶第一次體驗小牛的平價入門級產品。

The U+ retail price ranges from RMB 4,399 to RMB 5,999 and is positioned as a top-end electric bicycle model great for daily commuters and for long-distance urban riding.

U+零售價從4,399元到5,999元不等，定位為適合日常通勤和長途城市騎行的高端電動自行車車型。

Both the U+ and US models are powered by our Niu energy technology, which has helped increase the average driving range by 8%, a 40% increase in battery life cycle and the 6% improvement of power generation.

U+和US車型均採用我們的小牛能源技術，平均續航里程增加8%，電池壽命增加40%，發電量提升6%。

Our growth in the second quarter has been supported by those 2 product models.

我們第二季度的增長得到了這兩種產品模型的支持。

We're in the process of launching a new product line, and there is a second brand name, [Gova].

我們正在推出新產品線，還有第二個品牌名稱，[Gova]。

By leveraging our design capability and the cost efficiencies, we'll position Gova as a value-for-money product targeting at the mid-end segment.

通過利用我們的設計能力和成本效率，我們將 Gova 定位為針對中端市場的物有所值的產品。

We intended to sell this product line in both China and international markets.

我們打算在中國和國際市場上銷售這條產品線。

Second, we continue to build a global new brand as a lifestyle urban mobility brand through innovative, yet cost-efficient marketing and branding activities.

其次，我們通過創新且具有成本效益的營銷和品牌活動，繼續將全球新品牌打造為生活方式城市出行品牌。

On June 1, we celebrated our fourth birthday in China, and we launched a social media campaign called "Don't Call Me Electric Scooter" to separate our brand image from traditional low-quality e-bike market.

6 月 1 日，我們慶祝了我們在中國的四歲生日，我們發起了一場名為“別叫我電動滑板車”的社交媒體活動，將我們的品牌形象與傳統的低質量電動自行車市場區分開來。

We have engaged many social media influencers across TikTok, we won visibility, receiving more than 20 million views.

我們在 TikTok 上吸引了許多社交媒體影響者，我們贏得了知名度，獲得了超過 2000 萬的瀏覽量。

The Chinese Valentine's Day, which is celebrated in July, we started a new love story event and collected more than 2,000 stories from our new users' couples, who fell in love because of Niu and was more than 70,000 page views.

七月七夕，我們發起了一場新的愛情故事活動，收集了2000多個新用戶情侶的故事，他們因為牛而相愛，頁面瀏覽量超過70,000。

We have made a documentary film based on those love stories and will post a movie viewing party among our highly engaged users.

我們根據這些愛情故事製作了一部紀錄片，並將在我們高度參與的用戶中舉辦一場觀影派對。

Starting from July, we launched a TVC ad campaign with one of the most popular Chinese Internet drama, called 24 hours in Chang'an.

從七月開始，我們推出了TVC廣告活動，其中一部最流行的中國網劇名為《長安24小時》。

This campaign was a combination of TV ads, social media marketing and user interaction activities on WeChat and off-line stores.

本次活動結合了電視廣告、社交媒體營銷以及微信和線下商店的用戶互動活動。

We have achieved 1.2 billion views on the Internet TV, 15 million views on Weibo and more than 50,000 users participation in the WeChat and off-line activities.

互聯網電視瀏覽量12億，微博瀏覽量1500萬，微信及線下活動用戶超過5萬。

Now we continue to increase our fan base on all social media from WeChat, Weibo and TikTok.

現在，我們繼續在微信、微博和 TikTok 的所有社交媒體上增加我們的粉絲群。

Our monthly views on those social medias have reached to over millions.

我們在這些社交媒體上的每月瀏覽量已超過數百萬。

We also started an off-line ad campaign, called "Always Niu Forward," with the bus ads, subway ads and billboards, covering 12 cities, and it was more than a billion views.

我們還發起了一場名為“永遠牛前進”的線下廣告活動，包括公交廣告、地鐵廣告和廣告牌，覆蓋12個城市，點擊量超過10億。

Additionally, several Chinese and international celebrities were spotted riding a new scooter by the paparazzi, which show the popularity of our products.

此外，還有幾位中外名人被狗仔隊拍到騎著新的滑板車，可見我們產品的受歡迎程度。

Those news instantly spread across social and traditional media channels.

這些消息立即通過社交和傳統媒體渠道傳播開來。

Those viral activities allowed us to capture more than 1 billion views online of our product, which is just another testimonial to our growth as a lifestyle brand.

這些病毒式活動讓我們在網上獲得了超過 10 億次我們產品的瀏覽量，這只是我們作為生活方式品牌成長的又一證明。

Now globally, we have also signed 22 social media influencers across 6 countries, creating new content under the theme, Unlock Your City" and has generated more than 500,000 views.

現在，在全球範圍內，我們還簽約了 6 個國家的 22 位社交媒體影響者，以“解鎖你的城市”為主題創作了新內容，並產生了超過 500,000 次觀看。

To further build our customer loyalty, we rolled out our Niu points program in July.

為了進一步建立我們的客戶忠誠度，我們在 7 月推出了我們的 Niu 積分計劃。

Users can receive Niu points via various activities and can redeem those points for new lifestyle accessories.

用戶可以通過各種活動獲得小牛積分，並可以將這些積分兌換成新的生活方式配飾。

Within 1 month of the rollout, we already have 39,000 users participating in the Niu point program.

在推出後的 1 個月內，我們已經有 39,000 名用戶參與了牛點計劃。

All of those event-based marketing activities have helped us to continue to improve our brand awareness as the leading lifestyle brands in urban mobility.

所有這些基於事件的營銷活動都幫助我們繼續提高我們作為城市交通領域領先生活方式品牌的品牌知名度。

Lastly, we continue to expand our footprint in China and globally.

最後，我們繼續擴大在中國和全球的足跡。

In Q2, we opened another 124 stores in China, reaching 1,005 stores in total, which covers 182 cities in China.

第二季度，我們在中國又開設了 124 家門店，總數達到 1,005 家，覆蓋中國 182 個城市。

Internationally, we further expanded our international footprint and entered 6 new countries.

在國際上，我們進一步擴大了國際版圖，並進入了 6 個新的國家。

Now we sell in 34 countries through 26 international distributors.

現在我們通過 26 個國際分銷商在 34 個國家/地區銷售。

In June, we opened flagship stores at Seoul in South Korea and Ho Chi Minh City in Vietnam.

六月，我們在韓國首爾和越南胡志明市開設了旗艦店。

Now our solution for sharing operation has also been growing very quickly.

現在我們的共享運營解決方案也在快速增長。

So far, we have supported a total 13 operators globally in 11 countries.

到目前為止，我們已在全球 11 個國家/地區為 13 家運營商提供支持。

We provide not only the scooters for their sharing fleets, but also the Out of the Box IoT connectivities and back-end fleet software to allow them to quickly launch their sharing operation.

我們不僅為他們的共享車隊提供滑板車，還為他們提供開箱即用的物聯網連接和後端車隊軟件，讓他們能夠快速啟動他們的共享操作。

This is a key differentiator for Niu in the sharing space as we are able to provide a full stack of solution, where our competition is just providing a dumb scooter.

這是小牛在共享領域的一個關鍵差異化因素，因為我們能夠提供一整套解決方案，而我們的競爭對手只是提供一輛笨拙的滑板車。

The sharing operations we support in the U.S., as mentioned last time, has been very successful and have received positive reviews from New York Times, Vogue, Wall Street Journal, The Verge and Washington Post.

正如上次提到的，我們在美國支持的共享業務非常成功，並獲得了紐約時報、Vogue、華爾街日報、The Verge 和華盛頓郵報的積極評價。

The continued success of sharing operation in United States and around the world played a key role in building our global brand awareness, while simultaneously educating a whole new customer base for Niu.

共享業務在美國和世界各地的持續成功在建立我們的全球品牌知名度方面發揮了關鍵作用，同時為小牛培養了一個全新的客戶群。

All you have to do now is to head over to Brooklyn and see how popular the Niu scooter in Revel sharing program in the U.S. is and how we are building culture for scooters in the America.

您現在所要做的就是前往布魯克林，看看 Niu 滑板車在 Revel 分享計劃中的受歡迎程度，以及我們如何在美國為滑板車打造文化。

So lastly, let me touch upon the China market dynamics 4 months after the implementation of new regulation.

最後，讓我談談新規實施 4 個月後的中國市場動態。

As mentioned earlier, the overall regional market has been uncharacteristically soft since the implementation of new regulation.

如前所述，新規實施以來，區域市場整體異常疲軟。

In some markets, we have observed a market contraction by up to 80% since April, when the regulation was put in place.

在一些市場，我們觀察到自 4 月份實施監管以來，市場收縮幅度高達 80%。

This was partly due to the rushed purchase before the regulation came into effect and part of it because the consumers still need time to adjust to these changes, especially adapting to mandatory smaller form factor scooters and longer process of getting license plates.

這部分是由於在法規生效前匆忙購買，部分原因是消費者仍然需要時間來適應這些變化，特別是適應強制性的更小尺寸踏板車和更長的獲得牌照的過程。

Additionally, we see a portion of customers are choosing to postpone their purchase as a way to see how the regulatory environment shaped out.

此外，我們看到一部分客戶選擇推遲購買，以此來了解監管環境是如何形成的。

We have seen signs of recovery in July and August, but the total market sales volume is still below last year at the same time.

7、8月份我們看到了復甦的跡象，但同期市場總銷量仍低於去年。

Due to the slow sales of the entire market, many of our competitors have had to close their retail shops, and we see this as an exciting time to grow our sales channel.

由於整個市場的銷售緩慢，我們的許多競爭對手不得不關閉他們的零售店，我們認為這是擴大銷售渠道的激動人心的時刻。

Despite a sluggish market condition, we have been taking advantage of our competition's reduction in retail outlets and their lack of product to meet the new regulation by rapidly expanding our retail footprint as more retail spaces become available.

儘管市場狀況低迷，但隨著更多零售空間的出現，我們一直在利用競爭對手減少零售店和缺乏產品的機會，通過迅速擴大我們的零售足跡來滿足新法規的要求。

This strategy now will position Niu for future growth in 2020.

現在，這一戰略將使小牛在 2020 年實現未來增長。

Now I will turn the call over to Hardy to discuss our financial results.

現在我將把電話轉給哈代討論我們的財務業績。

Hardy?

哈代？

Thank you, Yan, and hello, everyone.

謝謝Yan，大家好。

Our press release contains all the figures and comparisons you need.

我們的新聞稿包含您需要的所有數據和比較。

We have also uploaded figures in Excel format to our IR website for your easy reference.

我們還將 Excel 格式的數據上傳到我們的 IR 網站，供您參考。

As I review our financial performance, keep in mind that we are referring to the second quarter figures, unless I say otherwise.

當我回顧我們的財務業績時，請記住，我們指的是第二季度的數據，除非我另有說明。

And that all monetary figures are RMB, unless otherwise noted.

除非另有說明，所有貨幣數字均為人民幣。

As Yan mentioned, the second quarter is a challenging quarter due to the difficult macroeconomic environment and the implementation of the New National Standard in China.

正如閆所說，由於宏觀經濟環境艱難以及新國標在中國的實施，第二季度是一個充滿挑戰的季度。

We managed to deliver a high-quality growth, thanks to the strong sales in international markets and the solid sales in accessory and spare parts.

得益於國際市場的強勁銷售以及配件和備件的穩健銷售，我們實現了高質量的增長。

Our profitability further improved as a result of favorable changes in revenue mix and our continued efforts to optimize cost.

由於收入組合的有利變化以及我們繼續努力優化成本，我們的盈利能力進一步提高。

Total revenues rose 38% to CNY 531 million, below the guidance we provided earlier due to lower-than-expected sales in China.

由於中國銷售低於預期，總收入增長 38% 至 5.31 億元人民幣，低於我們之前提供的指引。

Despite a challenging market, our scooter sales volume still grew 14% compared with the second quarter last year.

儘管市場充滿挑戰，但與去年第二季度相比，我們的踏板車銷量仍增長了 14%。

China sales was affected by the implementation of the New National Standards.

中國銷售受到新國標實施的影響。

The subjective interpretation had poor implementation in different cities caused the lengthy product certification and registration process, which affected the entire China e-scooter market, including us.

主觀解釋在不同城市執行不力，導致產品認證和註冊過程冗長，影響了包括我們在內的整個中國電動滑板車市場。

The new regulation also set the top speed limit at 25 kilometer per hour.

新規定還將最高限速設置為每小時 25 公里。

Customers are not used to this and will take time to adapt to the new speed limits.

客戶對此並不習慣，需要時間來適應新的速度限制。

The impact from the implementation of the new regulation will continue to affect our China sales in the third quarter and possibly for the rest of the year.

新法規實施的影響將繼續影響我們第三季度的中國銷售，並可能影響今年剩餘時間。

But we have seen a positive trend in the recent months that the market began to recover from Q2 and retail sales gradually picked up.

但近幾個月我們看到了一個積極的趨勢，即市場從第二季度開始復蘇，零售額逐漸回升。

The slower sales in China was partially offset by strong sales from international market, especially the newly entered market such as in the U.S. and South Korea.

中國銷售放緩部分被國際市場的強勁銷售所抵消，尤其是美國和韓國等新進入的市場。

We shipped out 1,500 units to the U.S. market and the 2,000 units to the South Korean market during the second quarter.

我們在第二季度向美國市場出貨了 1,500 台，向韓國市場出貨了 2,000 台。

We have expanded our international sales network to cover 34 countries compared with 23 countries in the same period last year.

我們的國際銷售網絡已從去年同期的 23 個國家擴大到 34 個國家。

We made further entry into Southeast Asia market.

進一步進入東南亞市場。

We opened a dedicated store in Vietnam, and we are in the process of setting up our own company in Indonesia so as to further expand our business in the promising Southeast Asia market.

我們在越南開設了一家專賣店，我們正在印度尼西亞設立自己的公司，以進一步擴大我們在前景廣闊的東南亞市場的業務。

We are very pleased to see that our products are welcomed in this newly entered market.

我們很高興看到我們的產品在這個新進入的市場受到歡迎。

Our international sales has both 2B and 2C (sic) [B2B and B2C] business, both have enjoyed very healthy growth in the quarter.

我們的國際銷售同時擁有 2B 和 2C (sic) [B2B 和 B2C] 業務，在本季度都實現了非常健康的增長。

The 2B business, i.e., the scooters and accessories sold to sharing operators or fleet management companies is becoming sizable and contributed significantly to our revenue growth in the second quarter.

2B 業務，即出售給共享運營商或車隊管理公司的踏板車和配件正在變得相當大，並為我們第二季度的收入增長做出了重大貢獻。

Revenue per scooter was RMB 5,339, up 21% year-over-year.

每輛滑板車收入為人民幣 5,339 元，同比增長 21%。

That growth was driven by both higher proportion of international sales and a strong sales of accessories, spare parts and services.

這一增長是由較高的國際銷售比例以及配件、備件和服務的強勁銷售推動的。

The average scooter sales price grew 11%, driven by 2 key factors: First and more important, the higher proportion of scooter sales from international market, where our sales price are much higher than the China sales price.

滑板車平均銷售價格增長 11%，主要受兩個關鍵因素的推動：首先，更重要的是，來自國際市場的滑板車銷售比例更高，我們的銷售價格遠高於中國銷售價格。

In the second quarter, our international scooter sales accounted for 27% of the total scooter revenue compared with 10.2% in the second quarter last year.

第二季度，我們的國際滑板車銷售額佔滑板車總收入的 27%，而去年第二季度為 10.2%。

Secondly, in April this year, we increased China retail sales price by 1% to 5% for selective models.

其次，今年 4 月，我們將部分車型的中國零售價提高了 1% 至 5%。

So the retail sales price increased and higher proportion of the international sales both helped our average scooter sales price increase in this quarter.

因此，零售價格上漲和國際銷售比例的提高都有助於我們本季度的滑板車平均銷售價格上漲。

The other positive development in the quarter is the stronger sales of accessories, spare parts and services.

本季度的另一個積極發展是配件、備件和服務的強勁銷售。

On average, for each scooter sold, we also sold RMB 796 of accessories, spare parts and services, increased significantly from the RMB 296 per scooter last year.

平均而言，每售出一輛踏板車，我們還銷售了 796 元的配件、備件和服務，比去年每輛踏板車的 296 元大幅增加。

The increase was mainly driven by accessories and spare part sales from international market, especially those to the sharing operator, who tends to purchase additional accessories and spare parts together with the scooter.

增長主要來自國際市場的配件和備件銷售，尤其是共享運營商的銷售，他們傾向於與踏板車一起購買額外的配件和備件。

Gross margin was 23.7%, 8.6 percentage points better than this time last year and 2.4 percentage points better sequentially.

毛利率為 23.7%，比去年同期提高 8.6 個百分點，環比提高 2.4 個百分點。

Over the longer term, we expect our gross margin to be in the range of 20% to 25%, so we are happy to be moving close to our long-term goal.

從長遠來看，我們預計我們的毛利率將在 20% 到 25% 之間，因此我們很高興接近我們的長期目標。

Margin expansion was helped by favorable revenue mix.

有利的收入組合有助於利潤率擴張。

Ancillary revenue from sales of accessories, spare parts and services was 14.9% of total revenue compared with 6.7% last year.

配件、備件和服務銷售的輔助收入佔總收入的 14.9%，而去年為 6.7%。

International scooter series was 27% of total scooter revenue compared with 10.2% last year.

國際滑板車系列佔滑板車總收入的 27%，而去年為 10.2%。

Both ancillary revenue and international scooter sales have a higher margin and hence, helped our margin expansion.

輔助收入和國際摩托車銷售都有較高的利潤率，因此有助於我們的利潤率擴張。

Also, of the total 8.6% margin improvement in the second quarter, we estimate roughly 4% came from the favorable revenue mix.

此外，在第二季度總共 8.6% 的利潤率提高中，我們估計大約 4% 來自有利的收入組合。

I want to caution you that we do not expect this favorable revenue mix will sustain for the coming quarters when the China e-scooter sales begin to recover from the slow season in the second quarter.

我想提醒您，當中國電動滑板車銷售從第二季度的淡季開始復蘇時，我們預計這種有利的收入組合不會持續到未來幾個季度。

The margin expansion is also helped by our continued efforts to optimize cost.

我們不斷努力優化成本也有助於利潤率的擴大。

The cost of revenue on a comparable basis further declined.

可比基礎上的收入成本進一步下降。

We secured cost saving on raw materials of 5% to 7% versus last year and 2% to 3% versus last quarter.

與去年相比，我們確保原材料成本節省 5% 至 7%，與上一季度相比節省 2% 至 3%。

We were able to negotiate lower procurement costs because of our larger scale and in-depth knowledge of the supply chain.

由於我們的規模更大並且對供應鏈有深入的了解，我們能夠通過談判降低採購成本。

We believe these cost reductions are sustainable and will continue to benefit our gross margin for the coming quarters.

我們相信這些成本降低是可持續的，並將繼續使我們在未來幾個季度的毛利率受益。

Operating expense on a comparable basis increased in line with the growth of our business.

可比基礎上的運營費用隨著我們業務的增長而增加。

Our total operating expense, excluding share-based compensation, was RMB 18 million, decreased by 14% year-over-year and was 15% of revenue below the 24% we saw last year.

我們的總運營費用（不包括股權激勵）為 1800 萬元人民幣，同比下降 14%，佔收入的 15%，低於去年的 24%。

G&A expenses, excluding share-based compensation, decreased by 47%, representing 3.3% of revenue versus 8.6% last year.

G&A 費用（不包括股權薪酬）下降了 47%，佔收入的 3.3%，而去年為 8.6%。

In April 2018, there was a fire incident, which caused a damage loss of RMB 22 million.

2018年4月發生火災，造成損失2200萬元。

After excluding this amount, our G&A expenses increased by 60%, mainly due to higher staff costs and related office and travel expenses.

剔除此金額後，我們的 G&A 費用增加了 60%，主要是由於更高的員工成本和相關的辦公和差旅費用。

R&D expense, excluding share-based compensation, grew by 79% as we continued to invest in new product development and design.

由於我們繼續投資於新產品開發和設計，研發費用（不包括股權薪酬）增長了 79%。

Sales and marketing expense, excluding share-based compensation, decreased by 9%, mainly because of the timing of marketing expenditure.

銷售和營銷費用（不包括股權激勵）下降了 9%，主要是因為營銷支出的時間安排。

In 2018, we had higher marketing expenditure in the second quarter because of our product launch event at Paris in June 2018.

2018 年，由於我們於 2018 年 6 月在巴黎舉行的產品發布會，我們在第二季度的營銷支出有所增加。

This year, considering the impact from the New National Standards in the second quarter, we limited our marketing spending and deferred sales and marketing activities to the third quarter.

今年，考慮到第二季度新國標的影響，我們限制了營銷支出，並將銷售和營銷活動推遲到第三季度。

Our GAAP net income was CNY 51 million with net margin of 9.6%.

我們的 GAAP 淨利潤為 5100 萬元人民幣，淨利潤率為 9.6%。

We are pleased to operate profitably even as we invest heavily in growth, which demonstrates the strength of our business model.

即使我們大量投資於增長，我們也很高興能夠盈利，這證明了我們商業模式的實力。

Turning to our balance sheet.

轉向我們的資產負債表。

We ended the quarter with CNY 667 million in cash and equivalents.

我們在本季度末擁有 6.67 億元人民幣的現金和等價物。

Operating cash flow was positive CNY 23 million.

經營現金流為正2300萬元。

Capital expenditure was CNY 64 million, mainly for building the new manufacturing facility in Changzhou and for expanding our retail sales network.

資本支出為人民幣 6,400 萬元，主要用於在常州建設新的製造工廠和擴大我們的零售網絡。

Now let's turn to guidance.

現在讓我們轉向指導。

We expect third quarter revenue to be in the range of CNY 600 million to CNY 700 million.

我們預計第三季度收入將在人民幣 6 億元至人民幣 7 億元之間。

This represents year-over-year growth of 22% to 42%.

這意味著同比增長 22% 至 42%。

We expect to continue to operate profitably in the third quarter.

我們預計第三季度將繼續盈利。

Please keep in mind that this forecast reflects our current expectations and could change.

請記住，該預測反映了我們當前的預期，並且可能會發生變化。

With that, let's now open the call for any questions that you may have for us.

有了這個，現在讓我們打開電話，詢問您可能對我們提出的任何問題。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) We have the first question from the line of Vincent Yu.

（操作員說明）我們有來自 Vincent Yu 的第一個問題。

This is Roger in for Vincent.

這是文森特的羅傑。

And congrats on a great quarter.

並祝賀一個偉大的季度。

So my first question is can the management help us to break down the unit sales in terms of China versus international?

所以我的第一個問題是管理層能否幫助我們分解中國與國際的單位銷售額？

And how should we think about the gross margin trend going forward for the second half of the year?

我們應該如何看待下半年的毛利率趨勢？

Sorry, the quality of the line is not very good, so we didn't hear your earlier question.

抱歉，線路質量不是很好，所以我們沒有聽到您之前的問題。

Do you mind to repeat your question and speak slowly?

你介意重複你的問題並慢慢說嗎？

Yes.

是的。

Sure.

當然。

Can you hear me all right now?

你現在能聽到我的聲音嗎？

Excuse me, operator?

對不起，接線員？

(technical difficulty)

（技術難度）

Ladies and gentlemen, the speaker is facing technical difficulties.

女士們，先生們，演講者正面臨技術難題。

We will be dialing them back and connect them to the conference.

我們將撥回他們並將他們連接到會議。

Your line will be on music hold until then.

在那之前，您的線路將處於音樂保留狀態。

Ladies and gentlemen, we have Mr. Yan joining back the conference.

女士們，先生們，我們請閆先生加入會議。

Thank you.

謝謝你。

(Operator Instructions) We have a question from the line of Bin Wang.

（操作員說明）我們有一個來自 Bin Wang 的問題。

My first question came from the M-Series.

我的第一個問題來自 M 系列。

I understand maybe in a short period of time, not only one product called U can be sale in the dealerships.

據我了解，也許在很短的時間內，在經銷商處不僅可以銷售一種名為 U 的產品。

So can -- what's the revised version of M can be eligible to sale as a scooter, which must can you specify the timing?

那麼可以 - 什麼是M的修訂版可以作為踏板車銷售，你可以指定時間嗎？

That's number one.

那是第一名。

Number two is about the new brand [Gova].

第二個是關於新品牌 [Gova]。

Can you elaborate what will be the pricing range and the potential margin because it was in the higher market?

您能否詳細說明定價範圍和潛在利潤是多少，因為它處於較高的市場中？

So how do you think about the lower market's profitability?

那麼您如何看待較低市場的盈利能力？

Do you see this will be a long-term issue for margin?

您認為這將是保證金的長期問題嗎？

The second one.

第二個。

And the third one, actually I want to understand.

第三個，其實我想明白。

If you think about the [raw] material has been declined by 5% to 7% year-over-year in the second quarter.

如果您考慮一下第二季度的 [原材料] 同比下降 5% 至 7%。

Do you also know which is the key component?

您還知道哪個是關鍵組件嗎？

Is it the battery or other issues?

是電池問題還是其他問題？

Bin, this is Yan Li.

斌，我是嚴麗。

So let me address the first few questions.

那麼讓我來解決前幾個問題。

I'll have Hardy answer on the build material question.

對於構建材料的問題，我會有 Hardy 的回答。

So yes, I mean, for the first half of this year, until now, the product we have actually meeting the new regulations are basically the U+, the U, the US, essentially the product family of the U family.

所以是的，我的意思是，今年上半年，直到現在，我們真正符合新規定的產品基本上是U+，U，美國，本質上是U家族的產品系列。

We are -- actually, we are working hard to actually get one of the M family to meeting the new regulatory requirement.

我們 - 實際上，我們正在努力讓 M 家族中的一個滿足新的監管要求。

There has -- to be honestly, there has been a delay on that product because there has been, what you call, the interpretation of the new regulation, which is announced on March 25, which has -- which actually tightens the new regulation a bit more in terms of the extra spacing and the battery compartments in terms of the, what we call, the backseat rest, the requirement of the backseat rest.

有 - 老實說，該產品有延遲，因為有，你所說的，對新法規的解釋，該法規於 3 月 25 日宣布，它 - 實際上收緊了新法規就我們所說的後座靠背和後座靠背的要求而言，在額外的間距和電池艙方面多一點。

So that actually caused us to literally scratch our internal design of the new M and then restart over.

所以這實際上導致我們從字面上劃掉了新 M 的內部設計，然後重新開始。

Now we are looking at the new M probably will come out in the first half of next year.

現在我們在看新的M大概會在明年上半年問世。

So that was with the M product.

M 產品就是這樣。

Now secondly, while having said that, the -- we also have the M+ and also N passing the light motorcycle certifications.

其次，儘管如此，我們也有 M+ 和 N 通過輕型摩托車認證。

And those -- by having M+ and N passing the light motorcycle certifications, we were able to sell N and M+ as light motorcycles in areas where they don't have the restriction on light motorcycles.

而那些——通過讓 M+ 和 N 通過輕型摩托車認證，我們能夠在沒有輕型摩托車限制的地區將 N 和 M+ 作為輕型摩托車銷售。

And that has been generating quite a bit in terms of our sales boost.

就我們的銷售增長而言，這已經產生了相當大的影響。

So the second question on [Gova].

所以關於[Gova]的第二個問題。

So the Gova -- right now, the -- we have -- in terms of Gova , we have essentially 3 product lines on Gova , which is G1, G3 and G5.

所以 Gova - 現在，我們 - 就 Gova 而言，我們在 Gova 上基本上有 3 條產品線，即 G1、G3 和 G5。

G3 and G5 are not ready for production probably until later this year -- Q4 this year.

G3 和 G5 可能要到今年晚些時候——今年第四季度才能投入生產。

And the G1, we're planning to roll that out in early September.

而 G1，我們計劃在 9 月初推出。

And the price range on G1 is anywhere between RMB 2,999, basically just a little bit below RMB 3,000, to RMB 3,999.

G1 的價格區間在 2999 元到 3999 元之間，基本上略低於 3000 元。

So basically anywhere -- basically in the price range of RMB 3,000 to RMB 4,000.

所以基本上在任何地方——基本上在人民幣 3,000 元到 4,000 元的價格範圍內。

The reason we launched this as a second brand and actually launched this product here is, first of all, G1 is new regulation compliant.

我們之所以把它作為第二個品牌推出，並在這裡實際推出這款產品，首先是因為 G1 符合新法規。

Second, we look at our product offerings, the chips in our product is actually U.S., which actually add RMB 3,500.

其次，我們看我們的產品，我們產品中的芯片實際上是美國的，實際上增加了人民幣3500元。

So we're a little bit short in terms of the product in below RMB 3,000 and in a range between RMB 3,000 and RMB 3,500.

所以我們在3000元以下和3000元到3500元之間的產品方面有點短缺。

Those are basically, what you call, a -- the price stack area that we did not cover using Niu products.

這些基本上是你所說的——我們沒有使用 Niu 產品涵蓋的價格堆棧區域。

But in order to get us the Gova to get to that price range, while maintaining a healthy margin, we had to deliberately separate some of the functionalities between Gova and Niu.

但是為了讓我們的 Gova 能夠達到這個價格範圍，同時保持健康的利潤率，我們不得不故意將 Gova 和 Niu 之間的一些功能分開。

For example, Niu is viewed as smart electric scooter, it is connected, where the Gova , we do have to stream down -- strip down the connectivity part.

例如，Niu 被視為智能電動滑板車，它是連接的，Gova 的地方，我們必須向下流——剝離連接部分。

So this is what I position saying Gova is the product, which can be used to serve the main segment.

所以這就是我所說的 Gova 是產品，它可以用來服務於主要細分市場。

But having said that, we do offer accessory, what you call, a sky eye option, which allow users to add a little box on Gova to enable that connectivity.

但話雖如此，我們確實提供了配件，你稱之為天眼選項，它允許用戶在 Gova 上添加一個小盒子來啟用這種連接。

So that's the option that users can buy as accessory.

所以這是用戶可以作為附件購買的選項。

So I think those answered the question on Gova , and then I'll hand over to Hardy to talk about the bottom part.

所以我認為那些回答了關於 Gova 的問題，然後我將交給 Hardy 來談談底部部分。

Yes.

是的。

For the reduction of costs related to the procurement of raw materials, we achieved 5% to 7% cost down compared with the Q4 last year.

在降低原材料採購成本方面，與去年第四季度相比，我們實現了 5% 至 7% 的成本下降。

This cost down is across different parts of the scooter.

這種成本下降涉及踏板車的不同部分。

In average, the body parts, including frame, lights, tires, et cetera, we reduced the cost by around 4%.

平均而言，包括車架、車燈、輪胎等在內的車身部件，我們將成本降低了約 4%。

And so the battery pack, including the battery cell, the pack and BMS, in total, we reduced the cost by around 9%.

所以電池組，包括電芯、電池組和BMS，總共降低了9%左右的成本。

So in average, it gave us 5% to 7% cost reduction.

因此，平均而言，它使我們的成本降低了 5% 到 7%。

I hope this answered your question.

我希望這回答了你的問題。

We have the next question from the line of Vincent Yu.

我們有來自 Vincent Yu 的下一個問題。

This is Roger again.

這又是羅傑。

Sorry about that.

對於那個很抱歉。

My line was disconnected.

我的線路斷線了。

So my question was can the management team help us to breakdown unit sales in terms of China versus international?

所以我的問題是，管理團隊能否幫助我們區分中國和國際的單位銷售額？

And how should we think about the gross margin going forward for the second half of the year?

我們應該如何看待下半年的毛利率？

I think in the revenue, we do have a split between China sales and international sales.

我認為在收入方面，我們確實在中國銷售和國際銷售之間存在差異。

The international sales account for 27% of the revenue.

國際銷售佔收入的27%。

China sales account for 73% of the revenue.

中國銷售佔收入的73%。

So by market-wise, total revenue at this percentage gives you total China sales.

因此，從市場角度來看，這個百分比的總收入為您提供了中國的總銷售額。

If you compare the second quarter China sales revenue with same period last year, that has growth of around 2%.

如果將第二季度中國銷售收入與去年同期相比，增長幅度在 2% 左右。

We still have some growth in China, but at a slower rate.

我們在中國仍有一些增長，但速度較慢。

For the gross margin, Q3 -- Q -- sorry, Q2, we achieved 23.7%.

對於毛利率，Q3 - Q - 抱歉，Q2，我們達到了 23.7%。

Q1, we have 21.3%.

第一季度，我們有 21.3%。

In -- out of the, -- as I mentioned, out of the 8.6%, the margin improvement around 4% coming from this revenue mix.

正如我所提到的，在 8.6% 中，利潤率提高了 4% 左右，這來自於這種收入組合。

The revenue mix, we do not expect it will sustain for the next quarter.

收入組合，我們預計下個季度不會持續。

However, for the cost reduction, we believe it will continue to benefit us in the next quarter.

但是，對於降低成本，我們相信它將在下一季度繼續使我們受益。

We estimate the gross margin for next quarter will be slightly in the range between 18% to 20%.

我們估計下個季度的毛利率將在 18% 到 20% 之間。

Okay.

好的。

That's great.

那太棒了。

Okay.

好的。

Yes.

是的。

My second question is do we have any visibility on how much e-scooter purchase will be made by the sharing platforms in the second half of the year?

我的第二個問題是，我們是否知道今年下半年共享平台將購買多少電動滑板車？

We have some visibility.

我們有一些知名度。

First of all, the sharing operator, they are not the main contribution of our international sales, but majority of our international sales do sell to the end consumers.

首先，共享運營商，他們不是我們國際銷售的主要貢獻者，但我們的大部分國際銷售確實是賣給最終消費者的。

In -- the sales to sharing operators normally account between 10% to 30% of the sales across different markets depending on the sales order.

在——根據銷售訂單，共享運營商的銷售額通常佔不同市場銷售額的 10% 到 30% 之間。

For the second half, we believe it will be in a similar percentage.

對於下半年，我們相信它將處於相似的百分比。

Okay.

好的。

Great.

偉大的。

Okay.

好的。

My last question is can you maybe talk a little bit about some of the feedbacks you guys heard from distributors or customers?

我的最後一個問題是你能談談你們從經銷商或客戶那裡聽到的一些反饋嗎？

How they think about the new regulation?

他們如何看待新規定？

And also, when will we see the demand become more normalized from your standpoint?

而且，從您的角度來看，我們什麼時候會看到需求變得更加正常化？

Yes.

是的。

I think that's a good question.

我認為這是一個很好的問題。

This is Yan Li.

這是顏麗。

So as we -- we've been on the field talking to the distributors and the retailers as well as customers.

因此，正如我們 - 我們一直在現場與分銷商、零售商以及客戶交談。

I think they still need a bit time for the consumers to get adapt to the new regulations because the new regulation -- a few things on -- key things on new regulation.

我認為他們仍然需要一些時間讓消費者適應新規定，因為新規定——一些事情——新規定的關鍵。

One is actually on the size of the scooter, second on the weight of the scooter as well as it's actually, there's this, what you call, a more stringent check on the speed.

一個實際上是踏板車的大小，第二個是踏板車的重量，實際上，還有這個，你所說的，對速度的更嚴格的檢查。

So all this actually is very different with -- before with the previous case before the regulations were in place.

因此，所有這一切實際上與 - 之前與法規實施之前的前一個案例非常不同。

So what do we have out there that is what as I mentioned on the call some people actually did a rash purchase in Q1 before the regulation in place.

那麼，正如我在電話會議中提到的那樣，在監管到位之前，有些人實際上在第一季度進行了一次輕率的購買。

And then some consumers decided to postpone because a major part of this market is a replacement market, where every year people replace their old scooters and purchase new scooters.

然後一些消費者決定推遲，因為這個市場的主要部分是替換市場，每年人們都會更換舊滑板車併購買新滑板車。

And we do see actually -- observe that some people decide to postpone that replacement by keeping their old scooter for another 6 months or for another year before switching to the new regulation scooters.

我們確實看到了——觀察到有些人決定推遲更換，將他們的舊滑板車再保留 6 個月或一年，然後再改用新的監管滑板車。

So -- but having said that, the market has been slowly -- has a slowly recovery, where in the cities where the new regulation started to being heavily enforced, I think the entire market at the month of April or May really -- some of the cities actually dropped -- their entire resale dropped by like 80%.

所以 - 但話雖如此，市場一直在緩慢 - 緩慢復甦，在新法規開始嚴格執行的城市，我認為整個市場在 4 月或 5 月確實 - 有些的城市實際上下降了——它們的整個轉售量下降了大約 80%。

But now seeing they're back to the last year level, but the -- month-by-month, the sales have been improving.

但是現在看到他們回到了去年的水平，但是 - 逐月，銷售一直在改善。

Yes, I think that's with some consumers.

是的，我認為這與一些消費者有關。

The last thing I want to add is actually a lot of retail shops, to be honest, in the last few months has been suffering because the volume has been dropped.

我要補充的最後一件事實際上是很多零售店，老實說，在過去的幾個月裡，由於銷量下降，它們一直在受苦。

And then the only -- actually, if you look around, the major portion of scooter being sold in those market are very cheap scooters, basic -- anywhere ranging from RMB 1,400 to RMB 2,000.

然後唯一的——實際上，如果你環顧四周，在這些市場上銷售的踏板車的主要部分是非常便宜的踏板車，基本款——從人民幣 1,400 元到人民幣 2,000 元不等。

And there's little margin to be made on those cheap scooters.

那些便宜的踏板車幾乎沒有利潤。

And so many retail shops from our competitor brands really has shut down the shops.

我們競爭對手品牌的許多零售店真的關門了。

So that -- actually, we did manage to take advantage of that and actually able to acquire some hot retail spaces, which we wouldn't be able to previous year.

所以——實際上，我們確實設法利用了這一點，並且實際上能夠獲得一些熱門的零售空間，這是我們去年無法做到的。

(Operator Instructions) We have the next question from the line of [Joyce Lin Wang].

（操作員說明）我們有下一個問題來自 [Joyce Lin Wang]。

You explained that the sales and marketing expense may be larger in the coming quarter.

您解釋說，下一季度的銷售和營銷費用可能會更大。

Could you give guidance about how large it could be?

你能指導一下它有多大嗎？

I think for the sales and marketing, just on a comparable basis, it will be slightly larger than the second quarter, but we don't believe it will be a significant increase in the market spending.

我認為對於銷售和營銷，僅在可比的基礎上，它會比第二季度略大，但我們認為這不會是市場支出的顯著增加。

There won't be any amount submitted.

不會有任何金額提交。

(Operator Instructions) Seeing no more questions in the queue, let me turn the call back to Mr. Li for closing remarks.

（操作員說明）看到隊列中沒有更多問題，讓我將電話轉回給李先生結束髮言。

Okay.

好的。

Thank you, operator, and thank you all for participating on today's call and for your support.

謝謝你，接線員，謝謝大家參加今天的電話會議和你們的支持。

So we appreciate your interest and look forward to reporting to you again next quarter on our progress.

因此，我們感謝您的關注，並期待在下個季度再次向您報告我們的進展。

Thank you.

謝謝你。

Thank you.

謝謝你。

Thank you, all, again.

謝謝大家，再次。

This concludes the call.

這結束了通話。

You may now disconnect.

您現在可以斷開連接。