小牛電動 (NIU) 2019 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Niu Technologies Fourth Quarter 2019 Earnings Release Conference Call.

女士們、先生們，感謝大家的支持，歡迎參加小牛科技 2019 年第四季財報電話會議。

(Operator Instructions) I must advise you that this conference is being recorded.

（操作員指示）我必須通知您，本次會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Mr. Jason Yang, Investor Relations Manager.

現在我想將會議交給今天的第一位發言人，投資者關係經理 Jason Yang 先生。

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

Hello, everyone.

大家好。

Welcome to today's conference call to discuss Niu Technologies results for the fourth quarter and full year 2019.

歡迎參加今天的電話會議，討論 Niu Technologies 2019 年第四季和全年業績。

The call is being webcast from company's IR website.

該電話會議正在透過公司的投資者關係網站進行網路直播。

An investor presentation and a replay of the call will be available soon at ir.niu.com.

投資者介紹和電話會議重播將很快在 ir.niu.com 上發布。

Please note, 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做出的前瞻性陳述。

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

前瞻性陳述涉及風險、不確定性、假設和其他因素。

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

公司的實際結果可能與今天所表達的結果有重大差異。

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資​​訊包含在該公司向美國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 statements, except as required by law.

除法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

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

我們的收益新聞稿和本次電話會議包括對某些非公認會計準則財務指標的討論。

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

該新聞稿包含非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務績效的調整表。

On the call with me today are our CEO, Dr. Yan Li; and the CFO, Mr. Hardy Zhang.

今天與我通話的是我們的執行長李岩博士；和財務長張哈迪先生。

Now let me turn the call over to Yan.

現在讓我把電話轉給 Yan。

All right.

好的。

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

謝謝傑森，謝謝大家今天加入我們的電話會議。

So on the performance, our sales volume has increased by 14% in Q4 2019 and by 24% for the full year of 2019.

所以從業績來看，我們2019年第四季的銷量成長了14%，2019年全年銷量成長了24%。

Our revenue has also increased by 25% in Q4 and by 41% full year 2019.

我們的營收在第四季成長了 25%，2019 年全年成長了 41%。

We have also enhanced our gross margins, achieving a historically high gross margin at 26.1%, and net profit margin at 11.3% in Q4 2019.

我們也提高了毛利率，2019 年第四季毛利率達到 26.1%，淨利率達到 11.3%，創下歷史新高。

All financial data were beyond our expectation.

各項財務數據均超出我們的預期。

Now we continue to build our leadership in urban mobility via product and technology development, event and user base activity

現在，我們繼續透過產品和技術開發、活動和用戶群活動來建立我們在城市交通領域的領導地位

(technical difficulty)

（技術難度）

We launched our U-GT in late December.

我們在 12 月底推出了 U-GT。

U-GT is an upgraded high-end version of U-Series targeting primarily Europe and the U.S. market.

U-GT是U系列的高階升級版本，主要針對歐洲和美國市場。

U-GT inherited a simplistic design style and lightweight body of our award-winning U-Series while increased wheel size and performance with the retail price started at [EUR 1,699] in Europe.

U-GT 繼承了我們屢獲殊榮的 U 系列的簡約設計風格和輕量化車身，同時增加了車輪尺寸和性能，歐洲零售價起價為 [1,699 歐元]。

Second, we have launched our first straddle electric motorcycle product R and our first 3-wheel electric motorcycle T at a CES in January.

其次，我們在一月份的 CES 上推出了第一款跨騎電動摩托車產品 R 和第一款三輪電動摩托車 T。

Both are revolutionary products to redefine urban mobility.

兩者都是重新定義城市交通的革命性產品。

R is our power performance product.

R 是我們的功率性能產品。

It has the top speed of 160 kilometer per hour and the maximum drive range of 130 kilometers.

最高時速160公里，最大續航力130公里。

It comes with a maximum 30 kilowatt mid-mounted motor and a 7 kilowatt hour portable 2 batteries.

它配備了最大30千瓦的中置馬達和7千瓦時的便攜式2節電池。

Our primarily target is Europe and the U.S. market as well as high-end motorcycle market in China.

我們的主要目標是歐美市場以及中國的高端摩托車市場。

As a high-end straddle motorcycle and this is our new brand in urban mobility.

作為高端跨騎摩托車，這是我們城市出行的新品牌。

Our video of R on Douyin has received more than 25 million views as one of the top viewed videos on our Douyin platform.

我們的 R 影片在抖音上的觀看次數已超過 2500 萬次，成為我們抖音平台上觀看次數最多的影片之一。

So this is just another testimonial on the popularity of this product.

所以這只是該產品受歡迎程度的另一個證明。

We expect R will be in the market in late 2020.

我們預計 R 將於 2020 年底上市。

While R focuses on performance, T focuses on comfort and smart commute in urban mobility.

R 專注於性能，而 T 則專注於城市交通中的舒適性和智慧通勤。

A self-balancing 3-wheeler with the roof covered, T is the urban all-weather commuter with the top speed of 80 kilometer per hour and a maximum drive range of 200 kilometers.

T是一輛有頂棚的自平衡三輪車，是城市全天候通勤車，最高時速80公里，最大續駛里程200公里。

It's spacious to take additional passenger and with extra cargo space.

其空間寬敞，可容納更多乘客，並具有額外的貨運空間。

In addition, T is a Level 2 autonomous driving capable including adaptive cruise control, self-parking and a collision detection system.

此外，T 還具備 2 級自動駕駛功能，包括自適應巡航控制、自動停車和碰撞偵測系統。

It is the perfect urban mobility vehicle for individuals and couple commuters, easy to use, robust to all-weather conditions and smart for safe driving.

它是適合個人和情侶通勤的完美城市出行車輛，易於使用，堅固耐用，適合全天候條件，並且智慧安全駕駛。

Now besides the new products, we continue to enhance our brand awareness through product launches, viral marketing and the targeted marketing.

現在，除了新產品外，我們還透過產品發布、病毒式行銷和定向行銷繼續提高我們的品牌知名度。

First, we attended for the first time CES in the United States in January.

首先，我們在一月第一次參加了美國的CES。

At CES, we successfully launched the 2 revolutionary products, R and T, as mentioned before, and continue to strengthen our brand of style, technology and freedom in urban mobility.

在 CES 上，我們成功推出了先前提到的兩款革命性產品 R 和 T，並繼續強化我們在城市出行中的風格、技術和自由的品牌。

We received more than 200 media coverage with more than 2,000 articles published.

我們收到了200多家媒體的報道，發表了2000多篇文章。

We also broadcasted the launch on social media platforms, achieved around 120 million views on Weibo and 34 million views on Douyin.

我們也在社群媒體平台上直播了發表會，微博瀏覽量約 1.2 億，抖音瀏覽量約 3,400 萬。

Second, we continue to create a viral marketing on social media platform.

其次，我們持續在社群媒體平台上打造病毒式行銷。

Our quarterly Douyin views increased from -- increased to 20 million in 2019 Q4 from just a few millions in the first 3 quarters in 2019.

我們的季度抖音瀏覽量從 2019 年前 3 季的數百萬次增加到 2019 年第四季的 2,000 萬次。

And due to the popularity of short-video platforms, we plan to invest more resources on Douyin, Kuaishou and Bilibili as well.

由於短視頻平台的受歡迎，我們也計劃在抖音、快手和嗶哩嗶哩上投入更多資源。

Internationally, our 30-plus KOLs across Europe have also created more than 1,000 pieces of new branded content, displayed them on Instagram and YouTube.

在國際上，我們在歐洲的 30 多名 KOL 還創建了 1,000 多個新的品牌內容，並在 Instagram 和 YouTube 上展示。

The highlights of those came from key strategic cities, such as Hamburg, Paris, Frankfurt and Milan.

其中的亮點來自漢堡、巴黎、法蘭克福和米蘭等重要戰略城市。

And lastly, a Chinese TV series called (foreign language) aired in February this year and has become one of the most popular shows in China recently.

最後，今年二月播出的一部叫做《外語》的中國電視劇，已經成為最近中國最受歡迎的節目之一。

Our scooters were used numerous times at the commuting vehicles in this TV series, selected by the cast due to our fashionable design.

我們的踏板車在這部電視劇中多次被用作通勤車輛，由於我們的時尚設計而被演員們選中。

This has achieved more than 2.6 billion views, and the show is still running.

該節目的觀看次數已超過 26 億次，目前該劇仍在持續播出。

Now supported by the new products, the enhanced customer engagement and brand awareness, we continue to expand our footprint.

現在，在新產品、增強的客戶參與度和品牌知名度的支持下，我們繼續擴大我們的足跡。

By end of Q4 2019, the number of franchise stores in China has reached to 1,050 as we added a total of 290 stores in the entire year of 2019.

截至2019年第四季末，中國加盟店數量已達1,050家，2019年全年新增門市290家。

We further expanded our international footprint to 38 countries with 26 flagship and premium stores overseas and 1,000-plus dealers.

我們進一步將國際業務拓展至 38 個國家，擁有 26 家海外旗艦店和高端店以及 1,000 多家經銷商。

Now despite the significant progress that we made in Q4 2019, our business operation has been disrupted by the outbreak of coronavirus in Q1 2020.

現在，儘管我們在 2019 年第四季取得了重大進展，但我們的業務營運因 2020 年第一季冠狀病毒的爆發而受到干擾。

First, our sales in China have been impacted significantly.

首先，我們在中國的銷售受到了重大影響。

Multiple cities have shut down business for part or the entire February.

多個城市在二月部分或整個月份關閉了商業活動。

So we started February with all of our stores closed but ended with 65% of our stores opened at end of February for business.

因此，2 月開始時，我們所有的商店都關門了，但到了 2 月底，我們的 65% 的商店就開始營業了。

Furthermore, as people were recommended to stay home and work from home, there were little retail traffic or retail demand.

此外，由於建議人們留在家中並在家工作，因此零售客流量或零售需求很少。

Now we started to observe recovery in March as businesses start to be back in operation.

現在，隨著企業開始恢復運營，我們開始觀察三月的復甦。

And up until now, 85% of our stores have opened for business.

截至目前，我們85%的門市已開幕。

Now in addition, for the past 1.5 months, we also focused on store sales improvement, linking off-line stores with online presence.

另外，在過去的1.5個月裡，我們也專注於商店銷售的改善，將線下商店與線上連結起來。

In February, we trained all our store operators to set up online virtual stores via WeChat and provided online sales consultations to potential customers.

2月份，我們培訓所有門市經營者透過微信建立線上虛擬商店，並向潛在客戶提供線上銷售諮詢。

We also marketed the online purchase, off-line delivery campaign and received promising results.

我們也進行了線上購買、線下配送活動，並獲得了良好的效果。

Our online to off-line orders has increased by 2.5x over the same time last year.

我們的線上線下訂單量比去年同期成長了 2.5 倍。

Second, our international sales have also been impacted due to the disruption in production and shipping.

其次，由於生產和運輸中斷，我們的國際銷售也受到了影響。

Our factory was shut down for the first half of February.

我們的工廠在二月上半月停工了。

And after the factory reopened in mid-February, we also experienced a shortage of frontline workers as many of them were still in quarantine in their hometown.

而且2月中旬工廠重新開工後，我們也遇到了一線工人的短缺，因為他們中的許多人仍在家鄉接受隔離。

Now our upstream suppliers also experienced similar situation.

現在我們的上游供應商也遇到了類似的情況。

Now this disruption has caused slight delay in our international order fulfillment.

現在，這種中斷導致我們的國際訂單履行略有延遲。

Amid the current outbreak globally, we also focused on expanding our international footprint, enter additional countries in South America as well as establish a stronger footprint in Southeast Asia to diversify the international sales.

在當前全球疫情爆發的情況下，我們也專注於擴大我們的國際足跡，進入南美洲的更多國家，並在東南亞建立更強大的足跡，以實現國際銷售多元化。

Now despite the current setbacks, we remain very positive about our business performance after the coronavirus outbreak is over.

儘管目前遇到挫折，但我們對冠狀病毒爆發結束後的業務表現仍然非常樂觀。

First, the long-term industry trend or the fundamental market demand remains unchanged.

首先，產業長期趨勢或市場基本需求並沒有改變。

Urban mobility is a necessity, and there is always a strong demand for more convenient, more efficient and cleaner urban commuting solutions.

城市出行是一種必然，人們對更便利、更有效率、更乾淨的城市通勤解決方案始終有著強烈的需求。

Second, we observed that in many markets that the forced quarantine has farther shifted the consumer focus from off-line to online, which we will benefit from due to our strong presence in both online and off-line for marketing and sales.

其次，我們觀察到，在許多市場，強制隔離進一步將消費者的關注點從線下轉移到線上，我們將受益於我們在線上和線下行銷和銷售方面的強大影響力。

Now in the meantime, we're managing our business in a very prudent manner and ready to accelerate as soon as the markets start to recover.

同時，我們正在以非常謹慎的方式管理我們的業務，並準備在市場開始復甦時立即加速。

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

現在我將把電話轉給哈迪討論我們的財務表現。

Hardy?

哈迪？

Thank you, Yan, and hello, everyone.

謝謝嚴老師，大家好。

Before I discuss the Q4 financials, I would like to first share with you our cash and liquidity status because I think some of you may have concerns.

在討論第四季度的財務狀況之前，我想先與大家分享我們的現金和流動性狀況，因為我認為你們中的一些人可能會有顧慮。

The short answer is we do not foresee cash and liquidity problem in the short term based on our current estimate.

簡而言之，根據我們目前的估計，我們預計短期內不會出現現金和流動性問題。

By the end of last year, we had cash, term deposit and short-term investment of RMB 765 million in total.

截至去年底，我們擁有現金、定期存款和短期投資總計7.65億元。

In early February, when the Chinese government first announced the restrictive measures to combat the virus, we did a stress testing and run different scenarios to assess the impact.

2月初，當中國政府首次宣布對抗病毒的限制措施時，我們進行了壓力測試並運行了不同的場景來評估影響。

Subsequently, we took proactive actions to manage our cash spending and working capital.

隨後，我們採取積極行動來管理我們的現金支出和營運資金。

In the meantime, we have been monitoring cash sales on daily basis.

與此同時，我們一直在每天監控現金銷售。

We are glad to see cash sales coming in consistently during the past few weeks.

我們很高興看到過去幾週現金銷售持續成長。

In terms of that, we have short-term bank borrowings of RMB 217 million as of December 31 last year.

截至去年12月31日，我們的短期銀行借款為人民幣2.17億元。

Out of the total borrowings, only RMB 20 million is credit loan.

總借款中，只有2000萬元是信用貸款。

The rest are cash pledge loans.

其餘為現金質押貸款。

We pledged our U.S. dollar cash to banks and borrow RMB loan to achieve a reasonable cash balance in different currencies.

我們將美元現金質押給銀行，借入人民幣貸款，以實現不同幣種的合理現金餘額。

Considering our cash balance and debt structure, we do not foresee short-term liquidity problem.

考慮到我們的現金餘額和債務結構，我們預計不會有短期流動性問題。

Of course, to ensure we always have a plan B, we keep active communications with our relationship banks.

當然，為了確保我們始終有備用計劃，我們與關係銀行保持積極溝通。

They are very supportive and stand aside with us to provide support when needed.

他們非常支持我們，並在需要時與我們站在一起提供支援。

I hope I've addressed your concerns, and let's turn back to discuss our Q4 financials.

我希望我已經解決了您的擔憂，然後讓我們回頭討論我們第四季的財務狀況。

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

我們的新聞稿包含您所需的所有數據和比較。

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

我們也會將 Excel 格式的資料上傳到我們的 IR 網站，以方便您參考。

As I review our financial performance, keep in mind that we are referring to the fourth quarter figures, unless I say otherwise, and that's all monetary figures RMB, unless otherwise noted.

當我回顧我們的財務表現時，請記住，除非我另有說明，否則我們指的是第四季度的數據，並且除非另有說明，否則所有貨幣數據均以人民幣計算。

Our Q4 sales volume reached 106,000 units, increased by 13.5% year-over-year, in line with our expectations.

我們的第四季銷量達到 106,000 輛，較去年同期成長 13.5%，符合我們的預期。

Total revenues rose 25% to RMB 536 million, above the guidance we provided earlier mainly because of 2 reasons.

總收入成長 25% 至人民幣 5.36 億元，高於我們先前提供的指引，主要有兩個原因。

First, the product mix for e-scooter sales are more favorable.

首先，電動滑板車銷售的產品結構更為有利。

The higher-priced N and M-Series continued to take a decent proportion of our total sales volume.

價格較高的 N 和 M 系列繼續在我們的總銷量中佔據相當大的比例。

In Q4, N and M-Series in total accounted for 40% of sales volume compared with 35% in Q3.

第四季度，N系列和M系列合計銷售量佔40%，第三季為35%。

Second, strong sales in accessory spare parts and services.

二是配件及服務銷售旺盛。

In Q4, for each e-scooter sold, we also sold RMB 820 accessories, spare parts and services compared with RMB 524 in Q3 and RMB 327 in Q4 2018.

第四季度，每售出一輛電動滑板車，我們還銷售了 820 元人民幣的配件、備件和服務，而 2018 年第三季度為 524 元人民幣，第四季度為 327 元人民幣。

The strong sales came from the spare parts sold to our overseas sharing operator and to our after-sales service providers.

強勁的銷售來自於銷售給我們的海外共享業者和售後服務提供者的備件。

Our e-commerce platforms also had strong sales in accessory and services in the fourth quarter, benefiting from the larger user base, higher brand recognition and more effective marketing activities.

受益於更大的用戶群、更高的品牌認知度和更有效的行銷活動，我們的電子商務平台在第四季度的配件和服務銷售也強勁。

Revenue per scooter was RMB 5,046, up 10% year-over-year.

每輛滑板車收入為人民幣5,046元，較去年同期成長10%。

That growth was mainly driven by strong sales of accessories, spare parts and services, as I mentioned above.

正如我上面提到的，這種成長主要是由配件、備件和服務的強勁銷售所推動的。

Gross margin was 26.1%, 12.6 percentage points better than this time last year and 3.9 percentage points higher sequentially.

毛利率為26.1%，較去年同期增加12.6個百分點，較上一季提高3.9個百分點。

Our full year gross margin was 23.4%, 10% better than full year 2018.

我們全年毛利率為 23.4%，比 2018 年全年提高 10%。

Q4 margin expansion was helped by the similar factor as we discussed during last quarter, being the overall favorable revenue mix and cost cutting efforts.

第四季利潤率的擴張得益於我們在上個季度討論的類似因素，即整體有利的收入組合和成本削減努力。

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

可比經營費用隨著我們業務的成長而增加。

Our total operating expenses excluding share-based compensation was RMB 86.5 million, increased by 31% year-over-year.

扣除股權激勵後，我們的總營運費用為人民幣8,650萬元，較去年同期成長31%。

Operating expenses as a percentage of revenue were 16.1%, 0.6 percentage point higher than the same time last year.

營業費用佔收入的比例為16.1%，比去年同期上升0.6個百分點。

The increase was mainly caused by the higher G&A expense because we made provisions for bad debt and had additional professional service fees related to our global trademark registration.

這一增長主要是由於我們提列了壞帳撥備以及與我們的全球商標註冊相關的額外專業服務費，導致一般管理費用增加。

When we look at the full year 2019 numbers, our total operating expenses excluding share-based compensation were 14.9% of total revenue, reduced by 1.9% compared with 2018.

當我們看2019年全年數據時，不包括股權激勵的總營運費用佔總收入的14.9%，比2018年減少1.9%。

We achieved the leverage in our operating expenses on full year basis.

我們實現了全年營運費用的槓桿化。

In the fourth quarter, we have RMB 13.5 million government grants, mainly related to our new factory in Changzhou, which commenced operation in December.

第四季度，我們有人民幣1,350萬元的政府補助，主要與12月開始運作的常州新工廠有關。

For full year 2019, we had RMB 29.8 million government grants.

2019年全年，我們獲得政府補助2980萬元。

RMB 22.6 million is related to the new factory expansion and the tax paid remaining a one-off grant.

2,260萬元用於新廠擴建，所繳稅款仍為一次性補助。

During 2020, we expect to continue to receive government grants, but it will be a much smaller amount.

2020年，我們預計將繼續獲得政府補助，但金額會小得多。

Our GAAP net income in Q4 was RMB 60.7 million with net income margin of 11.3%.

第四季 GAAP 淨利潤為 6,070 萬元，淨利率為 11.3%。

Our GAAP net income for full year 2019 was RMB 190 million with net income margin 9.2%.

2019 年全年 GAAP 淨利為 1.9 億元，淨利率為 9.2%。

The margin is higher because of above-mentioned improved gross margin, the operating leverage we achieved, government grants and also because of limited income tax expense as the company benefited from the accumulated loss carryforward from early years.

利潤率較高的原因是上述毛利率的提高、我們實現的營運槓桿、政府補貼，以及由於公司受益於早年的累積虧損結轉，所得稅費用有限。

In the coming 2020, when the company continue to generate profit, we expect to pay the regular income tax during the year.

2020年，當公司繼續獲利時，我們預計在年內繳納常規所得稅。

Turning to our balance sheet.

轉向我們的資產負債表。

We ended the quarter with RMB 765 million in cash, term deposits and short-term investment.

截至本季末，我們的現金、定期存款和短期投資為 7.65 億元。

Capital expenditure was RMB 42 million in Q4 mainly for building a new manufacturing facility in Changzhou and for expanding our retail sales network.

第四季的資本支出為人民幣 4,200 萬元，主要用於在常州建設新的生產設施以及擴大我們的零售網路。

Short-term bank loan was reduced by RMB 51 million compared with Q3 as we repaid bank loan.

由於償還銀行貸款，短期銀行貸款較三季減少5,100萬元。

For full year 2019, our operating cash flow was positive RMB 201 million.

2019年全年，我們的經營現金流為正2.01億元。

Capital expenditure was RMB 164 million.

資本支出為人民幣1.64億元。

Now let's turn to guidance.

現在讓我們轉向指導。

We expect first quarter revenue to be in the range of RMB 195 million to RMB 265 million, a decrease of 45% to 25% year-over-year.

我們預計第一季營收將在人民幣1.95億元至人民幣2.65億元之間，年減45%至25%。

Please keep in mind that this forecast reflects our current and the preliminary expectation and could change in light of uncertainty related to the COVID-19 developments.

請記住，該預測反映了我們當前和初步的預期，並且可能會因與 COVID-19 發展相關的不確定性而發生變化。

As Yan already mentioned, our operations are affected by the outbreak in many aspects in the short term.

正如嚴已經提到的，我們的經營短期內受到疫情的多方面影響。

But when taking a longer-term view, we remain positive about our business perspective.

但從長遠來看，我們對我們的業務前景仍然持樂觀態度。

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

現在，讓我們開始通話，詢問您可能向我們提出的任何問題。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) Your first question comes from the line of Winnie Dong of Piper Sandler.

（操作員說明） 您的第一個問題來自 Piper Sandler 的 Winnie Dong。

For Alex Potter.

為了亞歷克斯·波特。

I'm wondering, so you have your guidance down for March, down 25% to down 45%.

我想知道，你們對 3 月的指導意見下調了 25% 至 45%。

Can you elaborate on what kind of scenarios you're baking into that wide range?

您能否詳細說明一下您在如此廣泛的範圍內烘焙了哪些場景？

What will get us to the higher end?

是什麼讓我們走向更高端？

And what will get us to the lower end?

是什麼讓我們走向低端？

And then just any sort of on-the-ground development that you're carrying in March as we stand now?

然後，正如我們現在所採取的那樣，你們在三月進行了任何形式的實地開發？

Obviously, a lot of impact has spread to Europe and to the West.

顯然，許多影響已經蔓延到歐洲和西方。

Anything that you're seeing in China, that'd be -- if you can share that, that would be great.

你在中國看到的任何東西，如果你能分享，那就太好了。

Yes.

是的。

For the guidance, yes, we gave a wide range with 45% to 25% decrease compared with last year.

對於指導，是的，我們給出了較去年下降 45% 至 25% 的廣泛範圍。

And the basis for giving that is we first took a conservative estimate based on the orders we more or less already have on our book.

給出這項數據的基礎是，我們首先根據我們或多或少已有的訂單進行保守估計。

That's including both the orders from overseas distributors and also the estimated orders from domestic distributors.

這既包括海外經銷商的訂單，也包括國內經銷商的預計訂單。

And because, as you may know, there is seasonality in the sales of e-scooters in China and Q1 is the slowest season, and normally, the sales begin to pick up from March, therefore, we expect the second half of March will be quite key 2 weeks for us to sell additional scooters.

而且，如您所知，中國電動滑板車的銷售存在季節性，第一季是最淡的季節，而通常情況下，銷售從3月份開始回升，因此，我們預計3月下旬將是對於我們銷售更多踏板車來說，這兩週非常關鍵。

Therefore, we are betting on additional 20% from the second half of March mainly because -- a few things.

因此，我們押注從 3 月下半月開始將增加 20%，主要是因為——有幾件事。

First, if the government lifted some of the restrictive measures for store openings, then this additional shop can open in the next 2 weeks.

首先，如果政府取消一些開店限制措施，那麼這家額外的商店可以在未來兩週內開業。

As Yan already mentioned, up to now, we have only 85% shops opened.

正如嚴已經提到的，到目前為止，我們只有85%的商店開業了。

But if the additional 15% shops can open, then we can generate additional revenue from our retail shops.

但如果額外的 15% 商店能夠開業，那麼我們就可以從我們的零售店中獲得額外的收入。

This is the first reason.

這是第一個原因。

Second reason, as we have seen some of our distributors who have their shops opened, they are increasing their retail sales.

第二個原因，正如我們看到的一些經銷商開設了商店，他們正在增加零售額。

Therefore, we expect they will continue to order from us.

因此，我們預計他們將繼續向我們訂購。

However, as I said, there's a lot of uncertainties during -- due to the current outbreak.

然而，正如我所說，由於當前的疫情爆發，期間存在許多不確定性。

Therefore, we have taken a conservative approach and also give a wider range due to the risk involved.

因此，我們採取了保守的做法，並且由於涉及風險而給予了更廣泛的範圍。

Then I'll leave it to Yan to comment on the rest.

那剩下的就交給Yan來評論吧。

Yes, I think Hardy pretty much covered it.

是的，我認為哈代幾乎涵蓋了它。

It's really -- we're actually watching the situation on a daily basis at this point.

事實上，我們現在每天都在關注局勢。

If we look at the retail sales in March, basically, the first 2 weeks, like you guys look at the second week versus the first week, the retail sales actually increased by almost 10% to 15%.

如果我們看一下 3 月的零售額，基本上是前兩週，就像你們看第二週與第一周相比，零售額實際上增長了近 10% 到 15%。

So it's really about third week and the fourth week, how that picked up and how we fulfill the orders.

所以這實際上是關於第三週和第四周，情況如何好轉以及我們如何履行訂單。

At this point, our factories are pretty much back online, so we have no issues of fulfilling orders.

目前，我們的工廠已基本恢復生產，因此我們不存在履行訂單的問題。

It's really the market need to be picked up, both from the China side as well as we're looking at the Europe and the U.S. as well.

這確實是一個需要回升的市場，無論是中國方面，還是歐洲和美國。

I hope that answers your question.

我希望這能回答你的問題。

Yes, that's very helpful.

是的，這非常有幫助。

Your next question comes from the line of Vincent Yu of Needham & Company.

您的下一個問題來自 Needham & Company 的 Vincent Yu。

Management, I have a few questions.

領導，我有幾個問題。

First question is trying to understand what's our view in international market in first half 2020, especially when the European are -- like the outbreak continue to go on.

第一個問題是試著了解我們對 2020 年上半年國際市場的看法，尤其是在歐洲疫情持續蔓延的情況下。

The second question is on what's our view in gross margin in the short term to long term and especially how big headwind we should expect especially when overseas market is being impacted.

第二個問題是我們對短期和長期毛利率的看法，特別是當海外市場受到影響時，我們應該預期會有多大的阻力。

Third question is what's our view on our 2020 OpEx and CapEx plan given the industry headwind.

第三個問題是，鑑於產業逆風，我們對 2020 年營運支出和資本支出計畫有何看法。

I'll cover the market.

我來報道市場。

Okay, let me -- so this is Yan Li.

好的，讓我——這是李艷。

I'll cover the international market.

我將負責國際市場。

I'll have Hardy cover the gross margin, the CapEx, OpEx as well.

我會讓 Hardy 負責毛利率、資本支出和營運支出。

So I mean, to be -- frankly, I think we're actually watching the international market on a daily basis right now.

所以我的意思是，坦白說，我認為我們現在實際上每天都在關注國際市場。

So if you look at last year, the -- I think the European sales represent roughly about 70% -- or 70 -- 60% to 70% of sales internationally, plus the U.S. market probably represent about 80% of our sales.

因此，如果你看看去年，我認為歐洲銷售額大約佔國際銷售額的 70% 或 70% 到 70%，加上美國市場可能占我們銷售額的 80% 左右。

So those -- we have orders from European distributors, and we have orders from U.S. distributors as well some of the sharing operators in Europe and the United States.

因此，我們有來自歐洲分銷商的訂單，也有來自美國分銷商以及歐洲和美國的一些共享營運商的訂單。

And so those are orders actually in our backlog at this point we're actually trying to fulfill.

因此，這些訂單實際上是我們目前正在積壓的訂單，我們實際上正在努力履行。

And they will actually serve as a basis for the first half in 2020.

它們實際上將作為 2020 年上半年的基礎。

Then having said that, right, it's really depends on how -- obviously, our sales operation has been impacted -- retail sales operation has been impacted.

話雖如此，這實際上取決於——顯然，我們的銷售業務受到了影響——零售業務受到了怎樣的影響。

For example, Italy, where initially, we have about -- we plan actually to build out about 10 to 20 flagship stores in Italy.

例如，在義大利，我們最初實際上計劃在義大利建立大約 10 到 20 家旗艦店。

And right now, we only have a few.

現在，我們只有少數。

And then the entire country's practically got shut down.

然後整個國家幾乎都被封鎖了。

So that retail sales practically are down for the first few weeks.

因此，前幾週零售額實際上下降了。

So we're actually watching the situation on a daily basis at this point.

因此，我們實際上每天都在關注這一情況。

Let me ask Hardy on the gross margin point.

讓我問哈迪關於毛利率的問題。

Yes.

是的。

And for the gross margin, for the full year 2019, our gross margin was around 23%.

至於毛利率，2019年全年，我們的毛利率約為23%。

And for the Q1 this year, we do expect some of the decrease of gross margin mainly because our factory cannot work beyond the full capacity.

對於今年第一季度，我們確實預計毛利率會下降，主要是因為我們的工廠無法滿載運轉。

However, for the full year 2020, we still have the plan to at least keep the same gross margin as what we already achieved in 2019.

然而，對於2020年全年，我們仍然計劃至少保持與2019年相同的毛利率。

These couple of initiatives we have already started since the end of last year.

這兩項措施我們從去年年底就已經開始了。

One of the things is we are trying to renegotiate some of the component costs with different suppliers.

其中一件事是我們正在嘗試與不同的供應商重新協商一些組件成本。

And we made progress with many of them.

我們在其中許多方面取得了進展。

Therefore, we do see continuous cost down opportunities.

因此，我們確實看到了持續降低成本的機會。

Secondly, as you know, we commenced the operation in our new manufacturing facility in Changzhou.

其次，如您所知，我們在常州的新製造工廠開始運作。

And that facility was designed by ourself, therefore, we do expect higher efficiency from this new facility.

而且該設施是我們自己設計的，因此，我們確實期望這個新設施能夠實現更高的效率。

And very lastly, as we continue to improve our revenue mix, including both the accessories, spare parts and also some of the international sales, we do expect some potential upside from the revenue mix.

最後，隨著我們繼續改善我們的收入組合，包括配件、備件以及一些國際銷售，我們確實預計收入組合會出現一些潛在的上升空間。

Overall speaking, we target to achieve at least the same gross margin as what we have in 2019.

總體而言，我們的目標是至少實現與 2019 年相同的毛利率。

So this is gross margin.

這就是毛利率。

And to answer your last question on the OpEx and the CapEx.

並回答您關於營運支出和資本支出的最後一個問題。

For the OpEx, as a percentage of revenue in 2019, it was around 15% of our revenue.

對於營運支出，2019 年佔收入的百分比約為我們收入的 15%。

Given we expect to continue to grow in 2020, we think we could probably at least maintain this 15%, and maybe we can even achieve further synergies or leverage from operating expenses.

考慮到我們預計 2020 年將繼續成長，我們認為我們至少可以維持這個 15%，甚至可能從營運支出中獲得進一步的協同效應或槓桿作用。

In terms of CapEx during 2020, there's 2 areas where we want to spend money.

就 2020 年的資本支出而言，我們希望在兩個領域花錢。

One is to continue to expand our retail sales network.

一是繼續擴大零售網絡。

Because of the -- this coronavirus outbreak, we are reevaluating how many shops we need to open.

由於這次冠狀病毒的爆發，我們正在重新評估需要開設多少家商店。

But in any way, I think maybe RMB 50 million to RMB 100 million will be more than enough for us to open all the retail shops which we need.

但無論如何，我想也許5000萬到1億人民幣對於我們開所有我們需要的零售店來說是綽綽有餘的。

The second area we want to spend money is we reserved a piece of land next to our current facility.

我們要花錢的第二個面向是我們在現有設施旁邊保留了一塊土地。

And we do have a plan to acquire at least the land use right of that facility.

我們確實有計劃至少收購該設施的土地使用權。

And therefore, we can ready to construct new factory whenever needed in China because of new national standard implementation last year.

因此，由於去年新國標的實施，我們可以隨時在中國需要時建造新工廠。

Chinese government gave a 3-year transition period for the consumers to replace their e-scooter or bicycles.

中國政府給消費者提供了三年的過渡期來取代電動滑板車或自行車。

Therefore, we do expect some of the increase in demand during 2021 and also 2022.

因此，我們預計 2021 年和 2022 年需求會增加。

Therefore, we do believe we need to get ready for some of the capacities.

因此，我們確實認為我們需要為某些能力做好準備。

Therefore, these are the 2 areas that we may spend money, but they are more or less in we'll control, and we can base on how the things develop to decide how much and also how fast we spend money.

所以，這兩個方面是我們可能會花錢的地方，但是它們或多或少是我們可以控制的，我們可以根據事情的發展來決定我們花錢的金額和速度。

I hope this answers the question.

我希望這能回答這個問題。

Yan, anything to add?

顏，還有什麼要補充的嗎？

Vincent, just actually -- just one thing I'll mention on your first question is actually besides Europe, there's one thing we're trying -- what we have done, and actually, we believe it actually will help the international market this year as we diversify our revenue streams not just from -- it used to be Europe and the United States represent 80% market, but literally starting at the second half last year as we actually expanded to more countries, for example, we successfully entered Japan, we're well in Korea, we're actually starting to develop more businesses in Southeast Asia.

文森特，實際上- 我在你的第一個問題上要提到的一件事實際上是除了歐洲之外，我們正在嘗試一件事- 我們已經做了什麼，實際上，我們相信這實際上將有助於今年的國際市場因為我們的收入來源多元化，不僅來自歐洲和美國，過去歐洲和美國佔80%的市場，但從去年下半年開始，我們實際上擴展到了更多國家，例如，我們成功進入了日本，我們在韓國做得很好，實際上我們已經開始在東南亞發展更多業務。

And just recently, we actually signed quite a few distributor agreement in South America.

就在最近，我們實際上在南美洲簽署了相當多的經銷商協議。

So obviously, some of the sales actually, whether it will show up in Q2 or second half of Q2, it depends.

顯然，實際上有些銷售是會在第二季還是第二季下半年出現，這取決於情況。

It also depends on how situation in those countries actually turned out to.

這也取決於這些國家的實際情況如何。

But I think as -- if I look at -- in the long run, not -- it's for the entire year, it actually opened up more markets for us, which actually help us to basically diverse -- to reduce the risk.

但我認為，從長遠來看，不是全年，它實際上為我們開闢了更多市場，這實際上幫助我們基本上實現多元化，以降低風險。

(Operator Instructions) Your next question comes from the line of Bin Wang of Crédit Suisse.

（操作員指示）您的下一個問題來自瑞士信貸銀行的王斌。

I actually have 3 questions.

我其實有3個問題。

Number one is about volume growth in the past 3 months.

第一個是過去 3 個月的銷售成長。

If you see, you guide 25% to 45% revenue decline -- along the increased decline and because the ASP increased by 5% last year, so the volume guidance is now going to be 20% to 40% decline.

如果你看到的話，你會指導收入下降 25% 到 45%——隨著下降幅度的加大，而且由於去年 ASP 增加了 5%，所以銷量指導現在將下降 20% 到 40%。

So in that case, can you provide by March, say, what's the number in January, what's number in February and what's that in the March?

那麼在這種情況下，您能否提供 3 月份之前的信息，例如 1 月份的數字是多少，2 月份的數字是多少，3 月份的數字是多少？

Can I assume that March will be much higher growth compared to February, so we see a sequential improving trend?

我是否可以假設 3 月的成長將比 2 月高得多，因此我們可以看到連續改善的趨勢？

That's number one about volume growth.

這是關於銷量成長的第一大問題。

And number two is about new products.

第二是關於新產品。

We're actually expecting you'll relaunch M-Series called MQi because the country is still in motorcycle, it didn't reach into the e-scooter category.

實際上，我們希望您能重新推出名為 MQi 的 M 系列，因為該國仍以摩托車為主，尚未進入電動踏板車類別。

So when the new designs are M passed, we are back to the e-scooter category that actually were a key driver for the volume growth this year.

因此，當新設計通過 M 測試時，我們又回到了電動滑板車類別，這實際上是今年銷量成長的關鍵驅動力。

That's the second question.

這是第二個問題。

And third one is about the cost reduction.

第三個是關於降低成本。

We actually observed the battery price has been declined around 28% year-over-year in the first quarter this year and if you see sequential also increased -- declined by around 20% Q-on-Q.

事實上，我們觀察到今年第一季電池價格年減了 28% 左右，如果你看到環比也有所上漲的話，環比下降了 20% 左右。

So this actually is the only battery.

所以這實際上是唯一的電池。

Can I assume a similar pricing decline for the e-scooter battery as well?

我是否可以假設電動滑板車電池的價格也會出現類似的下降？

So if in the case, can I assume 20% of cost reduction in the battery price?

那如果是這樣的話，我可以假設電池價格可以降低20%的成本嗎？

The battery?

電池？

Okay.

好的。

Let me, Bin, address your first question about the volume for the first 3 months.

Bin，讓我回答你關於前 3 個月銷售的第一個問題。

Normally, we -- look, we combine January and February together because different years, the Chinese New Year are on different months.

通常，我們——看，我們將一月和二月合併在一起，因為不同的年份，農曆新年在不同的月份。

So if you combine January and February, our volume was down around 60% compared with last year.

因此，如果將 1 月和 2 月合併起來，我們的銷量比去年下降了 60% 左右。

But in March, at least in the first 2 weeks, we have seen volume down only 20% to 30%.

但在 3 月份，至少在前兩週，我們看到成交量僅下降了 20% 至 30%。

So we do see an improvement in the first 2 weeks of March, and we continue to see improvement during the past few days.

因此，我們確實看到 3 月的前兩週有所改善，並且在過去幾天中我們繼續看到改善。

So this is answer for your first question on the volume.

這是您關於該卷的第一個問題的答案。

For the second, for the new product, I will leave to Yan to comment.

第二，對於新產品，我將留給Yan評論。

So on the product part, so we do have a plan to not just have 1 series, also have 2 products that are compliant with the Chinese new regulations on electric bicycles.

所以在產品部分，我們確實有一個計劃，不只是1個系列，還有2個符合中國電動自行車新法規的產品。

Those products were scheduled to be launched in April, but now actually due to the coronavirus outbreak, we had to push it -- it basically created a delay roughly about a month or so.

這些產品原定於四月份推出，但現在實際上由於冠狀病毒的爆發，我們不得不推遲它 - 它基本上造成了大約一個月左右的延遲。

So we're actually trying to -- the entire team trying to work very hard to actually try to accelerate that schedule such that we can actually see the product either by end of April or early May.

因此，我們實際上正在努力 - 整個團隊都在努力工作，以實際加快進度，以便我們能夠在四月底或五月初之前看到該產品。

The delay is mainly, needless to say, entirely -- basically the entire country got shut down for a month or a month or more.

不用說，延遲主要是——基本上整個國家都關閉了一個月或一個月或更長時間。

So it's actually very difficult to accelerate the product development.

所以加速產品開發其實是非常困難的。

So we're trying hard on that one.

所以我們正在努力做到這一點。

So -- and also, we do have high hope on those 2 products, especially the one -- first, on the one you mentioned, the new M-Series that will be actually a full-covered electric bicycle products.

因此，我們確實對這兩種產品抱有很高的希望，尤其是第一個，您提到的新 M 系列，它實際上將是一款全覆蓋的電動自行車產品。

It have -- will have the -- inherited the design style of our M-Series at the same time complying with the China new regulations.

它繼承了我們M系列的設計風格，同時符合中國的新法規。

I think people have been expecting that product since last year.

我認為人們從去年開始就一直在期待這款產品。

And finally, we should be able to give what people want in Q2 this year.

最後，我們應該能夠在今年第二季提供人們想要的東西。

And just to add to Yan's point on the second -- your second question about the new M, we have successfully got the certification for that product.

補充一下 Yan 的第二點——你關於新 M 的第二個問題，我們已經成功獲得了該產品的認證。

So I think that's one of the key milestones that we already achieved.

所以我認為這是我們已經實現的關鍵里程碑之一。

And to answer your third question about cost reduction, I think during 2019, we have seen the whole battery, including battery cell, also battery pack, the cost has reduced around 9% during 2019.

回答你關於成本降低的第三個問題，我認為在2019年期間，我們看到整個電池，包括電芯，還有電池組，成本在2019年降低了9%左右。

And for 2020, it's on the current estimate, we see at least a 5% to 10% reduction.

對於 2020 年，根據目前的估計，我們預計至少會減少 5% 到 10%。

And this is before the coronavirus outbreak.

這是在冠狀病毒爆發之前。

But this outbreak may give us additional leverage to continue to negotiate the price down.

但這次疫情可能會給我們額外的籌碼來繼續談判降價。

So that's our current expectation, probably 5% to 10% cost reduction for the battery cell.

這就是我們目前的預期，電池成本可能會降低 5% 到 10%。

(Operator Instructions) There are no further question at this time.

（操作員說明） 目前沒有進一步的問題。

I would now like to hand the conference back to today's presenter.

現在我想將會議交還給今天的主持人。

Please continue.

請繼續。

Well, thank you, operator, and thank you all for participating in today's call and for your support.

好的，謝謝接線員，也謝謝大家參加今天的電話會議並給予支持。

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

我們感謝您的關注，並期待下個季度再次向您報告我們的進展。

Thank you.

謝謝。

Thank you.

謝謝。

Ladies and gentlemen, that does conclude our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now all disconnect.

你們現在可以斷開連結了。