小牛電動 (NIU) 2022 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Niu Technologies Second Quarter 2022 Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Wendy Zhao. Please go ahead.

美好的一天，感謝您的支持。歡迎來到小牛科技 2022 年第二季度收益發布電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給你今天的第一位發言人，Wendy Zhao。請繼續。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the second quarter 2022. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from the company's IR website as well, and a replay of the call will be available soon.

謝謝你，接線員。大家好。歡迎參加今天的電話會議，討論 Niu Technologies 2022 年第二季度的業績。收益新聞稿、公司演示文稿和財務電子表格已發佈在我們的投資者關係網站上。該電話也正在公司的 IR 網站上進行網絡直播，很快將提供電話重播。

Please note today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions and other factors.

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。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. Further information regarding the risk factors is included in the 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.

該公司的實際結果可能與今天所表達的結果大不相同。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。除非法律要求，否則公司不承擔更新任何前瞻性陳述的任何義務。

Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.

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原則財務措施的討論。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。

On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to Yan.

今天與我通話的是我們的首席執行官嚴麗博士；和首席財務官 Fion Zhou 女士。現在讓我把電話轉給嚴。

Thanks, Wendy, and thanks, everyone, for joining us on the call today. In Q2 2022, we delivered a mixed result in the China and international markets. Total sales volume were down by 17.4% year-over-year. The total sales volume in the international market were up by an impressive 200% year-over-year, reaching nearly 29,000 units, mainly driven by the growth in the new category of kick-scooters.

謝謝溫迪，也謝謝大家今天加入我們的電話會議。 2022 年第二季度，我們在中國和國際市場取得了喜憂參半的結果。總銷量同比下降17.4%。國際市場總銷量同比增長 200%，達到近 29,000 輛，主要受新品類滑板車增長的推動。

However, the total sales volume in the China market was down by 26.7% year-over-year. The China market was severely affected by the COVID-19 resurgence. Now in the China market, COVID infection spike starting in early April and affected throughout the entire quarter. The lockdown halted pretty much all business operations in the cites like Shanghai and severely slowed down the most in others like Beijing.

然而，中國市場的總銷量同比下降了26.7%。中國市場受到 COVID-19 復甦的嚴重影響。現在在中國市場，COVID 感染從 4 月初開始激增，並影響到整個季度。封鎖幾乎停止了上海等城市的所有商業運營，並嚴重放緩了北京等其他城市的運營速度。

New sales are highly concentrated in the higher-tier cities, which were impacted by COVID more significantly, as top-tier cities account for 35% to 55% of total sales in the China market. In addition, the lockdown in Shanghai also caused months of delay in new product development, as our R&D center is based in Shanghai.

新銷售額高度集中在受新冠疫情影響較大的一線城市，因為一線城市佔中國市場總銷售額的 35% 至 55%。此外，由於我們的研發中心設在上海，上海的封鎖也導致新產品開發延遲數月。

This has impacted our sales performance in quarter 2 as well as in Q3, as quite a few key new products that are originally scheduled in Q2 were delayed to late August.

這影響了我們在第二季度和第三季度的銷售業績，因為許多原定於第二季度的關鍵新產品被推遲到了 8 月下旬。

For the international market, in Q2, sales of kick-scooters continue to grow rapidly in the overseas market, growing by 112% quarter-over-quarter. During the Amazon Prime Day promotions, Niu was ranked #1 on Amazon bestsellers in the kick-scooter categories in Canada, Germany and France and the ranked top 3 in Spain, U.S. and Italy market.

國際市場方面，二季度，滑板車海外市場銷量繼續快速增長，環比增長112%。在亞馬遜Prime Day促銷期間，小牛在加拿大、德國和法國的滑板車類亞馬遜暢銷書中排名第一，在西班牙、美國和意大利市場排名前三。

We're excited to see that in less than year since we launched the first kick-scooter product, we have already established our reputation as top sellers in the European-U.S. market online. With the strong performance from online sales, we're also expecting sales ramping up in offline channels, as it usually takes more time.

我們很高興看到，在我們推出第一款滑板車產品不到一年的時間裡，我們已經確立了在歐美暢銷的聲譽。在線市場。隨著在線銷售的強勁表現，我們也預計線下渠道的銷售量會增加，因為這通常需要更多時間。

As delayed by the COVID, we finally launched 3 new electric bicycle product for China in August, the revolutionary SQi, the new UQi+ and the B2. I'll expand on new products in detail. The SQi is positioned as our most high-end product in the China electric bicycle product category with its innovative design and cutting-edge technology and materials.

受疫情影響，我們終於在 8 月為中國推出了 3 款新的電動自行車產品，革命性的 SQi、新的 UQi+ 和 B2。我將詳細介紹新產品。 SQi以其創新的設計和尖端的技術和材料被定位為我們在中國電動自行車產品類別中的最高端產品。

The SQi has a futuristic straddle motorcycle-like look with a clearly cut geometric body, frame and large 70-inch wheels. It represents an unconventional design for electric bicycles, yet still meeting the China new standard. In order to meet the weight requirements, we adopted a high-performing aerospace magnesium alloy material as a body frame, the first in electric bicycle market.

SQi 具有未來派跨騎式摩托車外觀，具有清晰切割的幾何車身、車架和 70 英寸大車輪。它代表了電動自行車的非傳統設計，但仍符合中國新標準。為了滿足重量要求，我們採用了高性能航空鎂合金材料作為車身框架，這在電動自行車市場上是首創的。

With this unique design, the SQi has quickly gained attention from media and users across China. According to some media, the SQi has pushed the product innovation limit in the electric bicycle market. The SQi is priced from RMB 8,999 to RMB 9,599 and it will be in production in November.

憑藉這種獨特的設計，SQi 迅速獲得了中國媒體和用戶的關注。有媒體稱，SQi已經推動了電動自行車市場的產品創新極限。 SQi售價8999-9599元，11月量產。

We launched a presales campaign on August 2 and within the first 10 days after launch, nearly 9,000 preorders were made. Along with the launch of SQi, we also announced a collaboration with Razer the leading global lifestyle brand for gamers.

我們於 8 月 2 日推出了預售活動，在推出後的前 10 天內，預訂了近 9,000 份。隨著 SQi 的推出，我們還宣布與全球領先的遊戲玩家生活方式品牌 Razer 合作。

We released the limited addition of NIU X Razer co-branded SQi, which is designed to embody Niu's innovative design and Razer signature logo and Razer as screen brand color.

我們發布了小牛 X 雷蛇聯名 SQi 的限量版，旨在體現小牛的創新設計和雷蛇標誌性標誌以及雷蛇作為屏幕品牌顏色。

The 299 limited new Razer SQi were priced at RMB 9,999 and all 299 scooters preorders were sold out during the launch event in just 2 seconds. We see great synergy in this co-branding, as they put together a new unique design with Razer's gaming.

Razer SQi 限量 299 輛，售價 9999 元人民幣，299 輛滑板車預購在發布會上僅 2 秒就被搶購一空。我們在這個聯合品牌中看到了巨大的協同效應，因為他們將新的獨特設計與 Razer 的遊戲結合在一起。

We also launched a co-brand in NQi GT, as we plan to sell the NIU X Razer, NQiGT in the overseas market.

我們還推出了 NQi GT 的聯名品牌，因為我們計劃在海外市場銷售 NIU X Razer，NQiGT。

Now our U-Series has launched 2 products that has won 07 international design awards in mobility category. The original U1 was released in 2017 and the U+ and US were released in 2019. Together, they accounted for nearly 25% of sales.

現在我們的U系列已經推出了2款產品，獲得了07個移動類國際設計大獎。原版 U1 於 2017 年發布，U+ 和 US 於 2019 年發布。它們合計佔銷售額的近 25%。

Although remaining at the top selling series, the design functionalities needed upgrade after 5 years in the market. We launched a brand-new UQi+, which inherited design sales of the classic U series, but improved the significantly on many aspects, such as the light design, the smart control system and riding economics and additional functionalities for personalization.

雖然仍然是最暢銷的系列，但設計功能在上市 5 年後需要升級。我們推出了全新的UQi+，繼承了經典U系列的設計銷量，但在燈光設計、智能控制系統和騎行經濟性等多方面都有顯著提升，並增加了個性化功能。

The new U+ user -- uses the hallow halo light, the first of its kind in the industry, making it easier recognizable riding on the street. It has 2 additional side taillights compared with the previous version, make it safer to ride in the dark at night. This is compatible with our upgraded intelligence system, the OkGo!, which enable complete senseless control.

新的U+用戶——使用業內首創的Hallow Halo光暈，讓騎行在街上更容易辨認。與前代相比增加了2個側尾燈，讓夜間在黑暗中騎行更安全。這與我們升級的智能係統 OkGo! 兼容，可實現完全無感控制。

Users can start a scooter, open the seat box and storage box with just their cell phones in the pocket. In addition, the new OkGo! features now can be activated with Siri, which users can start and control scooter with Siri voice commands.

用戶只需將手機放在口袋裡，就可以啟動滑板車，打開座箱和儲物箱。此外，新的 OkGo！現在可以通過 Siri 激活功能，用戶可以通過 Siri 語音命令啟動和控制滑板車。

The upgraded intelligence system made the new U+ a most user convenience scooter to right around. In terms of riding economics, we also improved the seating and decking design to make it riding more comfortable. The new U+ has increased the legroom and lowered the seat height, make it comfortable for users with various heights.

升級後的智能係統使新 U+ 成為最方便用戶的踏板車。在騎行經濟性方面，我們還改進了座椅和甲板設計，使其騎行更加舒適。新的U+增加了腿部空間，降低了座椅高度，讓不同身高的用戶都感到舒適。

The new UQi scooter has a drive range up to 95 kilometers on 1 charge. Now the biggest highlight on the design of the new UQi+ as interchangeable exoskeleton frame and the magnetic panel on the side, opening up countless possibilities for personalizations. We see many of our customers choose to personalize their scooter parts to make their scooter represent their own taste.

新款 UQi 踏板車一次充電可行駛 95 公里。現在新款UQi+的最大亮點在於可互換的外骨骼框架和側面的磁性面板，為個性化開闢了無數可能。我們看到我們的許多客戶選擇個性化他們的滑板車零件，以使他們的滑板車代表自己的品味。

We believe by opening up the designing and the creation of the decorative parts to our users will further encourage the expression of their unique lifestyle. Now the brand-new U+ is priced from RMB 5,299 and to RMB 7,499. The third product we released is our B2, a large electric bicycle for the mid-end price range market in China, priced from RMB 3,999 to RMB [4,399]

我們相信，通過向我們的用戶開放裝飾部件的設計和創作，將進一步鼓勵他們表達他們獨特的生活方式。現在全新的U+售價從5299元到7499元不等。我們發布的第三款產品是我們的B2，一款面向中國中端價位市場的大型電動自行車，售價從人民幣3,999元到人民幣[4,399]

The B2 comes with a simplistic device style, but with a large 4 factors. It's about 20% to 30% larger than our G2 and F2, which were released in 2020 and 2021. The G2, F2 as part of 2 series are among the most popular mid-end market product in our portfolio. Together, those 2 models accounted for 22% of sales in China.

B2 具有簡單的設備風格，但具有很大的 4 個因素。它比我們在 2020 年和 2021 年發布的 G2 和 F2 大約大 20% 到 30%。作為 2 系列的一部分的 G2、F2 是我們產品組合中最受歡迎的中端市場產品之一。這兩款車型合計佔中國銷量的22%。

The addition of B2 completes the product offering targeting the mid-end market by having a large form factor design with longer deck area and bigger storage box. Large form factor makes it comfortable to ride with, bigger legroom and also unable additional baby seat, making it more practical scooters for daily use.

B2 的加入完善了針對中端市場的產品供應，它具有更大的外形設計、更長的甲板面積和更大的儲物箱。大尺寸使其乘坐舒適，更大的腿部空間，也無法額外的嬰兒座椅，使其成為日常使用的更實用的踏板車。

It is also equipped with the basic intelligent systems such as GPS locationing, the NFC and the new app access.

它還配備了GPS定位、NFC和新的應用程序訪問等基礎智能係統。

Now the 3 new models covered a wide range of market segments in China, the SQi was unique design reinforce Niu's brand as the innovation leader in the industry. The new U+ enhanced Niu's product offerings in the high-end segment and the new B2 with the large form factor that enabled practical design completes our product offerings targeting the mass segment.

現在這3款新車型覆蓋了中國廣泛的細分市場，SQi的獨特設計鞏固了小牛作為行業創新領導者的品牌。新的 U+ 增強了小牛在高端市場的產品供應，而新的 B2 具有實現實用設計的大尺寸，完善了我們針對大眾市場的產品供應。

With the potential of those products become not only just Niu's next flagship product, but also a product that needs market trend.

具有潛力的產品不僅成為小牛的下一個主打產品，也是需要市場趨勢的產品。

Now along with the new product launches in August, we have organized a series of marketing and branding campaigns via PR, social media, PR collaborations and user events. We have various price release events and invited nearly more than 100 media partners to test ride and to cover our new product launches. And those 100 media events have published more than 200 articles.

現在，隨著 8 月份的新產品發布，我們通過公關、社交媒體、公關合作和用戶活動組織了一系列營銷和品牌活動。我們舉辦了各種價格發布活動，並邀請了近百家媒體合作夥伴試駕並報導了我們的新產品發布。這100個媒體活動發表了200多篇文章。

Now we also -- on the social media platform, we collaborate with nearly 60 tech and lifestyle influencers and QRs with large fan bases to create content showcasing our new scooters. The (inaudible) together gained more than 170 million views across all platforms after launch.

現在，我們還在社交媒體平台上與近 60 位科技和生活方式影響者以及擁有大量粉絲群的 QR 合作，創建展示我們新滑板車的內容。發布後，（聽不清）在所有平台上的觀看次數總計超過 1.7 億次。

Our product launches have also reached (inaudible) hotlist on August 2 and August 9 gaining a total of 570 million of views and more than 400,000 discussions. We initiated (inaudible) topic of urban commit with electric scooter is better than driving to introducing our new scooters and it soon become a phenomenon with more than 200 million views.

我們的產品發布也在 8 月 2 日和 8 月 9 日登上了（聽不清）熱榜，獲得了總計 5.7 億的瀏覽量和超過 400,000 次討論。我們發起（聽不清）關於電動滑板車城市承諾的話題比開車介紹我們的新滑板車要好，它很快成為一種現象，瀏覽量超過 2 億。

Those huge media exposures served as testimony on the market reactions to our newly launched product, but also further improve our brand image as an innovative leader in the urban mobility market in China.

這些巨大的媒體曝光見證了市場對我們新推出產品的反應，也進一步提升了我們作為中國城市交通市場創新領導者的品牌形象。

Now turning to the overseas market, as our sales volume keeps growing we've put in continuous effort in the marketing and to enhance our brand recognition as a global leader in the urban mobility sector. In this quarter, the new product review videos has more than 7 million views on YouTube globally, but also actively participate in events and exhibitions worldwide making global appearance showcasing our products and brand values.

現在轉向海外市場，隨著我們的銷量不斷增長，我們在營銷方面不斷努力，以提高我們作為全球城市交通領域領導者的品牌知名度。本季度，新產品評論視頻在全球 YouTube 上的點擊量超過 700 萬，同時也積極參與全球活動和展覽，在全球範圍內展示我們的產品和品牌價值。

We participate in Electrify Expo, the largest electric vehicle festival in North America, in Los Angeles, and we will continue to be an main exhibitor at the Electrify Expo event throughout 2022.

我們參加了在洛杉磯舉行的北美最大的電動汽車節 Electrify Expo，我們將在整個 2022 年繼續成為 Electrify Expo 活動的主要參展商。

Our products also made its appearance during the Bike Shed Show in London, which is the Europe's biggest independent annual motorcycle show. Niu was among the few exhibitors that exhibited with the electric motorcycle, bringing diversity to the traditional gas-filled motorcycle. With those exhibition and event, we hope to gain global recognition in the industry.

我們的產品也在歐洲最大的獨立年度摩托車展倫敦 Bike Shed Show 上亮相。小牛是少數參展電動摩托車的參展商之一，為傳統的充氣摩托車帶來了多樣性。通過這些展覽和活動，我們希望在業界獲得全球認可。

Finally, I want to give a prospect on the coming quarters. In the first half of 2022, we faced great challenges, both from the rising raw material prices, especially in the lithium-ion batteries and from sudden COVID resurgence and lockdown in some of the major cities in China.

最後，我想對未來幾個季度進行展望。 2022 年上半年，我們面臨著巨大的挑戰，既來自原材料價格上漲，尤其是鋰離子電池價格上漲，也來自中國一些主要城市的 COVID 突然死灰復燃和封鎖。

This has impacted our sales volume, created pressure in our gross margin and also caused delay in our new product rollout, as mentioned earlier.

如前所述，這影響了我們的銷量，給我們的毛利率造成了壓力，還導致我們的新產品推出延遲。

For the China market, we remain cautious with the outlook, as we put the 2022 first half behind us and announced 3 new products, the SQi, the UQi+ and B2 in August, we have received very positive response from market media. Those new products will help to fuel the growth in late Q3 and Q4 2022.

對於中國市場，我們對前景保持謹慎，因為我們將 2022 年上半年拋在腦後，並在 8 月發布了 SQi、UQi+ 和 B2 3 款新產品，我們得到了市場媒體的非常積極的回應。這些新產品將有助於推動 2022 年第三季度末和第四季度的增長。

Having said that, we remain cautious with the sales rebound in Q3 due to unclear COVID impact and temporary slowdown in retail sales introduced by the lithium-ion battery price hike. The COVID resurgence in various cities has created a temporary impact on our sales with the most recent one in Hainan, which accounted to 4% of sales last year.

話雖如此，由於 COVID 影響不明以及鋰離子電池價格上漲導致零售銷售暫時放緩，我們對第三季度的銷售反彈保持謹慎。各個城市的新冠疫情復甦對我們的銷售額造成了暫時的影響，最近一次是在海南，佔去年銷售額的 4%。

The price of lithium-ion battery prices has caused the lithium-ion based scooter to price up across the industry. In Q2, we have increased our price -- product price by average 7%. Now the price increase on the lithium-ion batteries across the industry has also created a temporary lithium-ion scooter demand decline in some of the Tier 2 and Tier 3 cities, where the lead acid battery scooters remain to be a cheaper and more viable alternative.

鋰離子電池價格的上漲已經導致基於鋰離子的滑板車在整個行業中價格上漲。在第二季度，我們提高了價格——產品價格平均上漲了 7%。現在整個行業的鋰離子電池價格上漲也導致部分二三線城市的鋰離子滑板車需求暫時下降，鉛酸電池滑板車仍然是更便宜、更可行的替代品.

We have observed a temporary trend of user purchasing preferences switching from lithium-ion to lead acid scooters in some cities like (inaudible) However, we expect to returning demand as the price for lithium-ion battery stabilizes to the normal level and new regulations being more strictly enforced.

我們觀察到在一些城市（例如（聽不清）），用戶購買偏好從鋰離子電動滑板車轉向鉛酸滑板車的暫時趨勢。但是，隨著鋰離子電池價格穩定在正常水平以及新法規出台，我們預計需求將回升更嚴格地執行。

Now for the international market, we continue to be very optimistic with the sales growth, especially in the new category expansion in kick-scooters and e-bikes. For kick-scooters, besides the current K3 and the K2 series, we're introducing several new series in the second half of this year to complete the kick-scooter product offerings.

現在對於國際市場，我們繼續對銷售增長非常樂觀，特別是在踏板車和電動自行車的新品類擴張方面。對於滑板車，除了目前的 K3 和 K2 系列外，我們將在今年下半年推出幾個新系列，以完善滑板車的產品供應。

We also have e-bike models ready for rollout in the coming quarters in the U.S. and European markets. On the channel expansion, we're actively expanding our off-line sales network. By end of quarter 3, we plan to grow our point of sales to nearly 2,000 stores in U.S. and Europe, supporting a robust growth in the sales and preparing for the holiday season.

我們還準備在未來幾個季度在美國和歐洲市場推出電動自行車模型。在渠道拓展上，我們積極拓展線下銷售網絡。到第三季度末，我們計劃將我們的銷售點擴大到美國和歐洲的近 2,000 家門店，以支持銷售額的強勁增長並為假期旺季做準備。

We expect to see sales further ramp-up in the global market, as we expand our product portfolio and establish our sales network.

隨著我們擴大產品組合併建立銷售網絡，我們預計全球市場的銷售額將進一步增長。

Now I'll turn the call over to Fion, our CFO, to go through our financial results.

現在，我將把電話轉給我們的首席財務官 Fion，以查看我們的財務業績。

Thank you, Yan, and hello, everyone. Before going through the financials, we are pleased to present our inaugural ESG report on the IR website today, highlighting our ESG achievements made over the past several years.

謝謝Yan，大家好。在查看財務數據之前，我們很高興今天在 IR 網站上展示我們的首份 ESG 報告，重點介紹我們在過去幾年中取得的 ESG 成就。

While it details the company's performance in several key areas, including low carbon operations, green manufacturing, technology innovation, cooperate governance, care for employees and cooperation with partners and peers, valuing this report as the symbol of entering to the new chapter of ESG development for Niu, we have been acknowledging our responsibilities as a member of community, and we continue to make conscious contribution to society in a number of ways going forward.

詳細介紹了公司在低碳運營、綠色製造、科技創新、合作治理、關愛員工、合作夥伴合作等關鍵領域的表現，將本報告視為進入ESG發展新篇章的標誌對於小牛來說，我們一直承認我們作為社區成員的責任，並且我們將繼續以多種方式為社會做出有意識的貢獻。

While dedicating to economic growth, we also hope to enhance our communication with stakeholders to make a constructive input on environmental protection and low carbon economy promotion. Back to the financial results. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded excel format figures to our IR website for your reference.

在致力於經濟增長的同時，我們也希望加強與利益相關方的溝通，為環境保護和低碳經濟推廣做出建設性的投入。回到財務結果。請注意，我們的新聞稿包含您需要的所有數字和比較，我們還將 excel 格式的數字上傳到我們的 IR 網站供您參考。

As I review our financial performance, we are referring to the second quarter figures unless I say otherwise and that all monetary figures are RMB unless otherwise noted.

當我回顧我們的財務表現時，除非我另有說明，否則我們指的是第二季度的數字，除非另有說明，否則所有貨幣數字都是人民幣。

In the second quarter, we delivered mixed results. Total sales volume fell 17.4% to 209,000 units on a year-over-year basis, out of which 180,000 was from China market, representing a 26.7% decrease year-over-year.

在第二季度，我們的業績喜憂參半。總銷量為20.9萬輛，同比下降17.4%，其中中國市場18萬輛，同比下降26.7%。

We were more exposed to and adversely affected by lockdown in top-tier cities. Unlike peers, our retail network is a lot more concentrated among them, where strict control measures mostly happen. International markets contributed to robust growth by kick-scooters sales ramped up.

我們更容易受到一線城市封鎖的影響並受到不利影響。與同行不同，我們的零售網絡更加集中在其中，嚴格控制措施大多發生。國際市場推動了電動滑板車銷量的強勁增長。

Total sales volume reached nearly 29,000 units, increased by more than threefolds year-over-year among which kick-scooters sales volume doubled to 21,000 quarter-over-quarter, a record high since it's launched in the third quarter last year.

總銷量達到近29,000輛，同比增長逾三倍，其中滑板車銷量環比翻番至21,000輛，創去年第三季度上市以來的新高。

Meanwhile, e-motorcycles and e-moped sales volume reached by nearly 10% to more than [7,700] units. In the second quarter, our total revenue were RMB 828 million, down by 12.4% year-over-year, while branded scooter in the ASP increased more than 10% from 3,222 to 3,557 year-over-year.

與此同時，電動摩托車和電動助力車的銷量增長了近 10%，達到了超過 [7,700] 輛。第二季度，我們的總收入為人民幣8.28億元，同比下降12.4%，而品牌踏板車的平均售價則從3,222輛增長到3,557輛，同比增長超過10%。

To break down revenues by region, e-scooters revenue generated from China market was RMB 597 million, a year-over-year decrease of 21.2%, representing 8.3% of all the scooters revenue.

按地區劃分，中國市場的電動滑板車收入為人民幣5.97億元，同比下降21.2%，佔所有滑板車收入的8.3%。

ASP in China market reached 3309, 7.5% higher in year-over-year and 7.7% higher quarter-over-quarter, mainly due to increase in retail prices and a better product mix. Talking now about product mix, Niu U-Series and Gova premium series together accounted for 76.7% of total domestic sales volume this quarter, but Gova entry series only accounting for 23.3%, the lowest level quarterly since 2021.

中國市場平均售價達到 3309，同比增長 7.5%，環比增長 7.7%，主要是由於零售價格上漲和更好的產品組合。從產品結構來看，牛U系列和Gova高端系列本季度合計佔國內總銷量的76.7%，但Gova入門系列僅佔23.3%，為2021年以來的最低季度水平。

Overseas e-scooters revenue grew by 1.5x to RMB 146 million, out of which RMB 78 million were from e-motorcycling and e-moped and RMB 68 million were from kick-scooters. Blended ASP of international market decreased by 37.7% year-over-year to 5,147, but rose by 14% quarter-over-quarter. It is the combination of kick-scooters and e-mopeds.

海外電動滑板車收入增長1.5倍至人民幣1.46億元，其中電動摩托車和電動助力車收入人民幣7800萬元，腳踏車收入人民幣6800萬元。國際市場的混合平均售價同比下降 37.7% 至 5,147，但環比增長 14%。它是踏板車和電動助力車的結合。

If we look at them separately, both categories see year-over-year and quarter-over-quarter ASP increases. For e-mopeds and e-motorcycles, ASP rose by nearly 24% year-over-year to over RMB 10,000 due to a higher proportion of premium models.

如果我們分開來看，這兩個類別的 ASP 同比和環比都有所增長。電動助力車和電動摩托車的平均售價同比增長近 24%，達到 10,000 元以上，原因是高端車型占比較高。

For kick-scooters, the better product mix and increase of retail price both contributed to a much higher ASP. Revenues for accessories, spare parts and services were RMB 85 million, down 34.6% year-over-year from 13.7% to 10.2% of total revenues.

對於電動滑板車而言，更好的產品組合和零售價格的上漲都促成了更高的平均售價。配件、備件和服務收入為人民幣8500萬元，同比下降34.6%，從占總收入的13.7%降至10.2%。

This decrease was due to the same reasons we stated in the first quarter. Rising prices of battery and high freight costs have (inaudible) our international distributors from purchasing spare battery packs, and we perceive it may not recover in the near term.

這種下降是由於我們在第一季度所述的相同原因。電池價格上漲和高昂的運費讓我們的國際分銷商（聽不清）購買備用電池組，我們認為短期內可能無法恢復。

Gross margin of this quarter was 20.3%, 2.4 ppt lower on a year-over-year basis, but 1.2 ppt higher than the first quarter of this year. Quarter-on-quarter, retail price increase contributed to this 1.2 ppt margin increase against the elevating cost to inflation this year. While on a year-over-year basis, (inaudible) the 2.4 ppt decrease, 1.4 ppt was due to the cost pressure, including raw material cost inflation and hiking freight fees.

本季度毛利率為20.3%，同比下降2.4個百分點，但高於今年一季度1.2個百分點。與上一季度相比，零售價格上漲促成了今年通脹成本上升 1.2 個百分點的利潤率增長。雖然同比下降 2.4 個百分點（聽不清），但 1.4 個百分點是由於成本壓力，包括原材料成本上漲和運費上漲。

0.7 ppt was contributing to a higher proportion of kick-scooters sales, which have relatively lower margins and the remaining 0.3 ppt were from the decline of non-scooter sales contribution to total sales.

0.7 個百分點貢獻了較高比例的滑板車銷售，其利潤率相對較低，其餘 0.3 個百分點來自非滑板車銷售佔總銷售額的下降。

Our total operating expenses for the second quarter was RMB 173 million, 26.4% higher than the same period last year. Operating expenses as a percentage of revenue was 20.9% compared with 14.5% year-over-year.

第二季度總營業費用為人民幣1.73億元，同比增長26.4%。營業費用佔收入的百分比為 20.9%，而去年同期為 14.5%。

Going into details of our expenses. Total selling and marketing expenses was RMB 93 million, RMB 24 million higher year-over-year, mainly due the increase on depreciation of new stores opening from the last year. Research and marketing and development expenses were RMB 45 million, RMB 14 million higher than last year. The majority of the increase was due to RMB 10 million higher staff costs, including share-based compensation, RMB 3 million of higher design and testing expenses.

詳細了解我們的費用。銷售及營銷費用總額為人民幣9,300萬元，同比增加人民幣2,400萬元，主要是由於新開店折舊較上年增加所致。研發費用4500萬元，比上年增加1400萬元。大部分增長是由於增加了 1,000 萬元的員工成本，包括基於股權的薪酬，增加了 300 萬元的設計和測試費用。

As we are expanding our product portfolio, we will continue to invest in talent, professionals and other R&D resources to support our technology development. G&A expenses were RMB 36 million, RMB 1.2 million lower than last year. RMB 11 million foreign exchange gain offset by staff cost and provisions resulting in a decline in G&A.

隨著我們不斷擴大產品組合，我們將繼續投資於人才、專業人士和其他研發資源，以支持我們的技術開發。 G&A費用為3600萬元，比去年減少120萬元。 1100 萬元人民幣的匯兌收益被員工成本和撥備所抵消，導致 G&A 下降。

Total operating expenses excluding share-based compensation or non-GAAP expenses were RMB 157 million, increased by 25.3% year-over-year and representing 18.9% of revenue. Q2 net income was RMB 14.4 million compared with RMB 91.8 million in the second quarter of 2021.

不包括股權激勵或非公認會計原則費用的總營業費用為人民幣1.57億元，同比增長25.3%，佔收入的18.9%。第二季度淨利潤為人民幣 1440 萬元，而 2021 年第二季度為人民幣 9180 萬元。

The net income margin was 1.7% compared with 9.7% in the same period of 2021 and minus 5.1% in the first quarter of this year.

淨利潤率為 1.7%，而 2021 年同期為 9.7%，今年第一季度為負 5.1%。

Turning to our balance sheet and cash flow. We ended the quarter with RMB 861 million in cash, term deposits and short-term investments and RMB 189 million restricted cash. Our operating cash flow was negative RMB 33 million -- RMB 73 million, mainly due to a RMB 126 million increase in inventories of kick-scooters.

轉向我們的資產負債表和現金流。截至本季度末，我們擁有人民幣 8.61 億元的現金、定期存款和短期投資以及人民幣 1.89 億元的限制性現金。我們的經營現金流為負3300萬元-7300萬元，主要是由於滑板車庫存增加1.26億元。

Same as the way the consumer electronics from Chinese manufacturers are sold overseas, for kick-scooters, we established overseas warehouses, stock up locally to ensure a fast turnover when orders came in. Capital expenditures for the second quarter was RMB 15 million compared to RMB 83 million in the same period of last year.

和中國廠商的消費類電子產品在海外銷售一樣，滑板車方面，我們建立海外倉，本地備貨，保證訂單來貨快速周轉。二季度資本支出為1500萬元人民幣去年同期為8300萬。

Now let's turn to guidance. Since uncertainty remains over the pace of economic recovery, we expect the third quarter revenue to be in the range of RMB 1.17 billion to RMB 1.35 billion, a decrease of 5% to an increase of 10% year-over-year.

現在讓我們轉向指導。由於經濟復甦步伐仍存在不確定性，我們預計第三季度收入將在 11.7 億元至 13.5 億元之間，同比下降 5%至 10%。

For the full year volume guidance, we prudently adjusted the estimate to 1 million to 1.2 million units. Please be aware that this outlook is based on information available as of the date and reflects the company's current and preliminary expectations, which is subject to changes due to uncertainties relating to various factors such as the pace of COVID-19 pandemic recovery, among others.

對於全年銷量指導，我們謹慎地將估計調整為 100 萬至 120 萬台。請注意，此展望基於截至日期的可用信息，反映了公司當前和初步的預期，由於與 COVID-19 大流行恢復速度等各種因素相關的不確定性，該預期可能會發生變化。

Within that, we'll now open the call for any questions that you may have for us. Operator, please go ahead.

在此範圍內，我們現在將打開電話，詢問您可能對我們提出的任何問題。接線員，請繼續。

(Operator Instructions) There are no further questions. And I would like to hand over back to yourself for the closing remarks. Please go ahead.

（操作員說明）沒有其他問題。我想把結束語交還給你自己。請繼續。

Great. Thank you, operator, and thank you all for participating in 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.

偉大的。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。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。謝謝你。

That does conclude our conference for today. Thank you for participating. You may all disconnect. Have a nice day.

這確實結束了我們今天的會議。感謝您的參與。你們都可以斷開連接。祝你今天過得愉快。