小牛電動 (NIU) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Niu Technologies Fourth 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 speaker today, Wendy Zhao, Senior Investor Relations Manager of Niu Technologies. Please go ahead.

美好的一天，謝謝你的支持。歡迎來到小牛科技 2022 年第四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今天的演講者，小牛科技高級投資者關係經理 Wendy Zhao。請繼續。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the fourth 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 company's IR website as well, and a replay of the call will be available soon.

謝謝你，運營商。大家好。歡迎參加今天的電話會議，討論 Niu Technologies 2022 年第四季度的業績。收益新聞稿、公司介紹和財務電子表格已發佈在我們的投資者關係網站上。該電話會議也在公司的 IR 網站上進行網絡直播，很快就會重播電話會議。

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. 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.

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。公司的實際結果可能與今天公佈的結果存在重大差異。有關風險因素的更多信息包含在公司向美國證券交易委員會提交的公開文件中。公司不承擔任何更新任何前瞻性陳述的義務，除非法律要求。

Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains the 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 GAAP 財務指標的討論。新聞稿包含非 GAAP 財務措施的定義以及 GAAP 與非 GAAP 財務結果的調節。

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.

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

Thank you, everyone, for joining us on the call today. In the fourth quarter of 2022, our total sales volume was 138,279 units, representing a year-over-year decrease of 41.9%. Specifically, sales in the China market dropped by 42.5% year-over-year to about 118,000 units. The sales in the overseas market decreased by 38.7% to 20,000 units. Total revenue in Q4 was RMB 612 million, a decrease of 38% year-on-year. This results wrap up the entire financial year for 2022, which has been a year with significant challenges for us. The total sales volume was 831,000 units, represent a year-over-year decrease of 19.8%. Total revenue for the entire year was RMB 3.17 billion, a decrease of 14.5%.

謝謝大家今天加入我們的電話會議。 2022年第四季度，我們的總銷量為138,279輛，同比下降41.9%。具體而言，中國市場的銷量同比下降 42.5% 至約 118,000 輛。海外市場銷量下降38.7%至2萬輛。 Q4總收入為人民幣6.12億元，同比下降38%。這一結果涵蓋了 2022 年的整個財政年度，這對我們來說是充滿重大挑戰的一年。總銷量為83.1萬輛，同比下降19.8%。全年總收入為人民幣31.7億元，下降14.5%。

Now particularly, our operations in the China market faced headwinds from uncertainty stemming from the COVID resurgence and the increase in e lithium-ion battery prices starting in Q2 2022. The total sales in the China market dropped by 28% year-over-year to about 710,000 units. Our total revenue in the China market dropped about 19% to about RMB 2.36 billion in 2022.

特別是現在，我們在中國市場的業務面臨著 COVID 復甦帶來的不確定性以及從 2022 年第二季度開始的鋰離子電池價格上漲的不利因素。中國市場的總銷售額同比下降 28% 至約 710,000 台。 2022 年，我們在中國市場的總收入下降約 19% 至約人民幣 23.6 億元。

The COVID resurgence not only disrupt the market demand, but also delayed the launch of several key products, due to the month-long lockdown in Shanghai, where our R&D center is located. We're unable to release several key products until September in 2022, causing us to miss the peak sales period.

由於我們的研發中心所在的上海長達一個月的封鎖，新冠疫情的捲土重來不僅擾亂了市場需求，還推遲了幾款關鍵產品的發布。我們要到 2022 年 9 月才能發布幾個關鍵產品，導致我們錯過了銷售高峰期。

Apart from the COVID disruptions, we have also faced headwinds from lithium battery price hikes. The raw material price for the lithium-ion battery experienced a sharp increase for nearly 50% since March 2022, significantly slowed down the penetration rate of lithium-ion battery electric 2-wheelers throughout the China market. The price hike had a more significant impact on us, since the majority of our e-scooters use lithium-ion batteries.

除了 COVID 中斷外，我們還面臨鋰電池價格上漲的不利因素。 2022年3月以來，鋰離子電池原材料價格大幅上漲近50%，大大減緩了鋰離子電動兩輪車在中國市場的滲透率。價格上漲對我們的影響更大，因為我們的大多數電動滑板車都使用鋰離子電池。

To maintain a healthy gross margin, we had to increase our price by average of 7% to 10%. And to optimize our product portfolio towards the premium product started in Q2 of 2022. As a result, except the quarter 1 of 2022 where we achieved year-over-year growth, the sales volume for quarter 2, Q3 and Q4 in 2022 have decreased by 25% to 40% year-over-year due to the lithium price impact.

為了保持健康的毛利率，我們不得不將價格平均提高 7% 至 10%。並從 2022 年第二季度開始向高端產品優化我們的產品組合。因此，除了 2022 年第一季度實現同比增長外，2022 年第二季度、第三季度和第四季度的銷量均有所下降由於鋰價格的影響，同比增長 25% 至 40%。

Now coming to our international market has experienced a significant growth in 2022 with a remarkable 142% year-over-year increase in the unit sales to about 121,000 units, a 51% year-on-year growth in scooter revenue to RMB 493 million. The micro mobility type sector, specifically the kick scooters, was the main driving force behind this surge, accounting for more than 100,000 units in sales. However, the electric 2-wheeler category saw a 46% decrease in sales, selling a total of 18,000 units in 2022. The drop in the electric 2-wheeler sales was mainly due to the shutdown of the share market as most of the share operators did not raise additional capital for expansion. The loss in share market led to a decline in sales of over 11,000 units, which accounted for nearly 70% of total sales drop in the electric 2-wheeler market overseas.

現在來到我們的國際市場，在 2022 年經歷了顯著增長，單位銷量同比增長 142% 至約 121,000 輛，滑板車收入同比增長 51% 至人民幣 4.93 億元。微型移動類行業，特別是滑板車，是這一激增背後的主要推動力，銷量超過 100,000 輛。然而，電動兩輪車類別的銷量下降了 46%，到 2022 年共售出 18,000 輛。電動兩輪車銷量的下降主要是由於大多數共享運營商關閉了股票市場沒有為擴張籌集額外資金。股市下跌導致銷量下降11,000多輛，佔海外電動兩輪車市場總銷量下降的近70%。

Now our overseas market, like the China market also face challenges from the lithium battery price hype. The increase in lithium battery price, coupled with the rising of euro and the U.S. dollar exchange rate necessitated us to increase the selling price by an average of 22% in the European market, where we sold 72 -- 70% of our electric 2-wheelers purposely. The increased selling price had impact on our sales in electric motorcycles in the consumer market, particularly in Europe.

現在我們的海外市場和中國市場一樣，也面臨鋰電池價格炒作的挑戰。鋰電池價格的上漲，加上歐元和美元匯率的上漲，使我們不得不將歐洲市場的售價平均提高 22%，我們在那裡銷售了 72-70% 的電動 2-故意的惠勒斯。銷售價格上漲影響了我們在消費市場（尤其是歐洲）的電動摩托車銷售。

Now as we reflect on the past year, the shift in market dynamics has significant negative impacts on our operations. In China, the surge of lithium-ion battery prices has reversed the lithium-ion penetration in the electric bicycle and motorcycle market and the rendered our entry-level products, representing 35% of our sales volume in 2021 and competitive in this market.

現在，當我們回顧過去的一年時，市場動態的轉變對我們的運營產生了重大的負面影響。在中國，鋰離子電池價格的飆升扭轉了鋰離子在電動自行車和摩托車市場的滲透，並使我們的入門級產品在 2021 年占我們銷量的 35%，並在該市場具有競爭力。

In the international market, besides the lithium-ion battery increase, the shutdown of share market has essentially 0 to 1/3 of our electric 2-wheeler sales volume or more than half our electric 2-wheeler revenue. We recognized that both of the shift may not be temporary and that we start to make strategic adjustments to adapt to the changing market conditions in 2022. Those adjustments did take time and resulting in some short-term setbacks in 2022, but it would create sustainable quality growth in the long run.

在國際市場上，除了鋰離子電池增長外，股票市場的關閉基本上占我們電動兩輪車銷量的0到1/3或我們電動兩輪車收入的一半以上。我們認識到這兩種轉變可能都不是暫時的，我們開始進行戰略調整以適應 2022 年不斷變化的市場條件。這些調整確實需要時間，並導致 2022 年出現一些短期挫折，但它將創造可持續發展長期有質量的增長。

First, in product development in the China market, we have shifted our R&D focus to premium product lines, i.e., the Niu products and the high-end goal product lines in 2022. In 2021, we're mainly focused on entry-level products to the mass market, taking advantage of a low lithium-ion battery cost. However, although those entry level products contributed a onetime revenue surge, it had a negative impact on gross margin once the lithium battery price increases. Additional customer recognition suffered due to the short drive range and the brand image as well.

首先，在中國市場的產品開發上，我們已經將研發重點轉移到高端產品線，即2022年的小牛產品和高端目標產品線。2021年，我們主要專注於入門級產品面向大眾市場，利用低廉的鋰離子電池成本。然而，雖然這些入門級產品一度貢獻了收入激增，但一旦鋰電池價格上漲，就會對毛利率產生負面影響。由於較短的行駛里程和品牌形象，額外的客戶認可度受到影響。

In 2022, we pivoted our product development strategy to focus back on premium, mid-end products. We further introduced graphite lead-acid battery solutions for our mid-end product lines for both electric bicycles and motorcycles, which allowed us to improve dry range at low cost. Our high-end product lines enabled us to improve our margins to strengthen our brand position. And our mid-range product lines enable us to achieve volume sales and it's gain recognition from the mass market with a product that combined design aesthetics and the practically functionality at an affordable prices.

2022 年，我們調整了產品開發戰略，將重點重新放在高端、中端產品上。我們進一步為我們的電動自行車和摩托車的中端產品線引入了石墨鉛酸電池解決方案，這使我們能夠以低成本提高幹續航里程。我們的高端產品線使我們能夠提高利潤率，從而鞏固我們的品牌地位。我們的中檔產品線使我們能夠實現批量銷售，並以實惠的價格將設計美學與實用功能相結合的產品獲得大眾市場的認可。

To highlight our product development achievements so far in 2022, I'd like to mention the long-term revolution that I -- SQi and a new UQi+ in the high-end market. The SQi is our product that being the most high-end electric bicycle market. It boost the innovative design and the cutting-edge material technologies, priced at RMB 9,000-plus. The (inaudible) model cycle like SQi was well received by the market with customers waiting for 5 to 6 months for deliveries.

為了突出我們在 2022 年迄今為止的產品開發成就，我想提一下我在高端市場的長期革命——SQi 和新的 UQi+。 SQi是我們最高端的電動自行車市場產品。創新設計和尖端材料技術，售價9000元以上。像 SQi 這樣的（聽不清）模型週期受到市場的歡迎，客戶需要等待 5 到 6 個月才能交貨。

The new UQi+ is the newest addition to our overtime most popular U series. The new UQi+ has been enhanced with the improved light design, smart controls, ready economics and additional personalization functionalities that UQi+ has garnered significant attention on social media and generate a widespread trend, since its launch with nearly 50,000 units ordered in the first month alone. This positive reception is a testament to our brand leadership at the capability and product creation, and we have more exciting products planned for Q2, 2023.

新的 UQi+ 是我們加班最受歡迎的 U 系列的最新成員。全新的 UQi+ 憑藉改進的燈光設計、智能控制、便捷的經濟性和額外的個性化功能得到增強，自推出以來，UQi+ 在社交媒體上獲得了極大的關注並產生了廣泛的趨勢，僅在第一個月就訂購了近 50,000 台。這種積極的反響證明了我們在能力和產品創造方面的品牌領導地位，我們計劃在 2023 年第二季度推出更多令人興奮的產品。

Now on the mid-end product line, we introduced the V2 and the G6 series in 2022. V2 is the electric bicycle with a simplistic design style, but it was the large form factor. It's about 10% to 30% larger than our popular G2 and F2, which were released in 2022 and -- 2020 and 2021. The G6 is a live electric motorcycle design with upgraded battery capacity with a range of over 100-kilometer on single charge with graphite led-acid batteries.

現在在中端產品線上，我們在2022年推出了V2和G6系列。V2是一款設計風格簡單的電動自行車，但它是大尺寸的。它比我們在 2022 年以及 2020 年和 2021 年發布的廣受歡迎的 G2 和 F2 大了大約 10% 到 30%。G6 是一款帶電的電動摩托車設計，具有升級的電池容量，單次充電續航里程超過 100 公里用石墨鉛酸電池。

Even though all those products we introduced late in September, which missed the peak season with the exception of G6, the newly introduced product quickly represent more than 70% of sales during the fourth quarter in just 3 months after launch. This also helped us of our ASP to increase by 15% quarter-over-quarter in Q4, 2022. This was also probably design our strategic adjustment work by focusing on the premium and mid-end products. We're gradually mitigating the impact of lithium-ion battery cost hikes and start to reclaim the gross margins.

儘管我們在 9 月下旬推出的所有產品都錯過了除 G6 之外的旺季，但新推出的產品在推出後僅 3 個月內就迅速占到第四季度銷售額的 70% 以上。這也幫助我們的 ASP 在 2022 年第四季度環比增長 15%。這也可能是我們通過專注於高端和中端產品來設計我們的戰略調整工作。我們正在逐步減輕鋰離子電池成本上漲的影響，並開始收回毛利率。

Now fueled by the premium product introduction of SQi, new UQi+ but also pivot our marketing strategy to be product-focused and user-centric. This allowed us to get a better ROI on our marketing investments and also help to continue enhancing the brand.

現在，在 SQi 和新 UQi+ 優質產品推出的推動下，我們的營銷策略也轉向以產品為中心和以用戶為中心。這使我們的營銷投資獲得了更好的投資回報率，也有助於繼續提升品牌。

Just to list a few example, in 2022, the marketing campaign surrounding the launch of our new products of SQi and the UQi+ resulting in a total of 1.4 billion views across all platforms. We also launched a new innovative ambassador program according to our user-centric marketing strategy and invite 40-plus new users, who are also influencers to cocreate with Niu and to host local events. During the 2022 World Cup, we mobilized our ambassadors for World Cup seeing new scooter shows that seems -- scooters shows demonstrate scooters, customized appended with elements from the World Cup. Those demonstrated scooters gained a total of 3.7 million views across China's social media platform in just 2 weeks.

僅舉幾個例子，在 2022 年，圍繞我們 SQi 和 UQi+ 新產品發布的營銷活動在所有平台上產生了 14 億的總瀏覽量。我們還根據以用戶為中心的營銷策略推出了新的創新大使計劃，並邀請了 40 多位新用戶，他們也是有影響力的人與小牛共同創造並舉辦當地活動。在 2022 年世界杯期間，我們動員了我們的世界杯大使，觀看了新的滑板車錶演——滑板車錶演展示了滑板車，定製附加了世界杯的元素。這些展示的滑板車在短短 2 週內在中國社交媒體平台上獲得了 370 萬次瀏覽。

Now in our international market, our strategy has been diversified our product portfolio beyond the electric 2-wheelers that expand the geographic regions beyond the main European market for the past 2 years. This strategy demonstrated early success in 2022 over the growth in the new products, and new markets has only partially offset downturns in the electric 2-wheeler share market and the upfront investment including in the new product and new market created red line in the process.

現在在我們的國際市場上，我們的戰略已經使我們的產品組合多樣化，在過去 2 年中，電動兩輪車將地理區域擴展到歐洲主要市場之外。這一戰略在 2022 年通過新產品的增長取得了初步成功，新市場僅部分抵消了電動兩輪車份額市場的低迷，包括新產品和新市場在內的前期投資在此過程中形成了紅線。

On the product portfolio expansion, we have achieved early success in 2022 in the electric kick scooters. We launched the category in the last quarter of 2021 and has since strategically drew our kick scooter product mix to enter this high grade established brand awareness in the market, we start with a high-end product price at $800 and $900 and gradually introduce mid- and the low-end product with price range from $300 to $500. This strategy caused a slow volume ramp-up initially, but help with the brand building in the new-entry categories.

在產品組合擴展方面，我們在 2022 年的電動滑板車領域取得了初步成功。我們在 2021 年最後一個季度推出了該類別，此後戰略性地繪製了我們的滑板車產品組合，以進入這個在市場上已建立的高端品牌知名度，我們從 800 美元和 900 美元的高端產品價格開始，逐步推出中端產品以及價格從 300 美元到 500 美元不等的低端產品。這種策略最初導致銷量增長緩慢，但有助於在新進入類別中建立品牌。

Niu was awarded the Riders Choice award 2023 as the best scooter company presented by Micromobility Award. Our high-end product, K3, also received coverage from some of the top tech media outlets, such as Tom's Guide, TechRadar and [Ex Taca].

Niu 作為 Micromobility Award 頒發的最佳踏板車公司，榮獲 2023 年 Riders Choice 大獎。我們的高端產品 K3 也獲得了一些頂級科技媒體的報導，例如 Tom's Guide、TechRadar 和 [Ex Taca]。

In terms of sales channel, we also took a gradual approach with first launched the kick scooter category, focusing on online channels, like Amazon. Our kick scooter models ranked #1, #2 on Amazon bestseller list in multiple countries in Europe and North America during 2022 Amazon Prime Day campaigns. Ready with the momentum from the online channels, we started to enter the offline primary sales network like Media Mart in Europe and the Best Buy in the U.S. towards the second half of 2022. We believe those approach, though slow at first, with the solid foundation for sustainable growth in 2023 and beyond.

在銷售渠道方面，我們也採取循序漸進的方式，首先推出滑板車品類，專注於亞馬遜等在線渠道。在 2022 年亞馬遜 Prime Day 活動期間，我們的滑板車型號在歐洲和北美多個國家/地區的亞馬遜暢銷書排行榜上排名第一、第二。借助在線渠道的勢頭，我們開始進入線下主要銷售網絡，如歐洲的 Media Mart 和美國的 Best Buy，直至 2022 年下半年。我們相信這些方法雖然起初緩慢，但隨著堅實的為 2023 年及以後的可持續增長奠定基礎。

Now on the regional expansion part in the electric 2-wheeler sector, we see the opportunity that growth in the market in the Southeast Asian market, mainly in Thailand, Indonesia and Nepal. We continued our effort in expanding the Southeast Asian market as we hope to grow the trend of foundation from the traditional gas fuel 2-wheelers to electric 2-wheelers. In those high-growth Southeast Asian market, we spend a number of stores and working with local partners with a wide range of sales network.

現在在電動兩輪車領域的區域擴張部分，我們看到了東南亞市場增長的機會，主要是泰國、印度尼西亞和尼泊爾。我們繼續努力拓展東南亞市場，因為我們希望將傳統的燃氣兩輪車發展為電動兩輪車的基礎趨勢。在那些高增長的東南亞市場，我們開設了多家門店並與當地合作夥伴合作，擁有廣泛的銷售網絡。

In 2022, during the G20 Summit in Bali, Niu product provided electric scooters to be used by Indonesian national police officials to support the local government's effort to green transportation. Now as a result of those efforts, the electric 2-wheeler sales in the Southeast Asia market increased from nearly 60% year-over-year.

2022年，在巴厘島G20峰會期間，小牛產品為印尼國家警察提供電動滑板車，支持當地政府綠色交通。現在，由於這些努力，東南亞市場的電動兩輪車銷量同比增長近 60%。

Lastly, as advocate of sustainable living, we're committed to providing our customers with eco-friendly smart other vehicles that help reduce our impact to the environment. 2022 also marked another year of our dedication to promote the development in the entire 2-wheeler industry in environmental-friendly direction. We released our first inaugural ESG report this year. As of today, the cumulative riding data reached a 16 billion kilometers, which means reducing 4 billion kilograms of carbon emissions compared with a few vehicles.

最後，作為可持續生活的倡導者，我們致力於為我們的客戶提供環保的智能其他車輛，以幫助減少我們對環境的影響。 2022年也是我們致力於推動整個兩輪車行業向環保方向發展的又一年。我們今年發布了第一份 ESG 報告。截止到今天，累計騎行數據達到了160億公里，這意味著與幾輛汽車相比，減少了40億公斤的碳排放。

To further spread the idea of building green futures through technology, we launched a review, a global sustainability initiative during our Earth Day campaign in 2022. The campaign included a global Earth Day cleanup, which mobilizes new users across four continents to clean up trash in public areas, including in places like Valley and tour opened at Guatemala.

為了進一步傳播通過技術建設綠色未來的理念，我們在 2022 年地球日活動期間發起了一項全球可持續發展倡議審查。該活動包括全球地球日清理活動，動員四大洲的新用戶清理垃圾公共區域，包括在 Valley 和 Tour 等地開放的危地馬拉。

Sustainability has been the core at our brand since its inception and we take pride in making positive impact on the journey of sustainability with our users.

自品牌成立以來，可持續發展一直是我們品牌的核心，我們為與用戶一起對可持續發展之旅產生積極影響而感到自豪。

Now that 2022 is behind us, we are confident to regain growth in 2023 with a strategic adjustment we made in 2022, starting to have a positive impact in Q2, 2023. When compared to the pre-price adjustment in Q1, 2022 on a year-over-year basis, our Q1 2023 still shows a negative impact due to the price increase and delay product launches and we hope to recover into Q2.

現在 2022 年已經過去，我們有信心通過我們在 2022 年進行的戰略調整在 2023 年恢復增長，並開始在 2023 年第二季度產生積極影響。與一年前的 2022 年第一季度價格調整相比-與去年同期相比，由於價格上漲和產品發布延遲，我們的 2023 年第一季度仍顯示出負面影響，我們希望恢復到第二季度。

Now with the strategy in product development and branding marketing, and the sales channel expansion in place, we believe we are able to regain growth in 2023 as the whole year for both China and the overseas market.

現在有了產品開發和品牌營銷的戰略，以及銷售渠道的擴張，我們相信我們能夠在 2023 年恢復中國和海外市場的全年增長。

Now particularly in the China market, we'll drive quality growth with new products in the premium mid-end segment to continue our leadership. Product focused on this user-centric marketing to optimize our ROI and the retail efficiency improvement to drive the same-store growth in the 3,000-plus franchise stores.

現在，特別是在中國市場，我們將通過高端中端市場的新產品推動質量增長，以繼續我們的領導地位。產品專注於這種以用戶為中心的營銷，以優化我們的投資回報率和提高零售效率，以推動 3,000 多家特許經營店的同店增長。

On the product side, we have a product development plan for a few key product in China, starting with Q2 this year. Those product lines will focus on premium new series that high end Gova series, covering from high-performance motorcycles, like motorcycles to premium and mid-end China electric bicycles with powertrain platform from NCM lithium battery, or SD lithium battery to graphite lead-acid batteries. We started those product development in 2022, and they will be released on schedule in Q2 2023.

在產品方面，從今年第二季度開始，我們在中國有幾個重點產品的產品開發計劃。這些產品線將專注於高端Gova系列的高端新系列，涵蓋從摩托車等高性能摩托車到高端和中端中國電動自行車，動力總成平台從NCM鋰電池或SD鋰電池到石墨鉛酸電池。我們在 2022 年開始了這些產品的開發，它們將在 2023 年第二季度按計劃發布。

Now driven by the unique and differentiated product propositions, we continue to focus on building Niu as a leading lifestyle brand for urban mobility, and this company extend the beyond just our product. Besides the product-centric and user-centric marketing strategy, we also plan to expand our co-branding initiatives with brands with similar velocities in lifestyle.

現在，在獨特和差異化的產品主張的推動下，我們繼續專注於將小牛打造成為城市交通的領先生活方式品牌，而這家公司不僅僅局限於我們的產品。除了以產品為中心和以用戶為中心的營銷策略外，我們還計劃擴大我們與生活方式速度相似的品牌的聯合品牌計劃。

In 2022, we successfully launched collaborations with leading global lifestyle brands such like Razer and Diesel with co-branded product designed with each partner, and we plan to continue success model in 2022.

2022 年，我們成功啟動了與 Razer 和 Diesel 等全球領先生活方式品牌的合作，並與每個合作夥伴設計了聯名產品，我們計劃在 2022 年延續成功模式。

Now on the sales channel, we have launched initiatives to focus driving same-store sales improvements that in Q4 2022, which recognize offline stores as a crucial center to pilot exhibition, test drive and aftersales services. We are supporting the offline store, will sells the lead generated from our online. And with this O2O approach, we're able to provide better pre and after-sale experience for our users and to sales number for our retail stores.

現在在銷售渠道上，我們已經推出了一些舉措，重點推動 2022 年第四季度的同店銷售改善，將線下門店視為試點展示、試駕和售後服務的重要中心。我們支持線下商店，將銷售我們在線產生的線索。通過這種 O2O 方法，我們能夠為我們的用戶提供更好的售前和售後體驗，並提高我們零售店的銷售額。

We have also launched a project to optimize and standardize store layout and the marketing materials for each stores to create a consistent, high-quality brand image. Additionally, we have a digitalization program to help the stores showcase their product and building platforms, resulting better traffic and potential conversions. Those initiatives will aid over 3,000 stores in achieving health same-store growth.

我們還啟動了優化和標準化門店佈局和每家門店營銷材料的項目，以打造一致、優質的品牌形象。此外，我們有一個數字化計劃來幫助商店展示他們的產品和構建平台，從而帶來更好的流量和潛在的轉化率。這些舉措將幫助 3,000 多家商店實現健康同店增長。

Now for the international market, we'll remain laser focused with our diversification strategy in both product portfolio and geographic expansions. This diversification effort in the last 2 years will start to contribute significantly in growth in both the revenue and the profit.

現在，對於國際市場，我們將繼續專注於我們在產品組合和地域擴張方面的多元化戰略。過去 2 年的這種多元化努力將開始對收入和利潤的增長做出重大貢獻。

First, on the micromobility category, it has been a high growth in 2022 with near 7x volume growth in 2022. We'll continue the superfast growth of micromobility segment with comprehensive product portfolio building in 2022, and establish a sales channels both online and offline, with the retail pilots like Best Buy and the Media Mark.

首先，在微出行品類上，2022 年實現了高增長，2022 年銷量增長近 7 倍。我們將在 2022 年繼續微出行領域的超高速增長，建立全面的產品組合，並建立線上線下的銷售渠道，以及百思買和 Media Mark 等零售試點。

With the comprehensive kick scooter product mix layout in 2022, we also plan to keep refreshing our product offerings in 2023 to enrich the product options for our users.

隨著2022年全面的滑板車產品組合佈局，我們還計劃在2023年不斷更新我們的產品系列，以豐富我們用戶的產品選擇。

Now besides the kick scooters, we also recently officially launched our first e-bike product, BQi C3 to the U.S. market in March 2023. The BQi C3 is a 2-battery e-bike with two lightweight swappable batteries with maximum riding distance of over 90 miles. Now with the established sales network we built up last year, the BQi C3 will be sold in 100-plus Best Buy stores along with the online channels in the United States and has planned to be sold within Canada in the near future.

現在除了踏板車，我們最近還於 2023 年 3 月正式向美國市場推出了我們的第一款電動自行車產品 BQi C3。BQi C3 是一款 2 電池電動自行車，帶有兩個輕型可更換電池，最大騎行距離超過90 英里。現在，隨著我們去年建立的成熟銷售網絡，BQi C3 將在美國的 100 多家 Best Buy 商店和在線渠道中銷售，併計劃在不久的將來在加拿大銷售。

Now having invested in the micromobility market since 2020, we are confident that foundation will layout in the last 3 years in both brand building, product portfolio and the channel building will drive the accelerated growth in 2023 and to make substantial contributions in both revenue and the profit.

現在從2020年開始投資微出行市場，我們有信心基金會在過去3年在品牌建設、產品組合和渠道建設上的佈局將推動2023年的加速增長，並在收入和收入方面做出實質性貢獻。利潤。

Now in the electric 2-wheeler categories, we had a setback due to the shutdown of share operation market in 2022. We expect to be on the fast growth path again in 2023 through product expansion and geographic expansion.

現在在電動兩輪車類別中，由於 2022 年共享運營市場的關閉，我們遇到了挫折。我們預計將在 2023 年通過產品擴張和地域擴張再次走上快速增長的道路。

On the product side, we plan to do all the hyper performance new products such as quite electric motorcycle, RQi in order to compete in the electric 2-wheeler product offerings, capturing the growth demand in Europe.

在產品方面，我們計劃推出所有超高性能新產品，例如 quite electric motorcycle、RQi，以便在電動兩輪車產品供應中競爭，抓住歐洲的增長需求。

On the geographic expansion in Southeast Asia, to build on the growth we have achieved in 2022, we plan to launch the battery swapping enabled products and solutions by partnering with several key operators in the countries like Indonesia, Thailand. Those trials are already underway, and we expect this will finally open up the Southeast Asian market for us, which hosted more than 20 million petrol motorcycle sales annually.

在東南亞的地域擴張方面，為了鞏固我們在 2022 年取得的增長，我們計劃通過與印度尼西亞、泰國等國家的幾家主要運營商合作，推出支持電池交換的產品和解決方案。這些試驗已經在進行中，我們預計這最終將為我們打開東南亞市場，該市場每年銷售超過 2000 萬輛汽油摩托車。

Now, as we are implementing those growth strategies for both China and international market, we expect our total sales volume to grow to 1 million to 1.2 million units in 2023, representing a 20% to 45% growth compared with 2022.

現在，隨著我們正在為中國和國際市場實施這些增長戰略，我們預計到 2023 年我們的總銷量將增長到 100 萬至 120 萬輛，與 2022 年相比增長 20% 至 45%。

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

現在，我將把電話轉給我們的首席財務官 Fion，以了解我們的財務結果。

Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and the comparisons you need. And we have also uploaded Excel format figures to our IR website for your easy reference. As I review our financial performance, we are referring to the fourth quarter figures unless I say otherwise, and all the monetary figures are in RMB, if not specified.

謝謝嚴老師，大家好。請注意，我們的新聞稿包含您需要的所有數據和比較。我們也已將 Excel 格式的數據上傳到我們的 IR 網站，供您參考。在我回顧我們的財務業績時，除非另有說明，否則我們指的是第四季度的數據，如果沒有特別說明，所有貨幣數據均以人民幣為單位。

As Yan just mentioned, we have been facing multiple challenges in 2022. Our total sales volume for the fourth quarter was 138,000 units, decreased by 42% compared to the same period of last year. Specifically speaking, China market sales volume was 118,000 units, and the overseas market was 20,000 units.

正如嚴剛所說，我們在2022年面臨著多重挑戰。我們第四季度的總銷量為138,000輛，與去年同期相比下降了42％。具體而言，中國市場銷量為11.8萬輛，海外市場銷量為2萬輛。

In the overseas market, we managed to maintain a decent year-over-year volume growth for kick scooters, up 15% to 17,000 units. For the full year 2022, the total sales volume was 832,000 units, including 711,000 units from China market and 121,000 units from overseas markets. Although sales volume from China market as a whole decreased by 28% year-over-year and Niu and Gova premium series, together, only dropped by 10%.

在海外市場，我們成功地保持了滑板車銷量同比增長 15% 至 17,000 輛。 2022年全年總銷量為83.2萬輛，其中中國市場71.1萬輛，海外市場12.1萬輛。儘管來自中國市場的整體銷量同比下降了 28%，而 Niu 和 Gova 高端系列加起來僅下降了 10%。

The overseas market showed strong growth momentum due to the kick scooter sales increasing up to 102,000 units in aggregate and the e-moped sales volume decreased by around 45%, mainly due to the termination of two b sharing orders, as Yan just mentioned.

海外市場增長勢頭強勁，滑板車累計銷量增至10.2萬輛，電動助力車銷量下降約45%，主要是嚴剛提到的兩個b共享訂單終止。

The total revenue in the fourth quarter was RMB 612 million, decreased by 38% compared to the same period last year. To break down the scooter revenues by raging, the scooter revenues from China markets were RMB 447 million, down by 35% since we began to execute a strategy to refocus on the premium and mid-end segments. The Gova entry series only took 5% of the total domestic volume in the fourth quarter.

第四季度總收入為人民幣6.12億元，同比下降38%。以熊熊細分滑板車收入，來自中國市場的滑板車收入為人民幣4.47億元，自我們開始執行重新聚焦高端和中端細分市場的戰略以來下降了35%。 Gova入門系列第四季度僅佔國內總量的5%。

As a result, ASP in China market reached RMB 378,314 higher on a year-over-year basis. The overseas scooter revenues, including kick scooters, e-moped and e-motorcycles were RMB 87 million. Blended scooter ASP of the overseas market was RMB 4,300, decreased by 1/4 year-over-year due to a higher sales contribution of kick scooter with lower ASP.

因此，中國市場的平均售價同比上漲 378,314 元人民幣。包括滑板車、電動助力車和電動摩托車在內的海外滑板車收入為人民幣 8700 萬元。海外市場混合動力滑板車平均售價為人民幣 4,300 元，同比下降 1/4，這是由於滑板車的銷售貢獻較高但平均售價較低。

However, the kick scooter's ASP year-over-year increased more than 50%; quarter-over-quarter, 10% due to the higher proportion of high-end kick scooters like the K3 Series priced at USD 800 to USD 900.

然而，滑板車的平均售價同比增長超過 50%；環比增長 10%，原因是價格在 800 美元至 900 美元之間的 K3 系列等高端滑板車所佔比例較高。

Accessories, spare parts and services revenue were RMB 79 million, decreased by 31% due to the battery pack sales reduction from overseas shared mobility operators. For the full year 2022, our total sales -- total revenue decreased by 14.5% to RMB 3.2 billion. The China scooter revenue, as a whole, saw a 19% year-over-year decline. However, the mid- to high-end products only dropped by 6%. And the international kick scooter -- international scooter revenues increased by 15% to RMB 494 million. The total international revenue, including scooters, accessories, spare parts and services contributed to 18.5% of the total revenue due to the fast growth of kick scooters.

配件、備件和服務收入為人民幣 0.79 億元，下降 31%，原因是海外共享出行運營商的電池組銷售減少。 2022 年全年，我們的總銷售額——總收入下降了 14.5% 至人民幣 32 億元。中國滑板車收入整體同比下降19%。而中高端產品僅下降了6%。而國際滑板車——國際滑板車收入增長15%至4.94億元人民幣。由於滑板車的快速增長，包括踏板車、配件、備件和服務在內的國際總收入佔總收入的 18.5%。

Let's look at the ASP in 2022. The overall scooter ASP was 3,432 versus 3,134, a 9.5% increase. The domestic scooter ASP 3,322, a 12% increase, among which half is due to the better premium product mix and the rest is due to the price increase. International blended scooter ASP is 4,079 versus 6,597, a decrease compared to the last year, since the proportion of kick scooters to ramp up 10x. While both e-motorcycles and ASP and the kick scooter's ASP increased 17% and 13%, respectively.

讓我們看看 2022 年的平均售價。整體踏板車平均售價為 3,432 比 3,134，增長 9.5%。國產滑板車ASP 3,322，增長12%，其中一半是由於優質產品結構更好，其餘是由於價格上漲。國際混合滑板車平均售價為 4,079 對 6,597，與去年相比有所下降，因為滑板車的比例增加了 10 倍。而電動摩托車和 ASP 以及踏板車的 ASP 分別增長了 17% 和 13%。

The gross margin for the fourth quarter was 22.5%, a 0.1 ppt lower than the same period of last year and 0.4 ppt higher than the previous quarter. For the year ended December 31, 2022, the gross margin was 21.1% compared to 21.9% on an annual basis. The better product mix in the Chinese market brought up gross margin by 1.2 ppt, while the battery cost hikes and the higher sales contribution of kick scooters dragged down the gross margin by 2 ppt. Specifically, the gross margin from China markets increased by 1.5 ppt.

第四季度毛利率為22.5%，同比下降0.1個百分點，環比上升0.4個百分點。截至 2022 年 12 月 31 日止年度，毛利率為 21.1%，而年度毛利率為 21.9%。中國市場更好的產品組合使毛利率提高了 1.2 個百分點，而電池成本上漲和滑板車更高的銷售貢獻拖累了毛利率 2 個百分點。具體而言，中國市場的毛利率上升了 1.5 個百分點。

Talking about the operating expenses. The fourth quarter OpEx was RMB 196 million, higher than the RMB 7 million higher than the same period of last year, while the OpEx amounts almost stay at the same level. The OpEx as a percentage of revenue rose from 19% to 32%, mainly due to a lower revenue base. And the selling and marketing expenses were RMB 107 million, RMB 8 million higher year-over-year. Out of that RMB 8 million increase, depreciation and amortization expenses of the new stores were RMB 6 million. The overseas selling expenses increased by RMB 24.5 million as we continue to expand our footprint to fuel growth of kick scooter sales, while domestic promotion expense decreased by RMB 20 million since we took a conservative position under the volatile retail environment.

談論運營費用。第四季度OpEx為1.96億元人民幣，高於去年同期的700萬元人民幣，而OpEx金額基本持平。運營支出佔收入的百分比從 19% 上升到 32%，這主要是由於收入基數較低。營銷費用為人民幣1.07億元，同比增加人民幣800萬元。在增加的 800 萬元人民幣中，新店的折舊和攤銷費用為 600 萬元人民幣。海外銷售費用增加人民幣 2,450 萬元，因為我們繼續擴大足跡以推動滑板車銷售的增長，而國內促銷費用減少人民幣 2,000 萬元，因為我們在多變的零售環境下採取保守立場。

Research and development expenses were RMB 40 million, RMB 5 million lower than the fourth quarter of 2021, mainly due to the decrease in outsourcing professional fees. And G&A expenses were RMB 48 million, RMB 4 million higher year-over-year, mainly caused by an increase of RMB 12 million provision for credit loss, offsetting by a decrease in financial service fee of RMB 9 million.

研發費用為人民幣4,000萬元，較2021年第四季度減少人民幣500萬元，主要是外包專業費用減少所致。 G&A 費用為人民幣 0.48 億元，同比增加人民幣 400 萬元，主要是由於信用損失準備增加人民幣 0.12 億元，被金融服務費減少人民幣 900 萬元所抵消。

For the full year 2022, the OpEx was RMB 775 million, RMB 166 million higher than 2021. And the increase was mainly due to the ongoing 2021 new store depreciation impact increased by RMB 42 million, and the increase in overseas business expansion, RMB 83 million, particularly selling expenses for kick scooters, like online trafficking, warehouse stocking, product insurance, et cetera, and RMB 24 million increased credit loss, RMB 41 million R&D expenses for new scooters and kick scooters rolling out in 2022, offsetting by RMB 24 million decrease from domestic marketing and promotions.

2022年全年運營支出為7.75億元人民幣，比2021年增加1.66億元人民幣。增長主要是由於持續的2021年新店折舊影響增加了4200萬元人民幣，以及海外業務擴張增加了83元人民幣萬元，尤其是電動滑板車的銷售費用，如網絡販賣、倉庫庫存、產品保險等，以及增加的 2400 萬元信用損失，以及 2022 年推出的新型電動滑板車和電動滑板車的 4100 萬元研發費用，抵消了 24 元人民幣國內營銷和促銷活動減少了 100 萬美元。

The non-GAAP operating expenses, excluding share-based compensation, were RMB 718 million, representing a 22.7% of revenue compared to 15.2% in 2021. And this quarter, we had an income tax benefit from RMB 21.8 million compared to RMB 47 million income tax expenses last year for the same period stated in our previous calls. And in the fourth quarter, we had a net loss of RMB 37 million with a net margin of negative 6.1% under the GAAP measure compared to net income of RMB 47 million with the net margin of 4.8% for the same period of last year.

不包括基於股份的薪酬的非美國通用會計準則運營費用為 7.18 億元人民幣，佔收入的 22.7%，而 2021 年為 15.2%。本季度，我們的所得稅收益為 2180 萬元人民幣，而 4700 萬元人民幣我們之前電話中所述的去年同期的所得稅費用。而在第四季度，我們的淨虧損為人民幣 3700 萬元，按照美國通用會計準則衡量，淨利潤率為負 6.1%，而去年同期為淨收入 4700 萬元，淨利潤率為 4.8%。

On full year basis due to the factors, including lower-than-expected domestic sales, battery cost pressure and increasing overseas business expansion, as mentioned above, we had a net loss of RMB 49 million with the net margin of negative 1.6%. But excluding share-based compensation expenses, we still deliver a positive RMB 8.8 million net income in 2022.

全年來看，由於國內銷售低於預期、電池成本壓力和海外業務擴張力度加大等因素，如上所述，我們淨虧損人民幣 4900 萬元，淨利率為負 1.6%。但不包括股權激勵費用，我們在 2022 年仍可實現 880 萬元人民幣的正淨收入。

And turning to our balance sheet and cash flow. We ended a year with RMB 1.1 billion in cash, restricted cash, term deposits and short-term investments. Our net cash used in operating activities for Q4 was RMB 300 million, mainly due to the reduction in payable to suppliers as a result of seasonality. On full year basis, the operating cash flow was RMB 126 million outflow, partially due to an increase in kick scooters inventory at international warehouses for quickly responding to incoming orders.

並轉向我們的資產負債表和現金流量。一年結束時，我們擁有 11 億元人民幣的現金、受限制的現金、定期存款和短期投資。我們第四季度經營活動使用的現金淨額為人民幣3億元，主要是由於季節性因素導致應付供應商款項減少。按全年計算，經營現金流為人民幣 1.26 億元流出，部分原因是國際倉庫為快速響應新訂單增加了滑板車庫存。

Our Q4 CapEx was RMB 43 million. And on a full year basis, the CapEx was RMB 135 million compared to RMB 286 million, continuing to slow down as our channel strategy in China market shifting from fast store expansion to plus store performance improvements.

我們第四季度的資本支出為人民幣 4300 萬元。全年資本支出為人民幣 1.35 億元，高於人民幣 2.86 億元，隨著我們在中國市場的渠道戰略從快速門店擴張轉向門店業績提升，資本支出繼續放緩。

And now let's turn to guidance. In light of volatile domestic market and our strategy focused on premium and mid-end markets, we expected the first quarter revenue to be in the range of RMB 403 million to RMB 489 million, representing a decrease of 15% to 30% year-over-year. 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 change due to the uncertainties relating to our various factors.

現在讓我們轉向指導。鑑於國內市場的波動以及我們專注於高端和中端市場的戰略，我們預計第一季度收入將在人民幣 4.03 億元至人民幣 4.89 億元之間，同比下降 15% 至 30% -年。請注意，此展望基於截至當日可用的信息，反映了公司當前和初步的預期，由於與我們的各種因素相關的不確定性，該預期可能會發生變化。

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

有了這個，讓我們現在打開電話，回答您可能對我們提出的任何問題。接線員，請繼續。

(Operator Instructions) Our first question comes from the line of Yating Chen from CICC.

（操作員說明）我們的第一個問題來自中金公司的陳雅婷。

And I have two questions. The first one is, could you please introduce your plan for channel expansion in 2023? And what is your expectations on selling and marketing ratio in 2023? And how do you feel about the impact of channel expansion on this expenses? This is my first question.

我有兩個問題。第一個是，能否介紹一下你們2023年的渠道拓展計劃？您對2023年的銷售和營銷比率有何期望？您如何看待渠道擴張對這筆費用的影響？這是我的第一個問題。

Okay. Maybe I'll address the channel expansion part and also mention the marketing expense. And I think I'll let Fion to add a bit more. I think 2023, we look at it two parts. On the China market side, I think we take a more moderate approach, where we still do expect to expand a little bit, but it's not significantly, like what we did in the last couple of years in 2020 or 2021.

好的。也許我會解決渠道擴展部分並提及營銷費用。我想我會讓 Fion 補充一點。我認為 2023 年，我們將其分為兩個部分。在中國市場方面，我認為我們採取了更溫和的方法，我們仍然希望在中國市場有所擴張，但幅度不會很大，就像我們在過去幾年 2020 年或 2021 年所做的那樣。

I think the focus for China is really to improve the same-store sales. I think that currently, what we have about 3,000 stores is sufficient in terms of absolute store counts, is sufficient to support the China sales growth. But having said that, I think there are optimizations, where in the regions -- there are regions that, I think, we still need more stores where we need to expand, and there are some regions that actually we feel like we actually had more stores than we needed, and there may be some optimization to that.

我認為中國的重點是提高同店銷售額。我認為目前，我們擁有約 3,000 家門店，就絕對門店數量而言，足以支撐中國的銷售增長。但話雖如此，我認為在這些地區有優化——我認為，有些地區我們仍然需要更多我們需要擴展的商店，有些地區我們覺得我們實際上有更多商店比我們需要的多，可能會有一些優化。

Now on the international part, I think that's where we're going to focus the most, both on the sort of the European market, the U.S. market and the Southeast Asia market. And with the European and U.S. market, those would be channel expansions are more about expand our footprint in the already entered offline channels for the kick scooters and for the e-bikes. For example, with the kick scooter, with Best Buy, we were in about 300 stores. And now we have a shelf display in both 650 stores. So -- and in the Southeast Asia, it's actually talking with -- working with traditional dealer network to get our scooters into the dealers. I think this is actually on the channel part.

現在在國際部分，我認為這是我們最關注的地方，包括歐洲市場、美國市場和東南亞市場。對於歐洲和美國市場，這些渠道擴張更多的是擴大我們在已經進入的滑板車和電動自行車線下渠道中的足跡。例如，通過滑板車和百思買，我們進入了大約 300 家商店。現在，我們在 650 家商店都有貨架展示。所以——在東南亞，它實際上是在與——與傳統經銷商網絡合作，讓我們的滑板車進入經銷商。我認為這實際上是在頻道部分。

I think your question next is about the sales, marketing expense. I think, if we look at the overall sales and marketing expense compared year-over-year, I think there's a plan to definitely -- the percentage that we spend on sales and marketing (inaudible) battery...

我想你的下一個問題是關於銷售、營銷費用。我認為，如果我們看一下與去年同期相比的整體銷售和營銷費用，我認為肯定有一個計劃——我們在銷售和營銷（聽不清）電池上花費的百分比……

Yes, I think I'll take this question from my side. Yes. This is Fion. I'll take the selling and marketing expenses ratio from my side. Actually, in 2022, it's a special year. As a percentage of revenue, on the selling and marketing expenses was high up to almost 14% as percentage of revenue, considering that we're shifting the domestic marketing strategy from -- only from Q4 and late Q3. While in the meantime, we kept the continuing that for the expansion of the kick scooters in 2022. So that we got the results of around 14% selling and marketing expenses.

是的，我想我會從我這邊回答這個問題。是的。這是菲恩。我將從我這邊獲取銷售和營銷費用比率。其實，2022年，是一個特殊的年份。作為收入的百分比，銷售和營銷費用佔收入的百分比高達近 14%，考慮到我們正在改變國內營銷策略 - 僅從第四季度和第三季度末開始。與此同時，我們保持了 2022 年滑板車擴張的持續性。因此我們得到了大約 14% 的銷售和營銷費用的結果。

If we look at the marketing and selling expenses as a percentage of revenue in 2021, we only -- our ratio was only 9%. And in 2021, we're balancing the expansion in the domestic market retail and also the traditional e-motorcycle and e-moped business in the international market. So our target, we expect in 2023, the overall selling and marketing expenses ratio will stay at the same level at around 9% to 10% as at the same level in 2021, balancing the international kick scooters continuing expansion and also the domestic new products rolling out in 2023. And with that, I think, it is the ideal selling and marketing expenses ratio we expected in this year.

如果我們看一下 2021 年營銷和銷售費用佔收入的百分比，我們的比率僅為 9%。到 2021 年，我們將平衡國內市場零售的擴張以及國際市場上的傳統電動摩托車和電動助力車業務。所以我們的目標，我們預計到2023年，整體銷售和營銷費用比率將保持在與2021年相同水平的9％至10％左右，平衡國際滑板車的持續擴張和國內新產品將於 2023 年推出。我認為，這是我們今年預期的理想銷售和營銷費用比率。

Okay, is very clear. And my second question is, as you've mentioned, you are trying to improve store performance. And could you please share more with it? For example, how will we improve the store performance? And if we decide to decrease the China store, what is the benchmark of its profit? Yes, that's my question.

好的，很清楚。我的第二個問題是，正如您所提到的，您正在努力提高商店績效。你能和它分享更多嗎？例如，我們將如何提高門店績效？如果我們決定減少中國店，它的利潤基準是什麼？是的，這是我的問題。

Can you repeat what is the benchmark of the -- sorry, of the what?

您能否重複一下——抱歉，什麼的基準？

What is the benchmark of your decision to opening one more channel or just to close it?

您決定再開通一個渠道還是關閉它的基準是什麼？

Right. I think -- so let me answer the second one first. I think the second one is actually easy, it's whether the stores are self-profitable, because all our stores are franchise stores. So in reality, if the stores are profitable, the store owners tend to keep the store open. If the stores are not profitable throughout the year, a monthly basis, they may not be profitable. But even for the entire year, it's not profitable, then it's actually difficult to keep the store open. I think that's -- so it's -- and this will be -- we look at city by city, we look at regional basis.

正確的。我想——讓我先回答第二個問題。第二個我覺得其實很簡單，就是門店是否盈利，因為我們所有的門店都是加盟店。所以在現實中，如果商店有利可圖，店主往往會繼續營業。如果門店全年不盈利，按月計算，就不一定盈利了。但即使是全年，都沒有盈利，那店其實也很難開下去。我認為那是——所以它是——這將是——我們逐個城市看，我們看區域基礎。

Now in terms of the store sales improvement, I think there are really two things we're looking at. One is how do we get more traffic to the stores. So this year, we started a little bit last year, but really, this year, is actually what we're planning is actually, as we mentioned that basically providing stores with sales leads generated from online JD and Tmall. So our sales online, so what we call the O2O method. Basically, the users can make the purchase online and decide to pick up the scooter at an offline store. Last year, it only represents roughly about less than 10% of our sales. And this year, we're looking it to boost that to basically to 20% or 25% of our sales coming from online leads. So that would actually means increased traffic to the stores.

現在就商店銷售的改善而言，我認為我們確實在關注兩件事。一個是我們如何獲得更多的商店客流量。所以今年，我們去年開始了一點點，但實際上，今年實際上是我們正在計劃的，正如我們提到的，基本上是為商店提供在線京東和天貓產生的銷售線索。所以我們的在線銷售，也就是我們所說的O2O方式。基本上，用戶可以在線購買並決定在線下商店取車。去年，它只占我們銷售額的大約不到 10%。今年，我們希望將這一比例提高到基本上來自在線銷售線索的銷售額的 20% 或 25%。所以這實際上意味著商店的客流量增加。

I think second is actually a list of initiatives that we're implementing in the stores to help the conversion rate. So once you increase the traffic, it's about how do you convert the traffic to purchase. Those will be things like optimize their store layout and the product portfolios in the stores, because we also recognize different regions, different cities. We have extensive product portfolio, but some product actually sells better in some regions. So we need to make sure the store optimizes the product portfolios that carries in their store. And there was a clear message and the clear trainings to the store staff, such that when users coming or potential customers come in there is easy to communicate to the customers what to buy.

我認為第二個實際上是我們在商店中實施的一系列舉措，以幫助提高轉化率。所以一旦你增加了流量，就是你如何將流量轉化為購買。這些將是優化他們的商店佈局和商店中的產品組合，因為我們也認識到不同的地區、不同的城市。我們有廣泛的產品組合，但有些產品實際上在某些地區賣得更好。因此，我們需要確保商店優化其商店中的產品組合。並且有明確的信息和對商店員工的明確培訓，這樣當用戶到來或潛在客戶進來時，很容易與客戶溝通要買什麼。

And lastly, I think it's -- we also recognize actually accessory sales are a great percentage of the store sales than the store profit. I think with it was our product, like the UQi, which actually really call for customizations, there are tons of accessories can be developed for the particular product such that store can -- beside selling the scooters, they can sell additional accessories to make profit. I think that's what are the three things -- really the three things we're taking.

最後，我認為 - 我們也認識到實際上配件銷售額佔商店銷售額的很大一部分而不是商店利潤。我認為這是我們的產品，比如 UQi，它實際上確實需要定制，可以為特定產品開發大量配件，這樣商店就可以——除了銷售滑板車，他們還可以銷售額外的配件來獲利.我認為這就是三件事 - 實際上是我們正在採取的三件事。

But having said that, I think there is an underlying theme, which is the product itself has to be attractive and competitive. So I think this is actually what we feel very confident this year is having the new product online we have a bunch of new products ready to roll out in the second quarter or starting our second quarter this year. And we have demonstrated really last quarter -- well, fourth quarter, last year, is actually with all the positive news we received from the new product. Once we have the newly designed product out, it helps to boost the sales and also help improve the store performance. Hopefully that answers the question.

但話雖如此，我認為有一個潛在的主題，即產品本身必須具有吸引力和競爭力。所以我認為這實際上是我們今年非常有信心的新產品上線我們有一堆新產品準備在第二季度推出或從今年第二季度開始。我們真的在上個季度展示了 - 好吧，去年第四季度實際上是我們從新產品收到的所有積極消息。一旦我們新設計的產品出來，它有助於促進銷售，也有助於提高商店績效。希望這能回答問題。

We'll now move on to our next question. (Operator Instructions) Our next question comes from the line of [Soojin Lee] from Citic.

我們現在將繼續我們的下一個問題。 （操作員說明）我們的下一個問題來自中信的[Soojin Lee]。

I'm Soojin Lee from Citic Securities. And here's -- I have two questions. And the first, I wonder our product positioning because last year, you can see our sales growth indeed faced some pressure. But looking at this duration in the past 2 months, it seems that the resumption of commuting after the epidemic has stimulated the -- demand of the industry. And I would like to know how we will position the focus of our product line in the near future? This is my first question.

我是中信證券的 Soojin Lee。這是——我有兩個問題。首先，我想知道我們的產品定位，因為去年，你可以看到我們的銷售增長確實面臨一些壓力。但從過去2個月的這段時間來看，似乎是疫情過後恢復通勤刺激了行業的——需求。並且我想知道在不久的將來我們將如何定位我們產品線的重點？這是我的第一個問題。

And second question, I wonder how do you evaluate the impact of upstream change such as lithium battery price reductions, and we could also see some sodium batteries on our product, and also our financial performance, it could be better if you could show your insights, respectively?

第二個問題，請問你如何評價上游變化的影響，比如鋰電池降價，我們的產品上也可以看到一些鈉電池，還有我們的財務表現，如果你能說說你的見解會更好， 分別？

Yes. I think -- so let me try to address those. Those are great questions. First, on the product positioning. I think our product offerings has always been basically from the premium end to the mid-end of the market. And I think that has always been the case.

是的。我認為 - 所以讓我嘗試解決這些問題。這些都是很好的問題。首先，在產品定位上。我認為我們的產品供應基本上一直是從高端市場到中端市場。我認為情況一直如此。

Now it just happened that really, for our -- in 2022, the issue with the lithium battery price increase that actually made our entry-level product, which is 0 series, which roughly priced at the market mid-end level or slightly below the mid-end level, that product and competitive and the gross margin point of view, impossible to make. So that's actually created pressure on the sales volume and on the revenue as well.

現在真的發生了，對於我們——2022年，鋰電池漲價的問題，實際上讓我們的入門級產品，也就是0系列，價格大致在市場中端水平或者略低於中端水平，即產品和競爭力以及毛利率的觀點，不可能做出來。因此，這實際上對銷量和收入也造成了壓力。

So heading this into this year, I think, one, we're going to focus on bringing new product in the premium and mid-end market. Second, we really starting -- second half of last year, we started to introduce a graphite lead-acid battery solutions to offset the lithium battery price increase, but we don't have enough product on the lead acid -- on the graphite led-acid scooter yet. So we have more product coming out supporting the graphite lead-acid product solutions that can offset this lithium battery price hike that help us to regain the competitiveness in the mid-end market. So I think that's on the product positioning.

因此，進入今年，我認為，第一，我們將專注於在高端和中端市場推出新產品。第二，我們真的開始——去年下半年，我們開始推出石墨鉛酸電池解決方案來抵消鋰電池價格上漲，但我們在鉛酸上沒有足夠的產品——在石墨led -酸滑板車呢。所以我們有更多的產品出來支持石墨鉛酸產品解決方案，可以抵消這次鋰電池價格上漲，幫助我們重新獲得在中端市場的競爭力。所以我認為這是在產品定位上。

The second, we did observed that recently, basically the upstream material for the lithium batteries has -- the price has come down. And then we also observed that price coming down has also triggered down to the lithium battery cells, there's a downward pressure on the price. I think having the lithium price coming down will be a significant positive or plus to our sales volume as well and the margin as well because we were -- I think, really, we were in a position that majority of our sales were from lithium. So when the lithium price increased significantly, we got the impact the most. But when the lithium price coming down significantly, we will benefit the most.

第二，我們確實觀察到，最近鋰電池的上游材料基本上價格下降了。然後我們也觀察到，價格的下行也引發了鋰電芯的下行，價格有下行壓力。我認為，鋰價格的下降將對我們的銷量和利潤率產生重大的積極影響或加分，因為我們——我認為，真的，我們的大部分銷售額都來自鋰。因此，當鋰價大幅上漲時，我們受到的影響最大。但當鋰價大幅回落時，我們將受益最大。

But having said that, I think, so far, our 2023, basically financial outlooks and both our company internal budget, we haven't really taken into consideration of the lithium price coming down yet. And if it did come down, that means we will actually improve our gross margin as well as that will help us in terms of pricing our product to redeem more sales. Hopefully, I've addressed the questions.

但話雖如此，我認為，到目前為止，我們的 2023 年，基本上是財務前景和我們公司的內部預算，我們還沒有真正考慮到鋰價格的下跌。如果它確實下降了，那意味著我們實際上將提高我們的毛利率，這將有助於我們在產品定價方面獲得更多銷售。希望我已經解決了這些問題。

Yes. Well, noted. And understood. Helpfully, with and -- rather looking forward to our back to game.

是的。好吧，注意到了。並且明白了。很有幫助，並且 - 非常期待我們回到遊戲中。

We'll now move on to our next question. Our next question comes from the line of Alice Ma from UBS.

我們現在將繼續我們的下一個問題。我們的下一個問題來自瑞銀的 Alice Ma。

I have two questions actually. One is regarding the domestic market and the other one is regarding the overseas market. For the first one, my question is, what is your view towards the growth of premium or mid-to-premium electric 2-wheeler market domestically this year? I think that for most of the market consensus, they believe that the overall electric 2-wheeler sector will grow by around 20% in terms of volume this year in China. But in terms of the mid-to-premium markets, do you expect that it will, like achieve a higher-than-average growth? Which means that do you think that the consumption power of the consumers actually recovered after the reopening these days? And will the company benefit from this trend?

其實我有兩個問題。一個是關於國內市場，一個是關於海外市場。對於第一個，我的問題是，您對今年國內高端或中高端電動兩輪車市場的增長有何看法？我認為對於大多數市場共識來說，他們認為今年中國電動兩輪車行業的整體銷量將增長 20% 左右。但就中高端市場而言，您是否預計它會實現高於平均水平的增長？也就是說，你認為這幾天重新開張後，消費者的消費力真的恢復了嗎？公司會從這一趨勢中受益嗎？

And the other question is about the overseas market. I'm really curious about your specific plans into the expansion into the Indonesia or Thailand market, you mentioned just now. I'm wondering, like how do you view the market potential? And how do you view that your product competitiveness in this market?

另一個問題是關於海外市場。我真的很好奇你剛才提到的擴展到印度尼西亞或泰國市場的具體計劃。我想知道，您如何看待市場潛力？您如何看待您的產品在這個市場上的競爭力？

Yes. So let me address the first one with the medium -- mid-to-premium market one. The -- so in terms of -- I think my view on this one is kind of like less optimistic in the sense that I think the medium to premium market, I would imagine it actually would grow slightly slower. I don't think it will grow faster than the market average. It will grow either slower or maybe just on par.

是的。因此，讓我來解決第一個問題——中高端市場。 - 所以就 - 我認為我對這個的看法有點不那麼樂觀，因為我認為中高端市場，我想它實際上會增長得稍微慢一些。我認為它的增長速度不會超過市場平均水平。它會增長得更慢，或者可能只是持平。

The issue being that when you're looking at this entire market growth in China, a lot of our consumer demand growth, and a lot are actually through basically industry players doing price competition, which we already observed in Q1 this year, basically major competitors slashing prices on most of our entry-level product -- product around RMB 2,000 or less. So that actually -- that price competition and really shooting for basically slashing price to drive the volume, that has always been sort of the case for this industry. So I think that's actually, to some extent fuel the market growth.

問題是，當你審視中國的整個市場增長時，我們的很多消費者需求增長，而且很多實際上是通過基本上行業參與者進行價格競爭，我們已經在今年第一季度觀察到，基本上是主要競爭對手我們的大部分入門級產品都大幅降價——產品在 2000 元左右或以下。所以實際上 - 價格競爭和真正的射擊基本上削減價格以推動銷量，這一直是這個行業的情況。所以我認為這實際上在某種程度上推動了市場增長。

So from that point of view, I think the medium to premium market, I don't think it will grow faster than average market. But having said that, it's -- we still -- is still a lot of room for us to gain that market, right? Because if you look at last year, we only did about 700,000 units. And the year before, we actually did about 980,000 units all in the same segment. The drop of about 200-something-thousand units because of the lithium price went up, we had to increase our -- some of our entry-level product, and it was the pricing auto market, right? And -- but that doesn't mean this mid- to premium market doesn't exist.

所以從這個角度來看，我認為中高端市場的增長速度不會超過平均市場。但話雖如此，它 - 我們仍然 - 仍然有很大的空間讓我們獲得這個市場，對吧？因為如果你看看去年，我們只做了大約 700,000 台。而前一年，我們實際上在同一個細分市場中完成了大約 980,000 個單位。由於鋰價格上漲，減少了大約 20 萬輛，我們不得不增加我們的一些入門級產品，這是定價汽車市場，對吧？而且——但這並不意味著這個中高端市場不存在。

I think the market -- this market -- mid- to premium market is still exist in terms of at least 8 million units plus. So for us, basically the mid-end to the premium, our premium part like at least like 2 million to 3 million units, and mid and at least, I think, 5 million to 6 million units. So for us, only last year's 700,000 units we're still small percentage. So we're less concerned about how fast the overall market grows, but more focused on whether we can have a competitive product. But we know we can have like a great design product, but it has to be price competitive in that market as well.

我認為市場 - 這個市場 - 中高端市場仍然存在至少 800 萬台以上。所以對我們來說，基本上是高端的中端，我們的高端部分至少有 200 萬到 300 萬個單位，而中端至少有 500 萬到 600 萬個單位。所以對我們來說，只有去年的 700,000 台我們仍然佔很小的比例。所以我們不太關心整體市場的增長速度有多快，而是更關注我們能否有一個有競爭力的產品。但我們知道我們可以擁有出色的設計產品，但它也必須在該市場上具有價格競爭力。

I think that addressed your first question. I think can you repeat on your second question on the Southeast Asia market, which I didn't recall down clearly.

我認為這解決了你的第一個問題。我想你能再重複一下你關於東南亞市場的第二個問題嗎，我記不太清了。

Okay. My second question about the entrance of the Indonesia or Thailand market. You mentioned that -- I think you mentioned in your introduction that you will leverage the battery swap with the local partners into this market. And I'm wondering like how do you see the market potential in the Southeast Asia market? And how do you view your product advantage over competitiveness?

好的。我的第二個問題是關於印度尼西亞或泰國市場的入口。你提到過——我想你在介紹中提到你將利用與當地合作夥伴的電池交換進入這個市場。我想知道您如何看待東南亞市場的市場潛力？您如何看待您的產品優勢而非競爭力？

Yes. So I think -- so we've been talking about Southeast Asia market for at least for a few years. The entire market was huge. It's about -- they do about 20 million -- or I think, 18 million to 20 million of petrol scooters or petrol motorcycles for the -- on an annual basis, right? I think Indonesia was at least 6 million units and Thailand, Malaysia, everything.

是的。所以我認為 - 所以我們一直在談論東南亞市場至少幾年了。整個市場很大。大約 - 他們每年生產大約 2000 萬輛 - 或者我認為是 1800 萬到 2000 萬輛汽油踏板車或汽油摩托車，對嗎？我認為印度尼西亞至少有 600 萬台，泰國、馬來西亞等等。

And I think in the past, what's happening is that market, there is basically electric moped or electric motorcycles from price point of view, it's too pricey for that consumer market. So there is -- it's difficult to find an entry point. We were able to gain about 60% growth last year. But still, we're talking about small numbers, less than 10,000 units. So I think there are two -- there are different solutions looking into it.

我認為過去發生的是那個市場，從價格的角度來看，基本上是電動助力車或電動摩托車，對於那個消費市場來說太貴了。所以有 - 很難找到切入點。去年我們實現了大約 60% 的增長。但是，我們仍然在談論小數字，少於 10,000 個單位。所以我認為有兩個 - 有不同的解決方案來研究它。

One solution is sort of this battery swapping or battery rental solutions, where people buying the scooters, but actually rental battery or lease the battery. So the battery cost actually, booking on a monthly fee as opposed to upfront cost. So we're -- so that will help to lower the upfront cost.

一種解決方案是這種電池交換或電池租賃解決方案，人們購買踏板車，但實際上是租用電池或租賃電池。所以電池成本實際上是按月預訂，而不是預付費用。所以我們 - 這將有助於降低前期成本。

There are also second speculation on potential government subsidies. I think just to give you an example here, where the Southeast Asian market kind of like the India market. Indian markets, they're even bigger about 24 million units of petrol motorcycles. Their pricing is very similar in India market and the Southeastern market. But Indian market, with the government subsidies, they had a subsidy is about $250 or $300. The Indian market in the last 3 years was able to grow from, annually, about 100,000 units of electric 2-wheelers to about 600,000 units last year, where Southeast Asia market right now, the electric 2-wheelers is very minimal. It's less than 100,000, but electric motorcycles.

還有關於潛在政府補貼的第二種猜測。我想在這裡舉個例子，東南亞市場有點像印度市場。印度市場，他們甚至更大，大約有 2400 萬輛汽油摩托車。他們在印度市場和東南市場的定價非常相似。但是印度市場，有政府補貼，他們有補貼大概是250或者300美元。印度市場在過去 3 年中能夠從每年約 100,000 輛電動兩輪車增長到去年的約 600,000 輛，而目前在東南亞市場，電動兩輪車非常少。不到10萬，可是電動摩托。

So we do think that the -- if you compare those two markets, we do think the Southeast Asia market, at least have a potential in the next couple of years to grow to the size of India market. And we've been actually planning to see there for multiple years. So this is actually -- we do think in the next couple of years is the market that we're able to capture some of the potential high growth there.

所以我們確實認為 - 如果你比較這兩個市場，我們確實認為東南亞市場至少有可能在未來幾年內增長到印度市場的規模。事實上，我們多年來一直計劃去那裡看看。所以這實際上是 - 我們確實認為在未來幾年內我們能夠抓住那裡的一些潛在高增長市場。

Okay. Very clear. And also wish that we have some growth stories in the following years.

好的。非常清楚。也希望我們在接下來的幾年裡有一些成長的故事。

We'll now move on to our next question. Our next question comes from the line of Scarlett Ge from Credit Suisse.

我們現在將繼續我們的下一個問題。我們的下一個問題來自瑞士信貸的 Scarlett Ge。

I have one question. So how do you view the competition landscape with some new entrants or potential new entrants, for example, the brands who are trying to transfer from traditional ICE motorcycle makers to the electrified motorcycle field? For example, Hyundai and [Da Hangzhong] and Wuling they all have launched new products and the price range is from RMB 3,000 to RMB 7,000. I guess there are some price overlap between those products. So how do you view the difference between Niu and those products in terms of -- with those brands in terms of product or sales channels or some other aspects?

我有一個問題。那麼您如何看待一些新進入者或潛在新進入者的競爭格局，例如試圖從傳統內燃機摩托車製造商轉向電動摩托車領域的品牌？比如現代和【大航眾】五菱都推出了新品，價格區間在3000-7000元之間。我想這些產品之間有一些價格重疊。那麼，您如何看待 Niu 與那些品牌在產品或銷售渠道或其他方面的差異？

Yes. So Scarlett, I think for us, it's -- first, China market is still a big market. But I think may say, 40 million units a year, 45 million units a year, some markets has 50 million units a year. It's a huge market, such that I think it's -- with more brands are coming in, is still able to accommodate more brands. So from that perspective, it's actually -- it's less a worry from our perspective, because even we do about 1 million units in China, it's only it's like, what, 2% of the market. So it's -- we have less concern when more brands come in.

是的。所以斯嘉麗，我認為對我們來說，首先，中國市場仍然是一個大市場。但我想可以說，一年4000萬台，4500萬台，有些市場一年5000萬台。這是一個巨大的市場，我認為隨著更多品牌的加入，它仍然能夠容納更多品牌。所以從這個角度來看，實際上——從我們的角度來看，這不是一個令人擔憂的問題，因為即使我們在中國生產了大約 100 萬台，也只是市場的 2%。所以它 - 當更多品牌進入時，我們不太擔心。

I think it's -- but I think the right one would be -- or the more related one would be actually either brands actually they positioned their products similar to our product, like a premium brands or those ones, which I think they are buzz last year about Honda coming with leveraging their, like really the not -- like, I think, the 3 models like a Zoomer, I forgot what's the other two models, like well-known petrol models that made it electric. And actually, it did raise actually quite a buzz in the industry.

我認為它是——但我認為正確的是——或者更相關的品牌實際上是他們將產品定位為與我們的產品相似的品牌，比如高端品牌或那些我認為它們最後才引起轟動的品牌關於本田利用他們的影響力的一年，真的不是——我認為，像 Zoomer 這樣的 3 款車型，我忘記了其他兩款車型是什麼，比如眾所周知的電動汽油車型。實際上，它確實在業界引起了不小的轟動。

So we don't take those competitions lightly. We think with the Honda's brand as well as the recognition in this market and especially with sort of the legacy models that people recognize, it will create more competition in the premium market. And in reality, I think, for us, will be that will just more really a pressure and push us push Niu to come as -- with competitive product or with better product. I think -- I assume your question is on the China market per se.

所以我們不會掉以輕心地對待這些比賽。我們認為，憑藉本田的品牌以及該市場的認可度，尤其是人們認可的傳統車型，它將在高端市場創造更多競爭。實際上，我認為，對我們來說，這將是一種壓力，並推動我們推動 Niu 成為具有競爭力的產品或更好的產品。我想——我假設你的問題是關於中國市場本身的。

There are no further questions at this time. So I'll hand the conference back to you.

目前沒有其他問題。所以我會把會議交還給你。

All right. So if there's no questions, thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Operator?

好的。如果沒有問題，謝謝接線員，感謝大家參與今天的電話會議並給予支持。感謝您的關注，並期待下個季度再次向您報告我們的進展情況。操作員？

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。發言人，請稍候。