小牛電動 (NIU) 2023 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.

美好的一天，女士們先生們。感謝您的耐心等待，歡迎參加小牛科技 2023 年第二季度收益電話會議。 （操作員說明）謹此提醒，我們正在對今天的通話進行錄音。如果您有任何異議，您可以此時斷開連接。

Now I will turn the call over to Ms. Crystal Li, Investor Relations Manager of Niu Technologies. Ms. Lee, please go ahead.

現在我把電話轉給小牛科技投資者關係經理李晶女士。李女士，請繼續。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the second quarter 2023. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from our company's IR side 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 2023 年第二季度的業績。收益新聞稿、公司演示和財務電子表格已發佈在我們的投資者關係網站上。我們公司的 IR 方面也對此次電話會議進行了網絡直播，並且很快就會提供電話會議的重播。

Please note, today's discussion will contain forward-looking statements made under the safe harbor provision 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做出的前瞻性陳述。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所表達的結果存在重大差異。有關風險因素的更多信息包含在該公司向美國證券交易委員會提交的公開文件中。除法律要求外，公司不承擔更新任何前瞻性陳述的義務。

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 the reconciliation of GAAP to non-GAAP financial results. On the call today with me are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou.

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。該新聞稿包含非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的調節表。今天與我一起通話的是我們的首席執行官李岩博士；和首席財務官週菲恩女士。

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

現在讓我把電話轉給首席執行官嚴。

Well, thank you, everyone, for joining us on the call today. So in Q2 2023, our total sales volume was 211,996 units returning to the same level from 1 year ago with a year-over-year slight increase of 1.5%. Specifically, sales volume in the China market has a small year-over-year drop of 1.0% to 178,567 units. And the sales volume in the overseas market experienced a year-over-year 17.1% growth to 33,429 units.

好的，謝謝大家今天加入我們的電話會議。因此，2023年第二季度，我們的總銷量為211,996輛，恢復到一年前的水平，同比小幅增長1.5%。其中，中國市場銷量同比小幅下降1.0%至178,567輛。海外市場銷量同比增長17.1%至33,429輛。

Total revenue in Q2 2023 was RMB 828.8 million matching the level from Q2 2022 with a slight increase of 0.1%. For new Q2 2023 was a quarter to get back on the track of long-term growth through a focus on premium -- mass premium products as well as sustained effort to enhance our brand. In the China market, the new products that launched in Q2 have demonstrated substantial growth potential, spreading our sales growth and generating extensive discussions on social media.

2023年第二季度總收入為人民幣8.288億元，與2022年第二季度持平，小幅增長0.1%。 2023 年第二季度是通過專注於優質大眾優質產品以及持續努力提升我們的品牌而重回長期增長軌道的季度。在中國市場，第二季度推出的新產品展現了巨大的增長潛力，帶動了我們的銷售增長，並在社交媒體上引起了廣泛的討論。

Capitalizing on the momentum garnered from those new product launches, we also rolled out engaging user events. Those events included our new products and collaborative effort with other brand partners, thereby positioning Niu not [merit] as the leader in urban mobility, but also as a pioneer in cultivating a desirable lifestyle.

利用這些新產品發布帶來的勢頭，我們還推出了吸引人的用戶活動。這些活動包括我們的新產品以及與其他品牌合作夥伴的合作，從而使小牛不僅成為城市出行的領導者，而且成為培養理想生活方式的先驅。

In overseas market, we experienced a mixed result with sales of electric 2-wheelers dropping by 68% year-over-year, while the macro mobility sales increased by [48.5%]. The decrease in the sales in electrical 2-wheeler market, mainly due to the macroeconomic shrink in Europe, coupled with delay in our high-performance product rollout. Niu's improved 125cc high-performance product is now scheduled to roll out in Q3 2023 to fill in the current gap in product offerings and to stimulate growth.

在海外市場，我們的業績好壞參半，電動兩輪車銷量同比下降68%，而宏觀出行銷量卻增長[48.5%]。電動兩輪車市場銷量下降，主要是由於歐洲宏觀經濟萎縮，加上我們高性能產品推出的延遲。小牛改進後的 125cc 高性能產品現計劃於 2023 年第三季度推出，以填補目前產品供應的空白並刺激增長。

For the Southeast Asia market, we are rolling out the battery swapping solutions with local operating partners in the second half of this year. The expectation of new products being released also contributed to the year-to-year decrease in sales volume in Q2. Regarding to the micro mobility market, we continue to see stable growth driven by the established product portfolio and the foundation we laid out with the current sales network. In this quarter, our award-winning micro mobility product was sold through online channels during our anniversary sales and in off-line channels coming major retail partners in the U.S. and Europe.

針對東南亞市場，我們將於今年下半年與當地運營合作夥伴推出換電解決方案。新產品發布的預期也導致第二季度銷量同比下降。關於微型移動市場，我們繼續看到在現有產品組合和現有銷售網絡奠定的基礎的推動下實現穩定增長。本季度，我們屢獲殊榮的微型移動產品在周年紀念促銷期間通過在線渠道銷售，並通過線下渠道向美國和歐洲的主要零售合作夥伴銷售。

Now delving into the China market performance. In Q2 2023, we rolled out new products in China market as planned, and the new products are proven to be a strong driving factor behind the growth. During the last quarter's earnings call, I introduced a new premium flagship product, MQiL, and the mid-end product, G400 and G400T. The new products are well received by the market with great popularities. The MQiL has gathered significant popularity across all major social media platforms, this is a unique design that inherits the design from our all-time classic M-Series along with the significant upgrades in performance and smart connectivities.

現在正在深入研究中國市場的表現。 2023年第二季度，我們按計劃在中國市場推出了新產品，事實證明新產品是增長的強大驅動因素。在上個季度的財報電話會議上，我介紹了一款新的高端旗艦產品MQiL，以及中端產品G400和G400T。新產品深受市場歡迎，深受好評。 MQiL在各大社交媒體平台上廣受好評，這是一種獨特的設計，繼承了我們一直以來經典的M系列的設計，並在性能和智能連接方面進行了重大升級。

The MQiL is designed with extra long range up to 170 kilometers and industry-leading smart technology that support functionality like supercharging, smart dashboard with navigation display, smart lighting system that changes light setups with sunlight sensors. It's fully integrated with the Apple's ecosystem that allows simple control through Siri. In just a few months since its launch, video featuring the MQiL has amassed more than 50 million views and 1 million comments and likes on Douyin.

MQIL 的設計具有長達 170 公里的超長續航里程和行業領先的智能技術，支持增壓、帶導航顯示屏的智能儀表板、通過陽光傳感器改變燈光設置的智能照明系統等功能。它與 Apple 的生態系統完全集成，可通過 Siri 進行簡單控制。自推出以來的短短幾個月內，MQiL 視頻在抖音上的觀看次數已超過 5000 萬，評論和點贊數已超過 100 萬。

Additionally, it has been a trending topic on electric scooter categories on Xiaohongshu.

此外，它還成為小紅書電動滑板車品類的熱門話題。

On the mass premium product, in June, we launched a G400 and G400T, and those are the 2 products that we took an innovative approach to use the same platform to build 2 bikes. The light motorcycle G400, electric bicycle G400T received positive feedback with almost 40 million views on Douyin short video, highlighting the scooter simplistic design and practical functionalities like large storage space. With the competitive pricing from RMB 4,599 G400 and G400T has been met with considerable popularities in the market.

在大眾高端產品方面，6月份，我們推出了G400和G400T，這是我們採用創新方法使用同一平台製造兩輛自行車的兩款產品。輕型摩托車G400、電動自行車G400T在抖音短視頻上獲得了近4000萬播放量的好評，凸顯了滑板車簡約的設計和大存儲空間等實用功能。 G400、G400T 4599元起的極具競爭力的價格在市場上受到了相當的歡迎。

Now the enthusiastic response to our new products, namely MQiL, G400/G400T is a testament to our commitment to the innovative and innovations and quality. Those products launch in May accounted for over 60% of total sales volume in June, indicating their immediate popularities among customers.

現在，我們的新產品 MQiL、G400/G400T 受到熱烈反響，這證明了我們對創新和質量的承諾。 5月推出的產品佔6月總銷量的60%以上，可見其立即受到消費者的歡迎。

Our sales performance during the 18-year shopping festival was also outstanding with a growth rate of 161% in sales revenue compared to the same period last year. Several of our key products featured on top-selling list of major e-commerce platform like JD.com and Taobao, reflecting their wide acceptance and popularities among users. Specifically, our recent launch MQiL emerged as the most popular product on JD.com. The strong performance across multiple products demonstrate the effectiveness of our product strategy to focus on premium and mass premium market and our ability to cater to the market's needs.

我們在十八年購物節期間的銷售業績也十分亮眼，銷售收入同比增長161%。多款主打產品登上京東、淘寶等各大電商平台熱銷榜，體現了產品的廣泛接受度和受歡迎程度。具體來說，我們最近推出的 MQiL 成為京東上最受歡迎的產品。多個產品的強勁表現證明了我們專注於高端和大眾高端市場的產品策略的有效性以及我們滿足市場需求的能力。

Now in quarter 3 this year, we launched at [S400T], which is another demonstration to our commitment to bringing quality products to the market. The design of S400T inspired by the fighter jets, along with the classic F-Series [Falconilight], gives the sleek and stylish look, incorporates all the smart functionalities that Niu is known for, along with the unique PowerBoost mode that allows riders to enjoy Speed boost for 10 seconds. This mode not only makes the city commuting easier, but allowing riders to navigate through traffic effectively, but also as elements of funds to the right. The S400T were now online through live streaming on August 8 with a pricing of $4,999. The new product live streaming has generated nearly 1 million views and we received nearly 6,000 preorders from the live stream.

今年第三季度，我們推出了 [S400T]，這再次證明了我們致力於將優質產品推向市場的承諾。 S400T以戰鬥機為靈感的設計，與經典的F系列【Falconilight】一起，呈現出圓滑時尚的外觀，融合了牛所熟知的所有智能功能，以及獨特的PowerBoost模式，讓騎手享受速度提升10秒。這種模式不僅讓城市通勤變得更加便捷，而且可以讓騎手有效地穿行在車流中，同時也成為資金向右流動的要素。 S400T 現已於 8 月 8 日通過直播上線，售價 4999 美元。新產品直播觀看量近100萬，直播預訂量近6000份。

By the recent additional S400T together with MQiL, G400 and G400T have already shown promising signs of popularity. As those products will only launch at end of Q2, their full impact of performance yet to be seen. We're optimistic that growth driven by those new launches and the product we plan to release in the future will further boost our performance in the upcoming quarters and strengthen our market position.

最近，S400T 與 MQiL 一起推出，G400 和 G400T 已經顯示出受歡迎的跡象。由於這些產品只會在第二季度末推出，其性能的全面影響還有待觀察。我們樂觀地認為，這些新產品的推出以及我們計劃在未來發布的產品所推動的增長將進一步提升我們在未來幾個季度的業績並鞏固我們的市場地位。

Leveraging the momentum from the launch of a new product, we initiated several marketing campaign on user active events this quarter. The marketing campaign will primarily conduct through online platform like Douyin, Xiaohongshu, and together, the campaign has gained over 1.4 billion views across platforms. Moreover, leveraging the Niu's innovative ambassador network who launched more than 30 user events in 70 cities in the first half 2023 through those high user engagement we have successfully brought diversity and creativity into Niu user commitment.

借助新產品發布的勢頭，本季度我們針對用戶活躍事件發起了多項營銷活動。該營銷活動主要通過抖音、小紅書等在線平台進行，目前該活動的跨平台瀏覽量已超過14億次。此外，利用小牛的創新大使網絡，通過高用戶參與度，小牛於2023 年上半年在70 個城市發起了30 多項用戶活動，我們成功地將多樣性和創造力帶入了小牛的用戶承諾中。

Our commitment to establish Niu as a leading lifestyle brand for urban mobility goes beyond our unique and differentiated product offerings. This quarter, we took a significant strategy and strengthen our brand positioning by engaging strategic collaborations and participating in high-profile events. A key highlight was our collaboration with the global renown IP (inaudible). We hosted online live stream events, inviting beloved (inaudible) to the new store in Shanghai, and this event generated significant buzz and we plan to further capitalize this momentum by launching 2 Niu cross (inaudible) scooters soon.

我們致力於將 Niu 打造成城市出行領先的生活方式品牌，這一承諾不僅僅局限於我們提供獨特且差異化的產品。本季度，我們採取了一項重大戰略，通過開展戰略合作和參加備受矚目的活動來強化我們的品牌定位。一個關鍵亮點是我們與全球知名 IP 的合作（聽不清）。我們舉辦了在線直播活動，邀請心愛的人（聽不清）來到上海的新店，這次活動引起了極大的關注，我們計劃進一步利用這一勢頭，很快推出2 輛Niu cross（聽不清）滑板車。

In addition to co-branding activities, we also participate in exhibitions and events organized by leading lifestyle brands like North Face and Sneaker Con. Our new scooters were showcased during the North Face Mountain festival in Yangzhou and Sneaker Con in Guangzhou. Those opportunities allowed us to present a new brand to a larger and diverse audience, both on on-site and online. Through those initiatives, we have successfully positioned Niu as a leader in urban mobility and a desirable lifestyle partner. We will continue to leverage strategic collaborations and high-profile event to enhance our brand visibility, attract new customers and solidify our position as the go-to brand for urban mobility solutions.

除了聯合品牌活動外，我們還參加 North Face 和 Sneaker Con 等領先生活方式品牌舉辦的展覽和活動。我們的新款滑板車在揚州 North Face Mountain 音樂節和廣州 Sneaker Con 期間展出。這些機會使我們能夠在現場和網上向更多、更多樣化的受眾展示一個新品牌。通過這些舉措，我們成功地將小牛汽車定位為城市出行領域的領導者和理想的生活方式合作夥伴。我們將繼續利用戰略合作和備受矚目的活動來提高我們的品牌知名度、吸引新客戶並鞏固我們作為城市出行解決方案首選品牌的地位。

Now on the overseas market, we delivered a mixed result with sales of electric 2-wheelers driving by 68%, and the sales of micro mobility categories increased by 48%. For the electric 2-wheeler market, we released the (inaudible) plan of being improved 125 cc high-performance product in the second half of 2023 to fill in the current vacancy in our product offerings in order to regain growth. We have experienced some challenges in electric 2-wheeler market this quarter, primarily driven by the economic slowdown in our key European markets. The economic downturn, combined with gaps in our product portfolio in terms of high-performance electric scooters, has added to the challenges.

目前在海外市場，我們的成績好壞參半，電動兩輪車銷量增長了68%，微型出行品類銷量增長了48%。對於電動兩輪車市場，我們發布了（聽不清）計劃，將在 2023 年下半年改進 125 cc 高性能產品，以填補​​目前產品供應的空缺，以恢復增長。本季度我們在電動兩輪車市場遇到了一些挑戰，主要是由於我們主要歐洲市場的經濟放緩所致。經濟低迷，加上我們在高性能電動滑板車產品組合方面的差距，增加了挑戰。

Another factor impacted our performance is increase in lithium battery price in 2022, which has continued to affect our sales this quarter in Europe. However, our international distribution partners are eagerly awaiting for the schedule of Q3 rollout of the performance upgrade high-performance scooters. They're also anticipating a pricing adjustment as lithium value price stabilizes and return to the normal levels.

影響我們業績的另一個因素是2022年鋰電池價格上漲，這繼續影響我們本季度在歐洲的銷售。然而，我們的國際分銷合作夥伴正在熱切等待第三季度推出性能升級高性能踏板車的時間表。他們還預計，隨著鋰價價格穩定並恢復到正常水平，價格將會調整。

In the Southeast Asian market, however, we have observed a trend of rising demand in electric 2-wheelers, we have delivered electric moped battery swapping solutions with swappable batteries and battery charging cabinets. We're currently working closely with local partners in bringing this solution, allowing the operators to combine selling the moped chassis and renting the batteries, which practice was substantially lower the upfront cost of purchasing electric moped. We plan to official to deliver the battery swapping solutions along with the first model that is compatible for battery swap into our local Southeast Asia partners in the second half.

然而，在東南亞市場，我們觀察到電動兩輪車需求不斷增長的趨勢，我們提供了電動助力車電池更換解決方案，包括可更換電池和電池充電櫃。我們目前正在與當地合作夥伴密切合作，推出這一解決方案，允許運營商將銷售輕便摩托車底盤和租賃電池結合起來，這種做法大大降低了購買電動輕便摩托車的前期成本。我們計劃在下半年正式向我們當地的東南亞合作夥伴提供換電解決方案以及第一款兼容換電的型號。

Now our micro mobility product has shown stable growth this year with a year-over-year increase of 48%. This growth has been driven by both our diversified product portfolio and our expanded sales network. Our current product offering cater to a wide range of market demand. We have high end high performance product at $800 to $900 price range as well as entry-level options in the $300 to $400 range. This diversity allowed us to cater to a broader spectrum of customers' needs and preferences.

現在我們的微出行產品今年呈現穩定增長，同比增長48%。這種增長是由我們多元化的產品組合和擴大的銷售網絡推動的。我們當前的產品滿足廣泛的市場需求。我們提供價格範圍為 800 至 900 美元的高端高性能產品，以及價格範圍為 300 至 400 美元的入門級產品。這種多樣性使我們能夠滿足更廣泛的客戶需求和偏好。

Moving forward, we have a plan to further diversify our product portfolio, and we'll be rolling out more products in the second half 2023. Now we're pleased to share our kick scooter product that received significant attention recognition. The KQi2 and KQi YOUTH+ plus scooters were honored with the Prestige iF Design Award 2023, a testament to our commitment to innovative design and functionality.

展望未來，我們計劃進一步豐富我們的產品組合，我們將在 2023 年下半年推出更多產品。現在我們很高興與大家分享我們受到廣泛關注的滑板車產品。 KQi2 和 KQi YOUTH+ plus 滑板車榮獲 2023 年 Prestige iF 設計獎，證明了我們對創新設計和功能的承諾。

Further solidifying our outstanding in industry, the KQI3 Pro was selected as the Gold Winner 2023 of the New York Product Design Awards. And the KQi3 MAX scooter has been the recipient of the best electric scooter from [Tom Sky] Award. Most recently, the Rider Guide awards have named our KQi3 MAX scooter as the best high-performance commuter and our KQi2 as the best electric scooter under $600. Now the recognition of this product from this market enable us to continue to expand our gross sales network. As of August 2023, new products are available in over 400 retail stores in the U.S. and over 700 in Europe through retail partners. This sales network has laid a solid foundation for ramping up our product sales in the coming quarters. Other than expanding the sales channel coverage in this quarter, we leveraged the presence of our online channel to successfully bring up sales. In June, we initiated anniversary sales campaign time for News 8's anniversary.

KQI3 Pro 榮獲 2023 年紐約產品設計獎金獎，進一步鞏固了我們在行業中的傑出表現。其中KQi3 MAX滑板車榮獲【Tom Sky】最佳電動滑板車獎。最近，Rider Guide 獎項將我們的 KQi3 MAX 踏板車評為最佳高性能通勤車，將 KQi2 評為 600 美元以下最佳電動踏板車。現在該產品得到市場的認可使我們能夠繼續擴大我們的銷售網絡。截至 2023 年 8 月，新產品通過零售合作夥伴在美國 400 多家零售店和歐洲 700 多家零售店出售。這個銷售網絡為我們未來幾個季度提高產品銷量奠定了堅實的基礎。本季度除了擴大銷售渠道覆蓋範圍外，我們還利用在線渠道成功提高了銷售額。 6月，我們為News 8週年紀念日啟動了周年促銷活動。

We launched a series of events from giveaway campaigns to special sales promotions to engage new and existing users. The anniversary sales campaign generated total around 1.5 million views. Now in terms of marketing performance, we have continued to collaborate with influence search to strengthen our brand presence in the market. In the first half of 2023, we worked with over 50 influencers who boost large fan base. Through a co-created content featuring new product, we have been able to generate over 1.2 million views. Alongside our influencer collaborations, we have also forged partnerships with local business to further expand our brand presence.

我們推出了一系列活動，從贈品活動到特別促銷活動，以吸引新用戶和現有用戶。週年紀念銷售活動總共產生了約 150 萬次瀏覽。現在在營銷表現方面，我們繼續與影響力搜索合作，以加強我們的品牌在市場上的影響力。 2023 年上半年，我們與 50 多名有影響力的人合作，他們增加了龐大的粉絲群。通過共同創作的新產品內容，我們已經獲得了超過 120 萬次觀看。除了與影響力人士合作外，我們還與當地企業建立了合作夥伴關係，以進一步擴大我們的品牌影響力。

Now other than the partnership, Niu has been actively participating in event exhibitions worldwide making the global appearances showcase our products and brand values. We participated in North America's largest electric vehicle festival, they Electrify Expo in Los Angeles and San Francisco, and there was a plan to go to Expo in New York and Miami later this year.

現在除了合作之外，小牛還積極參加世界各地的活動展覽，在全球亮相展示我們的產品和品牌價值。我們參加了北美最大的電動汽車節，他們在洛杉磯和舊金山舉辦的Electrify Expo，併計劃今年晚些時候去紐約和邁阿密舉辦的Expo。

We're currently preparing to making the product appearances of a few of our key products and some of the largest consumer electronic trade shows such as EFA and ACMA and looking forward to share the details in a few months. Now as a promoter of sustainable leading for, we are dedicated to providing our customers with more environmental friendly smart urban vehicles to make a positive impact on the environment.

我們目前正準備在 EFA 和 ACMA 等一些最大的消費電子貿易展上展示我們的一些關鍵產品，並期待在幾個月內分享詳細信息。如今，作為可持續領先的推動者，我們致力於為客戶提供更加環保的智能城市車輛，為環境做出積極的影響。

We're spreading the ideas of sustainable living through not just our product, but also our daily operations. In this quarter, we continued with the renewed global sustainability initiative designed to renew our planet as part of our Earth Day campaign. In this year's Earth Day cleanup events, we will attract participants across Bali, Nepal Guatemala, Hawaii, Dominican Republic to go on street riding Niu scooters and promote environmental friendly lifestyle.

我們不僅通過我們的產品，而且通過我們的日常運營傳播可持續生活的理念。在本季度，作為地球日活動的一部分，我們繼續實施新的全球可持續發展倡議，旨在更新我們的星球。在今年的地球日清潔活動中，我們將吸引巴厘島、尼泊爾、危地馬拉、夏威夷、多米尼加共和國的參與者上街騎行小牛滑板車，倡導環保生活方式。

Now looking ahead to the second half of 2023, we remain optimistic to -- for both our China international market. The China market has already shown signs of recovery this quarter, largely driven by the launch of new products. We anticipate this growth in sales will continue into Q3 as we begin to deliver those new products to the market. Our focus on the premium market has also enhanced our brand recognition, thanks to our branding and marketing activities. However, we are also currently facing some temporary disruptions in some of our key cities due to some regulatory changes. For instance, regulatory changes in electric bicycles in Guangzhou and other cities who propose limited use of electric bicycle on the main roads during rush hours could potentially affect our sales in the short-term uncertainties.

現在展望 2023 年下半年，我們對中國國際市場保持樂觀。中國市場本季度已經出現復甦跡象，主要是受新產品推出的推動。我們預計，隨著我們開始向市場交付這些新產品，這種銷售增長將持續到第三季度。由於我們的品牌和營銷活動，我們對高端市場的關注也提高了我們的品牌認知度。然而，由於一些監管變化，我們目前在一些主要城市也面臨一些暫時的干擾。例如，廣州等城市對電動自行車的監管變化，建議在高峰時段限制在主要道路上使用電動自行車，這可能會在短期不確定性下影響我們的銷售。

Now regarding to the overseas market, we anticipate regaining growth in the electric 2-wheeler categories as we roll out our high-performance electric moped in Europe and introduced our battery swapping solution in Southeast Asia in the second half. However, due to uncertainties and the macroeconomic factors, we expect the growth may take time to fully manifest in our sales performance. Conversely, for the micro mobility categories, we're confident that we can maintain healthy, stable growth through our continuous channel expansion and brand recognition building supported by our established product portfolio. We also plan to release a major product portfolio upgrades later this year, which we believe will drive both sales volume and margin improvement over the long term.

現在就海外市場而言，隨著下半年我們在歐洲推出高性能電動輕便摩托車並在東南亞推出電池更換解決方案，我們預計電動兩輪車類別將恢復增長。然而，由於不確定性和宏觀經濟因素，我們預計增長可能需要一段時間才能完全體現在我們的銷售業績中。相反，對於微移動類別，我們有信心通過我們現有的產品組合支持的持續渠道擴張和品牌知名度建設，我們可以保持健康、穩定的增長。我們還計劃在今年晚些時候發布主要的產品組合升級，我們相信這將在長期內推動銷量和利潤率的提高。

Now I'll turn the call over to our CFO, Fion.

現在我將把電話轉給我們的首席財務官 Fion。

Thank you, Yan, and hello, everyone. First, before I started to talk about our financial performance. We are pleased to announce that our 2022 ESG report is also being available on our IR website today. Our smart electronic 2-wheeled vehicles provided a clean alternative for urban mobility that make cities more livable and sustainable when compared with traditional ICE vehicles and electronic vehicles, which continue to congest the roads. Niu has a unique opportunity to play a pivotal role in driving this trend through the design and manufacturing of high-performance electronic motorcycles, mopeds, bicycles and kick scooters.

謝謝嚴老師，大家好。首先，在我開始談論我們的財務業績之前。我們很高興地宣布，我們的 2022 年 ESG 報告今天也在我們的 IR 網站上發布。我們的智能電子兩輪汽車為城市交通提供了一種清潔的替代方案，與持續擁堵道路的傳統內燃機汽車和電動汽車相比，使城市更加宜居和可持續。 Niu 擁有獨特的機會，可以通過設計和製造高性能電動摩托車、輕便摩托車、自行車和踏板車，在推動這一趨勢方面發揮關鍵作用。

Our diversified product portfolio directly addresses the global shift in consumer preference. As of today, we have sold more than 3.8 million scooters across the globe enabling users to cover a distance of nearly 20 billion kilometers. This collective effort has resulted in a sustainable reduction of carbon emissions by nearly 4.8 million tons. And for more ESG-related information, please feel free to find a full 2022 ESG report on our IR website.

我們多元化的產品組合直接應對全球消費者偏好的轉變。截至目前，我們已在全球銷售了超過 380 萬輛滑板車，幫助用戶行駛了近 200 億公里的距離。這一集體努力使碳排放可持續減少了近 480 萬噸。如需了解更多 ESG 相關信息，請隨時在我們的 IR 網站上查找完整的 2022 年 ESG 報告。

And now back to financial. 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 easy reference. As I review our financial results, referring to the second quarter figures, unless I say otherwise, and all monetary figures are in RMB, if not specified.

現在回到金融。請注意，我們的新聞稿包含您需要的所有數據和比較。我們還將 Excel 格式的數據上傳到我們的 IR 網站，以方便您參考。當我回顧我們的財務業績時，除非我另有說明，否則指的是第二季度的數據，如果沒有具體說明，所有貨幣數據均以人民幣為單位。

During the second quarter, our company achieved a total sales volume of 212,000 units. Of this figure, 179,000 units were sold in China market while the remaining 33,000 units were sold overseas. Over 60% of the sales volume in China contributed by our new launched products. Our MQi model stands out contributing about 1/3 of the total sales volume. G400 and G400T offered multiple proper scooter choices to our consumers. In terms of the overseas sales, the kick scooter reached 30,000 sales units, which accounted for over 90% of the total sales and international sales representing an increase of 45% year-over-year and 179% quarter-over-quarter.

第二季度，我公司實現總銷量21.2萬輛。其中，中國市場銷售17.9萬輛，海外銷售3.3萬輛。我們新推出的產品貢獻了中國60%以上的銷量。我們的 MQi 模型脫穎而出，貢獻了約 1/3 的總銷量。 G400和G400T為我們的消費者提供了多種合適的滑板車選擇。海外銷量方面，滑板車銷量達到3萬輛，佔總銷量90%以上，國際銷量同比增長45%，環比增長179%。

The total revenue for the second quarter amounted to RMB 829 million, RMB 1 million slightly increased compared to the same period of last year. In China market revenue were RMB 698 million accounted for 85% of the total revenue. Amounting this, the China scooter revenue was RMB 639 million increased 7.1% year-over-year, and this increase was mainly driven by the strategic optimization of premium product mix.

第二季度總收入為人民幣8.29億元，較去年同期微增人民幣100萬元。中國市場收入為人民幣6.98億元，佔總收入的85%。由此計算，中國滑板車收入為人民幣6.39億元，同比增長7.1%，增長主要得益於高端產品結構的戰略優化。

The China scooter ASP was RMB 3,577 increased 8% year-over-year. This growth of ASP is due to the launch of our new models, whose retail price range was RMB 4,599 to RMB 8,299 depending on different versions. The overseas market revenue were RMB 130 million, accounted for 15.7% of the total revenue.

中國踏板車平均售價為人民幣3,577元，同比增長8%。平均售價的增長歸因於我們新車型的推出，根據不同版本，其零售價範圍為人民幣 4,​​599 元至人民幣 8,299 元。海外市場收入1.3億元，佔總收入15.7%。

The overseas scooter revenue increase, including e-motorcycles, e-mopeds, kick scooters and e-bikes amounted to RMB 115 million compared to RMB 146 million in the same period of last year. And this decrease was mainly due to the decline in sales of e-motorcycles and e-mopeds. While the micro mobility revenue still show significant growth momentum reaching RMB 90 million, up 127% quarter-over-quarter and 33% year-over-year. The overseas scooter ASP decreased from RMB 5,122 to RMB 3,430 year-over-year, mainly due to a higher proportion of fixed work sales, whose ASP is less than 1/3 of the e-motorcycle and e-moped.

包括電動摩托車、電動輕便摩托車、踏板車和電動自行車在內的海外踏板車收入增長達人民幣1.15億元，而去年同期為人民幣1.46億元。而這一下降主要是由於電動摩托車和電動輕便摩托車銷量下降所致。而微出行收入仍呈現顯著增長勢頭，達到人民幣9000萬元，環比增長127%，同比增長33%。海外踏板車平均售價同比從5,122元下降至3,430元，主要是由於固定作業銷售佔比較高，其平均售價不到電動摩托車和電動助力車的1/3。

The revenue from accessories, spare parts and services amounted to $75 million, marked a 11% decrease compared to the same period of last year. And this decline was mainly driven by the overseas battery pack sales reduction, as we mentioned in previous quarters. The second quarter gross margin increased by 2.8 ppt year-over-year or 1.4 ppt quarter-over-quarter, reaching 23.1%. Among this, 1.4 ppt mainly due to a higher ASP in new domestic products and 1.3 ppt mainly due to the decreased cost both in electronics 2-wheelers and kick scooters. One thing to be noted is that our gross margin has reached a record high, and we plan to pass this part of gain to channel and sales network to support our partnership.

配件、備件及服務收入為7500萬美元，較去年同期下降11%。正如我們在前幾個季度提到的，這一下降主要是由於海外電池組銷量減少所致。第二季度毛利率同比增長2.8個百分點，環比增長1.4個百分點，達到23.1%。其中，1.4 個百分點主要由於國內新產品平均售價較高，1.3 個百分點主要由於電子兩輪車和踏板車成本下降。需要注意的一點是，我們的毛利率已創歷史新高，我們計劃將這部分收益轉嫁給渠道和銷售網絡，以支持我們的合作夥伴關係。

Our second quarter OpEx amounted to RMB 199 million, representing a 14.9% increase compared to the same period of last year and selling and marketing expenses were RMB 110 million, representing a $17 million increase year-over-year, primarily due to our overseas micromobility business expansion, which resulted in increases in promotions, logistics and rental expenses. Research and development expenses amounted to RMB 41 million, representing a RMB 3.2 million decrease year-over-year, primarily due to an increase in staff cost of RMB 2.1 million and a decrease in system development, professional fees of RMB 1.7 million.

我們第二季度的運營支出為人民幣1.99億元，同比增長14.9%，銷售和營銷費用為人民幣1.1億元，同比增長1700萬美元，主要得益於我們的海外微出行業務擴張，導致促銷、物流和租賃費用增加。研發費用為人民幣4,100萬元，同比減少人民幣320萬元，主要是由於員工成本增加人民幣210萬元，系統開發、專業人員費用減少人民幣170萬元。

G&A expenses were RMB 48 million representing a RMB 12 million increase year-over-year, while a RMB 2.4 million decrease quarter-over-quarter. We have made a provision for a credit loss of RMB 33 million However, if we exclude this provision, G&A expenses decreased by 48% compared to last quarter and decreased by 50% compared to the same period of last year.

一般及行政費用為人民幣 4800 萬元，同比增加人民幣 1200 萬元，環比減少人民幣 240 萬元。我們計提了人民幣 3300 萬元的信用損失撥備。但是，如果剔除此項撥備，G&A 費用較上季度下降 48%，較去年同期下降 50%。

With the expansion of our international operations, the extent of account receivable, which forms the basis for computing bad debt provision has correspondingly increased. As we mentioned in the previous quarters, we've noticed a sense of caution in Europe's consumer sentiment and leading our distributors to ask for extended payment terms due to a weak retail sales. Despite prudently raising provisions for credit loss on overdue payments, we retain our positive outlook on future receivable collections, given our partners robust financial spending and their ongoing payments continuously.

隨著我們國際業務的擴大，作為計提壞賬準備基礎的應收賬款規模也相應增加。正如我們在前幾個季度提到的，我們注意到歐洲消費者情緒出現謹慎情緒，並導致我們的分銷商因零售銷售疲軟而要求延長付款期限。儘管審慎地提高了逾期付款信用損失撥備，但鑑於我們的合作夥伴強勁的財務支出及其持續付款，我們對未來應收賬款催收仍保持樂觀的前景。

In the second quarter, our net loss was RMB 2 million on the GAAP measurement compared to a net profit of RMB 14 million for the same period of last year.

第二季度，按照 GAAP 衡量，我們的淨虧損為 200 萬元人民幣，而去年同期淨利潤為 1400 萬元人民幣。

And turning to our balance sheet and cash flow. We ended the quarter with RMB 1.1 billion in cash, restricted cash from deposits and short-term investments. Operating cash flow was positive RMB 217 million compared to negative RMB 33 million in the same period of last year and negative RMB 66 million last quarter. The bridge improvement was primarily due to favorable credit terms with our suppliers and delicacy management. Our CapEx for the second quarter amounted to RMB 15 million, remaining stable for the past 5 quarters.

轉向我們的資產負債表和現金流。截至本季度末，我們持有現金 11 億元人民幣，其中包括來自存款和短期投資的限制性現金。經營現金流為正人民幣2.17億元，去年同期為負人民幣3300萬元，上季度為負人民幣6600萬元。橋樑的改善主要歸功於我們與供應商的優惠信用條件和精細化管理。我們第二季度的資本支出為人民幣 1500 萬元，過去 5 個季度保持穩定。

And now let's turn to guidance. we expect the third quarter revenue to be in the range of RMB 1.15 billion to RMB 1.33 billion, representing a year-over-year flat to a 15% increase. Please be aware that this outlook is based on information available as of today and reflects the company's current and preliminary expectations, which was subject to change due to uncertainties relating to various factors.

現在讓我們轉向指導。我們預計第三季度營收在11.5億元人民幣至13.3億元人民幣之間，同比持平至增長15%。請注意，這一展望基於截至目前的可用信息，反映了公司當前和初步預期，由於各種因素的不確定性，該預期可能會發生變化。

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

現在，我們將開始電話詢問您可能向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.

（操作員指令） 我們的第一個問題來自中金公司的陳雅婷。

Congratulations for your earnings result in the second quarter 2023. I have 3 questions. The first one is, could you please give us a breakdown of the revenue guidance of third quarter '23? This is my first question.

恭喜貴公司 2023 年第二季度的盈利結果。我有 3 個問題。第一個問題是，您能否給我們詳細介紹一下 23 年第三季度的收入指導？這是我的第一個問題。

So Yating, you are asking about the breakdown of the third quarter revenue guidance, right?

那麼雅婷，您問的是第三季度收入指引的細目，對吧？

Yes.

是的。

All right. So actually, we don't give the details of the guidance, actually, we expect the sales volume in the third quarter that we may expect to around more than 10% increase branded altogether. And also, we expect the ASP, the blended ASP remains a little bit increased compared to quarter 2 considering the Chinese sales volume increase and the proportion of the domestic sales volume versus the overseas sales volume will be around 85% versus 15%. So that means we would expect the branded sales volume of the scooters, this is the scooter revenue. And we also expect it around 8% to 10% non-scooter revenue for our services and spare parts and accessories. And altogether, those are all kinds of revenue we will combine at around RMB 1.15 billion to RMB 1.33 billion. This is our expectation regarding the quarter 3 revenue.

好的。所以實際上，我們沒有給出指導的細節，實際上，我們預計第三季度的品牌銷量可能會增加 10% 以上。此外，考慮到中國銷量的增長以及國內銷量與海外銷量的比例將在 85% 和 15% 左右，我們預計平均售價與第二季度相比仍將略有上升。這意味著我們預計滑板車的品牌銷量，這就是滑板車的收入。我們還預計我們的服務和備件及配件將佔非踏板車收入的 8% 至 10% 左右。總的來說，這些收入合計約為 11.5 億元至 13.3 億元人民幣。這是我們對第三季度收入的預期。

Okay. Actually, we expect the new products released in the third quarter and the second quarter to whose sales volume keeps going in the third quarter? And my second question is about the reason for the gross profit margin in the second quarter because we have seen it keeps -- it had a year-on-year and quarter-on-quarter increase. And can it maintain in the high level in the third quarter?

好的。其實我們預計第三季度和第二季度發布的新品誰的銷量能夠在第三季度繼續保持下去呢？我的第二個問題是關於第二季度毛利率的原因，因為我們看到它保持了同比和環比的增長。第三季度能否維持高位？

Well, actually, if we don't make any support to our sales channel and also the retail stores. Normally, our domestic gross margin will stay at an even higher level of the gross margin compared to quarter 2. Since in quarter 2, we -- our new products only launched half of the quarter instead of the entire quarter. While in quarter 3, actually, our new products will release their comparative advantages in the retail market, so that we will get an even higher gross margin. This is before we made any sales policies to support our sales channel distributors and also the retail stores. Well, we already made a decision to compensate or to transfer those gains to our sales channels to boost their retail traffic and also the retail market share.

好吧，實際上，如果我們不對我們的銷售渠道和零售店提供任何支持。一般情況下，我們國內的毛利率會比第二季度保持在更高的毛利率水平。從第二季度開始，我們的新產品只推出了半個季度，而不是整個季度。而到了第三季度，實際上我們的新產品會在零售市場上釋放出比較優勢，這樣我們就會獲得更高的毛利率。這是在我們制定任何銷售政策來支持我們的銷售渠道分銷商和零售店之前的情況。那麼，我們已經決定補償或將這些收益轉移到我們的銷售渠道，以增加他們的零售流量和零售市場份額。

And that's why when we ended the quarter, we expect that the domestic gross margin, we will give up around 1 ppt gross margin to the retail channel. So in quarters, we only expect the blended gross margin for our group will be around 20% to 23%, which may -- the most possible way that our blended gross margin will fall into the range of 22.5% or something around this gross margin range. We won't expect the quarter 3 gross margin reach 23%, those high.

這就是為什麼當我們季度末時，我們預計國內毛利率，我們將放棄 1 個百分點左右的毛利率給零售渠道。因此，在幾個季度中，我們只預計我們集團的混合毛利率將在 20% 至 23% 左右，這可能是我們的混合毛利率最有可能落入 22.5% 或該毛利率左右的範圍內範圍。我們預計第三季度的毛利率不會達到 23%，這麼高。

Okay. Very clear. And my last question is about what is your opinion on development of electric motorcycles overseas, especially in Europe and Southeast Asia because we have seen that the consumers' demand was weak in the past several seasons. So I wonder what is your opinion about that, especially on the consumers' demand not to [beat]?

好的。非常清楚。我的最後一個問題是，您對海外電動摩托車的發展有何看法，特別是在歐洲和東南亞，因為我們看到過去幾個季度消費者的需求疲軟。所以我想知道您對此有何看法，特別是對於消費者不[毆打]的要求？

Great. No, I think that's a good question. So we had to look at this market from -- so I think we had to separate the European market and the Southeast Asia market. So we actually observed data in the European market, the electric scooter, what we call the electric moped and electric motorcycles. The actual sales has been declining in the first half this year versus last year. I think this is exactly what you mentioned. It's the weak economy and the electric has been -- compared with petrol electric is a bit more expensive. And it's a big item purchase. We're looking at about into electric moped motorcycle there about basically about EUR 5,000, anywhere between EUR 4,000 to EUR 5,000. So it has been weak. So we're actually being cautious about how that market -- the outlook of that market going forward.

偉大的。不，我認為這是一個好問題。所以我們必須從——所以我認為我們必須將歐洲市場和東南亞市場分開。所以我們實際上觀察了歐洲市場的數據，電動滑板車，我們所說的電動輕便摩托車和電動摩托車。今年上半年實際銷量較去年有所下降。我想這正是你提到的。由於經濟疲軟，電動汽車一直如此——與汽油電動汽車相比，它的價格要貴一些。而且這是一筆大件採購。我們正在考慮購買電動助力摩托車，價格大約為 5,000 歐元，介於 4,000 歐元到 5,000 歐元之間。所以一直很弱。因此，我們實際上對該市場的前景持謹慎態度。

The upside for our case is, if you look at the first half of this year, we actually -- we didn't do well in Europe. But while one is because the economy is weak and second is, we didn't really -- our 125 cc motorcycle upgrade didn't got to market in the first half of this year. But that particular product line will be in the market second half of this year. So even though the market is weak, but we're missing like -- really we're missing 1 big chunk of the product. And with that product coming in, that will actually help us in terms of European market, even in a weak market. Now Southeast Asia is very different. So last year, we put a tremendous growth in Southeast Asia. I think we doubled in Southeast Asia.

我們的情況的好處是，如果你看看今年上半年，我們實際上 - 我們在歐洲做得不好。但是，一是因為經濟疲軟，二是我們實際上沒有——我們的 125 cc 摩托車升級版在今年上半年沒有上市。但該特定產品線將於今年下半年投放市場。因此，儘管市場疲軟，但我們確實缺少了產品的一大塊。隨著該產品的推出，即使在市場疲軟的情況下，這實際上也會對我們在歐洲市場的發展有所幫助。現在東南亞已經很不一樣了。所以去年我們在東南亞實現了巨大的增長。我認為我們在東南亞的業務增長了一倍。

And when you look at this year, the Southeast Asia market, we look at Thailand, we look at Indonesia, those market has been growing. So -- and we actually have products more a suitable product for Southeast Asia, the particular product will be throughout second half of this year, supporting the battery swappings. So I think from -- if I had to take sort of the forecast we can this year, we're probably looking at a better growth in the Southeast Asia because the market is growing. We're rolling out new products in Southeast Asia, more suitable for that market, where the European market, the economy is weak, but we do have a 125 cc upgraded product to offset that weak economy.

當你看看今年的東南亞市場時，我們看看泰國，我們看看印度尼西亞，這些市場一直在增長。所以——我們實際上有更適合東南亞的產品，該產品將在今年下半年上市，支持電池更換。因此，我認為，如果我必須做出今年的預測，我們可能會看到東南亞的增長更好，因為市場正在增長。我們正在東南亞推出新產品，更適合那個市場，歐洲市場經濟疲軟，但我們確實有125cc的升級產品來抵消疲軟的經濟。

And one more question. I just want to know where the number of channels domestic will grow in third quarter and the fourth quarter?

還有一個問題。我只想知道第三季度和第四季度國內渠道數量會增長到哪裡？

I think if we look at the store's growth, I think basically in the second half of this year, we look at more stores. I think whether it's happening in Q3 or later half of Q3 versus Q4, I would imagine it's actually more on the Q4. I think the current planning is more in Q4 than Q3 because Q3 typically is like hot season for China. So typically, when we grow the channels essentially a lot of times, it's not opening new stores. It's converting stores from other brands. And it's actually very difficult in the hot seasons. So Q4 is usually a season where you see stores start to switch and new store build out. So I think that's sort of in line with our plan as well for Q4.

我認為如果我們看看商店的增長，我認為基本上在今年下半年，我們會看到更多的商店。我認為無論是發生在第三季度還是第三季度與第四季度的後半段，我想它實際上更多地發生在第四季度。我認為目前的計劃更多是在第四季度而不是第三季度，因為第三季度對中國來說通常是炎熱的季節。因此，通常情況下，當我們多次擴大渠道時，並不是開設新店。它正在改造其他品牌的商店。在炎熱的季節裡，這實際上是非常困難的。因此，第四季度通常是商店開始更換和開設新商店的季節。所以我認為這也符合我們第四季度的計劃。

(Operator Instructions) There are no further questions at this time. So I will hand the call back for closing remarks.

（操作員說明） 目前沒有其他問題。因此，我將回電以供結束語。

All right. 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. Thank you.

好的。謝謝接線員，也感謝大家參加今天的電話會議並給予支持。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。謝謝。

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

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。發言者請稍候。