小牛電動 (NIU) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies third quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. And later we will conduct a question-and -answer session and instructions will follow at that time. As a reminder, we are recording for today 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 年第三季財報電話會議。此時，所有參與者都處於只聽模式。稍後我們將進行問答環節，屆時將給予指示。提醒一下，我們正在為今天的電話錄音。如果您有任何異議，您可以此時斷開連接。

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

現在我想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.

謝謝你，接線生。

Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the third quarter 2023. The earnings press release, corporate presentation, and financial spreadsheet had been posted on our Investor Relations website. This call is being webcast from company's IR site as well, and the replay of the call will be available soon. Please note today's discussion will contain forward-looking statements made under the Safe Harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involves risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding those 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.

大家好。歡迎參加今天的電話會議，討論小牛科技 2023 年第三季的業績。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。該電話會議也透過該公司的 IR 網站進行網路直播，並且很快就會提供電話會議的重播。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有重大差異。有關這些風險因素的更多資​​訊包含在該公司向美國證券交易委員會提交的公開文件中。除法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

All of the remaining earnings press release and this call include discussion of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Fion Zhao.

所有剩餘的收益新聞稿和本次電話會議都包括對某些非公認會計準則財務指標的討論。新聞稿包含非公認會計準則財務指標的定義以及公認會計準則與非公認會計準則財務績效的調整表。今天與我通話的是我們的執行長李岩博士和財務長趙菲昂女士。

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

現在讓我把電話轉給執行長嚴。

Thank you, everyone, for joining us on the call today. In Q3 2023, our total sales volume was 265,923 units with a year-over-year decrease of 71%. Specifically, sales volume in the China market had a year-over-year drop of 12% to 230,445 units. And the sales volume in the overseas market experienced a year-over-year of 38% decrease to 35,468 units. Total revenue in Q3 2023 was RMB 927 million, a decrease of 19% year-over-year. In the China market during Q3, we encountered setbacks due to a sluggish consumption in top tier cities resulted in a slowdown in sales of our product. To address this challenge in Q3, we expand our product portfolio with a diverse design and functionality to address a wider customer needs. And it was the diversified product portfolio we plan to expand our retail coverage for greater market range in Q4 2023 and beyond.

謝謝大家今天加入我們的電話會議。 2023年第三季度，我們的總銷量為265,923輛，年減71%。其中，中國市場銷量較去年同期下降12%至230,445輛。海外市場銷量較去年同期下降38%至35,468輛。 2023年第三季總收入為人民幣9.27億元，年減19%。第三季在中國市場，由於第一線城市消費低迷，導致我們的產品銷售放緩，我們遇到了挫折。為了在第三季應對這項挑戰，我們透過多樣化的設計和功能擴展了我們的產品組合，以滿足更廣泛的客戶需求。我們計劃在 2023 年第四季及以後擴大我們的零售覆蓋範圍，以擴大市場範圍，從而實現多元化的產品組合。

In the overseas electric two-wheeler market, we have experienced a year-over-year decline of 62%, influenced by a combination of challenging factors. The decline in the electric two-wheeler marketing, our key market, Germany and Netherlands has impact our business. Additionally, we have also faced a temporary disruption in the key European markets due to operational difficulties faced by our distribution partner, which has further affected our sales performance in this period. In response to those challenges we have encountered, we had implement two strategic adjustments. Expanding the product portfolio to expand our addressable market and operational adjustment to a result of temporary disruption. We introduced key electric motorcycles and off-road motorcycle product to the European and North American market to expand our addressable market beyond the electric moped.

在海外電動兩輪車市場，受多重挑戰因素影響，較去年同期下降62%。我們的主要市場德國和荷蘭電動兩輪車行銷的下滑影響了我們的業務。此外，由於我們的分銷合作夥伴面臨營運困難，我們在歐洲主要市場也面臨暫時的干擾，這進一步影響了我們在此期間的銷售業績。針對這些挑戰，我們進行了兩次策略調整。擴大產品組合以擴大我們的潛在市場，並根據暫時中斷進行營運調整。我們將主要電動摩托車和越野摩托車產品引入歐洲和北美市場，以將我們的目標市場擴展到電動輕便摩托車之外。

For the Southeast Asia market, we have officially introduced the battery swapping solutions with compatible swap batteries and mopeds. Operationally, we're also working with our distribution partner and retail partners closely to re-rent the retail operations in the key markets. The overseas micro mobility market has seen a year-over-year decrease of 37% in sales. This downturn is primarily attribute to the selling order delays in Q3. Despite the decline in the selling volume, we recorded highest number of kick-scooter activations in this quarter. The number of activation in Q3 show a significant year-over-year increase of 80%. This increase in product activation can be largely attributed to our comprehensive product portfolio and the expansion of sales network, both online, offline, and the key market channels. In addition, during Q3, we launched the innovative KQi Air kick-scooter for presales, which has been well-received in the market. We're continuously working on expanding our sales channel penetrations, aiming to reach a broader customer base and reinforce our market presence. We expect to get back to the growth track in the coming quarters in time for the holiday season.

針對東南亞市場，我們正式推出了相容於更換電池和輕型摩托車的換電解決方案。在營運方面，我們也與分銷合作夥伴和零售合作夥伴密切合作，在主要市場重新出租零售業務。海外微型出行市場銷售量較去年同期下降37%。這種低迷主要歸因於第三季的銷售訂單延遲。儘管銷量下降，但我們在本季度創下了滑板車激活數量最高的記錄。第三季啟動數量較去年同期大幅成長80%。產品活化的增加很大程度上歸功於我們全面的產品組合以及線上、線下和主要市場通路銷售網路的擴張。此外，第三季度，我們推出了創新的KQi Air滑板車進行預售，受到了市場的好評。我們不斷努力擴大我們的銷售管道滲透率，旨在涵蓋更廣泛的客戶群並加強我們的市場佔有率。我們預計將在未來幾季趕上假期季節回到成長軌道。

So let me delve into the China market in detail. In this quarter, we continued to build our product portfolio with a diverse design style and functionality to address a wider customer needs. We introduced Q2 2023, the MQiL, emerged as successful addition on our product lineup. It is a product that inherits the design from our all-time classic M-series, along with the significant upgrade design performance. It has not only contributed positively to our sales volume, but also placed significant role in enhancing our brand image. In Q3, we also successfully introduced the Falcon series, that's a new style with Love Child at F400T and F200 complementing the previously introduced F100 in Q2. Collectively, the entire Falcon series accounted for more than 50% our total sales in this quarter in Q3.

那麼讓我詳細深入研究一下中國市場。本季度，我們繼續建立具有多樣化設計風格和功能的產品組合，以滿足更廣泛的客戶需求。我們在 2023 年第二季推出了 MQIL，它成功地補充了我們的產品陣容。該產品繼承了我們一直以來經典的M系列的設計，並在設計性能上進行了重大升級。它不僅對我們的銷售量做出了積極貢獻，而且對提升我們的品牌形像也發揮了重要作用。在第三季度，我們也成功推出了獵鷹系列，這是一款新款式的愛童F400T和F200，與先前在第二季度推出的F100相補充。總的來說，整個 Falcon 系列占我們第三季總銷量的 50% 以上。

The Falcon series represent our attempt to create another flagship design, which has proven popularity. We plan to run more product within the newly introduced series in the coming quarters. The F400T was introduced in August this year as a remarkable addition to our Falcon series product lineup. This electric bicycle was in inspiration from fighter jets and seamlessly incorporated newest essential smart functionalities with the maximum range of 90 kilometers. The F400 design has captured significant attention since its launch. Notably, it took center stage at ChinaJoy, the country's, largest gaming expo, garnered millions of views across all platforms. Another product added this series in Q3 was F200. It is released as a high-power commuter scooters with sports card inspired frame. It has the max range up to 70 kilometers and equipped them with new smart system.

Falcon系列代表了我們創造另一種旗艦設計的嘗試，並且已被證明很受歡迎。我們計劃在未來幾季在新推出的系列中運行更多產品。 F400T 於今年 8 月推出，是我們獵鷹系列產品陣容的重要補充。這款電動自行車的靈感源自戰鬥機，無縫融合了最新的基本智慧功能，最大續航里程可達 90 公里。 F400 的設計自推出以來就引起了廣泛關注。值得注意的是，它在中國最大的遊戲博覽會 ChinaJoy 上佔據了中心舞台，在所有平台上獲得了數百萬次觀看。第三季系列新增的另一款產品是F200。它是一款高功率通勤踏板車，具有受運動卡啟發的框架。它的最大續航里程可達70公里，並配備了全新的智慧系統。

The F200 was also launched with a collaboration with a globally renowned IP Kumamon. Our sales performance during the recent Double 11 shopping festival underscore the popularity of loose those recently launched product. In the first 24 hours of promotion period alone, the preorder sales revenue surpassed the sum of the entire period last year showcasing the robust demand for our offerings. Several of our key products has secure prominent positions on the bestselling list of major platforms, including Tmall and JD.com. Specifically, the latest iteration of our acclaimed SQi electric bicycles has gained significant traction during the Double 11 shopping festival, emerging as the number one, top-selling straddle electric bicycles in RMB 9,000 price range above on Tmall and JD.com.

F200也與全球知名IP熊本熊合作推出。我們在最近的雙11購物節期間的銷售業績突顯了最近推出的寬鬆產品的受歡迎程度。光是促銷期的前24小時，預購銷售收入就超過了去年整個期間的總和，顯示出對我們產品的強勁需求。多款主打產品在天貓、京東等各大平台暢銷榜上佔據顯著位置。具體來說，我們廣受好評的最新款 SQi 電動自行車在雙 11 購物節期間獲得了巨大關注，成為天貓和京東 9,000 元以上價位段最暢銷的跨騎式電動自行車。

Together, our UQi plus F200 and also SQi, has claimed HubSpot's ranking within the top three best-selling product in the electric bicycle categories on Tmall. This highlights a strong customer preference across our diverse product range. We -- remained highly engaged in events and cross-brand collaborations to enhance our brand exposures. In September, we established a presence on the G-Fusion Game Fest 2023, where we brought our F400 to the gaming enthusiasts. We recently forged our official partnership with JD Gaming well, the China's top eSports teams and the finalist in the League of Legends Worlds 2023. Those engagement underscore our commitment to establish a strong brand presence and the forging connections with diverse audience, even in the face of temporary market challenges. We're confident that those initiatives will contribute significantly to our brand exposures and long-term growth prospects.

我們的 UQi 加上 F200 和 SQi 一起，在 HubSpot 中躋身天貓電動自行車類別最暢銷產品前三名。這凸顯了客戶對我們多樣化產品系列的強烈偏好。我們仍然高度參與活動和跨品牌合作，以提高我們的品牌曝光。 9 月，我們參加了 G-Fusion Game Fest 2023，向遊戲愛好者展示了 F400。我們最近與京東遊戲、中國頂級電競隊伍以及2023 年英雄聯盟全球總決賽入圍者建立了官方合作夥伴關係。這些合作強調了我們致力於建立強大的品牌影響力以及與不同受眾建立聯繫的承諾，即使在面對暫時的市場挑戰。我們相信，這些舉措將為我們的品牌曝光和長期成長前景做出重大貢獻。

Now turning into international electric moped market. We faced a challenge in this quarter with a year-over-year decline in the electric moped sales account for 62%. Several factors converge accretive this downturn, including the decline of the electric moped market in the key European countries like Germany and Netherlands, and the temporary operation disruption due to issue encountered by our distribution partner in Europe. While we acknowledge those challenges, we're actively engaged in addressing that breaking the traction in this market. First, we expand our product portfolio beyond electric mopeds widening our addressable markets. We have unveiled several key product ready for Q4 2023 and 2024, that come up in November.

現轉向國際電動輔助車市場。本季我們面臨挑戰，電動助力車銷量較去年同期下降 62%。多種因素共同加劇了這種低迷，包括德國和荷蘭等主要歐洲國家電動摩托車市場的下滑，以及由於我們在歐洲的分銷合作夥伴遇到問題而導致的暫時營運中斷。雖然我們承認這些挑戰，但我們正在積極致力於解決打破這個市場吸引力的問題。首先，我們將產品組合擴展到電動輕便摩托車之外，從而擴大我們的潛在市場。我們已經推出了幾款將於 11 月推出的 2023 年第四季和 2024 年關鍵產品。

One key product that we revealed was XQi3 electric dirt bike. It is designed with a futuristic look with a handful of twists. Aluminum frame colors, integrated with new signature halo light. We have revealed the XQi3 product during the EICMA in Milan, Italy in November, and also brought it to the Electrify Expo launch event in Austin, United States. The XQi3 marked an expansion into the third bike categories and the new XQi3 has attract tremendous amount of attention within the only week since its debut. The XQi have won the 2023 gold winner of the New York Product Design Awards. We'll anticipate making the XQi3 model available to the North American and European market in Q1 2024, and we're confident that will bring up the sales and therefore uplift the [newsprint] recognition.

我們展示的一款關鍵產品是 XQi3 電動越野車。它的設計具有未來主義的外觀，並帶有一些曲折。鋁製框架顏色，與新的標誌性光暈燈整合。我們在 11 月義大利米蘭的 EICMA 展會上展示了 XQi3 產品，並將其帶到了美國奧斯汀的 Electrify Expo 發布會上。 XQi3 標誌著第三自行車類別的擴展，新款 XQi3 自首次亮相以來僅一周內就吸引了巨大的關注。 XQi榮獲2023年紐約產品設計獎金獎。我們預計 XQi3 車型將於 2024 年第一季在北美和歐洲市場上市，我們有信心這將提高銷量，從而提高[新聞紙]的認可度。

Another product we launched for Europe is RQi, newest high-performance urban [clock] electric motorcycles. It is designed to deliver exhilarating city rider with features like dual removal batteries and ABS with a top speed of 110 kilometer per hour and 0-to-50-kilometer power acceleration time, just under the 2.9 seconds. The RQi targeted riders with exciting acceleration experience. The motorcycle is equipped with the integral traction control system, [building] from rear cameras, and the impact detection system making a sophisticated, and it's also a safe riding option. It also comes with newest core smart features. The RQi expected to be available from Q1 2024 in Europe.

我們為歐洲推出的另一款產品是 RQi，最新的高性能城市[時鐘]電動摩托車。它旨在為城市騎乘者提供令人興奮的體驗，具有雙拆卸電池和 ABS 等功能，最高時速可達 110 公里/小時，0 至 50 公里動力加速時間略低於 2.9 秒。 RQi 的目標客戶是具有令人興奮的加速體驗的騎士。該摩托車配備了整合式牽引力控制系統、後置攝影機和碰撞偵測系統，這使得騎乘更加安全。它還配備了最新的核心智慧功能。 RQi 預計將於 2024 年第一季在歐洲推出。

During EICMA, we also brought award-winning XQi to the international market. It features a futuristic design that earns the 2023 Red Dot Best of Best Design Award. The best features the die-cast even body frame with [zero thousand] joint, ensure a seamless integration of form and function. They offer easy handling, making it ideal for city commute. Now, in addition to those electric motorcycle product, we officially launched a new swap battery swapping solutions compatible newly launched F600 e-moped. The swapping technology enables rider to swap batteries quickly reducing downtime and increase the convenience. During EICMA, we have presented NIUswap Cabinets that technical solution provider, collaborating with partners in Europe, Southeast Asia, and South America to deploy the battery swapping cabinets aiming to enter the respective local markets.

在 EICMA 期間，我們也將屢獲殊榮的 XQi 推向了國際市場。它採用未來派設計，榮獲 2023 年紅點最佳設計獎。最好的特點是壓鑄均勻的車身框架具有[零千]接頭，確保形式和功能的無縫融合。它們易於操作，非常適合城市通勤。現在，除了這些電動摩托車產品外，我們還正式推出了新的電池更換解決方案，相容於新推出的F600電動摩托車。更換技術使騎士能夠快速更換電池，減少停機時間並增加便利性。在EICMA期間，我們介紹了技術解決方案供應商NIUswap Cabinets，與歐洲、東南亞和南美的合作夥伴合作部署換電櫃，旨在進入各自的當地市場。

The recent EICMA events presented us a opportunity not only to unveil our latest product, but also engage in meaningful conversations with our key distribution and retail partners. We're actively working with our distribution partner to quickly resolve temporary operational disruptions and get back on the growth trajectory.

最近的 EICMA 活動為我們提供了一個機會，不僅可以展示我們的最新產品，還可以與我們的主要分銷和零售合作夥伴進行有意義的對話。我們正在積極與我們的分銷合作夥伴合作，以快速解決暫時的營運中斷並恢復成長軌道。

Now talking about the overseas micro mobility market. The micro mobility markets reported a 37% year-over-year decrease in sales in Q3. As mentioned earlier, the primary contributing factors due to a selling or a delay in Q3. While the sale -- or activation volume has increased by 80% year-over-year, driven by a diverse product portfolio and expanding sales network. During this quarter, we took a significant step in expanding our product portfolio by unveiling, one of our standout kick-scooter product, the KQi Air and Air X series at a IFA event in Berlin, Germany.

現在說說海外的微旅遊市場。第三季微型行動市場銷售額年減 37%。如前所述，主要影響因素是第三季的銷售或延遲。在多樣化的產品組合和不斷擴大的銷售網絡的推動下，銷售量或激活量同比增長了 80%。本季度，我們在德國柏林舉行的 IFA 活動上推出了我們最出色的滑板車產品之一 KQi Air 和 Air X 系列，在擴大產品組合方面邁出了重要一步。

One of the standout features of the KQi Air is the construction with the main body, predominantly crafted from lightweight carbon fiber, resulting in an incredible low weight of 11.7 kilos. The weight reduction does not compromise performance. The KQi Air delivering impressive capabilities, including top speed of 32-kilometer per hour and the maximum range about 50 kilometers. It also incorporate two action brake caliper to ensure its shorter braking distance for added safety. Moreover, the KQi Air embrace the smart connectivity enabling functions like NFC and Bluetooth and marking, customizable charging, capacity settings, speed adjustment, and also the regenerative braking strength.

KQi Air 的突出特點之一是主體結構，主要由輕質碳纖維製成，重量極輕，僅 11.7 公斤。重量減輕不會影響性能。 KQi Air 具有令人印象深刻的功能，包括每小時 32 公里的最高時速和約 50 公里的最大航程。它還採用了兩個動態煞車鉗，以確保其更短的煞車距離，從而增加安全性。此外，KQi Air 還具備智慧連接功能，可實現 NFC 和藍牙等功能以及標記、可自訂充電、容量設定、速度調節以及再生煞車強度。

Notably the KQi Air was awarded the Best of IFA 2023 by GadgetMatch a highly regarded tech channel. The KQi Air has an MSRP of $1,400 for the standard version and the $1,799 for the KQi Air X full carbon fiber version. We launched the presale campaign on September, and then we expect to deliver the KQi Air to our customer in December this year in time for the holiday seasons. The launch of KQi Air marks our consistent effort in product innovation and that we have more kick-scooter product in through our pipelines the next quarter to further complete our product offerings. Meanwhile, we are also leveraging the traction that we gathered from our kick-scooter product to expand our sales network coverage. Currently, we have our new products sold in over 1,500 offline stores in the United States and Europe, in major retailers like Best Buy MediaMarkt.

值得注意的是，KQi Air 被備受推崇的科技頻道 GadgetMatch 評為 2023 年 IFA 最佳產品。 KQi Air 標準版的建議零售價為 1,400 美元，KQi Air X 全碳纖維版的建議零售價為 1,799 美元。我們於 9 月啟動了預售活動，預計在今年 12 月假期期間將 KQi Air 交付給客戶。 KQi Air 的推出標誌著我們在產品創新方面的持續努力，我們在下個季度將推出更多滑板車產品，以進一步完善我們的產品供應。同時，我們也利用我們從滑板車產品中獲得的吸引力來擴大我們的銷售網路覆蓋範圍。目前，我們的新產品在美國和歐洲的 1,500 多家線下商店以及百思買 MediaMarkt 等主要零售商中銷售。

Together with the product portfolio enhancement of sales, now expansion has laid a solid foundation for ramping up the sales in the next few months throughout the holiday seasons. Now, as we look forward, we remain a cautious outlook for Q4 this year as some of the operational adjustment in both the China and also the overseas electric moped markets will take time to be fully implement throughout the midterm growth. We're nonetheless confident to regain growth in 2024 after a temporary adjustment period this year. In the China market, the fourth quarter traditionally experience a low market demand. We're using this time to continue to enhance our product portfolio and build momentum for store expansions.

加上銷售的產品組合增強，現在的擴張為未來幾個月整個假期期間的銷售奠定了堅實的基礎。現在，展望未來，我們對今年第四季的前景仍持謹慎態度，因為中國和海外電動助力車市場的一些營運調整需要時間才能在中期成長過程中全面實施。儘管如此，經過今年的暫時調整期後，我們仍有信心在 2024 年恢復成長。在中國市場，第四季傳統上市場需求較低。我們將利用這段時間繼續增強我們的產品組合併為商店擴張創造動力。

In term our product portfolio for the Falcon series is a testimony of successful product for full expansion, both are for clients spending our retail stores quarter. With those, we believe we are well positioned to get the effect on a high growth track in 2024. Now for the international electric two-wheeler market, the additional new product, the offroad of the motorcycle market product and also the swapping solutions that will position us for growth in the key European, United States, and the Southeast Asian market next year. We're also actively implementing operational adjustments for better deliver those product to our key markets through the key channels. But we expect those adjustment will take time. And hence, we remain cautious outlook for the Q4 2023.

從長遠來看，我們的獵鷹系列產品組合是全面擴張的成功產品的見證，兩者都是針對在我們零售店季度消費的客戶。有了這些，我們相信我們已經做好準備，能夠在 2024 年進入高成長軌道。現在，對於國際電動兩輪車市場來說，額外的新產品、摩托車市場的越野產品以及交換解決方案將為我們明年在歐洲、美國和東南亞主要市場的成長做好準備。我們也積極實施營運調整，以便更好地透過主要管道將這些產品交付到我們的主要市場。但我們預計這些調整需要時間。因此，我們對 2023 年第四季的前景保持謹慎。

Last but not least, for our international micro mobility markets. We're pleased to report a sustained and robust growth trajectory. This growth is fueled by two key pillars, the completion of our product portfolio and inspection of sales network. Our product lineup has not only boost the sales volume, but also significant elevate us the presence of new brands within this market segment. The recent addition of the KQi Air represents just one of the many exciting products yet to come. The expanding product portfolio has driven the development of our sales channels with remarkable growth observing our expanding retail networks. We're confident in our ability for sustaining high growth in Q4 and beyond.

最後但並非最不重要的一點是，對於我們的國際微型移動市場。我們很高興地報告持續強勁的成長軌跡。這種成長是由兩個關鍵支柱推動的，即我們產品組合的完善和銷售網絡的檢查。我們的產品陣容不僅提高了銷量，也顯著提升了我們新品牌在該細分市場的影響力。最近推出的 KQi Air 只是即將推出的眾多令人興奮的產品之一。不斷擴大的產品組合推動了我們銷售管道的發展，我們不斷擴大的零售網路取得了顯著的成長。我們對第四季及以後保持高成長的能力充滿信心。

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

現在我將把電話轉給我們的財務長 Fion。

Thank you, Yan, and hello, everyone. 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.

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，我們還將 Excel 格式的數據上傳到我們的 IR 網站，以方便您參考。

As I review our financial results, I'm referring the third quarter figures, unless I say otherwise, and all monetary figures are in RMB if not specified. As Yan just mentioned, during the third quarter, we sold a total of 266,000 units and 230,000 was sold in China while the rest was sold overseas. And the total revenue for the third quarter amounted to RMB927 million, a decrease of RMB226 million compared to the same period of last year. And China market revenue was RMB785 million, accounting for 85% of the total revenue. Of this, the China quarter revenues were RMB711 million, a year-over-year decrease of 17%, and this decrease was mainly due to the lower sales volume of our premium service and partially offset by the higher sales volume and revenue from our mass premium series. And the China scooter ASP was RMB308.5 million, a year-over-year decrease of 5.5%. And this decline in ASP was mainly due to the product mix change, which I just mentioned.

當我回顧我們的財務表現時，除非另有說明，否則我指的是第三季的數據，如果沒有特別說明，所有貨幣數據均以人民幣為單位。正如嚴剛所提到的，第三季我們總共銷售了26.6萬台，其中23萬台是在國內銷售的，其餘的都是在海外銷售的。第三季總收入為人民幣9.27億元，較去年同期減少人民幣2.26億元。其中中國市場收入為人民幣7.85億元，佔總收入的85%。其中，中國季度收入為人民幣7.11億元，年減17%，這一下降主要是由於我們的優質服務銷量下降，部分被我們大眾服務的銷量和收入增加所抵消。高級系列。中國踏板車平均售價為人民幣3.085億元，較去年同期下降5.5%。而ASP的下降主要是因為我剛才提到的產品結構的變化。

And the overseas market revenue was RMB142 million accounted for 15% of the total revenue. And the overseas scooter revenue, including the e-motorcycle, small packs, kick-scooters, and e-bikes amounted to RMB122 million compared to RMB195 million in the same period of last year. And this decrease was mainly due to the decline in the sales of e-motorcycles and mopeds. The micro mobility revenue were around RMB109 million, up 20% quarter-over-quarter. And the overseas quarter ASP increased from RMB338.6 million to RMB343 million year-over-year. And mainly due to our premium model case re-mass sales volume increased from 3,200 units to 7,100 units year-over-year.

其中海外市場收入為人民幣1.42億元，佔總收入的15%。其中，包括電動摩托車、小型背包、踏板車和電動自行車在內的海外踏板車收入為人民幣1.22億元，去年同期為人民幣1.95億元。而這一下降主要是由於電動摩托車和輕型摩托車銷量下降所致。微行程收入約為人民幣1.09億元，季增20%。海外季度平均售價年比從人民幣 3.386 億元增至 3.43 億元。這主要是由於我們的高階車型銷量較去年同期從 3,200 輛增加到 7,100 輛。

And the revenue from accessories, spare parts, and services amounted to RMB94 million, a 5% decrease compared to the same period of last year, and this decline was mainly driven by the lower sales of battery packs overseas, as we mentioned in the previous quarters. And the gross margin decreased by 0.7 PPG year-over-year to 21.4%, and of this, 0.6 PPG of this decline was driven by the lower sales volume from the overseas e-motorcycle and e-mopeds, and the remaining 0.1 PPG due to the change to the product mix domestically.

配件、備件及服務收入為人民幣9,400萬元，年減5%，下降主要是由於海外電池組銷售下降所致，正如我們在先前提到的宿舍。毛利率年減0.7個PPG至21.4%，其中0.6個PPG是由於海外電動摩托車和電動助力車銷量下降所致，其餘0.1個PPG是由於海外電動摩托車和輕便摩托車銷量下降所致。國內產品結構的變化。

And our third quarter OpEx amounted to RMB289 million, an increase of RMB25 million compared to the same period of last year, and this increase was mainly due to a RMB88 million increase in provisions for credit losses in this quarter. Excluding the impact of the credit losses in each period, the OpEx decreased 25% year-over-year as percentage of revenue also decreased by 1.4 PPG from 22.3% last year to 21% this year. For the details, I will explain in a moment. Selling and marketing expenses were RMB123 million as percentage of revenue was 13.2%, it is a year-over-year decrease of RMB48 million and 1.6 PPG lower than last year, primarily due to a reduction in advertising and promotion activities.

我們第三季的營運支出為人民幣2.89億元，比去年同期增加人民幣2500萬元，這一增長主要是由於本季信用損失撥備增加人民幣8800萬元。剔除各期信貸損失的影響，營運支出較去年同期下降 25%，營收佔比也從去年的 22.3% 下降至今年的 21%，下降了 1.4 PPG。詳細內容我稍後會解釋。銷售及行銷費用為人民幣1.23億元，佔收入比例為13.2%，較去年同期減少人民幣0.48億元，比去年減少1.6個百分點，主要是因為廣告和促銷活動減少。

R&D expenses amounted to RMB39 million, representing a RMB11 million decrease year-over-year, primarily due to a decrease in share-based compensation and staff costs and also the design and system development professional fees. G&A expenses were RMB127 million, representing a RMB83 million increase year-over-year, and this is due to the increase in provision for credit losses of RMB88 million. Excluding this credit losses, the G&A expenses decreased by 13% compared to the same period of last year. Since our international operation has expanded, we have seen a corresponding increase in the extent of our account receivables, which forms the basis of computing the bad debt provisions. As we mentioned in the previous quarters, the European consumer sentiment remains cautious, leading our distributors to ask for extended payment terms due to the weak retail sales.

研發費用為人民幣0.39億元，年減人民幣0.11億元，主要是由於股權激勵和員工成本以及設計和系統開發專業費用的減少。管理及行政費用為人民幣1.27億元，較去年增加人民幣0.83億元，主要是因為信用損失準備增加人民幣0.88億元。剔除此信貸損失，一般及行政費用較去年同期下降13%。隨著我們國際業務的擴大，我們的應收帳款規模也相應增加，這是計算壞帳準備的基礎。正如我們在前幾個季度提到的，歐洲消費者情緒仍然謹慎，導致我們的經銷商因零售銷售疲軟而要求延長付款期限。

In the meantime, one of our key motorcycle and mopeds distributors in the European market announced on September 6 this year that it's going to into a court-supervised constructuring process due to the intense economic pressures. Consequently, this quarter we took a provision of RMB54 million, representing a full amount of receivable owned by this distributor. And despite the prudent raising provisions for credit losses on the overdue payments, we retain a positive outlook on the future receivable collections, given our other partners robust financial standing and their continuous ongoing payments.

同時，我們在歐洲市場的一家主要摩托車和輕型摩托車經銷商於今年 9 月 6 日宣布，由於巨大的經濟壓力，該公司將進入法院監督的施工過程。因此，本季我們提列了人民幣 5,400 萬元的撥備，相當於該經銷商擁有的應收帳款全額。儘管審慎地提高了逾期付款信用損失準備金，但考慮到我們其他合作夥伴穩健的財務狀況及其持續的持續付款，我們對未來應收帳款收款仍保持樂觀的前景。

To conclude, excluding the prudent provision for private office, our cost controls have driven an overall decrease in expenses and made us more efficient, linear, and flexible to negative today -- to navigate today's volatile and weak macro economy and emerge stronger when condition eventually improve. In the third quarter, our net loss was nearly RMB80 million under the GAAP measurements compared to a net profit of RMB3 million for the same period of last year. And turning to our balance sheet and cash flow. We ended our quarter with nearly RMB1.4 billion in cash, restricted cash term deposits, and short-term investments. The operating cash flow was RMB229 million compared to RMB450 million in the same period of last year and RMB217 million last quarter. And our CapEx for the third quarter amounted to RMB26 million and has remained stable for the past of four -- five quarters.

總而言之，排除對私人辦公室的審慎規定，我們的成本控制推動了費用的整體下降，並使我們今天更加高效、線性和靈活，以應對當今不穩定和疲弱的宏觀經濟，並在最終情況出現時變得更加強大提升。第三季度，以美國通用會計準則衡量，我們的淨虧損近8,000萬元人民幣，而去年同期淨利為300萬元。轉向我們的資產負債表和現金流。截至本季末，我們擁有近 14 億元人民幣的現金、受限現金定期存款和短期投資。經營現金流為人民幣2.29億元，去年同期為人民幣4.5億元，上季為人民幣2.17億元。我們第三季的資本支出為人民幣 2,600 萬元，並且在過去的四、五個季度中保持穩定。

And now let's turn to guidance. We expect the fourth quarter revenue to be in the range of RMB490 million to RMB612 million, representing a year-over-year decrease from 20% to flat. And 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 uncertainty relating to various factors.

現在讓我們轉向指導。我們預期第四季營收將在人民幣4.90億元至人民幣6.12億元之間，將年減20%至持平。請注意，這項展望是基於截至目前可獲得的信息，反映了公司當前和初步的預期，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，我們將開始通話，詢問您可能向我們提出的任何問題，接線員。請繼續。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) There are no questions at this time. I would like to hand the call back to management for closing remarks.

謝謝。我們現在開始問答環節。 （操作員說明） 目前沒有任何問題。我想將電話轉交給管理階層以供結束語。

Well, 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 progress. Thank you.

好的，謝謝接線員，也謝謝大家參加今天的電話會議並給予支持。我們感謝您的關注，並期待下個季度再次向您報告進展。謝謝。

This does conclude today's conference call, and thank you for your participation, and you may now disconnect your lines.

今天的電話會議到此結束，感謝您的參與，現在您可以掛斷電話了。