小牛電動 (NIU) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Niu Technologies First Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we'll conduct a question-and-answer session, and instructions will follow at that time. 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。謝謝你的支持。歡迎參加小牛科技 2024 年第一季財報電話會議。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，屆時將給予說明。謹此提醒您，我們正在為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. Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.

現在我把電話轉給小牛科技投資人關係經理李麗絲女士。李女士，請講。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the first quarter 2024. 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 site as well, and the replay of the call will be available soon.

謝謝你，接線生。大家好。歡迎參加今天的電話會議，討論 Niu Technologies 2024 年第一季的業績。該電話會議也透過該公司的 IR 網站進行網路直播，並且很快將提供電話會議的重播。

Please note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Security Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual result 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 年美國私人安全訴訟改革法案的安全港條款做出的前瞻性陳述。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。

Our earnings press release in this call included discussion of certain non-GAAP financial measures. The press release contains definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results.

我們在本次電話會議中發布的收益新聞稿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 財務績效的調整表。

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

今天與我通話的是我們的執行長李岩博士；和財務長週菲恩女士。

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, Kristal and hello, everyone. Thank you for joining us today. In the first quarter of 2024, our total sales volume was 129,000 units, reflecting a year-over-year increase of 37%. Notably, our sales volume in the China market saw an uplift of 31% to 110,000 units, while our overseas market experienced a fast growth of 48% to 19,000 units.

謝謝克里斯塔爾，大家好。感謝您今天加入我們。 2024年第一季度，我們的總銷量為12.9萬輛，較去年同期成長37%。值得注意的是，我們在中國市場的銷量成長31%至11萬輛，而海外市場則快速成長48%至1.9萬輛。

Total revenue of Q1 was RMB504.7 million, marking a 21% year-over-year increase. Q1, 2024 was a pivotal quarter to realign our long-term growth trajectory. In the China market, we continue to refine our product strategy, concentrating on the Premium segments. We bolstered our competitive product portfolio, by enhancing our classic series and broadened its appeal, to encompass a more diverse range of vertical user groups.

第一季總營收為人民幣5.047億元，年增21%。 2024 年第一季是調整我們長期成長軌跡的關鍵季度。在中國市場，我們持續完善產品策略，專注於高端細分市場。我們透過增強經典系列並擴大其吸引力來增強具有競爭力的產品組合，以涵蓋更多樣化的垂直用戶群。

A key highlight of this quarter was a successful launch of NXT model. The NXT series, characterized by its innovative design and advanced technology, was met with substantial market approval. It contributes 25% of our total sales revenue in China market this quarter, underscoring the efficacy of a strategic focus. Encouraged by the success, we're committed to persisting with this approach, and excited about several upcoming product launches scheduled for Q2.

本季的一大亮點是NXT車型的成功推出。 NXT系列以其創新的設計和先進的技術而獲得了市場的廣泛認可。本季度，該業務占我們中國市場總銷售收入的25%，凸顯了戰略重點的有效性。受到成功的鼓舞，我們致力於堅持這種方法，並對計劃於第二季度推出的幾款即將推出的產品感到興奮。

The overseas market, has met our expectation for regaining growth. In the micro-mobility sector, we have focused on expanding our sales channels to establish a strong foundation, for product-driven growth for the rest of the year. We have increased our retail presence by partnering with leading retailers, such as Best Buy and MediaMarkt, thereby expanding our fiscal footprint over 1,200 locations worldwide.

海外市場，達到了我們恢復成長的預期。在微型出行領域，我們專注於擴大銷售管道，為今年剩餘時間的產品驅動成長奠定堅實的基礎。我們透過與 Best Buy 和 MediaMarkt 等領先零售商合作，擴大了零售業務，從而擴大了我們在全球 1,200 個地點的財務足跡。

For our overseas e-moped and e-motorcycles, we have concentrated on exploring direct sales business models in key markets in Europe and the United States. We believe those strategic efforts are setting a stage, for substantial growth in the coming quarters.

海外電動輔助車、電動摩托車方面，我們將重點探討歐美重點市場的直銷業務模式。我們相信這些戰略努力正在為未來幾季的大幅成長奠定基礎。

Now let's take a closer look at the China market. We have laid out our product development, conducted market activities saying, expanded sales channels in Q1, all in alignment with our core strategy for this year. Our goal is to build an urban mobility brand focused on the Premium Market segment with diversified user needs.

現在讓我們仔細看看中國市場。一季度我們佈局了產品開發，並進行了市場活動，拓展了銷售管道，這些都與我們今年的核心策略保持一致。我們的目標是打造一個專注於用戶需求多元化的高端細分市場的城市出行品牌。

At our product launch event in February, we debut the NXT series. This series continues the design of our first legendary scooter, the N1, but elevates with futuristic elements like magnetic transparent panels, aerodynamic lines, and an enhanced version of signature halo light. The NXT, is the most premium scooter in this lineup, boosts the most advanced technology to-date.

在二月的產品發表會上，我們首次推出了 NXT 系列。該系列延續了我們第一款傳奇踏板車 N1 的設計，但加入了磁性透明面板、空氣動力學線條和增強版標誌性光暈燈等未來元素。 NXT 是該系列中最優質的踏板車，採用了迄今為止最先進的技術。

The market received the NXT series exceptionally well, marking our initial venture into targeting young demographics, with scooter products. To further expand our product lineup targeting the Gen Z demographics, we have introduced the NPlay and the UMax into the market. The NPlay was officially launched in March at a starting price of RMB 4,399, quickly becoming a competitive product among the young university students.

NXT 系列受到市場的熱烈歡迎，這標誌著我們首次嘗試針對年輕族群推出踏板車產品。為了進一步擴大我們針對 Z 世代族群的產品陣容，我們向市場推出了 NPlay 和 UMax。 NPlay於3月正式上線，起價為4,399元，迅速成為年輕大學生的拳頭產品。

Building on the momentum from NXT and NPlay, we're launching another product, the UMax, completing our offering for the young consumers. The UMax is specifically designed for young riders in Tier 1 to Tier 3 cities, a turn to lifestyle trends. It features a large form factor that enhance both visual appeals and the rider comforts, ideally for dynamic urban environment.

在 NXT 和 NPlay 的推動下，我們推出了另一款產品 UMax，完善了我們為年輕消費者提供的產品。 UMax 專為 1 至 3 線城市的年輕騎士設計，引領生活風格潮流。它具有大尺寸的特點，可增強視覺吸引力和騎士舒適度，非常適合動態的城市環境。

Performance-wise, the UMax offers a maximum range of 160 kilometers on a single charge and includes the boost drive mode for rapid acceleration. For safety and enjoyable rides, it incorporates a TCS, ensuring a secure and adaptable experience across various urban terrains. Now with the newest addition, our full range of products targeting the trendy young riders, is now ready for the upcoming peak quarters.

在性能方面，UMax 一次充電的最大續航里程為 160 公里，並包括用於快速加速的 Boost 驅動模式。為了實現安全和愉快的乘坐體驗，它整合了 TCS，確保在各種城市地形中提供安全且適應性強的體驗。現在，隨著最新的增加，我們針對時尚年輕騎士的全系列產品現在為即將到來的高峰季度做好了準備。

Another target group will aim to expand with our unique position products is the female electric scooter riders. Earlier this year, we released our first female focused scooter, the upgraded U1E. The U1E features new color scheme, ergonomic improvement in handles and seat positions, easy to use smart functionalities, and option to include baby seat mounts accessories.

我們的獨特定位產品的另一個目標群體是女性電動滑板車騎士。今年早些時候，我們發布了第一款女性專用滑板車，升級版 U1E。 U1E 採用新的配色方案、手柄和座椅位置的人體工學改進、易於使用的智慧功能以及包含嬰兒座椅安裝配件的選項。

Launched at the beginning of March, just in time for the International Women's Day campaign, this model accounted for 12% of total sales volume for the entire quarter, despite being on the market for only one month. Riding on the momentum for the U1E, we are continuing expanding our female focused scooters. The latest addition to our classic M series product line, the MS scooter, tailored to meet the unique needs of female consumers in the Premium Market segment.

該機型於3月初推出，適逢國際婦女節活動，儘管上市僅一個月，但其銷售量已佔整個季度總銷量的12%。乘著 U1E 的發展勢頭，我們正在繼續擴展我們的女性滑板車。 MS 踏板車是我們經典 M 系列產品線的最新成員，專為滿足高端市場女性消費者的獨特需求而量身定制。

The MS scooter showcases, a classic and minimalist aesthetic with color schemes, in beige-white and mint green, creating an elegant and clean style that distinguishes itself, from other scooters in the market. This scooter is also engineered, specifically to cater the distinct needs and preferences of female riders, such as a traction control system to ensure a smooth riding experience, a dual-tube frame system for enhanced stability, and both front and rear disc brakes offering advanced level safety.

MS滑板車展現了經典簡約的美學，米白色和薄荷綠的配色，營造出優雅乾淨的風格，與市場上的其他滑板車區分開來。這款踏板車還專為滿足女性騎士的獨特需求和偏好而設計，例如確保平穩騎乘體驗的牽引力控制系統、增強穩定性的雙管車架系統以及提供先進性能的前後碟式煞車。 。

We also expect to introduce another product specifically tailored for female users in the coming days, the O series. The O series combines an aesthetic design, and unique ergonomics to address the special needs of female scooter riders. We plan to release the O series on July 1, through a live stream with top influencers, and I look forward to sharing more details after the launch.

我們也預計未來還會推出另一款專為女性用戶量身訂製的產品—O系列。 O系列結合了美學設計和獨特的人體工學，可以滿足女性滑板車騎士的特殊需求。我們計劃於 7 月 1 日透過頂級影響者的直播方式發布 O 系列，我期待在發布後分享更多細節。

Now with the introduction of MS and O series, we will soon complete our product line targeting the premium female user segment of the market. As I mentioned in my previous earning call, building our product portfolio to target various Premium segments, is a core component of our business strategy this year. I'm pleased to share that, we have already received some initial positive feedback, with this strategy in place.

現在，隨著MS和O系列的推出，我們很快就會完成針對高階女性用戶市場的產品線。正如我在之前的財報電話會議中提到的，建立我們的產品組合以瞄準各種高端細分市場，是我們今年業務策略的核心組成部分。我很高興與大家分享，隨著這項策略的實施，我們已經收到了一些初步的正面回饋。

Now with our product strategy in focus, we have been actively engaging continuous marketing and branding campaigns to reinforce our brand identity. Recently, we rolled out a dynamic marketing campaign, and broadcast a mix of videos across iconic landmarks in six major cities, significantly enhanced our brand's high-end positioning and robust capabilities.

現在，以我們的產品策略為重點，我們一直積極參與持續的行銷和品牌活動，以強化我們的品牌形象。近期，我們推出了充滿活力的行銷活動，並在六大城市的標誌性地標上播放了組合視頻，顯著提升了我們品牌的高端定位和強大實力。

The campaign prominently featured NXT, our cutting-edge flagship product, establishing it as an ideal vehicle for stylish urban commuters. The NXT is designed to resonate with the new generations of trendsetters. The video showcasing key urban centers like Beijing, Shanghai, and Guangzhou has captured the public's attention, a mass of a total of nearly 200 million views.

該活動突出展示了我們的尖端旗艦產品 NXT，使其成為時尚城市通勤者的理想交通工具。 NXT 旨在與新一代潮流引領者產生共鳴。這段展示北京、上海、廣州等主要城市中心的影片引起了公眾的關注，累計觀看量近2億人。

Now our branding effort will also center, around the newly introduced product lines targeting a specific user demographics. At the beginning of the year, we announced our collaboration with JD Gaming, a top-performing eSports team. As their official electric vehicle partner, we collaborated ranged from brand activities to product launch, aiming to make a significant impact on the Generation Z demographic, which aligns with our product focus.

現在，我們的品牌推廣工作也將圍繞著新推出的針對特定用戶群的產品線。今年年初，我們宣布與頂級電競團隊 JD Gaming 合作。作為他們的官方電動車合作夥伴，我們從品牌活動到產品發布進行了廣泛的合作，旨在對 Z 世代人群產生重大影響，這與我們的產品重點一致。

To further bring up our product presence among the young users, we have an initiative to collaborate with top gaming peripherals brand Razer. Last year, we released the co-branded new cross-Razer SQi limited edition, and this year we are taking the partnership one step forward to collaborate as Razer's brand ambassador. In May, Niu join Razer to host gaming events in various universities, by presenting a Razer new co-branded scooter. So far, the event has covered numerous universities with 2,000 events - attendees.

為了進一步提升我們的產品在年輕用戶中的影響力，我們主動與頂級遊戲週邊品牌Razer合作。去年，我們發布了聯名全新跨界 Razer SQi 限量版，今年我們將合作關係向前邁進了一步，以 Razer 品牌大使的身份展開合作。 5月，牛牛聯手Razer在多所大學舉辦遊戲活動，並展示了Razer全新聯名滑板車。截至目前，活動已涵蓋多所大學，參與人數達2,000人次。

In addition, during the period, we have generated widespread content on social media, for more than 2 million views. We plan to carry out a series of student events throughout 2024 with 100 plus universities to host the event.

此外，在此期間，我們在社群媒體上發布了廣泛的內容，瀏覽量超過 200 萬次。我們計劃在 2024 年全年舉辦一系列學生活動，由 100 多所大學主辦。

Now, to engage the female demographic effectively, we have launched a series of online campaigns, specifically tailored to introduce scooter design for female users. In Q1, with our upgraded U1E scooter through a live stream campaign led by a prominent influencer, gathered a significant traction that positioned us as the top brand in the mobility category during the campaign period.

現在，為了有效地吸引女性群體，我們發起了一系列線上活動，專門為女性用戶介紹滑板車的設計。在第一季度，我們透過由知名影響者主導的直播活動升級了 U1E 滑板車，獲得了巨大的關注，使我們在活動期間成為行動類別的頂級品牌。

Now, throughout the launch of the flagship product, we continue our online campaign effort. We collaborated with over 70 QOLS in the industry and created approximately 200 pieces of high-quality content, which generated 80 million views across various platforms.

現在，在旗艦產品的推出過程中，我們繼續進行線上行銷活動。我們與業界70多家QOLS合作，創作了約200條優質內容，在各平台產生了8000萬次觀看。

Now, let me turn into the overseas market. This quarter, we have witnessed a year-over-year growth of 48% driven by the micro-mobility sector, with zero growth of 63%. The growth in the micro-mobility sector is combined with the product offering expansion and the sales channel lineup. On the product portfolio front, with the introduction of the KQi Air, a full carbon fiber lightweight performance kick scooter in last year's, September, we now have a comprehensive product line up.

現在，讓我談談海外市場。本季度，在微型出行領域的推動下，我們見證了年成長 48%，其中零成長為 63%。微型移動出行領域的成長與產品供應和銷售通路陣容的擴大相結合。在產品組合方面，隨著去年9月推出的全碳纖維輕量化高性能踏板車KQi Air，我們現在擁有了全面的產品陣容。

To further complete our product offerings in Q1, we launched the KQi 300 series, which is the enhanced upgrade of the popular KQi 3 series designed for all urban terrain use. The series featured a dual-tube hydraulic suspension, for better handling on uneven surfaces, promising up to 60 kilometer range per charge. Starting at $699, the KQi 300 series was met with great popularities, upon its pre-order period. The KQi 300 will be officially made available in Q2 this year, and we believe it will lift the sales world in the coming months.

為了進一步完善我們在第一季的產品供應，我們推出了 KQi 300 系列，它是廣受歡迎的 KQi 3 系列的增強升級版，專為所有城市地形使用而設計。該系列採用雙管液壓懸吊，可在不平坦的表面上提供更好的操控性，每次充電可行駛長達 60 公里。 KQi 300 系列起價為 699 美元，在預購期間就受到了熱烈歡迎。 KQi 300 將於今年第二季正式上市，我們相信它將在未來幾個月內提升銷售量。

Now with our comprehensive product line up, we've made significant progress in entering retail channels since the second half of last year, laying out a solid foundation for the growth. In the United States market, we're well positioned in 800 plus Best Buy stores, and are advancing our effort to enter additional retailers like Lowe's, Home Depot, Walmart, Target, and Costco.

現在，我們的產品線已經很齊全了，從去年下半年開始，我們在零售通路方面取得了重大進展，為未來的成長奠定了堅實的基礎。在美國市場，我們在 800 多家百思買商店中佔據有利地位，並且正在努力進入其他零售商，例如 Lowe's、Home Depot、Walmart、Target 和 Costco。

In Europe, our product is played in over 400 MediaMarkt stores in Germany, over 100 blanche stores in France, and over 100 MediaMarkt and Coeur d'Anglais stores in Spain. We're working closely with our retail partners on marketing campaigns to boost sales, which proven effectively during the first quarter.

在歐洲，我們的產品在德國 400 多家 MediaMarkt 商店、法國 100 多家 blanche 商店以及西班牙 100 多家 MediaMarkt 和 Coeur d'Anglais 商店銷售。我們正在與零售合作夥伴密切合作進行行銷活動以促進銷售，這在第一季得到了有效證明。

During a pilot promotion with our German retailers, we witnessed our year-over-year growth of over 300% in scooter activation numbers in Germany. To further expand our retail partnership, we are actively moving forward with the new retail dealer such as Decathlon in France, MediaWorld in Italy and others. Through our retail network special effort, we'll aim to double our retail footprint selling micro-mobility product, by end of 2024.

在與德國零售商進行的試點促銷期間，我們見證了德國滑板車激活數量同比增長超過 300%。為了進一步擴大我們的零售合作夥伴關係，我們正在積極推動與法國迪卡儂、義大利MediaWorld等新零售經銷商的合作。透過我們零售網路的特別努力，我們的目標是到 2024 年底將銷售微型行動產品的零售足跡擴大一倍。

Now the electric two wheeler sector in Q1, is marked by a significant transition in both our product portfolio, and operating models across core business markets in the US and Europe. Last quarter, we introduced the MGT100, RQi and XQi models, all of which has garnered considerable attention, and strategically filled the gap in the market, offering a comprehensive coverage from 50cc to 125cc electric two wheelers.

現在，第一季的電動兩輪車產業的特點是我們的產品組合以及美國和歐洲核心業務市場的營運模式都發生了重大轉變。上季度，我們推出了MGT100、RQi、XQi等車型，受到了廣泛關注，策略性地填補了市場空白，全面覆蓋了從50cc到125cc的電動兩輪車。

The XQi recently received the Prestige Red Dot Award in April this year, joining a few other new legendary products that have received this honor. All those products encounter a temporary logistic delays, where anticipated they will be fully distributed in the targeted market, by second quarter 2024, aligning perfectly with the peak sales season. And during this quarter, we have made a significant adjustment to our business operations in overseas.

XQi 最近在今年 4 月獲得了 Prestige Red Dot Award，與其他一些新的傳奇產品一起獲得了這一榮譽。所有這些產品都遇到了暫時的物流延誤，預計到 2024 年第二季它們將完全分銷到目標市場，與銷售旺季完美契合。而在本季度，我們對海外業務營運進行了重大調整。

In several key markets, alongside our existing distributors, we are establishing local entities and operation teams, to manage direct distribution to dealers. We believe those direct distribution to dealer models allow us to invest more heavily in local branding and marketing efforts, establish a strong customer relationship and increase our adaptability to local market fluctuations.

在幾個主要市場，我們正在與現有的經銷商一起建立當地實體和營運團隊，以管理經銷商的直接分銷。我們相信，這些直接分銷給經銷商的模式使我們能夠增加對當地品牌和行銷工作的投資，建立牢固的客戶關係，並提高我們對當地市場波動的適應能力。

While those operation change require time to fully implement, and direct to dealer model has extended the sales and revenue recognition period, we're confident in this strategy not only deepen our roots in those local markets, but also drive substantial long-term growths. Aligned with our updated product offerings and expansion of sales networks, our branding effort in Q1, has been actively pursued internationally.

雖然這些營運變革需要時間來全面實施，而且直接面向經銷商的模式延長了銷售和收入確認期，但我們對這項策略充滿信心，不僅能加深我們在當地市場的紮根，還能推動長期的大幅增長。與我們更新的產品系列和擴大銷售網絡相結合，我們在第一季的品牌推廣工作一直在國際上積極開展。

We focus on both enhancing our brand traffic (inaudible) with our sales networks, including the distributors and dealers, by sharing our plan for the upcoming quarters. To build and fortify our brand presence in Q1, we actively participate in major industry events such as AIMEXPO in Las Vegas, Motorrader's in Dortmund, Germany and the Salon du 2 Roues in Lyon, France. Those events significantly amplify our brand visibility.

我們專注於透過分享我們未來幾季的計劃，透過我們的銷售網絡（包括經銷商和經銷商）增強我們的品牌流量（聽不清楚）。為了在第一季建立和鞏固我們的品牌影響力，我們積極參與重大行業活動，例如拉斯維加斯的 AIMEXPO、德國多特蒙德的 Motorrader 和法國里昂的 Salon du 2 Roues。這些活動大大提高了我們的品牌知名度。

Furthermore, we hosted a series of NIU Connect events aiming at local media, distributor, retailers, to showcase and introduce our 2024 product lineup. In Q1, we successfully carried out those events in France and Italy, bringing together over 50 partners, to provide commercial and technical information on our new products, and test drive our new products.

此外，我們也針對當地媒體、經銷商、零售商舉辦了一系列 NIU Connect 活動，展示並介紹我們的 2024 年產品陣容。第一季度，我們在法國和義大利成功舉辦了這些活動，聚集了 50 多個合作夥伴，提供我們新產品的商業和技術信息，並試駕我們的新產品。

Notably, the local media partners including [CleanRight and Moore] have published very positive reviews of products. We plan to continue the NIU Connect series throughout the year in various locations, demonstrating our commitment to build a long-term relationship, with our partners in the core region.

值得注意的是，包括[CleanRight和Moore]在內的當地媒體合作夥伴對產品發表了非常正面的評論。我們計劃全年在不同地點繼續舉辦 NIU Connect 系列活動，以展示我們與核心地區合作夥伴建立長期合作關係的承諾。

Now as we conclude in Q1, we anticipate a continued growth in Q2. For China market, the growth is driven primarily by introduction on new products and channel improvements. We have already witnessed the great popularity of the NX series launch in Q1, where we're in time to finish release of a premium product line, the MS and O series in the coming weeks.

現在，正如我們在第一季得出的結論，我們預計第二季將持續成長。對中國市場而言，成長主要由新產品的推出和通路的改善所推動。我們見證了第一季推出的 NX 系列的大受歡迎，我們將在未來幾週內及時完成優質產品線 MS 和 O 系列的發布。

Furthermore, our comprehensive approach to expand channels, through both the physical stores and online platforms, ensures that we are broadening our market footprint, while meeting the diverse needs of our customer base. We actively expand our sales channels, to improve offline coverage in O-tier cities, to support our products. And with additional new stores, the key focus for 2024 remains - improvement of same-store sales by leveraging a combination of online to offline traffic.

此外，我們透過實體店和線上平台拓展通路的綜合方法確保我們擴大市場足跡，同時滿足客戶群的多樣化需求。我們積極拓展銷售管道，提高O線城市的線下覆蓋，並支持我們的產品。隨著新店數量的增加，2024 年的重點仍是透過線上線下流量結合來提高同店銷售額。

In Q1, we conducted over 6,000 live stream sessions on platforms such as Douyin, T-Mao, JD.com and Xiaohongshu. Notably, the newly entered Douyin live stream platform has positioned us as top three brands in this category, indicating a successful online to offline conversion model that we plan to scale up further.

第一季度，我們在抖音、天貓、京東、小紅書等平台進行了超過 6,000 場直播。值得注意的是，新進入的抖音直播平台使我們躋身該類別的前三名品牌，這表明我們計劃進一步擴大線上線下轉換模式的成功。

In Q2, we have series of product launch event plans, to utilize the online live stream sales networks, which will be our channel focus for the coming quarters. As we enter the peak sales season - with campaigns such as 618 online shopping festival, we aim to drive further same-store growth.

在第二季度，我們有一系列的產品發布活動計劃，利用線上直播銷售網絡，這將是我們未來幾季的通路重點。隨著我們進入銷售旺季——透過618網購節等活動，我們的目標是進一步推動同店成長。

With the product portfolio enhancement and sales expansion, we believe we are well positioned in China market for the rest of the year. However, also observe a macro sluggish market trend in Q2, and then we remain cautious about potential growth in our China market in Q2.

隨著產品組合的增強和銷售的擴大，我們相信今年剩餘時間我們在中國市場處於有利地位。不過，我們也觀察到第二季宏觀市場走勢低迷，因此我們對第二季中國市場的潛在成長保持謹慎態度。

For the overseas market, we maintain positive outlook. In the Micro-Mobility segment, we anticipate 2x growth throughout the year, supported by our comprehensive product portfolio and established sales network. The introduction of the KQi 300 series promise that lift sales volume in the coming months. Our significant progress in entering retailer channels, has laid out a solid foundation for growth in 2024, we're advancing our effort in entering additional retailers in this key market.

對於海外市場，我們維持樂觀的展望。在微移動領域，我們預計在我們全面的產品組合和成熟的銷售網路的支持下，全年將實現 2 倍的成長。 KQi 300 系列的推出可望提升未來幾個月的銷售量。我們在進入零售商通路方面取得的重大進展，為 2024 年的成長奠定了堅實的基礎，我們正在努力進入這一關鍵市場的更多零售商。

Now in the overseas motorcycle market with adjustment product offerings, operation strategy, we're confident to regain growth by Q2. The recent introduction of those new products gathered a considerable attention to the strategic field of market gaps. We anticipate the diffusion of the new product in the target market by Q2, aligned with the peak sales season.

目前海外摩托車市場隨著產品結構、經營策略的調整，我們有信心在第二季恢復成長。最近推出的這些新產品引起了市場空白策略領域的廣泛關注。我們預計新產品將在第二季在目標市場中推廣，與銷售旺季保持一致。

Additionally, the establishment of local entities, the operation team to manage direct to dealer distribution, will allow us to invest more heavily in local branding and marketing efforts. We're now working with over 100 dealers in our direct sales network and we plan to continue growth numbers throughout the year.

此外，建立當地實體、營運團隊來管理直接經銷商分銷，將使我們能夠增加對當地品牌和行銷工作的投資。目前，我們的直銷網路與 100 多家經銷商合作，並計劃全年持續增加數量。

So in summary, our strategic focus on product innovation, targeted market campaign, robust channel expansion, both domestically and international position us well for the continued growth. We're confident in our ability to improve sales and to our business objective in the upcoming quarters.

總而言之，我們對產品創新的策略重點、有針對性的市場活動、強勁的通路擴張，為我們在國內和國際上的持續成長奠定了良好的基礎。我們對未來幾季提高銷售和實現業務目標的能力充滿信心。

Now I will turn over the call to our CFO, Fion Zhou to talk about financials.

現在我將電話轉給我們的財務長 Fion Zhou，討論財務問題。

Thank you, Yan. And hello everyone.

謝謝你，嚴。大家好。

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, I'm referring to the first quarter figures unless I say otherwise, and all monetary figures are in RMB, if not specified.

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，以供您輕鬆參考。當我回顧我們的財務表現時，除非另有說明，否則我指的是第一季的數據，如果沒有具體說明，所有貨幣數據均以人民幣為單位。

As Yan just mentioned, our total sales volume for the first quarter was 129,000 units, up 37% compared to the same period of last year, and 110,000 units was sold in China, while the remaining 19,000 was sold overseas, and over 50% of our sales volume in China was contributed by the new product launched this quarter.

正如嚴剛所提到的，我們第一季的總銷量是12.9萬輛，比去年同期成長37%，其中11萬輛是在國內銷售的，剩下的1.9萬輛是在海外銷售的，佔比超過50%。

And the total revenue for the first quarter amounted to RMB505 million, an increase of RMB87 million or 21%, compared to the same period of last year. In China revenues were RMB445 million, accounting for 88% of the total revenue. Of this, the scooter revenue was RMB393 million, a year-over-year increase of 28.8%. And this increase was mainly due to the increase in the sales volume, and partially offset by a decrease in revenues per scooter.

一季總營收為5.05億元，年增0.87億元，成長21%。在中國的收入為人民幣4.45億元，佔總收入的88%。其中，滑板車收入3.93億元，年增28.8%。這一增長主要是由於銷量的增加，但部分被每輛踏板車收入的下降所抵消。

The China scooter ASP was RMB3,568, a year-over-year decrease of 4.7%, while a quarter-over-quarter increase of 11%, compared to last quarter. And the year-over-year decline in ASP, was mainly due to a change in product mix within the premium series. Last Q1, our revolutionary high-end electronic bicycle, the S series, debuted in the market with a retail price range of RMB8,999 to RMB9,999, and contributed 6% of the sales.

中國踏板車平均售價3,568元，年減4.7%，較上季成長11%。平均售價年減主要是由於高端系列產品結構的變化。去年一季度，我們革命性的高階電動自行車S系列首次上市，零售價為8,999元至9,999元，貢獻了6%的銷售量。

While this quarter we introduced our flagship product in NXT with a wider retail price range from RMB6,299 to RMB7,999 and RMB12,499, all above contributed 26% of this quarter sales. And overseas revenue was RMB60 million, accounting for 12% of the total revenue.

雖然本季我們推出了 NXT 旗艦產品，零售價範圍更廣，從人民幣 6,299 元到人民幣 7,999 元，再到人民幣 12,499 元，但上述產品均貢獻了本季銷售額的 26%。其中海外收入為人民幣6,000萬元，佔總收入的12%。

The scooter revenue including motorcycles, e-mopeds, kick scooters and e-bikes amounted to RMB49 million, compared to RMB53 million in the same period of last year. The decrease was mainly due to the decline in the sales of electronic motorcycles, and mopeds and partially offset by the increased sales of kick scooter.

包括摩托車、電動輔助車、踏板車和電動自行車在內的踏板車收入達人民幣4,900萬元，去年同期為人民幣5,300萬元。下降的主要原因是電動摩托車和輕型摩托車銷量下降，但部分被踏板車銷量增加所抵消。

The micro-mobility revenue was around RMB43 million up 10% year-over-year. The overseas scooter ASP decreased from RMB4,138 to RMB2,577. The year-over-year as the sales of the kick scooter with the lower ASP increased, like our entry level K1 and KU series. However compared to the fourth quarter 2023, the ASP increased 18% quarter-over-quarter.

微行程收入約為人民幣4,300萬元，較去年同期成長10%。海外踏板車平均售價從人民幣4,138元下降至人民幣2,577元。與去年同期相比，ASP 較低的滑板車的銷售量有所增加，例如我們的入門 K1 和 KU 系列。然而，與 2023 年第四季相比，平均售價較上季成長了 18%。

The revenue from accessories, spare parts and services amounted to RMB63 million, a 7% increase compared to the same period of last year, due to the increase of spare parts sales in China market. And the world's margin for the first quarter was 18.9%, 2.8 ppt lower than the same period of last year, and 0.1 ppt lower than the previous quarters. This decline was mainly due to increase in the proportion of kick scooter sales overseas, along with the lower margin for e-scooters in China.

配件、備品及服務收入為人民幣6,300萬元，較去年同期成長7%，主要得益於中國市場備件銷售的成長。第一季全球利潤率為18.9%，較去年同期下降2.8個百分點，較前幾季下降0.1個百分點。這一下降主要是由於海外滑板車銷售比例的增加，以及中國電動滑板車的利潤率較低。

In China, we changed our product mix to focus more on the widened price range of the premium markets as I mentioned earlier. And additionally we allocated part of the gross margin to our distribution channels, which further reduce the company's overall gross margin.

正如我之前提到的，在中國，我們改變了產品組合，並更加關注高端市場擴大的價格範圍。此外，我們將部分毛利率分配給我們的分銷管道，這進一步降低了公司的整體毛利率。

And talking about operating expenses, the first quarter OpEx was RMB165 million representing a 4.6% increase, compared to the same period of last year. Selling and marketing expenses were RMB105 million up RMB33 million year-over-year, primarily due to our overseas business expansion, which resulted in a higher after-sales services and rental expenses, as well as the higher advertising and promotion expenses in international market.

說到營運費用，第一季營運支出為人民幣1.65億元，較去年同期成長4.6%。銷售及行銷費用為人民幣1.05億元，年增人民幣3,300萬元，主要是由於我們的海外業務擴張導致售後服務和租賃費用增加，以及國際市場的廣告和促銷費用增加。

Research and development expenses amounted to RMB29 million down RMB6 million year-over-year, mainly due to a RMB5 million decrease of share-based compensation and staff cost. G&A expenses were RMB31 million down RMB20 million year-over-year mainly due to a decrease in the better provision of RMB20 million.

研發費用為2,900萬元，年減600萬元，主要是因為股權激勵和員工成本減少500萬元。一般及行政費用為人民幣 3,100 萬元，年減 2,000 萬元，主要是由於較好撥備減少 2,000 萬元。

In the first quarter we had a net loss of RMB55 million with a net loss margin of 10.9% under the GAAP accounting, compared to a net loss of RMB60 million for the same period of last year and the adjusted net loss was RMB49 million.

第一季淨虧損為人民幣 5,500 萬元，以 GAAP 會計核算淨虧損率為 10.9%，去年同期淨虧損為人民幣 6,000 萬元，調整後淨虧損為 4,900 萬元。

And turning to our balance sheet and cash flow, we ended a quarter with RMB1,192 million versus RMB860 million last year in cash, restricted cash, term deposit and short-term investment. Our operating cash inflow amounted to RMB34 million and we expect the operating cash flow to remain healthy afterwards, as the payment terms to our suppliers exceed our invoice in payment terms.

至於我們的資產負債表和現金流，本季末我們的現金、限制性現金、定期存款和短期投資為人民幣 11.92 億元，而去年為人民幣 8.6 億元。我們的經營現金流入達人民幣3400萬元，我們預計之後的經營現金流將保持健康，因為我們向供應商的付款條件超過了我們發票的付款條件。

CapEx for the first quarter amounted to RMB21 million reflecting an increase of RMB5 million, compared to the same period of last year, and this can be attributed primarily to an increase in the opening of new stores in China.

第一季資本支出為人民幣2,100萬元，較去年同期增加人民幣500萬元，主要歸因於中國新店開幕的增加。

And now let's turn to the guidance. We expected the second quarter revenue to be in the range of RMB912 million to RMB955 million and increase of 10% to 20% year-over-year. And please be aware that this outlook is based on the information available as of the date, and reflects the company's current and preliminary expectations, which is subjective to change due to uncertainties related to various factors.

現在讓我們轉向指導。我們預計第二季營收將在人民幣9.12億元至人民幣9.55億元之間，年增10%至20%。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 are now open the call for any questions that you may have for us. Operator, please go ahead.

現在我們開始徵集您對我們提出的任何問題。接線員，請繼續。

Thank you. (Operator Instructions) We'll now take our first question. Please stand by. Our first question comes from the line of Yating Chen from CICC. Please go ahead. Your line is open. The line of Yating Chen is now open. Please go ahead with your question.

謝謝。 （操作員說明）我們現在回答第一個問題。請稍候。我們的第一個問題來自中金公司的陳雅婷。請繼續。您的線路已開通。陳雅婷的路線現已開通。請繼續你的問題。

Once again the line of Yating Chen is open. Please go ahead with your question.

陳雅婷的線路再次開放。請繼續你的問題。

Oh sorry I muted. So my first question is about the about the gross margin. We have seen that the structure of the product improved quarter-on-quarter, because the proportion of premium products improved quarter-on-quarter. But the gross margin didn't improve a lot quarter-on-quarter. Could you please explain the reason?

哦抱歉我靜音了。所以我的第一個問題是關於毛利率。我們看到產品結構環比改善，因為優質產品佔比上季提高。但毛利率季減並沒有太大改善。您能解釋一下原因嗎？

This is Fion. Regarding to the gross margin compared to the last quarter actually you know there is a major difference. If we see the quarter-over-quarter differences that we change the - our sales policy that we share in more our gross margin with our distributors to regain the Chinese market and also reinforce their belief in used product.

這是菲昂。就毛利率而言，與上一季相比，實際上您知道存在重大差異。如果我們看到季度與季度之間的差異，我們就會改變我們的銷售政策，即我們與分銷商分享更多的毛利率，以重新獲得中國市場，並增強他們對二手產品的信心。

While in the meantime we also you know change the partnership or the way that we used to cooperate with our distributors that we are responsible - for all the marketing and the promotion expenses related, with - our retail from the retail side. This year, since we are sharing more, gross margin with our distributors we are going to reduce the marketing expenses, and subsidies to the retail channel to maintain a healthy contributing margin, or the operating margin before the tax.

同時，我們也知道改變我們過去與我們負責的經銷商的合作夥伴關係或合作方式 - 與我們的零售相關的所有行銷和促銷費用。今年，由於我們與經銷商分享更多的毛利率，我們將減少行銷費用以及對零售通路的補貼，以維持健康的貢獻利潤率或稅前營業利潤率。

This is the common practice, with our competitors and also we think it's a good time to reinforce our sales channel with our improved or the new products in the appropriate distribution channel. So this is the main differences, if we see the gross margin in quarter-over-quarter change, and with our gross margin our year-over-year change, just as I just explained on top of - our sales policy change in China. The main reason is that the proportion of kick scooter sales overseas contribution is more than last year.

這是我們競爭對手的常見做法，而且我們認為現在是透過適當的分銷管道中的改進產品或新產品來加強我們的銷售管道的好時機。因此，如果我們看到毛利率環比變化以及毛利率同比變化，這就是主要差異，正如我剛剛解釋的那樣 - 我們在中國的銷售政策變化。主要原因是滑板車海外銷售貢獻比例高於去年。

Thank you. And my first question is about the period expenses, because the selling expenses in Q1 is still high. So will we see the downward trend of the selling expenses ratio in quarter two and three and four? So will you give us a guidance about the selling expense ratio?

謝謝。我的第一個問題是關於期間費用的，因為第一季的銷售費用仍然很高。那麼第二季、第三季、第四季銷售費用率會出現下降趨勢嗎？那麼您能給我們有關銷售費用率的指導嗎？

Okay. Regarding to the selling and marketing expenses, actually when we are separated by segments, the SMM expenses in the domestic market as a percentage of revenue, has been reduced by this quarter by around 2% to 3% up 2 to 3 ppt as a percentage of revenue. While in the meantime - our international the selling and marketing expenses in the international market, is still at the high level.

好的。關於銷售和行銷費用，實際上，當我們按細分市場劃分時，國內市場的SMM費用佔收入的比例，到本季度已經減少了2%至3%左右，同比上升了2至3個百分點的收入。而同時——我們國際在國際市場上的銷售和行銷費用，仍處於較高水準。

Just as I just explained that, we keep going to invest in the brand recognition, the channel, building in the domestic in the overseas market. And that's why those kind of expenses - to as percentage of revenue or as per scooters expenses is kind of like a fixed expenses. It cannot be you know, it cannot change to the various parts, since the sales volume in the international market is still at a relatively lower level.

正如我剛才所解釋的，我們將繼續投資海外市場的品牌知名度、通路、國內建設。這就是為什麼這類費用——佔收入的百分比或每輛踏板車的費用有點像固定費用。不可能你知道，不能換各個零件，因為國際市場的銷售量還處在一個比較低的水平。

And we expect those kind of expenses, to be changed at the various expenses, once you know our sales volume could be reached, to above you know 300,000 to around 500,000. And then those kind of expenses, could be much lower per scooters. And this is the main reason why the selling and marketing expenses still at this higher level. We hope we expected this year selling and marketing expenses as percentage of revenue will become lower quarter-over-quarter.

我們預計，一旦您知道我們的銷售量可以達到 300,000 至 500,000 左右，這些費用就會根據各種費用而改變。然後每輛踏板車的此類費用可能會低得多。這也是銷售和行銷費用仍處於較高水準的主要原因。我們希望今年銷售和行銷費用佔收入的百分比將環比下降。

And up to now we see the - it's still on the track, on the track. So next quarter, when we release our financial figures, the overall selling and marketing expenses as percentage of revenue will be reduced, compared to this quarter understand.

到目前為止，我們看到 - 它仍然在軌道上，在軌道上。因此，下個季度，當我們發布財務數據時，與本季相比，整體銷售和行銷費用佔收入的百分比將會降低。

Understand. Thank you very much. And my first question is about the retail stores in 2023, we have seen that - the decrease of retail stores in China. So, we have seen - that our sales volume start to grow again. So do you have plans in 2024 about the retail stores in China will we increase the volume of retail stores in China in this year?

理解。非常感謝。我的第一個問題是關於2023年的零售店，我們已經看到──中國零售店的減少。因此，我們看到我們的銷量再次開始成長。那麼2024年在中國的零售店有沒有計劃，今年我們在中國的零售店數量會增加嗎？

Yes, I think that's right. So we're looking at expand number of stores. So you look at Q1 this year, so we - actually in Q1 this year. We have the numbers, the store counts actually have increased you know less than 100 - it's like 20 or 30 number of stores that, because many stores actually in construction and haven't really finished the construction.

是的，我認為這是對的。因此，我們正在考慮擴大商店數量。所以你看看今年的第一季度，所以我們 - 實際上是今年的第一季。我們有數字，商店數量實際上增加了不到 100 家 - 大約有 20 或 30 家商店，因為許多商店實際上正在建設中，但尚未真正完成建設。

So we're looking at basically adding a few hundred stores in Q2. And in Q3 and Q4 it depends, I think Q3 is usually a peak season, where the store ads will be actually less, but the Q4 will continue to expand stores.

因此，我們基本上考慮在第二季增加數百家商店。而在Q3和Q4這要看情況，我認為Q3通常是旺季，商店的廣告實際上會較少，但Q4會繼續擴大商店。

Understand. Thank you very much. And my last question is about our sales volume target in 2024, because in the 2023 pre-earning core we gave the guidance about the sales volume in 2024, which means we were a target to sell more than 1 million units in 2024. So, will we keep the target at present or lower down or improve --

理解。非常感謝。我的最後一個問題是關於我們2024年的銷售目標，因為在2023年的預盈利核心中，我們給出了關於2024年銷量的指導，這意味著我們的目標是在2024年銷售超過100萬台。

So, I think at this point, we still keep the target. And so basically, we're still looking for 1 million plus units, including China and also including the China and the overseas altogether.

所以，我認為在這一點上，我們仍然保持目標。所以基本上，我們仍然在尋找超過100萬台，包括中國，也包括中國和海外。

Okay. So do you see - so will we see that the growth more from China market or from overseas market, because I think --

好的。所以你認為 - 我們會看到成長更多來自中國市場還是海外市場，因為我認為 -

Right - in terms of growth percentage, I think that will actually come more from the overseas market, because overseas markets start with the lower base. Last year, the overseas market is roughly about 100,000 units, right. So in terms of growth percentage, I would expect you actually will see more from the overseas market. But in terms of the volume absolutely volume number growth you will see more from the China side.

是的——就成長百分比而言，我認為實際上更多來自海外市場，因為海外市場的起步基數較低。去年海外市場大概是10萬台左右吧。因此，就成長百分比而言，我預計您實際上會從海外市場看到更多。但就數量絕對數量增長而言，您會看到更多來自中國方面的增長。

Okay. Thank you. Understand. Thank you for your time, that's all my questions.

好的。謝謝。理解。謝謝您抽出時間，這就是我的所有問題。

Thank you. (Operator Instructions) There are no further questions, at this time. So, I'll hand the call back to CEO, Dr. Yan Li, for closing remarks.

謝謝。 （操作員說明） 目前沒有其他問題。因此，我將把電話轉交給執行長李岩博士，讓其致閉幕詞。

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 our 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我們的進展。謝謝。

This concludes today's conference call. Thank you for participating, you may now disconnect.

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。