小牛電動 (NIU) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Niu Technologies' second quarter 2024 earnings conference call. (Operator Instructions)

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 年第二季財報電話會議。 （操作員說明）

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.

稍後，我們將進行問答環節，屆時將提供說明。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'll turn the call over to Ms. Kristal Li, Investor Relations Manager of Niu technologies. Ms. Li, please go ahead.

現在我將電話轉接給小牛科技投資者關係經理李晶女士。李女士，請講。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the second quarter 2024. The earnings press release, corporate presentation, and financial strategies has been posted on our Investor Relations website. This call is being webcast from our company's IR site as well, and a 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 年第二季的業績。我們公司的 IR 網站也對該電話會議進行了網路直播，並且很快就會提供該電話會議的重播。

Please note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private 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 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。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 and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results.

我們的收益新聞稿和本次電話會議包括對某些非公認會計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。

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

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。現在讓我把電話轉給嚴執行長。

Thank you, Kristal, and hello, everyone. Thank you for joining us today. The second quarter of 2024 continued the growth trend from Q1 with a total sales volume of 256,000 units, reflecting a year-over-year increase of 21%. The China market saw a 16% year-over-year increase to 207,000 units while the overseas market experienced a significant year-over-year growth of 45% to 48,600 units.

謝謝克里斯塔爾，大家好。感謝您今天加入我們。 2024年第二季延續第一季的成長趨勢，總銷量達25.6萬輛，較去年同期成長21%。中國市場年增16%至20.7萬輛，海外市場較去年同期大幅成長45%至4.86萬輛。

Total revenue reached RMB940.5 million, marking a 13.5% year-on-year increase. This performance underscores the effectiveness of our strategic focus on expanding product, field channel and market coverage. We have made substantial progress in both China and overseas market reflected in the improved performance and increased recognition from our partners.

總收入達人民幣9.405億元，年增13.5%。這項業績凸顯了我們在擴大產品、現場通路和市場覆蓋範圍方面的策略重點的有效性。我們在中國和海外市場都取得了長足的進步，這體現在業績的改善和合作夥伴的認可增加。

In China, we focus on enhancing our product portfolio with new offerings around the core series. The new product introduced to receive positive feedback from users. In Q1, we launched product strategy to focus on target groups and Q2 expand our product offerings to further meet the diversified needs from the core groups.

在中國，我們專注於圍繞核心系列推出新產品來增強我們的產品組合。新產品一推出就得到了用戶的正面回饋。第一季度，我們推出了聚焦目標群的產品策略，第二季度擴大了產品種類，進一步滿足核心群體的多元化需求。

In the overseas market, we have significantly expanded our sales network for micro mobility product by partnering with the key retail channels. This expansion has greatly increased our market presence expected to further drive long-term growth.

在海外市場，我們透過與主要零售通路合作，大幅擴大了微出行產品的銷售網絡。此次擴張大大增加了我們的市場份額，預計將進一步推動長期成長。

In the electric two-wheeler segment, we are optimizing our business operations to focus on key markets. We have completed the initial phase of building a foundation of direct sales in key markets in Europe and United States for our key products. Although the strategy to invest more heavily in local operations takes time to implement in the beginning, we're confident that direct-to-market approach allows us to adapt more to local market, thus can bring substantial growth in the long term.

在電動兩輪車領域，我們正在優化業務運營，專注於關鍵市場。我們已經完成了重點產品在歐洲和美國主要市場的直銷基礎的初始階段。儘管增加本地業務投資的策略一開始需要時間來實施，但我們相信直接面向市場的方式使我們能夠更適應本地市場，從而可以帶來長期的大幅成長。

Now let me dive into the China market. Our growth is driven by strategic focus on product portfolio expansion, sales channel growth, and same-store sales improvement. This year, we emphasized on product divestment on targeting both the high-end premium segment to reinforce our brand premium image and specific consumer segment like Gen Z and premium users.

現在讓我深入了解中國市場。我們的成長是由產品組合擴張、銷售通路成長和同店銷售改善的策略重點所推動的。今年，我們強調產品撤資，既針對高端細分市場，以強化我們的品牌高端形象，也針對 Z 世代和高端用戶等特定消費群體。

We initiated effort to expand sales channel by increasing the number of stores in previous under-penetrated cities. Additionally, we strengthened our omnichannel approach, integrating online-offline strategy to boost same-store sales.

我們開始努力拓展銷售管道，在原有滲透率較低的城市增加門市數量。此外，我們加強了全通路策略，整合線上線下策略以提高同店銷售。

In Q1, we introduced the NXT, our most premier electric bicycle price at RMB12,899. It quickly became the leading product in segments, equipped with advanced features like full function ABS, GPS, blind spot detection, a car-grade dashboard, and 1 millimeter wave radar.

第一季度，我們推出了NXT，這是我們最優質的電動自行車，價格為人民幣12,899元。它迅速成為細分市場的領先產品，配備全功能ABS、GPS、盲點偵測、車規級儀錶板、1毫米波雷達等先進功能。

Ready on this success, we launched the N Play electric motorcycle and UMax electric bicycle designed to appear to the young Gen Z riders. The N Play refer to classic [N] design and the UMax offer a larger form factor, inherited the classic U Series design.

為這項成功做好準備，我們推出了 N Play 電動摩托車和 UMax 電動自行車，專為年輕的 Z 世代騎士設計。 N Play參考了經典的[N]設計，UMax提供了更大的外形尺寸，繼承了經典的U系列設計。

Additionally, we focus on female demographic by launching upgraded [U1E] in March coincided with the International Women's Day, combining the classic design with user-friendly and safety-focused features. Those new products are well received, collectively accounting for more than 50% all units sold in Q2, underscoring our strategic focus on targeting product development.

此外，我們在 3 月恰逢國際婦女節推出升級版 [U1E]，將經典設計與用戶友好和注重安全的功能相結合，專注於女性人群。這些新產品廣受好評，合計佔第二季銷售總量的 50% 以上，凸顯了我們瞄準產品開發的策略重點。

In Q2, we continued the product development strategy to roll out our key premium products and expand the product portfolio for Gen Z and female users. We prepared the launch of NXT, our most premium electric motorcycles, which was recently released in the market in July. The NXT offers a customizable smart tire pressure monitoring system, high-quality dual disc brakes, and adjustable suspension for smooth ride.

第二季度，我們持續實施產品開發策略，推出關鍵優質產品，並擴大針對 Z 世代和女性用戶的產品組合。我們準備推出 NXT，這是我們最優質的電動摩托車，最近於 7 月在市場上發布。 NXT 提供可自訂的智慧胎壓監測系統、高品質雙碟式煞車以及可實現平穩行駛的可調式懸吊。

Equipped with the most up-to-date Niu smart functionalities, the NXT is priced from RMB6,500 to RMB20,900. We believe the product will not only contribute to the sales volume, but also reinforce the youth's leading position in the premium electric scooter market.

NXT配備了最新的小牛智慧功能，售價為6,500元至20,900元。我們相信該產品不僅有助於銷量，還將鞏固年輕人在高端電動滑板車市場的領先地位。

To continue to explore products targeting the Gen Z user group, we recently launched the [NT Play], an electric bicycle that inherited the classic design of the N series, and it combines the advanced motorcycle grade high-to-weight electric bike. Equipped with smart features such as keyless ignition, GPS traction control, cruise control, and the push-pull safety during the ride. The NT is priced competitively at RMB4,499.

為了繼續探索針對Z世代用戶群的產品，我們最近推出了【NT Play】電動自行車，這款電動自行車繼承了N系列的經典設計，並結合了先進的摩托車級高重量電動自行車。配備免鑰匙點火、GPS牽引力控制、巡航控制、騎乘過程中的推拉安全等智慧功能。 NT 的價格為 4,499 元人民幣，極具競爭力。

For the female consumer segment in May, we released the [O Series] to complete our product offerings covering the premium female sector. The O Series is designed for young female riders with focused on comfort and looks. It emphasizes easy long-distance riding, safety, simple operations, and design excellence. Key design features include comfortable seating, ergonomic handles, stable riding triangle, in addition to the new smart features to ensure delightful and a comfortable riding experience for urban commuters.

5月份，針對女性消費群體，我們發布了【O系列】，完善了覆蓋高端女性群體的產品線。 O系列專為年輕女性騎士設計，注重舒適度和外觀。它強調輕鬆的長途騎行、安全、操作簡單和卓越的設計。主要設計特點包括舒適的座椅、符合人體工學的手柄、穩定的騎乘三角，以及新的智慧功能，確保為城市通勤者帶來愉快、舒適的騎乘體驗。

So our product rollout strategy positions youth's portfolio with premium product while also focusing on diversified offering for unique user needs. Each product maintains a consistent design element, a new signature halo light to help strengthen our brand recognition in the market. Now for our marketing campaigns this year, we have strategically focused on benefiting target user groups with our new product launches.

因此，我們的產品推出策略以優質產品定位年輕人的產品組合，同時也專注於滿足獨特使用者需求的多元化產品。每款產品都保持一致的設計元素，新的標誌性光暈燈有助於增強我們的品牌在市場上的認知度。對於今年的行銷活動，我們的策略重點是透過新產品的發布使目標用戶群受益。

So specifically, we have integrated marketing efforts aimed at the Gen Z and female demographics. To engage the Gen Z group, we expanded our partnership with JD Gaming, a popular online gaming team in China through co-branded product launches, live stream sessions, and the gaming competition sponsorships. Additionally, we collaborate with [Razer Include] launching a new Razer SQi limited edition and participating in a game competition across 15 universities generating over 50 million views online.

具體而言，我們針對 Z 世代和女性族群進行了整合行銷工作。為了吸引 Z 世代群體，我們透過聯名品牌產品發布、直播和遊戲比賽贊助擴大了與中國熱門線上遊戲團隊京東遊戲的合作關係。此外，我們還與 [Razer Include] 合作推出了新的 Razer SQi 限量版，並參加了 15 所大學的遊戲競賽，在線觀看次數超過 5000 萬次。

Other initiatives including a sponsored [UH] basketball team game and the running university new KOL ambassador programs. With the product focused on female user group, we launched a targeted sales and marketing initiative.

其他舉措包括贊助 [呃] 籃球隊比賽和舉辦大學新 KOL 大使計劃。針對女性用戶群的產品，我們推出了有針對性的銷售和行銷措施。

For the O Series launch, we executed a comprehensive campaign on the Xiaohongshu leveraging KOL content marketing and influencer event. This included widespread exposures, in-depth user experience, and media coverage. Across all platforms, we have our content around the product released this year gaining 1.1 billion views.

為了推出 O 系列，我們利用 KOL 內容行銷和影響者活動在小紅書上進行了全面的活動。這包括廣泛的曝光、深入的用戶體驗和媒體報導。在所有平台上，我們圍繞今年發布的產品發布的內容獲得了 11 億次瀏覽。

With those marketing effort, Niu products to observe the significant increase interaction across all social media platforms. This quarter, the Niu brand received a total of 125 million interactions representing a 22% increase year over year. The growth interactions on social media platform indicates that both our product and marketing campaigns have finished significant traction and effectively resonate with our audience.

透過這些行銷努力，小牛產品觀察到所有社群媒體平台上的互動顯著增加。本季，小牛品牌共獲得1.25億次互動，較去年同期成長22%。社群媒體平台上互動的成長表明我們的產品和行銷活動都已經完成了巨大的吸引力並有效地引起了受眾的共鳴。

Now regarding the sales network expansion, we made an effort to enhance our sales network through both channel expansions and same-store sales improvement. Driven by the new product introductions, we resumed the channel expansion this year, opening 400-plus new stores in the first half, resulting in close to 300 store adds, primarily in Tier 3 and Tier 4 cities.

現在在銷售網路拓展方面，我們透過通路拓展和同店銷售提升兩個面向來加強我們的銷售網絡。在新品推出的推動下，我們今年恢復了通路擴張，上半年新開店超過400家，新增門市接近300家，主要分佈在三、四線城市。

While this growth is modest compared with our total store counts, it signals the start of renewed momentum in our sales network expansion. We anticipate a continued positive trend in Q3 and Q4.

雖然與我們的商店總數相比，這一增長幅度不大，但它標誌著我們的銷售網絡擴張新勢頭的開始。我們預計第三季和第四季將繼續呈現正面趨勢。

In addition to new store openings, our key focus this year has been on improving same-store sales through our omnichannel approach, driving online traffic to offline stores. We significantly increased our effort on the traditional e-commerce platform with online orders accounting for 48% of total orders in first half versus last year at 26%.

除了開設新店外，我們今年的重點是透過全通路方式提高同店銷售，將線上流量引入線下商店。我們大幅增加了對傳統電商平台的投入，上半年網路訂單佔總訂單的比例為48%，而去年為26%。

In addition to traditional e-commerce platform, we actively expand our online presence on Douyin, Xiaohongshu, and Kuaishou, leveraging a strong content from our influencer network, those platforms became our fastest-growing channels. For example, on Douyin, we ramped up the in-store live stream sessions across 15 major cities, conducting more than 500 sessions and nearly 2,000 hours of streaming this quarter.

除了傳統的電子商務平台外，我們還積極拓展抖音、小紅書和快手的線上業務，利用影響者網路的強大內容，這些平台成為我們成長最快的管道。例如，在抖音上，我們在 15 個主要城市加大了店內直播的力度，本季度進行了 500 多場直播，直播時長近 2000 小時。

By end of Q2, over 22,000 orders were placed on Douyin compared to a double digit from same period last year. Those efforts improved same-store sales by close to 7% year over year in Q2 laid a strong foundation for future growth.

截至第二季末，抖音訂單量超過2.2萬單，較去年同期成長兩位數。這些努力使第二季同店銷售額年增近7%，為未來成長奠定了堅實的基礎。

Now let me turn to the overseas market. This quarter marks a period of growth in strategic execution. In the micro mobility category, we achieved a 54% year-over-year growth in volume and launched a key strategic partnership to expand our sales network. For electric two-wheeler segment, we focused on building direct sales operations to revive our market presence in key markets.

現在讓我談談海外市場。本季標誌著策略執行的成長期。在微型行動類別中，我們的銷量年增了 54%，並建立了重要的策略合作夥伴關係以擴大我們的銷售網絡。對於電動兩輪車細分市場，我們專注於建立直銷業務，以重振我們在主要市場的市場份額。

In micro mobility, we leverage our established product portfolio to grow market presence by updating well-received products with new versions and enhance channel nutrition in key offline channels. In Q2, we introduced the KQi 300 series as a significant update to the popular KQi 3 series, offering versatile and powerful options for urban commuting, including the KQi 300P and 300X.

在微出行方面，我們利用現有的產品組合，透過對廣受好評的產品進行新版本更新來擴大市場佔有率，並增強線下關鍵通路的通路營養。在第二季度，我們推出了 KQi 300 系列，作為廣受歡迎的 KQi 3 系列的重大更新，為城市通勤提供多功能且強大的選擇，包括 KQi 300P 和 300X。

Both features events due to hydraulic suspension system for smooth ride over rough surfaces. Both models include smart connectivity to the new app, enhancing the overall riding experience with customizable settings and safety features. The KQi 300 sold over 10,000 units in the first few months during its launch and quickly attract attention from influencers, media and industry.

兩者均採用液壓懸吊系統，可在粗糙的路面上平穩行駛。兩種型號均包含與新應用程式的智慧連接，透過可自訂的設定和安全功能增強整體騎乘體驗。 KQi 300 在推出的頭幾個月內銷量超過 10,000 台，並迅速吸引了影響者、媒體和行業的注意。

In the first half of 2024, we also expand our micromobility offline retail channels. In key countries in the US, Germany, and Australia, achieving notable growth in the key markets. In the US, in July, we announced our strategic partnership entering all 800-plus Best Buy stores. This milestone allows us to reach a wide market across the United States.

2024年上半年，我們也拓展了微出行線下零售通路。在美國、德國、澳洲等重點國家，重點市場達到顯著成長。 7 月，我們在美國宣佈建立戰略合作夥伴關係，進入所有 800 多家百思買商店。這一里程碑使我們能夠進入美國各地的廣大市場。

Build on this momentum, we're also collaborating with Walmart, Kohl's, Target, and Home Depot to diversify our product offerings across various channels. Similar expansion efforts were carried out in Europe and Australia.

在此勢頭的基礎上，我們也與沃爾瑪、Kohl's、Target 和 Home Depot 合作，透過各種管道實現產品供應多元化。歐洲和澳洲也進行了類似的擴張努力。

In Germany, our products are now over 400 MediaMarkt at home stores. And with successful pilot programs, Australia saw a considerable progress with JB Hi-Fi stores increasing to 230, and hundreds of [Blue Guys] and [Harvard Women's] stores also displaying our products. Now moving forward, I'll focus on for the rest of the year to leverage our well-rounded product portfolio and establish a sales network to drive growth in both sales volume and profitability.

在德國，我們的產品現已在 400 多家 MediaMarkt 家居商店銷售。透過成功的試點計劃，澳洲取得了長足的進步，JB Hi-Fi 商店增加到 230 家，數百家 [Blue Guys] 和 [Harvard Women's] 商店也展示我們的產品。現在，展望未來，我將在今年剩餘時間裡專注於利用我們全面的產品組合併建立銷售網絡，以推動銷售和獲利能力的成長。

In response to change the input tariffs to the United States, we have initiated efforts to relocate in part of manufacturing outside China.

為了因應美國進口關稅的變化，我們已經開始努力將部分製造業轉移到中國境外。

Now shifting to the electric two-wheeler segment, the business decreased by 69% year over year in first half 2024, driven by both external and internal factors. Externally, key markets in Europe, like Germany, France, and Dutch region saw a significant drop in the total market volume after withdraw of government subsidies for clean energy product, leaving over a 50% decrease in total market size.

現在轉向電動兩輪車領域，在外部和內部因素的推動下，2024年上半年業務年減69%。外部方面，德國、法國、荷蘭地區等歐洲主要市場在清潔能源產品政府補貼取消後，市場總量大幅下降，市場總量下降超過50%。

Internally, we transitioned to a direct sales model in core markets, while this shift will drive substantial long-term growth, it requires time to be fully implemented and relied. By Q2, we have added 100-plus dealers on board in those key countries, and those build a good foundation for future growth when the market starts to turn around.

在內部，我們在核心市場轉型為直銷模式，雖然這種轉變將帶動長期的大幅成長，但全面實施和依賴仍需要時間。到第二季度，我們在這些主要國家/地區增加了 100 多家經銷商，這些經銷商為市場開始好轉時的未來成長奠定了良好的基礎。

Now looking ahead, we're optimistic about the coming quarters for both China overseas operations. In China, we'll continue our strategy of optimizing product portfolio with premium products and Gen Z mass premium products to be announced in this market in July and August, including same-store sales with omnichannel approach and building our market efforts around the specific consumer segments. Those adjustments have shown very positive results in Q1 and Q2, and we're confident that this will bring faster growth in Q3 and Q4.

現在展望未來，我們對中國海外業務的未來幾季持樂觀態度。在中國，我們將繼續實施優化產品組合的策略，推出優質產品和將於7 月和8 月在該市場推出的Z 世代大眾優質產品，包括採用全通路方式的同店銷售以及圍繞特定消費者開展市場工作段。這些調整在第一季和第二季顯示出了非常積極的效果，我們有信心這將為第三季和第四季帶來更快的成長。

Overseas market, we expect sustained growth in micro mobility segment supported by the comprehensive product portfolio and a solid channel presence in the key markets like Germany, US, and Australia. We have observed a strong 32% year-on-year growth in the product activation in July, and those growth are sustainable throughout the year.

在海外市場，我們預計在德國、美國和澳洲等主要市場的全面產品組合和穩固的通路影響力的支持下，微移動細分市場將持續成長。我們觀察到 7 月的產品活化量年增 32%，且這種成長在全年都是可持續的。

In the electric two-wheeler market, while we are updating our product offerings, our focus remains on expanding the dealer network throughout the rest of the year to retain the dealer network footprint.

在電動兩輪車市場，雖然我們正在更新我們的產品，但我們的重點仍然是在今年剩餘時間內擴大經銷商網絡，以保持經銷商網路的足跡。

Now with that, let me turn the call to Fion.

現在，讓我把電話轉給菲昂。

Thank you, Yan. 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 site for your easier reference. As I review our financial results, I'm referring to the second quarter figures, unless I say otherwise, and all monetary figures are in RMBif not specified.

謝謝你，嚴。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。當我回顧我們的財務表現時，除非另有說明，否則我指的是第二季的數據，如果沒有特別說明，所有貨幣數據均以人民幣為單位。

As Yan just mentioned, our total sales volume for the second quarter was 256,000 units, up 21% compared to the same period of last year. 208,000 units were sold in China, while the remaining 48,000 units were sold overseas. Nearly 60% of our sales volume in China was contributed by the new products launched this year. And the total revenue for the second quarter amounted to RMB940 million, up RMB112 million or 13.5% compared to the same period of last year.

正如嚴剛所提到的，我們第二季的總銷量是25.6萬輛，比去年同期成長了21%。國內銷售20.8萬輛，海外銷售4.8萬輛。我們在中國的銷售近60%是由今年推出的新產品貢獻的。第二季總營收為9.4億元，年增1.12億元，成長13.5%。

China revenue was RMB8.2 million, accounting for 85% of the total revenues. And of this, the scooter revenue was RMB727 million, up 14% year-over-year. And this increase was mainly due to the higher sales volume and partially offset by a decrease in the revenue for scooters. China scooter ASP was RMB3,503 down 2% year over year and 2% quarter over quarter. The year-over-year decline in ASP was mainly due to a change in product mix within the premium series.

中國區收入為人民幣820萬元，佔總收入的85%。其中，滑板車收入為人民幣7.27億元，年增14%。這一增長主要是由於銷量增加，部分被踏板車收入的下降所抵消。中國踏板車平均售價為人民幣3,503元，較去年同期下降2%，季減2%。平均售價年減主要是由於高端系列產品結構的變化。

This quarter, the sales volume of our high-end lead acid motorcycles grew favorably in the premium market, accounting for one-third of the sales in our premium series. And these models are typically offered a competitive price, which explains the slightly decline in ASP and margins as well.

本季度，我們的高階鉛酸摩托車在高端市場的銷售成長良好，占我們高端系列銷售的三分之一。這些型號通常提供有競爭力的價格，這也是平均售價和利潤率略有下降的原因。

The overseas revenue were RMB138 million, accounting for 15% of the total revenue. The scooters revenue, including the motorcycles, the mopeds, kick scooters, and the bikes, amounted to RMB130 million compared to [RMB150 million] in the same period of last year. And this growth was mainly due to the increased sales of kick scooters orders and partially offset by the decline in the sales of electronic motorcycles and mopeds.

海外收入為人民幣1.38億元，佔總收入的15%。滑板車收入（包括摩托車、輕便摩托車、踏板車和自行車）為 1.3 億元，去年同期為[人民幣 1.5 億元]。這一增長主要是由於踏板車訂單銷量的增加，部分被電動摩托車和輕型摩托車銷售的下降所抵消。

The micro mobility revenue was around RMB119 million, up 32% year-over-year and the overseas scooter ASP decrease from RMB3,430 to RMB2,682 year-over-year as the increased proportion in the sales volume of kick scooters. However, compared to the first quarter of 2024, the ASP increased 4% quarter-over-quarter. The revenue from accessories, spare parts and services amounted to RMB83 million, a 10% increase compared to the same period of last year due to the increase of sales spare parts in China market.

微行程收入約人民幣1.19億元，較去年成長32%，海外滑板車平均售價較去年由人民幣3,430元下降至人民幣2,682元，因滑板車銷售佔比增加。不過，與 2024 年第一季相比，平均售價較上季成長了 4%。配件、備品及服務收入為人民幣8,300萬元，較去年成長10%，主要得益於中國市場銷售備件的增加。

And the gross margin for the second quarter was 17%, [6.1 point] lower than the same period of last year and 1.9 ppt lower than the previous quarter. This decline is mainly due to the lower margins of China scooters and an increased proportion of the overseas kick scooters with a lower margin.

第二季毛利率為17%，較去年同期下降[6.1個百分點]，較上季下降1.9個百分點。這一下降主要是由於中國滑板車的利潤率較低以及利潤率較低的海外滑板車比例增加所致。

In China, as we mentioned previously, our high-end lead acid motorcycles offered a lower margin compared to our plastic premium lithium ions. And meanwhile, we contributed to allocate part of the margins to our domestic distribution partners to reward their loyalty to the company. And talking about operating expenses, the second quarter OpEx was RMB192 million, representing a 3.5% decrease compared to the same period of last year. And the total OpEx ratio decreased from 24% to 20%.

在中國，正如我們之前提到的，與我們的塑膠優質鋰離子摩托車相比，我們的高端鉛酸摩托車的利潤率較低。同時，我們將部分利潤分配給國內分銷合作夥伴，以獎勵他們對公司的忠誠度。說到營運費用，第二季營運支出為人民幣1.92億元，較去年同期下降3.5%。總營運支出比率從 24% 下降至 20%。

Selling and marketing expenses were RMB120 million, up RMB11 million year-over-year, primarily due to the new product promotions in online shopping festival like June 18, May 20 and other advertisement in China. Selling and marketing expenses as a percentage of revenue was down from 13.2% to 12.8%. R&D expenses amounted to RMB32 million, down RMB9 million year over year and mainly due to a decrease of RMB9 million in share-based compensation and staff costs.

銷售及行銷費用為人民幣1.2億元，較去年增加人民幣1,100萬元，主要是由於6月18日、5月20日等中國網購節新品促銷及其他廣告所致。銷售和行銷費用佔收入的百分比從 13.2% 下降至 12.8%。研發費用為3,200萬元，年減900萬元，主要是因為股權激勵和員工成本減少900萬元。

R&D expenses as a percentage of revenue went down from 5% to 3.4%. G&A expenses were RMB39 million, down RMB9 million year-over-year, mainly due to the decrease in the allowance for doubtful accounts. G&A expenses as a percentage of revenue went down from 5.8% to 4.2%.

研發費用佔收入的比例從5%下降至3.4%。管理及行政費用為人民幣0.39億元，較去年同期減少人民幣900萬元，主要是因為呆帳準備減少所致。 G&A 費用佔收入的百分比從 5.8% 下降至 4.2%。

In the second quarter, we had a net loss of RMB25 million with a net loss margin of 2.6% under the GAAP accounting compared to a net loss of RMB2 million for the same period of last year. The adjusted net loss was RMB20 million with an adjusted net loss margin of 2.1%.

第二季度，我們的淨虧損為人民幣2,500萬元，依照美國通用會計準則核算，淨虧損率為2.6%，而去年同期淨虧損為200萬元人民幣。調整後淨虧損為人民幣2,000萬元，調整後淨虧損率為2.1%。

And turning to our balance sheet and cash flow. We ended the quarter with RMB1.3 billion in cash, restricted cash, term deposits and short-term investments. Last quarter, this amount was RMB1.2 billion, and last year-end was RMB1.1 billion. Our operating cash inflow amounted to RMB174 million and we expect the operating cash flow to remain healthy going forward.

轉向我們的資產負債表和現金流。截至本季末，我們持有現金、限制性現金、定期存款和短期投資 13 億元。上季該金額為12億元人民幣，去年年底為11億元。我們的經營現金流入為人民幣1.74億元，我們預期未來經營現金流將保持健康。

The CapEx for this quarter was the outflow of RMB20 million, and reflecting an increase of RMB5 million compared to the same period of last year. This can be attributed primarily to an increase in the opening of new stores in China.

本季資本支出流出2000萬元，較去年同期增加500萬元。這主要歸因於在中國開設新店的增加。

And now let's turn to the guidance. We expected the third quarter revenue to be in the range of RMB1,298 million to RMB1,483 million, an increase of 40% to 60% 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 subjected to change due to the uncertainties relating to various factors.

現在讓我們轉向指導。我們預計第三季營收將在人民幣12.98億元至人民幣14.83億元之間，年增40%至60%。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 for 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) Kai Kang, Citic.

（操作員指令）康凱，中信。

I'm Kai Kang from the Citic Securities and also from CLSA, and I have two questions. And the first question as we have mentioned that we will have a strong growth in the third quarter of the 2024. So what GTM do we think we can achieve in the third quarter as our volume will be much better with scale effect? And what's the -- maybe both in terms of long term or the midterm GTM we can achieve or kind of get? And that's the first question.

我是中信證券的康凱，也是里昂證券的康凱，我有兩個問題。第一個問題，正如我們所提到的，我們將在 2024 年第三季實現強勁成長。也許從長期或中期的 GTM 來看，我們可以實現或獲得什麼？這是第一個問題。

Sorry, let me repeat the question. So basically, you are asking about the third quarter strong growth and you're asking about the GTM? Or I think...

抱歉，讓我重複這個問題。基本上，您問的是第三季的強勁成長，您問的是 GTM？或者我認為...

Yes.

是的。

What do you mean by GTM? The go-to-market plan?

GTM 是什麼意思？上市計劃？

The gross profit margin.

毛利率。

Okay.

好的。

So regarding to the growth -- so you're asking about the reason why the gross margin dropped, right? This is Fion.

關於成長，您是在問毛利率下降的原因，對吧？這是菲昂。

nYes. And the trend of the gross profit margin in the next few quarters?

是的。以及未來幾季毛利率的走勢？

Okay. All right. So regarding to the gross margin, actually, this quarter and last quarter, the reason is mainly counting on the domestic gross margin drop. As I just explained, starting from this year, we plan to launch high-end lead acid motorcycles in our premium series.

好的。好的。那麼毛利率方面，其實這個季度和上個季度，主要還是國內毛利率下降了。正如我剛才所解釋的，從今年開始，我們計劃在我們的高級系列中推出高端鉛酸摩托車。

Normally in domestic market, we set a bar that the MSRP above RMB4,500 is our premium series. And below that is our mass premium series. And this year, our high-end lead acid motorcycles, the cheapest model of our high-end lead acid one is around RMB4,800.

通常在國內市場，我們設定的標準是建議零售價在人民幣4,500元以上是我們的高端系列。以下是我們的大眾優質系列。而今年我們的高階鉛酸摩托車，我們高階鉛酸摩托車最便宜的一款約在4800元。

So this means -- and we also launched the other lead acid high-end motorcycles set the price around RMB6,000 -- to RMB6,000 to RMB8,000 MSRP, which is also like in the -- the leader in the premium markets in our premium series and also in China market. But those lead acid one gross margin is around [5 to 7 point] gross margin less than our premium models.

所以這意味著——我們還推出了其他鉛酸高端摩托車，將價格定在人民幣 6,000 元左右——建議零售價為人民幣 6,000 元至人民幣 8,000 元，這也像——高端市場的領導者一樣在我們的高端系列以及中國市場。但那些鉛酸一級毛利率比我們的高端型號低 [5 到 7 個點] 左右。

Normally, our premium, [Li-San Mayang], got the gross margin around 22% to 28% gross margin. And the lead acid one is around [5 to 7 point] lower than our traditional premium lithium-ion ones.

通常情況下，我們的保費[Li-San Mayang]的毛利率在22%到28%左右。鉛酸電池比我們傳統的優質鋰離子電池低約 [5 到 7 個點]。

This main factors drive our gross margin in China market and also in blended -- in total to around 3%. And the rest 3% as I just explained last quarter that this year, since we launched the different new products fitting to different consumers. Like Yan just mentioned the Generation Z, the female one, the lead acid products, which are new to the market.

這些主要因素推動我們在中國市場以及混合市場的毛利率總計達到 3% 左右。剩下的3%，正如我上個季度剛剛解釋的那樣，今年我們推出了適合不同消費者的不同新產品。就像Yan剛才提到的Z世代，女性，鉛酸產品，這是市場上的新事物。

So we offered several points of the channel profit to our distributors to thank for their loyalty to our brands during last year and the year before that when we're facing the difficulties in the domestic market. And also to boost their confidence and help us to build in the more healthier sales channel in the domestic market, and that's why we are able to open the new stores in the first half of this year, more than 400 new stores in China market. And those are the two major points, which dragged down our gross margin in China market.

所以我們把通路利潤的幾分給我們的經銷商，以感謝他們去年和前年在國內市場遇到困難的時候對我們品牌的忠誠。也是為了提振他們的信心，幫助我們在國內市場建立更健康的銷售管道，這就是為什麼我們能夠在今年上半年開設新店，在中國市場新開店超過400家。這就是拖累我們在中國市場毛利率的兩個主要因素。

And in the meanwhile, our overseas markets, the kick scooters revenue contributes around 14% of our total revenues compared to only 10% in last year. And those increased proportion of the overseas kick scooters also dragged down our blended gross margin in total.

同時，在我們的海外市場，滑板車收入占我們總收入的 14% 左右，而去年僅為 10%。而海外滑板車比例的增加也拖累了我們的綜合毛利率。

And those are the main reason why the gross margin dropped compared to last year. But for the following quarters and when we see this overall this year's guidance. We won't expect our year-end or the average annual gross margin go back to around 22% to 23% as we previously did in 2021 or 2022.

這是毛利率較去年下降的主要原因。但對於接下來的幾個季度以及當我們看到今年的整體指導時。我們預計年底或平均年毛利率不會像我們之前在 2021 年或 2022 年那樣回到 22% 至 23% 左右。

But we expected the gross margin this year will be lower than the year before that and last year but still will remain at the higher level when we compare to our competitors in the China scooters market. This is -- I hope that will answer your question.

但我們預計今年的毛利率將低於前年和去年，但與中國踏板車市場的競爭對手相比仍將維持在較高水準。這就是——我希望這能回答你的問題。

I see the trend on this margin. And also, you also mentioned about the new shops and new dealer networks that we are expanding in China. And so do we now have a higher target on the dealer network volume or shop volume in China at the end of this year? Or what's the target on the dealer network?

我看到了這一點的趨勢。此外，您還提到了我們正在中國擴張的新商店和新經銷商網路。那麼我們現在對今年年底中國的經銷商網路量或店鋪數量有更高的目標嗎？或是經銷商網路的目標是什麼？

I think the goal is actually -- I need to add another -- roughly another 1,000 stores this year, in addition to the existing ones we have. I think the first half I mean, we opened up 400-plus stores, but also, I think we shut down about 100 something. So basically, that resulted in net asset, close to 300 stores. I think the rest of what we're looking at is basically the same as last year. Basically, what do we need to do for Q3 and Q4?

我認為我們的目標實際上是——除了我們現有的商店之外，今年我還需要再增加約 1,000 家商店。我認為上半年，我們開設了 400 多家商店，但我認為我們關閉了大約 100 家商店。基本上，這導致淨資產接近 300 家商店。我認為我們正在關注的其餘內容與去年基本相同。基本上，我們需要為第三季和第四季做什麼？

James Joe, UBS.

詹姆斯喬，瑞銀集團。

I have one question. So the -- we all know that the new national standard is about to roll out in a few months. So there is any comment on the potential policy and maybe its impact on the high-end integrated markets we are in?

我有一個問題。所以，我們都知道，新的國家標準即將在幾個月後推出。那麼對於潛在的政策及其對我們所處的高端綜合市場的影響有何評論？

Well, I think we're still very closely monitor and actually looking study this new national standard. I think it has basically, it has -- the standard has some key things around better safeties, which actually may -- actually, I think will be actually positive news for us. And also have -- the standard also has some requirement on sort of the design form factors. So our design team is actually really looking into the standard and actually in the past, basically, our developing products, meeting new standards. So in terms of the impact, I guess, we had to just watch and see.

嗯，我認為我們仍在密切關注並實際研究這個新的國家標準。我認為它基本上，它有 - 該標準有一些圍繞更好的安全性的關鍵內容，這實際上可能 - 實際上，我認為這對我們來說實際上是積極的消息。還有——標準對設計外形因素也有一些要求。因此，我們的設計團隊實際上正在研究標準，實際上在過去，基本上我們正在開發產品，以滿足新標準。因此，就影響而言，我想我們只能拭目以待。

Yating Chen, CICC.

陳雅婷，中金公司。

I'm Yating from CICC. And my first question is, what is your expected gross margin of kick scooters in the mid-to long term because we can see that the gross margin of kick scooters may be lower than scooters in domestic market. So how can we improve the gross margin of kick scooters? And what is your expectation of it?

我是中金公司的雅婷。我的第一個問題是，您對滑板車中長期毛利率的預期是多少，因為我們可以看到滑板車的毛利率可能低於國內市場的滑板車。那麼如何才能提高滑板車的毛利率呢？您對此有何期待？

Well, this is Fion. I'll answer this question. Actually, our kick scooters gross margin remains almost stable for the past three quarters. When our sales volume ramped up to around 40,000 units per quarter, and in the meanwhile, the other reason why the gross margin remains stable is that we set up a stable partnership with our overseas sales partners. Like Yan just mentioned, in US, the Best Buy, Walmart, and also in the EU, the major electronic markets, like the MediaMarkt, those big partners.

嗯，這是菲昂。我來回答這個問題。事實上，我們的滑板車毛利率在過去三個季度幾乎保持穩定。當我們的銷售量上升到每季4萬輛左右的時候，同時毛利率保持穩定的另一個原因是我們與海外銷售夥伴建立了穩定的合作關係。就像嚴剛才提到的，在美國有百思買、沃爾瑪，還有在歐盟主要的電子市場，像是MediaMarkt這些大合作夥伴。

But this is -- about our kick scooters business is still at the very beginning stage. Even this year, we don't expect a huge increase compared to last year or we made a market, somebody in those countries.

但這是——我們的滑板車業務仍處於起步階段。即使今年，我們預計與去年相比也不會大幅成長，或者我們在這些國家建立了市場。

We still expect that when our sales volume reached around RMB0.5 million sales volume in total in the overseas market, we are able to see the scale of economy benefits from the production cost and also the buying power in the shipping and logistic cost. But below those sales volumes since we sell it across the US and the EU, there is no strong benefit from the cost reduction way for us.

我們仍然預計，當我們在海外市場的總銷售量達到50萬元左右時，我們能夠從生產成本以及運輸和物流成本中的購買力中看到經濟效益的規模。但由於我們在美國和歐盟銷售，銷量低於這些水平，因此降低成本的方式對我們來說並沒有帶來很大的好處。

And in the meantime, we didn't expect the kick scooter as they are profit -- as a profit stream to our company. We still see the kick scooter as the strategic footprint for our micro mobility and our mobility business in the developed countries to reinforce our brand and to help us build out the brand image compared with our motorcycles. And that's why we didn't put a harsh pressure on the kick scooter's profitability. Hope this will answer your questions.

同時，我們也沒有期望滑板車能帶來利潤──成為我們公司的利潤來源。我們仍然將滑板車視為我們在已開發國家的微型出行和出行業務的戰略足跡，以強化我們的品牌並幫助我們建立與摩托車相比的品牌形象。這就是為什麼我們沒有對滑板車的獲利能力施加太大壓力。希望這能回答您的問題。

It's very clear. And my second question is about expense ratio. Because we have seen a downward trend in operating expense ratio in quarter two. So will it continue to decline in the second half of the year quarter-to-quarter?

非常清楚。我的第二個問題是關於費用比率。因為我們看到第二季營業費用率有下降趨勢。那麼下半年季減還會繼續下滑嗎？

Yes, for sure. Once when our revenue increased and we get back to the right track in the growth of our business, those expenses as percentage of revenue will drop dramatically. Since last year, we already done the cost reduction and improved our operating efficiency at the second half of last year. Normally the expenses as kind of the fixed cost or fixed expenses are at the lowest level to our production and our business scale.

是的，當然。一旦我們的收入增加並且我們回到業務成長的正確軌道，這些費用佔收入的百分比將急劇下降。從去年開始，我們在去年下半年就已經做到了成本的降低和營運效率的提升。通常，固定成本或固定費用等費用對於我們的生產和業務規模來說處於最低水準。

And this year, the only thing -- will be changed -- the only expenses will be changed aligned with our revenue, the selling and marketing expenses. For the R&D and G&A, since the revenue increase, those expenses as percentage of revenue we dropped.

今年，唯一的事情將會改變，唯一的費用將與我們的收入、銷售和行銷費用保持一致。對於研發和一般行政費用，由於收入增加，這些費用佔收入的百分比有所下降。

And this year, we expect even the annual OpEx as a percentage of revenue will drop dramatically compared to last year will be back to the same level as the year before last, which is around -- annually around 16% to 20% is our normal level for the annual OpEx as a percentage of revenue.

今年，我們預計年度營運支出佔收入的比例將比去年大幅下降，並將恢復到前年的水平，每年約 16% 到 20% 左右是我們的正常情況年度營運支出佔收入的百分比水平。

(Operator Instructions) Seeing no more questions in the question queue. Let me turn the call back to Mr. Li for closing remarks.

（操作員說明）在問題佇列中看不到更多問題。讓我把電話轉回給李先生做總結發言。

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。

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。