小牛電動 (NIU) 2020 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Niu Technologies Fourth Quarter 2020 Earnings Conference Call. (Operator Instructions) As a reminder, we are recording today's call. (Operator Instructions)

美好的一天，女士們先生們。感謝您的支持，歡迎參加小牛科技 2020 年第四季財報電話會議。 （操作員說明）謹此提醒，我們正在對今天的通話進行錄音。 （操作員說明）

Now I will turn the call over to Mr. Jason Yang, Investor Relations Manager of Niu Technologies. Mr. Yang, please go ahead.

現在我把電話轉給小牛科技投資者關係經理楊傑先生。楊先生，請講。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter 2020. The earnings press release, corporate presentation and the financial spreadsheet have been posted on Niu's Investor Relations website. This call is being webcast from the company's IR website, 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，討論小牛科技 2020 年第四季度的業績。該電話會議正在該公司的投資者關係網站上進行網路直播，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 based under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve the risks, uncertainties, assumptions and other factors the company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and the Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required by law.

請注意，今天的討論將包含基於 1995 年美國私人證券訴訟改革法案安全港條款的前瞻性陳述。表達的不同。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 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 our CFO, Mr. Hardy Zhang. Now let me turn the call over to Yan.

今天與我通話的是我們的執行長李岩博士；和我們的財務長張哈迪先生。現在讓我把電話轉給 Yan。

Thanks, Jason, and thanks, everyone, for joining us on this call today. So in Q4, we saw a strong growth of the domestic China market and a strong signals for the overseas market recovery from COVID-19. We have had a substantial growth in Q4 with total sales volume reaching 150,000 units or 41.6% year-over-year increase.

謝謝傑森，謝謝大家今天加入我們的電話會議。因此，在第四季度，我們看到了中國國內市場的強勁成長，以及海外市場從 COVID-19 復甦的強烈訊號。第四季我們的銷量大幅成長，總銷量達到15萬輛，較去年同期成長41.6%。

The sales volume in the China market reached 137,000, a 35% year-over-year increase, where the volume in the international market rose by nearly 3x to more than 12,000 units, a 197.1% year-over-year increase. Despite the challenges that COVID-19 had on the market economic condition globally, our 2020 annual year sales volume (inaudible) 600,000 units, an increase of 42.8% compared to 2019. The sales volume in the China market [eclipsed] by 570,000 units, a 45.8% year-over-year increase, whereas the volume in the international market reached over 29,000 units, a slightly increase from 2019 despite the challenges that COVID-19 lockdown had on key markets around the world.

中國市場銷量達13.7萬輛，較去年成長35%；國際市場銷量成長近3倍，達到1.2萬多輛，較去年成長197.1%。儘管COVID-19為全球市場經濟狀況帶來了挑戰，但我們2020年的銷量（聽不清）為60萬台，比2019年增長了42.8%。 ，年增 45.8%，而國際市場銷量超過 29,000 輛，較 2019 年略有增長，儘管 COVID-19 封鎖給全球主要市場帶來了挑戰。

Despite the initial impact of COVID-19 in Q1 2020, we have realized a rapid growth last year. This result is well in line with our aggressive growth strategy makes Niu 2.0 set for 2020 and beyond. Under our Niu 2.0 strategy, we're rapidly expanding our product portfolio to meet the specific of different market segments of the urban commuter customers by leveraging our unique design and advanced technology.

儘管 COVID-19 在 2020 年第一季產生了初步影響，但我們去年實現了快速成長。這項結果非常符合我們為 2020 年及以後製定的小牛 2.0 積極成長策略。在牛隻2.0策略下，我們利用獨特的設計和先進的技術，快速擴展我們的產品組合，以滿足城市通勤客戶不同細分市場的具體需求。

In addition to expanding our product range, we are committed to expanding the reach of a retail sales network. This will mean expansion to more cities while simultaneously create a more dense sales network in existing cities. The year 2020 was the first year we put our Niu 2.0 strategy into play, and we have achieved significant results in both product portfolio and the sales network expansion.

除了擴大我們的產品範圍外，我們還致力於擴大零售網路的覆蓋範圍。這將意味著向更多城市擴張，同時在現有城市建立更密集的銷售網絡。 2020年是我們實施小牛2.0策略的元年，無論是產品結構或銷售網路拓展都取得了顯著成效。

In 2020, we introduced 4 new products to the China electric bicycle market segment the MQ, the [MS] and TQ, G0, all affordably priced between RMB 2,499 to RMB 5,799 approximately $375 to $900 at today's exchange rate. These 4 new electric bicycle products have been a hit in each of their respective target markets accounting for 41.2% of our 2020 sales. These 4 products cover the 2 major design style or simple naked e-bicycle and a fully covered e-bicycle with the riding range from 40 kilometers to 90 kilometer on single charge. We see multiple consumer segments mobility needs at affordable price.

2020 年，我們向中國電動自行車細分市場推出了4 款新產品：MQ、[MS] 和TQ、G0，價格均在2,499 元至5,799 元人民幣之間，按今天的匯率計算，約合375 至900 美元。這 4 種新的電動自行車產品在各自的目標市場都取得了成功，占我們 2020 年銷售額的 41.2%。這4款產品涵蓋了2大設計風格，即簡易裸裝電動自行車和單次充電續航里程從40公里到90公里的全覆蓋電動自行車。我們看到多個消費者群體對價格實惠的移動性需求。

Now for the electrical motorcycle market, we have expanded upon our signature MQi and NQi plus products. So we rolled out a G3 series in 2020 for the new market especially in China while introducing the NQi GT our international customers. The upgraded G3 is a bigger in size with fastest speeds reaching from 40 kilometers to 60 kilometers per hour and the price ranging from RMB 4,599 to RMB 6,799, a good complement to our electric motorcycle offerings.

現在，針對電動摩托車市場，我們擴展了我們的標誌性 MQi 和 NQi plus 產品。因此，我們在 2020 年針對新市場（尤其是中國）推出了 G3 系列，同時向國際客戶介紹了 NQi GT。升級後的G3尺寸更大，最高時速可達40公里至60公里/小時，價格為4,599元至6,799元，是我們電動摩托車產品的良好補充。

For the Europe and Americas market, we launched a new product called MQi GT, inherent to this design styles of our award winning M series. And combined with our GT powertrain technology, MQi GT is the dual battery electric moped with top speed up to 70 kilometers per hour and the range of 110 kilometers on a single charge, priced at EUR 3,399.

針對歐洲和美洲市場，我們推出了一款名為 MQi GT 的新產品，繼承了我們屢獲殊榮的 M 系列的設計風格。結合我們的 GT 動力總成技術，MQi GT 是一款雙電池電動輔助車，最高時速可達 70 公里/小時，一次充電可行駛 110 公里，售價為 3,399 歐元。

Besides scooter and motorcycle products, we continue to enrich our accessory portfolios. In 2020, we expanded our accessory lines by over 150 new products, with more than 1.6 million customers globally, we have a strong customer base to sell into. The 47.6% growth in accessory and spare part sales in 2020 for the China market last year, is indicator that we are on the right track to further tap into this revenue stream.

除了踏板車和摩托車產品外，我們還持續豐富我們的配件產品組合。 2020年，我們的配件系列增加了150多種新產品，在全球擁有超過160萬客戶，我們擁有強大的客戶群可供銷售。去年，2020 年中國市場的配件和備件銷售額增長了 47.6%，這表明我們正走在進一步利用這一收入來源的正確道路上。

Now supported by the new products launches in the third quarters in 2020, we accelerated our sales network expansion in Q4. In Q4, we added 350 branded stores that reached a total count of 1616 stores in China, setting the quarterly record in-store expansion. For the entire year, we added 566 stores, much more than the last 3 years despite the COVID-19 impact in the first 2 quarters. Not only we were able to add more stores, we also strengthened our footprint in more lower-tier cities around China. We now have 66 cities in China that have 5 or more new branded stores, a 30%-plus from 2019.

現在，在2020年第三季新產品推出的支持下，我們在第四季加快了銷售網路的擴張。第四季度，我們新增350家品牌門市，中國門市總數達到1,616家，創下季度店內擴張紀錄。儘管前 2 季受到了 COVID-19 的影響，但全年我們新增了 566 家門市，遠高於過去 3 年的數量。我們不僅能夠增加更多門市，也加強了在中國更多低線城市的足跡。目前，我們在中國 66 個城市擁有 5 家或更多新品牌店，較 2019 年成長 30% 以上。

Now for international market in 2020, we have increased our market coverage to 46 countries from 38 in 2019. We added an additional 90 flagship stores and the premium stores across the globe. Outside China, we now have 116 flagship and premium stores as compared to 26 at the end of 2019 despite the COVID-19 situation. Keep in mind that we continue to sell products to a network of more than 1,000 dealers outside China. The expansion of our new flagship and premium overseas stores will be of great benefit to future retail growth as we expand the product range to meet mobility needs and trends of those regions.

現在，在2020年的國際市場上，我們的市場覆蓋範圍從2019年的38個國家增加到46個國家。儘管出現了新冠肺炎 (COVID-19) 疫情，但在中國境外，我們目前擁有 116 家旗艦店和高端店，而 2019 年底為 26 家。請記住，我們繼續向中國境外 1,000 多家經銷商組成的網路銷售產品。隨著我們擴大產品範圍以滿足這些地區的行動需求和趨勢，我們新的旗艦店和優質海外店的擴張將對未來的零售成長產生巨大的好處。

Now in addition to the channel expansion in the international market, we also made significant strides in our B2B division, especially sales to support the scooter sharing operators. Most notably is the contract we signed with Lime in Q4 2020, the largest mobility share operator globally. We're now running sole solution provider for the multi sharing. Globally, now we support 19 share operators in Europe and Americas, with our total number of vehicles in service doubling in 2020. In many market shared scooters play a key role in introducing the electric mobility to a wider range of customers, a key first step in helping us redefine urban mobility globally.

現在，除了國際市場的通路擴張外，我們在 B2B 部門也取得了重大進展，特別是支援滑板車共享營運商的銷售。最值得注意的是我們在 2020 年第四季與全球最大的行動共享營運商 Lime 簽署的合約。我們現在正在運行唯一的多重共享解決方案提供者。在全球範圍內，我們現在為歐洲和美洲的19 家共享營運商提供支持，到2020 年，我們的服務車輛總數將增加一倍。出遊方面發揮關鍵作用，這是關鍵的第一步幫助我們重新定義全球城市交通。

To support our Niu 2.0 growth strategy of aggressively entering urban mobility market, we also expanded our branding and marketing activities. Starting in 2020, we invested advertising in mainstream online TV series and popular shows in China, which accumulated over 2.5 billion views online/off-line during the airing of those programs.

為了支持積極進軍城市出行市場的小牛2.0成長策略，我們也擴大了品牌和行銷活動。從2020年開始，我們在中國主流網路電視劇和熱門節目中投入廣告，節目播出期間累積線上線下觀看量超過25億次。

We continue to invest our effort in Niu social media channels like Douyin and Kuaishou as well. With our Douyin and Kuaishou quarterly views reaching 15 million and 20 million, respectively. This represents a 10x increase over 2019. In overseas market in Q4, specifically, we have upped our effort in social media with close to 1.3 million interactions on Instagram and Facebook.

我們也繼續在抖音和快手等小牛社交媒體管道上投入精力。我們的抖音和快手季度瀏覽量分別達到 1500 萬和 2000 萬。這比 2019 年成長了 10 倍。

Particularly Bella Hadid, the top American supermodel was spotted riding a new scooter in New York City with friends in September 2020, which was featured in Vogue media as well. We also continue to invest in co-branding cooperating and marketing activities. In Q4, we launched an MS Electric bicycle Gundam limited edition. For your reference, Gundam is incredibly popular Japanese cartoon series. In a few short days after the launch of the project, we amassed more than 50 million unique views across the variety of social channels.

尤其是美國頂級超模貝拉哈迪德 (Bella Hadid) 於 2020 年 9 月被發現與朋友在紐約騎著一輛新踏板車，《Vogue》媒體也對此進行了專題報道。我們也持續投資聯合品牌合作和行銷活動。第四季度，我們推出了MS電動自行車高達限量版。供您參考，高達是非常受歡迎的日本卡通系列。在專案啟動後的短短幾天內，我們在各種社交管道上累積了超過 5000 萬次獨特的瀏覽量。

Now our enthusiastic users have also created many interesting stories in 2020. We had a Niu (inaudible) from Shanghai who spent a 261 days driving along the entire border of China amassing more than 30,000 kilometers.

現在我們熱心的用戶在2020年也創造了很多有趣的故事。

In the U.S., we have one of our overseas [unique users] making a video of extreme sky diving riding out of back of plane on a new moped. And the customers in [Bali] decided to modify our traffic panels with traditional Balinese (inaudible) panels highlighting how and EV and ecology can promote sustainable mobility.

在美國，我們的一位海外[獨特用戶]製作了一段騎著新型輕便摩托車從飛機後部進行極限跳傘的影片。 [峇裡島]的客戶決定用傳統的峇裡島（聽不清楚）面板修改我們的交通面板，強調電動車和生態如何促進永續交通。

And a quick fun fact for you, as of this morning, our users around China have now amassed more than 7.8 billion kilometers of riding distance. Now each of those kilometers is a testament to the important role we play in the daily life of our users who depend on us to get work, do work and go out for a casual cruise. Both branding and marketing effort has significantly increased our brand awareness.

為您帶來一個有趣的事實，截至今天早上，我們在中國各地的用戶已經累積了超過 78 億公里的騎行距離。現在，每一公里都證明了我們在使用者的日常生活中所發揮的重要作用，這些使用者依靠我們來上班、工作和外出休閒巡航。品牌和行銷工作都顯著提高了我們的品牌知名度。

Niu is being voted as the Most Valuable Brand in Urban Mobility in China by [Manager] a leading financial magazine in China. As we wrap up a successful year 2020, we are very optimistic for 2021. Our addressable market in China, the lithium-ion-based electric bicycle and motorbike market will continue enjoying rapid growth that can be directly attributed to a handful of key factors and events.

小牛被中國領先財經雜誌《經理人》評選為中國城市出行最具價值品牌。在我們結束了成功的 2020 年之際，我們對 2021 年非常樂觀。 我們在中國的潛在市場，鋰離子電動自行車和摩托車市場將繼續快速成長，這可以直接歸因於幾個關鍵因素和事件。

First of all, the overall electric 2-wheeler market is expected to grow by double digits, simply because the old acid battery scooters will need to be retired due to the expiration of the temporary licenses granted back in 2018 and 2019. Starting this year, this will create additional demand of more than 2 million units every year over the next 3 or 4 years.

首先，整個電動兩輪車市場預計將以兩位數成長，原因很簡單，由於 2018 年和 2019 年頒發的臨時許可證到期，舊的酸電池踏板車將需要退役。在未來3 到4 年內每年創造超過200 萬台的額外需求。

Secondly, the downward pressure on the cost of lithium-ion batteries will help to further increase the penetration of lithium-ion battery powered e-bikes than e-motorcycles. Just in the last past 2 years, we have observed this trend. In 2019, the lithium battery powered e-bikes and e-motorcycles accounted for less than 10% of the total market in China. And by end of 2020, it's already in its high teens.

其次，鋰離子電池成本下降的壓力將有助於進一步提高鋰離子電池動力電動自行車比電動摩托車的滲透率。就在過去的兩年裡，我們觀察到了這個趨勢。 2019年，鋰電池電動自行車和電動摩托車佔中國市場總量不到10%。到 2020 年底，這個數字已經達到了十幾歲。

So in summary, we see the rising tide of market for the lithium battery-powered e-bicycles and then e-motorcycles, fueled by the regulatory compliance, combined with the lower cost of the lithium battery hardware as the incredible opportunity in China that we view are poised to capture significant growth from.

總而言之，在監管合規的推動下，我們看到鋰電池驅動的電動自行車和電動摩托車市場不斷上漲，加上鋰電池硬體成本較低，這是我們在中國面臨的難以置信的機遇。獲得顯著增長。

Now excited with this market potential, we launched a year of new campaign during the Chinese New Year this year, which happened to be the Year of Ox, or year of Niu in Chinese. Our multiple platforms, and we generate more than 300 million views. Both efforts in branding and marketing have acted as a catalyst in driving our Q1 sales in 2021.

現在，我們對這一市場潛力感到興奮，因此在今年農曆新年期間推出了一年的新活動，恰逢牛年。我們擁有多個平台，並且產生了超過 3 億的觀看次數。品牌和行銷方面的努力都成為推動我們 2021 年第一季銷售的催化劑。

For the international market, the COVID-19 situation has accelerated the individual urban mobility demand despite the short-term impact on the retail operations in 2020. Besides electric motorcycles, we observed significant market growth in many individual urban mobility sectors like [power-assisted] bicycles, kick scooters and other form factors.

對於國際市場而言，儘管2020年零售業務受到短期影響，但COVID-19情況加速了個人城市出行需求。電動助力車] ] 自行車、踏板車和其他形狀因素。

As part of our Niu 2.0 growth strategy, we have diversified our product portfolios into those fast-growing markets with our first power-assisted bicycles, the Aero EB-01 will be shipped in the first half of this year. And we are developing more products in those categories for immediate release to capture the market growth across all segments. In addition, we also observed a return of growth in shared mobility market starting from the second half of 2020, again, driven by the demand for individual mobility. We are well positioned to capture the growth in this market in 2021 with more offerings to our sharing operators.

作為 Niu 2.0 成長策略的一部分，我們將產品組合多元化到快速成長的市場，我們的首款電動自行車 Aero EB-01 將於今年上半年出貨。我們正在這些類別中開發更多產品並立即發布，以抓住所有細分市場的市場成長。此外，我們也觀察到，在個人出行需求的推動下，共享旅遊市場從 2020 年下半年開始再次成長。透過為我們的共享營運商提供更多產品，我們已做好充分準備，在 2021 年抓住這一市場的成長機會。

Now our overall product investment, we have tens plus new products in R&D pipeline for the domestic China market, Europe and American market and Asian market. This product will cover a wide range of urban mobility categories from micro mobility to urban mobility. In a few short weeks from now in April, we will post our [third] global product launch event, where we will be a handful of new products that will be ready for purchase in the first half of 2021 for both the China and overseas market. Overall, we expect our total sales volume for the [annual] year of 2021 to surpass 1 million units.

目前我們的整體產品投入，針對中國國內市場、歐美市場以及亞洲市場，我們有數十種新產品正在研發中。該產品將涵蓋從微型出行到城市出行的廣泛城市出行類別。從現在起的短短幾週內，即 4 月份，我們將舉辦[第三次]全球產品發布會，屆時我們將推出一些新產品，這些產品將於 2021 年上半年在中國和海外市場上市。整體而言，我們預計 2021 年的總銷量將超過 100 萬台。

Aided by the suitable product offerings, our sales network expansion will also be accelerated. In April this year, we expect to celebrate our opening of our 2,000 branded stores in China. And we target to further accelerate the opening of our stores throughout the rest of 2021. The international market, with the ease of COVID-19 situation, we also expect to accelerate our flagship and premium store openings.

在合適的產品供應的幫助下，我們的銷售網絡擴張也將加速。今年 4 月，我們預計將慶祝在中國開設 2,000 家品牌店。我們的目標是在 2021 年剩餘時間內進一步加快門市開幕速度。

Now with this, let me turn to Hardy to talk about financials.

現在，讓我轉向哈迪談談財務問題。

Thank you, Yan, and hello, everyone. Our press release contains all the figures and the comparisons you need, we've also uploaded in excel format figures to our IR website for easy reference. As I review our financial performance, we are referring to the fourth quarter figures unless I say otherwise, and that all monetary figures RMB unless otherwise noted.

謝謝嚴老師，大家好。我們的新聞稿包含您需要的所有資料和比較，我們也將 Excel 格式的資料上傳到我們的 IR 網站以方便參考。當我回顧我們的財務表現時，除非另有說明，否則我們指的是第四季度的數據，除非另有說明，所有貨幣數據均為人民幣。

Our Q4 sales volume reached 150,000 units, increased by 42% year-over-year. China sales volume increased by 35% as a result of retail sales network expansion, new products launched in Q2, Q3 and also strong online sales. In the fourth quarter, our online sales volume increased by 3x compared with Q4 2019, driven by the successful sales during the and Double 11 shopping festival.

第四季銷量達15萬輛，較去年同期成長42%。由於零售網路擴張、第二季、第三季推出新產品以及強勁的線上銷售，中國銷量成長了 35%。在雙11購物節期間的成功銷售推動下，第四季我們的線上銷售額較2019年第四季成長了3倍。

Our 35% growth rate in China is higher than the general market growth. According to [RMIT] the China electric bicycle market grew by around 17% in the fourth quarter. We delivered a higher growth. For the international markets, our Q4 sales volume was 13,000 units, a significant increase compared with the 4,000 units in Q4 2019. The sales volume is higher than our initial expectation, mainly due to the additional orders we managed to get from sharing operators in the overseas market.

我們在中國35%的成長率高於一般市場的成長率。根據[RMIT]的數據，中國電動自行車市場第四季成長了17%左右。我們實現了更高的成長。國際市場方面，我們第四季度的銷量為 13,000 輛，較 2019 年第四季度的 4,000 輛大幅增長。市場。

With regards to product mix, M-Series accounted for 20% of total sales volume due to strong overseas sales. M-Series accounted for 25% due to M2 and [MS] new product launch. U series accounted for 25%, GOVA series accounted for 30%. Almost 30% from GOVA series 20% is from the (inaudible) product G0 model. The high percentage of G0 sales volume [lessens] our ASP when comparing with Q4 2019. However, when comparing with Q3, the percentage of volume from G0 decreased by 7%. And as a result, our ASP for China's scooter sales improved by 11%. The total revenues increased by 25% to RMB 672 million, above the guidance we provided earlier, mainly due to the higher overseas sales to sharing operators, as I mentioned above.

從產品結構來看，由於海外銷售強勁，M系列銷售佔總銷售量的20%。由於M2和[MS]新產品的推出，M系列佔25%。 U系列佔25%，GOVA系列佔30%。幾乎 30% 來自 GOVA 系列，20% 來自（聽不清楚）產品 G0 型號。與 2019 年第四季相比，G0 銷量的高百分比[降低了]我們的平均售價。因此，我們中國踏板車銷售的平均售價提高了 11%。總收入成長了 25%，達到 6.72 億元人民幣，高於我們先前提供的指導，這主要是由於共享營運商的海外銷售額增加，正如我上面提到的。

Our revenue increase was driven by sales volume growth of 42%, partially offset by decreased revenue per scooter or ASP of 11.5%. There are a few reasons for the ASP decrease. First, the sales of low-priced model G0 reduced our ASP. As a result, the China scooters ASP decreased by 16%. Second, the lower spare part sales to overseas market led to the decrease of ASP for accessories, spare parts and services by 23%. Third, the high proportion of scooter revenue from overseas market partially offset the 2 negative factors mentioned above.

我們的營收成長是由 42% 的銷售成長推動的，但部分被每輛踏板車收入或平均售價下降 11.5% 所抵消。平均售價下降有幾個原因。首先，低價車型G0的銷售降低了我們的平均售價。受此影響，中國踏板車平均售價下降了16%。其次，海外市場備件銷量下降導致配件、備件和服務的平均售價下降 23%。 第三，滑板車海外市場收入佔比較高，部分抵銷了上述2個負面因素。

In total, the ASP decreased by 11.5% in the fourth quarter. On quarter-over-quarter basis, our ASP, however, improved by 25%, mainly due to change in product mix. Gross margin was 25.2%, 0.9 percentage points lower than this time last year, but 4.3 percentage points higher than Q3.

總體而言，第四季平均售價下降了 11.5%。然而，與上一季相比，我們的平均售價提高了 25%，這主要是由於產品結構的變化。毛利率為25.2%，較去年同期下降0.9個百分點，但較第三季高4.3個百分點。

The lower growth gross margin compared with last year was mainly caused by sales volume rebate to distributors in China. In the fourth quarter 2019, China sales volume grew by only 16%, and many China distributors did not meet the sales volume target. Therefore, we give low percentage rebates to the distributors. In Q4 2020, most of the China distributors met the sales volume target, and they received a regular rebate.

毛利率較去年增長較低主要是由於對中國經銷商的銷售回扣。 2019年第四季，中國銷量僅成長16%，許多中國經銷商未達銷售目標。因此，我們給予經銷商低比例的回扣。 2020年第四季度，大部分中國經銷商都完成了銷售目標，並定期獲得回饋。

When compared with Q3 2020, our gross margin improved by 4.3 percentage points, mainly due to 2 reasons. First, favorable change in revenue mix being the higher percentage of revenue from overseas market and also a higher percentage of revenue from accessories, spare parts and services, where our gross margins are higher than average.

與2020年第三季相比，我們的毛利率提高了4.3個百分點，主要有兩個原因。首先，收入結構的有利變化是來自海外市場的收入比例更高，來自配件、備件和服務的收入比例也更高，我們的毛利率高於平均水平。

Second, improved gross margin from China [into the sales] as a result of continued cost savings. Despite the sales of low-margin G3, [G0] to model, our China e-scooter sales gross margin has improved to a higher percentage than that of 2019, while there were no sales G0 of models.

其次，由於持續節省成本，中國[銷售]毛利率有所提高。儘管有低毛利率的G3、[G0]車型的銷售，但我們的中國電動滑板車銷售毛利率已提高至比2019年更高的百分比，而沒有銷售G0車型。

Our total [operating expense] including share-based compensation, were RMB 110 million, increased by RMB 23 million or 27% year-over-year. The increase was only caused by higher sales and marketing spend of RMB 10 million for retail sales network expansion and rebranding and the marketing activities.

包括股權激勵在內，我們的總[營業費用]為1.1億元人民幣，較去年同期增加2,300萬元人民幣，成長27%。這一增長僅是由於用於零售銷售網絡擴張、品牌重塑和行銷活動的銷售和行銷支出增加了人民幣 1,000 萬元。

As a percent of revenue, our sales and marketing expense, excluding share-based compensation, was 8.6% lower than 8.8% in Q4 2019. R&D expenses increased by RMB 10 million mainly for staff cost and design expense because we have more products in R&D headline, many of which will be launched in the second quarter of this year. Our share-based compensation expense RMB 10.4 million, similar to the amount in Q3. Compared with Q4 last year, it has an increase of RMB 2.6 million due to the new (inaudible) to employees.

以收入百分比計算，我們的銷售和行銷費用（不包括股權激勵）比2019 年第四季的8.8% 下降了8.6%。我們有更多的產品在研發頭條新聞，其中許多將於今年第二季推出。我們的股權激勵費用為人民幣 1,040 萬元，與第三季的金額類似。與去年第四季相比，由於新增（聽不清楚）員工增加了260萬元。

Our income tax expense was around RMB 14 million, RMB 13 million higher than the same period last year. The higher income tax had a significant impact on our net income. Some of our subsidiaries have used up the cumulative loss and therefore began to pay corporate income tax. Our long-term income tax rate is estimated to be about 20%. For year 2021, our average tax rate is estimated to be around 15% because we can still use some cumulative loss from one of our entities in China.

我們的所得稅費用約為人民幣1400萬元，比去年同期增加人民幣1300萬元。較高的所得稅對我們的淨利潤產生了重大影響。部分子公司累計虧損已用完，開始繳交企業所得稅。我們的長期所得稅稅率估計約為20%。 2021 年，我們的平均稅率預計在 15% 左右，因為我們仍然可以使用我們在中國的一個實體的一些累積損失。

Our GAAP net income was RMB 58 million and adjusted net income was RMB 69 million, so that's slightly higher than Q4 2019. The adjusted net income margin was 10.2%, 2.6 percentage points lower than Q4 2019, mainly because of lower gross margin of 0.9% and a higher income tax expense. The income tax expense as a percent of revenue was 2%, 1.9% higher than this time last year. If you compare adjusted net income before tax between Q4 2019 and 2020, an increase of around RMB 69 million to RMB 82 million, a year-over-year growth of 19%.

我們的GAAP 淨利為人民幣5,800 萬元，調整後淨利為人民幣6,900 萬元，略高於2019 年第四季。主要是因為毛利率較低，為0.9 ％和更高的所得稅費用。所得稅費用佔收入的比重為2%，比去年同期增加1.9個百分點。如果比較2019年第四季和2020年調整後的稅前淨利潤，增加了約6,900萬元人民幣至8,200萬元人民幣，年增19%。

Turning to our balance sheet and cash flow. We ended the quarter with RMB 1.1 billion in cash, term deposit and short-term investments. Our operating cash flow was negative RMB 163 million, mainly due to reduction in payables of RMB 190 million as a result of seasonality. On a full year basis, our operating cash flow with a positive RMB 460 million. Our Q4 capital expenditure was around RMB 41 million, mainly related to capacity expansion of RMB 21 million, new store building of RMB 30 million and R&D spending of RMB 7 million. On a full year basis, our capital expenditure was around RMB 150 million.

轉向我們的資產負債表和現金流。截至本季末，我們的現金、定期存款和短期投資為 11 億元。經營現金流為負1.63億元，主要是因為季節性影響應付帳款減少1.9億元。全年經營現金流為正4.6億元。我們第四季的資本支出約為人民幣4100萬元，主要與產能擴張人民幣2100萬元、新店建設人民幣3000萬元以及研發支出人民幣700萬元有關。全年資本支出約為人民幣1.5億元。

Now let's turn to guidance. We expect the first quarter revenues to be in the range of RMB 420 million to RMB 478 million, an increase of 80% to 105% year-over-year.

現在讓我們轉向指導。我們預計第一季營收將在人民幣4.2億元至人民幣4.78億元之間，年增80%至105%。

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

現在，讓我們開始電話會議，詢問您可能向我們提出的任何問題。接線員，請繼續。

(Operator Instructions) Your first question comes from the line of Vincent Yu from Needham & Company.

（操作員說明） 您的第一個問題來自 Needham & Company 的 Vincent Yu。

Congrats on the strong year. I have 3 questions. First question is can the management share with us news plan for off-line store opening this year, 2021, how has the store opening process gone so far given strong consumer and distributor interest?

祝賀強勁的一年。我有 3 個問題。第一個問題是，管理階層能否與我們分享今年（2021 年）線下開店計畫的消息？

My second question is about the unit sharing operators. Can we -- can you talk about how many units sharing operators contributed in 2020? And how big opportunity this mobile -- mobility sharing platforms customer represent in terms of any unit sales in 2021?

我的第二個問題是關於單位共享運營商的。您能否談談 2020 年共享業者貢獻了多少單位？就 2021 年的單位銷售量而言，這個行動共享平台客戶代表了多大的機會？

My third question is about gross margin outlook. Can management shed some light on the gross margin outlook for 2021? How much cost savings can we expect to be generated from [BOM] and the battery pack respectively?

我的第三個問題是關於毛利率前景。管理階層能否透露一些關於 2021 年毛利率前景的資訊？ [BOM] 和電池組分別可以節省多少成本？

So thanks for the question. So let me a quickly talk -- basically cover the first question for openings. So we actually we -- I think with our diversified product portfolio, really starting on Q4 last year and even starting Q1 this year, we do see an acceleration of new store openings. And as I mentioned in Q4 last year, we're able to open more than 300 stores. So actually, in Q1 this year, if you recall that by end of Q4 last year, we had about 1,615 stores. Now we expect to have our 2,000 store open basically in early April. That means despite the Chinese New Year break, we're able to open another close -- not 400, but 380-something stores within the 3 months. So that's actually a tremendous growth.

謝謝你的提問。讓我快速發言一下——基本上涵蓋空缺的第一個問題。因此，我認為，透過我們多元化的產品組合，從去年第四季甚至今年第一季開始，我們確實看到了新店開幕的加速。正如我在去年第四季提到的，我們能夠開設 300 多家商店。事實上，今年第一季度，如果你還記得去年第四季末，我們大約有 1,615 家商店。現在我們預計2000家店基本上會在4月初開幕。這意味著，儘管有農曆新年假期，我們仍然能夠在 3 個月內再次關閉 380 多家商店，而不是 400 家。所以這實際上是一個巨大的增長。

And we actually -- we don't expect to slow down. I think with more products coming out, especially with new products coming out in April, we expect to open more stores for -- in Q2, Q3 and Q4 this year. So I think right now, we have about 1,600 store But end of last year, we had 1,600 stores. I think there is no minimum we can add 1,000 or even more than 1000, 1,200 to 1,300 stores this year.

事實上，我們預計不會放慢速度。我認為隨著更多產品的推出，特別是四月份新產品的推出，我們預計今年第二季、第三季和第四季將開設更多商店。所以我認為現在我們有大約 1,600 家商店，但去年年底，我們有 1,600 家商店。我認為今年我們可以增加1000家甚至超過1000家、1200到1300家商店，沒有最低限度。

And for your second question about the home many units we sold to sharing operators during 2020. During 2020, we sold around 8,500 units to sharing operators at account for close to 30% of our total sales in overseas market. And normally, the contribution from sharing operators account for 20% to 30% of our total overseas sales volume. We also expect a similar percentage in year 2021. And for your third question about the gross margin outlook. First of all, what we can share with you is during 2020 the cost savings contributed to 4% to 5% of the margin expansion during 2020. However, during 2020, because we launched the low margin G0 model that had a negative impact on our gross margin. But we are able to offset that with cost savings in most of our 2021, we expect a similar percentage of cost savings in all the parts also in And because of that, we expect the gross margin will be more or less stable, similar to what we see during 2020.

關於你的第二個問題，我們在2020年向共享業者出售了許多單位。通常情況下，共享業者的貢獻占我們海外總銷售量的20%至30%。我們也預計 2021 年會出現類似的百分比。首先，我們可以跟大家分享的是，2020年期間，成本節約為2020年利潤率擴張貢獻了4%到5%。利潤率產生了負面影響。但我們能夠透過 2021 年大部分時間的成本節省來抵消這一點，我們預計所有零件的成本節省比例也將相似，因此，我們預計毛利率將或多或少保持穩定，類似於我們將在2020年看到。

For the product mix, as already mentioned by Yan, in 2021, we may launch further products -- new products in the price range similar to what we have for G0. And therefore, that product launch which we have a negative active impact on the overall margin. But we are also confident that we can use the cost savings to offset all negative impact and to keep our markets stable. So this is answer to you second and the third question.

對於產品組合，正如 Yan 已經提到的，2021 年我們可能會推出更多產品——價格範圍與 G0 類似的新產品。因此，該產品的推出對我們的整體利潤率產生了正面的負面影響。但我們也有信心能夠利用節省的成本來抵消所有負面影響並保持市場穩定。這是你第二個問題和第三個問題的答案。

Your next question comes from Alex Potter from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Alex Potter。

So my first question is regarding guidance. The full year scooter delivery guidance of around 1 million units. That was good. That looks around what we had expected. But the Q1 revenue guidance is a little bit weaker than what we thought. So it implies sort of a pocket. And I know there's seasonality to consider here, but it seems like the Q1 sequential downtick in revenue versus Q4 is a little bit bigger than we had expected. So is there anything to call out there? Or is this just normal seasonality?

所以我的第一個問題是關於指導。全年踏板車交付指引在100萬輛左右。那很好。這看起來符合我們的預期。但第一季的營收指引比我們想像的要弱一些。所以它意味著某種口袋。我知道這裡需要考慮季節性因素，但與第四季度相比，第一季收入的連續下降似乎比我們預期的要大一些。那麼有什麼值得呼籲的嗎？或者這只是正常的季節性？

I think the first part is the normal seasonality because normally in Q1, we have the Chinese New Year -- with Chinese New Year, the factory will be shut down also the logistics the company do not provide any further services. this year, during Chinese New Year, there's also some control from the local government because of the COVID-19. Therefore, there's more impact from that.

我認為第一部分是正常的季節性，因為通常在第一季度，我們有農曆新年——隨著農曆新年，工廠將關閉，公司的物流也不會提供任何進一步的服務。今年農曆新年期間，由於 COVID-19，地方政府也採取了一些控制措施。因此，它的影響更大。

So with that we also want to give the guidance. We're also keep it conservative on the overseas sales volume mainly because we see the continued challenge for us to book a container to ship to the overseas market. If we take out all this impact, if we're purely looking for the order book, we see very strong sales volume growth for the first quarter. So in summary, it's more because of seasonality, but we try to be prudent considering the short-term impact on COVID-19 or some challenges to oversee shipping.

因此，我們也想提供指導。我們對海外銷售也保持保守，主要是因為我們看到預訂貨櫃運往海外市場仍然面臨挑戰。如果我們剔除所有這些影響，如果我們純粹尋找訂單，我們會看到第一季的銷售成長非常強勁。總而言之，這更多是因為季節性，但考慮到 COVID-19 的短期影響或監管運輸的一些挑戰，我們盡量保持謹慎。

Okay. Got that makes sense. I also had a question on, I guess, the prices for international scooters. I can appreciate the gross margin in the quarter was really good. There was some mix underlying that, good cost control. But if you just look at the price of a scooter that you sell in international markets versus Q4, the price has come down. Is there anything specific driving that?

好的。明白了，這是有道理的。我想我還有一個關於國際踏板車價格的問題。我可以體會到該季度的毛利率非常好。這背後有一些混合因素，即良好的成本控制。但如果你只看一下在國際市場上銷售的踏板車的價格與第四季相比，價格已經下降。有什麼具體的驅動力嗎？

Not really, not really. I mean it's purely because of the 2 things. I think 1 thing is because the overseas market, we are studying models, (inaudible) so it really depends on how much model in different segments or distributor order from us. In Q4 last year, we have some of the orders for M-Series. M-Series has a slightly lower sales price compared with N-Series that explain the reasons.

不是真的，不是真的。我的意思是這純粹是因為兩件事。我認為一件事是因為在海外市場，我們正在研究模型，（聽不清楚）所以這實際上取決於不同細分市場或經銷商向我們訂購了多少模型。去年第四季度，我們有一些M系列的訂單。 M系列的銷售價格比N系列略低，這說明了原因。

Secondly, some of the -- our sharing operators wanted book -- place orders. The only order the only body part of the scooter instead of ordering the entire scooter, and they place separate orders for the spare parts, et cetera, for the battery. That also lowered our ASP. But for us, it's all quite normal. So this is the first reason.

其次，我們的共享業者中的一些想要預訂的人下訂單了。唯一訂購踏板車的唯一車身部件，而不是訂購整個踏板車，並且他們單獨訂購電池的備件等。這也降低了我們的平均售價。但對我們來說，這一切都很正常。所以這是第一個原因。

The second reason is because of the depreciation of U.S. dollar against RMB because in the overseas market, we're priced our products in U.S. dollars. With weakening of U.S. dollar against RMB, we do see some impact of the average ASP. But this is the 2 reasons for slightly lower international market.

第二個原因是因為美元對人民幣貶值，因為在海外市場，我們的產品是用美元定價的。隨著美元兌人民幣走弱，我們確實看到了平均平均售價的一些影響。但這也是國際市場小幅走低的2個原因。

Okay. Great. That's super helpful. Then maybe the last question I had was on supply chain. There's been obviously, a lot of commentary around semiconductor impact on various supply chains, but also in the electric passenger vehicle market, there's been a lot of commentary regarding bottlenecks in the battery supply chain, potential delays, production delays that are impacting people's ability to ramp production. Have you seen any of those supply chain impacts, either with regard to semiconductors or with regard to batteries?

好的。偉大的。這非常有幫助。也許我的最後一個問題是關於供應鏈的。顯然，關於半導體對各種供應鏈的影響有很多評論，而且在電動乘用車市場，也有很多關於電池供應鏈瓶頸、潛在延誤、生產延誤的評論，這些都影響了人們的能力斜坡生產。您是否看到這些供應鏈影響，無論是半導體還是電池？

I think that's a good question. We actually, in the last few weeks, we actually observed a little bit more stringent supply chain in terms of -- actually, in both situations, in terms of in the chipset because there are some ships that we're using in our central controllers. So that has impacted us a little bit. And as well as see a temporary shortage in the batteries.

我認為這是一個好問題。事實上，在過去的幾周里，我們實際上觀察到了更嚴格的供應鏈，實際上，在這兩種情況下，在晶片組方面，因為我們在中央控制器中使用了一些船舶。所以這對我們產生了一些影響。並且還會發現電池暫時短缺。

For us, we have secured some supply chain at the beginning of the year, so that helps us to really to cope with the situation. And we basically (inaudible) will see a temporary glitch about 1 week or no longer than 2 weeks of (inaudible). But that has -- we were able to actually able to handle the situation so far.

對我們來說，我們在年初就已經獲得了一些供應鏈，這有助於我們真正應對這種情況。我們基本上（聽不清楚）會看到大約 1 週或不超過 2 週（聽不清楚）的臨時故障。但到目前為止，我們實際上能夠處理這種情況。

Your next question comes from Jing Chang from CICC.

你的下一個問題來自中金公司的常靜。

Congrats on your beating guidance of fourth quarter results. I have 3 questions. So first is so can you give us more color on the new products to be launched in April and such as the price range? And how to distinguish them with all the product series?

恭喜您第四季業績超出預期。我有 3 個問題。首先，您能給我們更多關於四月份推出的新產品的資訊嗎？以及如何將它們與所有產品系列區分開來？

And the second one is -- so news or rumors that we are producing or prepared to produce new energy vehicles. So how do we think about our business expansion, such as go to the (inaudible) or other products?

第二個是——所以有消息或傳言說我們正在生產或準備生產新能源汽車。那我們如何考慮我們的業務擴展，例如去（聽不清楚）或其他產品？

And also, my last question is referred to -- you're talking about GOVA and same price (inaudible) price and models. So as we open more stores, and maybe more exposure to lower tiered cities and more customers, will we consider to separate GOVA and Niu brands to different channels. That's my 3 questions.

另外，我的最後一個問題是——您談論的是 GOVA 以及相同價格（聽不清楚）的價格和型號。因此，當我們開設更多商店，也許更多地接觸低線城市和更多客戶時，我們是否會考慮將GOVA和Niu品牌分開到不同的管道。這是我的3個問題。

So thanks for the questions. I'll address them, and then I'll have a Hardy to comment as well. So first on the new product launch in April, we're very happy to actually attend the launch event. So you actually can see the product in person and actually see the product -- actually experience product well. So we actually have multiple products to be launched in April, covering actually multiple categories. The categories are high-end electric bicycles, high end, also the, let me call it the mid end electric bicycle market in China as well as covering the electric motorcycles in China as well as some of the new categories like the power-assisted and in the overseas market. So it's actually a wider range of products that we're going to launch in spring, what we call it global spring new product launch, which is going to happen in our -- in Changzhou and -- that's where -- actually, by that time, our -- we have a Phase 2 of the factories. We have completed -- with our new factory that we completed Phase I. And the Phase 2 of factory will be almost ready in April, not completely, I believe, but it's still (inaudible) and that helps to increase the production capacity as well. So I think that was into the new product launch in April.

謝謝你的提問。我會向他們發表講話，然後我也會請哈代發表評論。首先，在四月的新產品發表會上，我們很高興能夠實際參加發表會。所以你實際上可以親眼看到產品，真正看到產品——真正很好地體驗產品。所以我們四月其實有多個產品要推出，實際上涵蓋了多個品類。這些類別是高端電動​​自行車，高端，也就是中國的中端電動自行車市場，涵蓋了中國的電動摩托車以及一些新的類別，如輔助和電動自行車。因此，實際上我們將在春季推出更廣泛的產品，我們稱之為全球春季新品發布會，這將在我們的常州舉行，實際上就是在那裡。 。我們已經完成了——我們的新工廠已經完成了第一階段。助於提高產能。所以我認為這是四月份新產品發布的結果。

In terms of the rumors on the car side, I think you were talking about recently, there were, I think, there are news reporting, not news reporting like from social media side, it's actually a lot of our new users, actually, I think, keeping the industrial designer and he did a concept design of [if] new design electric car what the electric car, a small electric car would look like. So he posted it on social blogs and then got picked up.

關於汽車方面的傳聞，我想你最近在談論，有，我認為，有新聞報道，而不是像社交媒體方面的新聞報道，實際上是我們很多新用戶，實際上，我想想，讓工業設計師和他做了一個概念設計，[如果]新設計的電動車電動車，小型電動車會是什麼樣子。於是他將其發佈到社交部落格上，然後就被採納了。

We actually -- we thought he was talented. So to be honest, our industrial -- our IT team actually try to reach out the users and try to see whether his talent is whether we can use his talent on our 2-wheeler designs. We didn't really -- but he just while he didn't use our logo, so there is a little bit, what we call the probably a brand or a patent infringement, but we thought we would let it go, but we cleared out in our own Weibo saying, hey, this is -- it's purely out of passion of one of our users.

事實上，我們認為他很有才華。所以說實話，我們的工業 - 我們的 IT 團隊實際上試圖接觸用戶並嘗試看看他的才能是否可以讓我們在我們的兩輪車設計中使用他的才能。我們確實沒有——但他只是在沒有使用我們的標誌的時候，所以有一點，我們所說的可能是品牌或專利侵權，但我們認為我們會放手，但我們清除了在我們自己的微博中說，嘿，這純粹是出於我們一位用戶的熱情。

Now the lastly on the GOVA series, I think on this note, even though I think we have multiple product under the GOVA series. But having said that, I think the GOVA series still represents the (inaudible) design -- industrial design, internal product quality, it's basically as good as the L-Series, M-Series U-Series. So I think in the midterm, we still put it -- we still like to have our GOVA series under the new brand because I think it actually represents what new brand representing, which is technology, freedom and style. So we'll be -- we're coming out more products under the GOVA series as well this year. And that will help us to actually bring our product to more -- a wider range of consumer segments.

現在是 GOVA 系列的最後一個，我想在這一點上，儘管我認為 GOVA 系列下有多種產品。不過話雖如此，我認為GOVA系列仍然代表了（聽不清楚）設計——工業設計、內在產品品質，它基本上和L系列、M系列U系列一樣好。所以我認為從中期來看，我們仍然喜歡把我們的GOVA系列放在新品牌下，因為我認為它實際上代表了新品牌所代表的東西，即技術、自由和風格。所以我們今年也會推出更多 GOVA 系列產品。這將幫助我們真正將我們的產品帶給更多——更廣泛的消費者群體。

Just to supplement the new product launch, for the -- in terms of price range, the new products to be launched, we'll have products in the similar price range at -- like G0, but we are also going to launch premium products with sales price similar to a MS. So we will have a few offerings to our customers.

只是為了補充新產品的推出，對於——就價格範圍而言，要推出的新產品，我們將有類似價格範圍的產品——比如G0，但我們也將推出高端產品銷售價格與 MS 類似。因此，我們將為客戶提供一些產品。

And also for the new product launch, we are also going to target different customer segments. For example, one of our product -- new products will more target towards females. With that, it will help us to further expand our customer base and also help us increase our sales volume in 2021. So that's the answer to your 3 questions.

對於新產品的推出，我們也會針對不同的客戶群。例如，我們的一款產品—新產品將更多地針對女性。這樣，它將幫助我們進一步擴大我們的客戶群，也幫助我們增加 2021 年的銷售量。

And a quick follow-up question. So I know that Mr. (inaudible) our large shareholder, he has his own company to produce Niu energy vehicle, it's also -- is there any potential opportunity for us to -- like potential cooperation between Niu and his own brand?

還有一個快速跟進問題。所以我知道我們的大股東（聽不清楚）先生，他有自己的公司生產小牛能源汽車，而且我們還有潛在的機會，例如小牛和他自己的品牌之間的潛在合作嗎？

Yes, I think nothing I'm aware of. In terms of NIU, I think our mission was really find and made price better. So we're purely focused on urban mobility. I think mainly the 2 areas. We have a product which is not launched yet, but that's a similar product under the motorcycle market. I think this is where we are good at in terms of our coverage individual mobilities.

是的，我想我什麼都不知道。就小牛電動而言，我認為我們的使命是真正找到並讓價格變得更好。所以我們純粹專注於城市交通。我認為主要是2個方面。我們有一個產品還沒有推出，但這是摩托車市場上的類似產品。我認為這就是我們在涵蓋個人出行方面所擅長的地方。

Our next question comes from Alice Ma from UBS.

我們的下一個問題來自瑞銀集團的 Alice Ma。

I have 3 questions. The first one is that could you give us more elaboration on -- due to the new regulation in China, how do you think the segmentation between the e-motorcycle and e-bike after the 3 years of transition period? As you have just mentioned, I think most of your incoming products in China are mainly e-bike segment. So can we understand that in the future, after the transition period your focus in Chinese market will mostly be the e-bike market, while in the overseas market will mainly be the e-motorcycle?

我有 3 個問題。第一個是，您能否給我們詳細介紹一下——由於中國的新規定，您如何看待經過三年過渡期後電動摩托車和電動自行車之間的細分？正如您剛才提到的，我認為您在中國進口的大部分產品主要是電動自行車領域。那麼我們是否可以理解，未來過渡期過後，你們在中國市場的重點將主要是電動自行車市場，而在海外市場將主要是電動摩托車？

Okay. Yes. Thanks for the question. I think, first of all, I think the -- from the new regulation, there's a clear separation on the e-bike versus e-motorcycle. Basically, the e-bike has to be under the e-bike regulation where for a total weight has been less than 55 kilos. The restriction on the size of the bike as well as the speed. I think according to some data, basically, last year, roughly about 22 million or 23 million units were e-bike, where the rest of 10-plus million units or what they call the e-motorcycles or light e-motorcycles.

好的。是的。謝謝你的提問。我認為，首先，我認為從新法規來看，電動自行車與電動摩托車有明顯的差異。基本上，電動自行車必須符合電動自行車法規，且總重量小於 55 公斤。對自行車尺寸和速度的限制。我認為根據一些數據，基本上去年大約有2200萬輛或2300萬輛是電動自行車，其餘的10多萬輛或他們所說的電動摩托車或輕型電動摩托車。

So I think that -- as we're seeing that whether that percentage will increase, but it really -- I think it really depends on the city by city regulations on motorcycles because some places where when they actually put a restriction on motorcycles, then you're going to see the e-bike percentage will increase.

所以我認為 - 正如我們所看到的，這個百分比是否會增加，但實際上 - 我認為這實際上取決於城市對摩托車的規定，因為有些地方當他們實際上對摩托車施加限制時，然後你會看到電動自行車的比例將會增加。

Now from our point of view, from a Niu point of view, we actually have products in both markets. On e-bike markets, we have our multiple products from our M2, MS, Niu class U1 US and our GOVA G2, G1, G0. So I think it's like 8 product lines into e-bikes. And for the e motorcycle as well, we have our N1, M-plus, G3, and we have more product coming out for the motorcycle market. So I don't think we're -- it's not like we're going to focus on one versus the other. I think for both markets, I think we had an advantage in terms of design. We have advantage in terms of technology that I think we're actually able to gain market share in both markets.

現在從我們的角度來看，從牛的角度來看，我們實際上在兩個市場都有產品。在電動自行車市場上，我們擁有 M2、MS、Niu class U1 US 和 GOVA G2、G1、G0 等多種產品。所以我認為電動自行車有 8 個產品線。對於電動摩托車，我們有 N1、M-plus、G3，我們還有更多針對摩托車市場的產品。所以我不認為我們會專注於其中一個與另一個。我認為對於這兩個市場，我們在設計上都有優勢。我們在技術方面有優勢，我認為我們實際上能夠在兩個市場上獲得市場份額。

The good thing on the trend of both markets is the trend of -- acid to lithium-ion batteries. You actually see that [climb], both on the e-bike is very obvious because for the e-bike to be less than 55 kilos, most likely, you would need to use the lithium-ion battery powered scooters. So we see a lithium-ion batteries start to put out a percentage in terms of penetration.

這兩個市場趨勢的好消息是——酸電池到鋰離子電池的趨勢。你實際上會看到[爬升]，這在電動自行車上都是非常明顯的，因為對於重量小於 55 公斤的電動自行車，很可能您需要使用鋰離子電池供電的踏板車。因此，我們看到鋰離子電池開始在滲透率方面佔據一定比例。

Now for e-motorcycles, traditionally, it's most of that asset. We're the first one doing the lithium-ion batteries. And people actually start enjoying the support of our lithium-ion batteries because it is easier to charge and take the battery out. So we're actually seeing a -- also seeing a basically increase into more lithium-ion battery penetration in the e-motorcycle market. So -- and Niu being the first smart electric lithium-ion battery scooters, both on the e-bike and e-motorcycle, so I think we have advantage in terms of capturing the market growth on the lithium-ion-based e-bike and e-motorcycle market.

現在，對於電動摩托車來說，傳統上它是大部分資產。我們是第一個生產鋰離子電池的公司。人們實際上開始享受我們的鋰離子電池的支持，因為充電和取出電池更容易。因此，我們實際上看到了電動摩托車市場中鋰離子電池滲透率的基本上增加。因此，Niu 是第一款智慧電動鋰離子電池踏板車，既適用於電動自行車，也適用於電動摩托車，因此我認為我們在抓住鋰離子電動自行車市場成長方面具有優勢和電動摩托車市場。

Okay. Very clear. And my second question is about the market segmentation among the main or high-end scooters via the lower end market, what do you think is the respective percentage market share?

好的。非常清楚。我的第二個問題是關於主要或高端踏板車透過低端市場的市場細分，您認為各自的市場份額是多少？

I think it's difficult to talk about sort of percentage. I don't have the sort of a percentage at hand. But I can give you a rough price range basically in terms of retail price, we're seeing anywhere, the cheapest ones can go as low as RMB 1,500 to the expensive one, which we own most of the market shares up to like RMB 8,000-ish, right. So I think that's what I'll give you a sense, but now if you look at the market average price, I think Hardy -- maybe I think market average price probably resale-wise RMB 2,500-ish, right?

我認為很難談論百分比。我手邊沒有那個百分比。但我可以給你一個大概的價格範圍，基本上是零售價，我們在任何地方都看到，最便宜的可以低至人民幣1,500元，而昂貴的，我們擁有大部分市場份額，最高可達人民幣8,000元- 是的，對。所以我想這就是我要給你的感覺，但現在如果你看看市場平均價格，我想哈迪——也許我認為市場平均價格可能轉售人民幣 2,500 元左右，對嗎？

The market average price, about RMB 2,500 to RMB 2,600-ish, less than RMB 3,000, like RMB 2500 to RMB 2,700-ish. So I think that's sort of the market average price. Now the interesting thing is actually our -- if you look at our product offerings, our cheapest one is actually at RMB 2,200, RMB 2300-ish. So it means our chip in -- it is right below the market average. So most of our product offerings are sort of in the mid -- starting at the mid-end of the market. Where as the traditional -- the other competitors, the players, they have more cheaper products.

市場均價大約在2500元到2600元左右，不到3000元的則在2500元到2700元左右。所以我認為這就是市場平均價格。現在有趣的事情實際上是我們的——如果你看看我們的產品，我們最便宜的產品實際上是 2,200 元、2300 元左右。所以這意味著我們的投入——它正好低於市場平均。因此，我們提供的大多數產品都處於中端——從市場的中端開始。作為傳統的——其他競爭對手、參與者，他們有更便宜的產品。

And just to supplement that, even though there is no official data about different -- with the market size and the different segments. The other way I think about it, the sales volume in Tier 1, Tier 2 cities. The people in Tier 1, Tier 2 cities have high disposal income. They also have a higher (inaudible) needs to pay, they tend to buy more expensive, more premium products. In China, in the Tier 1, Tier 2 cities, the sales volume each year around 6 million to 7 million, accounts for 22% to 25% of the total market. So that's kind of a proxy you can think about how large the premium segment is for the overall market.

只是為了補充這一點，儘管沒有關於不同市場規模和不同細分市場的官方數據。換個角度想，一二線城市的銷售。一、二線城市居民可支配所得較高。他們也有更高（聽不清楚）的支付需求，他們傾向於購買更昂貴、更優質的產品。在中國，在一、二線城市，每年銷售量在600萬至700萬輛左右，佔市場總量的22%至25%。因此，這是一種代理，您可以考慮整個市場的高端細分市場有多大。

Okay. Very clear. And my last question is about could you elaborate more on like how you'll leverage the data you have gathered already from the ECUs car tool, like do you use app to support opening new stores? Or do you use that to more like design the products or so?

好的。非常清楚。我的最後一個問題是，您能否詳細說明如何利用從 ECU 汽車工具收集的數據，例如您是否使用應用程式來支援開設新商店？還是你用它來設計產品等等？

So we actually use data in 3 dimensions. Well, first of all, all the data, even though we collect the data, but all the data is being used anonymously in the sense that we use data as collectively as a group. Now, we do observe the data to calculate -- to analyze user behaviors that help us to want either design new products or provide an upgrade for the existing products.

所以我們實際上使用的是 3 維資料。好吧，首先，所有數據，即使我們收集數據，但所有數據都是匿名使用的，因為我們作為一個群體集體使用數據。現在，我們確實觀察數據進行計算——分析用戶行為，幫助我們設計新產品或為現有產品提供升級。

Most of our scooters actually support over-the-air upgrades or the OTA, where basically every 3 months or 6 months, there is actually new software that can be actually download the upgrade to your scooters such that actually will make your driving experience a little bit better in terms of acceleration, smoother, all that stuff.

我們的大多數滑板車實際上都支援無線升級或OTA，基本上每3個月或6個月，實際上有新的軟體可以實際下載升級到您的滑板車，這實際上會讓您的駕駛體驗有所改善在加速方面更好一些，更平穩，所有這些東西。

So a lot of those actually are being -- those upgrades are being done by observing the user behaviors, understand how we can actually fine-tune the controller, fine-tune the software such that it will improve the product experience. So that's on the existing product.

因此，其中許多升級實際上是透過觀察使用者行為來完成的，了解我們如何實際微調控制器、微調軟體，以改善產品體驗。這就是現有產品的情況。

On the new product, obviously, we look at how -- for example, interestingly, we observed that less than 30% of our users actually drive more than 20-kilometer kilometers a day. So that help us to understand -- help us understand what the typical battery, basically battery capacity we need to provide for our users. Such that, on one hand, it can provide a ease of -- he or she can drive 3 days or 4 days of without being charged. At the same time, we don't want to overload the user with a huge -- huge batteries, which will add up the cost as well as make the battery heavier. So those are sort of the consumer insight we can use to for product -- new product development.

顯然，在新產品上，我們會專注於如何進行——例如，有趣的是，我們觀察到只有不到 30% 的用戶實際上每天行駛超過 20 公里。這有助於我們了解——幫助我們了解我們需要為用戶提供的典型電池，基本上就是電池容量。這樣一來，一方面，它可以提供一種便利——他或她可以開車 3 天或 4 天而無需付費。同時，我們不希望使用巨大的電池讓用戶超載，這會增加成本並使電池更重。這些是我們可以用於產品開發的消費者洞察。

The second part is actually what do we have it's called a heat map because we have the users geo information, so we know where the use drive the scooters, where they use the parked the scooters. So we actually have the heat map that we see and that actually helps us to open -- to find a store location, to open stores. Because most of our retail stores are not just for retail, they're also for after-sale services. So you can easily think that there will be areas where we observe there are tens of users but without a single store. So that means we need to open a couple of stores in those regions that will actually provide adequate customer service to the users. So that we do that as well. So those are sort of more interesting things we use with the data.

第二部分實際上是我們擁有什麼，它被稱為熱圖，因為我們有用戶的地理訊息，所以我們知道用戶在哪裡駕駛滑板車，在哪裡使用停放滑板車。因此，我們實際上擁有我們看到的熱圖，這實際上可以幫助我們開業——找到商店位置，開店。因為我們大多數的零售店不僅僅是零售，他們還提供售後服務。因此，您很容易想到，我們觀察到有些區域有數十個用戶，但沒有一家商店。因此，這意味著我們需要在這些地區開設幾家商店，真正為使用者提供足夠的客戶服務。所以我們也這樣做。這些是我們在數據中使用的更有趣的東西。

So I think the more interesting fact is actually -- those data are being accumulated. So far, we have about 7.8 billion kilometer riding distance. And then on a daily basis, there's more and more knowledge being accumulated into our data servers and such that it's -- let me put this way, it's analysts, basically, the more you look at more analyze, then you -- there's more interesting facts you can find out to analyzing data actually provide a better services or better products to our users.

所以我認為更有趣的事實實際上是——這些數據正在累積。到目前為止，我們的騎行里程約為78億公里。然後每天，越來越多的知識被累積到我們的數據伺服器中，這樣——讓我這樣說，分析師，基本上，你看的越多，分析得越多，那麼你——就會有更有趣的東西您透過分析數據可以發現的事實實際上為我們的用戶提供了更好的服務或更好的產品。

Our next question comes from (inaudible).

我們的下一個問題來自（聽不清楚）。

Congratulations on prosperity in New Year. And my first question is what's the main innovation direction of our follow-up new offerings, considering that their competition confidence becomes more and more fierce, especially in the high end markets?

恭喜新的一年財源廣進。我的第一個問題是，考慮到他們的競爭信心越來越激烈，特別是在高端市場，我們後續新產品的主要創新方向是什麼？

Sorry, repeat the question. So I didn't catch it. You're talking about our competitive advantage of our new product offerings?

抱歉，重複一下問題。所以我沒有抓住它。您是在談論我們新產品的競爭優勢嗎？

Yes. And I mean what is our -- the most highlight of our follow-up offerings compared to other competitors?

是的。我的意思是，與其他競爭對手相比，我們的後續產品中最亮點的是什麼？

I see. I guess like -- I guess how do I describe -- I guess you have to see the product, to be honest. It's very difficult to describe what are the those highlights. Because every year, we do those new product launches, we keep it very secret and when people actually observe the new products, there is also [wow] factors involved. This is actually really cool. So you actually have to see the product.

我懂了。我想——我想我該如何描述——說實話，我想你必須看到這個產品。很難描述這些亮點是什麼。因為每年我們都會發布新產品，我們都會保密，當人們實際觀察新產品時，也會涉及[哇]的因素。這實際上真的很酷。所以你實際上必須看到產品。

But let me just give you sort of a very vague answer will be -- so we have multiple product coming out in April, and the products are designed to address different customer segments. Because I think more and more in this industry would understood that different customer segments actually -- different consumers, the different customer segments actually have different needs for the urban mobility.

但讓我給你一個非常模糊的答案——我們在四月推出了多種產品，這些產品旨在滿足不同的客戶群。因為我認為這個行業越來越多的人會明白，不同的客戶群實際上——不同的消費者，不同的客戶群實際上對城市出行有不同的需求。

Some of them actually would require longer driving distance. And some of them actually would require bigger space in terms of -- especially if they need to take their kids to school. And also male or female may have a different view in terms of what's being called a beautiful scooter. So I think in the past, when we start new, it's always we start on M1 is basically sort of one form factor for the entire market.

其中一些實際上需要更長的行駛距離。其中一些實際上需要更大的空間——特別是如果他們需要送孩子上學的話。對於什麼是美麗的踏板車，男性或女性也可能有不同的看法。所以我認為在過去，當我們開始新的開發時，我們總是從 M1 開始，它基本上是整個市場的一種外形規格。

But as we are starting to actually covering the wider range of consumer base, we actually realized we need to design multiple products with different products to actually attuned for the multiple customers segments taste. I think that's probably sort of the main highlight. Besides there's new, there are new -- what we call smart functionality in upgraded scooters. There are also a new powertrain technology in the scooters, such that will make the scooter drive faster, longer mileage based on the same battery. Those are sort of the technology upgrades. But if you take one highlight, you're going to see multiple design styles, multiple form factors that actually attune for different customer needs.

但當我們開始真正涵蓋更廣泛的消費者群時，我們實際上意識到我們需要設計多種不同產品的產品，以真正適應多個客戶群的品味。我認為這可能是主要亮點。除了新的東西之外，還有新的東西——我們稱之為升級踏板車的智慧功能。滑板車也採用了新的動力總成技術，在相同電池的情況下，可以讓滑板車行駛得更快、行駛里程更長。這些都是技術升級。但如果你選擇一個亮點，你會看到多種設計風格、多種外形尺寸，實際上可以滿足不同客戶的需求。

Very helpful. And my last question is that how do we utilize over tremendous user data? And may we have any way to explore and new functions in futures by utilizing our Niu user data?

很有幫助。我的最後一個問題是，我們要如何利用海量的用戶資料？那我們有沒有辦法利用我們牛隻的用戶資料來探索期貨的新功能呢？

So I think, as I mentioned earlier, so basically -- currently, we're using data in 3 ways, right? We're using data to analyze the customer behaviors to help us to design better products. Basically new product destination -- new product design to better suit our customer needs. That's one. Second, we're actually using data to fine-tune our softwares -- software, our controllers, our ECU such that for the existing customers, without buying a new product based on the upgrade software, over the air, they actually kind of experience -- they will have an upgraded or improved riding experience.

所以我認為，正如我之前提到的，基本上，目前我們以 3 種方式使用數據，對吧？我們使用數據來分析客戶行為，以幫助我們設計更好的產品。基本上是新產品的目標——新產品設計，以便更好地滿足我們客戶的需求。這是一個。其次，我們實際上是在使用數據來微調我們的軟體——軟體、控制器、ECU，這樣對於現有客戶來說，無需購買基於升級軟體的新產品，透過無線方式，他們實際上獲得了某種體驗​​－他們將獲得升級或改進的騎乘體驗。

And lastly, we're also using data to -- in terms of retail expansions open stores as well as sales and after-sales service stores in the locations where what we call the white spot, where we have users, but we don't have service station.

最後，我們也使用數據——在零售擴張方面，在我們所謂的白點位置開設商店以及銷售和售後服務商店，在那裡我們有用戶，但我們沒有有服務站。

And the one more thing to add is actually the data we also use for -- sometimes for targeted advertising because really analyzing what our users' profile, analyzing what with our users behavior we have a better understanding of our potential users, and that will help us to targeted advertising. So those are sort of the 4 use is really describing our main business.

還要補充的一件事實際上是我們也使用的數據- 有時用於有針對性的廣告，因為真正分析我們用戶的個人資料，分析我們用戶的行為，我們可以更好地了解我們的潛在用戶，這將有助於我們進行有針對性的廣告。這四種用途實際上描述了我們的主要業務。

Now in terms of monetizing on existing data, we haven't done that. I think the only part we are seeing is actually for the users to continue enjoying this, what we call smart connectivities. There's annual fee of, I think, like RMB 30, RMB 38 or RMB 50 annual fee we charge on the user willing to support on the sort of on the data reconnectivities.

現在就現有數據的貨幣化而言，我們還沒有這樣做。我認為我們看到的唯一部分實際上是讓用戶繼續享受這一點，我們稱之為智慧連線。我認為，我們向願意支援資料重新連線的用戶收取 30 元、38 元或 50 元的年費。

I see no more questions in the queue. Let me turn the call back to Mr. Li for closing remarks.

我在隊列中沒有看到更多問題。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 in 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。

Thank you all again. This concludes the call. You may now disconnect.

再次感謝大家。通話就此結束。您現在可以斷開連線。