小牛電動 (NIU) 2022 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to Niu Technologies' First Quarter 2022 Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) And now I would like to hand the conference over to Ms. Wendy Zhao from Niu Technologies IR team. Thank you. Please go ahead.

美好的一天，感謝您的支持。歡迎來到小牛科技 2022 年第一季度收益發布電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）現在我想把會議交給 Niu Technologies IR 團隊的 Wendy Zhao 女士。謝謝你。請繼續。

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the first quarter 2022. The earnings press release, corporate presentation and financial spreadsheets 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，接線員。大家好。歡迎參加今天的電話會議，討論小牛科技 2022 年第一季度的業績。收益新聞稿、公司介紹和財務電子表格已發佈在小牛的投資者關係網站上。此次電話會議正在公司的 IR 網站上進行網絡直播，很快將提供電話會議的重播。

Please note today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission.

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作出的前瞻性陳述。前瞻性陳述涉及風險、不確定性、假設和其他因素。該公司的實際結果可能與今天所表達的結果大不相同。有關風險因素的更多信息包含在公司向證券交易委員會提交的公開文件中。

The company does not assume any obligation to update any forward-looking statements, except as required by law. Our earnings press release and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to Yan.

除非法律要求，否則公司不承擔更新任何前瞻性陳述的任何義務。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原則財務措施的討論。新聞稿包含非公認會計原則財務指標的定義以及公認會計原則與非公認會計原則財務結果的對賬。今天與我通話的是我們的首席執行官嚴麗博士；和首席財務官 Fion Zhou 女士。現在讓我把電話轉給嚴。

All right. Thank you, everyone, for joining us on the call today. In Q1 2022, we witnessed the growth in both the China and the overseas markets. Total sales volume was up 9.4% year-over-year. The China market has a volatile quarter, mainly caused by the COVID outbreak and the city lockdown that last over a month in Shanghai and the surrounding Yangtze Delta region. We had a strong opening in China with sales volume growth of 91.6% year-over-year in January and February.

好的。謝謝大家今天加入我們的電話會議。 2022年第一季度，我們見證了中國和海外市場的增長。總銷量同比增長 9.4%。中國市場有一個波動的季度，主要是由於 COVID 爆發和上海及周邊長三角地區持續一個多月的城市封鎖。我們在中國的開業表現強勁，1 月和 2 月銷量同比增長 91.6%。

However, in March, our China sales performance was adversely affected by the COVID outbreak due to the retail lockdowns as well as the manufacturing and the logistics disruptions for nearly 2 weeks. And we experienced a 24.1% decline year-over-year in March. Despite the decline in March, we still had a moderate positive growth of 3.0% year-over-year in China market in Q1 due to the strong performance in the first 2 months.

然而，在 3 月份，由於零售封鎖以及製造和物流中斷近 2 週，我們的中國銷售業績受到 COVID 爆發的不利影響。我們在 3 月份經歷了 24.1% 的同比下降。儘管 3 月份有所下降，但由於前 2 個月的強勁表現，我們在第一季度中國市場仍實現了 3.0% 的溫和正增長。

Now turning to the international market. We are seeing a solid growth in the overseas market despite the manufacturing disruptions. Total sales volume outside China reached 147,000, marked 193.7% year-over-year growth in Q1. The solid growth was a result of our expansion of new product categories sold in Europe and North America. We newly launched kick-scooters who were tested to be a success in the 2 markets I mentioned above.

現在轉向國際市場。儘管製造中斷，我們仍看到海外市場的穩健增長。中國境外總銷量達到14.7萬輛，一季度同比增長193.7%。穩健增長是由於我們擴大了在歐洲和北美銷售的新產品類別。我們新推出的滑板車經過測試，在我上面提到的兩個市場上取得了成功。

In this quarter, we sold nearly 5,000 electric mopeds and almost 10,000 kick-scooters. The strong sales performance in the new kick-scooter product category confirmed our effort in developing a diversified product tailored to different markets is paid off. We have built the infrastructure to support the design, development and marketing of the broader product offerings. Augmented by our wide market reach in the geographic locations around the world, we aim to provide urban mobility solutions to the global market.

在本季度，我們售出了近 5,000 輛電動輕便摩托車和近 10,000 輛腳踏車。新的滑板車產品類別的強勁銷售表現證實，我們為開發適合不同市場的多元化產品所做的努力得到了回報。我們已經建立了基礎設施來支持更廣泛產品的設計、開發和營銷。憑藉我們在世界各地的廣泛市場覆蓋範圍，我們的目標是為全球市場提供城市交通解決方案。

Now going into details on the expansion of our product portfolios in Q1 2022. We focus mainly on the growing of the Gova product lines to complete the Gova product offerings in China. In Q1, we introduced the Gova G6, the light motorcycle Gova C3 specifically for female users and the Gova B0 entry-level electric bicycle targeted to the mass market. In Q2, we're shifting the focus on product portfolio expansions of our product performance improvements and to redefine classics, bring back the improved versions of some of our top selling models of MS and U+ series.

現在詳細介紹我們在 2022 年第一季度擴展產品組合的細節。我們主要關注 Gova 產品線的增長，以完成在中國的 Gova 產品供應。第一季度，我們推出了Gova G6、專為女性用戶設計的輕型摩托車Gova C3和麵向大眾市場的入門級電動自行車Gova B0。在第二季度，我們將重點轉移到產品性能改進的產品組合擴展上，並重新定義經典，帶回我們一些最暢銷的 MS 和 U+ 系列型號的改進版本。

Being the leader of the smart 2-wheelers, we continue to improve smart functionalities across our product portfolio. So allow me to go into detail one by one. First, we saw a sharp growth in the light electric motorcycle market as our Gova G3 being well received by the market once released last year. To capture this growth, we released Gova G6 at the end of March. The G6 is designed with upgraded battery capacity, and it has a range of over 100 kilometers on a single charge, priced at RMB 3,999 to RMB 4,399 as the mid-end offerings.

作為智能兩輪車的領導者，我們將繼續改進我們產品組合中的智能功能。所以請允許我一一詳述。首先，我們看到了輕型電動摩托車市場的急劇增長，因為我們的 Gova G3 在去年發布後就受到了市場的歡迎。為了抓住這一增長，我們在 3 月底發布了 Gova G6。 G6採用升級電池容量設計，單次充電續航里程超過100公里，中端售價3999-4399元。

Another trend we didn't want to miss is the growing market of the female electric moped electric bicycle users. We are well aware of the demand and the purchasing power behind this previously neglected market segment of the female scooter users. We launched the Gova C0 earlier last year as the entry-level product specifically for female users. Now this year, we launched a Gova C3 in March at the mid-end model priced at RMB 4,000 plus. It comes to multiple passive colors, and it is designed with the special CC headline that really makes the design stand out.

另一個我們不想錯過的趨勢是女性電動助力車用戶不斷增長的市場。我們很清楚女性滑板車用戶這個先前被忽視的細分市場背後的需求和購買力。去年早些時候，我們推出了 Gova C0，作為專門針對女性用戶的入門級產品。今年3月，我們推出了一款售價4000元以上的中端車型Gova C3。它具有多種被動顏色，並帶有特殊的CC標題設計，真正使設計脫穎而出。

On the performance side, the Gova C3 also has a drive range of maximum 100 kilometers. The biggest highlight of the Gova C3 is the improvement of user experience. It is equipped with smart lock and dynamic mode to assist riding uphill, making the riding experience easy and enjoyable. The stylish design and user-centric writing experience created a unique selling proposition in the market.

在性能方面，Gova C3 的續航里程也達到了 100 公里。 Gova C3最大的亮點就是用戶體驗的提升。配備智能鎖和動態模式輔助上坡騎行，讓騎行體驗輕鬆愉快。時尚的設計和以用戶為中心的寫作體驗在市場上創造了獨特的銷售主張。

Besides the 2 new and mid-end Gova products, we also released a B Series, which is another addition to the Gova product line that continues Gova's original design with creative color combos for the entry riders. We introduced B0 product at entry level price from RMB 2,499, and with more mid-end Gova B Series model to come later this year.

除了兩款新中端Gova產品外，我們還發布了B系列，這是Gova產品線的又一補充，延續了Gova的原創設計，為入門騎手提供了創造性的色彩組合。我們以 2,499 元的入門級價格推出了 B0 產品，今年晚些時候還將推出更多中端 Gova B 系列型號。

Now with the comprehensive model of Gova B and P-series, we believe we had a solid product range, covers in the -- and China electric bicycle and the electric motorcycle market, priced from RMB 2,499 to RMB 7,299. The newly released of 2 main Gova product, G6, G3 and entry-level Gova B0 were received by the market, accounting for almost 18% of sales since the first month of the rollout. This again demonstrates our ability to create attractive and comprehensive product in the mid-end market segment.

現在有了Gova B和P系列的綜合車型，我們相信我們的產品範圍很廣，覆蓋了中國電動自行車和電動摩托車市場，價格從2,499元到7,299元不等。新發布的兩款Gova主打產品G6、G3和入門級Gova B0受到市場歡迎，自推出首月以來，銷量佔比近18%。這再次證明了我們在中端市場領域創造有吸引力的綜合產品的能力。

I'll come into Q2, we're releasing some of the upgrade version of the new electric bicycle products such as MS and U+ with a 20% performance improvement. Also, we're bringing back our Niu's classic electric motorcycles of M1 and M+ refined with new features such as longer drive range and upgraded smart functions. We're excited about the growth driven by the performance improvement product in the Niu products series in the coming quarters.

我會進入第二季度，我們將發布一些新的電動自行車產品的升級版本，例如 MS 和 U+，性能提升 20%。此外，我們還帶回了我們的小牛經典電動摩托車 M1 和 M+，這些電動摩托車具有更長的行駛里程和升級的智能功能等新功能。我們對未來幾個季度小牛產品系列的性能改進產品推動的增長感到興奮。

Now for the international market, with continued effort in product development in the newly entered micro-mobility categories. The KQi3 Max is our most powerful and the fastest kick-scooters with the maximum speed of 32-kilometer per hour and its longer driver range that can go up to 65 kilometers. We plan to release this strong uphill model in Q2 this year, also the BQi C3 Pro e-bike is designed with stylish and practical lightweight frame together with paddle assistance throttle control to make it easy and comfortable as a city commute bike. Both products were exhibited during the CES in Q1 in Las Vegas, and as well received by the audiences.

現在面向國際市場，繼續努力在新進入的微型移動類別中進行產品開發。 KQi3 Max 是我們功能最強大、速度最快的滑板車，最高時速可達 32 公里，行駛里程更長，可達 65 公里。我們計劃在今年第二季度發布這款強勁的上坡車型，BQi C3 Pro 電動自行車採用時尚實用的輕量化車架以及槳式輔助油門控制，讓城市通勤自行車輕鬆舒適。兩款產品均在拉斯維加斯第一季度的 CES 期間展出，並受到觀眾的好評。

And lastly, we continue to improve the smart functionalities across our product portfolios. The newly launched models for both the Gova and new series are equipped with our new smart functions such as upgraded app with GPS, the antitheft remote tracking, scooter diagnostic features and also the Bluetooth and NFC lock system as well as the smart seat storage lock. Those intelligent features aim to make the riding experience smart and easy for our users.

最後，我們繼續改進我們產品組合的智能功能。 Gova 和新系列的新推出的車型配備了我們的新智能功能，例如昇級的 GPS 應用程序、防盜遠程跟踪、踏板車診斷功能以及藍牙和 NFC 鎖定係統以及智能座椅存儲鎖。這些智能功能旨在為我們的用戶提供智能和輕鬆的騎行體驗。

Those new product offerings and functional upgrade not only helped to drive sales growth, but also helped us to improve the gross margin. We all know that the sharp rise in the raw material prices, especially the 40% plus price hike in the lithium-ion battery cost, has put a tremendous pressure on our gross margin given the lithium-ion battery accounts for 35% to 40% of our bumped cost. This was the main cost for our gross margin drop in Q1, and an impact would be even bigger in Q2 since some of the raw material price increases are fully recognized in Q2.

這些新產品的推出和功能升級不僅有助於推動銷售增長，還幫助我們提高了毛利率。眾所周知，原材料價格的大幅上漲，尤其是鋰離子電池成本40%以上的漲價，對我們的毛利率造成了巨大壓力，鋰離子電池佔比35%~40%我們增加的成本。這是我們第一季度毛利率下降的主要成本，第二季度的影響會更大，因為部分原材料價格上漲在第二季度得到充分確認。

Now by launching new products and integrating new features to improve the performance of our existing products, will increase the perceived value of our users, and are able to sell the product at a premium price in order to close the gap in gross margin caused by the rising materials.

現在通過推出新產品和整合新功能來提高我們現有產品的性能，將增加我們用戶的感知價值，並能夠以高價銷售產品，以縮小由上升的材料。

Now as we grow our product portfolios, we also expand our sales network in Q1 2022. We opened about 140 new branded stores in China, totaling to 3,248 stores across China. In the international market, we also broadened our sales channels with new partnerships. Previously, with the electric motorcycles, we mainly have our overseas branded and premium stores and independent motorcycle dealers selling electric motorcycles. Now with the freshly launched category of kick-scooters, and to-be-launched e-bikes, we opened up to work with electronics and general retail stores as well as online like Amazon, and also Shopify website. We plan to keep growing the network as we grow product offerings and penetrate into a broader market.

現在，隨著我們擴大產品組合，我們也在 2022 年第一季度擴大了我們的銷售網絡。我們在中國開設了大約 140 家新品牌店，在中國共有 3,248 家門店。在國際市場上，我們還通過新的合作夥伴拓寬了我們的銷售渠道。此前，在電動摩托車方面，我們主要有我們的海外品牌和高檔商店以及銷售電動摩托車的獨立摩托車經銷商。現在，隨著新推出的滑板車類別和即將推出的電動自行車，我們開始與電子產品和一般零售店以及亞馬遜等在線商店以及 Shopify 網站合作。我們計劃在增加產品供應並滲透到更廣泛的市場時繼續發展網絡。

Our brand image is always a real field behind the long-term growth as we expand into new product category internationally. We continue to build our brand image as a global leader of urban mobility. In Q1, we actively participated in exhibitions worldwide, showcasing our product lines this year for the global market. We participated in the Consumer Electronics Show in Las Vegas, the Vive La Moto Show in Madrid, Spain, and E-TECH show in Bologna, Italy. In some of exhibitions and conferences, Niu was the only 2-wheeler vehicle brand invited, and our new products revealed gained exposures and the recognition in the industry.

隨著我們在國際上拓展新產品類別，我們的品牌形象始終是長期增長背後的真正領域。我們將繼續打造我們作為全球城市交通領導者的品牌形象。第一季度，我們積極參加全球展會，向全球市場展示我們今年的產品線。我們參加了拉斯維加斯的消費電子展、西班牙馬德里的 Vive La Moto 展和意大利博洛尼亞的 E-TECH 展。在一些展會和會議中，小牛是唯一受邀的兩輪車品牌，我們的新品展示也獲得了曝光和業界的認可。

Now as a promoter of the sustainable living for all, we are also dedicated to provide our customers with more environmental friendly smart urban vehicles to make a positive impact on the environment. We're spreading the idea of sustainable living through out -- not just our products, but also our daily operations. Last year, we celebrated our 10 billion-kilometer drive distance event, calculating carbon emission reduction of 2.5 billion kilograms if those distances were traveled with petrol. During this quarter, we launched a program called ReNIU, a global sustainable initiative designed to renew our planet as part of our Earth Day campaign. We organized the global Earth Day cleanup that was designed to bring life into our urban environment that has galvanized new user to actions across 4 continents. We have Niu club rally to clean up trash in public areas on the beach of [Vale], the Street of [Entra], and even around the Antient remains of Guatemala.

現在，作為所有人可持續生活的推動者，我們也致力於為我們的客戶提供更環保的智能城市車輛，對環境產生積極的影響。我們正在傳播可持續生活的理念——不僅是我們的產品，還有我們的日常運營。去年，我們慶祝了我們的 100 億公里駕駛距離活動，計算出如果這些距離使用汽油行駛，碳排放量將減少 25 億公斤。在本季度，我們啟動了一項名為 ReNIU 的計劃，這是一項旨在更新地球的全球可持續倡議，作為我們地球日活動的一部分。我們組織了全球地球日清理活動，旨在為我們的城市環境注入活力，激發新用戶在四大洲採取行動。我們在 [Vale] 海灘、[Entra] 街甚至危地馬拉安提恩遺址周圍的公共區域舉行 Niu 俱樂部集會清理垃圾。

In China, we also have users to share their stories to live greener with Niu. The user-generated content gained over 66 million views and almost 150,000 interactions and comments and likes across all social media platforms. Sustainability has been a core value to us since day 1, and I'm proud to see our brand making a positive impact on journey of sustainability with our users.

在中國，我們也有用戶分享他們的故事，讓小牛生活得更環保。用戶生成的內容在所有社交媒體平台上獲得了超過 6600 萬次觀看和近 15 萬次互動、評論和點贊。從第一天起，可持續發展一直是我們的核心價值，我很自豪地看到我們的品牌對我們用戶的可持續發展之旅產生積極影響。

Now in China, as we expand to cover more broader range of consumers, both demographically and geographically, we continue to spread value behind our brand with a variety of campaigns. We carried on our successful campaign slogan, feel proud of yourself. In this quarter, we collaborated with the China top comedy group on the nationwide TV show and again, over 2.9 billion viewership. Also, from March to April, we implemented a QR marketing on Douyin platform with 15 technology and lifestyle influencers with larger fan base to create a high-quality content showing case our scooters. A short video done on Douyin had a total of 100 million views, and 4 million interaction, likes and comments.

現在在中國，隨著我們在人口和地理上覆蓋更廣泛的消費者，我們繼續通過各種活動傳播我們品牌背後的價值。我們繼承了我們成功的競選口號，為自己感到自豪。在本季度，我們與中國頂級喜劇集團合作了全國電視節目，再次獲得超過 29 億的收視率。此外，從 3 月到 4 月，我們在抖音平台上實施了 QR 營銷，擁有 15 位擁有更大粉絲群的技術和生活方式影響者，以創建高質量的內容展示我們的滑板車。在抖音上做的一個短視頻總共有1億次觀看，400萬次互動、點贊和評論。

We further organized various user activities across China as a participation, for example, participation in Guangzhou Comic Con with user modified by new bikes, gaining about 1.7 million views on social media, also various new friends events such as one in Chengdu hosting and new concert with world-recognized singers.

我們進一步組織了全國各地的用戶參與活動，例如參加廣州動漫展，用戶改裝新自行車，在社交媒體上獲得約170萬瀏覽量，以及成都舉辦和新音樂會等各種新朋友活動與世界公認的歌手。

Now to conclude Q1 2022, despite the headwinds caused by the COVID-19 and raw material price increase, we were resilient in our business operation. Both the China, overseas market have positive responses to our expanded product categories and upgrade models, and we plan to keep or broaden our product portfolio, and already have a few products in line with production and market entries for the coming quarters. Our branding and marketing operations, we actively promote our brand as a global leader in urban mobility industry, brand awareness and recognition from market we operate in create a long-term view for our company's growth.

現在結束 2022 年第一季度，儘管 COVID-19 和原材料價格上漲帶來了不利因素，但我們的業務運營具有彈性。中國和海外市場都對我們擴大產品類別和升級模式的反應積極，我們計劃保持或擴大我們的產品組合，並且已經有一些產品符合未來幾個季度的生產和市場進入。我們的品牌和營銷業務，我們積極推廣我們的品牌作為城市交通行業的全球領導者，品牌知名度和我們經營的市場的認可為我們公司的發展創造了長遠的眼光。

Now looking forward to Q2 '22. It is no doubt a very challenging period for us, given uncertainty caused by the resurgence of COVID-19 in China. As of May 2022, quite some major cities have been in full or partial lockdowns, which adversely affect the consumer spending in all categories with no exception to the demand of 2-wheeler vehicles during the lockdown period. We are particularly impacted as our sales are highly concentrated in the top-tier cities where the COVID restraints are more rigid.

現在期待 22 年第二季度。鑑於 COVID-19 在中國的死灰復燃造成的不確定性，這對我們來說無疑是一個非常具有挑戰性的時期。截至2022年5月，不少主要城市已全面或部分封城，對各品類消費支出產生不利影響，封城期間兩輪車的需求也不例外。我們受到的影響尤其大，因為我們的銷售高度集中在 COVID 限制更加嚴格的一線城市。

In addition, we continue to experience supply chain disruptions that some of the key suppliers are in Shanghai, and vicinity. The slowdown in manufacturing and logistics has affected our market performance globally.

此外，我們繼續經歷一些主要供應商位於上海及附近地區的供應鏈中斷。製造和物流的放緩影響了我們在全球的市場表現。

While the market demand in China faces uncertainties in Q2, our diversified growth strategy put in place since last year has shine some light. The newly launched category of kick-scooters has been ground in Europe and North American market. Our kick-scooter ranked as Amazon's best sellers of electric scooter category for 2 weeks in narrow in May. The to-be-launched electric bike products will further strengthen our position at the urban mobility brand. The rising sales in our international market will help us to weather through the temporary downturns in the China market.

雖然第二季度中國市場需求面臨不確定性，但我們從去年開始實施的多元化增長戰略已經有所亮點。新推出的滑板車類別已在歐洲和北美市場落地。我們的滑板車在 5 月份連續兩週被評為亞馬遜電動滑板車類暢銷書。即將推出的電動自行車產品將進一步鞏固我們在城市出行品牌中的地位。我們國際市場的銷售增長將幫助我們度過中國市場暫時的低迷期。

Now we're also confident in our rebound in the sales in the China post the COVID-19 situation as the same trend observed in 2020. Now in the cities that have been hit by COVID, even though the sales are being hit temporarily. Now traveling with personal scooters appear to be recommended in some times even as the only form of transportation in cities, for many riding a scooter is safer and easier transportation method, and is even a recommended method by local community officials. So expect to see a need for electric scooter and bicycle rising with the COVID easing in the coming quarters.

現在，我們也有信心在 COVID-19 疫情之後中國的銷售反彈，與 2020 年觀察到的趨勢相同。現在在受到 COVID 打擊的城市，即使銷售暫時受到打擊。現在，在某些情況下，即使是作為城市唯一的交通工具，個人滑板車似乎也被推薦，因為許多人騎滑板車是更安全、更方便的交通工具，甚至是當地社區官員的推薦方式。因此，隨著新冠疫情在未來幾個季度的緩解，預計電動滑板車和自行車的需求將會上升。

So although Q2 will be a challenging quarter for us. Now with our new product offerings in pipeline for both the China market and the international market, we're still optimistic for the entire year of 2022.

因此，儘管第二季度對我們來說將是一個充滿挑戰的季度。現在，隨著我們為中國市場和國際市場推出的新產品，我們仍然對 2022 年全年持樂觀態度。

Now I'll turn the call over to Fion, our CFO, to go through the financial results.

現在我將把電話轉給我們的首席財務官 Fion，以查看財務結果。

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

謝謝Yan，大家好。我們的新聞稿包含您需要的所有數字和比較，我們還將 excel 格式的數字上傳到我們的 IR 網站以供您參考。當我回顧我們的財務表現時，我們指的是第一季度的數字，除非另有說明，並且所有貨幣數字都是人民幣，除非另有說明。

In the first quarter 2022, we are gratified to see the strong demand of kick-scooter series since its debut last year in Europe and in U.S. has been maintaining its momentum, and the product mix in China market continue to move towards what we planned and expected. Among the total 149,000 sales in Chinese domestic market, 31.4% are coming from the N, M, U series, and 38.4% from Gova premium, and only 30.2% from the Gova Entry. As Yan just mentioned, kick-scooter sales volume in the overseas market reached nearly 10,000. And e-moped and e-motorcycles, 5,000.

2022年第一季度，我們欣見kick-scooter系列自去年在歐洲和美國上市以來的強勁需求一直保持勢頭，中國市場的產品結構繼續朝著我們的計劃和方向發展。預期的。在中國國內市場的14.9萬輛銷量中，31.4%來自N、M、U系列，38.4%來自Gova Premium，僅30.2%來自Gova Entry。正如閆剛所說，電動滑板車在海外市場的銷量達到了近萬輛。還有電動助力車和電動摩托車，5,000 輛。

Talking about revenue. Total revenue increased by 5.1% to RMB 575.5 million, compared to the same period last year. Specifically, revenue from scooters increased by 70.5%, while revenue from accessories, spare parts and services dropped by 48.9% in earlier half. The contribution of scooter revenue rose from 91.3% to -- sorry, from 81.3% to 90.9% year-over-year. And in China market, we managed to achieve a slight growth despite headwinds from COVID resurgence. And e-scooter revenue from China market increased by 12.6% to RMB 457.7 million accounting for 87.5% of total scooter revenue, and the growth was mostly driven by the improvement in ASP as a result of a more optimized product mix, as I mentioned.

談收入。總收入為人民幣5.755億元，同比增長5.1%。具體而言，踏板車收入增長了 70.5%，而配件、備件和服務收入在上半年下降了 48.9%。踏板車收入的貢獻從 91.3% 上升到 - 對不起，從 81.3% 同比上升到 90.9%。在中國市場，儘管受到 COVID 復甦的不利影響，我們仍實現了小幅增長。中國市場的電動滑板車收入增長 12.6% 至 4.577 億元人民幣，佔滑板車總收入的 87.5%，增長主要是由於產品結構更加優化導致 ASP 的提高，正如我所提到的。

Our newly released Gova premium models targeting at mid-end market, has received a positive response and feedback. Solid growth from Gova premium was also reflected in the ASP. The scooter ASP from China market was RMB 3,072, 9.4% increase from the first quarter 2021. Scooter revenue from overseas markets increased by 68.9% to RMB 65.7 million, fueled by strong kick-scooter sales since its official launch in quarter 3 2021. The overseas scooter revenue as a percentage of total scooter revenue increased by 3.8 ppt to 12.5% year-over-year, indicating that our international sales keep growing steadily as we continue to expand product offers tailored to different community and traveling demand in those markets.

我們針對中端市場新推出的Gova高端車型，得到了積極的響應和反饋。 Gova 溢價的穩健增長也反映在 ASP 中。中國市場滑板車平均售價為人民幣 3,072 元，比 2021 年第一季度增長 9.4%。海外市場滑板車收入增長 68.9% 至人民幣 6,570 萬元，這得益於自 2021 年第三季度正式推出以來強勁的滑板車銷售。海外滑板車收入佔滑板車總收入的百分比同比增長 3.8 個百分點至 12.5%，這表明我們的國際銷售額持續穩定增長，因為我們繼續擴大針對這些市場不同社區和旅行需求的產品供應。

Among the total RMB 65.7 million overseas scooter revenue, RMB 21 million came from kick-scooters, and the other RMB 44.7 million were from moped and motorcycles. Overseas scooter AMP as a whole fell from RMB 7,786 to RMB 4,476. Since the kick-scooter, which retail price is much lower than e-moped and e-motorcycles is included in the number. And the ASP of e-mopeds and motorcycles in fact, increased from -- increased by 18.5% year-over-year because of our high-end models like NGT EV and NGT accounts for a higher proportion of the total sales volume. With all the above being said, branded scooter ASP increased by 7.5% to RMB 3,198 including China e-scooters, overseas e-scooters, and e-motorcycles, and kick-scooters altogether.

在6570萬元海外踏板車收入中，2100萬元來自滑板車，4470萬元來自輕便摩托車和摩托車。海外代步車AMP整體從7786元跌至4476元。由於電動滑板車的零售價遠低於電動助力車和電動摩托車，因此也包括在其中。事實上，電動助力車和摩托車的 ASP 同比增長 18.5%，因為我們的 NGT EV 和 NGT 等高端車型占總銷量的比例更高。綜上所述，包括中國電動滑板車、海外電動滑板車、電動摩托車和電動滑板車在內的品牌滑板車平均售價增長 7.5% 至 3,198 元人民幣。

Accessories, spare parts and service revenue were RMB 52.1 million, a decrease of 48.9% from last year quarter 1, representing a 9.1% of total revenues compared to 18.7% of total revenues last year. The decrease was mainly due to the overseas battery pack sales reduction. Highest rate costs and euro depreciation against the U.S. dollars has discouraged many distributors from stocking up in advance.

配件、備件和服務收入為人民幣 5210 萬元，比去年第一季度下降 48.9%，佔總收入的 9.1%，而去年佔總收入的 18.7%。減少的主要原因是海外電池組銷量減少。最高的費率成本和歐元兌美元貶值使許多分銷商不願提前備貨。

We did not meet the previous guidance for this quarter, mainly due to the COVID impact on domestic market, which led to not only manufacturing and logistics disruptions, supply chain shortages, but also the severe retail difficulties and transportation limitations in many big cities. These headwinds may continue to cast the impact on our performance in the second quarter.

我們沒有達到本季度之前的指引，主要是由於 COVID 對國內市場的影響，這不僅導致製造和物流中斷、供應鏈短缺，而且許多大城市的零售困難和運輸限制嚴重。這些不利因素可能會繼續影響我們第二季度的業績。

The gross margin for the first quarter declined by 4.7 ppt from the same period last year to 19.1%, largely due to the fewer sales from non-scooter parts and services, which has higher margins and the consistently soaring cost of lithium-ion batteries and the other core raw material price hikes, for example, aluminum, cooper and rubbers.

一季度毛利率較去年同期下降4.7個百分點至19.1%，主要是由於非滑板車零部件和服務的銷售減少，非滑板車零部件和服務的利潤率較高，以及鋰離子電池和鋰離子電池成本持續飆升。其他核心原材料價格上漲，例如鋁、銅和橡膠。

To pass on the cost pressure, we actually raised the retail prices for all of our lithium-ion battery models in China market on April 1. And for some models in overseas market on May 1. We believe that the retail price increases will sustain us through upstream cost inflation.

為了轉嫁成本壓力，我們實際上在 4 月 1 日上調了我們所有鋰離子電池型號在中國市場的零售價。對於海外市場的部分型號，我們在 5 月 1 日上調了零售價。我們相信零售價的上漲將支撐我們通過上游成本膨脹。

And now let's turn to expenses. Total operation expenses were RMB 143 million, an increase of 9.6% from the same period 2021. And operating expenses as a percentage of revenue was 24.8% compared to 23.8% in the first quarter of 2021. And this increase was mainly due to the rising R&D expenses, which jumped to RMB 41.8 million, 63.4% up year-over-year, but 7% lower quarter-over-quarter. And the majority increase year-over-year are design and testing expenses and staff cost. Being able to stay competitive in the market and to achieve sustaining growth significantly relying on our ability to keep launching popular products, which meet the demands of our customers. Thus, the R&D has always been our priority ever since.

現在讓我們談談費用。營業費用總額為人民幣1.43億元，較2021年同期增長9.6%。營業費用佔收入的比例為24.8%，而2021年第一季度為23.8%。增加的主要原因是研發費用躍升至人民幣 4,180 萬元，同比增長 63.4%，但環比下降 7%。同比增長的大部分是設計和測試費用以及員工成本。能夠在市場上保持競爭力並實現持續增長，很大程度上取決於我們不斷推出滿足客戶需求的受歡迎產品的能力。因此，研發一直是我們的首要任務。

And the marketing and selling expenses were RMB 70 million decreased by 4.7% compared to quarter 1 2021, mainly because of the decrease in advertising and promotion expenses. However, we did put much focus on ramping up kick-scooters abroad sales channels. Other than online channels like Amazon, Best Buy and Walmart, which we have already entered into. We've expanded to some of the largest offline big-box tailors -- retailers like Costco, (inaudible), Auchan and [Slack]. We believe these efforts will pay off in the kick-scooter sales going forward.

營銷和銷售費用為人民幣 7,000 萬元，較 2021 年第一季度下降 4.7%，主要是由於廣告和促銷費用減少。然而，我們確實把重點放在了增加滑板車海外銷售渠道上。除了我們已經進入的亞馬遜、百思買和沃爾瑪等在線渠道。我們已經擴展到一些最大的線下大型裁縫店——像 Costco、（聽不清）、歐尚和 [Slack] 這樣的零售商。我們相信這些努力將在未來的滑板車銷售中得到回報。

And G&A expenses remained flat 0.3 ppt lower as a percentage of revenue as we continue to control costs and improve our operational efficiency. The non-GAAP operating expenses as a percentage of revenue was 22.6% compared to 21.7% of last year, quarter 1. Out of the 22.6% annual non-GAAP operating expenses, 11.5% was from the selling and marketing expenses, 1.4 ppt lower than last year. 6.4% was from the R&D expenses, 2.5 ppt higher than last year. And 4.7% was from G&A expenses, 0.2 ppt lower than last year. This quarter, we recorded a net loss of RMB 29.6 million compared to the net loss of RMB 5.4 million in the first quarter of 2021, and the net margin was negative 5.1% compared to the negative 1.0% last year. Non-GAAP loss was RMB 16.3 million compared to the last year's net profit of RMB 6.7 million.

由於我們繼續控製成本並提高運營效率，G&A 費用佔收入的百分比保持平穩 0.3 個百分點。非 GAAP 運營費用佔收入的百分比為 22.6%，而去年第一季度為 21.7%。在 22.6% 的年度非 GAAP 運營費用中，11.5% 來自銷售和營銷費用，下降 1.4 個百分點比去年。 6.4%來自研發費用，比去年增加2.5個百分點。其中 4.7% 來自 G&A 費用，比去年下降 0.2 個百分點。本季度，我們錄得淨虧損人民幣 2,960 萬元，而 2021 年第一季度淨虧損人民幣 540 萬元，淨利率為負 5.1%，而去年為負 1.0%。非美國通用會計準則虧損為人民幣 1630 萬元，而去年的淨利潤為人民幣 670 萬元。

Turning to our balance sheet and cash flow. We ended the quarter with RMB 890 million in cash, term deposits and short-term investments and RMB 223 restricted cash. Our operating cash flow was RMB 168 million, mainly due to the reduction in payable of RMB 174 million as a result of seasonality. And in addition, our purchase of raw materials battery pack have increased since the second half of 2021 as we tended to lock in the price and avoid the adverse impact from the further price hikes.

轉向我們的資產負債表和現金流。截至本季度末，我們擁有人民幣 8.9 億元的現金、定期存款和短期投資以及人民幣 223 元的受限現金。經營性現金流1.68億元，主要是受季節性影響減少應付賬款1.74億元。此外，自 2021 年下半年以來，我們對原材料電池組的採購有所增加，因為我們傾向於鎖定價格，避免進一步漲價帶來的不利影響。

Also, due to the seasonality, quarter 1 is the quarter in which we usually generated the lowest sales throughout the year. Considering these 2 factors, it's typical that operating cash flow is negative for the first quarter each year.

此外，由於季節性原因，第一季度是我們通常全年銷售額最低的季度。考慮到這兩個因素，每年第一季度的運營現金流通常為負數。

Talking about quarter 2 guidance. Given the high uncertainty of China domestic market, as we mentioned, especially the continuing negative impact of the recent outbreak of -- on our offline retail. And we expect the revenue to be between RMB 803 million to RMB 945 million, representing a 15% decrease to no change year-over-year.

談論第二季度的指導。正如我們所提到的，鑑於中國國內市場的高度不確定性，特別是最近爆發的持續負面影響——對我們的線下零售。我們預計收入將在人民幣8.03億元至人民幣9.45億元之間，同比下降15%至無變化。

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

有了這個，現在讓我們打開電話，詢問您可能對我們提出的任何問題。接線員，請繼續。

(Operator Instructions)

（操作員說明）

We have no question at this time. I will turn the call back to the management team for closing remarks.

目前我們沒有任何疑問。我會將電話轉回給管理團隊以完成結束語。

All right. Thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and looking forward to reporting to you again next quarter on our progress.

好的。謝謝你，接線員，謝謝大家參加今天的電話會議和你們的支持。我們感謝您的關注，並期待在下個季度再次向您報告我們的進展。

Thank you. That does conclude our conference for today. Thank you for participating. You may all disconnect.

謝謝你。這確實結束了我們今天的會議。感謝您的參與。你們都可以斷開連接。