Niu Technologies (NASDAQ:NIU) Q4 2018 Earnings Conference Call - Final Transcript
Mar 18, 2019 • 08:00 am ET
Good day, ladies and gentlemen. Thank you for standing by, and welcome to Niu Technologies Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will 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.
Now, I will turn the call over to Mr. Jason Yang, Investor Relations Manager of Niu Technologies. Mr. Yang, please go ahead.
Hello, everyone. Thank you for joining us on today's conference call to discuss the company's financial results for the fourth quarter of 2018. We released the results earlier today. The press release is available on the company's website as well as from newswire services.
On the call with me today are Dr. Yan Li, Chief Executive Officer; and Mr. Hardy Zhang, Chief Financial Officer.
Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.
Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the audited most directly comparable GAAP measures and is available on our website. Please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi.
With that, now let me turn the call over to our CEO, Dr. Yan.
Great. Thanks, Jason, and thanks everyone for joining us on the call today. So we're very excited to report another strong quarter with solid financial performance. We grew scooter volume by 78%, net revenue by 95% and improved gross margin to 13.5%. That is 9 percentage points better than this time last year.
So despite the sluggishness in the Chinese economy with respect to consumer spending, our results actually show the demand remains robust for electric scooters. So we believe our electric scooter is one of the most convenient and the economic solution for people staying in urban community and this transcends economic devices.
So cities around the world continue to struggle with traffic congestions resulting from more and more automobile use, but electric scooter enable commuters to avoid traffic jams. Furthermore, if more people switch from four wheels to electric two wheels, it will actually reduce traffic congestion, less than aggregate energy consumption and eliminate point-of-use carbon emission, which is a very positive network effect.
So it's also one of the cheapest solutions for urban mobility. So we're spreading the retail price toward a top lifecycle. The daily cost for users is