Niu Technologies (NASDAQ:NIU) Q1 2019 Earnings Conference Call - Final Transcript
May 13, 2019 • 08:00 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the Niu Technologies First Quarter 2019 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise this conference is being recorded today, the 13th of May, 2019.
I would now like to hand the conference over to your speaker for today, Mr. Jason Yang. Please go ahead, sir.
Hello, everyone. Thank you for joining us on today's conference call to discuss the Company's financial results for the first quarter of 2019.
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 provisions of the United States 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 discussed 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 unaudited 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 RMB. With that, now let me turn the call over to our CEO Dr. Yan Li. Yan?
Thanks, Jason. Thanks, everyone, for joining us on the call today. First of all, we're very excited to report a great start in 2019 with a strong growth and positive net profit. We grew scooter unit volume by 76%, and the revenue more than doubled. We also improved gross margin to over 21% and operating profitably with the net margins of 3.4%. Gross margin and net margins are 8.6 and 39.2 percentage points higher than this time last year.
Niu is at its forefront of the revolution in urban mobility. And our results this quarter demonstrate our leadership position. We made advances in technology leadership, and also leveraged our brand awareness into new adjacent categories. Our brands and the product strengths really showed in our financial results. Growth was outstanding despite winter being our seasonally slow period.
Let's first discuss our most exciting development. The two all-new scooters model for the U-Series, the U+ and the US that were launched on April 12. Our U+ and the US models encouraged the attractive design style of our new U-Series.
The U-Series just achieved the so-called grand slam (ph), winning all seven major international design awards. Over the past 20 years,