Niu Technologies (NASDAQ:NIU) Q2 2019 Earnings Conference Call - Final Transcript
Aug 23, 2019 • 08:00 am ET
Ladies and gentlemen, good day ladies and gentlemen. Thank you for standing by and welcome to the Niu Technologies Second Quarter 2019 Earnings Conference Call.
Now I will turn the call over to Mr. Jason Yang, Investor Relations Manager of Niu Technologies. Mr. Yang, please go ahead.
Thank you operator. Hello, everyone. Thank you for joining us on today's conference call to discuss the Company's financial results for the second quarter 2019.
We released the results earlier today. The press release is available on Company's IR website, as well as from Newswire services. 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 certain 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. The Company does not assume any obligation to update any forward-looking statement, except as required by law.
Our earnings press release today and this call include discussions of certain non-GAAP financial measures. The press release contains a definition of the non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Please note that, unless otherwise stated, all figures mentioned during the conference call are in Chinese renminbi.
On the call with me today are Dr. Yan Li, Chief Executive Officer; and Mr. Hardy Zhang, Chief Financial Officer.
Now let me turn the call over to our CEO, Dr. Yan Li. Yan?
All right. Thanks, Jason and thanks everyone for joining us on the call today. We have been navigating a dynamic market in the second quarter that has been challenged by regulatory changes. Despite the fact that overall China market for electric scooters slowed in Q2, we managed to deliver healthy growth.
Our scooter sales volume grew by 14% and revenue grew by 38%. We also improved gross margin to 23.7% and net profit margin to 9.6%. Both are significantly higher than Q2 last year and further improved from Q1 this year. We are pleased to continue to operate profitably in this quarter. Niu is at the forefront, of the revolution in urban mobility, and our results this quarter demonstrated our leadership position. We made advances in technology leadership and leveraged our brand awareness into a new adjacent categories. Our brand and product strength really showed in our financial results.
First, as we discussed in last earning call, we launched our two new product lines compliant with the new China regulations effective April of this year, namely the U+ and the US. Both products were delivered to the market in late April and both have received very positive feedback from our customers. The U+ and the US volume represented more than one-third of our sales volume in Q2 and widely consider a top list products in the market against our competitors.
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