Niu Technologies (NASDAQ:NIU) Q3 2019 Earnings Conference Call - Final Transcript
Nov 25, 2019 • 08:00 am ET
Good day, ladies and gentlemen. Thank you for standing by and welcome to the Niu Technologies Third Quarter 2019 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, sir.
Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the third quarter 2019. The call is being webcasted from Company's IR website. A investor presentation and replay of the call will be available soon at email@example.com.
Please note today's discussion will contain forward-looking statements made under the Safe Harbor provision 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 differ 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 statements, except as required by law.
Our earnings press release and this call include discussions of certain non-GAAP financial measures. 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 our CFO, Mr. Hardy Zhang. Now, let me turn the call over to Yan.
Thanks, Jason and thanks everyone for joining us on the call today. We have observed a gradual market recovery in Q3 be in the traditionally a peak season of the year. Our sales volume has increased by 24% and revenue by 33% in Q3. We have also enhanced our gross margin to 22.2% and net profit margin at 10.1%, both were beyond our expectations. We continue to build our leadership in urban mobility via products and technology development, marketing events and user-based activities and retail expansions.
First, we'll launch our global product line with three products G1, G3 and G5 in late September. The GOVA product line is beautifully designed, but there was a different design style to expand our style diversity. With product specs bias towards functionality, the GOVA product line is positioned as a value for money products with retail price started at RMB2,999, perfect for entry-level users under the new China regulations. G1 was shipped in late September and the G3 and G5 were shipped in late October. Despite the market already headed to a low season in October, we have seen quite a bit demand on this new product line.
Second, we have launched our first power-assisted bicycle products, NIU Aero EB-01 in Web Summit in Lisbon in November this year. The NIU Aero EB-01 is the hybrid model of the electric scooter and