Niu Technologies (NASDAQ:NIU) Q2 2020 Earnings Conference Call - Final Transcript

Aug 17, 2020 • 08:00 am ET


Niu Technologies (NASDAQ:NIU) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, thank you for standing by and welcome to the Niu Technologies Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

Now I will turn the call over to Mr. Jason Yang, Investor Relations Manager of Niu Technologies. Mr. Yang, please go ahead.

Jason Yang

Thank you, operator.

Hello, everyone, and welcome to today's conference call to discuss Niu Technologies' results for the second quarter 2020. The earnings press release, corporate presentation and financial spreadsheet have been posted on Niu investor relations website. This call is being webcast from the Company's IR website and a replay of the call will be available soon.

Please note, today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the United Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions and other factors. The Company actual results may be materially differ from those expressed today. For more 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 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, Mr. Hardy Zhang.

Now let me turn the call over to Yan.

Yan Li

Hi. Thanks, Jason, and thanks, everyone, for joining us on the call today.

We had a recovery in the China market in Q2, while in overseas market, our sales performance was still affected by COVID-19.

Now, on performance in Q2, our total sales volume reached 160,000 units, an increase of 61% year-over-year. The sales volume in the China market reached to 155,000 units, an increase of 81% year-over-year, while the international market reached 5,000 units, decreased by 62% due to the impact of COVID-19. Despite the decline in sales in the overseas market in Q2, we remain very, very positive about our performance in the second half as the market gradually recovers from the COVID-19 outbreak.

Now, in Q2 we continued to build our leadership in urban mobility via new product rollout, branding and marketing activities and the retail expansion. So first of all, Q2 has been a very busy quarter for us in launching new products. As I mentioned in the previous earning call, we launched our MQi2 on May 7, our flagship electric bicycle product for the China market in 2020 as an upgrade of our 2016 signature M1 model with the up-to-date technology and complying with China's new regulations. The product launch was held Zhibo, our online live streaming sales at Taobao platform and achieved a huge success with 3 million plus views online. Since then, M2 has been a key selling product in our electric bicycle category, representing 50.5% of our sales in Q2 and is positioned as our high end electric