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    NIU
    Earnings call· Jun 2026(Q2 FY26)

    Niu Technologies Q2 FY26 earnings call NIU

    Aug 10, 2026 Source

    Executive summary

    Niu Technologies Q2 FY26 — Strong Volume Growth Amidst Market Transformation

    Niu Technologies navigated a challenging Q2 FY26 by achieving robust volume growth, primarily driven by a strategic pivot to electric motorcycles in China and a steady recovery in international markets. Despite significant gross margin compression due to product mix shifts, promotional activities, and elevated raw material costs, the company focused on operational efficiency and channel optimization. The quarter marked a pivotal period of structural adjustment, with an emphasis on reestablishing premium e-bicycle offerings and advancing AI integration while normalizing overseas inventory.

    Highlights

    5

    • Total sales volume increased by 24% year-over-year to 434,000 units.

    • China sales volume grew 26% year-over-year to 400,000 units, primarily driven by electric motorcycles.

    • Online sales grew by 50% year-over-year, accounting for 64% of total domestic retail sales.

    • International electric motorcycle business grew 50% year-over-year to 4,800 units.

    • Same-store sales surged by 24% year-over-year across the store network.

    Concerns

    5

    • Gross margin declined by 4.1 percentage points year-over-year to 16% due to product mix shift, promotional clearance, and raw material costs.

    • China scooter average selling price (ASP) decreased by 9% year-over-year to RMB 3,010 due to product mix shift towards lower-priced electric motorcycles.

    • GAAP net loss of RMB 102 million, compared to a net income of RMB 5.9 million in the prior year.

    • Operating expenses increased by 29% year-over-year to RMB 341 million, with the OpEx ratio rising to 24%.

    • Foreign exchange losses contributed to increased G&A expenses.

    Guidance & targets

    1
    CategoryTargetConfidence
    Revenue
    RMB 1.86 billion to RMB 2.03 billion
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    China
    Revenue accounted for 92% of total revenue. The growth in scooter revenue was primarily driven by higher sales volume, partially offset by decreased e-scooter revenue. The decline in ASP was due to a product mix shift towards lower-priced electric motorcycles.
    Sales Volume: 400,000 unitsSales Volume Growth YoY: 26%Scooter Revenue: RMB 1.21 billionScooter Revenue Growth YoY: 15%Scooter ASP: RMB 3,010Scooter ASP Decline YoY: 9%Electric Motorcycle Contribution to Sales Volume: ~60%NX Marathon Contribution to Domestic Sales Volume: 11%
    		RMB 1.32 billion———
    Overseas
    Revenue accounted for 8% of total revenue. The increase in scooter revenue was driven by higher sales volume. The direct-to-retailer strategy for electric motorcycles and premium mix optimization in Europe contributed to local profitability.
    Sales Volume: 32,485 unitsSales Volume Growth YoY: 3.6%Scooter Revenue: RMB 106 millionScooter ASP: RMB 3,270Electric Motorcycle Units: 4,800 unitsElectric Motorcycle Units Growth YoY: 50%Dealer Network: 417 active locations125cc Category Share of European Sales Volume: ~50%Micromobility End-User Retail Activation: >36,000 unitsMicromobility End-User Retail Activation Growth YoY: 21%
    		RMB 116 million———

    Operational metrics

    34
    Total Sales Volume
    434,000 unitsup 24% year-over-year
    Q2 FY26

    Total sales volume across all segments.

    Total Revenue
    RMB 1.44 billionup 14.7% year-over-year
    Q2 FY26

    Total revenue for the quarter.

    Gross Profit
    RMB 230 milliondeclined from RMB 252 million year-over-year
    Q2 FY26

    Gross profit for the quarter.

    Gross Margin
    16%down 4.1 ppts year-over-year
    Q2 FY26

    Gross margin compression due to product mix shift, higher costs, and inventory clearance.

    Operating Expenses
    RMB 341 millionincreased 29% year-over-year
    Q2 FY26

    Total operating expenses for the quarter.

    Operating Expense Ratio
    24%up from 21% year-over-year
    Q2 FY26

    Operating expenses as a percentage of revenue.

    Selling and Marketing Expenses
    RMB 239 millionincreased RMB 36 million year-over-year
    Q2 FY26

    Selling and marketing expenses for the quarter.

    Selling and Marketing Expenses as % of Revenue
    17%up from 16% year-over-year
    Q2 FY26

    Selling and marketing expenses as a percentage of revenue.

    R&D Expenses
    RMB 52 millionincreased RMB 8 million year-over-year
    Q2 FY26

    Research and development expenses for the quarter.

    R&D Expenses as % of Revenue
    3.6%up from 3.5% year-over-year
    Q2 FY26

    R&D expenses as a percentage of revenue.

    G&A Expenses
    RMB 51 millionincreased RMB 31 million year-over-year
    Q2 FY26

    General and administrative expenses for the quarter.

    G&A Expenses as % of Revenue
    3.5%up from 1.5% year-over-year
    Q2 FY26

    G&A expenses as a percentage of revenue.

    G&A Expenses (Excluding FX Losses)
    RMB 32 millioncompared with RMB 44 million in the same period of last year
    Q2 FY26

    G&A expenses adjusted for foreign exchange losses.

    Net Loss (GAAP)
    RMB 102 millioncompared to a net income of RMB 5.9 million year-over-year
    Q2 FY26

    GAAP net loss for the quarter.

    Net Loss Margin (GAAP)
    7.1%compared to 0.5% net income margin year-over-year
    Q2 FY26

    GAAP net loss margin for the quarter.

    Non-GAAP Net Loss
    RMB 98 million
    Q2 FY26

    Non-GAAP net loss for the quarter.

    Non-GAAP Net Loss Margin
    6.8%
    Q2 FY26

    Non-GAAP net loss margin for the quarter.

    Cash, Restricted Cash, Term Deposits and Short-term Investments
    RMB 1.7 billionincreased RMB 36 million compared to end of last year
    Q2 FY26

    Total liquidity at the end of the quarter.

    Operating Cash Inflow
    RMB 392 million
    Q2 FY26

    Cash generated from operating activities.

    Capital Expenditure
    RMB 53 millionincreased RMB 21 million year-over-year
    Q2 FY26

    Capital expenditures for the quarter.

    Revenue from Accessories, Spare Parts and Services
    RMB 124 million29% increase year-over-year
    Q2 FY26

    Driven by growth in new APP services and higher sales in China market.

    China Store Network
    4,570 stores
    Q2 FY26

    Total store count nationwide in China.

    Lower Tier Cities Footprint
    36%
    Q2 FY26

    Percentage of total store network located in lower tier cities.

    China Online Sales Growth
    50%year-over-year
    Q2 FY26

    Growth rate of online sales in China.

    China Online Sales Mix
    64%
    Q2 FY26

    Online sales as a percentage of total domestic retail sales.

    International Dealer Network
    417 locationsfrom 307 at beginning of year
    Q2 FY26

    Number of active dealer locations internationally.

    Micromobility End-User Retail Activation
    >36,000 unitsup 21% year-over-year
    Q2 FY26

    End-user retail activation for micromobility products internationally, indicating organic consumer demand.

    AI Screen Navigation Monthly Active Users
    190,000
    Q2 FY26

    Monthly active users for AI screen navigation feature.

    Brand Impressions (37 key cities)
    5.9 billion
    Q2 FY26

    Total impressions generated through multi-touchpoint approaches in key cities.

    Earth Day Campaign Exposures
    250,000
    Q2 FY26

    Exposures generated from targeted off-line community events.

    Shanghai Outdoor Exhibitions Impressions
    3.25 million
    Q2 FY26

    Impressions generated from targeted off-line community events.

    Douyin Livestreams
    57,000
    Q2 FY26

    Number of livestreams executed on Douyin.

    Douyin Short-form Videos
    90,000
    Q2 FY26

    Number of short-form video clips produced on Douyin.

    Douyin Impressions
    720 million
    Q2 FY26

    Impressions generated from Douyin content.

    Industry KPIs

    4
    MetricValueDetails
    Order book backlog32,000 unitsunits
    Average transaction priceRMB 3,010RMB
    Vehicle deliveries wholesales434,000 unitsunits
    Ev unit volumes mix segment economics4,800 unitsunits

    Product announcements

    5
    ProductTypeDetails
    N-Series electric motorcyclelaunch
    NX Marathon series electric motorcyclelaunch
    NX 170expansion
    Refreshed mid-to-high-end e-bicycleslaunch
    Female-focused product lineslaunch

    Risks & headwinds

    5
    Structural adjustment in domestic two-wheeler marketH1 FY26 and ongoing

    Premium e-bicycle segment experienced a 25% to 30% industry-wide contraction in the first half.

    Mitigation: Proactive pivot towards high-growth electric motorcycle segment; reintroducing mid-to-high-end e-bicycles.

    Ongoing cost pressure from elevated raw material pricesQ2 FY26 and ongoing

    Contributed to 2.5 ppts decrease in gross margin in China market.

    Mitigation: Ongoing components platformization and commercial cost reduction initiatives.

    Inventory clearance of international micromobility businessQ2 FY26 and Q3 FY26

    Contributed to 1.6 ppts decrease in gross margin; created short-term compression on micromobility gross margin.

    Mitigation: Active promotional clearance in Q3 to restore healthy inventory baseline by year-end.

    Foreign exchange lossesQ2 FY26

    Increased G&A expenses by RMB 31 million year-over-year, primarily due to remeasurement of foreign currency-denominated assets (accounts receivable).

    Mitigation: Partially offset by interest income at the overall earnings level.

    Broader market uncertainties and consumer sentimentOngoing

    Impacts market-wide recovery in electric bicycles.

    Mitigation: Taking proactive internal steps to structurally improve revenue and ASP in e-bike segment; amplifying online traffic generation.

    What to watch in Q3 FY26

    4

    Electric Motorcycle Growth Momentum

    Q3 FY26
    CurrentContributed ~60% of China sales volume in Q2 FY26
    TargetContinued aggressive growth, expansion into new consumer segments (female-focused products), and deeper market penetration with Windstorm and Milestone families.

    Why it matters

    Electric motorcycles are the primary growth engine offsetting headwinds in the e-bicycle segment in China.

    Moving into Q3, we'll continue aggressively into the electric motorcycle growth momentum. We're expanding into new consumer segments by launching a female-focused product lines while systematically deepen our market penetration with our Windstorm and Milestone product families.

    2 min read5 chapters

    Detailed Narrative

    01

    China Market Transformation and Electric Motorcycle Growth

    The domestic two-wheeler market is undergoing significant structural transformation due to the full enforcement of new national standards for electric bicycles and broader demand decline in top-tier cities. The premium e-bicycle segment experienced a 25-30% industry-wide contraction in the first half of the year. Niu proactively reallocated R&D and product resources, pivoting towards the high-growth electric motorcycle segment, which contributed approximately 60% of China sales volume in Q2 FY26. New models like the N-Series and NX Marathon were key drivers, with the N-Series receiving 32,000 online pre-orders on its launch day and the NX Marathon contributing 11% of domestic sales volume.

    02

    E-Bicycle Segment Re-establishment and Product Strategy

    Despite the contraction in the premium e-bicycle segment, Niu maintains a long-term commitment to this market. The company enhanced entry-level offerings with the White series and is actively reintroducing key models in the RMB 5,000 to RMB 7,000 price range in Q3. This strategy aims to re-establish technological leadership in the premium e-bicycle space, lift average selling prices (ASP), and defend margin profiles by upgrading product mix with premium features and integrating new AiOS and AI-assisted riding features.

    03

    International Business Recovery and Micromobility Transition

    Overseas sales reached 32,485 units, representing a 3.6% year-over-year growth, indicating the international business has exited its structural adjustment phase. The international electric motorcycle business maintained strong momentum, delivering 4,800 units with a 50% year-over-year increase, validating the direct-to-retailer strategy. The dealer network expanded to 417 active locations. The micromobility segment successfully completed its channel transition, with end-user retail activation exceeding 36,000 units, growing 21% year-over-year, and accelerating to 37% in June, proving the effectiveness of inventory clearance initiatives.

    04

    R&D and AI-Powered Mobility

    Technology and continuous innovation remain central to Niu's strategy, aligning with its vision to redefine mobility with AI-powered two-wheel electric vehicles. In Q2, the company integrated core AI capabilities such as AiOS, screen navigation, triple camcorder systems, AI Pets, and AI voice interaction into multiple mass production models. User data confirmed frequent usage, with screen navigation reaching approximately 190,000 monthly active users. Niu also received international recognition for its interface and user experience design, marking a significant validation of its technological leadership.

    05

    Brand, Marketing, and Channel Optimization

    Niu continued its brand-driven growth strategy, expanding its position from a niche urban brand to a broader mass premium market. This involved large-scale brand campaigns with a global celebrity ambassador, influencer content, and targeted brand visibility investments across 37 key cities, generating over 5.9 billion total impressions. On the retail front, the company focused on same-store sales growth, which surged by 24% year-over-year, and optimized its store network of 4,570 locations. Online channels delivered standout performance, growing 50% year-over-year and accounting for 64% of domestic retail sales, leveraging platforms like Douyin for extensive live streaming and video content.

    AI-generated summary of the company’s earnings call. Not investment advice.