NIU Technologies Posts Weak Q1 Revenue and Losses
The stock in Niu Technologies (Nasdaq: NIU) rose 2% to $9.25 per American depositary share by midday Monday after announcing weak e-scooter sales and sustained losses for the first quarter.
The smart urban mobility solutions provider said in a statement today that revenues in the three months through March plummeted to $32.9 million, down 34% year-over-year. It suffered a net loss of $3.72 million, or 5 cents per share compared to net income of $1.78 million.
Niu attributed the revenue decrease to falling e-scooters sales of 40,160, representing a decrease of 39% year-over-year. Due to the outbreak of Covid-19, Niu was forced to implement a series of measures including temporarily closing its manufacturing facility and cutting and postponing planned capital expenditure. Its retail sales network expansion has also been temporarily suspended.
"Many aspects of our operations were harmed as a result of the ongoing pandemic of the novel coronavirus," Yan Li, the chief executive officer of the Niu, said in a statement today.
He added, "Due to the strict measures in response to the outbreak, we had to reduce work resumption rate in February and March of 2020. We are pleased to see demand is recovering in China and our China sales are expected to return to healthy growth in the second quarter. Our operations in the international markets continued to be affected."
However, results were mixed today on the company providing a positive future outlook. In the second quarter, Niu expects to generate revenues in the range of $82.28 million and 92.13 million, representing a year-over-year increase of 10% to 23%.
Also, investors were encouraged today on the biotech company Moderna, Inc. (Nasdaq: MRNA) reporting positive early-stage data for its Covid-19 vaccine candidate, as well as on positive comments on the future economic rebound from Jerome Powell, the chairman of the Federal Reserve on Sunday. The news helped rally stocks across the board in the U.S. on Monday.
Headquartered in Beijing, Niu makes and sells "high-performance" electric bicycles and motorcycles.
The company's overseas sales network expands to 33 distributors in 42 countries. According to Niu, it generated 71% of its revenue from e-scooters in China and 29% from global markets.
Going forward, Niu will be a stock to watch, as shares are now up more than 5% year-to-date. The next quarter should show investors just how far this scooter stock will go.