Niu Technologies (NIU) Q1 2023 Earnings Call Transcript

Niu Technologies (NASDAQ:NIU) Q1 2023 Earnings Conference Call May 22, 2023 8:00 AM ET

Company Participants

Wendy Zhao - Investor Relations Manager

Yan Li - Chief Executive Officer

Fion Zhou - Chief Financial Officer

Conference Call Participants

Yating Chen - CICC

Jing Chang - CICC

Scarlett Ge - Credit Suisse

Operator

Good day and thank you for standing by. Welcome to the Niu Technologies First Quarter 2023 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today Wendy Zhao, IR Manager. Please go ahead.

Wendy Zhao

Thank you, Operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the first quarter of 2023. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from company's IR website as well, 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 US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve 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 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. The press release contains the definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Fion Zhou.

Now, let me turn the call over to Yan.

Yan Li

Thank you, everyone, for joining us on the call today. In Q1 2023 our total sales volume was 94,407 units representing a year-over-year decrease of 42%. Specifically, sales volume in the China market dropped by 45% year-over- year to 81,518 units and the sales in the overseas market dropped by 12% to 12,889 units. Total revenue in Q1 was RMB417 million, a decrease of 27.5% year-over-year. Now the decrease in sales volume in the China market is primarily due to two factors.