Niu Technologies (NIU) Q3 2022 Earnings Call Transcript

Niu Technologies (NASDAQ:NIU) Q3 2022 Earnings Conference Call November 21, 2022 8:00 AM ET

Company Participants

Wendy Zhao - Senior IR Manager

Yan Li - Chief Executive Officer

Fion Zhou - Chief Financial Officer

Conference Call Participants

Jing Chang - CICC

Operator

Good day, and thank you for standing by. Welcome to Niu Technologies Third Quarter 2022 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 first speaker today, Ms. Wendy Zhao, Senior IR Manager. Thank you. Please go ahead.

Wendy Zhao

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies results for the third quarter of 2022. The earnings press release, corporate presentation and financial spreadsheets have been posted on our – at Investor Relations website. This call is being webcast from the 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 U.S. 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 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. The press release contains a 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, Wendy. And thanks, everyone, for joining us on the call today. In Q3 2022, our business faced challenges from risk from rising raw material prices, market demand fluctuations and aftermath of the COVID resurgence in China. All those factors brought serious disruptions to our operations.

During this quarter, we delivered a mixed result in China and international markets. Total sales volume was down by 19.2% year-over-year. Total sales volume in the international market reached nearly 58,000 units attributed to the growth in the kick-scooter category, bringing the biggest year-over-year dip [ph] in the sales in the new overseas market. In China market, we experienced a decrease in sales. Sales volume in China market was 263,000 units, down by 32.9% year-over-year.