Niu Technologies (NIU) CEO Yan Li On Q1 2022 Results - Earnings Call Transcript

Niu Technologies (NASDAQ:NIU) Q1 2022 Earnings Conference Call May 23, 2022 8:00 AM ET

Company Participants

Wendy Zhao - Investor Relations Manager

Yan Li - Chairman, Chief Executive Officer & Chief Operating Officer

Fion Zhou - Chief Financial Officer

Conference Call Participants

Operator

Good day and thank you for standing by. Welcome to Niu Technologies First Quarter 2022 Earnings Release Conference Call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions].

And now I'll like to hand the conference over to Ms. Wendy Zhao from Niu Technologies IR team. 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 First Quarter 2022. Earnings press release, corporate presentation and financial spreadsheets have been posted on Niu’s Investor Relations website. This call is being webcast from company's IR website and a replay of the call will be available soon.

Please note today's discussion will contain forward-looking statements on 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 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 the definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results.

On a call with me today are CEO, Dr. Yan Li; and CFO, Ms. Fion Zhou. Now let me turn the call over to Yan.

Yan Li

All right, thank you everyone for joining us on the call today. In Q1 2022, we witnessed the growth in both the China and overseas markets. Total sales volume was up 9.4% year over year. The China market has a volatile quarter mainly caused by the COVID outbreak and a city lockdown that lasted over a month in Shanghai and in Changjiang Delta region. We had a strong opening in China with sales volume growth of 91.6% year over year in January and February. However, in March our China sales performance was adversely affected by the COVID outbreak due to the retail lock downs as well as the manufacturing and the logistic disruption for nearly two weeks. And we experienced 24.1% decline year over year in March. Despite the decline in March, we still had a moderate positive growth of 3.0% year over year in China market in Q1 due to the strong performance in the first two months.