Chinese electric scooter company Niu shakes off pandemic slump and predicts strong sales ahead

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Niu said Monday that revenue grew by 46.5% in the second quarter, and forecast it would grow at about the same pace — or better — in the third quarter.

The company is also pressing on with a rapid expansion plan. Niu expects to open more than 300 stores in China in the third quarter, after adding 450 stores in the second.Niu said Monday that with growth of 53.4% in adjusted net income in the second quarter, the company has made 110.6 million yuan in the first half of this year.

That's up from 49.1 million yuan in the same period last year — during the height of the pandemic in China — and more than the 68.7 million yuan reported for the period in 2019.Niu shares closed 4.6% higher overnight after the earnings release. The stock is down about 20% year-to-date. But it has gained 147%International shipping challenges

Overseas, Niu said it sold 34.8% more scooters in the second quarter than the same period a year ago. But the 6,980 units sold abroad was still a fraction of the 246,018 scooters that Niu said it sold in China, a market where sales also grew far faster, at 58.8% year-on-year., Niu had a backlog of almost 4,000 units it couldn't ship out in the second quarter, Li said in a call with analysts Monday. That's according to a StreetAccount transcript.

He noted that importers in Europe and the U.S. are waiting for a decline in shipping costs, which have surged from about $150 per scooter to $450 each.

 

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