Niu Technologies Clocks 5% Revenue Growth In Q1, Notes Margin Pressure

Niu Technologies ADR NIU reported first-quarter FY22 sales growth of 5.1% year-on-year, to RMB 575.5 million ($90.78 million).
The number of e-scooters sold increased 9.4% Y/Y to 163,659, with sales in China rising by 3%.
International e-scooters sales jumped 193.7% to 14,672.
The number of franchised stores in China was 3,248 as of March 31, 2022, an increase of 140 from December 31, 2021.
The gross margin for the quarter declined 470 basis points Y/Y to 19.1%.
The operating loss for the quarter was RMB (33) million versus an operating income of RMB (0.25) million.
Earnings per ADS were $(0.06). The adjusted net loss was RMB (16.3) million versus an income of RMB (6.7) million last year.
The company held RMB 889.6 million in cash and equivalents as of March 31, 2022.
"The ongoing increase in raw materials prices, especially lithium-ion battery prices in Q1, has created extra pressure on our gross margin," said CEO Yan Li.
Outlook: NIU expects Q2 revenues of RMB 803 million - RMB 945 million, representing a year-over-year decrease of about 15% to flat.
Price Action: NIU shares are trading lower by 3.07% at $7.57 in premarket on the last check Monday.
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