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Chinese e-scooter agency Niu Technologies jumps about 16% on gross sales bump

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Yan Li, CEO of NIU Technologies speaks throughout Day 2 of CNBC East Tech West at LN Garden Hotel Nansha Guangzhou on November 18, 2020 in Nansha, Guangzhou, China.

Zhong Zhi | Getty Images | CNBC International

GUANGZHOU, China — Shares of Chinese electrical scooter agency Niu Technologies surged almost 16% on Thursday after the corporate reported a leap in gross sales of its merchandise.

In the fourth quarter of 2020, Niu offered 149,705 e-scooters, rising 40.9% year-on-year.

In China, Niu offered 137,586 e-scooters, accounting for 91% of whole gross sales. China gross sales jumped 35% year-on-year.

Niu offered 12,119 e-scooters in worldwide markets within the fourth quarter, up 179.6% in contrast with the identical interval in 2019.

“Seeing quite a bit of demand for our new products and that drives the continued growth in China,” Yan Li, CEO of Niu Technologies, advised CNBC by telephone.

“For the international market, we are actually seeing despite the Covid-19 situation, we are actually seeing a nice rebound as more and more people … really geared for … individual mobility solutions. We are seeing increasing orders from Europe,” he stated.

Last 12 months, Niu pushed aggressively to open new shops in Europe to develop distribution. In China, it launched a brand new e-bicycle referred to as the MQi2 and an entry degree e-bike referred to as the G0.

Niu stated the whole items of G0 offered in the course of the fourth quarter represents roughly 21.5% of whole China market quantity, which may damage its financials for the December quarter.

“The G0 model has lower sales price and gross margin compared with the existing models, and high proportion of sales volume from this model has negative impacts on the blended revenues per scooter and overall gross margin for the fourth quarter,” Niu stated in a press release.

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