Key Takeaways:
Niu Technologies reported Q1 revenue of RMB 910 million, up 33% from a year earlier, as electric motorcycle sales in China tripled.
"Our primary mandate for the remainder of 2026 is to accelerate unit sales volume and aggressively reduce the inventory backlog back to a lean and healthy baseline," Chief Executive Officer Yan Li said on the earnings call.
The Beijing-based company sold 262,000 units in the quarter, a 29% increase, with 248,000 sold in China and 14,000 overseas. China scooter revenue reached RMB 774 million, up 42%, as average selling prices rose 5% to RMB 3,120. Gross margin edged up 0.1 percentage point to 17.4%, while operating expenses surged 60% to RMB 264 million after the company front-loaded marketing spending. The net loss widened to RMB 94 million from RMB 39 million a year earlier.
The results mark a strategic pivot as Niu shifts from a premium Tier 1 city brand into lower-tier Chinese cities, where electric motorcycle adoption is accelerating. The company guided for Q2 revenue of RMB 1.57 billion to RMB 1.82 billion, representing 25% to 45% year-over-year growth.
The electric motorcycle segment was the standout performer, with sales surging threefold year over year, driven by the Windstorm product line and expansion into Tier 2 and Tier 3 cities. The category now accounts for a growing share of Niu's domestic mix, offsetting a contraction in the electric bicycle segment as China's new national standard took effect in December.
Overseas, the picture was more mixed. International electric motorcycle shipments rose 29% to more than 2,000 units, and the dealer network expanded from 307 to 360 locations. But micro-mobility sales fell 37% year over year, a decline management described as a planned result of channel restructuring in Germany and the US. Niu is holding elevated inventory in those markets and plans aggressive price promotions through the rest of the year to clear stock.
The company's online channel continued to gain traction, with digital sales rising 53% to represent 46% of domestic retail sales. Niu also launched several flagship products during the quarter, including the NXT2 series — the industry's first AI-powered e-bicycle — and the NX Marathon, which generated more than RMB 91 million in revenue within five hours of its launch.
Selling and marketing expenses more than quadrupled year over year to RMB 180 million, accounting for 19.8% of revenue, as Niu executed global ambassador campaigns and its 2026 technology launch event. The company said these were front-loaded investments and that marketing spending as a share of revenue would normalize in subsequent quarters.
Niu ended the quarter with RMB 1.4 billion in cash and short-term investments, unchanged from year-end, and generated RMB 131 million in operating cash flow. Capital expenditures rose to RMB 70 million from RMB 24 million a year earlier, driven by new store openings and mold costs.
The widening net loss reflects the cost of Niu's transformation. The guidance raise suggests management expects the domestic electric motorcycle momentum and a recovering e-bike market to drive stronger second-half results. Investors will watch the 618 shopping festival in June as the first major test of Niu's expanded product lineup.
This article is for informational purposes only and does not constitute investment advice.
