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Niu Technologies, a Chinese electric scooter start-up that went public in the United States over three years ago, has not only proven profitable but has also recovered losses from the coronavirus outbreak. Niu announced Monday that second-quarter sales in China and abroad increased 46.5 percent year over year to 944.7 million yuan ($146 million), with growth expected to continue at a similar — or faster — pace in the third quarter.
“We’re seeing the China market really starting to pick up in terms of electric scooter consumption,” CEO Yan Li stated “And then about halfway into the quarter we see our sales have been picking up significantly.”
The company is likewise pursuing an aggressive expansion strategy. Niu anticipates opening more than 300 stores in China in the third quarter, following the addition of 450 locations in the second. The firm is apparently implementing a speedy expansion strategy. Niu forecasts establishing more than 300 stores in China in the third quarter, following the addition of 450 locations in the second.
Niu shares finished 4.6 percent higher overnight on the earnings announcement. The stock is down nearly 20% year to date. However, it has increased by 147% after becoming public on the Nasdaq in October 2018 and now has a market valuation of $1.7 billion. However, the 6,980 scooters sold outside of China were a small fraction of the 246,018 scooters Niu said it sold in China, a market where sales climbed at a much quicker rate of 58.8% year over year.
Niu had a backlog of approximately 4,000 units it couldn’t ship out in the second quarter due to Covid problems in global shipping routes, Li said in a teleconference with analysts Monday. According to a Street Account transcript, this is the case.