Yan Li, CEO of NIU Applied sciences speaks for the interval of Day 2 of CNBC East Tech West at LN Backyard Lodge Nansha Guangzhou on November 18, 2020 in Nansha, Guangzhou, China.
Zhong Zhi | Getty Photos | CNBC World
GUANGZHOU, China — Shares of Chinese language electric scooter agency Niu Applied sciences surged unbiased about 16% on Thursday after the firm reported a leap in gross sales of its merchandise.
Within the fourth quarter of 2020, Niu purchased 149,705 e-scooters, rising 40.9% year-on-year.
In China, Niu purchased 137,586 e-scooters, accounting for 91% of whole gross sales. China gross sales jumped 35% year-on-year.
Niu purchased 12,119 e-scooters in global markets within the fourth quarter, up 179.6% when compared with the identical interval in 2019.
“Seeing pretty a little bit of of question for our unusual merchandise and that drives the persevered affirm in China,” Yan Li, CEO of Niu Applied sciences, told CNBC by phone.
“For the worldwide market, we’re in point of fact seeing despite the Covid-19 express, we’re in point of fact seeing a tremendous rebound as increasingly folks … in point of fact geared for … particular person mobility alternate solutions. We’re seeing increasing orders from Europe,” he stated.
Closing year, Niu pushed aggressively to start unusual stores in Europe to lift distribution. In China, it launched a brand unusual e-bicycle called the MQi2 and an entry level e-bike called the G0.
Niu stated the whole objects of G0 purchased for the interval of the fourth quarter represents roughly 21.5% of whole China market volume, which would perchance perchance well well hurt its financials for the December quarter.
“The G0 mannequin has lower gross sales label and putrid margin when compared with the existing fashions, and excessive percentage of gross sales volume from this mannequin has opposed impacts on the blended revenues per scooter and general putrid margin for the fourth quarter,” Niu stated in a commentary.