Niu Technologies reported total sales volume of 537,457 units for the third quarter of 2026, marking a 15.4% increase from the 465,873 units sold in the same period last year.

The company’s performance was bolstered by robust growth in both domestic and international markets. In China, sales volume rose 9% year-over-year to 490,406 units, while international markets saw a significant surge to 47,051 units from 14,418 units in the third quarter of 2025.

Regional Performance Breakdown

The following table details the sales volume distribution across key markets for the quarter and the year-to-date period:

Product and Technology Highlights

In the Chinese market, the N, M, and F series remained the best-selling product lines, catering to diverse riding needs. The company highlighted the recent recognition of its NIU AIOS system, which received the Red Dot Winner distinction in the "Interface & User Experience Design" category of the Red Dot Award: Brands & Communication Design 2026. This system combines AI capabilities with customizable display features and natural voice control.

For international operations, Niu continued to refine its product portfolio and tailor strategies to local mobility needs, aiming for long-term development in these regions.

What the Numbers Show

A close examination of the regional data reveals a divergence in growth trajectories between the two primary markets. While the China market contributed the bulk of volume with a moderate 9% YoY increase, the international segment expanded more than threefold (from 14,418 to 47,051 units). Although international sales still represent a small fraction of the total volume (approximately 8.7% of Q3FY26 total sales), their rapid expansion rate suggests that global market penetration is becoming an increasingly significant driver of overall volume growth compared to the mature domestic base.

Note: The disclosed sales volume is based on deliveries from manufacturing facilities and may vary slightly from financial accounting measures.

Niu Technologies reported a net loss of RMB 102.2 million (US$ 0.19 per ADS) for the second quarter of 2026, reversing a net income position from the prior year period, as rising supply chain costs and product mix shifts compressed gross margins to 16.0%. Despite the profitability hit, the Chinese electric scooter maker achieved revenue growth of 14.7% year-over-year to RMB 1,440.4 million (US$ 212.3 million), driven by a robust 24.2% increase in e-scooter sales volume. The company’s shares plunged 14.23% to US$ 2.105 following the results, reflecting investor concern over the widening loss and margin contraction despite top-line growth.

Q2 2026 Financial Highlights

The financial performance was characterized by strong volume growth offset by declining average selling prices and higher operational expenses. Adjusted net loss stood at RMB 98.2 million, compared to adjusted net income of RMB 13.7 million in the same quarter last year.

Revenue Breakdown and Operational Metrics

Total e-scooter sales reached 434,687 units, up 24.2% from the previous year. China remained the dominant market, contributing RMB 1,210.6 million (91.9% of total e-scooter revenues), with sales volume climbing 26.2% to 402,202 units. This growth was partially offset by a 9.2% decline in revenues per e-scooter in China due to competitive pricing pressures.

International e-scooter revenues grew modestly by 3.0% to RMB 106.3 million, supported by a 3.6% increase in unit sales to 32,485. Accessories, spare parts, and services revenues surged 29.0% to RMB 123.5 million, driven by the expansion of the Niu App ecosystem and parts sales.

Operating Performance and Cost Structure

Cost of revenues increased 20.6% to RMB 1,210.0 million, reflecting higher upstream supply chain costs and lower gross margins on kick-scooters in international markets. Operating expenses rose sharply by 28.6% to RMB 340.6 million, representing 23.6% of revenues compared to 21.1% in Q2 2025. This increase was attributed to front-loaded branding campaigns, expanded domestic store openings, and investments in AI-related technology modules. General and administrative expenses jumped 165.2% to RMB 50.5 million, largely due to RMB 44.2 million in foreign exchange losses versus gains of RMB 25.3 million in the prior year.

What the Numbers Show

The divergence between volume growth and profitability highlights significant structural pressure on Niu Technologies’ business model. While the company successfully shifted its mix toward electric motorcycles—which accounted for approximately 60% of China sales volume—the premium e-bicycle segment faced headwinds from regulatory changes and weaker demand in top-tier cities. CEO Yan Li noted that electric motorcycles helped offset industrywide weakness, but the reliance on lower-margin products and aggressive spending on AI integration (including Niu AI OS and triple-camera systems) has temporarily eroded earnings. The company ended the quarter with RMB 1.48 billion in cash, term deposits, and short-term investments, providing a buffer for its ongoing inventory normalization efforts.

Business Outlook

For the third quarter of 2026, Niu Technologies forecasts revenues between RMB 1,863 million and RMB 2,033 million, representing a year-over-year increase of 10% to 20%. Management indicated that online channels, which grew 50% year-over-year to account for 64% of domestic retail sales, will continue to be a key growth driver. Internationally, overseas electric motorcycle sales rose 50% year-over-year, with an expanded direct-to-retailer network in Europe focusing on higher-end 125cc-plus models. Li stated that the company expects overseas inventory levels to return to healthier norms by year-end.