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Chinese electric scooter company Niu shakes off pandemic slump and predicts strong sales ahead


This Niu scooter store in Beijing’s Chaoyang district is open daily from about 8 a.m. to 8 p.m.

Evelyn Cheng | CNBC

BEIJING — Almost three years since Chinese electric scooter start-up Niu Technologies listed in the U.S., the company has not only turned profitable but has also shaken off losses from the coronavirus pandemic.

Niu said Monday that second-quarter revenue in China and abroad rose by 46.5% from a year ago to 944.7 million yuan ($146 million), and forecast growth would retain roughly the same pace — or better — in the third quarter.

“We’re seeing the China market really [starting to] pick up in terms of electric scooter consumption,” CEO Yan Li told CNBC’s Martin Soong on “Squawk Box Asia” on Tuesday. “And then about halfway into the quarter we see our sales have been [picking] up significantly.”

The company is also pressing on with a rapid expansion plan. Niu expects to open more than 300 stores in China in the third quarter, after adding 450 stores in the second.

Profits on the rise

International shipping challenges

Overseas, Niu said it sold 34.8% more scooters in the second quarter than the same period a year ago.

But the 6,980 units sold abroad was still a fraction of the 246,018 scooters that Niu said it sold in China, a market where sales also grew far faster, at 58.8% year-on-year.

Due to Covid disruptions in global shipping channels, Niu had a backlog of almost 4,000 units it couldn’t ship out in the second quarter, Li said in a call with analysts Monday. That’s according to a StreetAccount transcript.

He noted that importers in Europe and the U.S. are waiting for a decline in shipping costs, which have surged from about $150 per scooter to $450 each.

Read more about electric vehicles from CNBC Pro

Wide-ranging growth outlook



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