2023-05-22 10:01:38 ET
Niu Technologies ( NASDAQ: NIU ) shares scooted higher on Monday despite still-waning scooter sales.
The Chinese transportation company notched a net loss of RMB 60.3M ($8.54M) in Q1, more than double the loss in the prior year quarter. Meanwhile, revenues slipped to RMB 417.2M ($59.3M), a decrease of 27.5% year over year. While gross margins expanded by 260 basis points from Q1 2022, total scooters sold slumped 42.3% year over year to 94,407 led by declines in the domestic Chinese market.
CEO Dr. Yan Li highlighted new product rollouts as catalysts to kickstarting sales once again. In particular, Li expects the diverse product range to catch on in international markets where the company is seeking to expand.
Despite the inauspicious sales trends in the first quarter, executives expect a sharp sequential improvement. Management expects revenues for Q2 to fall in a range between RMB 828M ($117.8M) and RMB 952M ($135.5M) for the full year ahead, representing a flat to 15% jump from 2022.
Shares of the Beijing-based mobility company moved about 6% higher shortly after Monday’s market open.
More on Niu Technologies:
Niu Zapped By 'Perfect Storm' Of Factors In Fourth Quarter
Niu Technologies Momentum Grade and Underlying Metrics
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Niu Technologies eyes Q2 rebound as scooter sales slump to start 2023