• Niu Technologies ADR (NASDAQ:NIU) reported third-quarter FY21 sales growth of 37.1% year-on-year, to RMB 1.23 billion ($190.3 million), missing the analyst consensus of $217.3 million.
• The number of e-scooters sold increased 58.3% Y/Y to 397,079, led by a 59.9% rise in China.
• International e-scooters sales decreased 11.2% due to shipping difficulties caused by the impact of COVID-19.
• The number of franchised stores in China was 2,686 as of September 30, 2021, an increase of 320 from June 30, 2021.
• The gross margin for the quarter declined 90 basis points Y/Y to 20%.
• The operating margin was 8.4%, and operating income for the quarter rose 26.7% to RMB102.6 million ($15.9 million).
• Earnings per ADS were $0.18. The adjusted net income was RMB 102.2 million versus RMB 90.6 million last year.
• The company held RMB 1.6 billion in cash and equivalents as of September 30, 2021.
• "Our cost optimization initiatives have shown positive results since September and we expect to benefit more in the future quarters," said CEO Yan Li.
• Outlook: NIU expects Q4 revenues of RMB 840 million to RMB 910 million, representing a year-over-year increase of 25% - 35%.
• Price Action: NIU shares are trading lower by 4.49% at $23.4 in premarket on the last check Monday.