Niu Tech Q2 Sales Volume Up 24%; Profitability Pressure Persists Despite Scale Recovery

On August 10, Niu Tech released its financial report for the second quarter of 2026.

During the reporting period, the company achieved operating revenue of RMB 1.4404 billion, a year-on-year increase of 14.7%; total vehicle sales reached 434,687 units, up 24.2% year-on-year. Among these, sales in the Chinese market totaled 402,202 units, rising 26.2% year-on-year and continuing to contribute the vast majority of the sales volume growth.

In terms of sales volume, Niu Tech has maintained the recovery trend seen since last year. In the first half of this year, the company cumulatively sold 696,311 units, higher than the 553,403 units sold during the same period last year.

However, the growth in sales volume did not fully translate into synchronized improvements in revenue and profit. While the sales volume growth rate reached 24.2% in the second quarter, the revenue growth rate was only 14.7%, with the average revenue per vehicle dropping to RMB 3,029, a year-on-year decline of 8.6%.

This is related to changes in Niu's current product mix.

The company disclosed during its earnings call that electric motorcycles accounted for approximately 60% of sales in the Chinese market in the second quarter. Management stated that compared to the mid-to-high-end electric bicycles, which previously held a higher proportion for the company, electric motorcycles have relatively lower average selling prices and gross margins.

With the comprehensive implementation of the new national standards for electric bicycles, Niu is also adjusting its product structure. Management noted at the earnings call that weakening demand in higher-tier cities has also had a certain impact on the company's previously dominant mid-to-high-end electric bicycle business.

This change has already been reflected in profitability. In the second quarter, Niu Tech's gross margin was 16.0%, lower than the 20.1% in the same period last year; gross profit was approximately RMB 230 million, also lower than the RMB 252 million in the same period last year. The company explained that the decline in gross margin was influenced by factors such as changes in the domestic product mix, rising costs, and the clearance of overseas inventory.

Meanwhile, Niu's expense levels remain high. Sales and marketing expenses in the second quarter were approximately RMB 239 million, an 18% year-on-year increase; R&D expenses were RMB 51.5 million, up 17.8% year-on-year.

Ultimately, the company reported a Net Loss of RMB 102 million for the quarter, compared to a net profit of RMB 5.88 million in the same period last year. In the first half of this year, Niu accumulated a Net Loss of approximately RMB 196 million, with the scale of the loss expanding compared to the same period last year.

Therefore, for Niu at this stage, whether sales volume can continue to grow is no longer the only issue; more importantly, it is the structure of that growth.

After experiencing two consecutive years of declining sales in 2022 and 2023, Niu resumed growth in 2024, with full-year 2025 sales further increasing to 1.192 million units. However, as the proportion of products in lower price ranges increased, revenue per vehicle and gross margins came under pressure, indicating a gap remains between scale recovery and profitability improvement.

Changes on the channel side are also quite evident. As of June 30, 2026, the number of Niu's domestic stores reached 4,570, showing little increase from the end of the first quarter. Compared to continuing rapid store expansion, the company currently emphasizes the efficiency of existing channels.

Management disclosed that same-store sales grew 24% year-on-year in the second quarter, and online sales volume increased 50% year-on-year, with online channels becoming an important component of domestic sales.

Overseas business remains in an adjustment phase. Overseas sales volume in the second quarter increased 3.6% year-on-year, but due to weaker performance in the first quarter, cumulative overseas sales in the first half remained below the same period last year. The digestion of overseas scooter inventory continues to affect gross margin levels, and in the short term, the overseas business's contribution to overall performance remains limited.

For the third quarter, Niu expects operating revenue to be between RMB 1.863 billion and RMB 2.033 billion, representing a year-on-year growth of 10% to 20%. It is worth noting that the company's previous revenue guidance for the second quarter was RMB 1.570 billion to RMB 1.821 billion, with the final actual revenue falling below the lower end of the guidance. Therefore, whether the new growth expectations for the third quarter can be met will depend on whether domestic sales growth can be sustained, and whether the product structure and gross margin can improve.

Judging from current data, Niu's sales recovery is relatively clear, but operational quality is still undergoing adjustment. Going forward, rather than simply observing sales volume growth rates, metrics such as revenue per vehicle, gross margin, and the narrowing of losses may better reflect whether this round of growth is truly translating into operational improvement.