Niu Technologies Reports Strong Q3 Growth Amid Challenges
Niu Technologies reported strong Q3 growth, with a 49.1% increase in sales volume, driven by the Chinese market. Revenue rose 65% to RMB 1.69 billion, and gross margin expanded to 21.8%. The FX Windstorm model launch was successful, selling 14,000 units quickly. Despite domestic success, overseas sales declined due to micromobility challenges. The company expanded its store network and remains optimistic about its long-term strategy, despite Q4 revenue uncertainties.
Niu Tech ((NIU)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Niu Technologies painted a picture of robust growth in the Chinese market and successful product innovations, despite ongoing challenges in the overseas and micromobility sectors. The company expressed confidence in its long-term strategy, even as it navigates short-term uncertainties.
Strong Sales Volume Growth in China
Niu Technologies reported a significant increase in sales volume for Q3 2025, achieving a total of 465,000 units sold, which marks a 49.1% year-over-year increase. The majority of this growth was driven by the Chinese market, where sales surged to 451,000 units, reflecting a 74% increase from the previous year.
Revenue and Gross Margin Expansion
The company experienced a substantial rise in total revenue, which grew by 65% year-over-year to RMB 1.69 billion. Additionally, Niu Technologies saw an expansion in its gross margin, which increased to 21.8%, up by 8.0 percentage points compared to the prior year.
Successful Product Launches
One of the highlights of the quarter was the launch of the FX Windstorm model, which sold 14,000 units within the first five hours, generating RMB 68 million in GMV. This model achieved the top rank on several e-commerce platforms, underscoring the success of Niu’s product innovation strategy.
Improved Net Profit and Operational Efficiency
Niu Technologies reported a net profit of RMB 81.69 million for Q3 2025, continuing the profitability momentum from the previous quarter. This improvement was attributed to enhanced operational efficiency, which played a crucial role in boosting the company’s bottom line.
Expansion in Lower-Tier Cities and Store Network
The company expanded its store network by adding 238 net new stores during the quarter, with nearly half of these in lower-tier cities. This strategic expansion supports deeper market penetration and aligns with Niu’s growth objectives.
Decline in Overseas Sales Volume
Despite strong domestic performance, Niu Technologies faced challenges overseas, with sales volume declining to 14,000 units. This decrease was primarily due to weaknesses in the micromobility sector, which affected the company’s international sales.
Challenges in Micromobility Market
The micromobility market posed significant challenges, with a 77% year-over-year decline in volume. This downturn was attributed to market headwinds in the U.S., Europe, and Asia, impacting Niu’s overall performance in this segment.
Q4 Revenue Guidance Uncertainty
Looking ahead, Niu Technologies provided guidance for Q4, with expected revenue ranging from RMB 737 million to RMB 901 million. This represents a year-over-year change of minus 10% to plus 10%, reflecting uncertainties due to regulatory changes in China.
In summary, Niu Technologies’ earnings call highlighted strong growth in the Chinese market and successful product innovations, despite challenges in overseas markets and the micromobility sector. The company remains optimistic about its long-term strategy and anticipates a reacceleration of growth in Q1 2026 as new products compliant with regulatory standards are introduced.
