Shares of Niu Technologies (Nasdaq: NIU) surged 13% intraday Thursday on the report of strong e-scooter sales in the fourth quarter.
The Beijing-based provider of smart urban mobility solutions said in a statement today that it sold 149,705 e-scooters in the fourth quarter, up 41% year-over-year. Most of its sales (137,586) came from the Chinese market, while the rest occurred globally.
Niu attributed the growth in China to its new products including the G0, MQi2, and MQiS, as well as its retail network expansion.
“The total units of MQi2 and MQiS sold during the fourth quarter represents approximately 21.2% of [the] total [Chinese] market volume,” Niu said in a statement today.
Further, “The G0 model has lower sales [prices] and gross margin compared with the existing models, and high proportion of sales volume from this model has negative impacts on the blended revenues per scooter and overall gross margin for the fourth quarter.”
In total for 2020, Niu’s e-scooter sales topped around 600,892, a 43% jump from the previous year. Of those sales, 572,154 came from China.
Today’s news helped send Niu’s stock to a six-week high of $32.80 per American depositary share. Niu’s stock had more than tripled in 2020, though it slowed down toward the year-end.
Last month, Donald Trump signed a bill into law that may lead to the delisting of Chinese companies from American exchanges if they refuse to comply with auditing standards.
In the three months through September 2020, Niu posted revenues of $131.74, up 37% year-over-year. Its earnings increased to $11.78 million from $9.29 million in the same period of the preceding year.
In the fourth quarter, Niu expects its revenues to come in the range of 565 million yuan ($87.21 million) to 615 million yuan, representing year-over-year growth of between 5% and 15%.
The company has yet to announce when it will post its fourth-quarter financials.