Niu Technologies

Good day and thank you for standing by. Welcome to the new technology's second quarter of 2021 earnings release conference call. At this time, all participants are in listen-only mode. Now for the speaker's presentation, there will be a question-and-answer session. And to ask a question during the session, you need to press star and the number one on your telephone. And please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your first speaker for today, Mr. Jason Yang. Thank you. Please go ahead, sir.

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss new technologies results for the second quarter 2021. The earnings press release, corporate presentation, and financial spreadsheets have been posted on news investor relations website. This call is being webcast from companies on our website, and the replay of the call will be available soon. Please note today's discussion will contain forelooking statements made under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forelooking statements involve risks, uncertainties, assumptions, and other factors. The company actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public findings with the Securities and Exchange Commission. The company does not assume any obligation to update any forelooking statement, except as required by law. Our earnings press release and this call include discussions of certain non-GAF financial matters. The press release contains a definition of non-GAF financial matters and a reconciliation of GAF to non-GAF financial results. On the call with me today are our CEO, Dr. Yan Li, and the CFO, Mr. Hadi Zhang. Now let me turn the call to over Yan.

Thanks Jason and thanks everyone for joining us on the call today. So in the second quarter, we'll continue to see a strong growth in the China market as we continued our new product rollout and the retail expansions. We also achieved decent growth in the international market despite the ongoing challenges of COVID-19 and the global logistics. Our total sales volume reached nearly 253,000 units, an increase of 58% year-over-year. Sales in China reached 246,000 units, an increase of 59% year-over-year, while the volume in the international market reached nearly 7,000 units, a 35% increase year-over-year. We are attributing our Q2 growth to the three key strategic executions. our targeted retail expansions, the release of new products that appear to a wider customer demographics, and our targeted marketing campaigns and user-centric activities. Taking where we left off in Q1, in the second quarter of this year, we added another 450 new branded stores across China, reaching a total of 2,366 stores by June 30th. and also setting a record for the most stores we have ever opened in a single quarter. This nearly 2,400 stores will serve as a strong base to drive sales growth in Q3. For the international market, despite the challenges of COVID-19, we continue to add 26 flagship and premium stores, with our total flagship and premium stores number reaching 149, in addition to our 1,000 plus dealers. Now, as we mentioned in our last quarterly update, we held our global product launch in early April, where we introduced a large assortment of China international vehicles. We're happy to report that most of those products are now in the market or about to ship in the coming weeks. We are very excited about the speed that we can take products from concept to the market, giving us more agility to meet the demands of urban mobility market, both in China and abroad. One of the key products from April event is MQi2S. We began the sales of our M2S just a few weeks ago in late July. The new M2S is an upgrade of M2, the flagship product under the new China national standard for electric bicycles. The M2S is equipped with our latest smart IoT technologies, a color display with navigation that mirrors your mobile phone, and the OKGO system with distance sensing and keyless ignitions, and also our latest battery management system, New Energy 7.0, which increases the drive range. We launched the M2S with a starting price of RMB 5,600 up to 8,000 RMB. The market response has been great, especially in the top tier cities where the M2S is viewed as the most high-end electric bicycle product in the market. Now shifting our discussion to our huge popular Gowa series, the all-new Gowa S and the Gowa C series have allowed us to expand our offerings for the mid-tier product categories and helped us to quickly tap into an even larger total addressable market in China. The Gowa S series carry a more masculine design style and feature of new eagle eye headlights, which has been a hit with our new target demographics. As we mentioned in our last earning call, the Global S0 set the JD.com pre-sales record for urban mobility product and had a significant impact on our sales volume growth in Q2, accounting for 24% of our total sales volume in the quarter ending June 30th. The Global F2 has been a very popular product. Despite being launched in late May, the F2 accounts for 6% of our total sales volume in Q2. And we're also about to launch the Gova F4 electric motorcycle product in the next few days, priced from RMB $4,500 to $6,700. Now, one of the other products coming out of the April global launch was the Gova C0. The C0 was especially designed for female customers with multiple macaron dessert flavor, color choices, and a wide variety of accessories, taking into account the actual needs of women's daily commute. from appearance and configurations to performance. The C-Zero is equipped with our SkyEye hardware, allowing the C-Zero to be connected to our new app, just like our NMU series vehicles. The C-Zero has two versions, differentiated primarily by the riding range, a 50-kilometer standard range and 70-kilometer extended range options, affordably priced at RMB 3,400 and 3,800 RMB. We also upgrade our Goa G3 vehicle in order to better meet the riding habit of users in China's second and third tier market. The all-new G3 has been seeing a significant upgrade to performance thanks to the update we made on the hot motor, the controllers, as well as the low-resistance tires. The G3 now can get a 100-kilometer-plus of driving range on a single charge. Now, prior to those changes, the G3 accounted only for 5% of our total sales volume in Q2, but since our recent product update in July, the all-new G3 sales has quickly climbed to 16% of our total volume. The G3 is priced at RMB 3,700 to 4,000 RMB. We're also quite excited about our KQi3 kick scooters that were announced back in April. Just a few weeks ago, On July 13th, we launched our European and United States pre-sales for KQi3 on Indiegogo, an e-commerce platform. The KQi3 is our first product of more to come in the micromobility space, trying to tackle the last mile commute. Compared to the competition of the same $700 price point, the KQi3 offers a better performance, a more stable ride, and more color options. The KQI3 campaign on Indiegogo was fully funded in under five minutes and has raised over US dollar one million plus in sales in little over three weeks with the support of more than 1,800 backers. As of today, the pre-sales volume for KQI3 has exceeded 2,000 units plus and the delivery will start in Q3. Additionally, the wholesale orders for the end-of-year retail holiday sales in the United States and Europe are already being produced too. Now shifting gears a bit, the April Global Prada launch helped us to kick off a new cycle of domestic and international communications. The launch event alone garnered more than 1,000 publications across hundreds of domestic and international media outlets, firmly establishing our position as a global market leader in urban mobility. Beyond traditional media, our team continued to accelerate our growth and engagement on social media platforms. In the second quarter of Douyin and Kaishou, channels have attracted more than 54 million views, an increase of over 400% year-over-year. We believe capitalizing on those channels not only broadened our exposures, but more importantly, it's being paid off in sales. Now, I also want to share some very exciting news. we are very proud to announce that new scooter and moped are responsible for powering 10 billion kilometers of traveling globally. In just a few short weeks, we'll cross the 10 billion kilometer threshold, and we believe it is the important moment not just for new, but for the entire two-wheeled and the micro-mobility industry. This will be the first 10 billion kilometer ever recorded in the two-wheeler industry history. The 10-billion-kilometer milestone doesn't simply prove that each day more people choose new to make their daily commute, but it also shows more and more customers are pushing the boundaries of how and why they ride new. The milestone shows the aspiration of our new fans joining us to redefine urban mobility and make life better. It represents the strength and vitality of our brand, and when people think of urban mobility, they will first think of new. Now to celebrate the 10 billion kilometer milestone with our new fans, we launched a variety of brand campaigns partnering with China influencers and tapping into targeted TV ads to promote the new lifestyle. This was all coupled with the release of our all new limited edition NQI 10 billion kilometer scooter, paying homage to the original M1 that launched the brand in 2015. These activities are perfectly timed to amplify our brand messaging during the peak sales seasons of 2021 in China. Finally, I want to take a moment with some forward-looking state comments for Q3. We plan to keep our retail expansion momentum, adding another 300 plus stores in Q3 despite the hot sales season. We have also ramped up our production capacity and recently brought up the phase two of our factory online, increasing our annual capacity into more than 2 million vehicles. And this will provide a good support to the third quarter shipment. The increased capacity comes in just in time for our back to school promotions running from August to September this year. Now with the launch of new products, expansion of our sales channel, coupled with the assortment of peak season promotions, we are very excited about the weeks ahead in the China market. Now, for the international market, we're very excited with our successful launch of our KQI kick scooters and believe it will contribute significantly in our sales growth in the years ahead. However, in the near term, our international market continues to be hindered by the COVID-19 situation in the European market and the shortage and the much higher shipping costs which prevented us from supplying sufficient inventories for the retail sales in the international market. Now, I'll turn the call over to Hardy to discuss our financial results. Hardy.