Niu Technologies

Q3 2021 Earnings Conference Call


spk_0: get a ladies and gentlemen thank you for standing by and welcome to the new technologies second quarter twenty twenty one earnings conference call of this time all participants in the listen only mode later we will conduct a question and answer session and instruction will follow up that time as a reminder we are recording today's call if you have any objections you may disconnect at this time now i'll time to call over to mr jason yang investor relations manager of new technologies mr yang please go ahead
spk_1: but plenty the operator or one welcome to put a conference call with this got new technology both for the third quarter of live on the one or new properly copper presentation of financial percy harvin posted on you for the for the month for reasons website with cause the web cop from company bar website on of a replay of the call will be available soon with no pervasive discussion will contend for looking payments made under the other provisions of the united states private securities litigation reformat of night in a defiant for looking they mostly of risks uncertainties assumptions and other factors the companies are for result may be more thoroughly people from los eat
spk_2: pro today
spk_1: further information regarding the respect earth is included in a company public funding with courteous and exchange commission the company that not assume on the obligation to update and if we're looking for a month except as required by law our earnings prefer to live and live coin cool the discussion over certain man got financial matters the product list contains the definition of non gaap and as a matter of and the reconfirmation of kept and then gop and every both on the pole with me that they are our feel about for young the and the fearful myth beyond joke now let me turn the call over to you
spk_3: or factory for a fair one for to ya gonna call today the in the third quarter with the a strong growth again with our total bill foil reaching two hundred ninety seventh all the units of fifty seven percent year over year increase making the though that quarter with filthy our history in terms of oil the field warm china market with two hundred ninety two thousand units are significant increase of sixty percent your year
spk_4: where they boil mean and personal market research the nearly five thousand dollar eleven percent compared to last year primarily due to the shipping issue that you are all were all that continue to the late ordered that with every thieves and the manufactured but can not meet the factory and therefore cannot be book that feel in the first three quarters of a year old fill boil totaled eight hundred thousand units that includes of seventy seven percent compare with the same period last year
spk_3: now the strong to three growth in the china marches showcases the strength of our growth strategy which he could lead space of our product portfolio to cover a wide range of electric scooters and the rapid expansion of our retail channels and too graphic footprint admission the last earning called starting this year we have large by new vehicle to under the new brand than the find new vehicles and or the go over and we are labeled as to have a wide range coverage up consumer need from bit too high and the new product of i open take into account the preferences of both male and female customers a lawyer to attract a wider range of customer group
spk_4: in the electric motorcycle fat or entry model go what the to he has a starting price of our and beat three hundred bucks or three thousand six hundred nine and i are be an hour top of the rage energy and q i think he had a price tag of our be twenty thousand two hundred ninety nine well the total of a few it than twenty two
spk_5: the electric motorcycle potter offerings
spk_3: fully electric bicycle path we have our entry level goal that ti deal with the price of rmb two thousand four hundred ninety nine and are a couple lie model huge you i thought with the price of our and be a thousand nine hundred ninety nine well a total of twelve years than the forty two potter offerings from the device bell will have three series the t apathy each with distinctive the guys still under the go a bread and under the new britain with have the end and the youth period each with the unique an elegance dial in terms of performance we offer to i have a job forty kilometers two hundred kilometers on one charge for
spk_4: both electric motorcycle the electric bicycles since the rule all the china regulations thousand electric bicycles over the past two point five years we have a quickly the bubble a full product portfolio to cover the middle fire market the full coverage with the key too fast growth in que three that it oath that a solid foundation for future growth in twenty twenty two as we continue to expand our product a photo the fear was that leukemia sleep benny a retail store footprint across china rapidly cute three the traditionally a peak season for sale by low fees of with to expansion however this time we're able to cover our best filled quarter ever while awful adding another to three hundred twenty new printed to with quite china which of the one point six excelling special paid compared to cute three twenty twenty as of september thirteenth we now have two thousand and six hundred eighty six stores operating china will well on track to have three thousand stores the operation by and of twenty twenty one this stores will serve as the foundation to dr phil schools for twenty twenty two
spk_3: not only away from feel for moment i'm very proud of a milestone with hit at the company last month or oct eleven
spk_6: our more than two million users helped us reached that ten billion kilometer writing mark
spk_4: they will the first time ten billion kilometers has been recorded in two wheeler industry history to celebrate this also milestone will last a theories of marketing campaigns with the slogan of feel a bit proud of you been new study in september and the bull run through the end of the year
spk_3: the brill new record this style technology and freedom a lot of bread values we have flip it said a rapid than a new users and sure their story with new scooters over multiple channels this users seem cool the photographers travel you to theft talk show host and others this story short haul writing a new vehicle has helped them with their daily urban commute and make their life a little better of feel a little bit pride a proud with new this story than the video be broadcasted over social media channels like wave will weaken our website and of course many of the kill else and kill thief have also created their own content or on the theme of feel a little bit proud a bit new just other amplifying or message i rich
spk_6: in just a few short weeks of all those have achieved nearly hunter million views more importantly a helped to come the a brand into to our users and potential customers
spk_5: the message position you know just as the electric scooter pump company but also as the lifestyle brand
spk_4: besides the user their stories we also launch a social media video campaign with a feature be viewable feel lubet proud the video has been air across social media offline and also have been either showcase in the ass for the new james bond film to see more than half a billion views they'll consider and you'll have more than two million users were also engaged are users with the treasure hunt location based game or app user receive a raffle ticket if be right there deal path the secret buying their feet he moved ticket can be redeemed for where prices like of fisheries and also enter them into a lot of for ten billion
spk_6: kilometer limited edition the our initial law intensity the over the past month more than two million digital raffle ticket have been collected by our users showing to call engage our users are without brand products and services
spk_4: oh the user centric activities than marketing campaigns having food our brand awareness significantly in the china market and can campaigns the specially resonate with the jazz the user's word fucking brand that deeper meaning i knew commitment to style technology of freedom and something
spk_7: they buy you greatly
spk_4: the combination of marketing campaigns that with our continually retail store expansion set up up for another poor of girl period que for
spk_3: now do here international sales were moment here our que three with a little below expectations as compare with the china market but is not a result of he quit the men as many are you aware international law just states continues to create ever longer backlogs and the were not immune from
spk_4: effects our book orders were fifty percent higher than what we actually shipped and everything that be a ship is typically on back order at any of walberg point of retail across the gold despite the low a feeding tube through eat were infected very optimistic with coupon for the international market orders
spk_6: where he said about tomorrow actually on november twenty third one will we will last several new product at a coma the largest to wheeler shows globally held in milan italy
spk_4: including our most powerful hundred twenty five feet the electric moped the and i t t veo are for a hundred fifty bp highbury that the y que i and our agreed by the beach you live and the two additional cake you i kick scooters money which will be shipped this quarter and instead to kick out the filthy the a february across europe and america first in electric motorcycle more paid classes move along the added que i t t v o below be the markup new performance line then t t v old will be and bill act months a the first prada lumpy are a new he feel theories that the redesign inside all with
spk_6: the top speed of a hundred kilometer prowler an exciting zero to sixty kilometers per hour trek time feet under six seconds outstripping it's gas powered rebels we believe the added this is the first electric motor that can really compete on price an awful manpower and be with petrol competition in the hundred twenty five feet pp clock a moped
spk_4: the addition to the performance the m t t v or had added a number of featured they could kill it's ignition electric antitheft locking and own new tfp color dashboard path my bubble the other users that we have already received seven several thousand orders to be shipping queue for and empty
spk_6: he reveal will be stored europe or america as early as february with a price tag
spk_8: of five thousand euros
spk_4: he said the n t t v old will be a little debbie our first hundred fifty feet the equivalent hybrid moped the white you like the why you i have been the best traditional i see engines than the lithium ion battery powered electric motors a common with the hundred fifty feet the ip engine couple with two point four kilowatt electric motors
spk_6: providing their exhilarating acceleration that much to pure to either traditional two hundred fifty feet the moped the like you i have the position at the gateway vehicle for he be for to willing to see act who have not made the transition away from petrol it is doing well on our will be available and
spk_3: america at the late twenty twenty two
spk_4: not with the addition of y que i am kyoto treaty o and a little awkward mtts and aren't you i'll pop motorcycle we have for a full coverage of motorcycles from hundred fifty two hundred fifty feet the greatly expanding our traditional offering fell fifty fifty quid blood electric
spk_9: more per internationally
spk_4: would believe this will father consolidate our leadership in the electric motorcycle market globally
spk_6: not as we mentioned last earning call would have entered the michael mobility market with the pre fills up our kicks woodard prada the cake you i'd three or into google on july thirteen after the federal rallying the google we have then have received more than fifteen thousand the ordered by the end of their september thirty tomorrow and eq mind me line will bring to new kick school product to the market something we called a kikuyu i have three max which will be afraid of keep your eye three pro it is the equipped with
spk_4: them more powerful awkward four hundred fifty walk mortar and the with a larger medium batter compact these switch can easily reach the speed of three had of three thirty five kilometer prowler and have a dry range of the by kilometers
spk_6: there's no mass market hot up like that in the market right now and the word funny about it will be priced at added nine hundred forty nine years will also be or even more economical kick scooter into the family called of the cake you i to the key to take many design cues stopped paid three and a with more you
spk_3: the customized bull features the key to have a top speed of twenty by kill me to prowler and the right a range of forty kilometers will be priced at four hundred ninety nine euros and it with the as dallas the guy that kate to expected to become a favorite urban mobility commuter globally the key to be shipped before the end of december twenty twenty one
spk_6: now with okay three and the k to would have a robust ally off of a kick scooter product with price starting out one and nine i you are of up to nine hundred forty not yours
spk_3: who have up a photo of offering that meet the budget of why angel customers who are looking for affordable solution for their urban commute we have already read the money orders and the we expect to ship more than twenty thousand units of kick scooter thing for to fulfill the first batch of orders we will also been offering into the pike market tomorrow at at marvel lunch hour new you buy a product called the bq i that has down as urban minimal design and a the capable of extended right range of hundred kilometers thanks to its tuna mobile batteries the beach you i'll be praying ender fifteen hundred years make eight and most powerful and affordable commuter he bikes to him marking twenty twenty two
spk_4: the continue growth what you buy the man across europe and america even easy exciting growth but lot in both those market and that was potter like bq i would think we can quickly having to the demand of the next twelve months now with the kick scooters that you by to cover michael mobility market where authored by the our international fill channel besides the current hundred fifty three flagship and premium stores and belvin class authorized dealers were also establish our ecommerce present on channel like amazon and also offline china
spk_5: else which oh boo a lot to enter into consumer electronics store like a medium martin europe and many cross the us
spk_4: supported by the diversify product offerings and channel expansion were quite optimistic with our international sales in queue for and a twenty twenty two beyond
spk_3: now i'll turn a coward who feel to discuss our financial results feel
spk_10: hello everyone are cracked ribs
spk_11: all figures and compared me
spk_12: when we have also
spk_10: cell phone seekers are i went to die for your reference as i review our financial performance we are referring to the
spk_13: i say otherwise
spk_14: and all that
spk_10: mandatory figures are beyond that
spk_15: otherwise noted
spk_10: quarter three sales volume reached three hundred and ninety seven south representing a fifty eight percent year over year growth china lot and increased by sixty percent primarily driven by new product launches in the past two quarters and the continued retail network extension one you a bicycle model you know and lot of greeting immortal cycle model three were available on the market important we need to models contributed around sixteen percent of our total feel for him in the south for we open stores in china during the first half of this year the newly opened doors contributed to our sales volume growth but also played a critical role in promoting our breath
spk_11: our market share
spk_10: we or another three twenty new stores in the third quarter which will help her with father steady growth in the future wife international sales body on however decreed by eleven percent as a result of the continued challenges from international shipping with regard to in theory inferior accounted for six percent of total sales volume and furious accounted for six percent you serious accounted for thirty for them and go on for that accounted for seventy five percent out have that seventy five from ago but products forty one person with from the low price moto g zero as the and zero remaining thirty four person was from other go low moto relatively higher retail price increase the mixing single product was due largely to two reasons for the new go up product launches been quite you are an aquatic three as the real zero three and at for have been very successful and to old quite a the sales sales growth incline three second during the third quarter company provided promotional activities for the golden theory products in order to encourage faster adoption of compliance he bicycles in china total revenue increased by thirty seven percent to one point two billion to be lower than guidance were providing earlier primarily due to the lower than expected sales from international markets revenue from china scooter sales remains strong and increased by forty five percent the accessory spare parts and service revenue from china market also increased by more than forty percent the decrease in international markets would believe it's short term
spk_11: and we are looking forward to positive growth in the future plotters
spk_10: rps quantum three declined by thirteen percent your year
spk_16: look had the decals
spk_10: in china market the scooter he decreed by nine percent year over year she'll be due to the sales from low price moto g zero zero zero which accounted for forty one percent of total field body on compared with twenty seven percent in the same time last year here in international markets the scuderia be decreased by eighteen percent as mentioned in the that to quarter earnings call the depreciation of us daughter and the changing the wages for the earthquake ordered are the key reasons for the decree compared with court you north korea being increased by five for them
spk_11: if we take how they impact from kick schoolers the sp increase is around fourteen percent quarter over quarter
spk_10: the a i feel accessory spare parts and services was two hundred and sixty seven poor scooter a twenty nine percent decrease mainly because of that decline sales from international market gross margin was twenty percent point nine percentage points lower than this time last year as a consequence of weaker international failed we have reduced our march and by around one point one percentage point however point two percentage point decline with offset by the increasing margie and increasing proportion of accessory spare parts and thirty huge revenue from china market therefore net impact
spk_17: was point nine percentage point decline oh total operating expenses excluding share with compensation will one hundred and forty three million increased
spk_10: forty six million or forty eight percent your with year the increase was caught the by twenty five million higher brandy and advertisement in sales and marketing expenses eleven million higher depreciation expenses of new store openings and thirteen million hire staff cost a percentage of revenue are all pretty expensive excluding share with conversation was eleven point seven present point nine percentage points higher than course three last year mainly due to higher branding and marketing managers
spk_11: oh man income was ninety two million a fifteen percent increase your with year the have adjusted net income boards or hundred and two million and the are just didn't that marginal with eight point three percent one point eight percentage point decline compared to the same pure in the last year
spk_10: as mentioned above due to the point nine percentage point world marking decline and increased from operating expenses as point nine percentage of revenue turning to our bad and she and cash flow we ended up with i'm be one point six billion in cash deposit and short term investment operating cash flow with positive four hundred and two million much higher than on the net income on us three read capital expenditures with the rams seventy six million mostly related to prepare for the expansion of twenty six million and new store openings of fifty million and now that time to brighten respect the fourth quarter revenue to being the ranger eight hundred and forty million she'll nine hundred and eight million an increase of twenty five percent to thirty five percent year over year with that that now open the call and a coup should you may have foreign operator please go ahead
spk_0: a minor to ask a question you will need to press restore one on your telephone to withdraw your question press the pound or husky
spk_18: once again if you wish to ask a question press the or and the number one on your telephone keypad
spk_0: your first question comes from the line of vincent you need them and company please ask your questions
spk_19: if you keep running them all blue you know that you went viral when a when she today using that she got not been a do song the issue of are sudden had each other to the highlight those also the dude looks using that you use of our issue so having a result now woman to the teacher bad luck that decay that will i do you did you do cheat or jews or in secret union woman died you bitch or looked on to have seasons ago a home if you go to the only to how are you watch the jupiter not available and you should you to mid that going to on the on to go woman panel on the dog inside your home you you so i do that he is arguable that are found that uses google a hobby apology for some kidding going and to use in that you know you want to see the father while you teach and like a good you you don't want a selfish or features on so that's my job since i just a t one the a father and she going to get older is it ah well would you buy you time to go the fighting back of amendment thing for taking the question that by held more questions on the sweet topics want these are all older supposed he's been is how do we think about the on the the done the should feel things well with the continue to impact our revenue the next the in the how we think these that luck will be realized the in the next few quarters in our second question is under fighting how do we think about these running costs
spk_5: that and and parts pop pop pop operations and good question i will like few management choose them effects of the on the know he's kudu replacement psycho is buried under kinds that can be stopped
spk_19: mac or condition thank you
spk_6: very the are able two mile answer the question english
spk_4: i'm adding first one with that with the shipping backlog i think you throughout the a bit tough obviously for international duty you spirit the a also you you you look overshoot historically has been loki them because whenever we should be que three that she couldn't be arriving europe america seems sudoku for their she you know it's actually the winter season actually low sales so as expected to for are shipping of start to improve specially october october november stupid have ah but it would start being our faith the no compasses start to empty out in north that you know starting like november an oath in december
spk_5: oh we actually have a lolo odors and back rock and as the to be ah go on the ship
spk_20: in december
spk_5: in a both from the motorcycle point of view electric motorcycle and also the the twenty per thousand electric scooters
spk_21: so that i think that for them
spk_4: for the international feels intimacy come back while we wouldn't be
spk_5: it wouldn't be necessary a block issue the to for a bit of females i was to see a swanky man
spk_9: for both motorcycles and over for the kick scooters
spk_22: from now on the
spk_4: but the supply chain issues fighting in the early the theory the supply seafood the was really a shortage of chipsets our were especially the input of chipsets about where we have it in the impact blue the our business but not significantly and then we were able to actually
spk_5: iridium our and few the of actually use a replacement you know the domestic china chipset to replace on the but important ones and the that she helps reduce the impact on the know that she'd be the que three nothing too much i think you do really well looking at cure for
spk_4: and the maybe next year there might be pressure in turmoil
spk_3: robert fuel prices in term of lithium batteries
spk_6: the early enough for thought this year we sep
spk_3: the pressure not on lithium battery both from like all other stuff like copper steals so that actually impact the
spk_21: you know that that the cough flower trophies
spk_4: also the cost for tires older stuff for we actually increase the product price to be a pro this year to have said those are
spk_8: the drama to your price increases
spk_6: i'm now going into twenty twenty two
spk_4: we actually think there might be achieved there may be a case that the libyan battery price will go up a bit which you know many of the pbs already up there in the market because the that the that either three in china actually building and a soda ash tree woop woop woop create cause pressured our side and a remedy to that will be our will camp that you know the potential solution to increase the proud retail price as was actually factor price you are you twenty twenty two or two after that up and the and that is not really new to us believe that you know you will look at the be follow new phone number years every year we increase our product pride by somewhere around three to five percent even though the average as piece on has declined good because the problem next but you look at the individual provide the pride that she goes up a lot and because you know because the city i also be taught to actually you to have that the or the cost increases
spk_23: the last be with the
spk_24: the the policy or induced ah
spk_25: the replacement problem
spk_20: but so what we should start of the see some impact got to kick in for example a baby you know a start any by fifty it learning the years with the some provinces know like beating beijing just you know you basing actually in a november twenty eighteen they start to issue
spk_6: would he called a temporary licenses until the april and twenty nine team and then that emperor licenses loan made good for three years so actually start in november first live here are a cb of i treat motif allow the temporary licenses and the yellow the drive a yellow license electric scooter on the street you scroll get confiscated and the you i should go like thousand are defined and thought that actually drive a bit ah
spk_4: retail sales in october as wall that been going forward even the winter season for beijing wouldn't be that code into internal sales because the lobby actually need to buy a replacement scooters and with start the pull beating now than the second the with dark theme for the pirates trilogy on province
spk_3: they're rolling out of something similar
spk_4: ah mau actually will probably be impact know starting that you know basically this winter season that onto the next spring
spk_6: so it obviously you know you're you're not gonna be a huge job like for act of two or three or four act jump into my retail demand on by the able a do impact i think the oil market demanding and as all the reboot i bbq three
spk_4: we do all had a bit go up products
spk_5: and the he ushered do it call you feel the go potter everyday seventy five percent are fielding to three all have because those replacements allow those replacement not extremely high and money on of them and product that to our mitt and pot offering start to really take up on the market share ah starting to three
spk_26: a hopefully that address
spk_27: your questions
spk_19: yeah law there are hopeful ah thank you
spk_28: your next question comes from the line as chang a see i see see please ask your question
spk_29: hi jason high end before your communication and and congress to feel to an uncle technology and now he has two questions the first and it's about me ever since i thought the family so we can see that the our some play of similar sense of as is fluctuated great on
spk_30: it's important so
spk_29: i wonder how much of the and amazon price comes from overseas battery packs and a whole much of things from the switch up with one of its feet and also others families and on alcohol to me and the only of quarter and also the future and my second question is can see that sells volume off and and and you a decrease the lots fall in the third quarter compared to the year so a as and the a new product last year amen manage focusing on hi i'm more those go first
spk_31: how to look at the
spk_29: compared to most of our new high end product and also a all appears product keep low prices and new dish and hollis the ourselves close momentum and there's such such products up next next next year
spk_10: okay ah then our fourth question as was really upset the and spare parts red lining and services revenue or with fifty million and ah you know as we mentioned the of accessory after revenue will increase the lodging the china market and this corner we do see international market and that's why the accessory and services revenue the decline in the international market but with the recovery of the international sales in plot of for as young mentioned and know kind of other revenues were you will recover with the same life as the international sales so all we do rely on quite strong increase in the future choir of this point
spk_32: oh threat to you
spk_4: and i by adding food fucking questions that yes i think for two three as a nation that the am you basic the new branded products or which we were good but you and a new brand products actually that that the boy my she did decrease are partially because
spk_6: really in que three on the second half of the queue to arm
spk_20: he sexually the did the me on the tube gym
spk_4: we go all like a fine new google products and a dash and the with the marketing campaign really try to the market share in the mid and upon a replacement customers i think that she and the deluca our because our business is not exactly direct to consumer our business goes with that should we felt it leaders a dispute or sell to retail stores that retail store to consumers the along those lines the are capital being used by the to speeders their cattle be
spk_20: he used by the retailers to some extent he can understand as we have more new products and go work a dog my disputed and retailers the only have a limited capitals by so
spk_4: some alert after will be occupied by the pool a prado i think that were is actually create the cap to train it done by the dish are gonna go potter let on that and that new batch to create temporary decrease on their me a second is actually we haven't done too much from up into three other really low all the are you know
spk_6: a new wouldn't have a new what and am you except and to ask which isn't be upgraded version four and two i'm driving the also created a drag on a new product but going forward i think this or in two thousand and twenty two are we had planned actually
spk_33: quite a number of
spk_4: a new product under the new series and the that will actually help too
spk_6: increase not only the percentage and also increase the filth volume
spk_3: after a new product the wacky ah you know quite promising i quit hopeful
spk_34: about twenty two thousand and two
spk_35: with and i'm you serious
spk_0: thank you once again if you wish to ask a question you will need to press star one on your telephone
spk_36: your next question comes from the line have been wearing of credit suisse please ask your question thank you i got to quit has been the lives of our your service uk is threatening to your on or no ambush alternate go buy cigarettes was that go by that battery has less burial inca that's why you grab your post has been no a computer that schools of course so don't know that the different products
spk_19: we to the lab coat with the any difference as than the one question number two's about can you that break up by your the market mm make up and could a great because with that but a familiar with their kick scooter are you can be hybrid pro that you mention about sci fi nice the hell happened to me
spk_6: you have an engine in the which was the electronic scooter defendants thank it
spk_3: or of the idea how dreadful to question when we were thursday income yes those a song go prada or not but the have to smile t devices so today than the your were we're not gonna fee would you call the connect him to income from both google products and up by a lot go
spk_5: oh of or doesn't have the connectivity their porsche algo products will have would call it around boxes of posted
spk_37: at a store so those go upon i feet we were still able to charge you know the you're stupid connectivity feet
spk_5: a long ago a product so
spk_38: you know that may be addressed thump thump and some the answers are here
spk_3: a second would do the nation
spk_6: explicitly by the not really starting this year with start getting a third revenues from our sure scooters that get getting about you know ten dollars per month per scooter not being tardy on the entire fleet or some operator to have a star i've been paid yet but practically all have deplete
spk_5: a fleet so i me and we have more than sure and vehicle was deployed globally you can see that you'd have you know that revenue through come in nicely
spk_39: i'm liking that that that to part of services
spk_3: now
spk_4: on the bomb a new categories that i assume you're you're asking about the hybrid product yeah the hybrid potter star first attempt or who would that be on this product or she tomorrow at coma three eel you're gonna see the newest on the desired she a beautifully be buying products
spk_40: bomb would we see is actually very the one part of my motorcycle category that were not able to attack that actually you around the hundred fifty fifty to two hundred fifty cc motorcycles that are a motorcycle stewart for them a rocky ball in or thirty percent the market europe and the united states
spk_6: but the reason being that he he actually require longer to i arrange
spk_40: he be simply just to electric a will be too expensive for users by i'll let you go with the throughout you know that that that the industry pride of zero which like ten dollars euros even more
spk_6: so what do we have a luxury a become clearly internal you technology the actually come by a combustion engine with the electric motor and that with up or even with the batter into it so she will allow users to hadleigh unlimited driver range from not limited by the gas
spk_41: hank by same time we you do a city come you will use more the electric motors such that it will actually give you a a more umar mental friendly into my use a scene from our gasoline are you it's per kilometer bad but this product will be probably available to
spk_6: for the second half
spk_0: a of the twenty twenty two so this is that the echo my we're going to show the concept be lie on the some the technologies and the product doing the by and the will be ready in the second up a twenty twenty two
spk_29: thank you
spk_42: your next question comes and the line of lee sin as u p s please ask your question
spk_3: good evening jason again and that you bomb thank you for taking my question all the fuss is about it the margin or investors are concerned about price for at at this year and which was mostly very the said quarter
spk_4: we noted from mid november yeah yeah and a mom or half race play by five percent on so oh can i ask your view on a price war and that an impact on monday and shredding twenty twenty two of this is my first question
spk_37: ah
spk_40: many are almost vertical a lot of young to put a top of him on margin part get a so i i i had a year to be honest i think about your those two players have been bugging price war and
spk_4: the in the we were not engage in the price war but a we did a bit of pump marketing promotion our go a product into three on google or i for out on in a really low and email with our ago and treat prada twenty four nine i were to do like can live and prada not a man the way it
spk_21: thoughts on a the into someone's going to leave the are margin feel much much higher than ah ya deep and i'm must margin on
spk_43: and obviously in ireland you know they've gotta read prize in in september or we haven't done that yet i really haven't done that yet because we we did a little bit a pro that how to absorb some the cost and the will also carefully observer the markets will see when the right time to read increase the price but i the majority are far with would away
spk_44: the dirt you know the trend or leave him better prices on there the likely that going to increase price you've already twenty twenty two
spk_42: no and the we usually do that during the holiday season says the law the chinese new year students who have a laugh impact and mile from the that from the the retail
spk_45: yeah i think that my my car
spk_46: factors open
spk_47: a kid also and because the margin i know there are lots of moving parts including the price will and also the commodity prices are so what's your general view on twenty twenty two margin because the i as he get some mud pressure in that quarter and what's your view on the fourth quarter and on
spk_11: twenty two things
spk_17: ah maybe i should do something
spk_48: and then you will
spk_17: as young missions actually even though we consider about the yard retail price increase in rd or twenty twenty two with deal for a higher raw material cost the problem and are lucky that we have made the croft optimization and
spk_11: he began to show positive effect and that's why i didn't see any
spk_49: you are a huge margin off in deep water and those are hot optimization initiative to will bring back in the future wired and with the our strategy that we may increase
spk_50: the a sale or the retail price was around three percent five for thin which will not bring the i in that chief his feedback from their customers i think we can feel ah remain the
spk_40: good growth marching
spk_51: and yet
spk_42: the idea that bother really you know i bought one hand i i don't see would the a you know a martin decline next year but a
spk_52: but it but you know on the other hand i think you know we'll see a lot really a stable margin there was a slight increase
spk_42: ah okay thank you and my next question about is a is about your the new product you just mentioned that you have prepared a lot of new products
spk_6: including that kicks would her the deducted a motorcycle in twenty twenty two
spk_40: can because we are not really familiar with these new market segments can you give us more color like the cells guidance in two thousand eight hundred sure to me to industry
spk_51: which
spk_40: product line well become a significant contribution or intense the revenue on and in the next two to three years and cuba because of because i think some of the products are many or for brand building is not for law themselves on correct me if im thank you
spk_20: yeah i think of blame for this way i feel like i've been to already been to be my guide us is but a you but i've been there three categories one that will look at the trick scooters that trick scooter a dream car market to spell you know i do from what i read you know the probably like six to a million units per year depend on whether you call them the that the kids once or not
spk_6: and the know this year with these to sixty six million into a million more for in united states and europe
spk_53: i'm so those to market where we do have a strong brand and term up urban mobility and i think this year we initially have our key three and now with the paper you know the country my country to and a pleasure in next year we're going to have a couple more to school prada that will give us a wide range your pot bath
spk_54: you know help us to cover the empire in part of our rooms span for the that six million units of entire mark the entire market six minutes unit the where i feel
spk_6: you know quite optimistic with our growth market square on that bike
spk_21: he by is also about six million units ear or roughly about eighty percent or it actually yes about eighty percent and
spk_37: europe and about
spk_21: victim ten to fifteen percent united states
spk_4: also we have a tweet byproduct so far we have our you be there are one or we launched last year start to make them feel fear and the we have our bq i to be launched a coma tomorrow but that prado wouldn't be available for sale on pew pew one early two to of twenty twenty two
spk_3: i'm so but you know as cool as you put you off guard to actually generate more potter along he by categories
spk_6: are both good that exclude ernie banks who have to dedicate team for it and were actually committed to those two hours so i do think they are boy or more revenue generators
spk_21: now with the other motorcycle product bomb the put this way or even just look at the european market then the is not just look at the electric part european market a book is about one point five million units to two million units for year
spk_40: intermodal cycles majority of actual as point
spk_4: and boom within though you know the car market above fifty percent are hundred fifty below and fifty percent are like hundred twenty five fifty of both
spk_55: our our our prada offer used to be fifty fifty below by pretty busy beetle movie as a to be like a fifty kilometers power or with guard have like seventy eighty pc plod up like a tried to be of them the eighty two meter per hour for the or evil and open up to
spk_0: upgraded and gts and the auto the our products
spk_3: both at united feel meter per hundred kilometers hundred twenty kilometers
spk_56: those are are three three to thought attack the other fifty percent the market which with hundred fifty above we never had a product in that market so if a white space for us and that you can see those lotus in marked the actually i do think those products are also revenue generators
spk_0: oh thank you won't see i think you

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