Niu Technologies

Good day and thank you for standing by. Welcome to New Technologies' fourth quarter 2021 earnings release conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. And now I'd like to turn the conference over to Ms. Irina Chen from New Technologies IR team. Thank you. Please go ahead.

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

Thanks, Irina. And thanks, everyone, for joining us on the call today. So in the fourth quarter, we have seen a strong growth of both the China and overseas markets. Our total sales volume reached more than 238,000 vehicles, a 58.3% year-over-year increase. The sales volume in the China market alone was up 49.2% year-over-year, reaching 205,000 vehicles. The sales volume in the international market reached nearly 33,000 vehicles, including over 18,000 units of mopeds, a 40% year-over-year increase, and nearly 15,000 kick scooters, a significant breakthrough in the micromobility market. Now, with the strong performance in the fourth quarter, we have wrapped up our 2021 as a milestone sales year. We're proud to announce that our global sales volume surpassed 1 million vehicles. This represented an increase of 72.5% compared to last year. The sales volume in the China market was more than 988,000 units, nearly breaking 1 million units, a 72.7% year-over-year increase, where the volume in the international market was just shy of 50,000 units, including nearly 35,000 units of mopeds, a 16% year-over-year increase, and additional 15,000 kick scooters. This is a milestone for us as a product company and a global brand. From a product company standpoint, despite all the global supply chain issues and the COVID-19 situation, we grew our volume by 72% while also expanding into new product categories. From a brand perspective, We're now the leading urban mobility company in more than 50 countries around the world, with 4,000-plus retail and online shops. The strong growth in 2021 is a testament to the successful implementation of our 2.0 growth strategy, which is leveraging our design technology to create electric urban mobility solutions suitable for rural regions and market segments. and in return making you a global urban mobility brand. Now for last year, we focused in five key markets and advanced our product portfolio in those. The China electric bicycle market and the electric motorcycle market, the international electric motorcycle market, the kick scooter market, and also the e-bike market for micro mobility. In 2021, we launched a total of five new products to the China electric bicycle market, the M2S, the upgraded U, and the F2, F0, and C0 of the Gola series, priced between RMB 3,099 to 7,999. Those five new products have been a hit in each of their respective target markets, accounting for 27% of our 2021 sales. Those five products enjoyed a handful upgrade to the smart connectivity and the battery management system that combined with the new China national standard for electric bicycles. This allowed our customers to enjoy a more connected and smarter experience while benefiting from an enhanced battery performance, providing extended ride range from 40 kilometers to 80 kilometers on a single charge, meeting multiple consumer segments' mobility needs. This has been a key for us to tap into an even larger total addressable market in China. Now for the electric motorcycle market in China, we have expanded upon the upgraded Gowa G3 and Gowa S4. The upgraded G3 now has a range of over 100 kilometers on a single charge. It has been well received by the market and accounted for close to 6% of our 2021 sales in just a few months a year. For Europe and America's motorcycle market, we introduced three new products. Our first EVO product, the MGT EVO, the most powerful electric 125cc, shipped in 2021. The RQI electric quad motorcycle and our first 150cc hybrid moped YQI both shipped in 2022. Those three products represented our expansion into performance moped and motorcycles. All of those products reached top speed over 100 kilometers per hour and each has an exciting of 0 to 60 kilometer per hour track time, even outstripping its gasoline-powered rivals. Those products offering effectively triple our addressable motorcycle market overseas, expanding from 50cc equivalent to up to 125cc equivalent. In December alone, right after the NTT will be ready for ship, we have ship.