Chinese electric scooter company Niu Technologies (NASDAQ:NIU) shares traded lower premarket on Monday. The company reported a fiscal fourth-quarter revenue growth of 71.1% year over year to 819.2 million Chinese yuan ($112.23 million).

Revenue growth was mainly due to an increase in sales volume of 64.9% and rise in revenues per e-scooter of 3.8% in the quarter.

The number of e-scooters sold increased by 64.9% Y/Y to 226,634, with sales in China growing by 65.1% Y/Y to 182,333. 

For 2024, the company sold 924,340 units, with 759,094 units sold in China and 165,246 units sold in international markets.

International e-scooter sales climbed 63.9% Y/Y to 44,301 units in the quarter. The number of franchised stores in China was 3,735 as of December 31, 2024.

The quarterly gross margin declined 660 basis points Y/Y to 12.4%, mainly owing to shifts in the kick-scooter product mix, holiday sales incentives, higher international freight costs, and U.S. tariffs.

The operating loss for the quarter was 90.67 million Chinese yuan versus a loss of 154.18 million Chinese yuan a year ago. The company reported an EPADS of $(0.13) in the quarter.

The company held 904.4 million Chinese yuan in cash and equivalents as of December 31, 2024.

CEO Yan Li noted that the company witnessed substantial sales growth in China in 2024, fueled by strong demand for the latest models. Also, store network expansion has played a crucial role in boosting NIU’s brand presence in previously untapped regions. With this momentum, th company remain confident in maintaining strong consumer interest in the products throughout 2025.

Li further added that the micro-mobility segment grew its retail presence in 2024 globally through strategic partnerships with major retailers like Best Buy. Also, enhanced visibility of the electric motorcycles and mopeds has reinforced the market position, strengthening the footprint in key international regions.

Outlook: Niu expects first-quarter revenues of 631 million Chinese yuan – 707 million Chinese yuan, representing a 25% to 40% Y/Y increase.

Niu Technologies sees sales volume of 1.3 million to 1.6 million units in 2025, up approximately 40% to 70%.

Price Action: NIU shares are down 7.35% at $2.92 premarket at the last check Monday.

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This article Niu Q4 Rides High On Demand For E-Scooters, But Gross Margins Decline Amid Higher Costs originally appeared on Benzinga.com

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