Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is your sales target for kick-scooters in 2025, and what is your long-term plan for this business considering profitability challenges? A: Yan Li, Chairman of the Board and CEO, stated that they expect a 30% to 50% growth in kick-scooter sales for 2025, following the 160,000 units sold last year. The profitability issues were mainly due to high US tariffs, which are being addressed by shifting production to Southeast Asia. They anticipate the kick-scooter business to return to profitability this year.
Q: What is your outlook for average selling price (ASP) and gross profit margin in the domestic market for 2025? A: Zhou Wenjuan, CFO, explained that they expect the ASP in the domestic market to slightly increase due to the popularity of high-end products. The gross margin is expected to improve due to economies of scale, cost reductions, and potential adjustments in distributor margins.
Q: Can you provide guidance on the expected net profit margin by 2025, and what is the long-term outlook? A: Zhou Wenjuan, CFO, mentioned that 2025 is a recovery year, and while they are not providing specific net profit margin guidance, they expect to achieve overall profitability. Quarterly results will be shared to keep investors updated.
Q: Which quarter in 2025 is expected to see the company's net profit transition from loss to profit? A: Zhou Wenjuan, CFO, indicated that they expect to achieve quarterly profitability in the second quarter of 2025, as it is a peak period for revenue and both domestic and international markets are expected to perform well.
Q: What are the strategic initiatives for expanding sales channels and market presence in 2025? A: Yan Li, CEO, highlighted plans to open 1,000 to 1,500 new stores in China, focusing on Tier 3 cities, and expanding the dealer network overseas. They aim to enhance brand visibility and drive sales growth through these initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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