Thank you, operator. Hello, everyone.

Welcome to today's conference call to discuss Niu Technologies results for the third quarter 2025. The earnings press release, corporate presentation, and financial spreadsheets have been posted on our Investor Relations website.

This call is being webcast from company's IR site 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 provision of the US Private Securities Litigation Reform Act of 1995.

Forward-looking statements involves risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today.

Further information regarding the risk factors is included in company's public filings with the Securities and Exchange Commission. The company does not assume any obligation and update any forward-looking statement except as required by law.

Our earnings press release and this call included discussion of certain non-GAAP financial measures. The press release contain 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 CFO, Ms.

Fion Zhou. Now, let me turn the call over to CEO Yan.

Thank you, Kristal. Hello, everyone.

Thank you for joining us today. In Q3, we delivered solid and sustained progress across all key strategic priorities, supported by disciplined execution in product innovation, channel expansion, and brand elevation.

Our results reflect the continued growth of our core China business and early signs of transition in our overseas operations, laying a strong foundation for the next phase of growth. For the third quarter of 2025, total sales volume reached 465,000 units, representing a strong 49.1% year-over-year increase.

This growth was driven primarily by exceptional performance in China, where sales rose to 451,000 units, up 74% year-over-year, supported by our strengthened product portfolio and effective channel expansion. Overseas volume reached 14,000 units, declining year-over-year mainly due to weakness in the micromobility sector.

Our total revenue grew 65% year-over-year to RMB 1.69 billion, accompanied by gross margin expansion to 21.8%, up 8.0 percentage points from the prior year, or 1.7 percentage points sequentially. This improvement was driven by a favorable shift in the China product mix, with increased contribution from higher-value models.

Notably, sales of models priced above RMB 8,000 accounted for over 10% of China sales. Net profit for the quarter was RMB 81.69 million, extending the profitability momentum established in Q2.

This improvement reflects scale efficiencies from higher volume and our continued focus on operational excellence. Those results underscore our ability to execute with discipline and resilience amid evolving market dynamics.

We remain confident in our long-term strategy, and the progress achieved this quarter provides a strong foundation for sustainable growth. China remained our primary growth engine in Q3, with unit sales rising 74% year-over-year to 451,000 units.

A key driver was the channel inventory build-up ahead of implementation of the new national standard for electric bicycles, which provided a substantial short-term boost. This performance was also supported by successful product launches, strong brand-driven demand, and steady channel expansion.

The momentum built through 2024 and into 2025 reflects our refined strategy, enhanced competitiveness, and growing consumer preference for Niu. In Q3, the China electric bicycle market entered a critical transition phase under the new national standard.

While production of non-compliant models ceased after August 31st, retail sales of existing inventories are permitted until November 30th, 2025. This prompted distributors and retailers to build inventories in July and August, effectively pulling forward demand from October and November, and created a temporary sales boost in Q3.

Now, to prepare for this regulatory shift, we emphasize on three actions: upgrading the existing high-end electric bicycle models to capture the short-term demand; rolling out the new electric motorcycles unaffected by this regulation to target lower-tier cities; and redesigning and retuning our entire electric bicycle lineup to fully comply with the new standard for the rollout Q4 2025 and Q1 2026. First, to capture the premium electric bicycle demand surge under the old standard, we launched the upgraded flagship models: the NXT Ultra 2025 and the FXT Ultra 2025 version, each priced at RMB 11,999.

The NXT Ultra 2025 introduced 10 major upgrades, with 77% of core components redesigned to elevate the benchmark standards across safety, power, intelligence. The FXT Ultra 2025 featured a futuristic, performance-driven design on the same technology platform as the NXT Ultra, equipped with the automotive-grade millimeter-wave radar and the dual-channel ABS, setting a new safety benchmark for the segment.

Together, those Ultra models contribute 8% of total Q3 sales, effectively serving high-end demand during this regulatory transition. Now, electric motorcycles are more prevalent in the lower-tier cities, Tier 3 and below, due to a more relaxed regulations.

This segment has historically been underserved in our portfolio and the channel footprint, making it a key growth priority for us. As highlighted in the previous earnings calls, expanding presence in the lower-tier cities is a core strategy, reflected in our store expansion and strengthened product line.

In Q2, we completed a full N-series motorcycle portfolio, covering mainstream price points from entry-level N-S at RMB 3,000 and above, and the N-L at RMB 4,000, and N-XL at RMB 6,000, to the performance-oriented N-X just under RMB 10,000. Start in Q3, we extended this strategy to the F-series, broadened the price band, and enhanced the performance-to-value offerings.

Now, despite Q3 being a channel-stocking period focused on electric bicycles, our enhanced motorcycle portfolio supported a healthy 14% revenue contribution from motorcycle sales. We expect this share to increase in the coming quarters.

A key milestone in Q3 was the successful launch of FX Windstorm version on September 28th. Known for its sharp, distinguished styling that resonates strongly with Gen Z riders, the FX Windstorm reinforced F-series positioning as a performance powerhouse.

Priced at RMB 4,799, it targets the RMB 4,000 segments and is first high-speed motorcycle for the young riders. Equipped with a 3,000 W motor, reinforced frame, and a full-size TFT display, and four-piston disc brakes, it delivered performance comparable to model priced above RMB 10,000, including 80 km/h top speed and a 0 to 50 km/h in 4.7 seconds.

The FX Windstorm was an instant success, with 14,000 units sold in the first 5 hours, and generated RMB 68 million in GMV, and ranked number 1 on Douyin, Tmall, JD.com, and Kuaishou in GMV and popularity. This success validates our strategic expansion into the electric motorcycles and creates strong momentum for upcoming launches, such as FS, targeting the entry-level users.

Now, alongside the high-end electric bicycle and motorcycles, we dedicated significant R&D resources to the new-standard-compliant electric bicycles. The updated regulations require substantial redesign from the limit usage of plastics to form factors.

We now plan a full rollout of compliant products beginning in late November and extending through Q1 2026. The portfolio will include the renewed N, M, and U-series offerings, and also introduce new series designed to reach broader consumer segments, including products optimized for female riders.

Now, beyond the new product development, we continue to invest in core technologies, including the smart riding system, powertrain innovation, and R&D platformization to enhance efficiency and capabilities. Our smart riding and the AI effort focus on three areas: expanding the foundational safety technologies, such as ABS and millimeter-wave radar; developing assistant riding features for premium models, such as the two-way throttle and downhill assist; and building intelligent ecosystem to broaden third-party integrations.

Through partnerships with Apple and OPPO, and with other industry leaders, we expand the cross-device connectivity, including off-bike safety alert and Apple Wallet key access, enhancing overall user experience. Now, in the powertrain system, we advanced several next-generation initiatives through a deeper motor controller R&D and the close collaboration with our battery partners.

Our effort focused on two key objectives: delivering higher peak current output for stronger acceleration, and fine-tuning overall system efficiency to extend real-world riding range under the diverse conditions. The NXT, FXT Ultra and the FX Windstorm are the strong examples of this R&D achievement.

The enhanced powertrain architecture enabled 0 to 25 km/h acceleration in just 1.92 seconds, setting a new benchmark for urban performance. For the FX Windstorm, the upgraded 3 kW high-efficiency motor and optimized controller deliver top speed of 80 km/h while maintaining stable power delivery, improved thermal performance, and consistent power output even during the extended high-speed riding.

Those advancements not only elevate riding performance, but also form a foundation for the new generation of new powertrain platform that will scale across future product lines. Now, lastly, our productized R&D strategy continued to deliver meaningful operational benefits.

In Q3, it accelerated product iteration, strengthened manufacturing consistency, and increased economy of scale. The improvements supported a smooth delivery of 450,000 units, surpassing our previous peak by roughly about 20%, while enhancing margins through shared components and modular design across product lines.

Now, in Q3, we continued elevating the Niu brand and deepening engagement with our core audiences, particularly premium consumers and Gen Z riders. Our approach integrated lifestyle campaign, high-impact product launches, and targeted digital engagement to strengthen brand equity and drive conversion.

We activated a series of youth-focused lifestyle campaigns: the Summer Ride and Splash campaign embedded Niu into the outdoor leisure scenes such as lake diving and quick hiking across major cities, generating 130 million impressions across online and offline channels. Following the FX Windstorm launch, we hosted large-scale test-ride events in Chengdu and Chongqing, engaging riders in real mountain environment.

This created authentic word of mouth within the key user segment to provide valuable feedback. Our launch events continued to highlight Niu's technology leadership.

The June 17 dual Ultra flagship launch generated about 20,000 units sold in 5 hours, with GMV exceeding RMB 228 million. The FX Windstorm launch delivered 14,000 units sold in 5 hours and 93% positive ratings, resonating strongly with the Gen Z and delivery riders.

Now, we strengthened both offline and online channels. As of Q3, Niu surpassed 4,500 stores nationwide, with 238 net new stores added in Q3 and 800 year-to-date.

Nearly half of new stores were in the lower-tier cities, supporting deeper market penetration. Our digital ecosystem also scaled rapidly.

Niu now managed nine official flagship accounts, supported by 1,062 dealer-operated accounts. In Q3, the network generated 30,000-plus live streams, 59,000 content pieces, and 740 million impressions, with online sales representing close to 70% of our total volume.

We also expanded onto the new e-commerce platforms. On Meituan, we piloted with 10% stores, generating RMB 40 to 50 million monthly sales.

We plan to expand store coverage and motor vehicles next. On Kuaishou local services, over 2,200 stores have joined, and FX Windstorm ABS launch ranked number 2 nationally, reinforcing our brand resonance among Gen Z riders in the lower-tier market.

Now, turning into our overseas market. Q3 unfolded as expected, transitional quarter as we continued to optimize operation and preparing for our next growth cycle.

The overseas sales volume reached 14,000 units, with declining micromobility offset by encouraging progress in electric motorcycle. Despite Q3 being a seasonal low for European two-wheeler demand, our electric motorcycle sales reached approximately 2,500 units, up 160% year-over-year.

The self-operated sales accounted for 76% of total. We further accelerated our self-operated dealer network expansion.

Dealers in those direct-distribute regions grew from 120 at the start of the year to 289 in Q3, exceeding our initial target of 250. This reflects the strong brand recognition, product competitiveness, and a growing retailer confidence in Niu's direct distribution model.

With channel foundations now established, we will shift from capability building towards product rollout and deeper market penetration. The product lineup unveiled at EICMA positioned us strongly for multi-year growth.

At EICMA, the largest two-wheeler show in Milan, we showcased our international product roadmap, expanding from smart e-scooters to broader electric mobility portfolios. Highlights included a 2026 NQiX-series with Google Maps integration, featuring 125 km/h NQiX 1000 launching in Q3 2026; the all-new FQiX-series for city commuters, in L1e and L3e version for Q3 2026; the expanded XQi-series, including the 110 km/h XQi 500 street version for second half of 2026; and lastly, the Concept 06, a forward-looking, 155 km/h platform featuring AI-assisted intelligence, advanced safety.

The Niu's NQi 500 was awarded Top Award 2025 by German leading motorcycle media outlet, 1000PS, a strong validation of our product excellence. Our micromobility volume reached to 11,900 units, down 77% year-over-year, reflecting market headwinds in the US, Europe, and Asia.

Europe saw intensified price competition, while the US shifted towards a lower price model due to tariff dynamics. In Q3, we intentionally reduced promotion and shipment to avoid overstocking and protect margin during a period of pricing pressure and supply chain transition.

Given the current inventory levels in Europe and US, we expect the structural adjustment to continue for the next couple quarters. Now, look ahead, we'll continue executing our strategy of driving fast growth in the China market and scaling our international electric two-wheeler business while strategically adjusting the micromobility operation.

We expect China to remain our primary growth driver. A strong execution across the first three quarters, with breakout product each quarter, demonstrated our capability in product definition, channel activation, and brand influence.

However, we expect some uncertainty and softening in Q4 this year due to timing of the new standard implementation. The retailers have preloaded inventory in Q3, shifting some demand from Q4.

The new-standard-compliant product will ramp up from late November through Q1 2026, shifting part of the Q4 demand into Q1 2026. Combined, those factors will likely result in a relative flat year-over-year volume in Q4.

We expect growth to reaccelerate in Q1 2026 as the regulatory transition completed and the market stabilized. The full new standard electric bicycle lineup, along with 300 to 400 new stores additions in Q4, will support a strong momentum into 2026.

Now, turning into the overseas market. For electric two-wheelers, we expect strong year-over-year growth in Q4, supported by ongoing expansion of direct distribute network.

The new product introduced at EICMA will fuel the multi-year growth starting in 2026. In micromobility, we'll continue prioritizing profitability over scale in Q4, reducing promotions and focus on clearing existing inventories.

This will lead to a lower Q4 volume. We expect the adjustment to conclude in first half of 2026, with margin return to the normal level second half of 2026.

Now, with that, let me turn the call to Fion.

Thank you, Yan. Hello, everyone.

Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel-format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the third quarter figures unless I say otherwise.

All monetary figures are in RMB if not specified. As Yan just mentioned, our total sales volume for the third quarter was 466,000 units, up 49% compared to the same period of last year.

Among this, 451,000 units sold in China and remaining 14,000 units overseas. Nearly 50% of our sales volume in China came from our top three models this quarter.

The number of franchised stores in China was 4,542 at the end of third quarter. Total revenue for the third quarter amounted to 1.69 billion, an increase of 670 million or 65% percent compared to the same period of last year.

The result came in slightly ahead of our guidance, primarily due to the robust sales volume growth in China during the peak season in third quarter. China revenues were 1.62 billion, increased by 84% year-over-year and accounting for 95% of total revenues.

Of this, the scooter revenue were 1.48 billion, and this growth was primarily driven by a 74% increase in sales volume and coupled with a higher ASP. China scooter ASP was RMB 3,283, representing a nearly 7% year-over-year growth and remaining largely stable compared to the previous quarter.

This growth was primarily driven by a favorable shift in our product mix. In Q3, our top seller, MT, with a retail price range from RMB 3,699 to 4,599, continued to perform well, in the meantime, complemented by a strong contribution from the new products like the NLT and the NST range from RMB 3,899 to 600 to 6,299.

Collectively, this three top sellers accounted for nearly 50% of our total sales volume this quarter. Overseas revenue was 700 77 million, representing 5% of total revenue.

Scooter revenues, including electric motorcycles and mopeds, kick scooters, and e-bikes, amounted to 67 million, down from 130 million in the same period of last year. This decline was driven by a decreases in sales volume and ASP of kick scooters.

Overseas scooter ASP increased 90% year-over-year and 41% quarter-over-quarter to RMB 4,648 and driven by a greater proportion of revenue coming from the higher-priced electronic motorcycles and mopeds. Revenue from accessories, spare parts, and services were 145 million, representing a 8.6% of total revenue and a 51% increase compared to the same period of last year due to the increase in spare parts sales in China.

Gross margin this quarter gross profit this quarter exceeding 3 370 million, marking a significant improvement compared to 142 million during the same period of last year and 252 million last quarter. The gross margin was 21.8%, 8 ppt higher than the same period of last year and 1.7 ppt higher than the previous quarter, marking our best quarterly gross margin performance this year.

This improvement was driven by the ongoing cost reduction initiatives and economy of scales from higher sales volume in China market. Operating expenses for the third quarter were 290 7 million, increase of 48% compared to the same period of last year, and opex ratio down to 17.5%, dropped from 19.6% in the same period of last year and 21.1% in the pre- previous quarter.

Selling and marketing expenses rose by 87 million year-over-year to 215 million, primarily driven by higher spending on marketing and online promotion campaigns in China. Selling and marketing expenses representing 12.7% of revenue compared to 12.5% in the same period of last year and down from 16.1% last quarter.

R&D expenses increased by 13 million year-over-year to 43 million, primarily due to the higher staff costs and share-based compensation. R&D expenses representing 2.6% of revenue compared to 3% in the same period of last year and down from 3.5% last quarter.

G&A expenses decreased by 4 million year-over-year to 39 million, mainly due to the improved cash collection from account receivable, which resulted in the reversal of bad debt provision. G&A expenses representing 2.3% of revenue, down significantly from 4.2% in the same period of last year, while up from 1.5% last quarter, as the company benefited largely from foreign currency exchange gains in the previous quarter.

The net income was 82 million, with a net margin of 4.8% under GAAP accounting, compared to a net loss of 41 million for the same period of last year and net income of 5.9 million for last quarter. The non-GAAP net income was 88 million.

Turning to our balance sheet and cash flow, we ended the quarter with RMB 1.8 billion versus 1.1 billion last year-end in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to 433 million.

The capex amounted to 73 million 73 million, reflecting an increase of 32 million compared to the same period of last year. This can be attributed primarily to an increase in the opening of new stores and modules cost in China.

Now, let's turn to guidance. We expected the fourth quarter revenue to be in the range of RMB 737 million to 901 million, representing a year-over-year change of -10% to +10%.

Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectation, which is subject to change due to uncertainties relating to various factors. With that, we'll now open the call for any questions that you may have for us.

Operator, please go ahead.

thank you, operator, and thank you all for participating on today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Thank you.