Thank you, Operator, and hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the first quarter of 2026.

The earnings press release, corporate presentation, and financial spreadsheets has 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 provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statement 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 to update any forward-looking statements, 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, and thank you for joining our first quarter 2026 results call.

The first quarter of 2026 was a period of high-quality execution and strategic resilience within a complex regulatory environment. The total sales volume reached 261,000 units, representing a robust of 28.7% year-over-year increase.

Revenue for the quarter reached RMB 909.52 million, up 33.4% year-over-year. In China, the sales volume increased 35.4% to nearly 248,000 units.

This growth was powered by major structural breakthrough in our electric motorcycle segment, which successfully offset a temporary contraction in the electric bicycle market as the new national standard took full effect. Overseas, the sales of 13,686 units reflected a 32.4% decline.

This remains a planned result of our ongoing channel structure optimization and disciplined inventory management. We're staying complete focus on our core objective, prioritizing healthy retail sell-through and long-term profitability over short-term shipping volume.

Now, let me walk through our China and overseas operation in more detail. In China, our first quarter sales volume reached 247,938 units, a 35.4% increase year-over-year.

While this growth is robust, internal data reveals a significant positive structural evolution of our brand. To understand this quarter, we must look at the divergence between two product categories.

First, in the electric motorcycle category, the segment surged by a staggering 3x year-over-year increase. Building on our momentum that begins in Q4 last year with our Wizardstorm product line, we further accelerate our growth in the electric motorcycle market, expanding our footprint directly into Tier 2 and Tier 3 cities.

This is no longer just a temporary trend; it's a definitive market breakthrough proving Niu's ability to rapid scale and capture the meaningful volume in this segment. In the electric bicycle segment, the sales have softened.

This was fully anticipated as the market remain a transitional waiting period as the new standard rolling out last December. We're managing this period deliberately by rolling out our new product lines in a phased approach, ensuring we're perfectly positioned to capture the high-quality volume as consumer demand returns.

Now, this shift has fundamentally redefined our geographic footprint as well. Historically, Niu has been perceived as Tier 1 city brand, with the market represents 60% of sales.

In Q1, we saw the Tier 1 and new Tier 1 city softened, where the Tier 2 and Tier 3 cities grew at a faster pace, fueled by the rapid adoption of electric motorcycles. This represents a massive strategic milestone.

It proves Niu's brand equity is successful scaling beyond the urban elites and penetrating the broader mass-premium China market. Now, this shift has set a powerful foundation for 2026.

By breaking through the lower-tier motorcycle market, we have added a new growth engine. When the electric motorcycle market inevitably recovers, our total growth will rebound with double the force.

To ensure we're the first to capture that recovery, we made deliberate strategic decision to frontload our investment in branding, R&D, and a new product launch in Q1. Now, in branding and marketing, recognizing 2026 is the pivotal year for our brand's revolution, we made a proactive decision to frontload our marketing investment in this quarter.

We chose to capture the consumer mindshare ahead of the curve by building a massive brand awareness in Q1. We have ensured, as the new national standard transition stabilizes, Niu is well positioned to capture this unmet demand.

In Q1, we executed three major saturation initiatives. First, our dual global ambassador strategy.

In late January, we officially announced Wu Lei and Song Yuqi as Niu's dual global brand ambassador, the first strategy of its kind in our industry. Wu Lei's image as a high-performance outdoor enthusiast resonated with our core premium users, while Song Yuqi significantly extend our reach among Gen Z and female audiences.

This campaign was activated across 40-plus cities and 80-plus global landmarks, generating an unprecedented 3.4 billion impressions. Second, our Spring Festival saturation campaign.

We capitalized on the highest frequency travel period in China, a large-scale offline campaign across 37 cities, 42 transportation hubs, and nearly 3,000 cinemas. This generated over 400 million impressions, firmly embedding the message premium smart equals Niu in the mind of travelers.

Third, the 2026 technology launch event. On March 17th, we unveiled our next-generation AI mobility strategy.

This event was not just a product reveal, but also repositioned Niu as technology leader in the AI era. With over 130 media outlets and 460 million impressions, we have redefined what smart two-wheelers can be.

Now, those intensive branding activities led to a 4x-plus year-over-year increase in the marketing expense for Q1. This was a one-time frontloading of our annual budget.

Historically, the first quarter has seen a lower marketing spend due to seasonal retail trends. However, we chose to strategically shift our marketing weights in Q1 this year to ignite the brand momentum for the entire fiscal year.

Now, as we move into Q2 and beyond, you will see that our marketing-to-revenue ratio normalize. We have already established deep brand equity required to drive our 2026 growth target.

Now, we're transitioned directly from this investment phase to execution and harvest phase. Now, into R&D and technology, the technology and continuous innovation remained core to Niu's long-term strategy, as they are fundamental to our ability to compete far beyond simple pricing and basic hardware specifications.

Our primary technology focus this year is to bring the power of AI to the electric two-wheeler industry, zeroing in on three major development areas: the AI operating system, intelligent chassis system, and intelligent riding technology. First, on the Niu's AIOS, launched at March 17th event, the Niu AIOS is our cornerstone to redefining the next era of intelligent riding.

As the industry's first mass-produced AI dashboard system, it represents a technological milestone, integrating an AI-enabled voice assistant with high-performance automotive-grade operating system. Now, the second is the intelligent chassis platform.

We also introduced our next-generation intelligent chassis platform. This platform is engineered to integrate advanced safety and performance systems, including ABS, TCS, continuous damping control, battery management system, and lighting system into a single, unified vehicle-level architecture.

Based on this platform, we aim to introduce several industry-first features for mass-produced two-wheelers, such as adaptive driving beam AI headlights and adaptive VC suspension. Lastly, through a strategic partnership with the leading automotive-grade technology companies, we're bringing advanced rider assistance functionalities to the two-wheeler segments.

This includes integrating cutting-edge hardwares like advanced visual recognition systems and high-performance processing chips. Now, supported directly by those core technologies, we launched the industry-first AI-enabled electric bicycles, the NXT2 Ultra, as our flagship model.

Now, talking about our product matrix, our product strategy in Q1 was clear: it's driving a aggressive growth in the electric motorcycle segment while building a dominant portfolio for the electric bicycle recovery. Now, first, to lead the electric bicycle transition, we launched the NXT2 series, priced from RMB 5,299 to RMB 12,999.

The flagship NXT2 Ultra is the industry-first AI-powered e-bicycle featuring our AIOS, dual-channel ABS, and millimeter-wave radar. This isn't just a bike; it's a statement that Niu owns the high-end market.

Second, we expand our total addressable market with the Y-Series. We officially entered the female mobility segment with the Y-Series, endorsed by our ambassador Song Yuqi at a competitive RMB 3,000 to 4,000 price point.

Third, the NX Marathon, our new volume engine. To capitalize our 3x growth in the electric motorcycle market, we launched the NX Marathon at RMB 6,499.

This model targeted long-range family commuters, offers a 146-kilometer drive range and flagship features, such as Magic Wheel, at a mainstream price point. The market response was immediate.

Within just 5 hours of launch, the NX Marathon generated over RMB 91 million in sales, ranking number 1 across major e-commerce platforms. Those performance proves our hero product strategy is working.

Now, in Q1, we continue to strengthen our both the offline retail sales and online ecosystem operations. In terms of online channels, it delivered another standout quarter.

The online sales increased by 53%, accounting for approximately 46% of domestic retail sales, demonstrating a continuous strength of our online-to-offline operation model. Also on Douyin, we conduct more than 32,000 livestreams, generating over 270 million impressions.

We also continue to expand on Kuaishou and Meituan, further broadening our digital retail coverage. Now, turning to our international operations, we're navigating a deliberate structural transition to prioritize healthy fundamentals.

Our high-margin electric motorcycle business remained a key strategic priority and is showing a strong momentum. Shipment reached more than 2,000 units, a 29% year-over-year increase.

Our European dealer network expanded from 307 to 360 active locations this quarter. Now, in the micromobility segment, international sales was down 37% year-over-year.

First, this is regarding to the channel distribution restructuring. During the first quarter, we complete a major structural shift to a leaner distribution model in our key market like Germany and U.S.

This critical action allows us to significantly minimize ongoing channel operation expenses. Consequently, Q1 served as transition phase where the major retail partner, such as Best Buy in the United States and MediaMarkt in Germany, focused primarily on sellout of their existing retail inventories.

The fresh stock-up period under the new distribution model is only beginning now in Q2. Second, reflecting our current inventory positions, we're holding elevated volume of micromobility inventories in Europe and the United States, stemming from lower than anticipated sales in 2025.

Our primary mandate for the remainder of 2026 is clear: is to accelerate unit sales volume and aggressively reduce the inventory backlog back to a lean and healthy baseline. To execute this inventory clearance swiftly and protect against long-term operation drag, we're implementing targeted price promotion throughout the rest of the year, especially on older model products.

Those effort will depress our micromobility contribution margins throughout the year. While this discounting strategy present a short-term headwind to our profitability matrix, it is necessary to bring our global micromobility operation back to a clean, optimized, and highly stable foundation for the close of 2026.

Now, looking ahead, we will continue executing our strategy with a focus on sustainable and quality-driven growth. In China, we expect the electric bicycle market will recover gradually throughout Q2.

We are taking a cautious view. To lead this market, we're executing a phased rollout of our full compliant product mix, anchored by the NXT2 and the Y-Series.

Those position us with a comprehensive premium lineup ahead of the critical June and Q3 selling seasons. Meanwhile, our electric motorcycle category will continue to be our primary growth engine.

We have additional model targeting female riders and technology enthusiasts planned for Q2 and second half of the year. The upcoming 618 Shopping Festival will be the first major retail test of those expanded portfolios.

Now, overseas, our direct-to-retail strategy in electric motorcycles is gaining speed. We expect our dealer count to surpass 400 locations by the year-end, supporting both volume growth and improved profitability.

In the micromobility, as I detailed moments ago, our absolute operation priority for the remainder of 2026 is to aggressive inventory normalization and maximizing retail sell-through. We expect our leaner channel transition to finalize throughout the first half of this year, with our broader promotional clearance and inventory normalization largely conclude by the second half of 2026.

In summary, we have used the first quarter to do the heavy lifting required for a transformative year. By frontloading our marketing, investing deeply in our AI technology roadmap, and diversifying our product portfolios, and clean up our global channels, we have moved beyond the transition phase.

We believe those strategic actions have laid a solid foundation to drive sustainable and high-quality growth in Q2 and will serve as a catalyst to accelerate our growth in the latter half of the year. We're confident in our path and focused on execution.

Now, I'll turn over to our CFO, Fion Zhou, to talk about the financials.

Thank you, Yan, and hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded the Excel-format figures to our IR website for your easy reference.

As I review our financial results, I'm referring the first quarter figures unless I say otherwise, and all monetary figures are in RMB if not specified. As Yan just mentioned, our total sales volume for the first quarter was 262,000 units, up 29% compared to the same period of last year.

248,000 units were sold in China, while the remaining 14,000 units sold overseas. Over 60% of our sales volume in China came from the top three bestsellers.

The total revenue for the first quarter amounted to 910 million, an increase of 228 million or 33% compared to the same period of last year. China revenue were 854 million, accounting for 94% of the total revenue.

Of this, the scooter revenue was 774 million, a year-over-year increase of 42%, and this growth was primarily driven by our sales volume and improvement in the revenue per e-scooters. China scooter ASP were RMB 3,120, up nearly 5% year-over-year.

While the overseas revenue was 56 million, representing a 6% of the total revenue. The scooter revenue, including electronic motorcycles, mopeds, kick-scooters, and e-bikes, amounted to 51 million, down from 60 million in the same period of last year, and this decline was driven by the lower sales volume and reduced the revenue per kick-scooters, partially offset by a higher revenue per electronic motorcycle and mopeds, which command higher retail prices.

The sales volume in international market shifted in favor of the electronic motorcycle and mopeds category. The premium pricing of this product further contributed to a year-over-year increase in the ASP of overseas scooters, which rose from RMB 2,962 to RMB 3,716.

The revenue from accessories, spare parts, and services was 85 million, a 13% increase compared to the same period of last year, mainly driven by the higher revenue from new services. The gross profit for this quarter exceeded 159 million, marking a significant improvement compared to 118 million during the same period of last year.

The gross margin was 17.4%, 0.1 ppt higher compared to the same period of last year and 2.1 ppt higher than the previous quarter. The China domestic gross margin improved due to a favorable high-margin product mix, which boosted the overall gross margin by 2 ppts.

However, this gains were offset by a 1.9 ppt drag from the lower kick-scooters margin. The operating expenses for the first quarter was 264 million, increased 99 million or 60% compared to the same period of last year.

The OPEX ratio was 29% compare from the 24.2% in the same period of last year, but down from 30.5% in the last quarter. Selling and marketing expenses rose by 65 million year-over-year to 180 million, primarily driven by the intensified marketing initiatives in domestic market during the holiday season, as well as a higher depreciation and amortization expenses and staff cost.

Selling and marketing expenses accounted for 19.8% of revenue, up from 16.8% in the same period of last year, but down from 21.3% in last quarter. R&D expenses increased by 12 million year-over-year to 41 million, primarily due to an increase in design and testing cost, as well as the staff cost.

The R&D expenses representing 4.5% of revenue compared to 4.4% in the same period of last year, but down from 7.3% in last quarter. G&A expenses increased by 22 million year-over-year to 42 million, largely driven by an increase from foreign currency exchange losses.

The G&A expenses constitute 4.7% of revenue, up from 3% in the same period of last year and 1.8% in last quarter. Excluding the impact of foreign currency exchanges, the G&A expenses were 23 million, compared to 30 million in the same period of last year.

In the first quarter, we had a net loss of 94 million with a net loss margin of 10.3% under GAAP accounting, compared to a net loss of 39 million with a net loss margin of 5.7% for the same period of last year. The non-GAAP net loss was 88 million with a non-GAAP net loss margin of 9.7%.

Turning to our balance sheet and cash flow, we ended this quarter with RMB 1.4 billion, remains flat compared to the end of last year, in cash, restricted cash, term deposits, and short-term investments. Our operating cash inflow amounted to 131 million.

CapEx for the first quarter amounted to 70 million, reflecting an increase of 46 million compared to the same period of last year, and this can be primarily attributed to an increase in opening of new stores and mold cost in China. Now let's turn to guidance.

We expected the second quarter revenue to be in the range of RMB 1.57 billion to 1.82 billion, an increase of 25% to 45% year-over-year. 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 a various factors.

With that, let's 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.