NIU Electric releases Q1 2026 earnings report

— First-quarter revenue reached RMB 909.5 million, a year-over-year increase of 33.4%

— First-quarter net loss was RMB 93.9 million, compared to RMB 38.8 million in the same period of 2025

Beijing, China, May 18, 2026 — NIU Technologies ('NIU' or 'the Company') (NASDAQ: NIU), a global leader in smart urban mobility solutions, today announced its unaudited financial results for the first quarter ended March 31, 2026.

Highlights of financial performance for the first quarter of 2026:

· Revenue reached RMB 909.5 million, a year-over-year increase of 33.4%

Gross margin was 17.4%, compared to 17.3% in the same period last year

Net loss was RMB 93.9 million, compared to RMB 38.8 million in the same period last year

Adjusted net loss (non-GAAP) was RMB 88 million, compared to RMB 31.4 million in the same period last year

Key operational data for the first quarter of 2026:

Total vehicle sales were 261,624 units, representing a year-over-year increase of 28.7%

Vehicle sales in the domestic market reached 247,938 units, reflecting a year-over-year growth of 35.4%

Overseas market vehicle sales were 13,686 units, marking a year-over-year decline of 32.4%

As of March 31, 2026, the number of domestic stores totaled 4,542

Dr. Li Yan, CEO of the company, stated: 'We continue to expand our influence among China's younger demographic by adopting targeted strategies and partnering with two Gen Z brand ambassadors, further strengthening consumer engagement. In the first quarter of 2026, we launched our flagship models integrated with artificial intelligence. These models are equipped with the Little Ox Spirit AIOS smart vehicle system, showcasing our industry-leading position in AI applications. We focus on delivering safe, convenient, and personalized user experiences, creating a seamless and intelligent riding ecosystem.'

In overseas markets, we continue to refine our market strategy. By prioritizing the development of electric motorcycle businesses and optimizing short-distance mobility solutions, we continuously improve operations and lay a solid foundation for sustainable, long-term growth.

First quarter financial report of 2026

Operating revenuewas RMB 909.5 million, a year-on-year increase of 33.4%, mainly due to a 28.7% increase in sales volume and a 5.6% increase in average revenue per vehicle. The table below shows the breakdown of operating revenue and average revenue per vehicle:

· Vehicle revenue in the domestic market was RMB 773.6 million, a year-on-year increase of 41.6%, accounting for 93.8% of total vehicle revenue. The year-on-year increase was primarily due to a 35.4% rise in vehicle sales volume in the domestic market and a 4.5% increase in average revenue per vehicle.

· Vehicle revenue in overseas markets was RMB 50.9 million, a year-on-year decrease of 15.2%, accounting for 6.2% of total vehicle revenue. The year-on-year decline was mainly due to a drop in scooter sales in overseas markets.

· Revenue from peripheral products, accessories, and services was RMB 85 million, a year-on-year increase of 12.5%, accounting for 9.4% of total revenue. The year-on-year growth was mainly due to an increase in service revenue from the Niu Electric App and growth in revenue from peripheral products and accessories in the domestic market.

· Average revenue per vehicle was RMB 3,151, a year-on-year increase of 5.6%, mainly due to the increase in the proportion of revenue from the domestic market and its growth in average revenue per vehicle.

Cost of goods soldwas RMB 751 million, a year-on-year increase of 33.2%, primarily driven by sales growth. The average cost per vehicle (operating cost divided by the total vehicle sales volume during the same period) was RMB 2,870, an increase of 3.5% compared to RMB 2,774 in the same period last year, mainly due to provisions for unsold inventory in overseas markets.

Gross profit marginwas 17.4%, compared to 17.3% in the same period last year. The slight increase in gross margin was mainly due to strong performance in the domestic market, benefiting from product mix optimization and effective cost reduction measures, partly offset by a decline in the gross margin of scooters in overseas markets.

Operating expenseswas RMB 263.6 million, a year-on-year increase of 59.7%. Operating expenses accounted for 29.0% of operating revenue, compared to 24.2% in the same period last year.

· Selling expensesAmounted to RMB 179.7 million (including share-based compensation expenses of RMB 900,000), representing a 56.8% increase from RMB 114.6 million in the same period last year. This was mainly due to increased marketing and promotional spending of RMB 45.9 million during the Spring Festival in the Chinese market, an increase in employee costs by RMB 8.5 million, and an increase in depreciation and amortization expenses by RMB 8.3 million. Selling expenses accounted for 19.8% of operating revenue, compared to 16.8% in the same period last year.

· Research and development expensesAmounted to RMB 41.4 million (including share-based compensation expenses of RMB 1.9 million), representing a 38.8% increase from RMB 29.8 million in the same period last year. This was primarily due to an increase in design and testing expenses by RMB 5.4 million and an increase in employee costs and share-based compensation expenses by RMB 4.9 million. Research and development expenses accounted for 4.5% of operating revenue, compared to 4.4% in the same period last year.

· Administrative expensesAmounted to RMB 42.5 million (including share-based compensation expenses of RMB 2.9 million), representing a 105.8% increase from RMB 20.7 million in the same period last year. This was mainly due to foreign exchange losses of RMB 19.2 million this quarter (compared to foreign exchange gains of RMB 9.1 million in the same period last year), resulting in an increase in foreign exchange losses of RMB 28.4 million year-over-year. Administrative expenses accounted for 4.7% of operating revenue, compared to 3.0% in the same period last year.

Operating expenses excluding share-based compensationAmounted to RMB 257.8 million, representing a year-over-year increase of 63.4%, accounting for 28.3% of operating revenue, compared to 23.1% in the same period last year.

· Selling expenses excluding share-based compensationAmounted to RMB 178.8 million, representing a year-over-year increase of 58.3%, accounting for 19.7% of operating revenue, compared to 16.6% in the same period last year.

· Research and development expenses excluding share-based compensationAmounted to RMB 39.5 million, representing a year-over-year increase of 45.2%, accounting for 4.3% of operating revenue, compared to 4.0% in the same period last year.

· Management expenses after deducting share-based compensationamounted to RMB 39.6 million, representing a year-over-year increase of 123.4%, accounting for 4.3% of operating revenue, compared to 2.6% in the same period last year.

Share-based compensation expensesamounted to RMB 5.9 million, compared to RMB 7.5 million in the same period last year.

Income tax benefitamounted to RMB 6.4 million, compared to RMB 2.2 million in the same period last year.

Net lossamounted to RMB 93.9 million, compared to RMB 38.8 million in the same period last year. The net loss rate was 10.3%, compared to 5.7% in the same period last year.

Adjusted net loss (non-GAAP)amounted to RMB 88 million, compared to RMB 31.4 million in the same period last year. The adjusted net loss rate was 9.7%, compared to 4.6% in the same period last year.

Basic and diluted net loss per American Depositary Share (ADS)were both RMB 1.16 (USD 0.17).

Balance sheet

As of March 31, 2026, the company's cash and cash equivalents, time deposits, and short-term investments totaled RMB 1.1633 billion. The company’s restricted cash amounted to RMB 211 million, while its short-term bank borrowings were RMB 230 million.

Guidance

NIU Electric expects its revenue for the second quarter of 2026 to be between RMB 1.57 billion and RMB 1.821 billion, representing a year-over-year growth of 25% to 45%.

The above guidance is based on information available as of the date of this earnings release and reflects the company’s current preliminary expectations, which are subject to change.

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