Turned a profit in Q2, the persistent Niu Technologies finally sees the light at the end of the tunnel.

While the global electric vehicle industry struggles to survive amid soaring costs and price wars, Niu Technologies' turnaround financial report is like a shot in the arm. The report shows that in the second quarter, Niu Technologies achieved a net profit of 5.9 million yuan, ending the gloom of ten consecutive quarters of losses.

With the "trade-in" policy continuing to stimulate consumption upgrades, the market share of mid-to-high-end models priced above 3,000 yuan has exceeded 45%, with intelligence, long-range capabilities, and design becoming core consumer demands. Niu Technologies is undoubtedly one of the biggest beneficiaries of this structural growth.

Now, in a market environment where "everything is ready, and the east wind is coming," Niu Technologies' strategic transformation from "niche high-end" to "technology for all" has achieved initial success.

Dual Drivers of Premiumization and Channel Expansion Drive Revenue Growth Over 30%

The financial report shows that Niu Technologies achieved total revenue of 1.256 billion yuan, a year-on-year surge of 33.5%, with gross profit of 371 million yuan, compared to 255 million yuan in the same period last year. Among them, Niu Technologies' first reduction in electric scooter sales was 350,090 units, a year-on-year increase of 36.7%.

By region, electric scooter sales in China reached 318,719 units, up 53.6% year-on-year; international electric scooter sales were 31,371 units, down 35.5% year-on-year.

Niu Technologies' growth is no accident; its core lies in the precise implementation of the "technology for all" strategy. Previously focused on the high-end market, Niu Technologies in 2025 introduced features like TFT full-color screens and dual-channel ABS, originally reserved for models priced above 10,000 yuan, into the 4,000-yuan segment, directly breaking industry price barriers.

This move successfully activated the vast commuter market, driving domestic vehicle revenue up 45.4% year-on-year to 1.057 billion yuan, accounting for 84.2% of total revenue.

The fission-like expansion of the channel network was the physical lever for this sales growth. As of June 30, the number of domestic stores reached 4,304, up 38% year-on-year.

The "All in online" strategy opened up traffic conversion paths. During the 618 shopping festival, Niu Technologies' high-end product series performed exceptionally well, securing double championships in both sales volume and revenue in the electric vehicle category on Tmall and JD.com.

In addition, heavy investment in R&D has injected continuous momentum into product upgrades, with R&D spending up 35.5% year-on-year. The company has launched several industry-first technologies, including millimeter-wave radar, bidirectional Lingxi handlebars, and full-screen navigation, while consolidating its leadership in the high-end market through differentiated features like motion-activated startup and customizable screens.

Notably, its "Dual Master" series set a sales record of 228 million yuan on its launch day, further proving the brand's premiumization capabilities.

As of June 30, 2025, Niu Technologies' cash and cash equivalents, time deposits, and short-term investments totaled 1.2266 billion yuan, providing ample ammunition for future expansion.

Supply chain collaboration and innovation are equally critical. Niu Technologies has built a technology ecosystem with leading suppliers like New Energy and Saifu Brake, achieving breakthroughs in battery life and smart driving to strengthen its high-end product competitiveness.

Overall, Niu Technologies' Q2 2025 performance showcases a successful strategic transformation of a premium brand penetrating the mass market.

Battle in the Incremental Market: Can Niu Technologies Break Through the Red Ocean?

Behind this dazzling domestic performance, the smart mobility sector is entering a fiercer "red ocean" battle, while the once-promising overseas market has unexpectedly "cooled off," becoming a key battlefield for Niu Technologies' next breakthrough.

The financial report shows that Q2 overseas vehicle sales were 31,371 units, with per-unit revenue reaching 3,288 yuan, up 22.6% year-on-year, reflecting significant product premiumization.

While Ninebot has activated the overseas market with scooters, Niu Technologies is making gradual progress in internationalization. Although its distribution network covers 53 countries, it remains thin, leaving ample room for expansion in emerging markets like Southeast Asia and Latin America.

As Niu Technologies advances at home and abroad, the smart mobility sector is attracting more heavyweight players. The global smart scooter market is expected to reach $50 billion by 2025, with $15 billion in Europe and the U.S. and $8 billion in China.

Established rivals are not far behind. Ninebot reported Q2 revenue of 6.63 billion yuan, up 61.54% year-on-year, with net profit of 786 million yuan, up 70.77%. Its two-wheeler sales reached 1.3887 million units, up 77.33%.

Industry dynamics are also shifting. China's two-wheeler market in 2025 is divided among three camps: traditional brands like Yadea and Aima dominate the mass market; Ninebot leverages robotics for smart features; and Niu Technologies focuses on design and urban appeal.

In 2024, Ninebot invested 826 million yuan in R&D, enhancing user experience with AI-powered "True Smart 3.0," while Yadea's "Guan Neng" series introduced features like navigation projection and voice interaction.

Thus, differentiation in the two-wheeler market is eroding amid intensifying competition.

Finally, cost control is key to Niu Technologies' next leap. In Q1, per-unit production costs fell 12.5%, and operating expenses dropped from 32.7% to 24.2%.

In Q2, gross margin rose 3.1 percentage points to 20.1%. With a leaner structure, Niu Technologies provided optimistic guidance: Q3 revenue is expected to reach 1.433–1.638 billion yuan, up 40–60% year-on-year, driven by product innovation and channel optimization.

This suggests a new possibility—leveraging product upgrades and technology to expand globally, replicating the "technology for all" model validated in China, which could be its key to navigating the red ocean.

Conclusion

As the two-wheeler industry evolves from "electrification" to "intelligence," if competitors widen the technology gap, today's channel advantages could become tomorrow's burdens. Niu Technologies is already re-evaluating its value proposition.

With 45% market share for electric vehicles priced above 3,000 yuan in China, the premiumization and intelligence wave is reshaping the industry. The company that once defined "smart two-wheelers" is now reclaiming its throne in the name of technology for all.

Author: Sang Yu

Source: U.S. Stock Research