China’s fourth largest e-scooter maker forecast revenue growth of 40% to 60% this year, as its move into electric motorcycles and expanded store network gain traction
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Key Takeaways:
- Niu Technology reported its revenue fell 17.4% in the fourth quarter, as it fell into the red with the implementation of tougher standards for e-bikes in China
- The company forecast a return to strong growth this year, following an overhaul including a shift towards higher-end models and a big expansion of its retail network
You know things might not be so rosy when a company’s chief refers to its most recent year as a time of “continued strategic transformation,” which was how CEO Li Yan described 2025 for e-scooter maker Niu Technologies (NIU.US) on its latest quarterly earnings call. Truth be told, the fourth quarter of 2025 was the most punishing for Niu, which, like its peers, suffered sharp sales declines in China as the country implemented tough new standards for e-bikes.
The fourth-quarter sales plunge, which saw Niu’s revenue fall 17.4% year-on-year to 676.2 million yuan ($98.2 million) in the final three months of the year, resulted in an 88.1 million yuan loss for the period, according to its fourth-quarter report. That wiped out Niu’s 48.7 million yuan profit in the first nine months of the year, leaving it with a 39.4 million yuan loss for the whole year.
But Li was quick to note that implementation of the new rules led to a buying bulge in the third quarter ahead of the changes. He said a better indicator was the entire second half of the year, when the company’s China deliveries rose 38% year-on-year. What’s more, the company gave a very rosy outlook for 2026, including 30% to 50% year-on-year revenue growth for the first quarter, and even stronger 40% to 60% growth for the full year.
But investors weren’t interested in all those positive stories, and seemed to focus on the big fourth-quarter declines, which included not only a 15.7% drop in Niu’s China revenue, but a much larger 58.3% plunge in its international revenue. The stock tumbled 8.2% the day of the report’s release. …