Niu Technologies Announces Fourth Quarter and Full Year 2021 Financial Results


-- Fourth Quarter Total Volume of e-scooter sales up 58.3% year over year

-- Fourth Quarter Revenues of RMB 986.1 million, up 46.7% year over year

-- Fourth Quarter Net Income of RMB 47.6 million, compared with RMB 58.2 million in the same period of last year

-- Full Year Total volume of e-scooter sales up 72.5% year over year

-- Full Year Revenues of RMB 3,704.5 million, up 51.6% year over year

-- Full Year Net income of RMB 225.8 million, compared with net income of RMB 168.7 million in 2020

BEIJING, China, March 07, 2022 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU”, or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights

  • Revenues were RMB 986.1 million, an increase of 46.7% year over year
  • Gross margin was 22.6%, compared with 25.2% in the fourth quarter of last year
  • Net income was RMB 47.6 million, a decrease of 18.1% compared with RMB 58.2 million in the fourth quarter of last year
  • Adjusted net income (non-GAAP)1 was RMB 60.2 million, a decrease of 12.2% compared with RMB 68.6 million in the fourth quarter of last year

Fourth Quarter 2021 Operating Highlights

  • The number of e-scooters sold reached 238,188, up 58.3% year over year
  • The number of e-scooters sold in China reached 205,239, up 49.2% year over year
  • The number of e-scooters sold in the international markets was 32,949, up 155.8% year over year
  • The number of franchised stores in China was 3,108 as of December 31, 2021, an increase of 422 from September 30, 2021
  • International sales network expanded to 42 distributors covering 50 countries

Dr. Yan Li, Chief Executive Officer of the Company, commented: “We are very pleased to see another quarter of outstanding performance with 49.2% and 155.8% increase in domestic and international sales volume, respectively, amid weaker economic conditions. We further expanded our retail sales network in China and opened 422 stores during the fourth quarter. We expect our sales volume and market penetration rate will continue to increase in 2022 as we execute on growth strategy and further diversify our product offerings and expand our sales network.”

Dr. Li continued, “In Q4, we successfully delivered 14,916 units of kick-scooters in the international markets. Furthermore, we debuted five exciting new products at EICMA 2021 in Milan for the global markets, including our most powerful 125cc electric moped, the MQiGT-EVO, our first 150cc hybrid moped, the YQi, our e-bike BQi and two additional KQi series kick scooters. The launch of these new products demonstrated our continued commitment in global sustainable micro-mobility markets. We believe our diversified product portfolio and omnichannel retail network position us favorably for 2022 and beyond.”

Fourth Quarter 2021 Financial Results

Revenues were RMB 986.1 million, an increase of 46.7% year over year, due to 58.3% higher sales volume, partially offset by decreased revenues per e-scooter of 7.3%. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

Revenues
(in RMB million)
 2021
Q4
 2020
Q4
 % change
YoY
E-scooter sales from China market 682.7 461.7 +47.9%
E-scooter sales from international markets 189.4 115.6 +63.8%
E-scooter sales, sub-total 872.1 577.3 +51.1%
Accessories, spare parts and services 114.0 94.7 +20.4%
Total 986.1 672.0 +46.7%


Revenues per e-scooter
(in RMB)
 2021
Q4
 2020
Q4
 % change
YoY
E-scooter sales from China market2 3,326 3,355 -0.9%
E-scooter sales from international markets2 5,749 8,979 -36.0%
E-scooter sales 3,661 3,837 -4.6%
Accessories, spare parts and services3   479   629 -23.8%
Revenues per e-scooter 4,140 4,466 -7.3%
  • E-scooter sales revenues from China market were RMB 682.7 million, an increase of 47.9%, and represented 78.3% of total e-scooter revenues. The increase was mainly driven by retail network expansion and new product launches in China.
  • E-scooter sales revenues from international markets were RMB 189.4 million, an increase of 63.8%, and represented 21.7% of total e-scooter revenues. The increase was mainly due to the launch of our new e-motorcycles and sales of kick-scooter in overseas markets.
  • Accessories, spare parts sales and services revenues were RMB 114.0 million, an increase of 20.4% and represented 11.6% of total revenues. The increase was mainly driven by higher battery pack sales from overseas shared mobility operators.
  • The decrease of revenues per e-scooter was mainly due to sales of kick-scooters which has a lower average sales price compared with that of other e-scooters.

Cost of revenues was RMB 763.6 million, an increase of 51.8% year over year, mainly due to higher e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, was RMB 3,206, down 4.1% from RMB 3,343 in the fourth quarter 2020, mainly due to sales of kick-scooters which has a lower average cost compared with that of other e-scooters.

Gross margin was 22.6%, compared with 25.2% in the same period of 2020. The decrease was mainly due to higher raw material cost and different product mix.

Operating expenses were RMB 188.5 million, an increase of 57.1% from the same period of 2020. Operating expenses as a percentage of revenues was 19.1%, compared with 17.8% in the fourth quarter of 2020.

  • Selling and marketing expenses were RMB 99.8 million (including RMB 4.0 million of share-based compensation), an increase of 65.9% from RMB 60.1 million in the fourth quarter of 2020. The increase was mainly due to the increase in advertising and promotion expense of RMB 17.3 million, the increase in depreciation and amortization expense of RMB 13.2 million as a result of opening new franchised stores, and the increase in staff cost of RMB 9.7 million. Selling and marketing expenses as a percentage of revenues was 10.1% compared with 9.0% in the fourth quarter of 2020.
  • Research and development expenses were RMB 45.0 million (including RMB 4.6 million of share-based compensation), an increase of 51.5% from RMB 29.7 million in the fourth quarter of 2020, mainly due to the increase of professional fee for system development of RMB 7.5 million, the increase in staff cost of RMB 6.4 million, and the increase in share-based compensation expenses of RMB 1.7 million. Research and development expenses as a percentage of revenues was 4.6%, compared with 4.4% in the fourth quarter of 2020.
  • General and administrative expenses were RMB 43.7 million (including RMB 3.7 million of share-based compensation), an increase of 45.2% from RMB 30.1 million in the fourth quarter of 2020, mainly due to the increase in financial service fee of RMB 9.7 million, the increase in staff cost of RMB 5.0 million and the increase in provision for credit losses of RMB 0.9 million, partially offset by the decrease in rental expenses of RMB 1.8 million. General and administrative expenses as a percentage of revenues was 4.4%, compared with 4.5% in the fourth quarter of 2020.

Operating expenses excluding share-based compensation were RMB 176.2 million, increased by 60.6% year over year, and represented 17.9% of revenues, compared with 16.3% in the fourth quarter of 2020.

  • Selling and marketing expenses excluding share-based compensation were RMB 95.8 million, an increase of 66.7% year over year, and represented 9.7% of revenues, compared with 8.6% in the fourth quarter of 2020.
  • Research and development expenses excluding share-based compensation were RMB 40.4 million, an increase of 50.5% year over year, and represented 4.1% of revenues, compared with 4.0% in the fourth quarter of 2020.
  • General and administrative expenses excluding share-based compensation were RMB 40.0 million, an increase of 57.5% year over year, and represented 4.1% of revenues, compared with 3.8% in the fourth quarter of 2020.

Government grants were RMB 16.3 million, increased by RMB 3.0 million from the same period of 2020.

Share-based compensation was RMB 12.5 million, compared with RMB 10.4 million in the same period of 2020.

Income tax expense was RMB 9.3 million, compared with RMB 13.6 million in the same period of 2020.

Net income was RMB 47.6 million, compared with RMB 58.2 million in the fourth quarter of 2020. The net income margin was 4.8%, compared with 8.7% in the same period of 2020.

Adjusted net income (non-GAAP) was RMB 60.2 million, compared with RMB 68.6 million in the fourth quarter of 2020. The adjusted net income margin4 was 6.1%, compared with 10.2% in the same period of 2020.

Basic and diluted net income per ADS were RMB 0.62 (US$ 0.10) and RMB 0.60 (US$ 0.09), respectively.

Full Year 2021 Financial Results

Revenues were RMB 3,704.5 million, an increase of 51.6% year over year, mainly driven by 72.5% increases in e-scooter sales volume. E-scooter sales revenues from China market represented 89.9% of our total revenues from e-scooter sales, and e-scooter sales revenues from overseas markets represented 10.1% of our total revenues from e-scooter sales. The following table shows the revenues breakdown and revenues per e-scooter in the periods presented:

Revenues
(in RMB million)
 2021
Full Year
 2020
Full Year
 % change
YoY
E-scooter sales from China market 2,923.9 1,857.3 +57.4%
E-scooter sales from international markets 329.1 286.0 +15.1%
E-scooter sales, sub-total 3,253.0 2,143.3 +51.8%
Accessories, spare parts and services 451.5 301.0 +50.0%
Total 3,704.5 2,444.3 +51.6%


Revenues per e-scooter
(in RMB)
 2021
Full Year
 2020
Full Year
 % change
YoY
E-scooter sales from China market2 2,959 3,246 -8.8%
E-scooter sales from international markets2 6,597 9,694 -31.9%
E-scooter sales 3,134 3,562 -12.0%
Accessories, spare parts and services3 435 500 -13.0%
Revenues per e-scooter 3,569 4,062 -12.1%

Cost of revenues were RMB 2,891.8 million, an increase of 53.4% year over year, mainly driven by higher e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, was RMB 2,786, down 11.1% from RMB 3,133 in 2020.

Gross margin was 21.9%, decreased from 22.9% in 2020, mainly due to higher raw material cost and change in product mix as a result of the launch of various new products.

Operating expenses were RMB 609.0 million, an increase of 48.2% from RMB 411.0 million in 2020. Operating expenses as a percentage of revenues was 16.4%, compared with 16.8% in 2020.

Operating expenses excluding share-based compensation were RMB 562.7 million, an increase of 51.3% year over year, and represented 15.2% of revenues, compared with 15.2% in 2020.

Government grants were RMB 48.7 million, increased by 26.3 million compared with the year of 2020.

Share-based compensation was RMB 47.2 million, an increase of RMB 7.6 million from RMB 39.6 million in 2020.

Income tax expense was RMB 47.0 million, an increase of RMB 25.9 million from the RMB 21.1 million in 2020.

Net income was RMB 225.8 million, an increase of RMB 57.1 million from a net income of RMB 168.7 million in 2020. The net income margin was 6.1%, compared with 6.9% in 2020.

Adjusted net income (non-GAAP) was RMB 273.0 million, compared with an adjusted net income of RMB 208.3 million in 2020. The adjusted net income margin4 was 7.4% in 2021, compared with an adjusted net income margin of 8.5% in 2020.

Basic and diluted net income per ADS were RMB 2.94 (US$ 0.46) and RMB 2.81 (US$ 0.44) respectively.

Balance Sheet
As of December 31, 2021, the Company had cash, term deposits and short-term investments of RMB 1,113.6 million in aggregate. The Company had restricted cash of RMB 224.0 million and short-term bank borrowings of RMB 180.0 million.

Business Outlook
NIU expects revenues of the first quarter 2022 to be in the range of RMB 657 million to RMB 712 million, representing a year-over-year increase of 20% to 30%. NIU expects the sales volume for full year 2022 to be in the range of 1.5 million to 1.7 million units, representing a year-over-year increase of 45% to 64%.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectation, which is subject to change in light of uncertainties and situations related to how COVID-19 develops.

Conference Call

The Company will host an earnings conference call on Monday, March 7, 2022 at 8:00 AM U.S. Eastern Time (9:00 PM Beijing/Hong Kong Time) to discuss its fourth quarter and full year 2021 financial and business results and provide a corporate update.

To join via phone, participants need to register in advance of the conference call using the link provided below. Upon registration, participants will receive dial-in numbers, an event passcode, and a unique registrant ID, which will be used to join the conference call.

Event:Niu Technologies Fourth Quarter and Full Year 2021 Earnings Conference Call
Registration Link:http://apac.directeventreg.com/registration/event/9290059
Conference ID:9290059

A live and archived webcast of the conference call will be available on the investor relations website at https://ir.niu.com/news-and-events/webcasts-and-presentations.

A replay of the conference call can be accessed by phone two hours later at the following numbers until March 14, 2022.

United States+1-855-452-5696
International+61-281-990-299
Hong Kong800-963-117
Mainland China400-602-2065
Conference ID9290059

About NIU

As the world’s leading provider of smart urban mobility solutions, NIU designs, manufactures and sells high-performance electric motorcycles, mopeds, bicycles and kick-scooters. NIU has a product portfolio consisting of ten series, four e-scooter series, including NQi, MQi and UQi and Gova, two urban commuter electric motorcycles series RQi and TQi, a hybrid motorcycles series YQi, a performance bicycle series NIU Aero, two micro-mobility series, the kick-scooter series, KQi, and the e-bike series, BQi. Different series of products address the needs of different segments of modern urban residents and resolve the demands of different scenarios of urban travel, while being united through a common design language that emphasizes style, freedom and technology. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to offer the products and services. For more information, please visit www.niu.com.

Use of Non-GAAP Financial Measures

To supplement NIU’s consolidated financial results presented in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), NIU uses the following non-GAAP financial measures: adjusted net income and adjusted net income margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. NIU believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to NIU’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Adjusted net income is defined as net income excluding share-based compensation expenses. Adjusted net income margin is defined as adjusted net income as a percentage of the revenues.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP and Non-GAAP Results”.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the readers. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 6.3726 to US$ 1.00, the exchange rate in effect as of December 31, 2021, as set forth in the H.10 Statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as NIU’s strategic and operational plans, contain forward-looking statements. NIU may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIU’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIU’s strategies; NIU’s future business development, financial condition and results of operations; NIU’s ability to maintain and enhance its “NIU” brand; its ability to innovate and successfully launch new products and services; its ability to maintain and expand its offline distribution network; its ability to satisfy the mandated safety standards relating to e-scooters; its ability to secure supply of components and raw materials used in e-scooters; its ability to manufacture, launch and sell smart e-scooters meeting customer expectations; its ability to grow collaboration with operation partners; its ability to control costs associated with its operations; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIU’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and NIU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact:

Niu Technologies
E-mail: ir@niu.com
  

NIU TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
      
 As of
 December 31, December 31, December 31,
 2020  2021  2021 
  RMB   RMB  US$
ASSETS     
Current assets     
Cash227,004,137  208,373,759  32,698,390 
Term deposits-current130,498,000  95,635,500  15,007,297 
Restricted cash168,469,077  223,971,197  35,145,968 
Short-term investments745,608,877  773,678,455  121,407,032 
Accounts receivable, net101,320,063  268,557,176  42,142,481 
Inventories142,166,179  269,637,042  42,311,936 
Prepayments and other current assets32,832,088  56,061,263  8,797,236 
Total current assets 1,547,898,421    1,895,914,392    297,510,340  
      
Non-current assets     
Term deposits-non-current-  35,939,250  5,639,653 
Property, plant and equipment, net199,045,061  397,215,911  62,331,844 
Intangible assets, net5,607,101  3,668,189  575,619 
Operating lease right-of-use assets, net-  94,201,263  14,782,234 
Land use rights, net48,835,120  -  - 
Deferred income tax assets14,593,376  11,907,344  1,868,522 
Other non-current assets30,830,304  2,367,064  371,444 
Total non-current assets 298,910,962    545,299,021    85,569,316  
      
Total assets 1,846,809,383    2,441,213,413    383,079,656  
      
LIABILITIES     
Current liabilities     
Short-term bank borrowings180,000,000  180,000,000  28,245,928 
Notes payable-  143,622,874  22,537,563 
Accounts payable395,826,435  538,930,163  84,569,903 
Income taxes payable14,555,094  17,601,525  2,762,063 
Advances from customers40,062,189  17,266,994  2,709,568 
Deferred revenue-current21,155,634  32,757,740  5,140,404 
Accrued expenses and other current liabilities171,657,604  198,904,558  31,212,466 
Total current liabilities 823,256,956    1,129,083,854    177,177,895  
      
Deferred revenue-non-current4,176,458  10,693,692  1,678,074 
Deferred income tax liabilities1,109,479  1,992,388  312,649 
Operating lease liabilities-non-current-  13,921,859  2,184,643 
Other non-current liabilities24,892,246  20,967,430  3,290,247 
Total non-current liabilities 30,178,183    47,575,369    7,465,613  
      
Total liabilities 853,435,139    1,176,659,223    184,643,508  
      
SHAREHOLDERS’ EQUITY:     
Class A ordinary shares87,300  89,038  13,972 
Class B ordinary shares11,202  10,316  1,619 
Additional paid-in capital1,801,940,071  1,855,403,759  291,153,338 
Accumulated other comprehensive loss(43,016,027) (51,121,030) (8,022,005)
Accumulated deficit(765,648,302) (539,827,893) (84,710,776)
Total shareholders’ equity 993,374,244    1,264,554,190    198,436,148  
      
Total liabilities and shareholders’ equity 1,846,809,383    2,441,213,413    383,079,656  
      


NIU TECHNOLOGIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
          
 Three Months Ended December 31, Year ended December 31,
 2020  2021  2020  2021 
 RMB RMBUS$ RMB RMBUS$
Revenues671,989,578  986,059,243 154,734,213  2,444,328,764  3,704,537,419 581,322,760 
Cost of revenues(a)(502,944,163) (763,551,340)(119,817,867) (1,885,180,256) (2,891,758,188)(453,779,962)
Gross profit 169,045,415    222,507,903   34,916,346    559,148,508    812,779,231   127,542,798  
          
Operating expenses:         
Selling and marketing expenses(a)(60,147,102) (99,766,838)(15,655,594) (200,761,383) (332,007,462)(52,099,216)
Research and development expenses(a)(29,723,694) (45,022,809)(7,065,061) (105,335,357) (135,218,399)(21,218,717)
General and administrative expenses(a)(30,078,909) (43,681,411)(6,854,567) (104,858,814) (141,798,910)(22,251,343)
Total operating expenses (119,949,705)  (188,471,058) (29,575,222)  (410,955,554)  (609,024,771) (95,569,276)
Government grants13,239,121  16,269,976 2,553,114  22,441,492  48,726,818 7,646,301 
Operating income 62,334,831    50,306,821   7,894,238    170,634,446    252,481,278   39,619,823  
          
Interest expense(1,770,944) (1,266,391)(198,724) (7,380,833) (6,167,805)(967,863)
Interest income1,714,191  1,538,551 241,432  8,787,309  5,375,969 843,607 
Investment income9,488,916  6,327,170 992,871  17,697,800  21,167,575 3,321,654 
Income before income taxes 71,766,994    56,906,151   8,929,817    189,738,722    272,857,017   42,817,221  
Income tax expense(13,571,895) (9,259,409)(1,453,003) (21,086,256) (47,036,608)(7,381,070)
Net income 58,195,099    47,646,742   7,476,814    168,652,466    225,820,409   35,436,151  
          
Other comprehensive income (loss)         
Foreign currency translation adjustment(15,473,522) (7,080,675)(1,111,112) (30,137,470) (9,657,187)(1,515,423)
Unrealized gain (loss) on available for sale securities, net(2,709,593) 823,602 129,241  (510,333) 1,552,184 243,572 
Comprehensive income 40,011,984    41,389,669   6,494,943    138,004,663    217,715,406   34,164,300  
Net income per ordinary share         
—Basic0.38  0.31 0.05  1.12  1.47 0.23 
—Diluted0.36  0.30 0.05  1.07  1.41 0.22 
Net income per ADS         
—Basic0.76  0.62 0.10  2.24  2.94 0.46 
—Diluted0.73  0.60 0.09  2.14  2.81 0.44 
          
Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income per ordinary share     
—Basic152,144,872  154,385,703 154,385,703  150,897,412  153,672,358 153,672,358 
—Diluted159,878,440  159,588,209 159,588,209  157,835,868  160,460,976 160,460,976 
Weighted average number of ADS outstanding used in computing net income per ADS         
—Basic76,072,436  77,192,852 77,192,852  75,448,706  76,836,179 76,836,179 
—Diluted79,939,220  79,794,105 79,794,105  78,917,934  80,230,488 80,230,488 
          
Note:         
(a) Includes share-based compensation expense as follows:         
 Three Months Ended December 31, Year ended December 31,
 2020  2021  2020  2021 
 RMB RMBUS$ RMB RMBUS$
Cost of revenues163,783  256,904 40,314  643,683  846,833 132,887 
Selling and marketing expenses2,671,595  3,973,140 623,472  9,945,473  13,292,632 2,085,904 
Research and development expenses2,849,169  4,586,137 719,665  10,917,637  17,062,024 2,677,404 
General and administrative expenses4,704,964  3,722,178 584,091  18,102,122  16,016,667 2,513,365 
Total share-based compensation expense 10,389,511    12,538,359   1,967,542    39,608,915    47,218,156   7,409,560  
          


NIU TECHNOLOGIES
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
          
 Three Months Ended December 31, Year ended December 31,
 2020 2021 2020 2021
 RMB  RMB US$ RMB  RMB US$
Net Income 58,195,099   47,646,742 7,476,814   168,652,466   225,820,409 35,436,151
Add:         
Share-based compensation expense10,389,511 12,538,3591,967,542 39,608,915 47,218,1567,409,560
Adjusted net income 68,584,610   60,185,101 9,444,356   208,261,381   273,038,565 42,845,711
          

_____________________________________________________________________________
1 Adjusted net income (non-GAAP) is defined as net income excluding share-based compensation expense
2 Revenues per e-scooter on e-scooter sales from China or international markets is defined as e-scooter sales revenues from China or international markets divided by the number of e-scooters sold in China or international market in a specific period
3 Revenues per e-scooter on accessories, spare parts and services is defined as accessories, spare parts and services revenues divided by the total number of e-scooters sold in a specific period
4 Adjusted net income margin is defined as adjusted net income (non-GAAP) as a percentage of the revenues