Ladies and gentlemen, thank you for standing by. Welcome to Niu Technologies Fourth Quarter 2024 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. Please be advised that today's conference is being recorded. If you have any objections, you may disconnect at this time. I would like now to turn the conference over to Kristal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead.

Thank you, operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter and full year 2024. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from our 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 provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve 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 included in the 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 include discussion of certain non-GAAP financial measures, and press release contains a definition of non-GAAP financial measures and 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. Thank you for joining us today. So, in the fourth quarter of 2024, we achieved a total sales volume of 226,600 units, marking a significant 65% year-over-year growth. Behind this strong performance was 65% year-over-year increase in sales volume in China, reaching 182,000 units, and 64% year-over-year growth in overseas with 44,000 units sold. Total revenue for the fourth quarter was RMB819 million, reflecting a 71% increase compared with same period last year. Those results closed out the financial year for 2024 on a strong note. For the full year, we recorded total sales volume of 924,000 units, representing a 30% year-over-year increase. Total revenue for the year reached RMB3.29 billion, up 24% from 2023. This rebound in growth underscores the effectiveness of our strategic initiatives. Throughout 2024, we remained focused on expanding our product offerings, strengthening sales channels and broaden our market reach. Our return on growth trajectory is a testament to all those efforts. As we build on this momentum, we remain committed to refine our strategy to achieve ambitious targets and adapt to evolving market dynamics. So, taking a closer look at our performance in China, sales volume reached 182,000 units in this quarter. Our focused product portfolio emphasized on technology innovation, expanded sales channel and the targeted market initiatives were key drivers for the strong domestic performance. For the entire year of 2024, we remained laser-focused in refining our signature product lineup, emphasizing our core N, M and U series, while also introducing the new F series as a key addition. We expanded our bestseller strategy, further strengthening our leadership in the mid- to high-end segments with robust and competitive product portfolios. Beyond innovation, we took extra steps to prioritize product safety by subjecting our models to rigorous testing standards. Niu…

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 Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the fourth 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 fourth quarter was 227,000 units, an increase of 65% compared to the same period of last year. Specifically speaking, China sales volume was 182,000 units, 80% of the total sales volume and overseas was 44,000 units, taking around 20% of the total sales volume. And for the full year 2024, the total sales volume was 924,000 units, including 759,000 units in China and 165,000 units overseas. Total revenue for the fourth quarter was RMB819 million, up 71% compared to the same period of last year. To break down the scooter revenues by ranging, scooter revenues in China were RMB646 million, up 82% year-over-year and represented 88% of the total scooter revenues. The increase was mainly due to the increased sales volume and revenue per scooter in China. China e-scooters ASP reached RMB3,544, 15% higher on a quarter-over-quarter basis and 10% higher on a year-over-year basis. The overseas scooter revenue, including kick-scooters, e-mopeds and e-motorcycles, were RMB87 million, representing 12% of the total e-scooter revenues. The branded scooter ASP decreased to nearly RMB2,000, down around 10% year-over-year and mainly driven by the higher sales contribution of the kick-scooters. Accessory, spare parts and services revenue were RMB86 million, up 33% year-over-year and representing nearly 10% of the total revenues. The increase was mainly due to an increase in accessory spare part sales in both China and international markets. For…

Thank you. [Operator Instructions] And the first question comes from Yating Chen with CICC. Your line is now open.

Hello. This is Yating from CICC. And I have two questions. The first question is, what is your sales target for kick-scooters in 2025? And considering the difficulty of achieving profitability in the kick-scooter business, what is your long-term plan for this business? This is my first question.

So, I think it's a good question. So, for the kick-scooters, we're looking at probably -- last year, we did about 160,000-plus units. So, we're looking at anywhere between roughly 30% growth to -- 30% to 50% growth for 2025. I think with the kick-scooters business, I think investors are too concerned about profitability. The issue with the last couple of years are, one, it's actually due to the high US tariff expected. And that -- as we mentioned in the call, that's being actually addressed starting to address last year, but really the first scooter being out of market is really from Southeast Asia manufacturing, actually, January this year. And actually, the tariff will [now be] (ph) higher from 25% to potential 45% this year. So, all players -- or all product, all players actually increased the retail price in the United States. So that actually basically gave us a good room for margins. So, we expect the kick-scooters actually to return profitable this year.

Okay. Thank you very much. And my second question is about domestic market. Considering your new product planning and the channel expansion plans, what is your outlook for average selling price and the gross profit margin in domestic market in 2025? Because we have seen a significant decline of gross profit margin in 4Q '24.

Okay. This is Fion. I'll take this question. Actually, in 2025, we already finished the quarter one. Due to the trends from the consumer markets, our high-end or so-called the premium series products are still popular in our -- from our consumers' demand, which means the retail price -- the majority of the our sales are coming from the retail price above RMB5,000. This is maintained the same level in 2024. And this year, since we are going to launch several series of the new models, as Yan just mentioned, to demonstrate our product smart functions and also the design advantages, we are going to maintain the high-end market player in the two-wheeler market in the domestic markets. And we expect the ASP in the domestic market will not drop, but we may expect it a slightly increase in our ASP in the domestic market, but not a dramatic increase in ASP. Since right now, our premium series are almost the 70% in our domestic sales. So, in 2025, we expect the concentration among the premium and the mass premium product series, which will help us to get that slightly increase in the ASP in domestic markets. And talking about the gross margin in the domestic market, actually, along with the sales volume in the domestic market increase, we may get the benefit from the scale of the economy, especially in the BOM cost, and also the other production costs like the staff cost and the amortization on the module cost, those non-BOM cost, which will help us to improve the gross margin in the domestic market product. And we also think about the extra portion of the margin give up on the -- to our sales distributor partners when they think about to regain those gross profits from 2025, but it's still in the decision making process. Along with the new stores opened, continued, if we get the success store expansion, we will delay those profits getting back. And -- but both factors will give us an upside from -- in the gross margin. Either of them will help us improve the domestic gross margin. So, regarding the ASP and gross margin, we'll expect a positive effect in 2025.

Thank you for your sharing. It's very clear. And we are -- and we expect the company's -- the positive change in 2024 -- 2025. Thank you very much. That's all my questions.

[Operator Instructions] And our next question will come from [Allen Lee] (ph) with Guotai Junan Securities. Your line is open.

Okay. Can you hear me?

Yes, clearly. Please go ahead.

Okay. Thank you for taking my questions. I have two questions here. The first one is that we have provided guidance on annual sales, which shows a high growth rate. May I ask if you can provide guidance on the expected net profit margin by 2025? And how much net profit margin can the company achieve within two or three years?

Well, actually 2025 is a recovering year to us. And we are not going to share the net profit with the market yet. But 2025, we are able to get the profitability overall -- for the overall listing co. But we will -- since we are going to release the quarter results every quarter, this frequency is good enough for the investors to follow us on the performance on the net profit. So normally, we will follow the general practice as the other US listing company. We only provided the guidance to the sales volume, not the top-line. Top-line, we will give the guidance every quarter.

Okay. And my second question is that, which quarter in 2025 is expected to see the company's net profit turn from loss to profit, yes?

Well, good question. Actually, the quarter -- first quarter is the lag quarter in our industry. This industry is quite seasonal. So, for the other competitors, actually, the first quarter is the last season as well. We expect to see the quarterly profit in the second quarter, which means from April to June, those three months, we will get the quarterly profits this year. Actually, the second quarter is also kind of like the second peak quarter every year. It will contain around 25% to 30% of the revenue each year. And also for the international market, the second quarter, no matter the weather or the logistic, back into the normal level. And both the domestic market and international market are right on the right track in the second quarter. So, we expected the second quarter will be the profit.

Great. Thank you for answering my question. That's all.

At this time, I show no further questions in the queue. I would now like to turn the call back over to Mr. Li for closing remarks.

Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on progress. Thank you.

This does conclude today's conference call. Thank you for your participation. You may now disconnect.