Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Niu Technologies Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Ms. 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 2025. The earnings press release, corporate presentation and financial spreadsheets have been posted on our Investor Relations website. This call is being webcast from 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 U.S. 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 is 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 discussions of certain non-GAAP financial measures. The press release contains a definition of non-GAAP financial measures and the 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, and hello, everyone. Thank you for joining our fourth quarter 2025 result call. 2025 was a year of continued strategic transformation for Niu. We navigate a complex regulatory shift in China, executed a successful breakthrough in electric motorcycle segment and overhaul our international distribution for micro mobility, all while significantly expand our gross margins. While our fourth quarter volume reflect the temporary friction inherent in those structural changes, the robust foundation we have built positions us perfectly for accelerated high-quality and profitable growth in 2026. Now let's turn to the numbers. In the fourth quarter, we delivered 172,000 (sic) [ 172,763 ] units, represents a 23.8% year-over-year decline. This comprised of 158,782 units in China, down 12% (sic) [ 12.9% ] year-over-year, and close to 14,000 units overseas, down 68% (sic) [ 68.4% ] year-over-year. I want to spend a minute to dive deep in both figures as they are direct results of a proactive strategic transition we outlined earlier this year. First, regarding the China market. This decline was fully anticipated results of the transition to the new national standards for the electric bicycles. As we highlighted in our previous call, production of old standard models ceased on August 31, while the retail window closed on November 30. This led to a significant inventory front-loading by our distributors and retailers in Q3 2025. Naturally, this puts the sales forward, temporarily reducing our selling volumes for Q4. However, if we evaluate the second half of 2025 as a whole, our China deliveries actually grew 38% year-over-year, confirming that our continued growth momentum for the entire year. Now turning to our overseas performance. The volume decline was deliberately driven by a strategic realignment of our micro mobility channels. In the key markets like the U.S. and Germany, we…

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 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 173,000 (sic) [ 172,763 ] units, a decrease of 24% (sic) [ 23.8% ] compared to the same period of last year. Specifically, China sales volume was 159,000 (sic) [ 158,782 ] units accounted for 92% of total sales volume. And overseas volume were 14,000 (sic) [ 13,981 ] units. For the full year 2025, total sales volume was nearly 1.2 million units, including 1.1 million units in China market and 80,000 units overseas. At the end of 2025, the number of franchise awards in China was 4,540. Total revenue in the fourth quarter was RMB 676 million (sic) [ RMB 676.2 million ], down 17% (sic) [ 17.4% ] compared to the same period of last year. To break down scooter revenues by ranging, the scooter revenues in China were RMB 545 million (sic) [ RMB 544.8 million ], down 16% (sic) [ 15.7% ] year-over-year and accounted for 94% of total scooter revenues. The decrease was mainly due to the lower gross volume and revenue per scooter. China's scooter ASP was RMB 3,431, down 3% (sic) [ 3.2% ] year-over-year and up 5% sequentially, mainly driven by the changes in product mix, with the shift from models such as MP, NLP and NSP to FX, U1 and NX models. Overseas scooter revenues, including electronic motorcycles, mopeds and e-scooters were RMB 36 million, representing…

[Operator Instructions] Our first question comes from the line of Yating Chen from CICC.

Yan and Fion, this is Yating from CICC, and I have 2 quick questions. First, could you share the current inventory situation for your kick scooters in the overseas market? And how you are thinking about the kick scooter business in 2026? Second, with the implementation of the new national standard for scooters in China, how should we think about the potential cost increase and the company's response?

Okay. This is Fion, I'll take the first question. Regarding to the inventory, actually, we already released the balance sheet figures in our earnings release, and the amount is around RMB 650 million for the whole inventory -- net inventory level. And I should say that more than 50% of our overall inventory are the aged kick scooters, which means more than RMB 300 million inventory are coming from the aged kick scooters. And that's why Yan just mentioned in the call is that in 2026, our top priority on the kick scooters is to improve the turnover of the aged inventory, especially the kick scooters, to change the business model into a more lean and straightforward and with our channel partners. And on top of that, I think for the whole year 2026 for the kick scooters, we are we are going to focus on the inventory itself instead of the new models import. And so we are -- we expected to spend the whole year 2026 to improve the inventory clearance and also to change the channel into a more healthier business model to support our going-forward kick scooter business.

Yating, this is Yan. So to address your second question on the cost increase. So we have done a few things. First, I think with the new standard, because there are material changes, yes, there will be cost increase. We also have increased our retail price, not exactly proportionally, but have increased our price to cover partial of the cost increase. Second, we are also, through our cost reduction initiatives, really through engineering to figure out what are the -- really the cost out initiatives to be implemented on each of the scooters basically through a platform standardization and also commoditize some of the common parts. That will help us to actually to reduce the BOM cost. So by doing so, I think we're in very good hands to sort of handle the cost increase with the new standard.

There are no further questions at this time. So I'll hand the call back to Dr. Yan Li for closing remarks.

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

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.