Company overview

Niu Technologies earns most of its revenue from vehicle sales, with mainland China supplying the bulk of its business. Its vehicles include NQi electric scooters and KQi kick-scooters. In China, exclusive local distributors called city partners buy vehicles below retail price and supply franchised stores that sell to riders. Niu earns from these product sales, not franchise fees. It also sells to overseas distributors and retailers and directly to consumers online; accessories, spare parts and services contribute much less revenue.

The NIU app connects to compatible scooters to provide anti-theft alerts, battery and riding information, and diagnostics. Sales depend on keeping the NIU brand appealing, launching models riders want and maintaining its Chinese store network. Niu buys batteries, motors and other components and assembles vehicles mainly at its own facilities, so component and manufacturing costs strongly affect profitability.

Vehicles must meet local safety standards. In China, electric bicycles also need compulsory certification before sale, and non-compliant models can be barred from the market.

Most revenue comes through a Chinese operating entity that Niu controls by contract rather than owns directly, known as a variable interest entity, or VIE. This structure accommodates foreign-investment restrictions on certain services. Access to that business and its economic benefits depends on those contracts being honored and enforceable.