On August 10, Niu Technologies released its second-quarter earnings report for 2026.

During the period, the company achieved total revenue of 1.4404 billion yuan, up 14.7% year-over-year, with vehicle sales reaching 434,687 units, a 24.2% increase. In China, sales totaled 402,202 units, a 26.2% rise, continuing to provide the vast majority of sales growth.

From a sales perspective, Niu Technologies is maintaining the recovery trend seen since last year. In the first half of this year, the company sold a cumulative total of 696,311 vehicles, compared to 553,403 units in the same period of 2023.

However, sales growth has not fully translated into proportional improvements in revenue and profit. While second-quarter sales volumes grew by 24.2%, revenue increased by only 14.7%. The company's average revenue per vehicle dropped to 3,029 yuan, a year-over-year decline of 8.6%.

This is closely tied to shifts in Niu Technologies' current product mix.

The company disclosed during its earnings call that electric motorcycles accounted for roughly 60% of Chinese market sales in the second quarter. Management noted that compared to the mid-to-high-end electric bicycles where the company previously held a strong position, electric motorcycles have lower average selling prices and gross margins.

With the full implementation of the new national standards for electric bicycles, Niu Technologies' product structure is undergoing adjustments. Management mentioned during the earnings call that weakening demand in higher-tier cities has also impacted the mid-to-high-end electric bicycle business, which was previously a key strength.

These changes are already reflected in the profit figures. For the second quarter, Niu Technologies' gross margin stood at 16.0%, down from 20.1% in the same period last year. Gross profit was approximately 230 million yuan, also lower than the 252 million yuan recorded a year ago. The company attributed the margin decline to domestic product mix changes, rising costs, and overseas inventory clearance.

At the same time, Niu Technologies' expense investments remain at a high level. Second-quarter sales and marketing expenses were about 239 million yuan, up 18% year-over-year, while R&D expenses reached 51.5 million yuan, a 17.8% increase.

Ultimately, the company posted a net loss of 102 million yuan for the quarter, compared to a net profit of 5.88 million yuan in the same period last year. In the first half of this year, Niu Technologies accumulated a net loss of approximately 196 million yuan, widening the loss scale compared to the previous year.

Therefore, for Niu Technologies at this stage, whether sales can continue to grow is no longer the only question; the structure of that growth is equally important.

After experiencing two consecutive years of sales decline in 2022 and 2023, Niu Technologies resumed growth starting in 2024, with full-year sales further increasing to 1.192 million vehicles in 2025. However, as the proportion of products in lower price brackets rises, average revenue per vehicle and gross margins are coming under pressure, highlighting a gap between the return of scale and improved profitability.

Changes in the distribution channel are also evident. As of June 30, 2026, Niu Technologies had 4,570 domestic stores, only a slight increase from the end of the first quarter. Rather than continuing rapid store expansion, the company is now placing greater emphasis on the efficiency of its existing channels.

Management disclosed that second-quarter same-store sales grew by 24% year-over-year, while online sales surged by 50%. The online channel has become a significant component of domestic sales.

The international business remains in a phase of adjustment. Overseas sales in the second quarter increased by 3.6% year-over-year, but due to a weak performance in the first quarter, cumulative overseas sales in the first half of the year still lagged behind the same period last year. The clearance of overseas scooter inventory continues to weigh on gross margins, and the international segment's contribution to overall performance is still limited in the short term.

For the third quarter, Niu Technologies expects revenue to be between 1.863 billion yuan and 2.033 billion yuan, representing year-over-year growth of 10% to 20%. It is worth noting that the company's previous second-quarter revenue guidance was 1.570 billion yuan to 1.821 billion yuan, but the actual results fell below the low end of that range. Consequently, whether the company can achieve its new growth forecast for the third quarter will depend on sustaining domestic sales growth and potential improvements in product mix and gross margins.

Based on current data, Niu Technologies' sales recovery is relatively clear, but the quality of its operations is still being adjusted. Going forward, rather than simply tracking sales volume growth, metrics like average revenue per vehicle, gross margin, and the narrowing of losses may be more indicative of whether this growth cycle is truly translating into operational improvements.