Recently, Xiaoniu Electric released its sales data for the third quarter of 2024: a total of 312405 vehicles, including electric motorcycles, electric light motorcycles, electric bicycles, pedal scooters, and electric assisted bicycles, were sold, an increase of 17.48% compared to the same period last year. Among them, sales in the Chinese and international markets were 259094 and 53311, respectively, an increase of 12.43% and 50.31% compared to the same period last year.
Sales data for the third quarter of Xiaoniu Electric.
New car models account for over 60% of sales
It is reported that in the third quarter, in the Chinese market, the Xiaoniu Electric NT model performed quite well, accounting for nearly 20% of total sales. In addition, this year's new car models accounted for over 60% of the total sales in the third quarter.
Xiaoniu Electric stated that it is attracting different groups of people through diversified strategies to expand its user base. For Generation Z, we collaborated with JDG to launch the FX model in September and combined it with the popular game "Peace Elite" to enhance brand interaction. In addition, we are using KOL content marketing and influencer activities on platforms such as Xiaohongshu to connect with female users
Xiaoniu Electric launched the Peace Elite co branded model in September this year.
In the third quarter, Xiaoniu Electric's sales growth in the international market was relatively high, reaching 50.31%. Xiaoniu Electric stated that in the international market, the micro mobility sector continues to show strong growth momentum, with the new models K100 and K300 gaining strong appeal. These models account for over 50% of the total sales this quarter and are popular in the European Union, North America, and Asia Pacific regions.
Continuously losing money but showing improvement in sales
Xiaoniu Electric was founded in 2014 and listed on NASDAQ in October 2018. As a representative of high-end and intelligent electric bicycles, it once had the halo of "two wheel Tesla" and "Hermes of the electric vehicle industry" on its head.
However, in the past two years, Xiaoniu Electric has fallen into a loss making quagmire. In 2022, its loss amount was 49.5 million yuan, and it will expand to 271.8 million yuan in 2023. In the first two quarters of this year, Xiaoniu Electric was still in a loss making state. In the first quarter, it achieved revenue of 504.7 million yuan, a year-on-year increase of 21.0%, and the net loss narrowed from 60.3 million yuan in the same period last year to 54.8 million yuan; In the second quarter, the company achieved a revenue of approximately 941 million yuan, a year-on-year increase of 13.5%, and a net loss of 24.9 million yuan, an expansion compared to the same period last year.
However, although it has not yet emerged from the quagmire of losses, the overall vehicle sales of Xiaoniu Electric have continued to grow this year. In the first and second quarters of this year, its vehicle sales were 129139 and 256162 respectively, an increase of 36.8% and 20.8% year-on-year. The total sales volume in the first three quarters reached 697706 vehicles, a year-on-year increase of 21.91%.
In addition, Xiaoniu Electric is also working hard to open stores and tap into the market. Last year, the number of its domestic stores was 2856, a decrease of 244 compared to 2022. However, according to the second quarter financial report of this year, as of June 30, 2024, the number of its domestic stores was 3124. After experiencing a "shrinkage" in 2023, it has returned to the level of 2022.
We have resumed channel expansion this year, opening over 400 new stores in the first half of the year, with a net increase of nearly 300 stores, mainly concentrated in third - and fourth tier cities, "said Li Yan, CEO of Xiaoniu Electric
It is understood that the ability to open more than 400 new stores is related to the fact that Xiaoniu Electric provides more channel profits to distributors. When it comes to the annual store opening goal for this year, Li Yan stated that he plans to open 1000 new stores.