Shares of Niu Technologies (NIU) plummeted 5.14% in Monday's intraday trading session, despite reporting strong third-quarter financial results. The electric scooter maker's stock took a hit as investors focused on the company's disappointing fourth-quarter revenue outlook.
Niu Technologies announced impressive third-quarter results, with revenues reaching RMB 1,693.9 million, representing a 65.4% increase year-over-year. The company also reported a net income of RMB 81.7 million, compared to a net loss of RMB 40.9 million in the same period last year. The strong performance was primarily driven by a 74.2% year-on-year growth in sales volume in China.
However, the optimism surrounding the Q3 results was overshadowed by Niu's fourth-quarter revenue guidance. The company expects Q4 revenues to be in the range of RMB 737 million to RMB 901 million, representing a year-over-year change of -10% to +10%. This outlook suggests a potential decline in revenues compared to the previous year, which has likely triggered concerns among investors about the company's near-term growth prospects. The disappointing forecast, coupled with the fact that Q4 is typically a seasonal low period for the company, appears to have led to the significant sell-off in Niu's stock.
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