Niu Technologies (NASDAQ: NIU) stock crashed by more than 10% in morning trading on Friday as the Chinese electric scooter company’s Q4 sales update left investors disappointed.
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In the fourth quarter, NIU’s sales declined sharply by 41.4% year-over-year to 138,279 units, including e-motorcycles, e-mopeds, e-bicycles, and kick-scooters. The sharp fall in sales was across both NIU’s Chinese and international markets.
In China, sales dropped 42.5% year-over-year to 118,065 units while international markets saw a decline of 38.7% year-over-year to 20,214 units.
The company stated that the sharp rise in COVID cases in China and the resulting policy changes including strict lockdowns to control the spread of COVID led to NIU changing its business strategy.
NIU pointed out that in ” light of the volatile environment, we have been committed to the strategy of focusing on premium markets since the middle of 2022. As a result, Niu and Gova premium series contributed 95% of the total domestic sales volume in the fourth quarter.”
Shares of NIU have crashed more than 65% in the past year.
