Shares of Niu Technologies (NIU) surged 7.12% in pre-market trading on Monday following the release of the company's strong second-quarter 2025 financial results. The Chinese electric scooter maker reported significant revenue growth and a return to profitability, driven by robust sales in its domestic market.

Niu Technologies announced that its Q2 revenue jumped 33.5% year-over-year to RMB 1,255.7 million, exceeding market expectations. The company swung to a net income of RMB 5.9 million, compared to a net loss in the same period last year. Gross margin also improved substantially, rising to 20.1% from 17.0% in Q2 2024.

The strong performance was primarily fueled by booming e-scooter sales in China, which surged 53.6% year-over-year. This domestic growth more than offset a 35.5% decline in international sales, which the company attributed to ongoing geopolitical and economic uncertainties. Niu's expansion of its retail network to over 4,300 stores in China has clearly paid dividends, reinforcing its growth strategy in the domestic market.

Looking ahead, Niu Technologies provided an optimistic outlook for the third quarter, projecting revenues between RMB 1,433 million and RMB 1,638 million, representing a year-over-year increase of 40% to 60%. This positive guidance, combined with the company's successful cost-reduction initiatives and improved profitability, appears to be driving investor enthusiasm in the pre-market session.