Shares of Niu Technologies (NIU) plummeted 14.36% in early trading on Monday following the release of the company's first quarter 2025 financial results. The Chinese electric scooter maker reported mixed results, with increased revenues but a continued net loss and declining gross margins, disappointing investors.

Niu Technologies announced that its Q1 revenues reached RMB 682.0 million ($99.6 million), representing a 35.1% increase year-over-year. This growth was primarily driven by a 57.4% increase in e-scooter sales volume. However, the company reported a net loss of RMB 38.8 million ($5.7 million) for the quarter, albeit an improvement from the RMB 54.8 million loss in the same period last year.

Despite the revenue growth, Niu's gross margin declined to 17.3% from 18.9% in Q1 2024. This decrease was mainly attributed to challenges in the international market, including changes in product mix, higher freight costs, and tariffs. The company's basic and diluted net loss per ADS were both RMB 0.49 (US$ 0.07). While Niu Technologies provided an optimistic outlook for Q2 2025, expecting revenues to be in the range of RMB 1,317 million to RMB 1,411 million (a year-over-year increase of 40% to 50%), investors seem to be focusing on the current challenges and margin pressures.