Shares of NIU Technologies (NASDAQ: NIU) are surging 17.20% in pre-market trading on Monday following the release of the company's impressive second-quarter 2025 financial results and optimistic future guidance.
The Chinese electric scooter manufacturer reported a significant 33.5% year-over-year increase in revenues, reaching RMB 1,255.7 million for Q2 2025. This growth was primarily driven by a 36.7% rise in e-scooter sales volume. More importantly, NIU Technologies returned to profitability, posting a net income of RMB 5.9 million, compared to a net loss of RMB 24.9 million in the same period last year.
Investors are particularly encouraged by NIU's improved gross margin, which climbed to 20.1% from 17.0% in Q2 2024. This enhancement reflects the company's successful cost-reduction initiatives and favorable changes in product mix. Additionally, NIU's strong performance in the Chinese market, where e-scooter sales surged 53.6% year-over-year, has offset the 35.5% decline in international sales attributed to ongoing geopolitical and economic uncertainties.
Looking ahead, NIU Technologies provided a bullish outlook for the third quarter of 2025, projecting revenues between RMB 1,433 million and RMB 1,638 million. This forecast represents a substantial year-over-year increase of 40% to 60%, further fueling investor optimism and driving the stock's pre-market rally.