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| Specifically, the latest iteration of our [claim] (ph), SQi electric bicycles, has gained significant traction during the Double 11 Shopping Festival, emerging as the number one top-selling straddle electric bicycle in the RMB9,000 price range above on Tmall and JD.com |
| Together our UQi+, F200 and also SQi has claimed top spots, ranking within the Top 3 best-selling product in the electric bicycle categories on Tmall |
| Now, for the international electric two-wheeler market, the addition of new products off-road and also the motorcycle product and also the swapping solutions well position us for growth in the key European, United States and the South East Asia market next year |
| Last but not least, for our international micro-mobility market, we're pleased to report a sustained and robust growth trajectory |
| As mentioned earlier, the primary contributing factor is due to a sell-in order delay in Q3, while the sale of our activation volume has increased by 80% year-over-year, driven by a diverse product portfolio and expanding sales network |
| We're confident that those initiatives will contribute significantly to our brand exposures and long-term growth prospect |
| Those engagements underscore our commitment to establish a strong brand presence and the forging connections with diverse audiences even in the face of temporary market challenges |
| We're confident in our ability for sustaining high growth in Q4 and beyond |
| This highlights strong customer preference across our diverse product range |
| Together with the product portfolio enhancement, the sales network expansion has laid a solid foundation for ramping up sales in the next few months throughout the holiday seasons |
| The expanding product portfolio has driven the development of our sales channels with remarkable growth observed in our expanded retail networks |
| And we're confident that it will bring up the sales and therefore uplift the NIU's brand recognition |
| In the first 24-hours of promotion period alone, the pre-order sales revenue surpassed the sum of the entire period last year, showcasing the robust demand for our offerings |
| It has not only contributed positively to our sales volume, but also plays a significant role in enhancing our brand image |
| With those, we believe we're well positioned to get back on the high-growth track in 2024 |
| And despite the prudent raising -- provisions for credit losses on the overdue payments, we retain a positive outlook on the future receivable collections given our other partners' robust financial standing and their continuous ongoing payments |
| The KQi Air delivers impressive capabilities, including top speed of 32 kilometer per hour and a maximum range of 50 kilometers |
| Our product lineup has not only boosted sales volume but also significantly elevated the presence of new brands within this market segment |
| We're using this time to continue to enhance our product portfolio and build momentum for store expansions |
| We introduced Q2 2023 the MQiL, emerged as a successful addition to our product lineup |
| In addition, during Q3, we launched an innovative KQi Air kick-scooter for pre-sales, which has been well received in the market |
| Meanwhile, we're also leveraging the traction that we gathered from our kick-scooter product to expand our sales network coverage |
| The F400T was introduced in August this year as a remarkable addition to our Falcon series product lineup |
| In Q3, we also successfully introduced the Falcon series as a new style with the launch of F400T and F200, complementing the previous introduce of F100 in Q2 |
| In terms of product portfolio, the Falcon series is a testimony of a successful product for full expansion |
| Moreover, the KQi Air embraces smart connectivity and enabling functions like NFC and Bluetooth unlocking, customizable charging, capacity setting, speed adjustment, and also the regenerative braking strength |
| The number of activations in Q3 show a significant year-over-year increase of 80% |
| And the overseas scooter ASP increased from RMB3,386 to RMB3,430 year-over-year, and mainly due to our premium model [K3 Max] (ph) sales volume increase from [3,200] (ph) units to [7,100] (ph) units year-over-year |
| It is a product that inherits the design from our all-time classic M series along with a significant upgrade in design and performance |
| This growth is fueled by two key pillars: the completion of our product portfolio, and expansion of our sales network |
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| Now, in the China market, during Q3, we encountered setbacks due to a sluggish consumption in top-tier cities, resulted in a slowdown in sales for our products |
| Now, as we look forward, we [maintain] (ph) cautious outlook for Q4 this year as some of the operational adjustments in both the China and also the oversea electric moped market will take time to be fully implemented to drive the midterm growth |
| We faced the challenge in this quarter with a year-over-year decline in the electric moped sales, accounts for 62% |
| In the overseas electric two-wheeler market, we have experienced a year-over-year decline of 62%, influenced by a combination of challenging factors |
| As we mentioned in the previous quarters, the European consumer sentiment remains cautious, leading our distributors to ask for extended payment terms due to the weak retail sales |
| Several factors converge and created this downturn, including the decline of the electric moped market in the key European countries like Germany and Netherlands and the temporary operation disruption due to issue encountered by our distributed partner in Europe |
| Additionally, we have also faced a temporary disruption in the key European markets due to operational difficulty faced by our distribution partner, which has further affected our sales performance in this period |
| Specifically, sales volume in the China market had a year-over-year drop of 12% to 230,445 units, and the sales volume in the overseas market experienced a year-over-year of 38% decrease to 35,468 units |
| But we expect those adjustments will take time and hence we [maintain] (ph) cautious outlook for the Q4 2023 |
| And this decline was mainly driven by the lower sales of battery packs overseas, as we mentioned in the previous quarters |
| Total revenue in Q3 2023 was RMB927 million, a decrease of 19% year-over-year |
| In the meantime, one of our key motorcycle and mopeds distributors in the European market announced on September 6 this year that it's going to -- into a court-supervised constructing process due to the intense economic pressures |
| In Q3 2023, our total sales volume was 265,923 units with a year-over-year decrease of 71% |
| This downturn is primarily attributed to the sell-in order delays in Q3 |
| The overseas micro-mobility market has seen a year-over-year decrease of 37% in sales |
| Now, talking about the overseas micro-mobility market, the micro-mobility market has reported a 37% year-over-year decrease in sales in Q3 |
| And the revenue from accessories, spare parts, and services amounted to RMB94 million, a 5% decrease compared to the same period of last year |
| And this decrease was mainly due to the decline in the sales of e-motorcycle and mopeds |
| And of this, 0.6 ppt of this decline was driven by the lower sales volume from the overseas e-motorcycle and e-mopeds, and the remaining 0.1 ppt due to the change to the product mix domestically |
| And the gross margin decreased by 0.7 ppt year-over-year to 21.4% |
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