Amazon's annual net profit may exceed 1 billion

From breaking away from Xiaomi's ecological chain to surviving independently, Ninebot's electric two-wheeled vehicles are the fastest growing brand in the industry, and its electric scooters rank first in the world in sales. Its performance in the lawn mower market is also remarkable. With the continuous expansion of its product portfolio, Ninebot has entered a period of rapid and stable growth, with a significant increase in net profit in 2024.

Annual net profit may exceed 1 billion

Ninebot has released its 2024 annual performance forecast . The net profit attributable to shareholders of the listed company in 2024 will be approximately RMB 950 million to RMB 1.12 billion, an increase of RMB 352 million to RMB 522 million compared with the same period last year , a year-on-year growth of 58.86% to 87.29%.

The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses is expected to be between RMB 930 million and RMB 1.1 billion, an increase of RMB 517 million to RMB 687 million compared with the same period last year , a year-on-year increase of 125.21% to 166.38%.

It is understood that in 2023 , Ninebot’s revenue was 10.222 billion yuan, total profit was 640 million yuan, net profit attributable to the parent company’s owners was 598 million yuan, and net profit attributable to the parent company’s owners after deducting non-recurring gains and losses was 413 million yuan.

The company's profit increased significantly in 2024 mainly due to its focus on promoting innovation and transformation of intelligent short-distance transportation and service robot products, through continuously improving user services and satisfaction, continuously updating and iterating related products in business lines such as electric two-wheeled vehicles, electric scooters, all-terrain vehicles and service robots, further expanding sales channels, expanding the overall sales scale and improving profitability.

In addition, the impact of non-recurring gains and losses on net profit in 2024 is much smaller than that in the same period of the previous year. There were large gains from changes in fair value of other non-current financial assets in the same period of the previous year, but there was no such event in 2024.

According to the data for the first three quarters of 2024 that have been released previously , Ninebot’s net profit in 2024 should exceed 1 billion.

In the first three quarters of 2024 , Ninebot's total revenue reached 10.905 billion yuan, a year-on-year increase of 44.9%; its net profit reached 970 million yuan, a year-on-year increase of 155.95 % . In the third quarter, the company's operating income reached 4.239 billion yuan, a year-on-year increase of 34.75%; its net profit was 374 million yuan, a year-on-year increase of 139.07%.

In the first half of 2024 , the company's revenue was 6.666 billion yuan, a year- on-year increase of 52.20% , and its net profit attributable to shareholders reached 596 million yuan, a year-on-year increase of 167.82% . It is worth noting that Ninebot 's net profit attributable to shareholders in the first half of 2024 was close to last year's full-year net profit of 598 million yuan.

Conquer overseas markets

Ninebot was founded in 2012 and is headquartered in Beijing . It focuses on innovative short-distance transportation and robotics and started out with the electric balance scooter business. In 2013 , Ninebot launched its first self-developed balance scooter, with sales exceeding 20,000 units that year.

Subsequently, the company has successively laid out multiple fields such as electric scooters, electric two-wheelers, all-terrain vehicles, service robots, etc. , with two major brands, Ninebot and Segway, and its products are distributed in more than 100 countries and regions around the world. In the process of continuously expanding the global market , it has created many global "category kings" and industry records. In October 2020, Ninebot was officially listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.

Ninebot’s rapid rise is inseparable from Xiaomi’s support . In 2014, Xiaomi, Sequoia Capital and other investors jointly invested more than 80 million US dollars in Ninebot. Since then, Ninebot has started a close cooperation with Xiaomi. Relying on Xiaomi’s channels, Ninebot produces balance bikes and scooters for Xiaomi.

In 2019 , Lei Jun , the founder of Xiaomi , launched the Ninebot balance car , further boosting market demand. From 2017 to 2019, Ninebot's revenue share in Xiaomi channels was high , reaching as high as 73.76%.

In recent years , Ninebot has gradually de-Xiaomi-ized itself , making inroads into overseas markets and developing rapidly.

In the first half of 2024, the company's revenue from self-branded products reached 5.86 billion yuan, accounting for 87.91% of its revenue ; the proportion of revenue from Xiaomi Group dropped from 32.29% in 2021 to 1.21%.

At the same time, the company's overseas revenue accounted for more than 42%, and it has flourished in mainstream overseas markets such as Europe, the United States, Australia, New Zealand, the Middle East and Turkey.

In the Americas, the company has entered large supermarket chains and outdoor sports chain stores such as Costco, Walmart , Target, and Best Buy, and its online channels have entered e-commerce platforms such as Amazon , eBay, and Media Mart. In the European market, the company has entered major local KAs and e-commerce platforms, covering both online and offline channels.

The flagship product, electric scooters, has performed outstandingly in the international market. The revenue of independent brand scooters reached 1.724 billion yuan in the third quarter of 2024, an increase of 11.43% year-on-year, and the cumulative global sales volume exceeded 13 million units.

Especially on the Amazon platform, Ninebot's Segway brand scooters have performed well. The number of orders reached more than 10,000 in three months , the cumulative number of positive reviews reached more than 10,000, and it is an Amazon-certified store with a low return rate.

Expand product portfolio

Although electric scooters are popular in foreign markets, many countries have strict restrictions on scooters, making it difficult for related industries to maintain high growth. According to statistics from Fortune Business Insights, the global electric scooter market is expected to reach US$50.15 billion in 2032, with a compound annual growth rate of only 12.6% from 2024 to 2032.

If Ninebot wants to maintain its current high growth expectations, it must continue to define more new products in the electric short-distance transportation track and switch revenue growth to innovative businesses before the two-wheeled electric vehicle and balance car markets enter the red ocean.

The company has keenly extended its business from smart mobile "people" to smart mobile "things", expanded its product portfolio, and created a diversified growth curve.

It entered the field of delivery robots in 2018. Currently, its delivery robots have covered nearly 10,000 hotels, restaurants and other industries in China, with a total of over 100 million deliveries.

The company began to develop lawn mowing robots in 2021. In 2022, Navimow lawn mowers were successfully launched in the European market, becoming the world's first brand of wire-free lawn mowers with more than 30,000 user activations.

In the first three quarters of 2024 , Ninebot’s lawn mowing robot sales reached nearly 600 million, a year-on-year increase of 379% . The total number of household users also exceeded 100,000, making it the first borderless lawn mowing robot brand to achieve this milestone.

On Amazon Prime Day 2024, Navimow achieved the best sales in the global market, across all price segments, and in all lawn mower categories. During the Black Friday promotion in November, it dominated the European rankings, and on the first day, it ranked first in all categories in Amazon's cumulative sales in Germany.

According to Statista data, the European lawn mower robot market will grow at a compound annual growth rate of 10.3% from 2022 to 2032, and the market size of the European lawn mower robot market is expected to reach US$662 million by 2030. Ninebot is also expected to further reap the dividends of this field.

With the expansion of new product categories, the proportion of Ninebot’s balance bikes has shown a downward trend, from 74.5% in 2017 to 4.1% in 2023; the proportion of electric scooters has decreased year by year from 71.3% in 2020 to 30.0% in 2023; the proportions of electric bicycles, lawn mowing robots, and all-terrain vehicles in 2023 will be 2.4%, 2.2%, and 6.8%, respectively.

The expansion into multiple categories provides more certainty for the company's rapid, stable and intelligent growth, and its future development in the blue ocean market of the robotics business is also worth looking forward to.

Ninebot’s success in overseas markets is a microcosm of many Chinese brands going overseas. With the development of the global economy, more Chinese brands will shine on the international stage.

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