Explosive! Cross-border sales reached nearly 7 billion in half a year

In the past two years, affected by the international situation, overseas consumption capacity has declined, and even the revenue of many leading cross-border companies has declined to varying degrees.

However, one cross-border enterprise has achieved counter-cyclical growth, with its revenue reaching nearly 7 billion yuan in half a year and its net profit reaching the full - year level .

Ninebot's performance soared! Revenue in the first half of the year reached 6.666 billion yuan

Recently, Ninebot released its financial report for the first half of 2024 .

Ninebot's revenue in the first half of 2024 was 6.666 billion yuan, up 52.20 % from 4.38 billion yuan in the same period last year . Net profit attributable to shareholders of the parent company reached 596 million yuan , up 167.82% year-on-year , and the net profit attributable to shareholders of the parent company in the first half of the year was close to 598 million yuan for the whole of last year . Net cash flow from operating activities reached 2.486 billion yuan, up 134.88% year-on-year.

Regarding the reasons for the rapid growth of the company's performance, Ninebot stated that in the first half of 2024, the sales scale and market share of the company's smart electric two-wheelers, service robots and all-terrain vehicles have increased significantly compared with the previous period . In addition, during this period, the company's various businesses have grown, and the company has continued to optimize its capital management, which has led to an increase in the company's operating cash flow .

After the release of Ninebot’s financial report, the high performance also caused a quick reaction in the capital market. Ninebot’s stock price rose by more than 13% at the opening , and the intraday stock price hit a new high in two years.

Ninebot was founded in 2012 and is headquartered in Beijing, China. It focuses on innovative short-distance transportation and robotics. It started with the electric balance bike business and has gradually expanded into electric scooters, electric two-wheelers, all-terrain vehicles, service robots, and other fields . Its current products include smart two-wheel electric vehicles, balance bikes, electric scooters, karts, all-terrain vehicles, mecha chariots, service robots, and smart shared scooters.

(Image source: Ninebot official website)

Ninebot owns two major brands, Ninebot and Segway, and has four major business regions in the world, namely China, Asia Pacific, Europe, and the Americas. It has subsidiaries and offices in Beijing, Paris, Seattle, Los Angeles, Sydney and other places. Its products are distributed in more than 100 countries and regions around the world and have been widely recognized by overseas consumers .

In 2014, Xiaomi, Sequoia and other capitals jointly invested more than 80 million US dollars in Ninebot , which greatly helped the development of the company.

After that, Ninebot started close cooperation with Xiaomi. Relying on Xiaomi's channels, Ninebot produced balance bikes and scooters for it.

In 2015, Ninebot acquired Segway, which was the world's best-selling company at the time, held more than 400 core patents, and focused on the European and American markets, forming the new Segway-Ninebot global enterprise .

As we all know, Europe and the United States are the main demand markets for balance bikes and scooters. It is estimated that the scale of the European and American smart scooter market will reach 15 billion US dollars in 2025. Europe is the main market for Segway. Thanks to Segway's own reputation and foundation, Ninebot has started a dual-brand strategy, using the Ninebot trademark and Segway brand to sell products.

Segway is sold online on platforms such as Amazon and offline in retailers, and has also entered Costco, Walmart, Target, etc. In addition, Ninebot also serves hundreds of global shared micro-mobility operators such as Tier, Voi, and Whoosh, firmly sitting on the leading position in the industry.

With its multi-channel operation strategy, Ninebot has successfully risen overseas.

Ninebot is accelerating its “ de-Xiaomi ” strategy and upgrading and improving its product matrix !

However, for a long time, Ninebot has actually faced a high risk of single-customer dependence on Xiaomi Group .

From 2016 to 2018, the amount of related-party sales transactions between Ninebot and Xiaomi Group was RMB 640 million , RMB 1.02 billion and RMB 2.43 billion, respectively, accounting for 55.7% , 73.7% and 57.3% of the company's operating income in the current period , respectively .

In 2019, Xiaomi Group accounted for 52.33% of Ninebot’s current operating income .

On October 29, 2020 , Ninebot successfully landed on the Shanghai Stock Exchange and became the "first CDR stock" on the Science and Technology Innovation Board. On the day of listing, Ninebot's stock price soared, with a market value of more than 30 billion.

After going public, Ninebot ’s revenue and net profit attributable to shareholders saw rapid growth, and the company also began to accelerate its “de-Xiaomi” transformation.

From 2020 to 2021, Ninebot's operating income was RMB 6.003 billion and RMB 9.146 billion, respectively , a year-on-year increase of 30.9% and 52.36%; during this period, the company's net profit attributable to shareholders of the parent was RMB 0.73 billion and RMB 411 million, respectively.

In 2022, Ninebot’s operating revenue exceeded 10 billion for the first time, reaching 10.124 billion yuan , and the company’s net profit attributable to shareholders of the parent company increased to 451 million yuan.

Since Ninebot has been vigorously cultivating its own brand in recent years , its dependence on Xiaomi's ecosystem has also been significantly reduced.

In 2022, Xiaomi Group 's share of Ninebot's current operating income fell to 12.64%.

In 2023, Ninebot achieved operating revenue of 10.222 billion yuan and net profit attributable to shareholders of the parent company of 598 million yuan . Among them, the proportion of Xiaomi Group in Ninebot’s current operating revenue has also dropped to 4.3%.

In recent years, the performance of Ninebot’s own-brand products has continued to improve , reducing the adverse impact of the declining dependence on Xiaomi Group .

In the first half of 2024, Ninebot’s own-brand retail scooter sales reached 518,100 units, with revenue reaching 1.031 billion yuan; electric two-wheeler sales reached 1.2 million units , with revenue of 3.383 billion yuan; all-terrain vehicle sales reached 12,100 units, with revenue of 507 million yuan; and lawn mowing robot revenue reached 449 million yuan .

Ninebot has a leading market advantage in the field of electric scooters and balance scooters . For a long time, the company has also been continuously upgrading and improving its product matrix.

Ninebot has more than 6,200 electric two-wheeler stores , and its cumulative domestic shipments have exceeded 4 million units .

The all-terrain vehicles launched by Ninebot have successfully entered the European market, and UTV and SSV have also entered the US market. The products have been widely recognized by overseas consumers.

The lawn mower robot products launched by Ninebot have been sold to more than 30 countries around the world, and it is the world's first brand of wire-free lawn mowers with more than 30,000 user activations .

Ninebot is also continuing to make efforts in the E-bike field. Recently, Ninebot ’s shared short-distance travel products were unveiled at the Paris Olympics.

In order to support green travel and alleviate the pressure on the city's public transportation system during the Paris Olympics , the Paris government designated local shared micro-mobility operator Tier-Dott to deploy 15,000 shared electric bicycles for the 2024 Paris Olympics.

The shared electric bicycles (E-bikes) provided by Ninebot to Tier-Dott are the company's main products in the field of shared E-bikes. In addition, Ninebot has also joined hands with Tier-Dott to provide global tourists with a "10,000 free rides" event during the Olympic Games.

The construction of a multi-product matrix has also brought many market opportunities to Ninebot . However , if it wants to maintain a leading position in the market, Ninebot still needs continuous technological innovation to adapt to market demand.

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