Recently, 9th Company and Xiaoniu Electric, which focus on the mid to high end two wheeler market, have successively disclosed their financial reports for the second quarter of 2024. Overall, both companies achieved significant growth in vehicle sales in the second quarter, and the strong demand for intelligent and high-end two wheelers remains a major feature of the industry.
For two wheeled electric vehicle brands, occupying the high-end market is the key to improving profit margins, and intelligent innovation also brings new demands to the industry. Looking at the entire industry, except for a few brands, the current high-end market still focuses on endurance as the core selling point. In the future, the competitiveness of the product market will mainly rely on innovative design concepts and advanced intelligent technology to enhance. It can be said that the development potential of the intelligent and high-end two wheeled vehicle market is enormous, "a senior executive of an A-share listed electric two wheeled vehicle company told Securities Times · e Company reporters.
On August 12th, Xiaoniu Electric released its financial report for the second quarter of 2024. In the second quarter of this year, the sales volume of Xiaoniu electric vehicles was 256200 units, a year-on-year increase of 20.8%; Achieved a revenue of 940 million yuan, a year-on-year increase of 13.5%. The net loss during the period was 24.9 million yuan, compared to a net loss of 1.9 million yuan in the same period last year. Under non GAAP, the company's adjusted net profit was RMB 19.5 million, compared to RMB 14.4 million in the same period last year.
When it comes to revenue growth, Xiaoniu Electric explained that this is mainly due to the rapid increase in vehicle sales and the contribution of overseas markets. In the second quarter, the total vehicle revenue in the Chinese market reached 727 million yuan, a year-on-year increase of 13.8%, accounting for 84.8% of the total vehicle revenue. Overseas market vehicle revenue was 130 million yuan, a year-on-year increase of 13.7%, accounting for 15.2% of the total vehicle revenue.
In terms of sales, Xiaoniu Electric will launch a series of new products in the first half of 2024, and the sales of high-end series models with more competitive prices in the domestic market will continue to grow. According to the financial report, the total vehicle sales of Xiaoniu Electric in the Chinese market in the second quarter were 207500 units, a year-on-year increase of 16.2%; The total vehicle sales in overseas markets were 48600 units, a year-on-year increase of 45.4%.
In fact, since the beginning of this year, the pace of launching new products of Xiaoniu Electric has significantly accelerated. In February of this year, Xiaoniu Electric released three new cars: electric motorcycles, electric bicycles, and off-road electric motorcycles; In June, Xiaoniu Electric released its new O-series model, the Little O, specifically designed for female users; On August 7th, the new intelligent lead-acid product NT/MT series under Xiaoniu Electric was launched, with sales exceeding 5900 units within 4 hours of its launch.
Li Yan, CEO of Xiaoniu Electric, said, "Our new products launched this year accounted for over 50% of domestic sales in the first half of the year, proving the effectiveness of our company's strategy. In terms of overseas markets, our strategic alliance with top retail brands such as Best Buy is driving Xiaoniu's further penetration into the US market. By partnering with Best Buy, Xiaoniu Electric has quickly penetrated its products into more than 800 offline sales channels across the United States
In terms of channels, the financial report shows that as of the second quarter of 2024, Xiaoniu Electric has 3124 stores in China. At the same time, the company's overseas sales network continues to expand, covering 52 overseas countries and regions through 54 distributors.
Looking ahead, the company is optimistic about its performance expectations for the third quarter of 2024. Xiaoniu Electric stated that it expects its operating revenue to be between 1.298 billion yuan and 1.483 billion yuan, corresponding to a year-on-year increase of 40% to 60%. The company will continue to increase research and development investment, expand market layout, optimize product structure, and improve operational efficiency to promote the sustained and healthy development of the company
Another player in the high-end two wheeler market, Company 9, had even more impressive vehicle sales in the first half of the year.
On August 6th, the financial report released by Company 9 showed that it achieved a revenue of 6.666 billion yuan in the first half of the year, a year-on-year increase of 52.20%; The net profit attributable to the parent company was 596 million yuan, a year-on-year increase of 167.82%. Among them, the intelligent electric two wheeler business achieved sustained high growth in the first half of this year, with product sales in China reaching 1.1984 million units, a year-on-year increase of 123.18%, driving sales revenue of 3.335 billion yuan, a year-on-year increase of 119.12%. As of June 30, 2024, there are over 6200 electric two wheeler specialty stores in China, covering more than 1100 counties and cities.
In subsequent institutional research, the development of the two wheeled electric vehicle business of Company 9 has attracted the attention of institutional investors.
Company Nine stated that its two wheeled electric vehicles are focused on the mid to high end market, and there is room for further improvement in the penetration rate of mid to high end products. The gross profit margin and net profit margin of two wheelers are expected to further increase. According to industry conventions, Q3 is the peak of performance for two wheelers, and the Q3 two wheeler business unit will make every effort to sprint forward. At present, based on the recent July, the shipment situation of terminals is still good. In terms of product layout, under the trend of the new national standard, we will see newly designed products gradually in the second half of this year
In fact, in recent years, the intelligent innovation of electric two wheelers has received increasing attention from consumers. According to research data from iResearch Consulting, an increasing number of users will consider intelligent configurations when purchasing two wheelers from 2022 to 2023; According to research data in 2023, 46.6% of users purchase two wheelers as a supplement to other modes of transportation, and intelligent innovation better meets the cost-effective needs of car owners.
A recent research report by Open Source Securities shows that after the industry enters a mature development period, we expect the overall growth of the industry to return to a steady state. In terms of industry drivers, we are optimistic that the demand for replacing old cars can effectively support the stability of the industry. According to Deloitte's data forecast, 62.1% of the consumer demand in the electric two wheeler industry in 2024 will come from replacement demand, and the number of two wheeler electric vehicles in China will reach 350 million, which can stably release large-scale demand for replacing old cars. On the other hand, intelligent technology innovation brings new demands and users to the industry, while also paying attention to the development potential of the B-end market for electric two wheelers.