Ladies and gentlemen, thank you for standing by. Welcome to Niu Technologies' Fourth Quarter 2024 Earnings Release Conference Call. At this time, all participants are in the listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. Please be advised that today's conference is being recorded. If you have any objections, you may disconnect at this time. I would like now to turn the conference over to Crystal Li, Investor Relations Manager of Niu Technologies. Ms. Li, please go ahead. Thank you, Operator. Hello, everyone. Welcome to today's conference call to discuss Niu Technologies' results for the fourth quarter and full year 2024. The earnings press release, corporate presentation, and financial spreadsheet have been posted on our Investor Relations website. This call is being webcast from our company's IR site as well, and a replay of the call will be available soon. Please note, today's discussion will contain forward-looking statements made under the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties, assumptions, and other factors. The company's actual results may be materially different from those expressed today. Further information regarding the risk factors is included in the company's public filings with the Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statement except as required by law. Our earnings press release and this call include discussion of certain non-GAAP financial measures, and press release contain a definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results. On the call with me today are our CEO, Dr. Yan Li, and CFO, Ms. Fion Zhou. Now, let me turn the call over to CEO Yan. Thank you, Crystal. Hello, everyone. Thank you for joining us today. In the fourth quarter of 2024, we will achieve a total sales volume of 226,600 units, marking a significant 65% year-over-year growth. Behind this strong performance was a 65% year-over-year increase in sales volume in China, reaching 182,000 units, and a 64% year-over-year growth in overseas with 44,000 units sold. Total revenue for the fourth quarter was RMB 819 million, reflecting a 71% increase compared with the same period last year. Those results closed out the financial year for 2024 on a strong note. For the full year, we recorded a total sales volume of 924,000 units, representing a 30% year-over-year increase. Total revenue for the year reached RMB 3.29 billion, up 24% from 2023. This rebound in growth underscores the effectiveness of our strategic initiatives. Throughout 2024, we remain focused on expanding our product offerings, strengthening sales channels, and broadening our market reach. Our return on growth trajectory is a testament to all those efforts. As we build on this momentum, we remain committed to refine our strategy to achieve ambitious targets and adapt to evolving market dynamics. Taking a closer look at our performance in China, sales volume reached 182,000 units in this quarter. Our focused product portfolio, emphasized on technology innovation, expanded sales channels, and the targeted market initiatives, were key drivers for the strong domestic performance. For the entirety of 2024, we remain laser-focused in refining our signature product lineup, emphasizing our core N, M, and U series, while also introducing the new S series as a key addition. We expanded our best-seller strategy, further strengthening our leadership in the mid- to high-end segments with robust and competitive product portfolios. Beyond innovation, we took an extra step to prioritize product safety by subjecting our models to rigorous testing standards. Niu became the first brand in the market to receive a five-star safety certification from the China Merchants Vehicle Research Institute. In 2024, we continue to elevate our legacy of the N series, reinforcing our status as Niu's most recognized and best-seller product line across multiple market segments. At the premium end, we introduced the NX and NXT series, the most powerful and high-performance two-wheeler Niu has ever produced. Built on the shared platform, the NX and NXT incorporate our most advanced smart riding technologies, including the dual-channel ABS, a full-color TFT display with screen mirroring navigation, millimeter wave radar, and adaptive traction control, setting a new standard for performance and safety. Within this lineup, the NX Hyper stands as a flagship model engineered for racing enthusiasts, featuring a motor with a peak output of 29 kW, a top speed of 135 kmph, and a state-of-the-art suspension and braking system, delivering an exceptional rider experience. With the top performance of NX, it's also built with riding safety in mind. The NX is the first electric motorcycle in China to earn a five-star safety certification. Beyond the high-performance NX and NXT series, we also expanded the N series lineup earlier this year with the launch of N Play and NXT Play. These stylish and compact models quickly gained popularity among young riders for their affordability and trend-driving design. The N-Play electric motorcycle and NXT Play electric bicycle retain the iconic N series look while incorporating smart features such as keyless ignition, TCS traction control, and the push assist, significantly enhancing riders' convenience and safety. With those additions, the N series now spans from lightweight electric bicycles to high-performance motorcycles, making it Niu the most diverse and best-selling product line. In 2024, the N series alone accounted for 39% of our total sales volume in China, a substantial increase from just 5% in 2023, demonstrating a strong market demand and the effectiveness of our focused product strategy. Besides N series, we also built a success on top of our M models. We have further strengthened our M series by launching an upgraded version of our classic model. In 2024, we introduced the new MT as an evolution of the M series, with a fresh and trend-focused upgrade design for the Gen Z users. Returning the classic M series design language, the MT introduced new color options that enhance the rider comfort and smart features. Its lightweight and compact frame make it ideal for female riders and first-time users. The last signature series we focused on upgrading is our U series. We launched two core products during 2024: the U Max and U-Yue. The U Max is a product designed for young riders who seek a blend of style, comfort, and high performance. With a larger form factor, U Max enhances visual appeals and riding comfort. It boasts the impressive 160 km range and boosts driving modes for rapid acceleration. The U-Yue is our first female-focused scooter, which upgrades with new color schemes, ergonomic improvements in handle and seat positions, and easy-to-use smart functionalities, and also an option to include a baby seat among its accessories. Now, besides the N, M, U series, in 2024, we further expanded our core lineup with the launch of FX motorcycles, which has quickly become a recognizable and stylish alternative alongside our classic Halo Lights N, M, U series. The FX series embodies a sporty design, featuring eagle-eye headlights and intricate design details, adding sophistication and bold presence to its lineup. The FX Pro version, leading in performance, is equipped with 45 amp-hour batteries, a 1,500-watt motor, and a top speed of 55 kmph impressive range of 130 km. The FX series is also debuted as part of a co-branding initiative with Game for Peace, one of China's top mobile gaming platforms, with 70 million MAUs. This collaboration introduced a limited-edition model inspired by the game's look, providing fans and riders with a unique blend of style, performance, and cultural relevance. The co-branded FX series strengthens Niu's position in pop culture, expanding brand awareness and engagement among younger riders. Now, by focusing on our core series and the strategic launch product tailored to specific customers' needs, we have reinforced our leadership in urban mobility. The market's strong reception of this model underscores the effectiveness of our focused product strategy, driving both volume growth and brand recognition. In 2024, our core product series, the N, M, U, and F, accounted for 87% of our total sales volume in China. Now, looking forward in 2025, we remain committed to our focused product strategy, enhancing our core Niu product series while ensuring broader market coverage to meet the diverse needs of riders. We have exciting new products in pipeline, incorporating innovations and key upgrades to adapt to evolving market dynamics and specific user demands. Now, alongside our product strategy, our commitment to develop cutting-edge technology is also reflected in the significant investment and progress we have made. In 2024, we focused on enhancing the riding technology, including key features such as dual-channel ABS, screen mirroring navigation, millimeter wave radar, full-color TFT display with Magic Wheel, all of which have been well received by our users. In 2025, we are further advancing rider intelligence with focus on three core pillars: the seamless riding experience, the AR smart control and assistance, and the smart ecosystems. Those innovations will redefine the riding experience, bringing a new level of intelligence, safety, and connectivity to our scooters. To create a more seamless and intuitive interaction between riders and scooters, we plan to smart hardware advancements that prioritize personalization, convenience, and intelligence, such as building high-definition touchscreens with integrated operating systems. Our AR-driven riding assistance enhances responsiveness and adaptability, such as voice and gesture-based control. Last but not least, our smart ecosystem broadens the functionality of our new product through partnerships with third-party ecosystems. Now, alongside our product technology advancements, we have made significant strides in expanding our sales channels, ensuring our product reaches a broader consumer base. With a strong focus on penetrating the previously underrepresented market in China, we have strategically expanded our retail footprint. In 2024, we successfully opened approximately 900 new stores, leveraging the momentum from our new product launches and refreshed brand positioning. Among those 900 stores, around 50% of them opened in the tier-three cities, representing our effort in expanding the lower-tier cities. Now, with the regained channel momentum, in 2025, we plan to open another 1,000-1,500 stores, further strengthening our market presence. As our sales channel expansion accelerates, we expect to see a direct impact on sales volume growth in the coming quarters. Now, in 2024, we focused our marketing efforts on targeting premium consumers and Gen Z riders, further solidifying Niu's brand presence through key product launches, strategic IP collaborations, and extensive social media outreach. Those initiatives have strengthened brand recognition. In August, we received official certification from the Authorised market research institute recognizing Niu as the leading global brand in premium smart electric two-wheelers. To mark the launch of NX Hyper, we debuted with a series of high-profile ride tests, including the China First Track Standard Test Drive event for electric two-wheelers. Held in Beijing, this event attracted over 100 media professionals, industry experts, and influencers, providing an unparalleled first-hand experience of NX Hyper's exceptional performance. By setting a new performance benchmark within the electric motorcycle segment, the NX Hyper has reinforced Niu's premium brand positioning. Now, to broaden our brand influence and deepen our connection with Gen Z consumers, we leveraged high-impact IP collaborations, including e-sports partnerships, active participation in animation exhibitions, and a series of offline campus events across 130-plus universities. One of our most significant collaborations was with Game for Peace, a top mobile game with 70 million MAUs. Through this partnership, Niu introduced two co-branded scooters featuring game-inspired themes, and a limited-edition design seamlessly blended digital entertainment with the real-world riding experience. In 2024, we also implemented a matrix marketing approach to enhance brand communication and digital engagement. Our strategy integrated Niu's own original brand content across the four official brand accounts, the regional customized content with 40+ localized accounts, and the store-level self-operated content across 3,000-plus store accounts, creating a scalable and highly effective social media matrix. This multi-tiered strategy has generated over 20 billion views, marking a 5x increase compared to our 2023 effort. Now, turning to the overseas market, the overseas market witnessed a substantial 64% growth in sales volume in Q4 and reaching a 52% volume growth in the full year of 2024. This year, Niu's overseas segment demonstrated strong growth, driven by strategic market expansion and operational optimization. We continue to develop our two core product lines, the electric two-wheelers and the micro-mobilities, while strengthening our foundation in product innovation, operation, and brand positioning's. In the electric two-wheeler segment, we leveraged our cutting-edge technology and unique design products, adapting them to local market needs. A key focus in 2024 was establishing direct distribution operations in our core markets, such as Germany, Italy, France, and the United States. We laid the foundation for direct distribution by setting up local entities, hiring teams, onboarding partners, and developing a localized sales network. With the infrastructure in place, we expanded our sales network to over 120 active dealers by year-end and plan to double this number by the first half of 2025. Our electric two-wheeler product lineup in 2024 also spanned daily commuting, electric mopeds, to high-speed and high-performance electric motorcycles. In Q4 2024, we showcased our key electric motorcycles at EICMA in Milan, Italy, reinforcing our presence in the premium electric motorcycle space. As part of our product expansion strategy, we launched the NX series, the international version of the NX Premium motorcycle, and the F series, the global adaptation of our F series. Both product lines were well received in the key market, generating industry attention and strong pre-orders. We also upgraded our off-road motorcycle, XQi3, with the OTA upgrade, a boost to power to 10.6 kW, improved acceleration, and reached a top speed of 80 kmph. Our XQi3 has also received the prestigious iF Design Awards 2025, making it another legendary new product. Now, for the micro-mobility market, in 2024, we prioritized expanding retail channels in key markets, strengthening our sales network and market presence. The expansion drew significant volume growth. Our retail footprint now includes 800+ stores in Best Buy, 160 stores in Walmart, 1,000 stores in Kohl's, 200 stores in MediaMarkt in Germany, and full coverage in Expert, ensuring wide accessibility with greater brand visibility across major global retail chains. However, on the micro-mobility market, we faced significant headwinds in 2024 due to the U.S. tariff increase on China exports, which rose from 0% to 25% last year on key micro-mobility products. This sudden cost surge eroded margins, leading to a negative gross margin on our product shipped from China to the U.S. for the large part of the year in 2024. To mitigate those challenges, we initiated setting up production of the U.S. version of kick scooters and micro-mobility products in Southeast Asia starting the second half of 2024. Now, in January 2025, we successfully shipped our first Southeast Asia local manufacturing units to the United States, marking a crucial step towards supply chain optimization. Now, looking forward, we remain highly optimistic about the China market and overseas market. Now, for the China market, building on the strong foundation established in 2024, on the product side, over the past year, we refocused our product portfolio around our core N series and F series, reinforcing our leadership in key market segments. Our smart technology advancements have also shown early signs of success, with strong traction from customers and a clear roadmap for further innovations in 2025. We're also standardizing our key product platforms, which will improve the R&D process and also reduce the BOM cost. This will help us to improve the gross margin in the China market, which already reflected the early success in Q1 2025. The technology advancement and standardized platform has also prepared us well to roll out two new series for 2025 in China, one to address the new electric bicycle standard in China and one to address the premium motorcycles. On the sales channel in China, we have also regained channel momentum as we added around 900 stores in 2024 for the first time in the last three years. We're in the process of rolling out a new VI upgrade for our retail stores, which will be implemented for the 1,000 and the 1,500 new stores targeted this year. Now, lastly, with the new product rollout of the channel expansion, we also plan to increase our branding and marketing efforts significantly in 2025 in China, targeting a broader range of consumer segments, both online and offline. We plan to ride this momentum gaining the key social media platform in 2024 and triple our online exposures in 2025. We have observed early signs of fast growth in Q1 this year, with our retail sales year-to-date increased by 50%+. We plan to continue to ride this growth momentum for the rest of the year. Now, for the overseas market in 2025, we expect our strategic efforts to drive tangible growth across key markets. The electric two-wheeler segment is poised for a strong rebound with our initial operation setup completed and a well-established local sales network now in place. All the key products are already debuted in EICMA 2024 and received well responses from dealers and consumers. The upgraded XQi3 will also provide additional growth catalysts for the off-road motorcycle market. The 120 existing dealers and the additional 100+ new dealers will help to drive the retail growth. For the micro-mobility market, we have reached solid retail coverage in the key countries by end of 2024. Those will provide a solid foundation for the baseline growth for 2025. In addition, we expect to enter new retailers in the key markets such as Italy, France, and the United States. While the kick scooter market has faced short-term challenges due to the increased tariffs, our supply chain adjustments are now fully implemented, positioning us to restore profitability and drive sustainable growth in the coming quarters. Now, with those initiatives in place, we expect to reach 1.3 million-1.6 million unit sales for the year of 2025. With that, let me turn the call to Fion. Thank you, Yan. Hello, everyone. Please note that our press release contains all the figures and comparisons you need, and we have also uploaded Excel format figures to our IR website for your easy reference. As I review our financial results, I'm referring to the fourth quarter figures unless I say otherwise, and all mandatory figures are in RMB if not specified. As Yan just mentioned, our total sales volume for the fourth quarter was 227,000 units, an increase of 65% compared to the same period of last year. Specifically speaking, China's sales volume was 182,000 units, 80% of the total sales volume, and overseas was 44,000 units, taking around 20% of the total sales volume. For the full year 2024, the total sales volume was 924,000 units, including 759,000 units in China and 165,000 units overseas. Total revenue for the fourth quarter was RMB 819 million, up 71% compared to the same period of last year. To break down the scooter revenues by region, scooter revenues in China were RMB 646 million, up 82% year-over-year, and represented 88% of the total scooter revenues. The increase was mainly due to the increase in the sales volume and revenue per scooter in China. China e-scooters ASP reached RMB 3,544, 15% higher on a quarter-over-quarter basis and 10% higher on a year-over-year basis. The overseas scooter revenue, including kick scooters, e-mopeds, and e-motorcycles, was RMB 87 million, representing 12% of the total e-scooter revenues. The branded scooter ASP decreased from nearly RMB 2,000, down around 10% year-over-year, and mainly driven by the higher sales contribution of the kick scooters. Accessories, spare parts, and services revenue was RMB 86 million, up 33% year-over-year, and representing nearly 10% of the total revenues. The increase was mainly due to an increase in accessories, spare parts sales in both China and international markets. For the full year 2024, the total revenue increased by 24% to RMB 3.3 billion. China's scooter revenue as a whole saw a nearly 28% year-over-year lift to RMB 2.6 billion. The overseas scooter revenue increased by 14% to RMB 397 million. The total overseas revenue, including scooters and non-scooters, contributed to nearly 13% of the total revenues. Let's take a look at ASP in 2024. The overall scooter ASP saw a slight decrease from RMB 3,323 to RMB 3,203. Among this, the China scooter ASP increased from RMB 3,344 to RMB 3,377, and driven by an increase in proportion of the premium series sales volume, which has a higher ASP. The overseas branded scooter ASP was RMB 2,402, a 25% decrease due to the change in the overseas product mix, with the kick scooter accounting for approximately 98% of the total overseas scooter sales volume. The gross margin for the fourth quarter was 12.4%, a decrease of 6.6 percentage points compared to the same period of last year. The decline in the overall gross margin was primarily driven by the shift in the overseas product mix and 25% in the U.S. tariff, both of which we mentioned last quarter. In addition, the year-end overseas holiday season incentives further impacted the margin this quarter, and this refactor has negatively impacted both overseas and overall gross margins. However, the China gross margin improved by 1.5 ppt compared to last quarter. For the full year 2024, our gross margin was 15.2%, down from 21.5% in the previous year, representing a year-over-year decline of 6.3 ppt. A 2.6 ppt decrease driven by the overseas factors, a lower margin product mix, and the 25% U.S. tariff, and the platform incentives during the holiday seasons. The other 3.7 ppt gross margin decline driven by the domestic markets, as we continue to allocate a portion of our margins to support the domestic distribution partners. Additionally, our premium lead-acid motorcycles yield lower margins compared to the same-tier lithium-ion models. Fourth quarter OPEX was RMB 193 million, RMB 53 million lower than the same period of last year. Selling and marketing expenses were RMB 136 million, RMB 55 million lower than last year, and mainly due to the decrease in rental and advertising and promotion activities in the overseas market. Research and development expenses were RMB 39 million, RMB 3 million higher than the fourth quarter of 2023, mainly due to the increase in staff cost and share-based compensation. G&A expenses were RMB 18 million, around RMB 1 million lower on an annual basis, mainly due to the decrease in allowance of doubtful accounts of RMB 1 million. For the full year 2024, the OPEX was RMB 750 million, 16% lower than 2023, and operating expenses as a percentage of revenue was nearly 23%. Selling and marketing expenses were RMB 490 million, RMB 6 million lower than last year, and about 15% of the revenues. Research and development expenses were RMB 130 million, RMB 21 million lower than last year, about 4% of revenues. G&A expenses were RMB 131 million, around RMB 114 million lower than last year, about 4% of revenues. Non-GAAP OPEX were RMB 727 million, representing 22% of revenue compared to 32% in 2023. In the fourth quarter, we had a net loss of RMB 73 million and non-GAAP net loss of RMB 67 million. On a full year basis, we had a net loss of RMB 193 million and non-GAAP net loss of RMB 169 million. Turning to our balance sheet and cash flow, we ended the year with RMB 1.1 billion in cash, restricted cash, term deposit, and short-term investments. On an annual basis, operating cash flow was inflow RMB 55 million, primarily because we made a net income after adjusting for non-cash items. Our Q4 CapEx was RMB 38 million. For the full year, CapEx was RMB 120 million, RMB 41 million higher than last year because of the store expansion and module cost in the domestic market. Now let's turn to guidance. We expected the first quarter revenue will be in the range of RMB 631 million-RMB 707 million, an increase of 25%-40% year-over-year. The sales volume for 2025 are expected to be in the range of 1.3 million-1.6 million units, as Yan just mentioned. Please be aware that this outlook is based on the information available as of the date and reflects the company's current and preliminary expectations, which is subject to change due to uncertainties related to various factors. With that, let's now open the call for any questions that you may have for us. Operator, please go ahead. Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment, please, while we compile the Q&A roster. Okay. The first question comes from Yating Chen with CICC. Your line is now open. Hello. This is Yating from CICC, and I have two questions. The first question is, what is your sales target for kick scooters in 2025? And considering the difficulty of achieving profitability in the kick scooter business, what is your long-term plan for this business? This is my first question. All right. I think it's a good question. For the kick scooters, we're looking at probably in the last year, we did about 160,000+ units. We're looking at anywhere between roughly 30% growth to 30-50% growth for 2025. I think with the kick scooter business, I think investors do concern about profitability. The issue with the last couple of years are, one, it's actually due to the high U.S. tariff I expected. As we mentioned in the call, that's being actually addressed, starting addressed last year, but really the first scooter being out of market is really from Southeast Asia manufacturing is actually January this year. Actually, the tariff went up even higher from 25% to potential 45% this year. All players or all products, all players actually increased the retail price in the United States. That actually basically gave us a good room for margins. We expect the kick scooters actually to return profitable this year. Okay. Thank you very much. My second question is about domestic market. Considering your new product planning and the channel expansion plans, what is your outlook for average selling price and the gross profit margin in domestic market in 2025? Because we have seen a significant decline of gross profit margin in Q4 2024. Okay. This is Fion. I'll take this question. Actually, in 2025, we already finished quarter one. Due to the trends from the consumer markets, our high-end or so-called premium series products are still popular from our consumers' demand, which means the retail price, the majority of our sales are coming from the retail price above RMB 5,000. This is maintained the same level in 2024. This year, since we are going to launch several series of the new models, as Yan just mentioned, to demonstrate our product smart functions and also the design advantages, we are going to maintain the high-end market player in the two-wheeler market in the domestic markets. We expect the ASP in the domestic market will not drop, but we may expect a slight increase in our ASP in the domestic market, but not a drastic increase in the ASP, since right now our premium series are almost 70% in our domestic sales. In 2025, we expect the concentration among the premium and mass premium product series, which will help us to get that slight increase in the ASP in domestic markets. Talking about the gross margin in the domestic markets, actually, along with the sales volume in the domestic market increase, we may get the benefit from the scale of the economy, especially in the BOM cost and also the other production costs like the staff cost and the amortization on the module cost, those non-BOM costs, which will help us to improve the gross margin in the domestic market product. We also think about the extra portion of the margin give-up to our sales distributor partners. We may think about to regain those gross profits from 2025. It is still in the decision-making process. Along with the new stores opened, continued, if we get the success store expansion, we will delay those profits to gain back. Both factors will give us an upside in the gross margin. Either of them will help us improve the domestic gross margin. Regarding the ASP and gross margin, we will expect a positive effect in 2025. Thank you. Thank you for your sharing. It is very clear. We expect the company's positive change in 2025. Thank you very much. That is all my questions. As a reminder, to ask a question, please press star 11 on your telephone. Our next question will come from Alice Li with Guotai Junan Securities. Your line is open. Okay. Can you hear me? Yes, clearly. Please go ahead. Okay. Thank you for taking my question. I have two questions here. The first one is that we have provided guidance on annual sales, which shows a high growth rate. May I ask if you can provide guidance on the expected net profit margin by 2025? And how much net profit margin can the company achieve within two or three years? Actually, 2025 is a recovering year to us. We are not going to share the net profit with the market yet. 2025, we are able to get the profitability overall for the overall listing call. Since we are going to release the quarter results every quarter, this frequency is good enough for the investors to follow us on the performance on the net profit. Normally, we will follow the general practice as the other U.S. listing company. We only provided the guidance to the sales volume, not the top line. Top line, we will give the guidance every quarter. Okay. My second question is that which quarter in 2025 is expected to see the company's net profit turn from loss to profit? Yeah. Good question. Actually, the first quarter is the lag quarter in our industry. This industry is quite seasonal. For the other competitors, actually, the first quarter is the lag season as well. We expect you to see the quarterly profit in the second quarter, which means from April to June, those three months, we will get the quarterly profits this year. Actually, the second quarter is also kind of like the second peak quarter every year. It will contain around 25%-30% of the revenue each year. Also, for the international market, the second quarter, no matter the weather or the logistic, are back into the normal level. Both the domestic market and the international market are right on the right track in the second quarter. We expect the second quarter will be the profits. Great. Thank you for answering my question. That's all. Yeah. At this time, I show no further questions in the queue. I would now like to turn the call back over to Mr. Li for closing remarks. Thank you, Operator. Thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on progress. Thank you. This does conclude today's conference call. Thank you for your participation. You may now disconnect.