The following discussion of our financial condition and results of operations is based upon, and should be read in conjunction with, our audited consolidated financial statements and the related notes included in this annual report on Form 20-F. This report contains forward-looking statements. See “Forward-Looking Information.” In evaluating our business, you should carefully consider the information provided under the caption “Item 3. Key Information— D. Risk Factors” in this annual report on Form 20-F. We caution you that our businesses and financial performance are subject to substantial risks and uncertainties. ​ A. Operating Results Overview We currently design, manufacture and sell high-performance electric motorcycles, mopeds, bicycles, as well as kick-scooters and e-bikes. We have a diversified product portfolio that caters to the various demands of our users and addresses different urban travel scenarios. We have adopted an omnichannel retail model, integrating offline and online channels, to sell our products and provide services. We sold 1,192,039 units in 2025, including 1,112,021 units sold in the China market and 80,018 units sold in international markets. We sell and service our products through (i) our “city partner” system in China, which consisted of 623 city partners with 4,540 franchised stores in 320 cities in China as of December 31, 2025, (ii) our business partners in more than 40 countries overseas, including distributors, dealers and retailers, and (iii) our own online store and third-party e-commerce platforms. We also offer the NIU app as an integral part of the user experience. We currently generate a majority of our revenues from sales of e-scooters to our distributors and business partners offline or to individual consumers online. We also generate revenues by selling accessories and spare parts and providing mobile app and other services. Key Factors Affecting Our Results of Operations Our results of operations and financial condition are affected by the general factors driving China’s electric two-wheeled vehicles industry, including, among others, China’s overall economic growth, the increase in per capita disposable income, the expansion of urbanization, the growth in consumer spending and consumption upgrades, the competitive environment, and governmental policies and initiatives towards electric two-wheeled vehicles, as well as the general factors affecting the electric two-wheeled vehicles industry in international markets. Unfavorable changes in any of these general industry conditions could negatively affect demand for our products and materially and adversely affect our results of operations. In 2025, we experienced challenges stemming from intensified domestic and international competition, as well as a shift towards more value-conscious consumer behavior. Importantly, the full implementation of the New Electric Bicycle Standard (GB17761-2024) was a key regulatory development, increasing industry-wide compliance costs and accelerating market consolidation. These factors collectively influenced demand for our products and had significant implications on our operational outcomes. While our business is influenced by these general factors, our results of operations are more directly affected by company specific factors, including the following major factors: ● our ability to increase e-scooter sales volume; ● our ability to develop and sell more accessories and spare parts and services; 92 Table of Contents ● our ability to manage our supply chain and manufacturing; ● our ability to enhance our operational efficiency; and ● our ability to expand into international markets. Our ability to increase e-scooter sales volume Our results of operations depend significantly on our ability to increase sales volume of our e-scooters. Revenues generated from e-scooters represented 88.9%, 90.0% and 90.5% of our net revenues in 2023, 2024 and 2025, respectively. We sold 709,802, 924,340 and 1,192,039 units of e-scooters in 2023, 2024 and 2025, respectively. We experienced external challenges from the lingering effects of lithium battery price hikes in 2022, the consumption downgrade and intense competition in our addressable markets, posing significant headwinds. Despite these pressures, we have been committed to the strategy of focusing on premium and mass-premium products in 2023. This strategy, alongside the launch of several new products, enabled us to return to a growth trajectory in 2024. Although the industry-wide adjustments required by the New Electric Bicycle Standard posed significant headwinds, we maintained sales growth through the continuous introduction of innovative products in 2025. While we still face uncertainties and pressures, we expect that our domestic sales will further expand in 2026, driven by the continual introduction of innovative new products. The following table shows the number of e-scooters we sold in the years presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ Units ​ ​ ​ % ​ ​ ​ Units ​ ​ ​ % ​ ​ ​ Units ​ ​ ​ % NQi Series(1) ​ 40,099 ​ 5.6 ​ 302,706 ​ 32.7 ​ 493,884 ​ 41.4 MQi Series ​ 98,726 ​ 13.9 ​ 60,117 ​ 6.5 ​ 272,185 ​ 22.8 FQi Series ​ 209,554 29.5 ​ 180,855 19.6 ​ 233,271 19.6 UQi Series ​ 80,248 11.3 ​ 119,856 13.0 ​ 105,552 8.9 KQi Series ​ 100,508 14.2 ​ 161,522 17.5 ​ 70,074 5.9 GQi Series ​ 134,671 19.0 ​ 69,425 7.5 ​ 8,554 0.7 Others(2) ​ 45,996 ​ 6.5 ​ 29,859 ​ 3.2 ​ 8,519 ​ 0.7 Total 709,802 100.0 924,340 100.0 1,192,039 100.0 Notes: (1) Number of e-scooters sold including SQi, RQi and XQi series. (2) Others include BQi, CQi, OQi series and power-assist e-bike. Our ability to increase e-scooters sales volume depends on our ability to innovate in design and technology and offer e-scooter products that meet our users’ demand. We have a diversified product portfolio that caters to the various demands of our users and addresses different urban travel scenarios. Currently, we offer two model lineups, comprising a number of different vehicle types. These include (i) the electric motorcycle, moped and bicycle series, including the NQi, MQi, UQi, FQi series and others, and (ii) the micro-mobility series, including the kick-scooter series KQi and the e-bike series BQi. We will continue to expand our product offerings by growing the classic series and introducing new models, aiming to cover the full spectrum of the urban mobility solutions. Moreover, our ability to increase the sales volume also depends on our ability to continually enhance our brand to attract users and purchases, as well as our ability to successfully execute our omnichannel retail model and expand our sales network both domestically and globally. Our ability to develop and sell more accessories and spare parts and services Our results of operations are affected by our ability to develop and sell more accessories and spare parts, which generally have higher gross margins. Revenues generated from selling accessories and spare parts represented 7.5%, 7.4% and 6.9% of our net revenues in 2023, 2024 and 2025, respectively. Our results of operations are also affected by our ability to sell more services. We generate revenue from the NIU app by providing subscription-based mobile app services. Users will need to subscribe for the mobile app service by paying a fee after an initial period of one year. Revenues generated from providing services represented 3.6%, 2.6% and 2.6% of our revenues in 2023, 2024 and 2025, respectively. We will continue to further enhance the connectivity and other smart functionalities of our e-scooters and the NIU app, and improve the user experience. This not only provides us with additional revenue streams but also improves our gross margin. 93 Table of Contents Our ability to manage our supply chain and manufacturing Material and manufacturing costs of our e-scooters have historically accounted for a majority of our cost of revenues. Our future profitability is significantly dependent on our ability to control those costs as a percentage of our revenues, which in turn depends on our ability to effectively manage our supply chain and manufacturing process. Raw materials and components used in the production of our e-scooters are sourced from domestic suppliers as well as international suppliers, and their prices are dependent on various factors in addition to supply and demand. We generally engage multiple suppliers for the key components to minimize the dependency on any single supplier. We will continue to collaborate with our suppliers to manage the cost, capacity and quality of the raw materials and components. As our business grows in scale, we have obtained more bargaining power and hence more favorable terms from suppliers, including pricing terms. Our gross margin decreased from 21.5% in 2023 to 15.2% in 2024 due to general economic conditions and intense market competition, but increased to 19.6% in 2025 due to our enhanced product portfolios and cost-reduction initiatives. Our ability to control cost of products sold also depends on our successful adoption of automatic and intelligent manufacturing equipment and procedures, and effective utilization of our platform-based engineering system, through which designs of new models may be easily adaptable to our existing production lines. Our ability to enhance our operational efficiency Our ability to achieve profitability is dependent on our ability to improve our operational efficiency and reduce the total operating expenses as a percentage of our revenues. Excluding share-based compensation expense, selling and marketing expenses have historically represented the largest portion of our total operating expenses. Advertising and promotion expenses, consisting primarily of online and offline advertisements, are event-driven, and tend to be higher when we launch new products. Our selling and marketing expenses as a percentage of our revenues were 18.7%, 14.9% and 15.7% in 2023, 2024 and 2025, respectively. The increase of our selling and marketing expenses as a percentage of our revenues in 2025 was mainly resulted from increased advertising and promotion activities, especially in the domestic market. Our ability to lower our selling and marketing expenses as a percentage of revenues depends on our ability to manage our branding and promotion efforts, and improve selling and marketing efficiency. We have adopted an omnichannel retail model, integrating offline and online channels, to sell our products and provide services. As of December 31, 2025, our offline channels consisted of 623 city partners with 4,540 franchised stores in 320 cities in China, as well as business partners in more than 40 countries overseas, including distributors, dealers and retailers. These distributors and business partners promote our brand and market our products and services at their own cost. We aim to invest more in local branding and marketing, strengthen connections with our customers, and enhance our adaptability to local market changes. Through our distribution networks, we will continue to expand and leverage our sales network to enhance our brand and improve sales efficiency. In addition, as our business grows, we expect to achieve greater operating leverage, increase the productivity of our personnel, and obtain more favorable terms from our suppliers. Our ability to expand to international markets As of December 31, 2025, we sold our smart e-scooters through business partners in more than 40 countries overseas, including distributors, dealers and retailers. In 2023, 2024 and 2025, 15.2%, 13.5% and 7.1% of our revenues were derived from sales in international markets, respectively. We believe that our well-recognized NIU brand, together with our innovative design and expansion of product offerings, position us favorably to capture the growth potential in the global market, and we may enter into selected international markets that offer identified growth opportunities and favorable government policies. In Europe, the U.S. and Southeast Asia, we will continue to expand our sales network, launch new products suitable for local markets, partner with global leading companies to co-brand premium smart e-scooter models, and are exploring additional business opportunities to drive the growth beyond retail. We will pursue differentiated strategies for different overseas markets. We expect that our expansion into selected international markets will not only drive our revenue growth but also enhance our brand awareness. 94 Table of Contents Key Components of Results of Operations Revenues We generate revenues from sales of e-scooters, sales of accessories and spare parts, and provision of mobile app and other services. The following table sets forth the break-down of our revenues, in amounts and as percentages of revenues for the years presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands, except percentage data) Revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ E-scooter sales 2,358,659 88.9 2,960,508 90.0 3,896,480 557,189 90.5 Accessories and spare parts sales 197,634 7.5 241,680 7.4 299,172 42,782 6.9 Service revenues 95,465 3.6 86,108 2.6 112,213 16,046 2.6 Total 2,651,758 100.0 3,288,296 100.0 4,307,865 616,017 100.0 ​ We recognize revenues upon the satisfaction of our performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes), sales volume rebates provided to qualified distributors based on the volume sold to such distributors and business partners in a certain period and sales return estimated based on historical experiences. E-scooter sales. We generate a large majority of our revenues from sales of e-scooters to our distributors and business partners offline or directly to individual consumers online. We have adopted an omnichannel retail model, integrating the offline and online channels, to sell our e-scooters. In China, we have a “city partner” system, and sell e-scooters to the city partners. City partners are our distributors, who either open and operate franchised stores or sign up franchised stores, and the franchised stores sell our products and provide services to individual consumers. In international markets, we sell to business partners. We generate revenues by selling e-scooters to our city partners in China and overseas business partners at a discount to the retail price. In addition, we incentivize them by providing sales volume rebate. We also sell directly to individual consumers through third-party e-commerce platforms, as well as on our own online store. We treat distributors and business partners offline and individual consumers online as our customers. Accessories and spare parts sales. We sell proprietary accessories and spare parts to be installed on or used with our e-scooters, such as rear storage boxes and front baskets. We also offer NIU-branded accessories and general merchandise, such as decorative car plate, rear box, helmet and apparel. Service revenues. Our service revenues primarily relate to our services associated with NIU app, NIU Cover and R&D services to strategic partner. ● NIU app. We generate revenues from the NIU app by providing subscription-based mobile app services. The subscription fee for the initial one year is included in the retail price of our smart e-scooters, and after the initial period, users will need to pay a fee to renew the subscription. ● NIU Cover. We facilitate the sale of insurance policies for our e-scooters to individual customers, which are provided by third-party insurance companies. ● R&D services. We collaborate with a strategic partner for a joint R&D project and we generate revenues from the R&D services we provided. Cost of revenues Cost of products sold represents a majority of our cost of revenues, and the other components of cost of revenues include shipping costs, tariff costs, write-downs of inventories and warranty costs. 95 Table of Contents Cost of products sold mainly consists of the cost for purchasing raw materials and components, the labor cost and other costs for manufacturing e-scooters. We purchase raw materials and main components, such as batteries, motors, tires, battery chargers and controllers, from suppliers and assemble e-scooters in our own production facility. Gross margin Our gross margin is mainly affected by the retail price, product mix change, sales volume rebate and the cost of revenue per e-scooter. The following table shows our gross profit and gross margin for each of the years presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ (in thousands, except for percentage data) ​ ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ Gross profit ​ 570,747 ​ 498,763 ​ 843,571 120,629 ​ Gross margin ​ 21.5 % 15.2 % 19.6 % 19.6 % ​ Operating expenses Our operating expenses consist of selling and marketing expenses, research and development expenses, and general and administrative expenses. The following table sets forth the break-down of our total operating expenses, in amounts and as percentages of total operating expenses for each of the years presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands except for percentage data) Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling and marketing expenses 495,735 55.6 489,578 65.3 675,769 96,634 72.4 Research and development expenses 150,986 16.9 130,111 17.3 166,452 23,802 17.8 General and administrative expenses 244,518 27.5 130,618 17.4 90,964 13,008 9.8 Total 891,239 100.0 750,307 100.0 933,185 133,444 100.0 ​ Selling and marketing expenses. Our selling and marketing expenses primarily consist of advertising and promotion expenses, payroll and related expenses for personnel engaged in selling and marketing activities. The advertising and promotion expenses, consisting primarily of online and offline advertisements. We plan to continue to expand our new e-scooter product portfolio, sales network and retail channels, and engage in more selling and marketing activities to enhance our brand awareness and attract more purchases from new and existing customers in different geographic markets. Research and development expenses. Our research and development expenses mainly consist of payroll and related costs for employees involved in researching and developing new products and technologies, and design and development expenses, primarily including validation and testing fees. We plan to continue our innovation in design and technology and further expand our product portfolio. General and administrative expenses. Our general and administrative expenses mainly consist of payroll and related costs for employees engaging in general corporate functions, professional fees, allowance for doubtful accounts, foreign currency exchange gains and losses, and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as depreciation and rental expenses. Taxation Cayman Islands The Cayman Islands currently levies no taxes on corporations based upon profits, income, capital gains or appreciation. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on payments of dividends. 96 Table of Contents Hong Kong The first HK$2 million of profits earned by our subsidiary incorporated in Hong Kong, Niu Technologies Group Limited, is taxed at 8.25%, representing a half the current tax rate, while the remaining profits continue to be taxed at the current tax rate of 16.5%. Niu Technologies Group Limited is exempted from the Hong Kong income tax on its foreign-derived income. In addition, payments of dividends from Niu Technologies Group Limited to our company are not subject to any withholding tax in Hong Kong. No provision for Hong Kong profits tax was made as we had no estimated assessable profit that was subject to Hong Kong profits tax during 2023, 2024 or 2025. Mainland China Our mainland China subsidiaries, the VIE, and VIE’s subsidiaries are subject to the PRC Enterprise Income Tax Law and are generally subject to a statutory income tax rate of 25%. Under the PRC Enterprise Income Tax Law, preferential tax treatments will be granted to entities which conduct businesses in certain encouraged sectors and to entities otherwise classified as High and New Technology Enterprises (“HNTEs”). Jiangsu Xiaoniu and Beijing Niudian are currently qualified as HNTEs. Having obtained renewed HNTE qualifications in 2024 and 2025, respectively, Jiangsu Xiaoniu and Beijing Niudian enjoy a preferential income tax rate of 15% for the fiscal years from 2024 to 2026 and from 2025 to 2027, respectively. An entity could re-apply for the HNTE certificate when the prior certificate expires. The foregoing preferential income tax rates, however, are subject to periodic review and renewal by PRC authorities. The Enterprise Income Tax Law also imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise to its immediate holding company outside of mainland China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within mainland China or if the received dividends have no connection with the establishment or place of such immediate holding company within mainland China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with mainland China that provides for a different withholding arrangement. The Cayman Islands, where Niu Technologies is incorporated, does not have such tax treaty with mainland China. According to the Arrangement between the mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, dividends paid by a foreign investment enterprise in mainland China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5%, if the immediate holding company owns at least 25% of the equity interest of the foreign investment enterprise and satisfies all other requirements under the tax arrangement and receives approval from the tax authority. We did not record any dividend withholding tax, as our mainland China entities have no retained earnings in the periods presented. See “Item 3. Key Information— D. Risk Factors—Risks Related to Doing Business in China—We may not be able to obtain certain benefits under the tax treaty on dividends paid by our mainland China subsidiaries to us through our Hong Kong subsidiary.” The Enterprise Income Tax Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in mainland China be treated as a resident enterprise for mainland China tax purposes and consequently be subject to the mainland China income tax at the rate of 25% for its global income. The implementing rules of the Enterprise Income Tax Law define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-mainland China company is located.” Based on a review of surrounding facts and circumstances, we do not believe that it is likely that our operations outside of mainland China should be considered a resident enterprise for mainland China tax purposes. If our holding company in the Cayman Islands or any of our subsidiaries outside of mainland China were deemed to be a “resident enterprise” under the PRC Enterprise Income Tax Law, it would be subject to enterprise income tax on its worldwide income at a rate of 25%. See “Item 3. Key Information— D. Risk Factors—Risks Related to Doing Business in China—If we are classified as a mainland China resident enterprise for mainland China income tax purposes, such classification could result in unfavorable tax consequences to us and our non-mainland China shareholders or ADS holders.” 97 Table of Contents Results of Operations The following table sets forth a summary of our consolidated results of operations for the years presented, both in absolute amount and as a percentage of our net revenues for the years presented. Year-to-year comparisons of historical results of operations should not be relied upon as indicative of future performance. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands except for percentage data) Revenues 2,651,758 100.0 3,288,296 100.0 4,307,865 616,017 100.0 Cost of revenues(1) (2,081,011) (78.5) (2,789,533) (84.8) (3,464,294) (495,388) (80.4) Gross profit 570,747 21.5 498,763 15.2 843,571 120,629 19.6 Operating expenses ​ ​ ​ ​ ​ ​ ​ Selling and marketing expenses (495,735) (18.7) (489,578) (14.9) (675,769) (96,634) (15.7) Research and development expenses (150,986) (5.7) (130,111) (4.0) (166,452) (23,802) (3.9) General and administrative expenses (244,518) (9.2) (130,618) (3.9) (90,964) (13,008) (2.1) Total operating expenses(1) (891,239) (33.6) (750,307) (22.8) (933,185) (133,444) (21.7) Government grants 2,969 0.1 912 0.0 1,367 196 0.1 Operating loss (317,523) (12.0) (250,632) (7.6) (88,247) (12,619) (2.0) Interest expenses (1,424) (0.1) (5,624) (0.2) (6,130) (877) (0.1) Interest income 35,492 1.3 37,090 1.1 26,464 3,784 0.6 Investment income 1,426 0.1 2,359 0.1 5,544 793 0.1 Loss before income taxes (282,029) (10.7) (216,807) (6.6) (62,369) (8,919) (1.4) Income tax benefit 10,193 0.4 23,606 0.7 22,983 3,287 0.5 Net loss (271,836) (10.3) (193,201) (5.9) (39,386) (5,632) (0.9) (1) Share-based compensation expenses are allocated in cost of revenues and operating expenses items as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ (in thousands) Cost of revenues 1,238 751 858 123 Selling and marketing expenses 9,992 7,110 5,396 772 Research and development expenses 21,654 7,325 9,890 1,414 General and administrative expenses 14,775 9,047 11,587 1,657 Total 47,659 24,233 27,731 3,966 ​ 98 Table of Contents Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Revenues Our revenues increased by 31.0% from RMB3,288.3 million in 2024 to RMB4,307.9 million (US$616.0 million) in 2025, which was primarily driven by the increased sales volume of e-scooters. The revenues from e-scooter sales increased by 31.6% from RMB2,960.5 million in 2024 to RMB3,896.5 million (US$557.2 million) in 2025, which was mainly attributable to a 29.0% increase in e-scooters sales volume from 924,340 in 2024 to 1,192,039 in 2025. This increase in the sales volume was driven by the expansion of our domestic sales network, with the number of franchised stores increasing from 3,735 as of December 31, 2024 to 4,540 as of December 31, 2025, as well as the successful launch of new models throughout 2025. The revenues from accessory and spare parts sales increased from RMB241.7 million in 2024 to RMB299.2 million (US$42.8 million) in 2025, mainly attributable to the increased sales volume of e-scooters in domestic market, which usually correlates with purchases of accessories and spare parts. The service revenues increased from RMB86.1 million in 2024 to RMB112.2 million (US$16.0 million) in 2025, mainly due to increased service revenues generated through NIU app. The revenues per e-scooter increased from RMB3,203 in 2024 to RMB3,269 (US$467) in 2025, and the blended revenues per e-scooter (including accessories, spare parts and services) increased from RMB3,557 in 2024 to RMB3,614 (US$517) in 2025. These increases were mainly driven by a higher proportion of e-scooter sales from the domestic market. Cost of revenues Our cost of revenues increased by 24.2% from RMB2,789.5 million in 2024 to RMB3,464.3 million (US$495.4 million) in 2025. The increase was primarily attributable to an increase in cost of products from RMB2,639.4 million in 2024 to RMB3,259.2 million (US$466.1 million) in 2025, which was generally in line with the increase in e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, decreased from RMB3,018 in 2024 to RMB2,906 (US$416) in 2025, which was primarily attributable to our cost-reduction initiatives. Gross profit We generated a gross profit of RMB843.6 million (US$120.6 million) in 2025, compared to RMB498.8 million in 2024. Our gross margin increased from 15.2% in 2024 to 19.6% in 2025, which was mainly driven by the performance in the domestic market, reflecting a strategic shift in product mix towards higher-margin e-scooters, along with our continued cost-optimization initiatives. This was partially offset by a lower gross margin for kick-scooters in international markets. Selling and marketing expenses Our selling and marketing expenses increased by 38.0% from RMB489.6 million in 2024 to RMB675.8 million (US$96.6 million) in 2025. This increase was primarily due to an increase of RMB130.0 million in advertising and promotion expenses, primarily driven by our expanded marketing activities in domestic market, an increase of RMB39.7 million in staff cost, and an increase of RMB27.7 million in rental expenses, mainly resulting from international business operations. These increases were partially offset by a decrease of RMB16.1 million in depreciation and amortization. Our selling and marketing expenses as a percentage of our revenues increased from 14.9% in 2024 to 15.7% in 2025. Research and development expenses Our research and development expenses increased by 27.9% from RMB130.1 million in 2024 to RMB166.5 million (US$23.8 million) in 2025. The increase was mainly driven by an increase of RMB16.4 million in staff costs, primarily attributable to the increased research and development headcount in 2025, and an increase of RMB16.4 million in design and testing expenses, reflecting our efforts in new product development and technological advancement. Our research and development expenses as a percentage of our revenues slightly decreased from 4.0% in 2024 to 3.9% in 2025. 99 Table of Contents General and administrative expenses Our general and administrative expenses decreased by 30.4% from RMB130.6 million in 2024 to RMB91.0 million (US$13.0 million) in 2025. The decrease was primarily due to a favorable impact of RMB26.2 million from foreign currency exchange, and a decrease of RMB 13.5 million in allowance for doubtful accounts. Our general and administrative expenses as a percentage of our revenues decreased from 3.9% in 2024 to 2.1% in 2025. Government grants Our government grants increased from RMB0.9 million in 2024 to RMB1.4 million (US$0.2 million) in 2025. The government grants mainly consisted of subsidies from local government or industrial parks where our offices are located and there was no significant commitment, contingencies or provision for recapture conditions for the government grants received. Net loss As a result of the foregoing, we recorded a net loss of RMB39.4 million (US$5.6 million) in 2025, compared to RMB193.2 million in 2024. Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Revenues Our revenues increased by 24.0% from RMB2,651.8 million in 2023 to RMB3,288.3 million in 2024, which was primarily due to an increase in e-scooter sales volume. The revenues from e-scooter sales increased by 25.5% from RMB2,358.7 million in 2023 to RMB2,960.5 million in 2024, which was mainly due to an increase in the sales volume of e-scooters by 30.2% from 709,802 in 2023 to 924,340 in 2024. The increase in the sales volume of e-scooters was driven by the expansion of our sales network in China from 2,856 franchised stores as of December 31, 2023 to 3,735 franchised stores as of December 31, 2024, and the successful launch of new models throughout 2024. The revenues from accessory and spare parts sales increased from RMB197.6 million in 2023 to RMB241.7 million in 2024, mainly attributable to increase in the sales volume of e-scooters in domestic market, which usually correlates with purchases of accessories and spare parts. The service revenues decreased from RMB95.5 million in 2023 to RMB86.1 million in 2024, mainly due to the decrease in sales volume of e-motorcycles and e-mopeds in international markets, which primarily impacted our service revenues associated with NIU app. The revenues per e-scooter decreased from RMB3,323 in 2023 to RMB3,203 in 2024, and the blended revenues per e-scooter (including accessories, spare parts and services) decreased from RMB3,736 in 2023 to RMB3,557 in 2024. Such decreases were mainly due to the increased sales volume of kick-scooters in international markets, which generally have a lower sales price. Cost of revenues Our cost of revenues increased by 34.0% from RMB2,081.0 million in 2023 to RMB2,789.5 million in 2024. The increase was primarily attributable to an increase in cost of products from RMB1,992.5 million in 2023 to RMB2,639.4 million in 2024, which was generally in line with the increase in e-scooter sales volume. The cost per e-scooter, defined as cost of revenues divided by the number of e-scooters sold in a specified period, increased from RMB2,932 in 2023 to RMB3,018 in 2024, which was primarily due to a higher proportion of premium series sales in domestic market with higher cost per e-scooter. Gross profit We generated a gross profit of RMB498.8 million in 2024, as compared to a gross profit of RMB570.7 million in 2023. Our gross margin decreased from 21.5% in 2023 to 15.2% in 2024, which was mainly due to higher proportion of kick-scooters sales with lower sales prices and margin in international markets, changes in product mix of e-scooters, and increased sales incentives to franchisees. 100 Table of Contents Selling and marketing expenses Our selling and marketing expenses decreased by 1.2% from RMB495.7 million in 2023 to RMB489.6 million in 2024. This reduction was primarily due to a decrease of RMB29.4 million in depreciation and amortization, RMB23.5 million in rental expenses, which were partially offset by an increase of RMB20.2 million in staff cost, RMB12.2 million in after-sales services, and RMB5.2 million in advertising and promotion expenses. The decrease in depreciation and amortization was mainly due to a slowdown in store openings during 2022 and 2023. The reduction in rental expenses was primarily attributed to the optimization of our international operations. The increase in staff cost was primarily due to increased number of our sales staff. The increase in after-sales service expenses was mainly resulted from the increased sales volume of e-scooters. Our selling and marketing expenses as a percentage of our revenues decreased from 18.7% in 2023 to 14.9% in 2024. Research and development expenses Our research and development expenses decreased by 13.8% from RMB151.0 million in 2023 to RMB130.1 million in 2024. The decrease was mainly driven by a decline of RMB14.3 million in share-based compensation expenses, and a decrease of RMB5.6 million in design and testing expenses. The decrease in share-based compensation expenses was primarily attributable to the reduction in research and development personnel in 2023, leading to lower amortization expenses in 2024. The decrease of design and testing expenses primarily resulting from our cost-effective measures. Our research and development expenses as a percentage of our revenues slightly decreased from 5.7% in 2023 to 4.0% in 2024. General and administrative expenses Our general and administrative expenses decreased by 46.6% from RMB244.5 million in 2023 to RMB130.6 million in 2024. The decrease was primarily due to a decrease of RMB131.8 million in allowance for doubtful accounts, partially offset by an increase of RMB12.5 million due to foreign exchange gain or loss, and an increase of RMB13.2 million in staff costs. The increase in staff costs was mainly due to an increase in the number of employees with general corporate functions. Our general and administrative expenses as a percentage of our revenues decreased from 9.2% in 2023 to 3.9% in 2024. Excluding allowance for doubtful accounts, our general and administrative expenses as a percentage of our revenues was 3.7% in 2024, as compared to 4.0% in 2023. Government grants Our government grants decreased from RMB3.0 million in 2023 to RMB0.9 million in 2024. The government grants mainly consisted of subsidies from local government or industrial parks where our offices are located and there was no significant commitment, contingencies or provision for recapture conditions for the government grants received. Net loss As a result of the foregoing, we were in a net loss of RMB193.2 million in 2024, compared to RMB271.8 million in 2023. 101 Table of Contents B.Liquidity and Capital Resources Cash flows and working capital We had net cash provided by operating activities of RMB93.7 million, RMB52.3 million and RMB353.3 million (US$50.5 million) in 2023, 2024 and 2025, respectively. Our primary sources of liquidity have been cash provided by operating activities and financing activities. As of December 31, 2025, we had RMB1,135.6 million (US162.4 million) in cash, cash equivalents and restricted cash, of which approximately 48.1% were held in Renminbi and the remainder was mainly held in U.S. dollars. After considering all facts available to us as of the date of this annual report, we believe our cash and cash equivalents, restricted cash, term deposits and short-term investments will be sufficient to meet our current and anticipated needs for general corporate purposes for at least the next 12 months. We may, however, need additional cash resources in the future if we experience changes in business conditions or other developments. We may also need additional cash resources in the future if we find and wish to pursue opportunities for investment, acquisition, capital expenditure or similar actions. If we determine that our cash requirements exceed the amount of cash and cash equivalents we have on hand, we may seek to issue equity or equity linked securities or obtain debt financing. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all. We have the following short-term bank borrowings: ● In April 2022, we entered into a twelve-month revolving loan facility agreement with a commercial bank in mainland China, which was extended to mature in May 2026. Pursuant to this agreement, we were entitled to utilize the facility for short-term bank loans and bank acceptance notes up to RMB300 million. As of December 31, 2025, this facility was utilized for bank acceptance notes, with an outstanding balance of RMB184.3 million. ● In March 2023, we entered into a twelve-month secured loan facility agreement with a commercial bank in mainland China, pursuant to which we were entitled to utilize the facility for secured bank loans up to RMB160 million. In March and June 2024, we entered into two additional twelve-month secured loan facility agreements with the same bank, which were extended to mature in March and June 2026, respectively. Pursuant to each of the agreements, we were entitled to utilize the facility up to RMB100 million (RMB200 million in aggregate). As of December 31, 2025, total outstanding borrowings under these loan facility agreements were RMB200 million, secured by a U.S. dollar deposit equivalent to RMB210.9 million placed with the bank. ● In January 2024, we entered into a six-month revolving loan facility agreement with a commercial bank in mainland China, which was extended to mature in January 2025. Pursuant to this agreement, we were entitled to utilize the facility for bank acceptance notes up to RMB50 million. In March 2025, we entered into a twelve-month revolving loan facility agreement with the same bank, pursuant to which we were entitled to utilize the facility for short-term bank loans up to RMB20 million. In March 2025, we further entered into a six-month revolving loan facility agreement, under which we were entitled to utilize the facility for bank acceptance notes up to RMB60million. In October 2025, this facility was extended to mature in April 2026, with the cap increased to RMB100 million. As of December 31, 2025, total outstanding borrowings and notes payable under these loan facility agreements were RMB20 million and RMB100 million, respectively. ● In October and November 2024, we entered into two twelve-month revolving loan facility agreements with a commercial bank in mainland China, pursuant to each of which we were entitled to utilize the facility for short-term bank loans and bank acceptance notes up to RMB50 million (RMB100 million in aggregate). In December 2025, the facilities were extended to mature in December 2026, with the cap for each facility increased to RMB100 million (RMB200 million in aggregate). As of December 31, 2025, the outstanding borrowings and notes payable under these facility agreements were RMB 20 million and RMB80 million, respectively. 102 Table of Contents ● In June 2025, we entered into a twelve-month revolving loan facility agreement with a commercial bank in mainland China, which was extended to mature in June 2026. Pursuant to this agreement, we were entitled to utilize the facility for bank acceptance notes up to RMB30 million. As of December 31, 2025, the facility was utilized for bank acceptance notes, with an outstanding balance of RMB30 million. Although we consolidate the results of the VIE, we only have access to the assets or earnings of the VIE through our contractual arrangements with the VIE and its shareholders. See “Item 4. Information on the Company—C. Organizational Structure” For restrictions and limitations on liquidity and capital resources as a result of our corporate structure, see “—Holding Company Structure.” A substantial majority of our revenues have been, and we expect they are likely to continue to be, in the form of Renminbi. Under existing foreign exchange regulations of mainland China, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFE approval as long as certain routine procedural requirements are fulfilled. Therefore, our mainland China subsidiaries are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements. However, current regulations of mainland China permit our mainland China subsidiaries to pay dividends to us only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. Our mainland China subsidiaries are required to set aside at least 10% of its after-tax profits after making up previous years’ accumulated losses each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. These reserves are not distributable as cash dividends. Historically, our mainland China subsidiaries have not paid dividends to us. Furthermore, capital account transactions, which include foreign direct investment and loans, must be approved by and/or registered with SAFE, its local branches and certain local banks. The following table sets forth the movements of our cash flows for the years presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ (in thousands) Selected Consolidated Cash Flow Data: ​ ​ ​ ​ Net cash provided by operating activities 93,735 52,287 353,270 50,517 Net cash provided by (used in) investing activities 216,310 (292,429) (90,601) (12,956) Net cash (used in) provided by financing activities (59,346) 100,267 40,165 5,744 Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash 8,914 6,052 (13,649) (1,952) Net increase (decrease) in cash, cash equivalents and restricted cash 259,613 (133,823) 289,185 41,353 Cash, cash equivalents and restricted cash at the beginning of the year 720,627 980,240 846,417 121,036 Cash, cash equivalents and restricted cash at the end of the year 980,240 846,417 1,135,602 162,389 ​ Operating activities Net cash provided by operating activities in 2025 was RMB353.3 million (US$50.5 million), as compared to net loss of RMB39.4 million (US$5.6 million). The difference between net cash provided by operating activities and net loss was attributable to adjustments for certain non-cash expenses and net changes in working capital. Adjustments for non-cash expenses consisted principally of depreciation and amortization expenses of RMB111.0 million (US$15.9 million) and write-downs of inventories of RMB89.2 million (US$12.8 million). Changes in working capital accounts that affected operating cash flow consisted primarily of (i) an increase of RMB166.5 million (US$23.8 million) in accrued expenses and other current liabilities, (ii) an increase of RMB146.7 million (US$21.0 million) in advances from customers, (iii) a decrease of RMB101.3 million (US$14.5 million) in accounts receivable, partially offset by (iv) an increase of RMB89.5 million (US$12.8 million) in inventories, (v) an increase of RMB77.8 million (US$11.1 million) in prepayments and other current assets. The increase in accrued expenses and other current liabilities was primarily driven by an increase in refundable deposits received from franchised stores. 103 Table of Contents Net cash provided by operating activities in 2024 was RMB52.3 million, as compared to net loss of RMB193.2 million. The difference between net cash provided by operating activities and net loss was attributable to adjustments for certain non-cash expenses and net changes in working capital. Adjustments for non-cash expenses consisted principally of depreciation and amortization expenses of RMB122.1 million, write-downs of inventories of RMB30.0 million, and share-based compensation expenses of RMB24.2 million. Changes in working capital accounts that affected operating cash flow consisted primarily of (i) an increase of RMB423.0 million in accounts payable and notes payable, partially offset by (ii) an increase of RMB288.2 million in inventories, (iii) an increase of RMB58.8 million in prepayments and other current assets and (iv) an increase of RMB44.9 million in accounts receivable and notes receivable. The increase in accounts payable and notes payable was primarily due to enhanced efficiency of cash management. Net cash provided by operating activities in 2023 was RMB93.7 million, as compared to net loss of RMB271.8 million. The difference between net cash provided by operating activities and net loss was attributable to adjustments for certain non-cash expenses and net changes in working capital. Adjustments for non-cash expenses consisted principally of depreciation and amortization expenses of RMB148.1 million, allowance for doubtful accounts of RMB139.4 million and share-based compensation expenses of RMB47.7 million. Changes in working capital accounts that affected operating cash flow consisted primarily of (i) a decrease of RMB65.4 million in accounts receivable and (ii) a decrease of RMB33.3 million in accounts payable and notes payable. The decrease in accounts receivable was primarily due to enhanced efficiency of cash management. Investing activities Net cash used in investing activities in 2025 was RMB90.6 million (US$13.0 million), consisting primarily of cash paid for purchases of term deposits, short-term investments, and property, plant and equipment, partially offset by cash received from sale of short-term investments and withdrawal from term deposits. Net cash used in investing activities in 2024 was RMB292.4 million, consisting primarily of cash paid for purchases of term deposits, short-term investments, and property, plant and equipment, partially offset by cash received from sale of short-term investments and withdrawal from term deposits. Net cash provided by investing activities in 2023 was RMB216.3 million, consisting primarily of cash received from sale of short-term investments and withdrawal from term deposits, partially offset by cash paid for purchases of term deposits, short-term investments, and property, plant and equipment. Financing activities Net cash provided by financing activities in 2025 was RMB40.2 million (US$5.7 million), consisting primarily of proceeds from short-term bank borrowings, partially offset by repayments for short-term bank borrowings. Net cash provided by financing activities in 2024 was RMB100.3 million, consisting primarily of proceeds from short-term bank borrowings, partially offset by repayments for short-term bank borrowings. Net cash used in financing activities in 2023 was RMB59.3 million, consisting primarily of repayments for short-term bank borrowings, partially offset by the proceeds from short-term bank borrowings and exercise of employee stock option. Material cash requirements Our material cash requirements as of December 31, 2025 and any subsequent interim period primarily include our capital expenditures, operating lease obligations and purchase obligations. We made capital expenditures of RMB78.9 million, RMB119.7 million and RMB177.8 million (US$25.4 million) in 2023, 2024 and 2025, respectively. Our capital expenditures for 2023, 2024 and 2025 represented cash paid for purchase of property, plant and equipment. We will continue to make such capital expenditures to support the expected growth of our business. We intend to fund our existing and future material cash requirements primarily with anticipated cash flows from operations, our existing cash balance and other financing alternatives. 104 Table of Contents We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any off-balance sheet derivative instruments. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. We did not have any significant capital and other commitments, long-term obligations or guarantees as of December 31, 2025. Holding Company Structure Our company, Niu Technologies, is a holding company with no material operations of its own. We conduct operations in mainland China primarily through our subsidiaries and the VIE in mainland China. As a result, although other means are available for us to obtain financing at the holding company level, Niu Technologies’ ability to pay dividends depends upon dividends paid by our mainland China subsidiaries and license and service fees paid by the VIE in mainland China. If any of our existing or newly formed mainland China subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to Niu Technologies. In addition, our WFOE is permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under the laws of mainland China, each of our WFOE and the VIE is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, our WFOE may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at its discretion, and the VIE may allocate a portion of their after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of mainland China is subject to examination by the banks designated by SAFE. Our WFOE has not paid dividends and will not be able to pay dividends until it generates accumulated profits and meets the requirements for statutory reserve funds. C. Research and Development See “Item 4. Information On the Company—B. Business Overview— NIU Innovation Lab” and “—Intellectual Property.” D. Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events since January 1, 2026 that are reasonably likely to have a material and adverse effect on our revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future results of operations or financial conditions. E. Critical Accounting Policies and Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires our management to make judgments and estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenue generated, and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these judgments and estimates under different assumptions or conditions and any such differences may be material. For the year ended December 31, 2025, we had not identified critical accounting estimates that involve a significant level of estimation uncertainty and would have a material impact on our results. Recent Accounting Pronouncements We discuss recently adopted and issued accounting standards in Note 2, “Summary of Significant Accounting Policies—Recent Accounting Pronouncements” to our consolidated financial statements included elsewhere in this annual report. 105 Table of Contents