Sometimes a company's growth story is all about doubling down on what works. For Niu Technologies (NIU), that means going all-in on China while letting international markets fade into the background.

The Chinese electric scooter maker saw shares rally Monday after reporting third-quarter results that tell a tale of two very different markets. Overall revenue climbed 65.4% year-over-year to $237.94 million (1.69 billion Chinese yuan), driven by a 49.1% jump in sales volume and an 11% increase in revenue per e-scooter. Adjusted earnings per share came in at 14 cents, a notable reversal from the 7-cent loss posted a year earlier.

But here's where things get interesting. The company sold 465,873 e-scooters during the quarter, up 49.1% from last year. Dig into those numbers, though, and you'll see the real story: China sales exploded 74.2% to 451,455 units, while international sales collapsed 73% to a mere 14,418 units.

A China-Centric Strategy

Niu isn't hiding from this reality—it's embracing it. E-scooter sales revenue from China hit 1.48 billion Chinese yuan, up 85.8% year-over-year and representing a commanding 95.7% of total e-scooter revenues. The company attributes this to both the 74.2% volume increase and a 6.7% bump in revenues per e-scooter in the Chinese market.

Meanwhile, international markets contributed just 67 million Chinese yuan in e-scooter revenue, down 48.6% from last year and accounting for a slim 4.3% of total e-scooter revenues. The decline stems from falling sales volume and lower revenues per unit for kick-scooters overseas.

The company's distribution network reflects this strategic focus. As of September 30, 2025, Niu operated 4,542 franchised stores in China. Its international presence? Just 57 distributors across 53 countries.

Profitability Taking Shape

Beyond the top-line growth, Niu is making real progress on margins. Gross margin expanded to 21.8% from 13.8% a year ago, driven by a higher proportion of e-scooter sales and improved margins in China. The company's cost-reduction initiatives are clearly paying off.

Accessories, spare parts, and services revenue grew 50.8% to 145 million Chinese yuan, representing 8.6% of total revenues. That growth came primarily from increased accessories and spare parts sales in China—another sign of where the momentum is.

Revenue per e-scooter increased 11% to 3,636 Chinese yuan, reflecting both the higher sales proportion in China and better pricing in the home market. The company held 1.58 billion Chinese yuan in cash and equivalents as of quarter-end.

Looking Ahead

CEO Dr. Yan Li highlighted that the third quarter represents the company's peak season, noting that Niu achieved the strong 74.2% year-over-year sales volume increase in China through a competitive product portfolio and continued store expansion. As the business enters the seasonal low period and prepares for new national standards, Li said the team is proactively pushing channel expansion and product transition strategies.

For the fourth quarter, Niu expects revenue between 737 million and 901 million Chinese yuan, representing a year-over-year change ranging from negative 10% to positive 10%. That wide range reflects both seasonal patterns and the transition period the company is navigating.

Price Action: NIU shares traded up 8.74% to $4.230 in premarket activity Monday.