This article only represents the author's own views.
After more than a year of laying the groundwork for a global expansion, electric scooter maker Niu Technologies (NIU.US) appears to have found a winner with its popular electric kick-scooters, based on newly released preliminary third quarter sales data. Now the company just needs to regain traction in its home China market, where its sales continued to skid in the three-month period due to near-nonstop measures to control the Covid virus.
The bigger third-quarter picture for Niu wasn’t too pretty, but still held room for optimism. Like many Chinese companies, Niu is quickly discovering that overreliance on its home market carries huge risks recently due to the government’s “zero Covid” policy that places paramount importance on virus control – even at the risk of economic growth.