Niu Technologies (NASDAQ:NIU) stock tumbled on Friday as fourth quarter sales declined sharply from the prior year.
The Chinese electric scooter company reported the sale of 138,279 units for the quarter, down 41.9% from the fourth quarter of 2021.
“In the China market, we experienced even more challenges from Covid development and related policy changes during the quarter,” the company explained. “Beginning from early October, strict control measures led to a sharp retail traffic decline in our major markets, including Guangzhou, Beijing and other top-tier cities. Entering into December, Omicron outbreaks across the country severely disrupted manufacturing, logistics and offline store operations.”
The company expects sales to improve as restrictions are rolled back and life in its largest market slowly progresses back towards pre-pandemic norms. Shares of the Changzhou-based firm fell 4.45% in premarket trading on Friday.
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Authore – Abhi bhardwaj