TIDMVMT
RNS Number : 8378U
Vmoto Limited
03 August 2015
MARKET UPDATE
ANNOUNCEMENT 3 August 2015
Vmoto Limited (ASX/AIM:VMT), the global scooter manufacturing
and distribution group specialising in "green" electric powered
two-wheel vehicles, is pleased to provide the following update on
its activities for the quarter ended 30 June 2015 (2Q15).
2Q15 HIGHLIGHTS
-- Trading in line with management expectations
-- Over 22,000 units sold for 2Q15, up 13% from 1Q15, with the
mix of sales evolving given the growing number of higher margin
sales into international markets
-- Appointed distributor for United Kingdom and Ireland markets
-- Progressing with establishment of internet based retail sales network and system
-- Progressing significant new market entry and distribution
opportunities, including North America, Italy, Switzerland and New
Zealand
-- Completion of 10 for 1 share consolidation
-- Successfully raised $8.9 million through an oversubscribed
placement to existing and new institutional and sophisticated
investors to fund growth initiatives
Commenting on Vmoto's continued growth over the second quarter
of 2015, Managing Director, Charles Chen said: "The June quarter
has been a very busy period for the business. Sales of our electric
two-wheel vehicle products continued to increase across our various
sales channels, in particular to international markets."
"Interest levels in our electric vehicle products remain high. A
number of old and new customers visited the factory during the
quarter seeking to enter into new orders or agreements for our
electric two-wheel vehicle products.
"Reflecting the increased international interest in our
products, we have commenced discussions with a significant European
supermarket group that has over 300 stores, and a high-tech North
American company developing shared transportation and communication
systems for electric vehicles. We have also progressed the
establishment of our internet based retail sales network and system
to expand sales and further increase profitability."
QUARTERLY SALES PERFORMANCE
Unit sales for 2Q15 were 22,041 units, up 13% from 1Q15,
comprising:
OEM 12,809
Chinese retail stores
and distributors 6,088
International 3,144
Total 22,041
2Q15 was a busy quarter for the Company with production and
sales increasing quarter on quarter. This trend is expected to
continue over the coming months. Trading was encouraging and in
line with management expectations.
Importantly the mix of sales continues to evolve with growing
sales into higher margin international markets. International unit
sales increased by 40% compared with 2Q14, while unit sales to
Chinese retail stores and distributors increased by 16% on 2Q14.
Low margin OEM sales declined slightly in line with the Company's
strategy to focus on higher margin sales to drive
profitability.
Internationally the Company continues its strong relationships
with its B2B and B2C customers, with many placing orders that will
flow through in future quarters.
In addition to existing customers in South America, Europe,
United States, South East Asia and the Middle East, Vmoto is also
progressing opportunities with potential new customers and
distributors from North America, Denmark, Switzerland and New
Zealand. These potential new customers represent significant B2B
supply opportunities including a large European supermarket group
with over 300 stores and a high-tech North American company
developing a share transportation and communication systems for
electric vehicles.
In China, the Company now has a sales network of 43 outlets
through a combination of its own retail outlets and third party
distributors. The Company also sold 12,809 electric two-wheel
vehicles to PowerEagle its OEM customer in China in 2Q15.
Discussions with PowerEagle to enter into a new agreement from 2016
are ongoing and an update will be announced as soon as
practicable.
As announced previously Vmoto's three and four-wheel joint
venture is now formally set up and operational. Due to the
significant initial preparations required, production and sales of
the first vehicles produced at the factory are expected to start
from August 2015.
As previously announced the Company is in the process of
establishing an online based retail sales network and system that
will open up a new sales stream for its products and substantially
broaden its reach throughout China and other offshore markets. This
is progressing well and is expected to be operational and
generating online sales by the end of 2015.
NEW DISTRIBUTOR FOR UNITED KINGDOM AND IRELAND
Vmoto is pleased that it has signed an exclusive distribution
agreement with a United Kingdom company to distribute, stock and
market the Company's Vmoto and E-Max range of electric scooter
products for United Kingdom and Ireland markets. The new UK
distributor is very proactive in the United Kingdom and Ireland
markets and has significant contacts within government departments.
The distributor has placed its first order for 40 units with
delivery scheduled for 3Q15.
CORPORATE
During the quarter, the Company completed a 10 for 1 share
consolidation and as at 30 July 2015 had 152,988,066 shares on
issue. This figure may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest
in, Vmoto.
In addition, Vmoto successfully raised A$8.9 million through an
oversubscribed placement to existing and new institutional and
sophisticated investors in Australia and the UK. The funds raised
have further strengthened Vmoto's balance sheet as it pursues
strategic initiatives to underpin future growth.
OUTLOOK
The June 2015 quarter was again another productive quarter for
Vmoto as unit sales across the various domestic and international
sales channel increased in line with management expectations.
The second half of the year is historically stronger and with an
encouraging forward order book to be fulfilled, and more domestic
and international distributors and customers due to visit the
factory to discuss and finalise orders, the Company expects to see
an increase in in production and sales over the coming months in
line with expectations previously provided to the market.
For further information, please contact:
Vmoto
Charles Chen, Managing Director
Olly Cairns, Non-Executive +61 8 9226 3865
Director +61 8 9226 3865
Investors - Market Eye
Ronn Bechler, Managing Director +61 400 009 774
finnCap Ltd
Christopher Raggett/Simon Hicks
(corporate finance)
Tony Quirke/Mia Gardner (corporate
broking) +44 20 7220 0500
About Vmoto
Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing
and distribution group. The Company specialises in high quality
"green" electric powered two wheel vehicles and manufactures a
range of western designed electric scooters from its low cost
manufacturing facilities in Nanjing, China. Vmoto combines low cost
Chinese manufacturing capabilities with European design. The group
operates through two primary brands: Vmoto (aimed at the value
market in Asia) and E-Max (targeting the Western markets, with a
premium end product). As well as operating under its own brands,
the Company also sells to a number of customers on an original
equipment manufacturer ("OEM") basis.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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