Sales plunge 82pc after scooter maker Vmoto pulls out of China
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Vmoto’s electric scooter sales plunged in the first three months of 2018 after the company pulled out of China.
Sales fell by 82 per cent from 12,485 to 2,159 quarter-on-quarter.
The sles fall was because Vmoto sold its 51 per cent holding in Shanghai Jiye (PowerEagle) for about $414,000 in December (but retained ownership of the PowerEagle trademark).
However, international sales also fell by 42 per cent to 2114 scooters globally — not including 45 sold in China.
The company (ASX:VMT) says these sales were of higher-value scooters, however.
The company is still earning revenue from China however, after leasing its Nanjing facility to Super Soco for rent of about $160,000 a year.
Vmoto — which has a market value of about $13 million — is trying to build sales in France where it has two new distribution agreements. It says it has “firm orders” for 2460 units in the coming months.
By the end of March Vmoto had $6.2 million in cash up from $3.2 million at the end of the December 2017.
The increase was largely due to a $2.2 million capital raise.
Vmoto shares dropped 5 per cent to 5.7c on Monday at midday.