Riding high: E-bike maker Vmoto (ASX:VMT) delivers strong 2020 performance 

Summary

  • Vmoto closed full year in 2020. The company has sold significantly higher units compared to the previous year. 
  • Its sales pipeline has continued to grow, and the company is also in discussions with many B2B customers. 

Vmoto Limited (ASX:VMT) is an electric mobility business. It develops and manufactures two-wheelers automobiles. The company has low-cost manufacturing through its wholly-owned 30,000sqm facility in Nanjing, China. 

On Monday, the company released fourth-quarter update ended 31 December 2020. In FY20, the company recorded a total unit sales of 23,547 units in international and China markets. The total unit sales were up 18% over FY19. 

In 4Q, the electric scooter company sold 6,028 units. Of the 4Q sales, international sales were 5,569 units, and 459 units were sold in China. During the year, the company achieved a record international sales of 21,416 units, excluding China. 

Source: VMT, 1 February 2021

At the end of the year, the company had a cash of $15 million after paying bank operating facility in full in December 2020. The cash balance represents an increase of $8.3 million compared to the previous year. 

Vmoto closed the year with international orders of 6,798 units. As of 1 February 2021, the company has international orders of over 11,000 units. This figure includes the order of additional 5,904 units from Greenmo Group

Source: Vmoto Website

The electric bike company said B2C products were also gaining traction, but the B2B market's interest remained strong. B2B business is driven by the rising demand from ride-sharing, food delivery, and parcel delivery. 

Related: COVID-19: A Tailwind for e-scooter Manufacturer Vmoto

Vmoto said it was supplying to server ride-sharing companies and was in discussions with an additional 14 ride-sharing companies. Food and parcel delivery businesses have a strong interest in its new delivery scooter – E-Max VS1. 

In the food and parcel delivery segment, it is presently supplying to 12 delivery B2B customers and is in discussion with thirteen potential customers. 

Vmoto intends to increase marketing spend to drive brand recognition. It believes that the business is well positioned to leverage growth over both the short and longer term. The company would be presenting at the upcoming World Premiere event.

VMT shares closed at $0.50, down nearly 2% from the previous close.

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