Vmoto Limited's (ASX: VMT) shares are expected to trade higher after the company delivered its most profitable month to date in October 2013, as the Chinese market continues to embrace its electric scooters.
Vmoto made a A$192,000 profit for October with 2,490 units sold through its six stores, with the company reaffirming guidance that it will make a maiden annual profit for the financial year ending 31 December 2013 of between A$300,000 and A$600,000.
During the month two new stores opened in the Huaqiao District, Kunshan and Gaochun District, Nanjing, with another two stores currently planned.
PowerEagle electric scooter production still on track for 42,000 units to end of 2013, with 38,304 units produced to end of October 2013.
Store roll-out continues; fully-funded for expansion plans
Two more stores are currently planned and the Company expects to have more than 10 of its own retail stores opened by the end of 2013 - better than previously expected.
Vmoto recently raised $5 million in a placement which has placed the company in a position to be fully-funded for all current operations and expansion plans.
The company said that with the infrastructure in place at the facility for production ramp up, the board is optimistic about its position in the global electric scooter market and looks forward to reporting on developments within China and its overseas markets.
Vmoto recently expanded into the Indonesian market, which is the second largest market for petrol motor scooters, and potentially the third largest Asia Pacific electric scooter market.
Vmoto has now delivered another record profitable month as electronic scooter sales continue to increase in China.
With more stores planned and as the local market continues to embrace Vmoto's product, then sales will continue to increase and provide a platform for further revenue growth.
Importantly Vmoto has reaffirmed guidance of a maiden annual profit for the financial year ending 31 December 2013 of between A$300,000 and A$600,000.
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