Vmoto Limited Makes Maiden Monthly Profit In June 2013
Vmoto Limited (ASX: VMT) has achieved its maiden monthly profit in June 2013, with Chinese demand for Vmoto products exceeding expectations.
The net profit after tax figure for the month (unaudited) was approximately A$80,000 and marks a significant turning point in the company's history.
The profitable June month follows the successful launch of six of Vmoto's own models into China, the opening of its flagship shop in Lishui District, Nanjing and the ramping up of PowerEagle's strategic cooperation agreement.
Charles Chen, managing director of Vmoto, commented: "We are delighted to have produced a profitable month in June 2013 for Vmoto and its shareholders and look forward to reporting a maiden profit come the year end.
"The interest in our Chinese electric products, in less than two months since their launch, has exceeded our expectations and reaffirms the importance of Chinese market for electric scooters, where 40 million units are expected to be produced in 2015, making it by far the biggest and fastest growing in the world.
"With even more of our models soon to be on the roads, we are confident that Vmoto can increase production levels even more."
Fast tracking models due to interest
Vmoto said that the level of interest from distributors and customers in the company's products has been such that the it has already started fast tracking the development of at least eight more Vmoto models for the Chinese domestic market.
This is expected to take three to six months and, once completed has the potential to open up additional opportunities for the company to increase production and distribution throughout China.
Vmoto is currently reviewing sites in various regions of China with a view to opening more of its own stores.
Profit forecast
With the discussions senior management are having in China and based on the demand shown to date, the Company anticipates that it will make its maiden annual profit for the financial year ending 31 December 2013 of between A$300,000 and A$600,000.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.