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Vmoto Limited's Store Roll-Out Moves To Jurong City, Second Store In China

Vmoto Limited (ASX: VMT) is gaining a stronger foothold in the Chinese electric two wheel vehicle market, which is the largest in the world, after officially opening its second store.

Vmoto is planning to open more Vmoto retail stores in China and is evaluating a number of potential locations including Zhengzhou, Henan Province, Quanzhou, Fujian Province, Shanghai, Haikou, Hainan Province and Wulumuqi, Xinjiang Province.

The new store is located in Jurong City, Jiangsu Province, and is around 60 kilometres from its manufacturing facility in Nanjing. The area has a population of over 620,000.

The fully fitted out retail store covers 100 metres squared and occupies a corner location, which provides excellent exposure to potential customers.

The importance of the new store is that it delivers strategic advantages to Vmoto, including the ability to launch Vmoto's latest products into the Chinese market quickly.

In June Vmoto launched the first batch of six new models of electric two wheel vehicles, which were specifically designed to meet the needs of the local market. Additional models are already being developed.

Charles Chen, managing director for Vmoto, commented: "The opening of Vmoto's second retail store in China is another step towards Vmoto gaining a stronger foothold in China and consolidating its strategic advantages to access the Chinese market, which is the largest electric two wheel vehicle market in the world.

"We are excited about the opportunities in the Chinese market and plan to continue expanding our presence in China."

The China market

In the past ten years, China has been the largest electric two wheel vehicle market in the world, making up the majority of all global electric two wheel vehicle sales. In 2012 across the industry, 30 million units of electric two wheel vehicles have been produced in China and it is estimated to increase to 40 million units in 2015.

Maiden profit

The second store opening comes after the positive news that Vmoto achieved its maiden monthly profit in June 2013, as demand for Vmoto products exceeded expectations.

The net profit after tax figure for the month (unaudited) was around A$80,000 - and marked a significant milestone 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.

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