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- Scooter manufacturer Vmoto (VMT) has received an order of 2000 units from ride-sharing customer Go Sharing
- GO Sharing recently officially launched in the Netherlands
- The ride-sharing specialist placed the big order after a visit to Vmoto’s Nanjing manufacturing facilities in China
- The monetary value of the order was not reported, but Vmoto had a profitable 2019
- Vmoto shares are down a slight 3.57 per cent today and currently worth 27 cents each
Scooter specialist Vmoto (VMT) has received an order for 2000 scooters from a ride-sharing customer, GO Sharing.
The ride-sharing group has formally launched operations in the Netherlands, and subsequently placed the new order for delivery in early March this year. The order came after GO Sharing visited Vmoto’s Nanjing manufacturing facilities in China.
With Vmoto’s focus on breaking into the electric vehicle ride-sharing market, the new orders bode well for the group who already delivered 670 units to GO Sharing over the second half of 2019.
Vmoto Managing Director Charles Chen said the company is “delighted” with the new Go Sharing order.
“Increasing demand from ride-sharing companies such as GO Sharing assists us in progressing positively on executing on our international [business-to-business] strategy,” Charles said.
He said the ride-sharing market is an important and strategic area of growth for Vmoto.
However, the company did not mention the monetary value of the 2000-unit order, so it’s not yet known how today’s deal will impact Vmoto’s balance sheet.
Regardless, in the company’s latest market update released last week, Vmoto said it had a strong positive cash position of $6.6 million at the end of the December 2019 quarter, with total sales up 16.3 per cent on the quarter before.
Further, Vmoto said it is on track to report a net profit after tax of between $1 million and $1.3 million the 12 months leading up to December 2019. For comparison, the end of 2018 saw Vmoto record a $0.9 million loss.
Of course, this guidance was reaffirmed before today’s new order. While this means the earnings boost will likely not be reflected in the company’s upcoming annual report, it sets Vmoto up nicely for the start of the new year.
Vmoto capped off today’s announcement to shareholders by assuring investors the Wuhan virus has not impacted company operations. The company’s Chinese Nanjing facilities are located 650 kilometres away from Wuhan, Charles explained, and as such, the outbreak has not reached the area.
Since the start of 2019, Vmoto’s shares have risen over 400 per cent. Today, shares are down a slight 3.57 per cent and currently worth 27 cents each. Vmoto has a $60.69 million market cap.
