sleeping giant30 Nov 2013 21:00
Like all small start-up companies, a lot of money is needed to get a business from a notion or idea to a profitable business.
Vmoto, like many other small start-ups has experienced some severe issues over the years with market capitalization, and experienced a high cash burn, which many of you have read in past posts, but right now, it is looking to turn a corner, just at the right time to get in on the electric scooter markets of china and Indonesia.
As of late, the RNS announcement have expressed, it has plenty of cash, a growing monthly profit, and a growing business presence in China and soon into Indonesia.
VMT is the number 2 producer of electric scooters in the world and is one of the few companies in China to obtain a governmental licensed to produce electric scooters and also to have secured what is believe to be the first electric scooter distribution agreement in Indonesia.
The idea of electric scooters in these countries has always been a good one.The number of Scooters in these countries is Enormous.
Furthermore ,the cash high burn phase is possibly coming to an end for Vmoto ,from just producing revenue now to producing real profits.
Moreover,Vmoto presence in china is perfect timing. Additionally ,the trend in china is being politically driven to become a consumer focused market, a market wanting better quality products and lifestyle, this in turn will maintain its outstanding national growth it has experience over the last 20 years or so.
Besides all of this,Vmoto is now entering a young emerging or frontier market- Indonesia, could this be the place for VMT to make a significant or substantial difference to its balance sheet.
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