Vmoto shares drop despite order surge
Vmoto has flagged a surge in orders after second-quarter sales to Europe of its electric scooters were more than double those of a year ago.
The manufacturer and distributor sold 2,371 vehicles to Europe in the three months to June 30, up from 1,059 in the prior corresponding period - with overall sales rising 8.8 per cent.
Vmoto, which manufacturers scooters in China, says orders nearly doubled from the first quarter to 4,452 units and that it has signed distribution deals in Argentina and Mexico.
"The increased order book is as a result of higher orders from distributors and demonstrates the rapid growth in adoption rates and demand for the company's electric vehicles within local European markets," the company said on Friday.
But investors seemed unimpressed and Vmoto shares were down 14.29 per cent at 12 cents at 1419 AEST.
Sales were down on the first quarter, but Vmoto said the numbers were in line with an expected upward trend from the prior corresponding period.
It said a small delay in finalising European approval of its CU model in November last year meant a backlog of orders was cleared in early 2019, resulting in record sales in the first quarter.
It expects stronger sales over coming quarters due to the order flows.
Orders for the B2B E-Max and the B2C Soco models are expected to be delivered to international customers and distributors in the next three to six months.
Vmoto announced it would be expanding into the sharing economy during a Ducati press launch in May, and have already supplied more than 170 scooters to rental service provider Zig Zag in Milan.
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