Ann: Vmoto acquires industrial land in Nanjing, China, page-83

Hi All

I have been racking my brain about the land purchase and the rationale behind it.

Possible and/or existing manufacturing / assembly locations have been mentioned by the company and include Indonesia, Brazil, Thailand, Malaysia, India.

And those moves really appeal to me (and several other posters by the sounds of it)

So the acquisition of the extra land seemed to go against the 'strategic flow' as the ex-China locations appeared to adequately allow for expected growth in motorbike/moped sales.

So, I'm throwing it out there that it might be for another reason and that is to do with different revenue streams.

This from the announcement about the land acquisition:

"The new land is a strategic move and represents excellent value for money for the company. It also represents a new milestone for the company as Vmoto is able to continue to grow its operations as it moves towards its goal of becoming a world class e-mobility solution provider".

This from the annual report:

"In addition to the range of electric motorcycles, the company is also developing battery swapping stations with the aim of diversifying its revenue streams and becoming known as an international new energy e-mobility solution provider."

In this case I am concluding that the battery swapping stations (and other e-mobility product) contribute to the vertical integration of the company beyond motorbikes and mopeds.

Lots of potential partners and we know Brazil (via Riba) is already 'flagging it'



A fair whack of speculation there but hopefully we get some clarity in the coming weeks.