Ann: Preliminary Final Report, page-13

Hi Sents

My recollection was that they were going to undertake procuction of all models but only forecasted the Chinese figures. So I'm not sure.

But I thought that PE did not have a manufacturers licence and that's why they need VMT.

In any case, re the 2016 forecasts, my take on it is that they are forecasting a surge in PowerEagle sales.

Here's my thinking. Since 2012, 140,000 P/E units have been produced by VMT. Total OEM production during that time has been @$153k. In other words, P/E sales have historically represented 90% of OEM sales.
So in forecasting 100,000 PE unit sales in 2016, they are forecasting an increase in production by VMT / new JV of @53,000 units this year.

Let's say that Powereagle did maintain a production capacity for international/export product during the period 2012 to 2015, I can't see it matching or coming close to its domestic (Chinese) sales. I would have thought it was a relatively small percentage of their total sales.

In all the releases by VMT they keep bangin on about how Powereagle's base is in and around Shanghai.

In any case if you have some info on what PE's internationl sales were, it would be appreciated.

I was hoping that they could have expanded on this in today's pres but it would appear no-one here participated.

I was also hoping to get some insight into how much the negotiations in the last half of the year distracted VMT's and PE's senior people away from international marketing efforts as I figure this would jhave played a part in the drop-off in q4.

Anyway, any feedback appreciated.

Interesting times

Cheers