I agree with your point about the competition, and I suspect the situation in China is only going to become more cut-throat in the years ahead.
China's demographics suggest that there is going to be a shrinking pool of potential buyers over the next decade or so, with the number of people falling within the 20-49 cohort in that country dropping by over 70 million by 2027.
Maybe Vmoto could adjust to the ageing population in China by producing more mobility scooters in place of two-wheelers, but even so you would have to assume the margins would be lower.
For this reason, I see the market update announcement last week as more positive than negative: the figures suggest that they are continuing to shift their focus from China to regions with better prospects.
Certainly, it would have been ideal if they had commenced this transition earlier, but the previous direction was not sustainable, so it is encouraging to see that the management have taken heed of the concerns of shareholders and have started to steer the company in a more promising direction.
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