Ann: Vmoto to Expand Manufacturing Capacity with New Facilities, page-50

"Flexibility to co-locate some key strategic suppliers within Vmoto’s manufacturing facilities for improving efficiency and quality control, also generating rental income from these suppliers."

This statement not only shines a light on the big jump in rent receipts in Q1/23 and also points out that the new factory isn't entirely about increasing production capacity, it also highlights the value of VMT's manufacturing license.

Is it a Moat?

The CCP's moves to reduce fragmentation and support the benefits that scale delivers to business operations, by limiting the number of manufacturing licences, without overly restricting competition, was the catalyst for the Strategic Alliance with Super Soco.

How benificial was that in the early days when B2C volumes were practically non existent everywhere except China. Super Soco raised all the capital for Rand D and wore all the early year losses while Vmoto thrived on its B2B business whilst building a retail sales and service network that also supported its business customers.

Is it travelling the same path with component manufacturers as volumes build to viable levels?