Ann: Notice of AGM/Proxy Form and Board Update, page-19

Well said,

Up early suffering from the dreaded jet lag and playing a bit of catch up while putting aside Janet Albrechsten's advice on this excellent Sunday morning.

Nice to see the Au Government sending, albiet a token , $10m (38c per person) of aid to Ukraine. To match the US we should send $22.38 / person. Krudd will have a bit of trouble spinning that to Donald.

Bob Hawke would likely recon Albo's lot are brainless bums. Time they got off the seat.

Hopefully the rest of the West's resolve to fund Ukraine's defence will keep the lid on any aggression ambitions from China and isolate Russia to the point that lets the world get back to normality and takes the pressure off discretionary spending and allows equity markets to regain their Appetite for risk.

Annual growth in Share price.

It's rare for a public company to recognise in their performance rewards your statement "at some point their successes and achievements have to be reflected in company profitability and share price."

VMT's has one and only one performance indicator that drives those awards and it's Annual growth in Share price.

Management need to achieve 20% compound growth in the share price over the three year period to win all their at risk pay. Referring to that as freebees is about as crazy as investing in bit coin.

The current "Share price only" performance indicator is heavily weighted against management when the market goes into "risk off" and PERs drop dramatically.

It would be fairer IMO if they had a mix of growth in NPAT/share and Growth in share price as the KPI's.


Worth noting that between the end of yr 2020 to end of 2023 the NPAT /share jumped from 1.3c to 2 c which is 15% PA compound growth. That rises 2.44c and 24% PA compound growth if you take out the shares that were issued to fund less than half the new factory that will double production capacity.

Equities markets for growth stocks went into decline during that period and instead of VMT's SP growing at 15% pa from 44c to 67c or 24% pa to 84C it fell to 14c.

How unfair was that to management and shareholders.



Lapse of 2023 awards:

I think it's fair to say that VMT is a much safer and potentially much better investment proposition than it was 3 years ago.

In spite of that, market conditions have driven the Share Price down , Share holders have suffered and management weren't rewarded for their achievements.There is a long list of good stuff that has happened in the last 3 years.

Where would we be if Management had merged with Super Soco ?

Probably up the same creek as NIU. Their profit/ share dropped from 1.12 RMB in 2020 to a loss of (1.73) RMB in 2023 and shareholders now have negative equity.

The next announcement will be interesting.

Good to have a bit riding on this pony.