Lots to like about Vmoto but one of my less favorite aspects is...

Lots to like about Vmoto but one of my less favorite aspects is "reading the tea leaves" in their financial statements.

Despite careful and repeated inspection of all issued statements, apparently no one knows what happened to those flat packs...

> Also somehow they have managed to generate a Foreign Currency Translation Loss of $3.16m which has been recognised as an Other Comprehensive Loss (and not included in reported Profit)

> Regarding the $3.16m FX Translation loss that was recognised outside of the profit & loss, I noticed that in 2021 there was an almost exact opposite FX Translation gain booked to Other Comprehensive Income of $3.18m. Neither of these makes sense as they are very large amounts that would need massive currency movements to be correct. The accounts are presented in AUD but the majority of assets are held in China. AUD:CNY rate at the start of the year was 4.707 and at the end of the year 4.82. That is not a big enough movement on the offshore assets to create a $3m FX translation loss.


I wish the company would be more forthright and transparent with their backers & co-investors about what is going on in this entity we jointly "own".

For contrast, here's how another Australian-Chinese company I own, EZZ (also a stock I recommend), handled a query from holders about why their bank account interest seemed anomalously low, given the balance. If only we might get similarly responsive communication from Vmoto's management team.

"Thank you for your interest in and support of EZZ Life Science. Thank you also for your positive feedback.The question regarding EZZ's interest income has come up a few times now from shareholders and we will also seek to further explain this in the next 4C.In summary, given the significant volume of EZZ's trade with China with funds typically paid out in USD (FY23 72.1% of total revenue), the weakening AUD, and fairly low interest rates being paid on business transaction deposits, EZZ's Management has opted to keep a large portion of its cash reserves in a USD denominated bank account (with an Australian major bank). Such transactional foreign currency accounts generally earn minimal interest, if any, which is why you will have noted that interest revenue of $36k was recorded in FY23. You may also have noted that EZZ managed to record unrealised foreign exchange gains of AUD215,000.This quarter EZZ has locked a portion of its USD funds in a fixed term account interest at a higher rate, noting that the company still requires working capital from its cash balance for suppliers, marketing activities etc."