Ann: Vmoto Acquires the Business and Assets of its UK Distributor, page-91

Nice to know we can rest easy in the knowledge that the VMT management team have made another good acquisition that will earn higher profit margins.

"Direct sales to the B2C dealers will also allow Vmoto to earn higher profit margins ”

Vmt currently sells the bikes for an average of $3138. so there is some decent margins going to the Distributors and Dealers.

Picking up the distribution businesses after the hard slog of setting up the relationships with the dealers in early years is in the past makes a lot of sense to me particularly if you get the hard assets at a discount and there is no good will in the sums. There has to be a lot of productivity savings cutting out the middleman and selling direct to the dealers

VMT now:-
* own the UK distribution Business.
* are buying into an 8% interest into the Indonesian Assembly/ Distribution business via a discount on product sold mechanism. If it fails little is lost if it goes well VMT wins by providing early support.
* Have a Put and Call Contract to buy the other 50% of the Italian JV Distribution Business at a Multiple of EBITDA.



Vmoto’s Managing Director Mr Charles Chen said, “This is a strategic acquisition that provides Vmoto
with discounted assets and direct access to over 50 active B2C dealers in the UK, which is a large EV
market for the Company, and will allow Vmoto to further expand its presence in the UK with an
established management team. Direct sales to the B2C dealers will also allow Vmoto to earn higher profit
margins and focus on growing the UK market share with more focused support.”