The Vmoto Ltd (ASX: VMT) jumped to a more than five-year high today after it released a market update.
The electric scooter manufacturer rallied 13.3% to $0.51 in after lunch trade when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) slipped 0.2% each.
The ASX small cap may be benefiting from the COVID-19 pandemic with increased demand on food delivery services – which uses e-scooters.
Record deliveries
Management said it's receiving strong interest from other business customers too, including parcel delivery and ride-sharing companies.
Vmoto reported selling a record breaking 6,389 units in the June quarter, which is 55% above what it achieved in the previous quarter. International orders accounted for 94% of these units.
It also reported that it delivered 2,000 units of its ride sharing products to Netherlands-based Go Sharing, and it received an additional order for another 1,500 units.
Further, Vmoto shipped its first order of 60 units to a new ride-sharing company in the Czech Republic called re.volt.
Riding the COVID and electric vehicle trends
Management is currently supplying products to seven sharing operators globally and is actively in discussions with 12 other sharing operators.
"With the European governments' initiatives encourage consumers to adopt electric vehicles and the impacts from Covid-19 on personal and public transportation and social distancing, the Company and its business are well positioned to benefit from these for longer term," said Vmoto in its ASX statement released today.
Financial position
The company completed a $4 million capital raise in May via a share purchase plan (SPP). This takes its total cash holding to $7.3 million at the end of June after it paid a RMB30 million ($6 million) capital contribution to Nanjing Vmoto Soco Intelligent Technology.
Vmoto reported having firm international orders for 6,353 units and it continued to receive further orders from its existing and new customers after the end of the latest quarter.
International interest
"In 2Q20, the Company signed a number of exclusive distribution agreements with international distributors across Armenia, Japan, Costa Rica, Panama and Thailand for the warehousing, distribution and marketing of its B2C range of electric two-wheel vehicle products," added the company.
"Vmoto has also supplied samples to and/or is in discussions with a number of potential B2C and B2B distributors and customers in Brazil, Bulgaria, Cuba, Dubai, Egypt, Kazakhstan, Maldives, Malaysia, Mongolia, Nepal, Indonesia, Israel, Mexico, Morocco, Nepal, Portugal, Philippines, Romania, Russia, Saudi Arabia, Singapore, Slovenia, South Africa, Spain, Switzerland, Turkey and Ukraine."
