The Vmoto Ltd (ASX: VMT) share price has fallen 7.7% to 47.5 cents this morning after tumbling almost 9% in opening trade today.
This comes despite a relatively positive update from the global electric vehicle company on its fourth quarter 2020 activities (quarter ending 31 December).
It also comes as the wider All Ordinaries Index (ASX: XAO) is following US and European markets sharply lower, currently down 1.2%.
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What did Vmoto report in its fourth quarter results?
In an announcement to the ASX this morning, the electric scooter manufacturer revealed strong performance, crediting its business to business (B2B) products for helping drive an increase in demand for its products.
The 6,028 units sold in the fourth quarter were consistent with Vmoto's expectations. Total units sold in the 2020 financial year reached 23,547 units. That's an increase of 18% from the previous financial year and up 117% from the 2018 financial year.
International sales also reached new records, with the 21,416 units sold representing a 24% increase from the previous financial year.
Vmoto reported it is currently has 7 ride sharing operators globally as clients, while it is negotiating with 14 other ride sharing operators. It is also supplying products to 12 delivery customers with 13 potential new deliver customers in the pipeline.
The company reported it had no bank debt as at 31 December with a net cash position of $15 million. That's up from just under $7 million net cash held on 31 December 2019.
Looking ahead, Vmoto reported that it has 11,000 international orders held, which it expects will provide a "runway for a strong year of sales" for the year ahead.
The company is also optimistic about its European market, writing:
With the European governments' initiatives to encourage consumers to adopt electric vehicles and the impacts from COVID-19 on personal and public transportation, the company believes it is well positioned to benefit over both the short and longer term.
Vmoto share price snapshot
The ASX's only two-wheeled electric vehicle manufacturer had a strong start to the year. Even with this morning's 8.7% loss taken on board, the Vmoto share price is still up 9.3% in 2021. That compares to a 2.5% loss for the All Ords.
Over the past 12 months, Vmoto's share price is up 68%. The company has a market cap of $142 million.
