The Vmoto Ltd (ASX: VMT) share price is in the green today following a business update on its second quarter performance.
At the time of writing, the electric-powered scooter manufacturer's shares are up 2.74% at 37.5 cents, after earlier reaching an intraday high of 39 cents.
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What's driving the Vmoto share price higher?
Investors appear pleased with the company's latest release, sending Vmoto shares higher.
According to the announcement, Vmoto stated it delivered strong operational and commercial performance for the second quarter of FY21.
For the 3 months ending 30 June, the company achieved sales of 7,854 units, reflecting a 23% increase on the prior corresponding period. International sales accounted for 7,503 units with Vmoto experiencing strong momentum in overseas markets. Surprisingly, just under 5% of units were sold in China, indicating significant growth runway.
The company declared a healthy cash balance of $16.7 million with no bank debt. The group noted that the strong cash position allows it to pursue revenue-generating initiatives.
In addition, Vmoto recorded 9,636 units on its order book. This comes after the company secured and delivered the 5,904 units to Greenmo Group during the first half of FY21.
Pleasingly, the company expects sales to continue to increase from both new and existing customers in H2 FY21.
A number of international distributors were appointed for the warehousing, distribution, and marketing of its B2C range of electric vehicles. These included distributors across Indonesia, Mauritius, Bolivia, Czech Republic, Brazil, Cayman Islands, and Azerbaijan.
Vmoto also supplied samples and is engaged in discussions with potential B2B and B2C distributors and customers around the world. Its biggest markets could be Mexico, Pakistan, Russia, Singapore, South Africa, Spain and the United States, along with others.
About the Vmoto share price
It's been a volatile 12 months for Vmoto shares, down almost 22%. The company's share price appears to have been hampered by the ongoing impact of COVID-19, forcing restrictions on movement.
At today's price, Vmoto has a market capitalisation of around $104 million with approximately 278 million shares on issue.
