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VmotoAnnouncement

10/11/2014 09:55

RNS Number : 5570W
Vmoto Limited
10 November 2014
VMOTO SIGNs COOPERATION AGREEMENT FOR ITS patented handle bar technology 
Announcement 10 NOVEMBER 2014
Vmoto Limited (ASX/AIM: VMT) ("Vmoto" or the "Company") is pleased to announce that it has signed a cooperation agreement (the "Agreement") with the third largest handle bar manufacturer in China, Changzhou Dusheng Electrical Equipment Co, Ltd ("Dusheng"), in relation to Vmoto's patented handle bar technology. 
Under the Agreement, the Company has authorised Dusheng to use Vmoto's patented technology in the future manufacturing and sales & distribution of its handle bars. In accordance with this Agreement, Dusheng will pay a royalty to Vmoto based on the sales volume of handle bars that use Vmoto's patented technology. 
In addition to producing premium "green" two wheel electric vehicles ("EV") for the Chinese and global markets, an element of Vmoto's growth strategy is to develop and maintain a position at the forefront of the industry in terms of product quality and EV technologies. The Agreement is a clear example of Vmoto's ability to develop leading edge EV technology and then commercialise it to grow shareholder value. 
Vmoto has developed and accumulated patents that provide significant technical advantages to an EV; including steering handle bars, interface control modules, battery management systems and electric motors, which are the core components of an electric driving system of an EV. These patents developed in-house by Vmoto are primarily used in the EV products produced by the Company to enable its products to maintain a market leading advantage. 
With a substantial portfolio of intellectual property ("IP") assets, Vmoto intends to strategically co-operate with major spare parts manufacturers to commercialise the Company's IP. This is expected to create additional revenues for Vmoto through royalties based on sales volumes, and will also fast track the penetration of Vmoto's technology to the market through spare parts manufacturers' sales channels. This type of co-operation has a number of advantages, including bringing key technology improvements to the EV industry and, importantly for Vmoto and its shareholders, maximising and generating additional revenue and profit streams for the Company without affecting the competitive advantages of Vmoto's products.


Dusheng partnership
Dusheng is the third largest professional handle bar manufacturing enterprise in China and is estimated to have produced around 6 million sets of handle bars for use in EV. 
In line with trying to improve the safety of EV's by changing the driving habits of the users with more advanced handle bar technology for an EV, Dusheng has been in active discussions with Vmoto regarding applying Vmoto's patented handle bar technology to two wheel and three wheel EVs in the market to provide superior driving convenience to all EV users. 
In accordance with the Agreement, Dusheng will focus on maximising the sales of handle bars with Vmoto's patented technology over the next two to three years. 
Commenting on the co-operation with Vmoto, Dusheng's Managing Director, Mr Jianjun Cheng, said:
"We are delighted to be integrating Vmoto's proprietary handle bar technology into an EV as it enables the driver to control the entire EV through the handle bar; including accelerating, braking, reversing and charging the battery whilst in motion. This changes the EV user's common understanding of an EV and what an EV can do. Integrating Vmoto's handle bar technology into an EV enables EV users to have a far more enjoyable experience. 
"Our aim is to apply Vmoto's patented technology across all EV markets, including two wheel, three wheel and even part of the four wheel market. Ultimately our goal is to have Vmoto's handle bar technology as a standard configuration for all customers' EVs. We hope to carry out similar technical co-operations with Vmoto in other areas."
Following the acquisition of Haiyong and its electric driving system, the Agreement with Dusheng marks another important development for Vmoto as the Company strategically positions itself at the forefront of research and development initiatives and technology innovation in EVs. As part of its growth strategy, Vmoto is focused on developing patentable technologies and applications in the EV and electric driving system that will bring significant benefits to the Company. 
For further information, please contact:
Vmoto
Charles Chen, Managing Director 
Olly Cairns, Non-Executive Director +61 8 9226 3865
Investors and media
Market Eye Pty Ltd 
Ronn Bechler +61 400 009 774
finnCap Ltd  
Ed Frisby (corporate finance)
Christopher Raggett (corporate finance)
Tony Quirke (corporate broking)  +44 20 7220 0500
About Vmoto
Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered two wheel vehicles and manufactures a range of western designed electric scooters from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting the Western markets, with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.

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The company news service from the London Stock Exchange
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