REG - Vmoto Limited - Haiyong moves to Vmoto's Nanjing facility <Origin Href="QuoteRef">VMT.AX</Origin>

VmotoAnnouncement

29/10/2014 11:24

RNS Number : 0909U
Vmoto Limited
13 October 2014
HAIYONG MOVES TO VMOTO'S NANJING 
MANUFACTURING FACILITY 
Announcement 13 OCTOBER 2014
Further to the announcement on 22 September 2014 in relation to the acquisition of the business of high tech electronics company, Nanjing Haiyong Electronic Technology Co, Ltd ("Haiyong"), Vmoto Limited (ASX/AIM: VMT) ("Vmoto" or the "Company") is pleased to announce that Haiyong has now successfully moved all of its manufacturing to Vmoto's Nanjing manufacturing facility.
As stated previously, Haiyong represents an important acquisition for Vmoto and it has now been fully integrated into the Company's business through the establishment of a new subsidiary, Haiyong Electric Driving System Technology Co, Ltd ("Vmoto Haiyong").
Vmoto views the acquisition of Haiyong as a significant strategic initiative which will:
 give Vmoto access to EV technologies central to the electric driving system for Vmoto's own electric vehicle products;
 enable Vmoto to market EV technologies applications to its own customers;
 enable Vmoto to fast-track the development of its electric driving system;
 give Vmoto access to the three-wheel and four-wheel EV markets and further enhance the cooperation with three-wheel and four-wheel manufacturers in both China and overseas;
 materially increase Vmoto's production base, which will deliver improved economies of scale;
 allow Vmoto to access a more diverse base of EV products and markets; 
 allow Vmoto to further expand and strengthen Vmoto's presence and foothold in the Chinese market; and
 generate additional revenue and profit, with the acquisition expected to be EPS accretive from FY2015.
Vmoto's strategic goal for Vmoto Haiyong is to grow it into a leading global electric driving system manufacturing company.
As previously announced, consideration for the acquisition is a five times multiple of earnings initially based on Haiyong's audited net profit for the year ended 31 December 2013, to be satisfied by the issue of new ordinary shares in Vmoto (the "Consideration Shares"). It is envisaged that the first tranche of Consideration Shares to be issued to the controlling shareholder of Haiyong, Mr Haisheng Zhang will be issued by end of October 2014. The price per Consideration Share and accordingly the number of Consideration Shares to be issued in this first tranche shall be calculated by reference to the 14 day ASX traded VWAP to the date of issue and a further announcement in this regard will be made in due course. The second tranche of Consideration Shares will be made within 14 months and shall be subject to Vmoto Haiyong's profitability in the next 12 months.
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.
About Haiyong
Haiyong, based in Nanjing, China, was established in 2008 and focused on the research, development and production of high qualityelectric vehicle ("EV") motor speed controllers. Haiyong currently owns eight patents for its products. In 2012 and 2013, Haiyong successfully supplied its controller products to several top 10 EV manufacturers in China. Haiyong has also supplied controller products to Vmoto for use in Vmoto's electric two wheel vehicle products for export markets. Haiyong also exports its controller products to Taiwan, Malaysia, Germany, South Korea and Australia.

This information is provided by RNS
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