ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
VMOTO LIMITED ABN 36 098 455 460
1
AUDITOR
Bentleys Audit & Corporate (WA) Pty Ltd
Level 3, 216 St Georges Terrace
Perth, Western Australia 6000, Australia
BANKER
National Australia Bank
1238 Hay Street
West Perth, Western Australia 6005, Australia
SOLICITORS
Squire Patton Boggs
Level 21, 300 Murray Street
Perth, Western Australia 6000, Australia
Accuro Maxwell
Level 26, 56 Pitt Street
Sydney, New South Wales 2000, Australia
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000, Australia
Telephone: +61 8 9323 2000
Facsimile: +61 8 9323 2033
CORPORATE
DIRECTORY
DIRECTORS
Mr Charles Chen – Managing Director
Mr Ivan Teo – Finance Director
Mr Blair Sergeant – Non-Executive Director
Mr Kaijian Chen – Non-Executive Director
Ms Shannon Coates – Non-Executive Director
COMPANY SECRETARY
Ms Shannon Coates
PRINCIPAL AND REGISTERED OFFICE
Suite 5, 62 Ord Street
West Perth, Western Australia 6005, Australia
Telephone: +61 8 9226 3865
Facsimile: +61 8 9322 5230
SECURITIES EXCHANGE
Australian Securities Exchange
Level 40, Central Park
152-158 St Georges Terrace
Perth, Western Australia 6000, Australia
WEBSITE AND EMAIL
Website:
www.vmoto.com
Email: info@vmoto.com
ASX Code: VMT
Vmoto Limited is a public company incorporated in
Western Australia and listed on the Australian Securities
Exchange.
1
CONTENTS
1
3
4
7
15
25
67
69
70
75
Corporate Directory
Managing Director’s Letter
Operations Review
Directors’ Report
Remuneration Report
Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Additional Shareholder Information
2
MANAGING
DIRECTOR’S
LETTER
Dear Shareholders,
I would firstly like to thank you for your unwavering support during what became a landmark year, filled with numerous
challenges but ultimately resulting in the achievement of a number of significant commercial and operational
milestones for Vmoto.
It goes without saying that 2020 offered a unique set of challenges for economies and businesses globally and I am
delighted to be able to say that the experience and agility of the Vmoto Board and management team ensured we
were able to react quickly in revising our global growth strategies to ensure as little disruption as possible. Ultimately
we achieved total unit sales of 23,547, record revenues of $61 million (an increase of 34% on the FY2019) and a net
profit after tax of $3.7 million, an increase of 174% on FY2019.
These exceptional results were driven heavily by our focus on capitalising on growth in the B2B markets, as well as
the benefits realised via Vmoto Soco Manufacturing, our jointly owned manufacturing company with Super Soco that
was established in Q1 2020.
Vmoto’s B2B operations with its ride sharing, parcel and food delivery and distribution partners performed above
expectations as the Company secured an additional 23 international distributors, a record 4,300-unit order from Go
Sharing and commenced supplying to a number of new ride-sharing operators.
During the year, we undertook equity placements, including a share purchase plan to reward our valued shareholders
for their ongoing support, raising a total of $13.6 million and providing the Company with resources to ramp-up our
growth strategies, ensuring continued commercial success and shareholder wealth creation.
Vmoto is also strategically focussed on a B2C growth strategy, and subsequent to the year end, launched three new
B2C models, namely the new TS model, the new TC model and a CUmini model, into international markets. These
models were unveiled at the recent 2021 Vmoto Soco World Première.
The Company is in an incredibly strong position going into the new financial year and we are confident we will
continue on our current growth trajectory, especially with the increasing global focus on electric vehicles, net zero
carbon targets and sustainability.
On behalf of the Vmoto Board and Management, I would like to thank all of our shareholders for their ongoing support
and look forward to updating you on our upcoming achievements.
Yours faithfully
Charles Chen
Managing Director
3
3
VMOTO LIMITED
OPERATIONS
REVIEW
OVERVIEW - Highlights
Financial Overview for FY2020
•
Statutory results
»
»
»
»
Total revenue of $61 million, up 34% on
FY2019
Net profit after tax (NPAT) of $3.7 million, up
174% on FY2019
Earnings before interest, tax, depreciation
and amortisation (EBITDA) of $5.8 million,
up 102% on FY2019
Strong positive cash flows from operating
activities of $4 million, up 139% on FY2019
•
•
•
Strong cash position of $15 million as at 31
December 2020, up 126% from $6.6 million as at
31 December 2019
No bank debt as at 31 December 2020, having
paid out the operating facility in full
Net tangible assets of $32.7 million at 31
December 2020, up 103% on FY2019
Operational Overview for FY2020
•
•
Total sales of 23,547 units of electric two-wheel
vehicles, up 18% on FY2019 and up 117% on FY2018.
Total international sales of 21,416 units, up 24%
on FY2019 and up 112% on FY2018.
• Order of 4,300 units secured from Vmoto’s
strategic ride-sharing customer, Go Sharing,
part of Greenmo Group, all of which have
been delivered. Additional order of 5,904 units
secured from Greenmo Group post period end.
23 international distributorships established via
ongoing expansion of Vmoto’s international
distribution network, together with continuing
discussions and samples shared with a
significant number of potential customers in
new markets. Vmoto now has a total of 46
international distributors.
Vmoto and its long-term partner, Super Soco,
established a new 50%/50% joint venture
manufacturing company to capitalise on more
efficient production and cost synergies
•
•
FY2020 – A landmark year of operational and
commercial growth for Vmoto
During the 2020 financial year, Vmoto delivered
exceptionally strong sales and revenue growth to
deliver a NPAT of circa $3.7 million. This is testament
to the Company’s dedication to its well-honed
international growth strategy, which still delivered
amidst the COVID-19 outbreak, despite lockdowns,
travel restrictions and other market challenges.
In spite of the aforementioned global economic
challenges, the Company sold a total of 23,547 units of
electric two-wheel vehicles representing an increase
of 18% on the previous financial year, translating to total
revenue of $61 million.
International markets
Vmoto’s B2C products have continued to generate
increased interest and recognition among motorcycle
enthusiasts and other consumers alike, whilst Vmoto’s
B2B products have received significant increased
interest from food delivery, parcel delivery, rental
companies and ride-sharing operators.
During the 2020 financial year, the Company signed
and renewed distribution agreements with 23
international partners across Paraguay, United Arab
Emirates, Peru, Russia, Serbia, Kosovo, Montenegro,
Bosnia, Herzegovina, Macedonia and Albania, Armenia,
Japan, Costa Rica, Panama and Thailand, Kazakhstan,
Malaysia, Nepal, Philippines and New Caledonia,
Argentina, Dominican Republic, Indonesia, Japan,
Lithuania, Romania and Ukraine, for the warehousing,
distribution and marketing of its B2C range of electric
two-wheel vehicles.
4
VMOTO LIMITED
•
To allow the establishment of solid credit and
trading terms with suppliers through economies
of scale, providing increased purchasing power
and freeing up working capital to enable Vmoto
to aggressively pursue its expansion plans; and
• Ongoing expansion of Vmoto Soco
Manufacturing’s research and development
capabilities, including Vmoto’s immediate
access to Super Soco’s research and
development capability.
Corporate
In August 2020, Vmoto successfully raised $9.6 million
(before costs) in an equity capital raising which was
supported by a broad range of strategic investors,
institutions and sophisticated and professional
investors. The raise was cornerstoned by Perennial
Value Management.
Earlier in 2020, the Company also completed a heavily
oversubscribed share purchase plan, raising a total of
$3.95 million from existing shareholders.
The funds raised have enabled the Company to
accelerate its growth and further capitalise on the
opportunities in the growing international market, in
particular the B2B markets, where the Company has
been able to offer flexible payment terms, facilitating
and supporting that growth. A portion of the funds
has also been applied towards working capital as
the Company fast tracks its expansion into other
international electric two-wheel vehicle markets.
The Company has actively increased the promotion
and marketing of the Company’s products worldwide,
including the recent online World Premiere event, in
addition to supporting influencers on various social
media platforms.
The Company maintains close relationships with its
existing network of distributors to deliver exceptional
products and customer service. This, in addition to its
sales strategy, has proven successful.
The Company has seen a further increase in interest
from business customers, including food delivery,
parcel delivery and ride-sharing companies for the
Company’s B2B products and Vmoto is now supplying
products to seven ride-sharing operators globally
and is in advanced discussions with an additional
fourteen ride-sharing operators. Further, the Company
is supplying delivery products to twelve delivery
customers globally and is in discussions with an
additional thirteen potential new customers operating
in this market segment.
Vmoto has also supplied samples to and/or is in
discussions with a number of potential B2C and B2B
distributors and customers in Bahrain, Bangladesh,
Bolivia, Brazil, Bulgaria, Columbia, Croatia, Cuba, Czech
Republic, Denmark, Dubai, Ecuador, Egypt, Georgia,
Greece, India, Israel, Mexico, Pakistan, Portugal, Romania,
Russia, Salvador, Saudi Arabia, Singapore, Slovenia,
South Africa, Spain, Switzerland, Turkey and United
States.
Vmoto and Super Soco established new
manufacturing company
In FY2020, Vmoto entered into a joint investment
agreement with its longstanding strategic partner,
Super Soco Intelligent Technology (Shanghai)
Co, Ltd, to establish a new jointly owned Chinese
registered manufacturing company, Nanjing Vmoto
Soco Intelligent Technology Co Ltd (Vmoto Soco
Manufacturing).
The issued capital of Vmoto Soco Manufacturing is
owned 50% by Vmoto and 50% Super Soco, and it is the
sole and exclusive manufacturer for both Vmoto’s and
Super Soco’s electric scooter and motorcycle products.
Under the terms of the agreement, Vmoto was
required to contribute RMB 30 million (~A$5.9 million)
in cash and/or assets by end of June 2020, which
served as the initial working capital for Vmoto Soco
Manufacturing. Vmoto has fulfilled this commitment.
Super Soco will also contribute RMB 30 million (~A$5.9
million) in cash and/or assets progressively by no
later than June 2025, based on the commercial
requirements of the joint venture company. This may
include contributions of Super Soco’s intangible assets,
including patents and molds.
The key strategic objectives and rationale behind
establishing Vmoto Soco Manufacturing are:
•
•
To strengthen Vmoto’s commercial relationship
with Super Soco;
Streamlining of supply chain processes, with
Vmoto Soco Manufacturing the sole and
exclusive manufacturer for both companies,
and Vmoto retaining exclusive sales and
marketing rights for Super Soco products
globally, excluding China;
5
VMOTO LIMITED OUTLOOK
As the COVID-19 situation continues to evolve around
the world, the Board and Management remain in
continuous discussion and preparedness, should the
implementation of a revised strategy be required.
However, having ended the 2020 financial year in
such a strong operational and financial position post
numerous commercial achievements, the Company is
confident in the strength of its global growth strategy
and therefore, in the absence of unforseen events,
expects similar levels of growth to be delivered for the
2021 financial year.
Vmoto continues to execute on its strategy of selling
high performance and high value electric two-wheel
vehicles into international markets and continues
to build both its B2B and B2C distribution network
worldwide.
Subsequent to year end, Vmoto secured a major order
valued at ~$13 million with its strategic B2B customer,
Greenmo Group. In addition, the Company is looking
to penetrate various new markets including the
world’s largest two-wheel vehicle market; India, where
subsequent to year end, it signed an MOU with one
of India’s largest travel technology companies, Bird
Group.
Vmoto is also focused on expanding its product range
to supply broader markets of electric vehicle users,
with 3 new B2C models launched in February 2021 and
plans to launch a new B2B electric delivery two-wheel
vehicle in the coming months. In addition, Vmoto is
evaluating and developing a new electric delivery
three-wheel vehicle in consultation with its existing
and new B2B customers and the Company is also
in discussions with a top European industrial design
company to develop new electric two-wheel vehicle
models, further enhancing the Company’s product
range.
The global focus on mitigating the impacts of climate
change and the transition towards electric vehicles
provide Vmoto a strong platform from which to
accelerate its growth. As a result, the Company has
broadened its commercialisation strategy and is
confident it will be able to deliver strong sales and
revenue growth in the coming year and beyond.
6
VMOTO LIMITED DIRECTORS’
REPORT
The Directors present their report together with the
consolidated financial statements of Vmoto Limited
(“Vmoto” or the “Company”) and its controlled entities
(the “Group”) for the financial period 1 January 2020 to
31 December 2020.
The Directors of the Company at any time during or
since the end of the financial year are set out below.
Directors were in office for the entire year unless
otherwise stated:
Executive Directors
Charles Chen
Managing Director
Ivan Teo
Finance Director
Experience and responsibilities:
Mr Teo joined the Company as Chief Financial Officer
in 17 June 2009 and has been a Finance Director
of the Company since 29 January 2013. Mr Teo is
an experienced finance executive with significant
experience in international business.
Mr Teo is a qualified Chartered Accountant and has
over 18 years of finance and accounting experience
with private and public companies in a diverse range
of industries including automobile, manufacturing,
mining and retail.
Mr Teo graduated from University of Adelaide, South
Australia with a Bachelor of Commerce and currently
resides in China.
Non-Executive Directors
Experience and responsibilities:
Mr Chen has been an Executive Director of the
Company since 5 January 2007 and Managing
Director since 1 September 2011.
Kaijian Chen
Independent
Non-Executive Director
Mr Chen is an entrepreneur in motorcycle industry
and has previously founded Freedomotor Corporation
Limited in 2004, which were subsequently acquired by
Vmoto through a management buyout of key assets.
Mr Chen holds a Bachelor of Automobile Engineering
from Wuhan University of Automobile Technology
(China) and a postgraduate Diploma of Business
Administration from South Wales University (UK).
Mr Chens began his career with Hainan Sundiro
Motorcycle Co, Ltd, the largest publicly listed industrial
company in Hainan Province, which was acquired
by Honda Japan in 2001. Mr Chen has held senior
executive roles with Hainan Sundiro from 1993 to 2002,
and professionally trained in broad aspect of the
motorcycle manufacturing and distribution operations
including international sales and marketing, research
and development, procurement and production.
Mr Chen resides in China, and oversees all of the
Company’s operations and activities
Experience and responsibilities:
Mr Chen has been a Non-Executive Director of the
Company since 1 September 2011.
Mr Chen has extensive experience in the motorcycle
manufacturing industry in China. He was formerly vice
president of Hainan Sundiro Motorcycle Co, Ltd, which
was the second largest motorcycle manufacturer
in China at the time, and which was subsequently
acquired by Honda in 2001.
Mr Chen also served as vice president for Xinri
E-Vehicle Co. Ltd, which is one of the largest electric
two-wheel vehicle manufacturers in China at present
and the first electric two-wheel vehicle enterprise in
China that listed on securities exchange. Currently, Mr
Chen is vice president of Changzhou Supaiqi E-Vehicle
Co, Ltd, which is one of the most renowned electric
vehicle manufacturers in China at present.
Mr Chen holds a degree from the Beijing Institute of
Technology and resides in China.
7
VMOTO LIMITED Shannon Coates
Independent
Non-Executive Director
Ms Coates has been a Non-Executive Director of the
Company since 23 May 2014.
Experience and responsibilities:
Ms Coates has been a Non-Executive Director of the
Company since 23 May 2014.
Ms Coates completed a Bachelor of Laws through
Murdoch University and has since gained over 20
years’ in-house experience in corporate law and
compliance for public companies. She is a Chartered
Secretary and an Associate Member of both the
Institute of Chartered Secretaries & Administrators and
Governance Institute Australia. She is also a graduate
of the Australian Institute of Company Directors.
Ms Coates is a director of Evolution Corporate Services
Pty Ltd, a company providing corporate advisory
services and is also company secretary to a number
of listed companies.
Blair Sergeant
Independent
Non-Executive Director
Experience and responsibilities:
Mr Sergeant has been a Non-Executive Director of the
Company since 4 November 2020.
Mr Sergeant is an experienced public company
executive, having been the former Founding Managing
Director of Lemur Resources Limited, as well as the
former Finance Director of Coal of Africa Limited,
which the company grew from a sub-$2m market
capitalisation to over $1.5b at its peak. Mr Sergeant
was also responsible for the acquisition of Vmoto in
mid-2006, resulting in reverse takeover of Optima
Corporation Limited. Furthermore, Mr Sergeant was
responsible for the acquisition of Freedomotor Ltd by
Vmoto Limited in early 2007.
During his career, Mr Sergeant has held the position
of Managing Director, Non- Executive Director and/
or Company Secretary for numerous listed entities
across a broad spectrum of industry.
Mr Sergeant graduated from Curtin University,
Western Australia with a Bachelor of Business and
subsequently, a Post Graduate Diploma in Corporate
Administration. He is a Chartered Secretary, member
of the Governance Institute of Australia, member of
the Australian Institute of Company Directors and
an Associate of the Australian Certified Practising
Accountants.
Phillip Campbell
Independent
Non-Executive Chairman
Resigned 4 November 2020
Experience and responsibilities:
Mr Campbell was appointed as Non-Executive
Chairman on 31 May 2017.
Mr Campbell’s career spans 35 years and includes
national and international postings across a range
of industries including resources, construction,
manufacturing, food, and engineering services.
Phillip has previously been a chairman of ASX listed
Fleetwood Corporation Limited, FMCG business,
Farm Pride Foods Limited and has previously been
a director of mining services company Pearl-Street
Limited; energy and technical services business, HRL
Limited; agricultural company, Fodder King Limited. He
is currently also a director and advisor to a number
of unlisted public and private organisations across
Australia.
8
VMOTO LIMITED
Directorships in other listed entities
Directorships in other listed entities held by Directors of the Company during the last 3 years immediately before 31
December 2020 are as follows:
Director
Mr Charles Chen
Mr Ivan Teo
Mr Kaijian Chen
2019
-
-
-
Ms Shannon Coates
Bellevue Gold Ltd
Flinders Mines Limited
Kopore Metals Limited
Mr Blair Sergeant
Bowen Coking Coal Limited
Rincon Resources Limited
Ikwezi Mining Limited
Celsius Resources Limited
Period of directorship
From
-
-
-
Current
2019
2020
Current
Current
Current
Current
To
-
-
-
2020
2018
2015
2018
2020
2020
2021
Directors’ Meetings
The number of Directors’ meetings and the number
of meetings attended by each of the Directors of the
Company during the year ended 31 December 2020
are:
Director
Held while Director
Attended
Board Meetings
Mr Phillip Campbell1
6
Mr Charles Chen
Mr Ivan Teo
Mr Kaijian Chen
7
7
7
Ms Shannon Coates
7
Mr Blair Sergeant2
1
6
7
7
5
7
1
1. Mr Campbell resigned on 4 November 2020
2. Mr Sergeant was appointed on 4 November 2020
There is presently no separate Audit, Nomination or
Remuneration Committee, with all committee functions
being addressed by the full Board.
Principal Activity
The principal activity of the Group during the year
ended 31 December 2020 was the development and
manufacture, marketing and distribution of electric
two-wheel vehicle (electric mopeds and electric
motorcycles).
Operating and Financial Review
Review of Operations
Vmoto Limited is a global electric two-wheel vehicle
(EV) manufacturing and distribution group. The
Company specialises in high quality electric two-wheel
vehicles manufactured from its own manufacturing
facilities in Nanjing, China. Vmoto combines
comprehensive and well-established Chinese
manufacturing capabilities and supply chain with
international design. The Group operates through two
primary brands:
•
•
E-Max, its own proprietary brand, targeting
international B2B markets, with high
performance products; and
Super Soco, a B2C brand for which Vmoto holds
international marketing rights outside of China.
9
VMOTO LIMITED
Total consolidated sales of $61 million were recorded
for the Group for the year ended 31 December 2020
(FY2019: $45.7 million). The revenue of the Group
has increased 34% compared to the year ended 31
December 2019, largely due to increased international
sales into the electric two-wheel vehicle market as the
Company capitalised on new government policies and
regulation in Europe supporting sustainable personal
electric mobility and the growth of businesses using
electric vehicles in their delivery and ride-sharing
operations. During the year ended 31 December 2020,
the Group recorded a net profit of $3,655,860 after
income tax (FY2019: $1,300,836). The earnings before
interest, tax, depreciation and amortisation (EBITDA)
for the year ended 31 December 2020 was $5,806,014
(FY2019: $2,889,707).
The following table provides a reconciliation between
the EBITDA and statutory net profit after tax for the year
ended 31 December 2020 and 31 December 2019:
Earnings before interest, tax, depreciation and amortisation
$5,806,014
$2,889,707
FY2020
FY2019
Depreciation and amortisation
Profit before interest and tax
Interest income
Interest expense
Income tax expense
Net profit after tax
($1,594,082)
($1,629,293)
$4,211,932
$124,510
($116,070)
($564,512)
$1,260,414
$109,157
($68,735)
-
$3,655,860
$1,300,836
The Directors believe this information is useful to
provide investors with transparency on the underlying
performance of the Company.
sales activities. The Group’s long term strategic
customers have paid all their trade receivables due in
full on time post 31 December 2020.
Inventories stayed at $4.5 million, which is in consistent
with the year ended 31 December 2019. This represents
general inventories level to ensure products ordered
by customers are delivered on time in full in the most
efficient manner.
Prepayments decreased by approximately $3.6 million
largely due to the improved efficiency in productions
and delivery of finished products through the Group’s
jointly owned manufacturing company, Vmoto Soco
Manufacturing.
Intangible assets decreased by approximately $298k
due to amortisation of the PowerEagle trademark.
A more detailed review of operations for the year
ended 31 December 2020 is set out in the Operations
Review preceding the Directors’ Report.
Review of Financial Position
The Group’s net assets increased by approximately
$16.1 million during the year ended 31 December 2020.
Cash balances increased by approximately $8.3
million during the year ended 31 December 2020 due
to increased sales and orders from customers, and
additional funding secured through a share purchase
plan and a placement to strategic investors and
existing shareholders in order to ramp up the Group’s
growth strategies. During the year, the Group has
continued to receive significant deposits and funds
from customers for growing orders and to invest
further into working capital for the Group’s expanding
international distribution operations especially in
Europe, with an aim to continue to penetrate further
into international markets and further consolidate the
Group’s position as a world leading electric two-wheel
vehicle company.
Trade and other receivables increased by $6.6 million,
largely due to growing orders from the customers,
flexible payment terms to the Group’s long term
strategic customers with high credibility and increased
in credits from governments as a result of increased
10
VMOTO LIMITED Trade and other payables increased by approximately
$2 million during the period primarily due to increased
deposits from customers for more orders, which
are unearned until the products are delivered to
customers.
Issued capital increased by $14.5 million during the year
ended 31 December 2020, primarily due to completion
of a share purchase plan and placement to strategic
investors and existing shareholders. The proceeds
from the share purchase plan and placement have
strengthen the Group’s financial position and enabled
the Group to pursue a number of business deals
and fast track its growth in the growing B2C and B2B
electric two-wheel vehicle markets internationally.
No dividend has been declared or paid by the
Company to the date of this Annual Report in respect
of the year ended 31 December 2020.
Business Strategies and Prospects for Future
Financial Years
The Company’s business strategies for future financial
years include:
• Continue to focus on high value and
high margin international markets and to
become worldwide leading electric vehicle
manufacturer and provider to B2C and B2B
customers and markets internationally;
• Continue to improve the Company’s electric
•
•
•
•
two-wheel vehicle products to attract high
quality international business group customers;
Expand the Company’s product range including
electric three-wheel vehicle to supply to broad
spectrum of consumers and customers;
Expand its European distribution network and
warehouse in Europe to accelerate sales into
European B2C and B2C markets;
Expand its international distribution network and
work with strategic distributors/customers to
target large projects in local markets; and
Expand its international B2B business and
target large B2B customers in ride-sharing and
delivery sectors.
The potential material business risks faced by the
Company that are likely to have an effect on the
financial prospects of the Company and how the
Company manages these risks include:
• Competition in the electric two-wheel vehicles
industry – Vmoto operates in the electric
two-wheel vehicle industry and the Company
expects additional competitors to enter this
market that may have greater financial,
research and development, marketing,
distribution and other resources. We believe
that we can compete in this market very
competitively as Vmoto has the first mover
advantage having operated in the electric
two-wheel vehicle markets since 2009, Vmoto
manufactures its products in China that has
comprehensive and long history of supply
chain for electric two-wheel vehicles and
Vmoto has established a distribution network
over 50 countries in the world.
•
•
Technological obsolescence – given the
Company operates in an industry involving
electric vehicle technology, any technological
obsolescence could have an impact on
our financial results. We address this risk
through continued investment in research
and development, patent appropriate and
necessary research and development results,
recruitment of competent technicians and
constantly monitoring the market. We see this
risk as minimal as the Company is constantly
developing new technology and functions in its
electric two-wheel vehicle products and has
the protection of trademarks and patents.
Business relationship with Super Soco –
During the financial year, Vmoto signed a
joint investment agreement with Super Soco,
to establish a new jointly owned Chinese
registered manufacturing company, Nanjing
Vmoto Soco Intelligent Technology Co, Ltd
(Vmoto Soco Manufacturing). Vmoto and
Super Soco each own 50% of the issued
capital of Vmoto Soco Manufacturing. The
joint investment agreement reduced the risk
however changes in business cooperation and
circumstances of Super Soco could have an
impact on our financial results.
Impact of legislation and other external
requirements
The Group’s operations are not subject to any
significant environmental regulations. The Board
believes that the Group has adequate systems in
place for the management of its environmental
regulations and is not aware of any breach of those
environmental requirements as they apply to the
Group.
Clean Energy Legislative Package
The Clean Energy Legislative Package, which included
the Clean Energy Act 2011, was passed by the Australian
Government in November 2011. It sets out the way
that the government will introduce a carbon price to
reduce Australia’s carbon pollution and move to a
clean energy future.
The Group’s manufacturing activities are primarily
carried out in China and the Directors believe that
the Group will not be significantly affected by this
legislation passed. The Group has not incorporated
the effect of any carbon price implementation in its
impairment testing at 31 December 2020.
The Directors’ view is that there were no changes in
environmental or other legislative requirements during
the year that have significantly affected the results or
operations of the Group.
Events Subsequent to Balance Date
On 14 January 2021, the Company announced it had
secured a significant B2B order of 5,904 units from its
strategic B2B customer, Greenmo Group, representing
a total sales value of approximately A$13 million.
11
VMOTO LIMITED On 8 February 2021, the Company granted 970,000
shares to employees as an incentive and to recognise
their efforts in the year ended 31 December 2020.
On 15 March 2021, the Company announced it had
signed a memorandum of understanding (MOU)
with Bird Group of India regarding potential exclusive
distribution of the Company’s CUX and CUmini range
of electric two-wheel vehicles across India, which is the
world’s largest two-wheel vehicle market in the world.
Apart from noted above, there has not arisen in the
interval between the end of the financial period and
the date of this Annual Report any item, transaction
or event of a material and unusual nature likely, in
the opinion of the Directors, to affect significantly
the operations of the Group, the results of those
operations, or the state of affairs of the Group in future
financial years.
Likely Developments
Further information about likely developments in the
operations of the Group and the expected results of
those operations in future financial years are discussed
in the Operations Review.
Directors’ Interests
The relevant interests of each Director in the shares,
options and rights issued by the Company at the date
of this Annual Report are as follows:
Director
Mr Charles Chen1
Mr Ivan Teo2
Mr Kaijian Chen3
Ms Shannon Coates4
Mr Blair Sergeant
Ordinary shares
Options
Service & performance rights
22,487,784
1,371,207
2,912,539
437,929
-
-
-
-
-
-
4,050,995
1,686,122
-
-
-
1. 22,487,784 shares and 4,050,995 service and performance rights are held directly by Mr Charles Chen.
2. 1,371,207 shares and 1,686,122 service and performance rights are held directly by Mr Ivan Teo.
3. 2,912,539 shares are held directly by Mr Kaijian Chen.
4. 437,929 shares are held indirectly by Ms Coates’ spouse, Mr Simon Kimberley Coates as trustee for the
Kooyong Trust. Ms Coates is a beneficiary of the Kooyong Trust.
12
VMOTO LIMITED Service & Performance Rights
Insurance Premiums
On 18 December 2020, the Company issued 2,400,000
service rights to Mr Charles Chen and 1,000,000 service
rights to Mr Ivan Teo as approved by shareholders
on 16 December 2020. On 22 December 2020, the
Company issued 1,200,000 shares to Mr Charles Chen
and 500,000 shares to Mr Ivan Teo as a result of
vesting of 1,700,000 service rights.
On 18 December 2020, the Company issued 2,850,995
performance rights to Mr Charles Chen and 1,186,122
performance rights to Mr Ivan Teo as approved by
shareholders on 16 December 2020.
All Performance Rights convert to fully paid ordinary
shares for nil cash consideration, subject to
performance based vesting conditions. At the date of
this report, rights over unissued ordinary shares of the
Company are:
As at the date of this Annual Report, a Directors and
Officers insurance policy has been secured. The
insurance premium for this policy paid during the year
ended 31 December 2020 was $55,000.
Contingent Liabilities
The Company is currently a defendant in a
proceeding brought against the Company by a
former employee in relation to the employee’s past
employment. Having considered legal advice, the
Directors believe that the claim can be successfully
defended, without any losses (including for costs)
being incurred by the Company.
Non-audit services
During the year, Bentleys Audit & Corporate (WA) Pty
Ltd, the Company’s auditor, did not perform any non-
audit services in addition to their statutory duties.
Class
Number
Auditor’s Independence Declaration
2020 Service Rights
1,700,000
2020 Performance rights
4,037,117
The Auditor’s Independence Declaration is set out on
page 69 and forms part of the Directors’ Report for the
year ended 31 December 2020.
Options
At the date of this Annual Report, there are no options
over unissued ordinary shares of the Company.
Indemnification and Insurance of Officers and
Auditors
Indemnification
The Company has agreed to indemnify the current
Directors and Officers of the Company against all
liabilities to another person (other than the Company
or a related body corporate) that may arise from their
position as Directors and Officers of the Company,
except where the liability arises out of conduct
involving a lack of good faith.
The agreement stipulates that the Company will
meet, to the maximum extent permitted by law, the
full amount of any such liabilities, including costs and
expenses.
The Company has not agreed to indemnify their
current auditors, Bentleys Audit & Corporate (WA) Pty
Ltd.
13
14
REMUNERATION
REPORT
This remuneration report outlines the Director
and executive remuneration arrangements of the
Company and the Group.
Group given trends in comparative companies both
locally and internationally, and the objectives of the
Company’s remuneration strategy.
The Board as a whole is responsible for considering
remuneration policies and packages applicable both
to Directors and executives of the Company and the
Group.
Key Management Personnel have authority and
responsibility for planning, directing and controlling the
activities of the Company and the Group, including
Directors of the Company and other executives. Key
Management Personnel comprise the Directors of the
Company, key management and executives for the
Company and the Group.
Director and Key Management Personnel details
Remuneration packages consist of fixed remuneration
including base salary, employer contributions to
superannuation funds and non-cash benefits.
The Company has established a long-term incentive
plan, which is known as the Vmoto Limited Employee
Long Term Incentive Plan. This plan allows Directors
to offer equity securities to attract, motivate and
retain key directors, employees and consultants and
provide them with the opportunity to participate in
the future growth of the Company. Under the plan, the
Board may offer to eligible persons the opportunity
to subscribe for equity securities in the Company as
the Board may decide and on the terms set out in the
rules of the plan.
The following persons acted as Directors of the
Company during or since the end of the financial year:
Fixed remuneration
• Mr Charles Chen
• Mr Ivan Teo
• Mr Phillip Campbell (resigned 4 November 2020)
• Mr Kaijian Chen
• Ms Shannon Coates
• Mr Blair Sergeant (appointed 4 November 2020)
•
The term ‘Key Management Personnel’ is used in this
remuneration report to refer to the Directors and the
following persons. Except as noted, the named persons
held their position during or since the end of the
financial year:
Fixed remuneration consists of base remuneration
(which is calculated on a total cost basis and
includes any FBT charges related to employee
benefits including motor vehicle), as well as employer
contributions to superannuation funds.
Remuneration levels are reviewed annually by the
Board through a process that considers individual,
segment and overall performance of the Group. The
Board has regard to remuneration levels external to
the Group to ensure the Directors’ and executives’
remuneration is competitive in the market place.
• Mr Jeffrey Wu (International Sales Manager)
• Ms Susan Xie (International Sales Manager)
• Mr Xiaoliang Wan (Production & Purchasing
Manager)
• Mr Maik Spaan (Europe After Sales & Service
Manager, appointed 1 June 2020)
• Mr Gaetan Orselli (International Sales Manager,
appointed 1 July 2020)
• Mr Marcel Koper (Europe After Sales & Service
Director, resigned 31 May 2020)
Executive Directors are employed full time and receive
fixed remuneration in the form of salary and statutory
superannuation or consultancy fees, commensurate
with their required level of services.
Non-Executive Directors receive a fixed monthly fee for
their services. Where Non-Executive Directors provide
services materially outside their usual Board duties,
they are remunerated on an agreed retainer or daily
rate basis.
Overview of remuneration policies
Service agreements
Broadly, remuneration levels for Key Management
Personnel of the Company and Key Management
Personnel of the Group are competitively set to
attract and retain appropriately qualified and
experienced Directors and executives and reward the
achievement of strategic objectives. The Board may
seek independent advice on the appropriateness of
remuneration packages of both the Company and the
It is the Group’s policy that service agreements for
Key Management Personnel are unlimited in term but
capable of termination on 3 months’ notice and that
the Group retains the right to terminate the service
agreements immediately, by making payment equal
to 3 months’ pay in lieu of notice.
15
VMOTO LIMITED The service agreement outlines the components of
compensation paid to Key Management Personnel
but does not prescribe how remuneration levels
are modified year to year. Remuneration levels are
reviewed annually on a date as close as possible to
31 December of each year to take into account Key
Management Personnel’s performance.
Certain Key Management Personnel will be entitled
to bonuses as the Board may decide in its absolute
discretion from time to time.
Non-Executive Directors
Total remuneration for all Non-Executive Directors, last
voted upon by shareholders at the 2012 Annual General
Meeting, is not to exceed A$300,000 per annum and
has been set at a level to enable the Company to
attract and retain suitably qualified Directors. The
Company does not have any scheme relating to
retirement benefits for Non-Executive Directors.
16
VMOTO LIMITED
Relationship between the remuneration policy and Company performance
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and
executives. Two methods have been applied to achieve this aim, the first being a performance-based rights subject
to performance-based vesting conditions, and the second being the issue of options or shares to Key Management
Personnel to encourage the alignment of personal and shareholder interests.
The tables below set out summary information about the Group’s earnings and movements in shareholder wealth
for the last five reporting years:
In AUD
Revenue
Net profit / (loss) before tax
Net profit / (loss) after tax
31 Dec 2020
12 months
$’000
31 Dec 2019
12 months
$’000
31 Dec 2018
12 months
$’000
31 Dec 2017
12 months
$’000
31 Dec 2016
12 months
$’000
61,013
4,220
3,656
45,672
1,301
1,301
19,578
(918)
(918)
15,079
(8,097)
(8,097)
17,271
(14,081)
(14,093)
In AUD
Share price at start of period
Share price at end of period
Dividend
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
31 Dec 2020
12 months
31 Dec 2019
12 months
31 Dec 2018
12 months
31 Dec 2017
12 months
31 Dec 2016
12 months
$0.245
$0.44
-
$0.056
$0.245
-
$0.058
$0.056
-
$0.099
$0.058
-
$0.33
$0.099
-
1.45 cents
0.58 cents
(0.43 cents)
(4.68 cents)
(8.61 cents)
1.45 cents
0.57 cents
(0.43 cents)
(4.68 cents)
(8.61 cents)
17
VMOTO LIMITED
Directors’ and executive officers’ remuneration
Details of the nature and amount of each major element of the remuneration of each Director of the Company
and the named officers of the Company and the Group for the years ended 31 December 2020 and 31 December
2019 are:
SHORT-TERM
POST-
EMPLOYMENT
SHARE BASED
PAYMENTS
In AUD
Executive
Directors
Salary &
fees
$
STI cash
bonus
$
Superan-
nuation
benefits
$
Proportion of
remuneration
shares related
Proportion of
remuneration
performance
related
-
-
-
-
-
-
-
-
Mr Charles
Chen
12 months to Dec 2020
12 months to Dec 2019
350,0001
350,000
Mr Ivan Teo
12 months to Dec 2020
12 months to Dec 2019
152,5002
152,480
Non-Executive
Directors
Mr Phillip
Campbell3
(resigned 4 Nov
2020)
12 months to Dec 2020
12 months to Dec 2019
55,000
55,000
Mr Kaijian Chen4
12 months to Dec 2020
12 months to Dec 2019
-
-
Ms Shannon
Coates5
12 months to Dec 2020
12 months to Dec 2019
45,662
50,000
Mr Blair
Sergeant6
(appointed 4
Nov 2020)
12 months to Dec 2020
12 months to Dec 2019
10,000
-
-
-
-
-
-
-
-
-
-
-
-
-
Shares
$
Total
$
465,102
-
815,102
350,000
193,780
-
346,280
152,480
57%
-
56%
-
128,795
106,367
183,795
161,367
70%
66%
82,424
69,566
82,424
69,566
100%
100%
4,338
-
-
-
-
-
-
-
50,000
50,000
10,000
-
-
-
-
-
2%
-
2%
-
-
-
-
-
-
-
-
-
Total, all
Directors
12 months to Dec 2020
12 months to Dec 2019
613,162
607,480
-
-
4,338
-
870,101
175,933
1,487,601
783,413
58%
22%
2%
-
1. Mr Chen’s Director fees for the year ended 31 December 2020 was USD280,000.
2. Mr Teo’s Director fees for the year ended 31 December 2020 was USD122,000.
3. Mr Campbell resigned as Non-Executive Chairman on 4 November 2020. For the year ended 31 December 2020, Mr Campbell is entitled to $41,667
of his Director fees in shares.
4. Mr Kaijian Chen was appointed as Non-Executive Director on 1 September 2011. Mr Chen has agreed to receive his Director fees in shares and the
Company will seek shareholders’ approval for this issue at the 2021 Annual General Meeting. Mr Chen’s FY2019 Director fees were also paid in shares.
5. Ms Coates was appointed as Non-Executive Director on 23 May 2014. Ms Coates was appointed Company Secretary to the Company in 2007
and, via an associated company Evolution Corporate Services Pty Ltd, provides company secretarial, corporate advisory and Australian registered
office services to Vmoto for a monthly retainer. For the 2020 financial year, the Company paid Evolution Corporate Services Pty Ltd $66,000 for
these services, which is not included in the amount above.
6. Mr Sergeant was appointed as Non-executive Director on 4 November 2020.
18
VMOTO LIMITED
SHORT-TERM
Salary &
fees
$
STI cash
bonus
$
POST-
EMPLOYMENT
Superan-
nuation
benefits
$
SHARE BASED
PAYMENTS
Shares
$
Total
$
Proportion of
remuneration
shares related
Proportion of
remuneration
performance
related
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
116,668
171,690
-
-
-
-
23,488
14,558
150,142
119,856
14,289
7,886
81,201
93,501
16%
12%
18%
8%
12,456
8,025
63,267
81,522
20%
10%
-
-
-
-
63,805
-
49,552
-
-
-
-
-
42%
17%
37%
31%
37%
28%
-
-
-
-
50,233
30,469
524,635
466,569
10%
7%
22%
16%
In AUD
Executives
Mr Marcel Koper
(Europe After
Sales &
Service Director,
resigned 31 May
2020)
12 months to Dec 2020
12 months to Dec 2019
116,668
171,690
-
-
Mr Jeffrey Wu
(Sales Manager)
12 months to Dec 2020
12 months to Dec 2019
63,519
84,477
63,135
20,821
Ms Susan Xie
(Sales Manager)
12 months to Dec 2020
12 months to Dec 2019
36,802
56,466
30,110
29,149
Mr Xiaoliang
Wan
(Production
& Purchasing
Manager)
Mr Maik Spaan
(Europe After
Sales &
Service
Manager,
appointed 1 Jun
2020)
Mr Gaetan
Orselli
(Sales Manager,
appointed 1 July
2020)
12 months to Dec 2020
12 months to Dec 2019
27,601
50,490
23,210
23,007
12 months to Dec 2020
12 months to Dec 2019
63,805
-
12 months to Dec 2020
12 months to Dec 2019
49,552
-
-
-
-
-
Total, all
Executives
12 months to Dec 2020
12 months to Dec 2019
357,947
363,123
116,455
72,977
19
VMOTO LIMITED
20
Share-based payment arrangements
Shares
On 8 February 2021, 970,000 shares were granted to
Key Management Personnel as an incentive and to
recognise their efforts in the year ended 31 December
2020. The shares granted to Key Management
Personnel are subject to a three-year voluntary
escrow period.
Options
The Company operates an Employee Long Term
Incentive Plan (Plan) for eligible persons of the Group.
In accordance with the provisions of the Plan, eligible
persons may be granted options to purchase ordinary
shares at an exercise price to be determined by the
Board with regard to the market value of the shares
when it resolves to offer the options. The options may
only be granted to eligible persons after the Board
considers the person’s seniority, position, length of
service, record of employment, potential contribution
and any other matters which the Board considers
relevant.
Each employee share option converts into one
ordinary share of Vmoto Limited on exercise. No
amounts are paid or payable to the Company by the
recipient on receipt of the option. The options carry
neither rights to dividends nor voting rights. Options
may be exercised at any time from the date of vesting
to the date of their expiry.
The number of options granted is determined by the
Board.
There is no further service or performance criteria that
need to be met in relation to options granted before
the beneficial interest vests in the recipient.
During the year ended 31 December 2020, no options
were granted to Key Management Personnel under
the Plan.
Service & Performance Rights
As above, the Company operates an Employee Long
Term Incentive Plan for eligible persons of the Group.
In accordance with the provisions of the Plan, eligible
persons may be granted rights to attract, motivate
and retain key directors, employees and consultants
to participate in the future growth of the Company to
be determined by the Board and on the terms set out
in the rules of the plan. The rights may only be granted
to eligible persons after the Board considers the
person’s seniority, position, length of service, record
of employment, potential contribution and any other
matters which the Board considers relevant.
Each right converts into one ordinary share of
Vmoto Limited at nil consideration when service and
performance-based conditions as determined by the
Board are met within designated period. No amounts
are paid or payable to the Company by the recipient
on receipt of the rights or on conversion of the rights
to shares. Rights carry neither rights to dividends nor
voting rights.
The number of rights granted is determined by the
Board.
Rights under the Plan expire when the applicable
service and/or performance conditions are not met
within designated period, or immediately on the
resignation of the eligible persons, whichever is the
earlier.
Unless specified by the Board at the time of offer of
rights, there are no further service or performance
criteria that need to be met in relation to rights
granted before the beneficial interest vests in the
recipient.
21
Performance rights granted in FY2020
During the year ended 31 December 2020, 2,850,995 performance rights were granted to Mr Charles Chen and
1,186,122 performance rights were granted to Mr Ivan Teo pursuant to the shareholder approval on 16 December
2020.
The performance rights vest subject to:
• Continuing employment
• Minimum performance hurdle of a minimum share price compound annual growth rate (CAGR) increases
•
•
of 5% over the performance period
No performance rights will vest if CAGR is less than 5% over the respective period
50% of the performance rights will vest if CAGR of 10% is achieved, up to maximum of 100% of the
performance rights will vest if CAGR of 15% is achieved and pro rata of the performance rights will vest if
CAGR is >5%&<10% and >10%&<15%, as follows:
Performance right
grants
Performance
period
Share price
hurdle
Performance hurdles
25% vest
50% vest
100% vest
2020
performance rights
2 years to
5%
5%
10%
15%
31 December 2022
Service rights granted in FY2020
During the year ended 31 December 2020, 2,400,000 service rights were granted to Mr Charles Chen and 1,000,000
service rights were granted to Mr Ivan Teo pursuant to the shareholder approval on 16 December 2020.
Vesting of the service rights issued in the period is subject to continuing employment, with no other performance
conditions, vesting as follows:
Number of service rights granted
Grant dates
Vesting dates
1,700,000
850,000
850,000
3,400,000
16 December 2020
18 December 2020
16 December 2020
18 December 2021
16 December 2020
18 December 2022
Fair value of performance rights and service rights granted during the period
The fair value of services received in return for performance and service rights granted to executive directors
is measured by reference to the fair value of the rights granted. The estimate of the fair value of the services
received is measured by reference to the vesting conditions specific to the grant based on Black-Scholes valuation
methodology for service rights and Monte Carlo valuation methodology for performance rights.
Assumptions to determine fair value
of rights
2020 performance rights
2020 service rights
Grant date
16 December 2020
16 December 2020
Fair value at measurement date
Share price at grant date
Performance rights life
$0.3369
$0.36
2 years
$0.36
$0.36
Various
22
VMOTO LIMITED Share holdings and transactions of Key Management Personnel
The movement during the year ended 31 December 2020 in the number of ordinary shares held, directly, indirectly
or beneficially by each key management person, including their personally-related entities, is as follows:
Directors
Held at
1 Jan 2020
Held at
date of
appointment
Net change1
Granted as
remuneration
Received on
vest of
service rights
Held at
date of
resignation
Held at
31 Dec 2020
Mr P Campbell
1,999,721
Mr C Chen
21,107,383
Mr I Teo
Mr K Chen
Ms S Coates
720,873
2,670,115
347,728
Mr B Sergeant
N/A
Executives
Mr M Koper
Mr J Wu
Ms S Xie
Mr X Wan
Mr M Spaan
Mr G Orselli
-
750,000
450,000
460,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
-
-
60,134
378,808
-
2,438,663
N/A
180,401
150,334
-
-
1,200,000
500,000
-
242,424
90,201
-
-
-
-
-
-
-
300,000
200,000
341,001
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
N/A
22,487,784
1,371,207
2,912,539
437,929
-
N/A
1,050,000
650,000
1,001,001
-
-
1. Net change represents the acquisition and disposal of shares on market and exercise of options by the Key Management Personnel.
Option holdings of Key Management Personnel
The movement during the year ended 31 December 2020 in the number of options over ordinary shares held,
directly, indirectly or beneficially by each key management person, including their personally-related entities, is as
follows:
Held at
1 Jan 2020
Held at
date of
appointment
Additions
Granted as
remuneration
Exercised/
Expired
Held at
date of
resignation
Directors
Mr P Campbell
Mr C Chen
Mr I Teo
Mr K Chen
Ms S Coates
-
-
-
-
-
Mr B Sergeant
N/A
Executives
Mr M Koper
Mr J Wu
Ms S Xie
Mr X Wan
Mr M Spaan
Mr G Orselli
23
-
-
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
N/A
Held at
31 Dec 2020
N/A
-
-
-
-
-
N/A
-
-
-
-
-
VMOTO LIMITED
Service and performance rights holdings of Key Management Personnel
The movement during the year ended 31 December 2020 in the number of rights over ordinary shares held, directly,
indirectly or beneficially by each key management person, including their personally-related entities, is as follows:
Held at
1 Jan 2020
Held at
date of
appointment
Additions
Granted as
remuneration
Vested
Held at
date of
resignation
Held at
31 Dec 2020
Directors
Mr P Campbell
Mr C Chen
Mr I Teo
Mr K Chen
Ms S Coates
-
-
-
-
-
Mr B Sergeant
N/A
Executives
Mr M Koper
Mr J Wu
Ms S Xie
Mr X Wan
Mr M Spaan
Mr G Orselli
-
-
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,250,995
(1,200,000)
2,186,122
(500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
-
N/A
N/A
N/A
N/A
N/A
N/A
4,050,995
1,686,122
-
-
-
N/A
-
-
-
-
-
Other Key Management Personnel Transactions
During the year ended 31 December 2020, Evolution Corporate Services Pty Ltd, an entity associated with Ms
Shannon Coates, provided company secretarial, administration and registered office services to the Group
pursuant to consultancy agreement and received total fees of A$66,000 for the year ended 31 December 2020.
Other than the above, there have been no related party transactions involving any of the Key Management
Personnel identified in the table above during the year or the previous year.
This report is made with a resolution of the Directors
pursuant to s298(2) of the Corporations Act 2001.
Charles Chen
Managing Director
Dated at Western Australia,
this 30th day of March 2021.
24
VMOTO LIMITED CONSOLIDATED
STATEMENT OF
PROFIT OR LOSS AND
OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
Revenue from sale of goods
Cost of sales
Gross Profit
Other income
Operational expenses
Marketing and distribution expenses
Corporate and administrative expenses
Occupancy expenses
Other expenses
Share of losses from equity accounted
investments
Finance costs
Impairment of prepayments
Profit from continuing
operations before tax
Income tax expense
Profit after tax from continuing opera-
tions
Notes
2(a)
2(b)
8
4(a)
Year ended
31 December 2020
$
61,013,045
(46,655,366)
14,357,679
1,757,431
(7,517,213)
(750,607)
(3,330,413)
(158,804)
-
(21,631)
(116,070)
-
4,220,372
(564,512)
3,655,860
Year ended
31 December 2019
$
45,672,354
(36,018,789)
9,653,565
1,652,353
(5,116,299)
(1,389,552)
(2,561,260)
(271,949)
(28,753)
-
(68,735)
(568,534)
1,300,836
-
1,300,836
25
VMOTO LIMITED
Other comprehensive income
Notes
Foreign currency translation differences
Other comprehensive income for the
year, net of income tax
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR
Profit/(Loss) for the year attributable
to:
Owners of the Company
Non-controlling interests
Total comprehensive income for the
year attributable to:
Owners of the Company
Non-controlling interest
Year ended
31 December 2020
$
Year ended
31 December 2019
$
(2,037,580)
(2,037,580)
(111,406)
(111,406)
1,618,280
1,189,430
3,736,956
(81,096)
3,655,860
1,699,376
(81,096)
1,618,280
1,366,768
(65,932)
1,300,836
1,255,362
(65,932)
1,189,430
Earnings per share
22
Basic earnings per share
Diluted earnings per share
1.45 cents
1.45 cents
0.58 cents
0.57 cents
The consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.
26
VMOTO LIMITED
CONSOLIDATED
STATEMENT OF
FINANCIAL POSITION
AS AT 31 DECEMBER 2020
Notes
31 December 2020
$
31 December 2019
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total Current Assets
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
Intangible Assets
Investments accounted for using equity
method
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Loans and borrowings
Current tax liabilities
Lease liabilities
Total Current Liabilities
NON-CURRENT LIABILITIES
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Non-controlling interests
TOTAL EQUITY
5
6
7
8
9
14
10
11
12
13
4(e)
14
14
15
15
18
16
14,997,486
8,724,876
4,487,723
437,710
28,647,795
6,496,557
478,605
-
5,943,885
12,919,047
41,566,842
7,588,206
-
308,254
107,416
8,003,876
402,171
402,171
8,406,047
33,160,795
89,823,509
(2,711,667)
(53,925,418)
(25,629)
33,160,795
6,648,039
2,129,988
4,367,766
4,032,493
17,178,286
7,244,484
589,949
297,766
-
8,132,199
25,310,485
5,632,650
2,045,994
-
95,312
7,773,956
510,809
510,809
8,284,765
17,025,720
75,353,596
(720,969)
(57,662,374)
55,467
17,025,720
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
27
VMOTO LIMITED CONSOLIDATED
STATEMENT OF CASH
FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Other cash receipts
Net cash generated by operating
activities
Cash flows from investing activities
Payments for property, plant &
equipment
Payments for equity-accounted
investments
Notes
Year ended
31 December 2020
$
Year ended
31 December 2019
$
56,278,610
(52,917,135)
124,139
(84,373)
628,845
25
4,030,086
46,543,105
(46,023,578)
109,156
(60,881)
1,119,281
1,687,083
(590,946)
(195,748)
(6,182,635)
-
Net cash used in investing activities
(6,773,581)
(195,748)
Cash flows from financing activities
Proceeds from issue of equity shares
Payments for share issue costs
Proceeds from borrowings
Repayment of borrowings
Net cash generated by financing
activities
Net increase in cash and cash
equivalents
Cash and cash equivalents at the
beginning of the year
Effect of exchange rate fluctuations on
cash held
Cash and cash equivalents at the end
of the year
13,651,725
(226,079)
-
(2,026,599)
11,399,047
8,655,552
6,648,039
(306,105)
14,997,486
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
188,083
-
3,116,719
(2,290,280)
1,014,522
2,505,857
4,193,790
(51,608)
6,648,039
28
VMOTO LIMITED
CONSOLIDATED
STATEMENTS OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Non-controlling
Interests
Total
$
Balance as at 1 January 2019
74,814,382
(513,144)
(59,125,561)
121,399
15,297,076
Profit/loss for the year
Other comprehensive income
for the year
Total comprehensive income
for the year
-
-
-
-
1,366,768
(65,932)
1,300,836
(111,406)
-
-
(111,406)
(111,406)
1,366,768
(65,932)
1,189,430
Issue of ordinary shares
539,214
-
-
(96,419)
-
96,419
-
-
539,214
-
75,353,596
(720,969)
(57,662,374)
55,467
17,025,720
Transfer expired options
reserve to accumulated losses
Balance as at 31 December
2019
Balance as at 1 January 2020
75,353,596
(720,969)
(57,662,374)
55,467
17,025,720
Profit/loss for the year
Other comprehensive income
for the year
Total comprehensive income
for the year
-
-
-
-
3,736,956
(81,096)
3,655,860
(2,037,580)
-
-
(2,037,580)
(2,037,580)
3,736,956
(81,096)
1,618,280
Issue of ordinary shares
14,172,868
-
Issue of service and
performance rights
Transfer vested service rights
reserve to issued capital
-
658,882
612,000
(612,000)
Share issue costs
(314,955)
-
-
-
-
-
-
-
-
-
14,172,868
658,882
-
(314,955)
Balance as at 31 December
2020
89,823,509
(2,711,667)
(53,925,418)
(25,629)
33,160,795
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
29
VMOTO LIMITED
30
NOTES TO THE
FINANCIAL
STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES
Accounting Standards that are mandatorily effective
for the current reporting year
Vmoto Limited (“Vmoto” or “the Company”) is a limited
company incorporated in Australia. The consolidated
financial report of the Company as at and for the year
ended 31 December 2020 comprises the Company
and its subsidiaries (together referred to as the
“Group”).
The accounting policies set out below have been
applied consistently to all periods presented in the
consolidated financial statements, and have been
applied consistently by all entities in the Group.
(a) Basis of preparation
(i) Statement of compliance
The financial report is a general-purpose financial
report which has been prepared in accordance
with Australian Accounting Standards (AASBs)
(including Australian Interpretations) adopted by
the Australian Accounting Standards Board (AASB)
and the Corporations Act 2001. The consolidated
financial report of the Group complies with
International Financial Reporting Standards (IFRSs)
and interpretations adopted by the International
Accounting Standards Board (IASB).
The financial statements were approved by the Board
of Directors on 30th March 2021.
(ii) Basis of measurement
The consolidated financial statements of the Group
are prepared on an accruals basis and are based on
historical costs except where otherwise stated.
(iii) Functional and presentation currency
The consolidated financial statements of the Group
are presented in Australian dollars, which is different
from its functional currency, determined to be
Renminbi. A different presentation currency has
been adopted as the Board of Directors believe that
financial statements presented in Australian dollar
(which is the functional currency of parent company)
are more useful to the users and shareholders of the
Company who are predominantly in Australia.
(iv) Standards and interpretations affecting amounts
reported in current period (and/or prior periods)
31
The Group has adopted all of the new and revised
Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are relevant
to its operations and effective for an accounting
period that begins on or after 1 January 2020. New
and revised Standards and amendments thereof and
Interpretations effective for the current year that are
relevant to the Group include:
•
•
•
•
•
AASB 2018-6 Amendments to Australian
Accounting Standards – Definition of a Business
AASB 2018-7 Amendments to Australian
Accounting Standards – Definition of Material
AASB 2019-1 Amendments to Australian
Accounting Standards – References to the
Conceptual Framework
AASB 2019-3 Amendments to Australian
Accounting Standards – Interest Rate
Benchmark Reform
AASB 2019-5 Amendments to Australian
Accounting Standards – Disclosure of the
Effect of New IFRS Standards Not Yet Issued in
Australia.
The Directors have determined that there is no
material impact of the new and revised Standards
and Interpretations on the Group and, therefore, no
material change is necessary to Group accounting
policies Standards and Interpretations in issue not yet
adopted.
Standards and Interpretations in issue not yet
adopted
At the date of authorisation of the financial statements,
the Group has not applied the new and revised
Australian Accounting Standards, Interpretations
and amendments that have been issued but are
not yet effective. Based on a preliminary review of
the standards and amendments, the Directors do
not anticipate a material change to the Group’s
accounting policies, however further analysis will be
performed when the relevant standards are effective.
(v) Going concern basis
The Group has recorded a profit after tax for the year
ended 31 December 2020 of $3,655,860 (31 December
VMOTO LIMITED 2019: $1,300,836). At 31 December 2020, the Group had
a working capital surplus of $20,643,919 (31 December
2019: $9,404,330).
The Directors have prepared the financial statements
on a going concern basis, which contemplates
continuity of normal business activities and the
realisation of assets and settlement of liabilities in the
ordinary course of business. The Directors believe this
to be appropriate for the following reasons:
•
•
•
•
•
•
the Group has a significant working capital
surplus;
the Group has long term supply agreements
and demand for its electric two-wheel vehicle
products and the demand for products supply
by the Group is increasing;
the Group has the ability to further reduce
corporate and other non-sales resources
without materially affecting revenue activities;
the Group is currently debt free and the Group’s
Stage 1 and 2 of the Nanjing Facility have been
completed and can be used as security for
debt funding if required;
the Group achieved positive operating cash
flows of $4 million for the year ended 31
December 2020;
the Group’s manufacturing facility in Nanjing,
China was fully operational and manufacturing
unaffected following a successful inspection by
the Nanjing government, in which all health and
virus precautionary requirements were met in
relation to COVID-19. The Company continues
to manage this risk by implementing rigorous
health and safety measures at the facility. The
Company is also continually monitoring sales
performance and has the ability to implement
aggressive cost reductions if required;
the Group has fully paid for and contributed
RMB 30 million (~A$5.9 million) required to
provide the initial working capital for the jointly
invested manufacturing company, Nanjing
Vmoto Soco Intelligent Technology Co, Ltd and
the jointly invested manufacturing company is
fully operational; and
the Directors have prepared cash flow
forecasts that indicate the Group will be cash
flow positive for the year ending 31 December
2021 and will enable the Group to pay its debts
as and when they fall due. Furthermore, the
Directors are confident in the Company’s ability
to raise capital if required.
•
•
At the date of this Annual Report and having
considered the above factors, the Directors are
confident that the Group and the Company will be
able to continue operations into the foreseeable future.
32
VMOTO LIMITED All differences in the consolidated financial report
are taken to the profit & loss with the exception of
differences on foreign currency borrowings that
provide a hedge against a net investment in a foreign
entity. These are taken directly to equity until the
disposal of the net investment, at which time they are
recognised in the profit & loss.
Tax charges and credits attributable to exchange
differences on those borrowings are also recognised in
equity.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial
transaction.
Non-monetary items measured at fair value in a
foreign currency are translated using the exchange
rates at the date when the fair value was determined.
As at the reporting date the assets and liabilities
of these overseas subsidiaries are translated into
the presentation currency of Vmoto at the rate
of exchange ruling at the reporting date and the
income statements are translated at the weighted
average exchange rates for the period where this rate
approximates the rate at the date of the transaction.
The exchange differences arising on the retranslation
are taken directly to a separate component of equity.
On disposal of a foreign entity, the deferred cumulative
amount recognised in equity relating to that particular
foreign operation is recognised in the profit & loss.
(d) Revenue recognition
Revenues are recognised at fair value of the
consideration received net of the amount of goods
and services tax (GST or equivalent) payable to the
taxation authority.
(b) Principles of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Company.
Control exists when the Company has the power
to govern the financial and operating policies of
an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights that
currently are exercisable are taken into account. The
financial statements of subsidiaries are included in
the consolidated financial statements from the date
that control commences until the date that control
ceases. The accounting policies of subsidiaries have
been changed when necessary to align them with the
policies adopted by the Group.
Non-controlling interests in equity and results of the
entities that are controlled by the Company are shown
as a separate item in the consolidated financial
statements.
Investments in subsidiaries are carried at cost and
recoverable amount. Refer to Note 1(o).
Sale of goods
Transactions eliminated on consolidation
Unrealised gains and losses and inter-entity
balances resulting from transactions with or between
subsidiaries are eliminated in full on consolidation.
(c) Foreign currency translation
The functional currency of each of the Group’s
entities is measured using the currency of the primary
economic environment in which that entity operates.
The consolidated financial statements are presented
in Australian dollars, which is the parent entity’s
functional currency.
Transactions in foreign currencies are initially recorded
in the functional currency at the exchange rates
ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the
reporting date.
Revenue is measured when or as the control of
the goods or services is transferred to a customer.
Depending on the terms of the contract and the laws
that apply to the contract, control of the goods and
services may be transferred over time or at a point in
time.
If control of the goods and services transfers over time,
revenue is recognised over the period of the contract
by reference to the progress towards complete
satisfaction of that performance obligation. Otherwise
(and in most instances), revenue is recognised at a
point in time when the customer obtains control of the
goods and services.
Contracts with customers may include multiple
performance obligations. For such arrangements, the
Company allocates revenue to each performance
obligation based on its relative standalone selling
price which are generally based on the prices charged
to customers. If the standalone selling price is not
directly observable, it is estimated using expected
33
VMOTO LIMITED cost plus a margin or adjusted market assessment
approach, depending on the availability of observable
information.
If a customer pays consideration before the Company
transfers the goods to the customer, the Company
presents the contract liability (referred to as advance
and deposits from customers) when the payment is
made. A contract liability is the Company’s obligation
to transfer goods or services to a customer for which
the Company has received consideration.
Interest income
Interest income is recognised using the effective
interest method.
(e) Trade and other receivables
Trade and other receivables include amounts due
from customers for goods sold in the ordinary course
of business. Receivables expected to be collected
within 12 months of the end of the reporting period are
classified as current assets. All other receivables are
classified as non-current assets.
Trade and other receivables are initially recognised at
fair value and subsequently measured at amortised
cost using the effective interest method, less any
provision for impairment.
(f) Acquisition of assets
All assets acquired including plant and equipment and
intangibles other than goodwill are initially recorded
at their cost of acquisition at the date of acquisition,
being the fair value of the consideration provided plus
incidental costs directly attributable to the acquisition.
When equity instruments are issued as consideration,
their market price at the date of acquisition is used
as fair value. Transaction costs arising on the issue of
equity instruments are recognised directly in equity
subject to the extent of proceeds received, otherwise
expensed.
(g) Business Combination
Acquisitions of businesses are accounted for using
the acquisition method. The consideration transferred
in a business combination is measured at fair value
which is calculated as the sum of the acquisition-
date fair values of assets transferred by the Group,
liabilities incurred by the Group to the former owners
of the acquire and the equity instruments issued by
the Group in exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or
loss as incurred.
At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognised at their fair
value, except that:
•
deferred tax assets or liabilities and assets
or liabilities related to employee benefit
arrangements are recognised and measured
in accordance with AASB 112 ‘Income Taxes’ and
•
•
AASB 119 ‘Employee Benefits’ respectively;
liabilities or equity instruments related to share-
based payment arrangements of the acquiree
or share-based payment arrangements of the
Group entered into to replace share-based
payment arrangements of the acquire are
measured in accordance with AASB 2 ‘Share-
based Payment’ at the acquisition date; and
assets (or disposal groups) that are classified
as held for sale in accordance with AASB
5 ‘Non-current Assets Held for Sale and
Discontinued Operations’ are measured in
accordance with that Standard.
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value
of the acquirer’s previously held equity interest in the
acquiree (if any) over the net of the acquisition-date
amounts of the identifiable assets acquired and the
liabilities assumed. If, after reassessment, the net of the
acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum of
the consideration transferred, the amount of any non-
controlling interests in the acquiree and the fair value
of the acquirer’s previously held interest in the acquiree
(if any), the excess is recognised immediately in profit
or loss as a bargain purchase gain.
Non-controlling interests that are present ownership
interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of
liquidation may be initially measured either at fair
value or at the non-controlling interests’ proportionate
share of the recognised amounts of the acquiree’s
identifiable net assets. The choice of measurement
basis is made on a transaction-by-transaction basis.
Other types of non-controlling interests are measured
at fair value or, when applicable, on the basis specified
in another Standard.
Where the consideration transferred by the Group
in a business combination includes assets or
liabilities resulting from a contingent consideration
arrangement, the contingent consideration is
measured at its acquisition-date fair value. Changes
in the fair value of the contingent consideration
that qualify as measurement period adjustments
are adjusted retrospectively, with corresponding
adjustments against goodwill. Measurement
period adjustments are adjustments that arise
from additional information obtained during the
‘measurement period’ (which cannot exceed one
year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair
value of contingent consideration that do not qualify
as measurement period adjustments depends
on how the contingent consideration is classified.
Contingent consideration that is classified as equity
is not remeasured at subsequent reporting dates
and its subsequent settlement is accounted for within
equity. Contingent consideration that is classified
as an asset or liability is remeasured at subsequent
reporting dates in accordance with AASB 139, or AASB
137 ‘Provisions, Contingent Liabilities and Contingent
Assets’, as appropriate, with the corresponding gain or
loss being recognised in profit or loss.
34
VMOTO LIMITED 35
(i) Property, Plant and Equipment
•
Recognition and measurement
Items of property, plant and equipment are measured
at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable
to the acquisition of the asset. The cost of assets may
include the cost of materials and direct labour, and
any other costs directly attributable to bringing the
assets to a working condition for its intended use, and
the costs of dismantling and removing the items and
restoring the site on which they are located.
Gains and losses on disposal of an item of property,
plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount
of property, plant and equipment and are recognised
net within “other income” in profit or loss.
•
Subsequent costs
The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount
of the item if it is probable that the future economic
benefits embodied within the part will flow to the Group
and its cost can be measured reliably. The costs of the
day-to-day servicing of property, plant and equipment
are recognised in the profit & loss as incurred.
• Depreciation
Depreciation is recognised in profit or loss on a
straight-line basis over the estimated useful lives of
each of property, plant and equipment. Leased assets
are depreciated over the shorter of the lease term
and their useful lives unless it is reasonably certain
that the Group will obtain ownership by the end of
the lease term. Land is not depreciated. Assets will
be depreciated once the asset is in the condition
necessary for it to be capable of operating in the
manner intended by management.
The estimated useful lives for the current and
comparative periods are as follows:
Plant and equipment
Motor vehicles
Office furniture & equipment
Building
Leasehold improvements
Moulds
3 – 10 years
4 years
5 years
20 years
5 years
5 years
Depreciation methods, useful lives and residual values
are reviewed at each reporting date.
Where a business combination is achieved in stages,
the Group’s previously held equity interest in the
acquire is remeasured to its acquisition date fair value
and the resulting gain or loss, if any, is recognised
in profit or loss. Amounts arising from interests in
the acquiree prior to the acquisition date that have
previously been recognised in other comprehensive
income are reclassified to profit or loss where such
treatment would be appropriate if that interest were
disposed of.
If the initial accounting for a business combination is
incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional
amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted
during the measurement period (see above), or
additional assets or liabilities are recognised, to
reflect new information obtained about facts and
circumstances that existed as of the acquisition date
that, if known, would have affected the amounts
recognised as of that date.
(h) Investment in Associates and Joint Ventures
Associates are those entities over which the Group is
able to exert significant influence but which are not
subsidiaries.
A joint venture is an arrangement that the Group
controls jointly with one or more other investors, and
over which the Group has rights to a share of the
arrangement’s net assets rather than direct rights
to underlying assets and obligations for underlying
liabilities. A joint arrangement in which the Group has
direct rights to underlying assets and obligations for
underlying liabilities is classified as a joint operation.
Investments in associates and joint ventures are
accounted for using the equity method. Interests in
joint operations are accounted for by recognising the
Group’s assets (including its share of any assets held
jointly), its liabilities (including its share of any liabilities
incurred jointly), its revenue from the sale of its share
of the output arising from the joint operation, its share
of the revenue from the sale of the output by the joint
operation and its expenses (including its share of any
expenses incurred jointly).
Any goodwill or fair value adjustment attributable to
the Group’s share in the associate or joint venture
is not recognised separately and is included in the
amount recognised as investment.
The carrying amount of the investment in associates
and joint ventures is increased or decreased to
recognise the Group’s share of the profit or loss and
other comprehensive income of the associate and
joint venture, adjusted where necessary to ensure
consistency with the accounting policies of the Group.
Unrealised gains and losses on transactions between
the Group and its associates and joint ventures are
eliminated to the extent of the Group’s interest in those
entities. Where unrealised losses are eliminated, the
underlying asset is also tested for impairment.
36
VMOTO LIMITED
•
Impairment
(m) Inventories
The carrying values of plant and equipment are
reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be
recoverable.
For an asset that does not generate largely
independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the
asset belongs.
Inventories are measured at the lower of cost and
net realisable value. The cost of inventories includes
expenditure incurred in acquiring the inventories,
production or conversion costs and other costs
incurred in bringing them to their existing location and
condition.
Net realisable value is the estimated selling price in
the ordinary course of business, less the estimated
costs of completion and selling expenses.
If any such indication exists and where the carrying
values exceed the estimated recoverable amount, the
assets or cash-generating units are written down to
their recoverable amount.
(n) Leases
The recoverable amount of property, plant and
equipment is the greater of fair value less costs to
sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their
present value using a pre-tax discount rate that
reflects current market assessments of the time value
of money and the risks specific to the asset.
(j) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period
of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as
the assets are substantially ready for their intended
use or sale.
All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.
(k) Payables
Payables, including goods received and services
incurred but not yet invoiced, are recognised at the
nominal amount when the Group becomes obliged
to make future payments as a result of a purchase of
assets or receipt of services.
(l) Goods and Services Tax
Revenues, expenses and assets are recognised net of
the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable
from the taxation authority. In these circumstances
the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense.
Receivables and payables are stated with the amount
of GST included. The net amount of GST recoverable
from, or payable to, the tax office is included as a
current asset or liability in the statement of financial
position.
Cash flows are included in the statement of cash flows
on a gross basis. The GST components of cash flows
arising from investing and financing activities which
are recoverable from, or payable to, the tax office are
classified as operating cash flows.
37
In the current year, the Group has applied AASB 16
Leases that are effective for an annual period that
begins on or after 1 January 2019.
The Group as lessee
At inception of a contract, the Group assesses if the
contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding
lease liability are recognised by the Group where
the Group is a lessee. However, all contracts that are
classified as short-term leases (i.e., a lease with a
remaining lease term of 12 months or less) and leases
of low-value assets are recognised as operating
expenses on a straight-line basis over the term of the
lease.
Initially the lease liability is measured at the present
value of the lease payments still to be paid at the
commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses
the incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are as follows:
•
•
•
•
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an
index or rate, initially measured using the index
or rate at the commencement date;
the amount expected to be payable by the
lessee under residual value guarantees;
the exercise price of purchase options, if the
lessee is reasonably certain to exercise the
options;
lease payments under extension options, if the
lessee is reasonably certain to exercise the
options; and
payments of penalties for terminating the
lease, if the lease term reflects the exercise of
an option to terminate the lease.
The right-of-use assets comprise the initial
measurement of the corresponding lease liability,
any lease payments made at or before the
commencement date and any initial direct costs.
The subsequent measurement of the right-of-use
assets is at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the lease
term or useful life of the underlying asset, whichever is
the shortest.
Where a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option,
the specific asset is depreciated over the useful life of
the underlying asset.
In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset.
Where a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option,
the specific asset is depreciated over the useful life of
the underlying asset.
The financial impact from the adoption of this
standard is disclosed in note 14.
The Group as lessor
Upon entering into each contract as a lessor, the
Group assesses if the lease is a finance or operating
lease.
A contract is classified as a finance lease when the
terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other
leases not within this definition are classified as
operating leases.
Rental income received from operating leases is
recognised on a straight-line basis over the term of
the specific lease.
Initial direct costs incurred in entering into an
operating lease (for example, legal cost, costs to set
up equipment) are included in the carrying amount of
the leased asset and recognised as an expense on a
straight-line basis over the lease term.
Rental income due under finance leases are
recognised as receivables at the amount of the
Group’s net investment in the leases.
(p) Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at the
fair value of the consideration received net of issue
costs associated with the borrowing.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the effective interest method. Amortised
cost is calculated by taking into account any issue
costs, and any discount or premium on settlement.
Gains and losses are recognised in the profit & loss
when the liabilities are derecognised as well as
through the amortisation process.
(q) Share-based payment transactions
The Group provides benefits to employees (including
Directors) of the Group in the form of share-based
payment transactions, whereby employees render
services in exchange for shares, options or rights over
shares (‘equity-settled transactions’).
The Company operates an incentive scheme to
provide these benefits, known as the Vmoto Limited
Employee Long Term Incentive Plan (the “Plan”).
The cost of these equity-settled transactions with
employees is measured by reference to the fair value
at the date at which they are granted. The fair value
is determined using a Black Scholes Option Valuation
model or Monte Carlo Valuation model.
When a contract is determined to include lease and
non-lease components, the Group applies AASB 15 to
allocate the consideration under the contract to each
component.
In valuing equity-settled transactions, no account
is taken of any performance conditions, other than
conditions linked to the price of the shares of Vmoto
Limited (“market conditions”).
The cost of equity-settled transactions is recognised,
together with a corresponding increase in equity,
over the period in which the performance conditions
are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award
(“vesting date”).
(o) Recoverable amount of assets
At each reporting date, the Group assesses whether
there is any indication that an asset may be impaired.
Where an indicator of impairment exists, the Group
makes a formal estimate of recoverable amount.
Where the carrying amount of an asset exceeds its
recoverable amount the asset is considered impaired
and is written down to its recoverable amount.
Recoverable amount is the greater of fair value less
costs to sell and value in use. It is determined for an
individual asset, unless the asset’s value in use cannot
be estimated to be close to its fair value less costs
to sell and it does not generate cash inflows that
are largely independent of those from other assets
or groups of assets, in which case, the recoverable
amount is determined for the cash-generating unit to
which the asset belongs.
38
The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has
expired and (ii) the number of awards that, in the
opinion of the Directors of the Group, will ultimately
vest. This opinion is formed based on the best
available information at balance date. No adjustment
is made for the likelihood of market performance
conditions being met as the effect of these conditions
is included in the determination of fair value at grant
date.
No expense is recognised for awards that do not
ultimately vest, except for awards where vesting is
conditional upon a market condition.
loss per share is the same as the diluted loss per
share.
(r) Employee benefits
Liabilities for employee benefits for wages, salaries
and annual leave represent present obligations
resulting from employees’ services provided to
reporting date, calculated at undiscounted amounts
based on remuneration, wage and salary rates
that the Group expects to pay as at reporting
date including related on-costs, such as workers
compensation insurance and payroll tax.
(s) Income tax
Where the terms of an equity-settled award are
modified, as a minimum an expense is recognised
as if the terms had not been modified. In addition, an
expense is recognised for any increase in the value
of the transaction as a result of the modification, as
measured at the date of modification.
Income tax expense recognised in the statement of
profit or loss and other comprehensive income relates
to current tax and deferred tax. Income tax expense is
recognised in profit or loss except to the extent that it
relates to items recognised directly in equity, in which
case it is recognised in equity.
Where an equity-settled award is cancelled, it is
treated as if it had vested on the date of cancellation,
and any expense not yet recognised for the award is
recognised immediately. However, if a new award is
substituted for the cancelled award, and designated
as a replacement award on the date that it is granted,
the cancelled and new award are treated as if
they were a modification of the original award, as
described in the previous paragraph.
Current tax
Current tax is the expected tax payable on the
taxable income for the year, using tax rates enacted
or substantively enacted at the reporting date, and
any adjustment to tax payable in respect of previous
years.
Deferred tax
The dilutive effect, if any, of outstanding weighted
average number of options as at the reporting date
is considered not material and accordingly the basic
Deferred tax is recognised using the balance sheet
method, providing for temporary differences between
the carrying amounts of assets and liabilities for
39
VMOTO LIMITED
financial reporting purposes and amounts used for
taxation purposes.
amortisation and accumulated impairment losses,
on the same basis as patents that are acquired
separately.
Deferred tax is not recognised for the following
temporary differences:
Customer contracts
Customer contracts acquired in a business
combination and recognised separately from
goodwill are initially recognised at their fair value
at the acquisition date (which is regarded as their
costs). Subsequent to initial recognition, customer
contracts acquired in a business combination are
reported at cost less accumulated amortisation and
accumulated impairment losses, on the same basis
as patents that are acquired separately.
(u) Development Costs
Development costs are capitalised only when
technical feasibility studies identify that the project
is expected to deliver future economic benefits and
these benefits can be measured reliably. Capitalised
development costs have a finite useful life and are
amortised on a systematic basis based on the future
economic benefits over the useful life of the project.
(v) Provisions
Provisions are recognised when the Group has a legal
or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic
benefits will result and that outflow can be reliably
measured.
Provisions are measured using the best estimate of
the amounts required to settle the obligation at the
end of the reporting period.
(w) Cash and cash equivalents
Cash and cash equivalents include cash on hand,
deposits available on demand with banks and other
short-term highly liquid investments with maturities of
3 months or less.
i. the initial recognition of assets or liabilities in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss; and
ii. differences relating to investments in
subsidiaries and jointly controlled entities to
the extent that it is probable that they will not
reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences
when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting
date.
Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend
to settle current tax liabilities and assets on a net
basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised to the extent
that it is probable that future taxable profits will be
available against which the temporary difference can
be utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be
realised.
The Company and its subsidiaries have unused
tax losses as at the reporting date. However, no
deferred tax balances have been recognised, as it is
considered that asset recognition criteria have not
been met at this time.
(t) Intangibles
Trademarks, licenses and production rights
Trademarks, licenses and production rights are
recognised at cost of acquisition. Licenses and
production rights have an indefinite life and are
carried at cost less any accumulated impairment
losses. Trademark is estimated to have a useful life of
five years and is amortised over a five-year period.
The carrying values of trademark are reviewed for
impairment when events or changes in circumstances
indicate the carrying value may not be recoverable.
Patents
Patents acquired in a business combination and
recognised separately from goodwill are initially
recognised at their fair value at the acquisition date
(which is regarded as their costs). Subsequent to
initial recognition, patents acquired in a business
combination are reported at cost less accumulated
VMOTO LIMITED
40
(x) Comparative figures
This Annual Report relates to the year ended 31
December 2020. Comparatives are for the year ended
31 December 2019.
(y) Fair value of assets and liabilities
The Group measures some of its assets and liabilities
at fair value on either a recurring or non-recurring
basis, depending on the requirements of the
applicable Accounting Standard.
Fair value is the price the Group would receive to sell
an asset or would have to pay to transfer a liability
in an orderly (ie unforced) transaction between
independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest
equivalent observable market pricing information
is used to determine fair value. Adjustments to
market values may be made having regard to the
characteristics of the specific asset or liability. The fair
values of assets and liabilities that are not traded in
an active market are determined using one or more
valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable
market data.
To the extent possible, market information is extracted
from either the principal market for the asset or liability
(ie the market with the greatest volume and level of
activity for the asset or liability) or, in the absence
of such a market, the most advantageous market
available to the entity at the end of the reporting
period (ie the market that maximises the receipts
from the sale of the asset or minimises the payments
made to transfer the liability, after taking into account
transaction costs and transport costs).
For non-financial assets, the fair value measurement
also takes into account a market participant’s ability to
use the asset in its highest and best use or to sell it to
another market participant that would use the asset in
its highest and best use.
The fair value of liabilities and the entity’s own equity
instruments (excluding those related to share-based
payment arrangements) may be valued, where
there is no observable market price in relation to the
transfer of such financial instruments, by reference
to observable market information where such
instruments are held as assets. Where this information
is not available, other valuation techniques are
adopted and, where significant, are detailed in the
respective note to the financial statements.
data primarily depends on the specific characteristics
of the asset or liability being measured. The valuation
techniques selected by the Group are consistent with
one or more of the following valuation approaches:
Market approach: valuation techniques that use prices
and other relevant information generated by market
transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert
estimated future cash flows or income and expenses
into a single discounted present value.
Cost approach: valuation techniques that reflect the
current replacement cost of an asset at its current
service capacity.
Each valuation technique requires inputs that reflect
the assumptions that buyers and sellers would
use when pricing the asset or liability, including
assumptions about risks. When selecting a valuation
technique, the Group gives priority to those techniques
that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that
are developed using market data (such as publicly
available information on actual transactions) and
reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are
considered observable, whereas inputs for which
market data is not available and therefore are
developed using the best information available about
such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information
by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible
levels based on the lowest level that an input that is
significant to the measurement can be categorised
into as follows:
Level 1
Measurements based on quoted prices (unadjusted)
in active markets for identical assets or liabilities that
the entity can access at the measurement date.
Measurements based on inputs other than quoted
prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 2
Measurements based on inputs other than quoted
prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Valuation techniques
Level 3
In the absence of an active market for an identical
asset or liability, the Group selects and uses one or
more valuation techniques to measure the fair value
of the asset or liability, The Group selects a valuation
technique that is appropriate in the circumstances
and for which sufficient data is available to measure
fair value. The availability of sufficient and relevant
Measurements based on unobservable inputs for the
asset or liability.
The fair values of assets and liabilities that are not
traded in an active market are determined using
one or more valuation techniques. These valuation
techniques maximise, to the extent possible, the use
41
VMOTO LIMITED of observable market data. If all significant inputs
required to measure fair value are observable, the
asset or liability is included in Level 2. If one or more
significant inputs are not based on observable market
data, the asset or liability is included in Level 3.
The Group would change the categorisation within the
fair value hierarchy only in the following circumstances:
(i) if a market that was previously considered
active (Level 1) became inactive (Level 2 or Level
3) or vice versa; or
(ii) if significant inputs that were previously
unobservable (Level 3) became observable
(Level 2) or vice versa.
When a change in the categorisation occurs, the
Group recognises transfers between levels of the fair
value hierarchy (i.e. transfers into and out of each level
of the fair value hierarchy) on the date the event or
change in circumstances occurred.
Contingent liabilities
The Company is currently a defendant in one
proceeding brought against it by a former employee
in relation to the employee’s past employment. Having
considered legal advice, the Directors believe that
the claims can be successfully defended, without
any losses (including for costs) being incurred by the
Company.
The carrying amount of goodwill at 31 December 2020
was nil (31 December 2019: nil).
Useful lives of property, plant and equipment and
trademarks
The Group reviews the estimated useful lives of
property, plant and equipment and patents at the end
of each reporting period. During the current year, the
directors determined that the useful lives of property,
plant and equipment and trademarks are deemed to
be no change.
(z) Critical judgements in applying accounting
policies and key sources of estimation uncertainty
Fair value measurements and valuation processes in
relation to business combination acquisition
The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period, that have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the
next financial year.
As part of business combination, assets and liabilities
are measured at fair value for reporting purposes. The
Directors have determined the appropriate valuation
techniques and inputs for fair value measurements.
In estimating the fair value of plant and equipment, the
Group uses Level 3 inputs to perform the valuation.
In estimating the fair value of customer base, the
Group uses Level 3 inputs to perform the valuation.
42
VMOTO LIMITED 2. REVENUES AND EXPENSES
(a) Other income
Interest income
Contributions from customers
Government subsidies
Net foreign exchange gain
Rent income
Other income
(b) Other expenses
Doubtful debts
(c) Employee benefits expense
Wages and salaries costs
(d) Depreciation and amortisation
Depreciation of property, plant and equipment
Amortisation of intangibles
Year ended
31 December 2020
$
Year ended
31 December 2019
$
124,510
817,559
292,794
44,909
440,378
37,281
109,156
832,026
150,376
110,874
448,987
934
1,757,431
1,652,353
-
-
3,436,619
3,436,619
1,296,316
297,766
1,594,082
28,753
28,753
2,192,552
2,192,552
1,480,410
148,884
1,629,294
3. AUDITOR’S REMUNERATION
Audit services:
Audit of financial reports by Bentleys Audit & Corporate (WA) Pty
Ltd
93,592
85,482
43
VMOTO LIMITED
Year ended
31 December 2020
$
Year ended
31 December 2019
$
(564,512)
-
(564,512)
3,655,860
(1,005,362)
276,849
491,109
(327,108)
(564,512)
-
-
-
1,300,836
(357,730)
(4,003)
162,605
199,128
-
4. INCOME TAX
(a) Income tax credit / (expense)
Current tax
Deferred tax
(b) Numerical reconciliation between tax benefit/(expense)
and pre-tax net profit
Profit before income tax benefit
Income tax credit/(expense) calculated at 27.5%
Effect on amounts which are not tax deductible:
Non-deductible items
Effect of different tax rates of subsidiaries operating in other
jurisdictions
Deferred tax not brought to account
Income tax credit / (expense)
(c) Tax losses
Unused tax losses for which no deferred tax asset has been
recognised (as recovery is currently not probable)
Potential at 27.5% (31 December 2019: 27.5%)
All tax losses relate to Australian based entities.
7,412,549
7,143,516
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not
been recognised:
Accrued expenses
Unrecognised deferred tax assets relating to the above
temporary differences
16,500
16,500
15,125
15,125
44
VMOTO LIMITED
31 December 2020
$
31 December 2019
$
(e) Current tax liabilities
Income tax payable
(f) Deferred tax balances
308,254
Deferred tax balances are presented in the consolidated
statement of financial position as follows:
Deferred tax liabilities
-
-
-
(g) Tax Rates
The potential tax benefit at 31 December 2020 in respect of tax losses not brought into account has been calculated at 27.5% for
Australian entities. The tax rate applied for the year ended 31 December 2019 was 27.5%. The tax benefit and expense at 31 Decem-
ber 2020 in respect of tax effect brought into account in relation to China operations has been calculated at 15% for China entities.
The tax benefit and expense at 31 December 2020 in respect of tax effect brought into account in relation to Europe operations
has been calculated at 19% for the Netherlands entities and 24% for Italy entities.
5. CASH AND CASH EQUIVALENTS
Cash and bank balances
6. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Less: Provision for impairment loss
Other receivables
Less: Provision for impairment loss
31 December 2020
$
31 December 2019
$
14,997,486
6,648,039
7,181,176
-
7,181,176
1,835,033
(291,333)
8,724,876
1,221,225
-
1,221,225
1,200,096
(291,333)
2,129,988
Impaired trade receivables – Expected credit losses
Trade receivables are non-interest bearing and are generally on 30-60 days terms. A provision for expected credit losses is by
reference to past default experience and an analysis of the ageing and known financial position of the debtor. The Company
writes off a receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic
prospect of recovery.
45
VMOTO LIMITED
Movements in the provision for impairment of trade and other receivables were as follows:
At beginning of the period
Provision for impairment during the period
Write off
At end of the period
31 December 2020
$
31 December 2019
$
291,333
-
-
291,333
291,333
28,753
(28,753)
291,333
At 31 December 2020, the ageing analysis of trade and other receivables is as follows:
0 – 30 Days
31 – 60 Days
61 – 90 Days past due not impaired
+90 Days past due not impaired
+90 Days considered impaired
Provision for impairment
31 December 2020
$
31 December 2019
$
7,250,093
562,502
144,346
767,935
291,333
(291,333)
8,724,876
948,835
709,862
115,746
355,545
291,333
(291,333)
2,129,988
As of 31 December 2020, trade and other receivables of $912,281 (31 December 2019: $471,291) were past due but not impaired.
$728,894 of the $767,935 past due relates to deferred payment arrangement with a B2B customer. The customer has been making
payments on time in full. The remaining trade and other receivables relate to a number of independent customers for whom
there is no recent history of default.
7. INVENTORIES
Raw materials
Semi-finished goods
Finished goods
8. OTHER ASSETS
Prepayments
1,003,746
24,764
3,459,213
4,487,723
437,710
437,710
1,770,813
324,953
2,272,000
4,367,766
4,032,493
4,032,493
The prepayments are payments in advance to suppliers for the supply of electric two-wheel vehicle inventories for the Group’s
electric two-wheel vehicle operations.
46
VMOTO LIMITED
9. PROPERTY, PLANT & EQUIPMENT
Year ended 31 December 2019
At 1 January 2019, net of accumulated
depreciation
Additions
Depreciation for the period
Exchange differences
At 31 December 2019, net of
accumulated depreciation
At 31 December 2019
Cost
Plant &
equipment
Motor vehicles
Land1
Building1
Total
2,155,534
12,126
1,047,883
5,340,792
8,556,335
163,977
(948,513)
(3,293)
46,536
(15,197)
(684)
-
-
-
210,513
(488,191)
(1,451,901)
(7,031)
(59,455)
(70,463)
1,367,705
42,781
1,040,852
4,793,146
7,244,484
2,422,137
121,888
1,040,852
6,863,521
10,448,398
Accumulated depreciation
(1,054,432)
(79,107)
-
(2,070,375)
(3,203,914)
Net carrying amount
1,367,705
42,781
1,040,852
4,793,146
7,244,484
Year ended 31 December 2020
At 1 January 2020, net of accumulated
depreciation
1,367,705
42,781
1,040,852
4,793,146
7,244,484
Additions
75,086
62,856
Depreciation for the period
(608,104)
(14,540)
-
-
426,968
564,910
(559,712)
(1,182,356)
Exchange differences
At 31 December 2020, net of
accumulated depreciation
At 31 December 2020
Cost
(39,267)
(5,313)
(29,426)
(56,475)
(130,481)
795,420
85,784
1,011,426
4,603,927
6,496,557
1,924,486
127,392
1,011,426
6,971,520
10,034,824
Accumulated depreciation
(1,129,066)
(41,608)
-
(2,367,593)
(3,538,267)
Net carrying amount
795,420
85,784
1,011,426
4,603,927
6,496,557
1. During 2019, an independent external property valuation company valued the Company’s Nanjing land and Stage 1 & Stage 2 buildings at $12.7
million AUD.
47
VMOTO LIMITED 10. INTANGIBLES
Year ended 31 December 2019
Balance at 1 January 2019
Amortisation for the period
Balance at 31 December 2019
At 31 December 2019
Cost
Accumulated amortisation
Accumulated impairment
Net carrying amount
Year ended 31 December 2020
Balance at 1 January 2020
Amortisation for the period
Balance at 31 December 2020
At 31 December 2020
Cost
Accumulated amortisation
Accumulated impairment
Net carrying amount
Licences,
trademarks and
production rights
Goodwill
Development
Costs
-
-
-
446,650
(148,884)
297,766
-
-
-
Total
446,650
(148,884)
297,766
3,971,428
2,015,687
4,836,105
10,823,220
-
(499,336)
(565,657)
(1,064,993)
(3,971,428)
(1,218,585)
(4,270,448)
(9,460,461)
-
-
-
-
297,766
297,766
(297,766)
-
-
-
-
-
297,766
297,766
(297,766)
-
3,971,428
-
2,015,687
(797,102)
4,836,105
10,823,220
(565,657)
(1,362,759)
(3,971,428)
(1,218,585)
(4,270,448)
(9,460,461)
-
-
-
-
48
VMOTO LIMITED 11. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
On 24 February 2020, Vmoto entered into a joint investment agreement with Super Soco Intelligent Technology
(Shanghai) Co, Ltd to establish a new jointly owned Chinese registered manufacturing company, Nanjing Vmoto
Soco Intelligent Technology Co Ltd (Vmoto Soco Manufacturing). Under the terms of the agreement, Vmoto was
required to contribute RMB 30 million (~A$5.9 million) in cash and/or assets by end of June 2020, which served as
the initial working capital for Vmoto Soco Manufacturing. Vmoto has fulfilled this commitment. Super Soco will also
contribute RMB 30 million (~A$5.9 million) in cash and/or assets progressively by no later than June 2025, based
on the commercial requirements of the joint venture company. This may include contributions of Super Soco’s
intangible assets, including patents and molds.
Vmoto has a 50% equity interest in Vmoto Soco Manufacturing, and it is the sole and exclusive manufacturer for
both Vmoto’s and Super Soco’s electric scooter and motorcycle products.
The Group’s interest in Vmoto Soco Manufacturing is accounted for using equity method in the consolidated
financial statements as the Group does not control or have joint control over Vmoto Soco Manufacturing.
Summarised financial information of the Group’s share in Vmoto Soco Manufacturing is as follows:
31 December 2020
$
31 December 2019
$
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets (100%)
Group’s share of net assets (50%)
Carrying amount of interest in equity accounted investments
20,074,222
6,014,106
(14,200,557)
-
11,887,771
5,943,885
5,943,885
-
-
-
-
-
-
-
Year ended
31 December 2020
$
Year ended
31 December 2019
$
Revenue
Cost of sales
Administrative expenses
Losses for the period from continuing operations (100%)
Other comprehensive income
Total comprehensive income for the period from continuing
operations (100%)
Group’s share of losses for the period (50%)
38,477,854
(30,378,306)
(8,142,810)
(43,262)
-
(43,262)
(21,631)
During the FY2020, the Group purchases $33,667,383 of goods from Vmoto Soco Manufacturing.
Vmoto Soco Manufacturing had no contingent liabilities or capital commitments as at 31 December 2020.
-
-
-
-
-
-
-
12. TRADE AND OTHER PAYABLES
Current – unsecured
Trade creditors
Advance and deposits from customers
Other creditors and accruals
49
31 December 2020
$
31 December 2019
$
1,640,926
4,235,260
1,712,020
7,588,206
1,224,748
3,661,911
745,991
5,632,650
VMOTO LIMITED
13. LOANS AND BORROWINGS
Current
Secured – Interest bearing
Bank operating facility
The carrying amounts of non-current assets
pledged as security are:
Land and buildings
Financing arrangements
The Group has access to the following facilities:
Total facilities available:
Bank operating facility
Facilities utilised at end of the period:
Bank operating facility
Facilities not utilised at end of the period:
Bank operating facility
Bank operating facility
31 December 2020
$
31 December 2019
$
-
-
-
-
-
-
-
-
-
-
2,045,994
2,045,994
5,883,998
5,883,998
5,114,985
5,114,985
2,045,994
2,045,994
3,068,991
3,068,991
During the year ended 31 December 2020, the bank operating facility was secured by the Company’s Nanjing
manufacturing facility, including the land, Stage 1 and Stage 2 of the manufacturing facility. This bank operating
facility is a revolving line of credit facility and the undrawn facility is available for draw down throughout the period.
The loan facility does not have any bank covenant conditions.
In December 2020, the Group fully repaid the bank operating facility drawn down and the security over the
Company’s Nanjing manufacturing facility has been released.
Reconciliation of liabilities arising from financing activities
31 December
2019
Non-cash changes
Foreign exchange
movement
Cash flows
31 December
2020
Short term bank operating facility
2,045,994
(2,026,599)
Total liabilities from financing activities
2,045,994
(2,026,599)
(19,395)
(19,395)
-
-
50
VMOTO LIMITED
14. LEASES
The Group leases warehouse and office facilities in the Netherlands and Italy for its electric two-wheel vehicle
operations. The leases typically run for a period between 5 and 6 years, with an option to renew the lease after that
date. Lease payments are adjusted based on changes in local price indices. The Group is restricted from entering
into any sub-lease arrangements.
With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected in the
consolidated statement of financial position as a right-of-use assets and lease liabilities. The Group classifies its
right-of-use assets in a consistent manner to its property, plant and equipment.
Right-of-use assets
Year ended 31 December 2020
Gross carrying amount
Balance at 1 January 2020
Additions
Disposals
Balance at 31 December 2020
Depreciation and impairment
Balance at 1 January 2020
Depreciation
Balance at 31 December 2020
Net carrying amount at 31 December 2020
Year ended 31 December 2019
Gross carrying amount
Balance at 1 January 2019
Additions
Disposals
Balance at 31 December 2019
Depreciation and impairment
Balance at 1 January 2019
Depreciation
Balance at 31 December 2019
Net carrying amount at 31 December 2019
Lease liabilities
Lease liabilities are presented in the consolidated
statement of financial position as follows:
Current
Non-current
Buildings
617,497
-
-
Total
617,497
-
-
617,497
617,497
(27,548)
(111,344)
(138,892)
478,605
Buildings
-
617,497
-
617,497
-
(27,548)
(27,548)
589,949
31 Dec 2020
$
107,416
402,171
509,587
(27,548)
(111,344)
(138,892)
478,605
Total
-
617,497
-
617,497
-
(27,548)
(27,548)
589,949
31 Dec 2019
$
95,312
510,809
606,121
Total cash outflow for leases for the year ended 31 December 2020 was $146,427 (FY2019: $37,098).
51
VMOTO LIMITED
Operating leases
The Group leases out partial of its Nanjing manufacturing facilities and these leases have been classified as
operating leases because they do not transfer substantially the risks and rewards incidental to the ownership of the
assets.
Rental income recognised by the Group during the year ended 31 December 2020 was $440,378 (FY2019: $448,987).
15. ISSUED CAPITAL AND RESERVES
Issued capital
31 December 2020
$
31 December 2019
$
277,347,515 (31 December 2019: 224,762,983) fully paid ordinary shares
89,823,509
75,353,596
The following movements in issued capital occurred during the period:
Balance at beginning of period
224,762,983
221,016,020
75,353,596
74,814,382
Number of
Shares
31 Dec 2020
Number of
Shares
31 Dec 2019
Year
ended
31 Dec 2020
$
Year
ended
31 Dec 2019
$
Issue of Shares at 12 cents each
Issue of Shares at 12 cents each
Issue of Shares at 6.5 cents each
Issue of Shares at 8.5 cents each
Issue of Shares at nil consideration
Issue of Shares at 16.6297 cents each
Issue of Shares at 6.5 cents each
Issue of Shares at 8.5 cents each
Issue of Shares at 34 cents each
Issue of Shares at 34 cents each
Issue of Shares at 45 cents each
Issue of Shares at nil consideration
Vesting of share-based expenses
Share issue costs
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
-
-
-
-
2,850,000
23,737,844
1,982,174
282,174
378,808
242,424
21,411,108
1,700,000
-
-
579,719
886,138
290,553
1,990,553
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,947,500
128,841
23,985
128,795
82,424
9,635,000
612,000
226,324
(314,956)
69,578
106,355
18,886
169,197
-
-
-
-
-
-
-
-
175,198
-
Balance at end of period
277,347,515
224,762,983
89,823,509
75,353,596
a) 16 May 2019 – Issue 579,719 shares at deemed issue price of 12 cents each to a Director in lieu of unpaid Director fees.
b) 16 May 2019 – Issue 886,138 shares at deemed issue price of 12 cents each to a Director in lieu of unpaid Director fees.
c) 7 August 2019 – Issue 290,553 shares at 6.5 cents each as a result of exercise of options.
d) 7 August 2019 – Issue 1,990,553 shares at 8.5 cents each as a result of exercise of options.
e) 17 March 2020 – Issue 2,850,000 shares at nil consideration to employees of the Company in recognition of their efforts and
contribution to the Company. These share-based expenses will be recognised over a three-year vesting period.
f) 19 May 2020 – Issue 23,737,844 shares at 16.6297 cents each pursuant to completion of share purchase plan.
g) 21 May 2020 – Issue 1,982,174 shares at 6.5 cents each as a result of exercise of options.
h) 21 May 2020 – Issue 282,174 shares at 8.5 cents each as a result of exercise of options.
i) 2 July 2020 – Issue 378,808 shares at 34 cents each to a director in lieu of unpaid director fees.
j) 2 July 2020 – Issue 242,424 shares at 34 cents each to a Director in lieu of unpaid Director fees.
k) 18 August 2020 – Issue 21,411,108 shares at 45 cents each for completion of a $9.6 million placement.
l) 22 December 2020 – Issue 1,700,000 shares to directors as a result of vest of 1,700,000 service rights.
52
VMOTO LIMITED
Options
The movements of options over unissued ordinary shares of the Company for the year ended 31 December 2020
were:
Expiry Date
Exercise Price
Balance at
1 Jan 2020
Granted/
Issued
Exercised/
Forfeited
Held at
31 Dec 2020
Tranche A options
22 May 2021
6.5 cents
1,982,174
Tranche B options
22 May 2021
8.5 cents
282,174
Total
2,264,348
-
-
-
(1,982,174)
(282,174)
(2,264,348)
-
-
-
Service and performance rights
The Company has the following service and performance rights issued to directors in existence during the current
reporting period. There were no service and performance rights issued in the year ended 31 December 2019.
Class
Grant date
Expiry date
Number of
rights
Vested
during the
year
Rights
exercised
Rights
expired
Rights
vested at 31
Dec 2020
Rights
unvested at
31 Dec 2020
2020 service rights
16 Dec 2020
18 Dec 2020
1,700,000
1,700,000
2020 service rights
16 Dec 2020
18 Dec 2021
850,000
2020 service rights
16 Dec 2020
18 Dec 2022
850,000
2020 performance
rights
16 Dec 2020
31 Dec 2022
4,037,117
-
-
-
-
-
-
-
-
-
-
-
1,700,000
-
-
-
-
850,000
850,000
4,037,117
Valuation of the service rights was undertaken using Black-Scholes valuation methodology with the following
factors and assumptions being used in determining the fair value of each right on the grant date.
Class
Grant date
Period (years)
Share price at
grant
date
Risk free
rate (%)
Volatility (%)
Valuation per
right
2020 service rights
2020 service rights
2020 service rights
16 Dec 2020
16 Dec 2020
16 Dec 2020
n/a
1
2
$0.36
$0.36
$0.36
n/a
0.1051
0.1051
n/a
70%
70%
$0.36
$0.36
$0.36
Valuation of the performance rights was undertaken using Monte Carlo valuation methodology with the following factors and
assumptions being used in determining the fair value of each right on the grant date.
Class
Grant date
Period (years)
Share price at
grant
date
Risk free
rate (%)
Volatility (%)
Valuation per
right
2020 performance rights
16 Dec 2020
2
$0.36
0.1051
99.6
$0.3369
Vesting of the service rights issued in the period is subject to continuing employment, with no other performance
conditions.
The performance rights vest subject to:
• Continuing employment
• Minimum performance hurdle of a minimum share price compound annual growth rate (CAGR) increases
•
•
of 5% over the performance period
No performance rights will vest if CAGR is less than 5% over the respective period
50% of the performance rights will vest if CAGR of 10% is achieved, up to maximum of 100% of the
performance rights will vest if CAGR of 15% is achieved and pro rata of the performance rights will vest if
CAGR is >5%&<10% and >10%&<15%.
53
VMOTO LIMITED Grant date
Expiry Date
Class
Total valuation
Expense recorded
to 31 Dec 2020
Expense recorded
to 31 Dec 2019
16 Dec 2020
18 Dec 2020
2020 service rights
16 Dec 2020
18 Dec 2021
2020 service rights
16 Dec 2020
18 Dec 2022
2020 service rights
$612,000
$306,000
$306,000
16 Dec 2020
31 Dec 2022
2020 performance rights
$1,360,105
$612,000
$12,750
$6,375
$27,757
-
-
-
-
Reserves
Reserves at the beginning of the period
Transfer expired options reserve to accumulated losses
Issue of service and performance rights
Transfer vested service rights to issued capital
Movements in foreign currency translation reserve
Reserves at the end of the period
Comprises of:
Share-based payment reserve
Foreign currency translation reserve
Reserves at the end of the period
31 December 2020
$
31 December 2019
$
(720,969)
-
658,882
(612,000)
(2,037,580)
(2,711,667)
46,882
(2,758,549)
(2,711,667)
(513,144)
(96,419)
-
-
(111,406)
(720,969)
-
(720,969)
(720,969)
The share-based payments reserve is used to recognise the fair value of options issued but not exercised and to
recognise the fair value of service and performance rights issued but not yet vested.
The foreign currency translation reserve is used to recognise exchange differences arising from the translation of
the financial statements of foreign operations.
16. NON-CONTROLLING INTERESTS
Balance at the beginning of the period
Share of loss for the year
Non-controlling interests arising on incorporation of subsidiary
Balance at the end of the period
31 December 2020
$
31 December 2019
$
55,467
(81,096)
-
(25,629)
121,399
(65,932)
-
55,467
54
VMOTO LIMITED
17. CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure its ability to continue as a going concern and to achieve returns to the
shareholders and benefits for other stakeholders through the optimisation of debt and equity balance. The capital
structure of the Group is adjusted to achieve its goals whilst ensuring the lowest cost of the capital.
Management monitors capital on the basis of the gearing ratio (debt/total capital). During the year ended
31 December 2020, the Group’s strategy is to utilise lowest cost of the capital from the capital markets and
continuously negotiating lower interest cost with provider of its operating facility to achieve its expansion program.
The gearing ratios at 31 December 2020 and 31 December 2019 were as follows:
Total borrowings
Total equity
Total capital
Gearing ratio
31 December 2020
$
31 December 2019
$
509,587
33,160,795
33,670,382
1.5%
2,652,115
17,025,720
19,677,835
13.5%
The gearing ratio of the Company has decreased from 13.5% to 1.5% during the year ended 31 December 2020.
18. ACCUMULATED LOSSES
Accumulated losses at the beginning of the period
Profit/(Loss) for the period
Transfer from share-based payment reserve
Year ended
31 December 2020
$
Year ended
31 December 2019
$
(57,662,374)
3,736,956
-
(59,125,561)
1,366,768
96,419
Accumulated losses at the end of the period
(53,925,418)
(57,662,374)
55
VMOTO LIMITED
19. SEGMENT REPORTING
AASB 8 requires operating segments to be identified on the basis of internal reports about components of the
Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the
segments and to assess their performance.
The continuing operations of the Group are predominantly in the electric two-wheel vehicles manufacture and
distribution industry.
Reported segments were based on the geographical segments of the Group, being Australia, China, Europe and
Singapore. The management accounts and forecasts submitted to the chief operating decision maker for the
purpose of resource allocation and assessment of segment performance are split into these components.
The electric two-wheel vehicles segment is managed on a worldwide basis, but operates in four principal
geographical areas: Australia, China, Europe and Singapore. In China, manufacturing facilities are operated in
Nanjing. In Europe, the warehouse and distribution centre are operated in Netherlands and Italy. The following table
presents revenue and profit or loss in relation to geographical segments for the twelve-month period ended 31
December 2020 and 31 December 2019:
Australia
$A
Nanjing, China
$A
Europe
$A
Year
ended 31/12/20
Year
ended 31/12/19
Year
ended 31/12/20
Year
ended 31/12/19
Year
ended 31/12/20
Year
ended 31/12/19
3,355
18,620
53,120,471
41,539,690
4,614,203
4,110,911
(2,099,840)
(998,042)
5,606,292
2,672,035
155,992
(362,508)
873,684
898,041
70,368,944
40,572,983
2,995,035
3,555,728
(175,259)
(143,744)
(39,585,632)
(27,064,023)
(1,834,904)
(1,172,944)
(667)
(56)
(1,140,007)
(1,443,786)
(155,642)
(36,568)
(297,766)
(148,884)
-
-
-
-
Singapore
$A
Intersegment elimination
$A
Consolidated
$A
Year
ended 31/12/20
Year
ended 31/12/19
Year
ended 31/12/20
Year
ended 31/12/19
Year
ended 31/12/20
Year
ended 31/12/19
3,275,016
3,133
(6,584)
(10,649)
-
-
-
-
61,013,045
45,672,354
3,655,860
1,300,836
612,604
1,094,332
(33,283,425)
(20,810,599)
41,566,842
25,310,485
(93,677)
(714,653)
33,283,425
20,810,599
(8,406,047)
(8,284,765)
-
-
-
-
-
-
-
-
(1,296,316)
(1,480,410)
(297,766)
(148,884)
Revenue
Segment revenue
Result
Segment profit/
(loss)
Assets
Segment assets
Liabilities
Segment liabilities
Depreciation of
fixed assets
Amortisation of
intangible assets
Revenue
Segment revenue
Result
Segment profit/
(loss)
Assets
Segment assets
Liabilities
Segment liabilities
Depreciation of
fixed assets
Amortisation of
intangible assets
The principal activity of the continuing Group is the design, manufacture, marketing and distribution of electric two-wheel vehicles.
Information about major customers:
The Group has generated revenue from sales to its largest customer at approximately $13.3 million (2019: $8.6 million). No other
single customers contributed 15% or more of the Group’s revenue for the year.
56
VMOTO LIMITED
20. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group’s principal financial instruments comprise bank and other loans, cash and short-term deposits. The
main purpose of these financial instruments is to raise finance for the Group’s operations.
The Group has various other financial instruments such as trade debtors and trade creditors, which arise directly
from its operations.
It is, and has been throughout the period under review, the Group’s policy that no trading in derivative instruments
shall be undertaken.
Fair values
The Directors consider that the carrying amount of financial assets and financial liabilities recorded in the financial
statements approximates their fair values.
The following table details the fair value of financial assets and liabilities of the Group:
31 December 2020
31 December 2019
Carrying amount
$
Fair Value
$
Carrying amount
$
Fair Value
$
Financial assets
Cash and cash equivalents
Trade and other receivables
14,997,486
8,724,876
14,997,486
8,724,876
Total financial assets
23,722,362
23,722,362
Financial liabilities
Trade and other payables
7,588,206
7,588,206
Borrowings
Lease liabilities
-
-
509,587
509,587
6,648,039
2,129,988
8,778,027
5,632,650
2,045,994
606,121
6,648,039
2,129,988
8,778,027
5,632,650
2,045,994
606,121
Total financial liabilities
8,097,793
8,097,793
8,284,765
8,284,765
Net financial assets / (liabilities)
15,624,569
15,624,569
493,262
493,262
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, foreign currency risk
and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised
below.
Sensitivity analysis
In managing interest rate and currency risks, the Company endeavours to reduce the impact of short-term
fluctuations on the Company’s earnings. Over the longer term, however, permanent changes in foreign exchange
and interest rates will have an impact on consolidated earnings, although the extent of that impact will depend on
the level of cash resources held by the Group. A general increase of one percentage point in interest rates would
not be expected to materially impact earnings.
57
VMOTO LIMITED
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s short-term debt
obligations.
Cash includes funds held in term deposits and cheque accounts during the year, which earned interest at rates
ranging between 0% and 2.4%, depending on account balances.
The following annual interest rates apply to the Group’s credit facilities:
Bank operating facility 4.15% variable
All other financial assets and liabilities are non-interest bearing.
At balance date, the Group had the following mix of financial assets and liabilities exposed to variable interest rate
risk that are not designated in cash flow hedges:
Financial assets
Cash and cash equivalents
Financial liabilities
Bank operating facility
Net exposure
31 December 2020
$
31 December 2019
$
14,997,486
6,648,039
-
14,997,486
(2,045,994)
4,602,045
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
At 31 December, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
pre-tax profit and equity would have been affected as follows:
Judgements of reasonable possible movements
31 December 2020
$
31 December 2019
$
+1% (100 basis points)
Pre-tax profit increase/(decrease)
Equity increase/(decrease)
-1% (100 basis points)
Pre-tax profit increase/(decrease)
Equity increase/(decrease)
Foreign currency risk
149,975
149,975
(149,975)
(149,975)
46,020
46,020
(46,020)
(46,020)
The Group is exposed to foreign currency on sales, purchases and borrowings that are denominated in a currency
other than Australian Dollars. The currency giving rise to this risk is primarily US dollars, Chinese RMB and Europe Euro.
58
VMOTO LIMITED
At balance date, the Group had the following exposure to US dollars, Chinese RMB, Europe EUR and Singapore SGD
foreign currency that is not designated in cash flow hedges:
31 December 2020
AUD
31 December 2019
AUD
Financial assets
Cash and cash equivalents (USD)
Cash and cash equivalents (RMB)
Cash and cash equivalents (EUR)
Cash and cash equivalents (SGD)
Trade and other receivables (USD)
Trade and other receivables (RMB)
Trade and other receivables (EUR)
Trade and other receivables (SGD)
Financial liabilities
Trade and other payables (USD)
Trade and other payables (RMB)
Trade and other payables (EUR)
Borrowings (RMB)
Net exposure
5,321,351
5,288,805
858,585
-
11,468,741
6,946,449
1,089,188
670,573
-
8,706,210
(4,584,325)
(2,465,975)
(1,325,317)
(8,375,617)
-
11,799,334
4,300,882
1,046,552
718,898
19,996
6,086,328
138,563
1,613,555
362,686
10,768
2,125,572
(1,949,266)
(2,973,742)
(566,823)
(5,489,831)
(2,045,994)
4,768,063
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
At 31 December 2020, if interest rates had moved, as illustrated in the table below, with all other variables held
constant, pre-tax profit and equity would have been affected as follows:
Judgements of reasonable possible movements:
31 December 2020
$
31 December 2019
$
AUD/USD, AUD/RMB and AUD/EUR +20%
Equity increase/(decrease)
AUD/USD, AUD/RMB and AUD/EUR -20%
Equity increase/(decrease)
(1,881,625)
2,257,949
(11,659)
13,991
The Group actively working with banks to hedge this exposure to ensure minimal impacts from foreign currency
risks.
Credit risk
The credit risk on financial assets of the Group which have been recognised on the statement of financial position is
generally the carrying amount, net of any provision for impairment losses.
The Group continuously monitors credit risks arising from its trade receivables which are principally with significant
and reputable companies. It is the Group’s policy that credit verification procedures, including assessment of credit
ratings, financial position, past experience and industry reputation, are performed on new customers that request
credit terms. Risk limits are set for each customer and regularly monitored. Receivable balances are monitored on
an ongoing basis with the result that the Group’s exposure to bad debts is not significant.
59
VMOTO LIMITED
The total credit risk exposure of the Group could be considered to include the difference between the
carrying amount of the receivable and the realisable amount. At balance sheet date there were no significant
concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each
financial asset in the balance sheet. Details with respect to credit risk of trade and other receivables are provided in
Note 6.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The Group manages this risk through the following
mechanisms:
1. preparing forward-looking cash flow analyses in relation to its operational, investing and financing activities;
2. monitoring undrawn credit facilities;
3. obtaining funding from a variety of sources;
4. maintaining a reputable credit profile; and
5. managing credit risk related to financial assets.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities.
Financial liability and financial asset maturity analysis
Within 1 Year
1 to 5 Years
Over 5 Years
Total
Consolidated
Group
31/12/2020
$000
31/12/2019
$000
31/12/2020
$000
31/12/2019
$000
31/12/2020
$000
31/12/2019
$000
31/12/2020
$000
31/12/2019
$000
Financial liabilities
due for payment
Bank operating
facility and loans
Trade and other
payables
Lease liabilities
Current tax
liabilities
Other liabilities
Total contractual
outflows
Total expected
outflows
Financial assets
– cash flows
realisable
Cash and cash
equivalents
Trade and other
receivables
Total anticipated
inflows
Net (outflow)/
inflow on financial
instruments
-
2,046
7,588
5,633
108
308
-
95
-
-
8,004
7,774
8,004
7,774
14,997
6,648
8,725
2,130
23,722
8,778
-
-
402
-
-
402
402
-
-
-
-
-
511
-
-
511
511
-
-
-
15,718
1,004
(402)
(511)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,046
7,588
5,633
510
308
-
606
-
-
8,406
8,285
8,406
8,285
14,997
6,648
8,725
2,130
23,722
8,778
15,316
493
Financial assets pledged as collateral
There are no financial assets that have been pledged as security for debt and their realisation into cash is not restricted.
60
VMOTO LIMITED 21. CONTINGENT LIABILITES
The Company is currently a defendant in a proceeding brought against the Company by a former employee in
relation to the employee’s past employment. Having considered legal advice, the Directors believe that the claim
can be successfully defended, without any losses (including for costs) being incurred by the Company.
22. EARNINGS PER SHARE
Basic earnings per share
From continuing operations
Total earnings per share
Diluted earnings per share
From continuing operations
Total earnings per share
Year ended
31 Dec 2020
Cents per share
Year ended
31 Dec 2019
Cents per share
1.45
1.45
1.45
1.45
0.58
0.58
0.57
0.57
61
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted
earnings per share are as follows:
Profit for the year attributable to owners of the Group
Earnings used in the calculation of basic and diluted
earnings/loss per share from continuing operations
Weighted average number of ordinary shares for the
purposes of basic earnings per share
Weighted average number of ordinary shares for the
purposes of diluted earnings/loss per share
Year ended
31 Dec 2020
Cents per share
3,655,860
3,655,860
Year ended
31 Dec 2019
Cents per share
1,300,836
1,300,836
251,540,695
222,858,403
252,688,648
226,638,589
62
23. CONTROLLED ENTITIES
Parent entity
Vmoto Limited
Controlled entities
Vmoto Australia Pty Ltd
Vmoto Soco International Limited1
Nanjing Vmoto Co, Ltd
Nanjing Vmoto Manufacturing Co, Ltd
Vmoto Europe B.V
Vmoto Soco Italy srl
Vmoto Soco International Pte Ltd
Associate
Country of
Incorporation
Entity interest
31 December 2020
Entity interest 31
December 2019
Australia
Australia
Hong Kong
China
China
Netherlands
Italy
Singapore
100%
100%
100%
100%
100%
50%
100%
100%
100%
100%
100%
100%
50%
100%
Nanjing Vmoto Soco Intelligent Technology Co, Ltd
China
50%
-
1. Vmoto International Limited changed company name to Vmoto Soco International Limited during the year.
24. KEY MANAGEMENT PERSONNEL DISCLOSURES
Details of Key Management Personnel
(i) Directors
Mr Charles Chen
Managing Director (Executive) – appointed Executive Director 5 January 2007 and Managing
Director 1 September 2011
Mr Ivan Teo
Finance Director (Executive) – appointed Chief Financial Officer 17 June 2009 and Finance
Director 29 January 2013
Mr Phillip Campbell
Chairman (Non-Executive) – appointed 31 May 2017 and resigned 4 November 2020
Mr Kaijian Chen
Director (Non-Executive) – appointed 1 September 2011
Ms Shannon Coates
Director (Non-Executive) – appointed 23 May 2014
Mr Blair Sergeant
Director (Non-Executive) – appointed 4 November 2020
(ii) Executives
Mr Jeffrey Wu
Sales Manager - appointed 1 May 2014
Ms Susan Xie
Sales Manager - appointed 1 March 2010
Mr Xiaoliang Wan
Purchasing Manager - appointed 31 December 2014
Mr Maik Spaan
Europe After Sales & Service Manager - appointed 1 June 2020
Mr Gaetan Orselli
Sales Manager - appointed 1 July 2020
Mr Marcel Koper
Europe After Sales & Service Director - appointed 1 April 2019 and resigned 31 May 2020
63
VMOTO LIMITED
24. KEY MANAGEMENT PERSONNEL DISCLOSURES
The total remuneration paid to Key Management Personnel of the Company and the Group during the period
ended 31 December 2020 was as follows:
Short-term employee benefits
Share-based payments
Total KMP compensation
Year ended
31 Dec 2020
$
1,091,902
920,334
2,012,236
Year ended
31 Dec 2019
$
1,083,235
208,788
1,292,023
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or payable
to each member of the Group’s Key Management Personnel for the year ended 31 December 2020.
25. RECONCILIATION OF CASH FLOWS USED IN
OPERATING ACTIVITIES
Year ended
31 December 2020
$
Year ended
31 December 2019
$
Cash flows from operating activities
Profit for the year
Adjustments for:
Depreciation and amortisation
Share based payment expenses
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(Increase)/decrease in other assets
(Decrease)/ increase in payables
Net cash generated by operating activities
3,655,860
1,300,836
1,594,082
1,096,426
2,690,508
(6,594,889)
(119,956)
3,594,782
803,781
4,030,086
1,629,293
351,131
1,980,424
(31,541)
1,270,403
(2,283,469)
(549,570)
1,687,083
64
VMOTO LIMITED
26. NON-DIRECTOR RELATED PARTIES
Non-director related parties are the Company’s controlled entities. Details of the Company’s interest in controlled
entities are set out in Note 23. Details of dealings with these entities are set out below.
Transactions - The loans to controlled entities are unsecured, interest-free and of no fixed term. The loans are
provided primarily for capital purchases and working capital purposes.
Receivables - Aggregate amounts receivable from non-director related parties:
Non-current
Unsecured loans to controlled entities
Provision for non-recovery
27. SUBSEQUENT EVENTS
Company
Year ended
31 Dec 2020
$
33,283,425
(33,283,425)
-
Year ended
31 Dec 2019
$
20,810,599
(20,810,599)
-
On 14 January 2021, the Company announced it had secured a significant B2B order of 5,904 units from its strategic
B2B customer, Greenmo Group, representing a total sales value of approximately A$13 million.
On 8 February 2021, the Company granted 970,000 shares to employees as an incentive and to recognise their
efforts in the year ended 31 December 2020.
On 15 March 2021, the Company announced it had signed a memorandum of understanding (MOU) with Bird Group
of India regarding potential exclusive distribution of the Company’s CUX and CUmini range of electric two-wheel
vehicles across India.
Apart from the above, there has not arisen in the interval between the end of the financial period and the date
of this Annual Report any item, transaction or event of a material and unusual nature likely, in the opinion of the
Directors, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of
the Group in future financial years.
65
VMOTO LIMITED
28. PARENT ENTITY DISCLOSURES
31 December 2020
$
31 December 2019
$
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Share based payment premium reserve
Total equity
Financial performance
Loss for the period
Other comprehensive income
Total comprehensive income
861,392
23,844,970
24,706,362
175,258
-
175,258
24,531,104
89,823,509
(65,339,287)
46,882
24,531,104
539,899
11,715,577
12,255,476
142,319
-
142,319
12,113,157
75,353,596
(63,240,439)
-
12,113,157
Year ended
31 December 2020
$
Year ended
31 December 2019
$
2,098,848
-
2,098,848
1,102,003
-
1,102,003
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity has not entered into any guarantees in relation to the debts of its subsidiaries during the year
ended 31 December 2020.
Commitments for the acquisition of property, plant and equipment by the parent entity
The parent entity has no commitments for any acquisition of property, plant and equipment.
29. Fair Value Measurement
In accordance with AASB 13, Fair Value Measurement, the group is required to disclose for each class of assets
and liabilities measured at fair value, the level of the fair value hierarchy within which the fair value method is
categorised. The group view that no assets or liabilities are measured at fair value, other than cash, trade and
other receivables, trade and other payables and borrowings with carrying amounts assumed to approximate their
fair value.
66
VMOTO LIMITED
DIRECTORS’
DECLARATION
In the opinion of the Directors of Vmoto Limited:
(a) the financial statements and notes, set out on pages 25 to 66, are in accordance
with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of the Group as at 31
December 2020 and its performance, as represented by the results of its
operations and cash flows, for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations
Regulations 2001.
(b) the attached financial statements also comply with International Financial
Reporting Standards, as stated in Note 1 to the financial statements; and
(c) there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
The Directors have been given the declarations required by Section 295A of the
Corporations Act 2001 from the Managing Director and the Finance Director for the year
ended 31 December 2020.
Signed in accordance with a resolution of the Directors:
Yiting (Charles) Chen
Managing Director
Dated at Western Australia,
this 30th day of March 2021.
67
68
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit partner for the audit of the financial statements of Vmoto Limited for the
financial year ended 31 December 2020, I declare that to the best of my knowledge and
belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
any applicable code of professional conduct in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
DOUG BELL CA
Partner
Dated at Perth this 30th day of March 2021
69
VMOTO LIMITED
Independent Auditor's Report
To the Members of Vmoto Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Vmoto Limited (“the Company”) and its subsidiaries
(“the Consolidated Entity”), which comprises the consolidated statement of financial
position as at 31 December 2020, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with
the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Consolidated Entity’s financial position as
at 31 December 2020 and of its financial performance for the year then
ended; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards
as disclosed in Note 1(a).
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those
standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance about
whether the financial report is free from material misstatement. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Consolidated Entity in
accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
70
Independent Auditor’s Report
To the Members of Vmoto Limited (Continued)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed the key audit matter
Existence and valuation of inventories
As disclosed in note 7 of the financial report, the
Consolidated Entity had an inventories balance of
$4,487,723 at year end.
Existence and valuation of inventory were considered
key audit matters due to:
−
−
−
−
The quantum of inventories on hand;
The various locations of the inventories;
Risk of stock obsolescence from changing
technology; and
The importance of inventory in relation to
generating positive operating cash flows.
Our procedures amongst others included:
−
−
−
−
Attending stock takes conducted at year end and
performing sample counts;
During stock takes we observed to consider
damaged or obsolete stock on hand;
Performed analytical procedures
reviewing margins and inventory turnover; and
including
For a sample of items we tested unit costs of
inventory items and related sales to supporting
documentation to assess whether the inventory
is held at the lower of cost and net realisable
value.
Revenue Recognition
During the year ended 31 December 2020, the
Consolidated Entity generated sales revenue of
$61,013,045 (2019: $45,672,354).
Revenue recognition is considered a key audit matter
due to its financial significance and the significant
increase in revenue during the year.
Our procedures amongst others included:
− We reviewed the Consolidated Entity’s revenue
accounting policy and
their contracts with
customers and assessed its compliance with
AASB 15 Revenue
from Contracts with
Customers;
−
Performed substantive audit procedures on a
sample basis by verifying revenue to relevant
supporting documentation including approved
price
lists, delivery/shipping documentation,
verification of receipts and ensuring the revenue
was recognised at the appropriate time and
classified correctly; and
−
Performed a range of substantive analytical and
cutoff procedures.
71
Independent Auditor’s Report
To the Members of Vmoto Limited (Continued)
Key Audit Matter
How our audit addressed the key audit matter
Valuation of Trade Receivables
As disclosed in note 6 of the financial report the
Consolidated Entity had a trade and other receivables
(2019:
balance of $8,724,876 at year end
$2,129,988).
Our procedures amongst others include the following:
− We analysed the aging of trade receivables with
reference to trade terms;
Valuation of trade and other receivables is a key audit
matter in the audit due to the size of the balance and
the judgement used in assessing whether there are
any indications of credit losses.
Investments accounted for using equity method
As disclosed in note 11 of the financial report, during
the year the Consolidated Entity entered into a joint
investment agreement with Super Soco Intelligent
Technology (Shanghai) Co, Ltd, to establish a new
jointly owned Chinese registered manufacturing
Intelligent
company, Nanjing Vmoto Soco
Technology Co Ltd (Vmoto Soco Manufacturing).
We were required to assess whether the agreement
constituted an investment in joint arrangement or an
associate and assess the accounting treatment
applied.
The investment is considered a key audit matter due
to the significance of the balance, and the judgement
required in assessing the terms of the agreement and
the application to Australian Accounting Standards.
− We obtained aged receivables reports and
assessed
the recoverability of debtors by
performing subsequent receipt testing, enquiry
with management,
payment
arrangements and consideration of credit losses
incurred; and
review
of
− We assessed the disclosures included in note 6
to the financial report.
Our procedures amongst others included:
−
−
−
−
−
−
Reviewing the Joint Investment Agreement;
Assessing management’s assessment as to the
method of accounting for the investment in
Accounting
compliance with
Standards;
Australian
Assessing
the application of
the equity
accounting for the investment including the
recognition of the share of the loss for the year;
Verifying the payment of the contribution of the
investment;
Assessing whether
impairment; and
there are
indicators of
Assessing
the adequacy of
the
related
disclosures within note 11 of the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Consolidated Entity’s annual report for the year ended 31 December 2020, but does not include the
financial report and our auditor’s report thereon.
72
Independent Auditor’s Report
To the Members of Vmoto Limited (Continued)
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error. In Note 1(a), the directors
also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements,
that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain
reasonable assurance about whether the financial report as a whole is free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Consolidated Entity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
73
Independent Auditor’s Report
To the Members of Vmoto Limited (Continued)
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Consolidated Entity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Consolidated Entity to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Consolidated Entity audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 31 December
2020. The directors of the Company are responsible for the preparation and presentation of the remuneration
report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 31 December 2020, complies with
section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
DOUG BELL CA
Partner
Dated at Perth this 30th day of March 2021
74
ADDITIONAL
SHAREHOLDER
INFORMATION
The following information is current as at 12 March 2021:
Voting Rights
The voting rights attaching to ordinary shares are that on a show of hands every member present in person or by
proxy shall have one vote and upon a poll each share shall have one vote.
Performance and service rights do not carry any voting rights.
Substantial Shareholders
The number of shares held by substantial shareholders and their associates who have provided the Company with
substantial shareholder notices are set out below:
Name of Substantial
Shareholder
Yiting (Charles) Chen
Raymond and Susan Munro
ATF Munro Family Super Fund2
Xiaona Zhao
Xiaorui Ding
1. As lodged with ASX on 3 July 2019.
2. As lodged with ASX on 24 July 2019.
3. As lodged with ASX on 29 June 2017.
4. As lodged with ASX on 29 June 2017.
On-Market Buy Back
Number of Shares
20,805,3831
15,000,0002
10,606,9483
8,823,5294
There is no current on-market buy back.
Distribution Schedules
Distribution schedules for each class of security as at 12 March 2021 are set out below.
Fully paid ordinary shares
-
-
-
-
-
Holders
1,000
5,000
10,000
100,000
Over
455
1,394
669
1,170
275
Units
284,282
3,831,741
5,457,165
40,283,249
228,461,078
3,963
278,317,515
%
0.10
1.38
1.96
14.47
82.09
100.00
Range
1
1,001
5,001
10,001
100,001
Total
75
VMOTO LIMITED
Director Performance Rights
Range
1
1,001
5,001
10,001
100,001
Total
Director Service Rights
Range
1
1,001
5,001
10,001
100,001
Total
-
-
-
-
-
-
-
-
-
-
Holders
Units
1,000
5,000
10,000
100,000
Over
1,000
5,000
10,000
100,000
Over
Holders
-
-
-
-
2
2
-
-
-
-
2
2
-
-
-
-
4,037,117
4,037,117
Units
-
-
-
-
1,700,000
1,700,000
%
-
-
-
-
100
100
%
-
-
-
-
100
100
Securities subject to Voluntary Escrow
3,400,000 fully paid ordinary shares are currently subject to voluntary escrow until 19 December 2021.
2,850,000 fully paid ordinary shares are currently subject to voluntary escrow until 17 March 2023.
970,000 fully paid ordinary shares are currently subject to voluntary escrow until 8 February 2024.
Unmarketable Parcels
Holdings of less than a marketable parcel
of ordinary shares (being 1,220 Shares
as at 12 March 2021):
Holders
561
Units
402,833
VMOTO LIMITED
76
Top Holders
The 20 largest registered holders of quoted securities as at 12 March 2021 were:
Fully paid ordinary shares
Rank
Holder
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
MR YITING CHEN
MR RAYMOND EDWARD MUNRO + MRS SUSAN ROBERTA MUNRO
MS XIAONA ZHAO
MS MALAKY KAZEM
MR ERCHUAN ZHOU
CITICORP NOMINEES PTY LIMITED
CS THIRD NOMINEES PTY LIMITED
OUTRIGHT INTERNATIONAL BUSINESS GROUP LIMITED
MR YI CHEN
MR TAO YU
NATIONAL NOMINEES LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR LIANG CHEN
MR BRENDAN DAVID GORE
MR KAIJIAN CHEN
MR TU SHE
EDLINS PROSPERITY PLUS PTY LTD
MR THOMAS JOSEPH FALVEY
MR LEI LIU
20
Totals
SILVERLIGHT HOLDINGS PTY LTD
22,487,784
21,570,000
19,226,470
13,045,309
11,864,812
8,751,081
7,710,938
6,670,000
4,981,204
4,241,393
4,053,435
3,955,395
3,667,787
3,245,000
2,912,539
2,464,872
2,405,000
2,187,540
2,032,531
1,700,000
8.08
7.75
6.91
4.69
4.26
3.14
2.77
2.40
1.79
1.52
1.46
1.42
1.32
1.17
1.05
0.89
0.86
0.79
0.73
0.61
149,173,090
53.60
Securities Exchange Quotation
The Company’s ordinary shares are listed on the Australian Securities Exchange (Code: VMT). The Home Exchange
is Perth.
Corporate Governance
The Company’s Corporate Governance Statement for the 2020 financial year can be accessed at:
http://www.vmoto.com/Download/Index?typeId=16
77
78
VMOTO LIMITED ABN 36 098 455 460
WWW.VMOTO.COM
EMAIL: INFO@VMOTO.COM
79