Vmoto’s Loss Persists as China Sales Slide and Thailand JV Ends

Financial Performance Amid Global Headwinds

Vmoto Limited, a key player in the electric two-wheel vehicle market, released its interim financial results for the half-year ended 30 June 2025, revealing a mixed but cautiously optimistic picture. The company’s revenue declined by 10.8% to $20.8 million compared to the same period last year, primarily due to a 30% drop in sales volumes in China. Despite this, Vmoto managed to slightly reduce its net loss after tax to $3 million, a marginal improvement from the previous year’s $3 million loss.

Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) showed a more significant improvement, with losses shrinking by nearly two-thirds to just over $1 million. This reflects the company’s efforts to tighten financial discipline and optimize operational efficiency amid a challenging macroeconomic environment.

International Sales and Strategic Partnerships

International markets proved more resilient, with only a 2% decline in unit sales outside China, totaling 5,076 units sold during the half-year. This resilience underscores Vmoto’s growing footprint across Europe, South America, the Middle East, and Southeast Asia. Notably, the company secured a landmark partnership with Uber in June 2025, aiming to electrify Uber’s two-wheel delivery fleet across major European cities including Amsterdam, Berlin, London, and Paris. This deal positions Vmoto as a preferred supplier for Uber’s ambitious goal of transitioning 100,000 motorbike couriers to electric vehicles by 2030.

Additionally, Vmoto increased its stake in UK-based Zenion Limited, a last-mile delivery service provider that rents and services Vmoto’s electric mopeds. This investment aligns with Vmoto’s strategic focus on B2B markets and rental models, which are expected to drive sustainable revenue streams in key international markets.

Operational Developments and Capital Management

Vmoto continues to invest in expanding its manufacturing capabilities, with ongoing construction of a new facility in Nanjing, China, and operational setup in Thailand. The company drew down $11.5 million of its revolving bank facility to fund these initiatives, maintaining a strong cash balance of $34.5 million at the end of June 2025. This liquidity supports both working capital needs and strategic capital expenditures.

However, not all ventures progressed smoothly. Vmoto and its Thai partner Skipper Run mutually agreed to terminate their proposed GoRide joint venture, reflecting a strategic refocus by Skipper Run on solar energy. Meanwhile, Vmoto’s presence at international exhibitions across Europe, Asia, and Africa continues to bolster brand awareness and market penetration.

Outlook and Strategic Focus

Despite persistent global economic uncertainties, particularly in Europe and China, Vmoto’s management remains confident in the long-term prospects of the electric motorcycle and scooter market. Government policies worldwide continue to favor electrification, urbanization trends support demand for sustainable transport, and Vmoto’s integrated approach; including battery swapping and fast charging infrastructure; positions it well for future growth.

The company is sharpening its focus on B2B partnerships, fleet sales, and rental models, leveraging its international partnerships and expanding product portfolio to capture emerging opportunities. Cost optimization and operational efficiency remain priorities as Vmoto navigates short-term headwinds while building a stronger, more competitive business.