Final Results

Name of Entity

1. Vmoto Limited

ABN

36 098 455 460

Financial Year Ended

12 months ended 31 December 2014

Previous Corresponding Reporting Period

12 months ended 31 December 2013

$'000

Percentage increase /(decrease) over previous corresponding period

Revenue from ordinary activities

45,098

79%

Profit from ordinary activities after tax attributable to members

476

18%

Net profit attributable to members

476

18%

Dividends (distributions)

Amount per security

Franked amount per security

Final Dividend

Nil

Nil

Interim Dividend

Nil

Nil

Record date for determining entitlements to the dividends (if any)

2. Not Applicable

Brief explanation of any of the figures reported above necessary to enable the figures to be understood:

This report relates to the year ended 31 December 2014. Comparatives are for the year ended 31 December 2013.

Refer to the above Operations Review for further commentary on the results for the year ended 31 December 2014.

Section

Contents

Part 1

Details of entity, reporting period

Part 2

Results for announcement to the market

Part 3

Contents of ASX Appendix 4E

Part 4

Consolidated statement of comprehensive income

Part 5

Consolidated accumulated losses

Part 6

Consolidated statement of financial position

Part 7

Consolidated statement of cash flows

Part 8

Basis of preparation

Part 9

Loss from ordinary activities

Part 10

Commentary on results

Part 11

Notes to the consolidated statement of cash flows

Part 12

Details relating to dividends

Part 13

Loss per share

Part 14

Net tangible assets per security

Part 15

Details of entities over which control has been gained or lost

Part 16

Details of associates and joint venture entities

Part 17

Issued securities

Part 18

Segment information

Part 19

Subsequent events

Part 20

Information on audit or review

Year Ended 31 December 2014

$

Year Ended 31 December 2013

$

Continuing Operations

Sales revenue

45,098,053

25,174,809

Cost of goods sold

(38,505,960)

(21,409,686)

Gross profit

6,592,093

3,765,123

Other revenue from ordinary activities

166,741

453,418

Operational expenses

(1,576,688)

(1,398,897)

Marketing and distribution expenses

(507,990)

(660,342)

Corporate and administrative expenses

(1,795,687)

(1,337,819)

Occupancy expenses

(59,946)

(43,175)

Other expenses from ordinary activities

(486,094)

(1,002)

Impairment of inventories

(1,548,071)

-

Profit before finance costs and income tax

784,358

777,306

Finance costs

(275,507)

(372,846)

Income tax

(32,566)

-

Profit after tax from continuing operations

476,285

404,460

Profit after tax from discontinued operations

-

-

Total profit for the period

476,285

404,460

Profit attributable to members of the parent entity

476,285

404,460

Year Ended 31 December 2014

$

Year Ended 31 December 2013

$

Accumulated losses at the beginning of the period

(37,340,542)

(37,862,747)

Profit for the period

476,285

404,460

Transfer expired options reserve to accumulated losses

130,577

173,745

Prior period adjustment

-

(56,000)

Accumulated losses at the end of the period

(36,733,680)

(37,340,542)

31 December 2014

31 December 2013

CURRENT ASSETS

$

  $

Cash and cash equivalents

3,850,142

4,426,994

Trade and other receivables

5,287,493

3,639,758

Inventories

5,945,188

5,180,807

Other

3,738,172

2,449,680

Total Current Assets

18,820,995

15,697,239

NON CURRENT ASSETS

Property, plant and equipment

6,350,283

5,473,184

Intangible assets

6,207,031

3,592,983

Investments

393,244

-

Total Non Current Assets

12,950,558

9,066,167

TOTAL ASSETS

31,771,553

24,763,406

CURRENT LIABILITIES

Trade and other payables

4,771,131

1,509,999

Interest bearing loans

4,718,929

5,522,005

Total Current Liabilities

9,490,060

7,032,004

TOTAL LIABILITIES

9,490,060

7,032,004

NET ASSETS

22,281,493

17,731,402

EQUITY

Issued capital

60,381,262

57,725,955

Reserves

(1,366,089)

(2,654,011)

Accumulated losses

(36,733,680)

(37,340,542)

TOTAL EQUITY

22,281,493

17,731,402

Year Ended 31 December 2014

$

Year Ended 31 December 2013

$

Cash flows from operating activities

Receipts from customers

46,458,103

27,835,244

Payments to suppliers and employees

(45,591,117)

(31,324,457)

Interest received

44,739

8,542

Interest paid

(273,499)

(375,681)

Other cash receipts

27,762

30,955

Net cash used in operating activities

665,988

(3,825,397)

Cash flows from investing activities

Payments for property, plant and equipment

(1,101,351)

(402,528)

Payments for intangible assets

-

(5,486)

Payments for equity investments

(393,244)

-

Net cash used in investing activities

(1,494,595)

(408,014)

Cash flows from financing activities

Proceeds from issue of equity shares

1,207,266

6,540,660

Payments for share issue costs

(22,480)

(438,298)

Proceeds from borrowings

4,297,144

6,527,726

Repayment of borrowings

(5,400,250)

(6,043,162)

Net cash generated by financing activities

81,680

6,586,926

Net increase in cash held

(746,927)

2,353,515

Cash at the beginning of the financial year

4,426,994

1,834,894

Effects of exchange rate changes on cash

170,075

238,585

Cash at the end of the financial year

3,850,142

4,426,994

This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.

The profit from ordinary activities before income tax includes the following items of revenue and expense:

Year Ended 31 December 2014

$

Year Ended 31 December 2013

$

2. REVENUEs and expenses OF CONTINUING OPERATIONS

(a) Other income

Interest income

45,245

8,514

Contributions from customers

45,401

351,189

Government subsidies

25,582

29,660

Net foreign exchange gain

9,668

-

Other

40,845

64,055

166,741

453,418

(b) Other expenses

Net foreign exchange loss

-

1,002

-

1,002

(c) Employee benefits expense

Wages and salaries costs

2,070,186

1,423,329

2,070,186

1,423,329

(d) Depreciation and amortisation

Depreciation

457,635

484,112

457,635

484,112

Refer to the above Operations Review for commentary on the results for the year ended 31 December 2014.

Year Ended 31 December 2014

$

Year Ended 31 December 2013

$

(a) Reconciliation of cash:

For the purposes of the Statement of Cashflows, cash includes cash on hand, and in banks, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the Balance Sheet as follows:

Cash and cash equivalents

3,850,142

4,426,994

Cash at bank

3,850,142

4,426,994

(b) Reconciliation of net cash used in operating activities to loss after income tax

Profit (loss) after income tax

476,285

404,460

Add non-cash items:

Depreciation

457,635

484,112

Impairments

2,034,165

-

Share based payment expenses

680,307

159,596

3,648,392

1,048,168

Changes in assets and liabilities:

(Increase)/decrease in receivables

(1,647,735)

(1,837,582)

(Increase) /decrease in inventories

(764,380)

(2,030,159)

(Increase)/decrease in other assets

(1,288,493)

(1,855,979)

Increase/(decrease) in payables

718,204

850,155

Net cash used in operating activities

665,988

(3,825,397)

Date the dividend is payable

N/A

Record date to determine entitlement to the dividend

N/A

Amount per security

N/A

Total dividend

N/A

Amount per security of foreign sourced dividend or distribution

N/A

Details of any dividend reinvestment plans in operation

N/A

The last date for receipt of an election notice for participation in any dividend reinvestment plans

N/A

Consolidated

Year Ended 31 December 2014

Year Ended 31 December 2013

Basic earnings (loss) per share

0.04 cents

0.04 cents

The Company's potential ordinary shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share.

Weighted average number of ordinary shares for the purpose of basic earnings per share

1,239,899,894

959,249,954

31 December 2014

31 December 2013

Net tangible asset backing per ordinary security (cents)

 1.30

1.16

Name of entity

Nil

Date deregistered

Nil

Contribution of the controlled entity (or group of entities) to the profit/(loss) from ordinary activities during the period, from the date of gaining or losing control

Nil

Profit (loss) from ordinary activities of the controlled entity (or group of entities) for the whole of the previous corresponding period

Nil

Contribution to consolidated profit/(loss) from ordinary activities from sale of interest leading to loss of control

Nil

Ownership Interest

Contribution to net profit/(loss)

31/12/14

%

31/12/13

%

Year ended 31/12/14

$A'000

Year ended 31/12/13

$A'000

Name of entity

N/A

N/A

N/A

N/A

Associate

N/A

N/A

N/A

N/A

Joint Venture Entities

N/A

N/A

N/A

N/A

Aggregate Share of Losses

N/A

N/A

N/A

N/A

31 December 2014

$

31 December 2013

$

Share capital

1,296,710,239 (31 December 2013: 1,221,196,804) fully paid ordinary shares

60,381,262

57,725,955

The following movements in issued capital occurred during the period:

Year

Ended

31 December 2014

Number of Shares

Year Ended 31 December 2013

Number of Shares

Balance at beginning of the period

1,221,196,804

896,087,712

Issue of shares at 2.0 cents each

-

75,000,000

Issue of shares at nil consideration

-

2,000,000

Issue of shares at 2.2 cents each

-

54,545,455

Issue of shares at 2.2 cents each

-

186,363,637

Issue of shares at nil consideration

-

5,200,000

Issue of shares at nil consideration

-

2,000,000

Issue of shares at nil consideration

2,000,000

-

Issue of shares at 4 cents each

40,400

-

Issue of shares at 4 cents each

132,500

-

Issue of shares at 2.5 cents each

800,000

-

Issue of shares at 5 cents each

487,805

-

Issue of shares at 2.5 cents each

3,250,000

-

Issue of shares at 2.5 cents each

1,750,000

-

Issue of shares at 3 cents each

2,100,000

-

Issue of shares at 4 cents each

2,500

-

Issue of shares at nil consideration

2,666,666

-

Issue of shares at 3 cents each

1,000,000

-

Issue of shares at 3 cents each

1,000,000

-

Issue of shares at 4 cents each

12,750

-

Issue of shares at 4 cents each

813,750

-

Issue of shares at 4 cents each

45,894,329

-

Issue of shares at nil consideration

12,900,000

-

Issue of shares at 4 cents each

662,735

-

1,296,710,239

1,221,196,804

Options

The following options to subscribe for ordinary fully paid shares are outstanding at balance date:

Ø 7,400,000 ESOP options exercisable at 3 cents each on or before 23 November 2015;

Ø 5,000,000 options exercisable at 4 cents each on or before 23 May 2018;

Ø 5,000,000 options exercisable at 8 cents each on or before 23 May 2018;

Ø 1,000,000 options exercisable at 5 cents each on or before 21 May 2019;

Ø 1,000,000 options exercisable at 7.5 cents each on or before 21 May 2019; and

Ø 2,000,000 options exercisable at 10 cents each on or before 21 May 2019.

Performance Rights

The following performance rights are outstanding at balance date:

Ø 13,333,334 incentive performance rights convertible to shares (subject to performance and time based vesting conditions) as approved by shareholders on 31 July 2012; and

Ø 20,000,000 incentive performance rights convertible to shares (subject to performance and time based vesting conditions) as approved by shareholders on 20 May 2014.

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 Consolidated Entity are predominantly in the electric two-wheel vehicles manufacture and distribution industry.

In prior years, reported segments were based on the geographical segments of the Group, being Australia, Spain and China. This assessment of identifiable segments has not changed in the current period, as 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 same components.

The electric two-wheel vehicles segment is managed on a worldwide basis, but operate in three principal geographical areas: Australia, China and Spain. In China, manufacturing facilities are operated in Nanjing.

Continuing Operations

Australia

$A

China

$A

Spain

$A

Intersegment elimination

$A

Consolidated

$A

Year ended 31/12/14

Year ended 31/12/13

Year ended 31/12/14

Year ended 31/12/13

Year ended 31/12/14

Year ended 31/12/13

Year

ended 31/12/14

Year

ended 31/12/13

Year ended 31/12/14

Year

ended 31/12/13

Revenue

Segment revenue

-

-

45,098,053

25,174,809

-

-

-

-

45,098,053

25,174,809

Result

Segment result

(1,971,459)

(911,751)

2,556,609

1,338,744

(108,865)

(22,533)

-

-

476,285

404,460

Assets

Segment assets

1,385,429

2,754,810

52,316,559

42,182,395

-

114,302

(21,930,435)

(20,288,101)

31,771,553

24,763,406

Liabilities

Segment liabilities

(1,054,661)

(85,465)

(30,365,834)

(26,354,897)

-

(879,743)

21,930,435

20,288,101

(9,490,060)

(7,032,004)

The principal activity of the continuing Consolidated Entity is the manufacture, marketing and distribution of electric two-wheel vehicles.

Vesting of Performance Rights

On 2 January 2015, the Company issued 1,000,000 fully paid ordinary shares to Mr Yiting Chen and 1,000,000 fully paid ordinary shares to Mr Oliver Cairns as a result of vesting of Class B incentive performance rights as approved by shareholders on 31 July 2012.

Exercise of Options

On 2 January 2015, the Company issued 22,817,621 fully paid ordinary shares following the exercise of 22,817,621 listed options exercisable at $0.04 on or before 31 December 2014. The remaining 122,743,307 listed options lapsed unexercised and have been cancelled.

Apart from the above, there were no other significant events subsequent to year ended 31 December 2014 and prior to the date of this report that have not been dealt with elsewhere in this report.

This report is based on accounts to which one of the following applies:

(Tick one)

The accounts have been audited

The accounts have been subject to review

The accounts are in the process of being audited or subject to review

ü

The accounts have not yet been audited or reviewed

If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification:

Not applicable

If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification:

Not applicable