Vmoto says it will review its global operations in light of the current economic climate as it extends its first half loss to $1.7 million.
This compared to the previous corresponding period's net loss of $1 million.
Vmoto said that the first half loss for fiscal 2009 was largely attributed to the relocation of scooter assembly facilities to a different part of China, slower sales and a falling Australian dollar.
Also a lower than expected profit contribution from the Shanghai-based distribution business impacted first half earnings.
Vmoto said its scooter assembly plant, previously based in Wuxi, generated revenue of $705,853 with limited production capacity.
Meantime the engine assembly plant, previously based in Shanghai, recorded half year sales of $477,080.
Both facilities have since been relocated to Nanjing.
Consolidated sales for Vmoto branded products contributed $1.06 million for the period and the company said that after a slow start, sales have strengthened.
Total revenue from all operations was down 11 per cent to $14.3 million.
"The Board is optimistic that going forward, the business generated through the new manufacturing facilities will underpin the strength and profitability of the Vmoto Group, in what is to be expected as a volatile trading year," the company said.
"In consideration of the current economic climate and availability of credit, the Board is undertaking a review of the global operations. As a proactive measure, all finance options, company expenditures, capital commitments and manufacturing projects will be evaluated based on the current global landscape.
This exercise is being undertaken to allow the Vmoto Group to be prepared for any contingency in respect to the global finance markets and potential impact on the manufacturing/retail demand."