Retail company AuMake has released its first annual report, chronicling a “transformative” year for the company.
The retailer, which has been listed on ASX since October 2017, connects Australian suppliers directly with the influential daigou and Chinese tourist markets.
Year on year sales rose by 107 per cent to A$21.4 million with a gross profit of A$3.1 million. Gross profit grew faster than sales with gross margin up by 3.5 per cent due to improved sourcing costs and sales of high margin owned brand products.
In a message to shareholders, AuMake executive chairman Keong Chan, acknowledged significant achievements throughout the year, which have provided a “solid foundation” for future growth.
“The 2018 Financial Year has been transformative for AuMake. Since our ASX listing in October 2017 we have delivered on significant milestones which provide a solid foundation for our future growth, including expanding our distribution network, strategic brand acquisitions and alliances, operational progress and momentum in our financial performance,” said Chan.
AuMake expanded its distribution network this year with the opening of four new retail stores across Sydney, bringing total stores in the harbour city to eight, along with five Kiwi Buy stores. The flagship store on George Street in Sydney’s CBD, which is focused on Chinese Free Independent Tourists, continues to grow in sales and gross profit with high gross margins.
“We have made good operational progress across the business, including moving our corporate headquarters to Auburn NSW with expanded warehouse facilities and the integration of the Kiwi Buy business, to maximise the back-office synergies from the acquisition,” added Chan.
The innovative Daigou Hubs in Haymarket and Burwood, which allow Australian suppliers to directly interact with daigou and livestream these interactions to audiences back in China, have “spearheaded” the growth of the AuMake brand.
“An AuMake storefront on the JD.com platform in China was also launched for the primary promotion of AuMake owned brand products. This significant achievement followed many months of rigorous due process, validating [its] position in the market as a supplier and distributor of Australian products into China,” said Chan.
The company’s online offering (WeChat and the e-commerce websites) is growing at a progressive rate, with an average of 1000 new members joining each week. There are 400,000 daigou within Australia and 1.4 million Chinese tourists per annum and growing.