Record growth for AuMake
AuMake International Limited has enjoyed another period of record growth, with financial momentum continuing into the December quarter.
The retail company enjoyed sales of $10.05 million for the September quarter, up 43 per cent from $7.04m in the June quarter, with a gross profit of $1.76 million. This figure was up 63 per cent from the previous quarter.
The retailer had a significant increase in its owned brand sales growth with that figure up 47 per cent to $550,000 for the period.
The addition of a dairy category added its burgeoning owned brand product portfolio. The retailer acquired 50 per cent of Herbsmart Pharmaceutical with the intention of developing innovative products for China’s ageing population by combining the health benefits of natural supplements and milk.
Online contributed 30 per cent of overall sales and membership grew by 13,000 to 93,000 members.
While the new China eCommerce law (scheduled to come into effect 1 January 2019) are yet to be released by the Chinese government, AuMake believes that the new legislation will likely be favourable towards Australian based daigou.
“The Chinese tourist driven segment which comprises 50% of the AuMake business, is anticipated to be uneffected by the introduction of upcoming legislation and continues to perform strongly,” the company said in its quarterly report.
With many supplier aware that they may experience significant changes to their existing sales channels to the Chinese market when the new law comes into effect, many have declared their interest in accessing AuMake’s distribution network to solidify sales channels to the Chinese market.
Commenting on the positive results from the September quarter, Executive Chairman Keong Chan said further material improvement is anticipated across all financial metrics in the December quarter.
“We now expect to reach total operational breakeven earlier in the 2019 financial year than previously advised given our current financial trend,” Chan said.
“December quarter activities will include further marketing activities to strengthen our Australian distribution network, initial sales from our strategic partnership with China’s TV sales platform JiaJia, a further addition to our owned brand dairy product portfolio and realisation of further strategic partnerships which will provide additional growth opportunities.”
Chan also said that the company will continue to assess acquisition opportunities and will advise the market at the appropriate time.
“The continued maturation of the AuMake business is starting to have a significant impact on the movements of daigou and Chinese tourist markets domestically, and positions the Company to be one of the most exciting and progressive companies in Australia’s Chinese market,” Chan added.