AuMake Limited (ASX:AUK) has released its consolidated quarterly cash flow and activities report for the quarter ending December 31, 2023 (Q2 FY24), showcasing significant achievements and growth. The company, operator of an Australian-based social e-commerce marketplace connecting Asian influencers and consumers with high-quality Australian and New Zealand brands, reported a surge in cash receipts, strategic partnerships, and market expansions during the period.
Financial Highlights
In Q2 FY24, AuMake recorded cash receipts of $9.6 million, marking a remarkable 49.6% increase from Q1 FY24. This substantial growth in cash receipts was driven by the implementation of new sales channels and initiatives introduced by strategic partner and investor, HK Huibeijia Brand Manage Co Ltd (HKH). The company’s strong cash position of $1,688,000 as of December 31, 2023, positions it well to explore further partnership opportunities.
Strategic Partnerships and Market Expansion
AuMake solidified its market presence and expansion efforts through strategic partnerships and collaborations. The company entered into a non-binding term sheet with Peterson Wines Pty Ltd to offer premium products and tourism experiences in New South Wales’ Hunter Valley region to Asian markets. Additionally, AuMake’s fully owned subsidiary, AuMake Australia Pty Ltd (AAPL), established a strategic framework with China Animal Husbandry Group, Ltd. (CAHG) to incubate and develop premium health foods and agricultural brands.
The company also participated in the 6th Annual Chinese International Import Expo (CIIE) in Shanghai, showcasing its diverse product suite of Australian-made health and wellness consumer products to the growing Chinese market. This participation culminated in the signing of a Strategic Framework Agreement with China Animal Husbandry Group, further strengthening AuMake’s foothold in the Chinese market.
Capital Raising and Operational Initiatives
During the quarter, AuMake successfully raised $1,487,256 in working capital through Novus Capital Limited. The funds raised will be utilised to implement operational strategies, explore initiatives to leverage improving Australia-China relations, sustain the company’s e-commerce business, and support general working capital requirements.
Operationally, AuMake continued to activate and sell through newly introduced online and offline Chinese channels facilitated by HK Huibeijia Brand Manage Co Ltd. Negotiations with various parties are ongoing to establish co-branded outsourced retail stores in Australia, reflecting the company’s commitment to expanding its physical retail presence.
Outlook
Looking ahead, AuMake remains focused on delivering initiatives outlined in its Strategy Update and capitalising on the growth opportunities presented by its strategic partnerships. The company is refining its tourism experience offerings in NSW’s Hunter Valley and initiating plans for the development of own-branded products with higher gross margins.
In conclusion, AuMake’s robust performance in Q2 FY24, characterised by significant revenue growth, strategic partnerships, and market expansion efforts, underscores its position as a key player in connecting Australian brands with Asian consumers. With a strong financial position and ongoing operational initiatives, AuMake is poised for continued growth and success in the coming quarters.
