Aumake Posts $11.4M Cash Receipts, Boosted by $16M Purchase Order
Aumake Limited reported a remarkable 239% increase in quarterly cash receipts, driven by a $16 million purchase order from Yangtze River and a strategic capital raise, positioning the company for robust growth in 2025.
- 239% increase in cash receipts to $11.4 million in Q2 FY25
- Secured $16 million purchase order from Yangtze River for health supplements, dairy, and beef
- Received purchase order from China Southern Air for premium Australian alcohol
- Completed $4.01 million capital raise and converted $1 million debt to equity
- Maintained strong cash balance of $3.7 million with ongoing cost optimization
Operational Breakthroughs Drive Revenue Growth
Aumake Limited (ASX: AUK) has delivered a standout quarterly performance for the three months ended December 31, 2024, reporting cash receipts of $11.4 million, a staggering 239% increase over the previous quarter. This surge was largely fueled by the company’s successful execution of its $300 million Strategic Framework Agreement with Yangtze River New Silk Road International Logistics, a Chinese state-owned enterprise.
During the quarter, Aumake secured a $16 million purchase order from Yangtze River for a diverse range of products including health supplements, dairy, and beef, with deliveries scheduled over the next three months. This milestone not only validates Aumake’s operational capabilities to meet large-scale demand but also sets the stage for sustained order flow, particularly following the Lunar New Year period.
Expanding Market Footprint with Premium Products
Complementing the Yangtze River deal, Aumake also received a direct purchase order from China Southern Air Cross Border E-Commerce (Hainan) Co., Ltd for high-margin Australian alcohol products. This order underscores the growing appetite for premium Australian exports in key Asian markets and reinforces Aumake’s strategic focus on expanding its presence in lucrative product categories.
The company’s logistics and supply chain infrastructure have been pivotal in fulfilling these orders efficiently, enabling scalability while maintaining operational discipline. Cost-saving initiatives, including relocating its registered office and lapsing unexercised options, further demonstrate Aumake’s commitment to fiscal prudence.
Financial Strength Bolstered by Capital Raising
On the corporate front, Aumake strengthened its balance sheet through a $4.01 million capital raise and the conversion of $1.02 million in loaned debt into equity. Notably, Executive Director Zhao (Tracy) Zhang personally invested $500,000 in the placement, signaling strong insider confidence in the company’s strategic direction.
With a robust cash position of $3.7 million at quarter-end and a streamlined cost structure, Aumake is well-positioned to capitalize on its growing pipeline of orders and pursue additional high-growth opportunities across Asia.
Outlook: Scaling Growth and Diversification
Looking ahead, Aumake is focused on diversifying its revenue streams into high-margin sectors such as premium alcohol, agricultural goods, and fast-moving consumer goods (FMCG). The company aims to leverage its strategic partnerships with Chinese state-owned enterprises to secure further large-scale agreements, enhancing its cross-border trade capabilities.
Management’s disciplined approach to cash flow and operational efficiency, combined with a strong network in Asia’s high-growth markets, positions Aumake to deliver sustainable growth and long-term shareholder value in 2025 and beyond.
Bottom Line?
Aumake’s Q2 momentum and strategic partnerships set a promising trajectory, but execution risks and market dynamics will be critical to watch.
Questions in the middle?
- Can Aumake sustain and scale the $16 million Yangtze River order into recurring revenue?
- What new agreements with other Chinese SOEs might Aumake secure in 2025?
- How will Aumake manage operational costs while expanding into new high-margin product categories?
