Aumake Accelerates Growth with $12.7M Sales and Strategic Partnerships

Strong Sales Momentum and Operational Efficiency

Aumake Limited (ASX: AUK) has delivered a compelling quarterly performance for Q3 FY25, reporting cash receipts of A$12.7 million, a striking 160% increase compared to the same period last year and an 11% rise from the previous quarter. This surge underscores the company’s growing traction in the Asia-Pacific market, particularly through its expanding e-commerce and B2B channels.

Operational improvements have also translated into a 75% reduction in net cash used in operations, falling to just $286,000. This reflects maturing sales channels and tighter cost controls, including meaningful reductions in senior staff salaries and directors’ fees implemented in April.

Strategic Partnerships Fueling Growth

Aumake’s growth story is bolstered by several new strategic agreements signed during the quarter. Notably, a two-year e-commerce collaboration with Sichuan Airlines E-Commerce Co., Ltd. positions Aumake as an authorised supplier on the airline’s platform, already generating over a quarter of a million dollars in sales.

Further expanding its footprint, Aumake secured a three-year exclusive distribution deal with Kabrita for the Australian and New Zealand markets, with sales exceeding A$1.5 million since signing. Additionally, a distribution agreement with Henan Wanbang, one of China’s largest private agricultural product distributors, opens access to a vast network of over 7,000 business owners, enhancing revenue stability and market reach.

Diversification and Product Expansion

The company continues to diversify its product portfolio, with infant formula and nutritional dairy products remaining core revenue drivers. New segments such as premium wine and vitamins and health products now contribute meaningfully, accounting for 11% and 16% of cash receipts respectively. This diversification aligns with Aumake’s strategy to build a proprietary brand portfolio targeting health and aging sectors across Australia and Asia.

Leadership Transition and Cost Discipline

February 2025 saw the appointment of Dr. Anthony Noble as Non-Executive Chairman, succeeding Stephen Harrison. Dr. Noble brings extensive experience in e-commerce and international market expansion, which is expected to accelerate Aumake’s strategic initiatives.

In a bid to enhance cash flow and move towards profitability, all three executive directors have reduced their salaries and fees for the final quarter of FY25. The CEO has also committed to a comprehensive review of the company’s fixed cost base to support this objective.

Challenges and Outlook

Despite these positive developments, Aumake faces ongoing uncertainty regarding a previously announced $16 million purchase order from Yangtze River, a State-Owned Enterprise. Delays in decision-making and potential pricing challenges have stalled sales under this order, though negotiations remain active. The company currently holds a $960,000 deposit related to this deal.

Ending the quarter with $3.3 million in cash and no immediate financing needs, Aumake is well-positioned to continue executing its growth strategy. Its focus on leveraging private channel ecosystems, strengthening global brand partnerships, and building proprietary brands could unlock further value in the high-growth Asia-Pacific consumer market.