Aumake Limited unveils a major FY26 restructuring, splitting operations into two focused units and targeting acquisitions in health supplements to boost profitability and market reach.
- Creation of two distinct business units – AUMAKE GLOBAL and AUMAKE CHINA
- Focus on EBITA accretive brand acquisition in health supplements and functional foods
- Aggressive cost-cutting and portfolio rationalisation to improve margins
- Exploration of new distribution channels in China hospitals and US markets
- Leadership changes with clear P&L accountability for each business unit
Strategic Restructuring for FY26
Aumake Limited (ASX, AUK) has announced a comprehensive restructuring plan for the 2026 financial year, aiming to sharpen its strategic focus and improve profitability amid evolving market dynamics. The company will reorganise into two primary business units; AUMAKE GLOBAL and AUMAKE CHINA; each with dedicated leadership and profit and loss responsibility. This move is designed to streamline operations and better align resources with growth opportunities.
Dual Business Units with Distinct Mandates
The AUMAKE GLOBAL unit will encompass ventures such as the Newera Australia Pty Ltd joint venture with ZoomCoo Holding and the 168 Express joint venture. Led by Executive Director Joshua Zhou, this unit will pursue EBITA accretive acquisitions in the health supplement and functional food sectors, targeting brands that can be distributed across all of Aumake’s sales channels. Additionally, it will explore expanding sales in China and the USA through the NewEra ZoomCoo partnership and distribution of China-sourced products into Australia and other international markets.
Meanwhile, AUMAKE CHINA, under Executive Director Hai Yun Chen, will focus on transitioning its cross-border and China retail B2B and B2C operations to lower-cost models. This unit will rationalise its product portfolio to prioritise higher-margin offerings and explore new distribution channels, including pilot zone hospital distribution in China with exclusive licensed partners. The unit includes subsidiaries such as Aumake Hong Kong Limited, Aumake Shanghai, and Aumake Hangzhou.
Cost Reduction and Portfolio Rationalisation
In line with its strategic objectives, Aumake is aggressively cutting costs across all business units, focusing on contractual arrangements and staff overheads to improve cash flow and profitability. This cost discipline is a critical first step before pursuing growth initiatives. The company’s head office will continue to manage finance, audit, ASX reporting, legal, compliance, and investor relations through a shared services model, maintaining oversight while enabling operational agility within the two business units.
Market Expansion and Partnership Opportunities
Aumake’s strategy includes exploring new market channels and partnerships, notably the activation of sales in China and the USA leveraging the NewEra ZoomCoo partnership. The company is also investigating the distribution of China-sourced products into Australia and other international markets, potentially broadening its product offering and geographic footprint. The pilot zone hospital channel initiative in China represents a novel approach to tapping into institutional sales, which could provide a stable and scalable revenue stream if successful.
Leadership and Governance
The restructuring brings leadership changes with Joshua Zhou and Hai Yun Chen transitioning to executive director roles with full P&L responsibility for their respective units. This clear accountability is expected to drive sharper decision-making and operational focus. The board remains actively involved, approving the new structure and strategic direction, signaling confidence in management’s ability to execute these plans.
Bottom Line?
Aumake’s FY26 restructuring sets the stage for disciplined growth, but execution risks and market uncertainties remain key watchpoints.
Questions in the middle?
- Which specific brands or acquisitions is Aumake targeting to drive EBITA accretion?
- How quickly will cost-cutting measures translate into improved profitability?
- What are the timelines and expected scale for new distribution channels in China hospitals and the USA?