Aumake’s $39.8M Revenue Surge Narrows Loss to $3.48M

Robust Revenue Growth Amid Strategic Shift

Aumake Limited (ASX, AUK) has delivered a notable financial turnaround in the year ended 30 June 2025, reporting revenues of $39.8 million, up 54% from $25.9 million the previous year. This surge reflects the company’s deliberate repositioning towards higher-margin product distribution and brand partnerships, alongside a streamlined operating structure that reduced fixed overheads.

Despite still recording a net loss of $3.48 million, this represents a 45% improvement from the $6.28 million loss in FY24, signaling progress on the path to profitability. The company’s net tangible assets per share also improved threefold to 0.09 cents, underscoring a strengthening balance sheet.

Key Strategic Agreements Fuel Momentum

FY25 saw Aumake secure several significant supply and distribution agreements that underpin its growth ambitions. Notably, the company became the exclusive distributor in Australia and New Zealand for Kabrita High-Calcium Adult Goat Milk Powder, with early sales exceeding $1.5 million into early FY26.

Other agreements included a tripartite wine sales deal involving Hunter Valley Wine & Tourism Alliance and Chinese importers, and a two-year e-commerce collaboration with Sichuan Airlines E-Commerce Co., Ltd. These partnerships expand Aumake’s footprint across key cross-border markets, particularly China.

However, a $16 million binding purchase order from Chinese SOE Yangtze River New Silk Road International Logistics was temporarily suspended pending an internal review, introducing some near-term uncertainty.

Capital Restructuring and Going Concern Considerations

To support its strategic initiatives, Aumake undertook several capital management actions, including a share placement and converting $1 million of debt into equity, broadening its shareholder base and reducing dilutionary pressure by cancelling expired options.

Despite these efforts, the company acknowledges material uncertainty regarding its ability to continue as a going concern. With $1.7 million in cash at year-end and ongoing operating cash outflows, Aumake plans to raise additional equity capital in FY26, supported by an investor mandate agreement with Novus Capital Pty Ltd.

FY26 Strategic Priorities Set the Course

The Board has outlined six strategic priorities for FY26 focused on securing exclusive brand acquisitions in health supplements and functional foods, rationalising the brand portfolio, simplifying subsidiaries, expanding distribution channels, activating the Newera Zoomcoo partnership to boost Australian product sales into China and the USA, and exploring distribution opportunities for China-sourced products internationally.

Execution of these priorities aims to solidify Aumake’s operating base, improve margins, and establish sustainable growth in its core cross-border markets.

Outlook and Market Implications

While the company’s improved financial performance and strategic deals are encouraging, the going concern caveat and reliance on capital raising highlight ongoing risks. Investors will be watching closely how Aumake navigates these challenges and delivers on its ambitious FY26 agenda.