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AuMake International Limited (AuMake or the Company), a specialist retailer providing
a contemporary shopping experience to Asian customers seeking high-quality and authentic Australian and New Zealand products, is pleased to release its financial results for the 2020 Financial Year (FY20).
Financial Results Summary

The Company’s financial performance significantly improved in FY20 with the strategic acquisition and integration
of Broadway Group during 1HFY20, which substantially increased Asian tourist visitation to AuMake.
However in early 2HFY20, the COVID-19 pandemic resulted in the closure of Australian & New Zealand
international borders which materially reduced Asian tourist traffic to AuMake and associated revenue.
AuMake responded immediately by taking steps to significantly reduce operating costs including downsizing its
labour force, temporarily closing physical stores and deferring/cancelling all non-core expenditure. In addition to
implementing operating expenditure measures, the Company worked closely with key creditors and obtained
government subsidies such as JobKeeper, to allow the Company to effectively manage its cash position.
After a short period of consolidation, the Company turned its attention to growth with increased investment into
its online business. The launch of Broadway Online in March and the renewed focus from AuMake Online
towards the promotion of higher margin products, materially improved total online financial performance during
2HFY20.
Keong Chan, Executive Chairman said:
“COVID-19 has had a profound impact on AuMake.
Despite traditional revenue streams being impacted during 2HFY20, our financial performance improved
significantly across all key metrics for FY20. This financial performance and ability to navigate COVID-19 is
attributed to the talent and commitment of the AuMake team and our partners.
COVID-19 has challenged our very DNA and I am proud to say that our response has been emphatic. We have
deeply considered the ‘big picture’ and are firmly focussed on growth in the context of a vastly different world.

An important step in our future growth is our recently announced partnership with Shenzhen Jiezhou
Technology Co, Ltd., who are partly owned by leading fintech Ant Financial Services Group, to develop our
next generation online platform to be launched in October 2020.
Our new online platform will not only simply cater for trading retail products in the traditional sense but most
importantly usher in a new online era in Australia by incorporating the very latest E-commerce trends from China
and around the world, which blends previously separate concepts of social networks and commerce into one.
The evolution of AuMake is also not just isolated to our online business but will be entirely holistic as we fully
embrace a complete transformation of our business.
We are incredibly excited for the future of AuMake and I look forward to updating our shareholders in the near
future.”
Financial Highlights
• FY20 total group revenue of $60m (up 35% vs FY19) due to acquisition of Broadway business
• Total group gross profit of $25.3m (up 232% vs FY19) delivering a gross profit margin of 42.2% (up 145% vs
FY19)
• Online sales of $14.7m (up 130% vs FY19) with gross profit of $2.1 m (up 158% vs FY19)
• Gross margin of 42.2% (up 145% vs FY19), due to increase in sales of higher margin products
• Pro forma Operating EBITDA loss of $2.9m (37% improvement vs FY19) due to increased online sales as inbound tourism to Australia was impacted by COVID-19
• Pro forma NPAT1 was a loss of $4.4m (a 46% improvement vs FY19)
• Cash at bank of $8.2m as at 30 June 2020 with no debt ($10m at 30 June 2019)
• Operational cash inflow of $3.0m for FY20 (outflow of $6m in FY19), including significant investment in online growth and in-store customer experience on re-opening

Revenue
• Total Revenue for FY20 was $60m, consisting of $45.3m physical store revenue and $14.7m online revenue
• Online revenue of $14.7m represented growth of 130% on the prior corresponding period, indicative of AuMake’s increased traction with its digital marketing and platform investments.
Gross Margin
• Gross margin grew by 145% over the year to 42.2%, reflecting the significant increase in sales of high margin owned brand products to $12m (27% of total revenue); and
• Online gross profit margin increased considerably over the period to 14.2% (up 12% vs FY19).
Cashflow
• Cash on hand as at 30 June 2020 was $8.2m ($10m at 30 June 2019); and
• Cash inflow from operations over the year was $3m, largely contributed by strong revenue growth.

Inventory
• Inventory decreased by 67% to $1.7m as at 30 June 2020 ($5.1m at 30 June 2019), indicating significant improvement in operational leverage and effectiveness in inventory management.

Operating Expenses
• Cost of Doing Business (“CODB”) comprised 50% of total revenue and marketing expenses and included commissions paid to travel agents, which delivers customers to Broadway stores.
• AuMake actively managed its cashflow position during the year. The closure of its physical stores resulted in the Company making the difficult decision to reduce its workforce by 70%.
• The Company received all eligible government support to mitigate the impact of COVID-19, including

JobKeeper and rent assistance.
• The Company will continue to monitor and effectively manage both CODB and marketing expenses to maximise profitability.

Operational Highlights
• AuMake has grown its online database to more than 40,000 unique visitors
• Since its launch in February 2020, the Broadway Online platform has experienced growing demand with more than 10,000 unique visitors, driving online purchases from over 1,000 new China-based consumers
• The Company is significantly improving its in-store experience as it continues to progressively re-open physical stores

Outlook
Whilst welcomed, AuMake’s growth during FY21 is not be reliant on the return of Asian tourists.
During FY21, AuMake will:
• Significantly enhance online capability and online experience in partnership with technology partner
Shenzhen Jiezhou Technology Co, Ltd
• Aggressively grow its existing 40,000 unique visitor database via key partnerships
• Reinvigorate product mix to provide new exciting choices for customers and catering for changing
consumer tastes
• Selectively reduce physical store footprint to key strategic locations; and
• Incorporate new retail concepts in remaining physical stores to significantly improve customer experience and support the growth of customer database, which will be further expedited with the eventual return of Asian tourists