Aumake crushed by Covid, trade tensions

AUMAKE, the ASX-listed online retailer built around Chinese tourists and personal shoppers known as Daigou, has seen its financial performance smashed by international borders closures and trade tensions between Beijing and Canberra.

The group’s losses have blown out to $20.1m for the year ended June 30, from a loss of $5.1 last year, as revenue sank by 79 per cent to just $12.4m.

The company blamed the revenue drop on the continued impact of Covid-19 on its business.

Online gross merchandise value rose to $9m, representing 72 per cent of total revenue as active users purchased more products from its new online platform. Aumake said its $20m-plus loss consisted of non-cash losses of $13.5m and a cash loss of $6.6m, due to the fallout of Covid-19 and ongoing investment in its new online platform.

The group received $1.1m of JobKeeper subsidies from the federal government in the 2021 financial year. No dividend was declared. Aumake shares closed 0.2c down at 2.4c.