AuMake loss balloons 752 per cent in first half
Social-commerce business AuMake saw the impact of largely transitioning its business model in the last half, after its main customer base, daigou shoppers, were prevented from travelling due to the spread of Covid-19.
Revenue from ordinary activities for the business fell 80 per cent to $9 million, while its loss after tax plummeted a further 752 per cent to $3.9 million.
“Business performance during [the first half] reflected the continued impact of Covid-19 with limited visitation from international students and tourists (influencers) due to the closure of Australia’s international border,” the business said in a statement to the ASX on Thursday.
“This disruption provided a strategic opportunity for the Company to shift to a ‘capital-light’ online business model… In early October 2020, the Company launched the first stage of its social e-commerce marketplace connecting influencers in China with Australia and New Zealand brands.”
The outlook isn’t all doom and gloom, however. The business’ social commerce efforts are picking up steam, with the business stating earlier this week it had doubled the amount of users on the platform in the last six months to over 20,000 – 63 per cent of which are repeat buyers.
And, the business said it will continue to invest in this new venture, as well as further rationalise its store footprint and assess key strategic opportunities as they arise.