Daigou-focused retailer AuMake has halved its losses after more than doubling its sales revenue in the space of a year, and is aiming for a bigger bite of the $2 billion cross-border commerce market.
The company announced a first-half net loss of $2.96 million on Thursday - a reduction of 49 per cent from $5.8 million a year ago - with sales revenue more than doubling to $21.8 million on 30 per cent same-store growth.
AuMake's operating costs for the six months to December 31 represented 31 per cent of sales, higher than 27 per cent from the prior corresponding period, but significantly down from the full-year ratio of 46 per cent.
These lowered costs stemmed from the automation of online sales operations and efficient store rostering systems.
The company, which sells Australian products in a range of categories including skin care, supplements and milk formula to daigou and Chinese markets, generated 30 per cent of total sales through its website.
AuMake also maintains its own brands, sales of which executive chairman Keong Chan said had quadrupled in the last six months.
"We are in a very pivotal point of our growth, we've spent the last six months refining our business model and our gross margins are about double the industry average," Mr Chan said.
The company, which currently operates 13 retail stores in Sydney, is looking to expand shop fronts across Australia and New Zealand in a bid to "open lots and lots of doors in China."
"That's our priority," Mr Chan said.
In January, changes to e-commerce legislation came into affect tightening regulation around registering businesses and payment of taxes.
But nearly eight weeks later, Mr Chan said there had been no visible affect on business following a strong trading season after Chinese New Year.
The company will not pay an interim dividend.
At 1345 AEDT, AuMake share were five per cent higher at 20.5 cents.
AUMAKE HALVES LOSSES IN HY RESULTS
* Net profit down 49pct to $2.96m
* Sales revenue doubled to $21.8m
* No interim dividend
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