On December 11, 2018, AuMake International Limited (ASX: AU8) have made an announcement regarding the deal with the JD Worldwide through the issue of the press release. As per the press release issued by the company, AuMake International has signed a deal with JD.com’s division. In China, JD.com has a robust position when it comes to e-commerce platforms, and this is evident as the company had reported sales revenues amounting to A$72.4 billion in 2017. Moreover, the company also possess a logistics network which is based out in China, and it also has distribution centres spanning across twenty-eight cities. It also possesses over 550 warehouses.
With the help of the partnership, JD Worldwide, as well as AuMake, plans to utilize the opportunity which is presently there with respect to the products and brands of New Zealand and Australia. The press release which was issued also contains some of the important principles in regard to the agreement between the two companies. Amongst the important principles, one principle revolves around merging the retail store as well as the capability of brand building of AuMake with that of logistics as well as the online ability of the JD Worldwide which is present in China. As a result of this, retail store/online space would be established which would be extending the support to the products of New Zealand as well as Australia and hence, these products would be able to cater to the market in China. Another important principle revolves around joining the resources of both the parties so that new brands can be built as well as extending the helping hand to the merchants or suppliers of New Zealand as well as Australia so that they can increase the awareness of the brand in the market of China.
Let us now have a look at the viewpoints of the management of JD Worldwide. The management of this company reflected favorable views in regard to the agreement with the AuMake. The management stated that it was necessary to possess the retail store distribution network in the Australian region so that the brand recognition might happen in regard to the markets in Australia. The management of AuMake also reflected positive views in regard to the agreement by stating that, as a result of agreement, AuMake can target the numerous customers which are present in China.
The last traded price of AuMake International Limited was A$0.275 per share. The market capitalization of AuMake stood at $74.65 million. Over the past few months, the stock has managed to deliver the positive returns. In the time span of three months, the stock of AuMake has delivered the return of 1.85%.
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