Aumake (ASX:AUK) shares closed strong today. Here’s why

Highlights

  • Aumake shares went up to gain around 20% today.
  • The online platform is moving for growth in New Zealand.
  • New Zealand is a fast-growing export market for Aumake.

Aumake Limited (ASX:AUK), the Australian e-commerce platform owner, moves forward in the New Zealand market with strategic growth initiatives. On this announcement, its shares on ASX have surged up. AUK shares are trading up 20% as of 10:15 AM AEST, over their previous close price.

What is Aumake doing in New Zealand?

  • Brand Development: To capitalise on strong growth momentum in New Zealand (NZ) exports, AUK has signed a new brand development partnership with Prizm Group. Prizm Group is one of NZ’s largest incubator and digital agencies. It can provide AUK access to over 100 high-quality brands in NZ. Aumake has begun onboarding Prizm to the Company’s social e-commerce platform and is to enhance Aumake’s product offering.
  • Leveraging strategic logistics partnership – AUK will utilise Wiseway Group (ASX:WWG) distribution centre in Auckland, New Zealand, to provide a fast and secure channel for New Zealand suppliers to export their products globally, including into China. It includes using WWG’s cold supply chain capability to export high-quality fresh produce and perishable products overseas. WWG’s international logistics hubs and distribution routes throughout South-East Asia and the United States create potential growth opportunities for AUK.
  • Meet growing consumer demand – Aumake has become experienced in the New Zealand market, and over 25% of its FY20 revenue came from NZ brands. It is a fast-growing export market for AUK, and it wants to leverage the upgraded Free Trade Agreement between China and New Zealand to grow here. Aumake also operates physical stores in key precincts of New Zealand, delivering a fully integrated online and offline shopping experience for Asian customers. Its influencer-based e-commerce marketplace seeks to capitalise on the growing demand for NZ products in Asian markets.

AUK shares closed 9.999% higher at AU$0.022 per share today.

Bottom line

The strategic partnership with brand developer Prizm, and logistics company, Wiseway, boosts Aumake’s ability to expand in the Asian Markets. These steps are aimed at creating and meeting the demand for high-quality NZ brands. AUK’s business shall further enhance with reopening international borders, students and tourists, taking store and online purchases to the next level.

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