AuMake (ASX: AU8) predicted 2019 would be a good year for it and the prediction is proving accurate.

Last year it bought the ‘KiwiBuy’ franchise for $300,000 in AuMake shares. KiwiBuy has five stores in Sydney focused on daigou consumers.

Daigou alludes to the practice of purchasing goods (most notoriously infant formula) in bulk for other people. This happens among Chinese tourist groups as well as Australians with Chinese relatives.

Since the purchase, KiwiBuy has generated $10.8 million in revenue and $2.2 million in gross profit – a return of 520 per cent.

The company also updated shareholders on another acquisition it had made, Broadway. While it did not reveal financial figures, it told shareholders a “record number of Chinese travel agencies” had inquired with Broadway – a 30 per cent increase.

AuMake also said it was “highly encouraged” by Broadway’s financial and operational performance and trading conditions were “better than expected”.

The company has been in a transition plan to integrate the businesses and will take effective control on July 1.

On a company wide basis, AuMake reconfirmed its target of $100 million in revenue and materially positive EDITDA. It also expects increased sales online as well as sales of its own branded products.

While most AuMake stores are in Sydney, it has expanded into Queensland and New Zealand this year. Shares are currently trading at 16.5 cents, a 3.1 per cent increase from Friday’s price.


In other ASX small cap corporate news today

Another week, another Aurora takeover bid has been met with calls to be ignored. 8IP Emerging Companies (ASX: 8EC) chairman Jonathan Sweeney has told shareholders Aurora’s bid for 8IP significantly undervalued the company and was “opportunistic and ill conceived”. Aurora has offered shareholders between 75 and 82 cents for their shares. Sweeney reminded 8EC shareholders its recent post-tax profit was 91 cents per share and Aurora’s two bids, in excess of $40 million, were over nine times its present assets. He also warned shareholders they might not be able to exit ADIT (Aurora’s Dividend Income Trust).
A group of investors in casino-operator Donaco (ASX: DNA), led by venture capitalist James Spenceley, have submitted a requisitioning to the board. The shareholders are seeking to remove directors Joey Lim and Benjamin Hoe. Lim lost the CEO role back in March but has remained a director. The board now have to call a meeting within 21 days and hold a shareholders meeting within two months and Donaco has confirmed this will occur.
Two years after UUV Aquabotix (ASX: UUV) listed at 20 cents, it is now at just one cent. The company has no shortage of products, but has struggled to turn hype into sales. In the whole of 2018 it generated just $154,494 in revenue.

New York based fund manager Eagle’s View spent $1.4 million in IPO shares then a further $1 million in a placement in 2018, then holding a stake of nearly 20 per cent. But last week, it sold out of the company. Having sold down 6 million shares in the last nine months, it disposed of its remaining 22 million shares last Thursday for just $326,295.
Celeste Funds Management is the latest fund manager to be offloaded by AustralianSuper as the super fund manager seeks to cut its exposure to equities. Celeste has revealed which companies it managed for Australian Super. It filed ceasing to be substantial holder notices for Think Childcare (ASX: TNK), Lycopodium (ASX: LYL), City Chic Collective (ASX: CCX), Monash IVF (ASX: MVF), Salmat (ASX: SLM) and Veem (ASX: VEE).