Aukey's 2025 Financial Report: Revenue Up Nearly 30% YoY, But Profits Plummet 68%

[Ebrun Original] Cross-border e-commerce company Aukey (referred to as "Aukey") recently released its 2025 annual report. The report shows that the company achieved total operating revenue of 13.699 billion yuan in 2025, a year-on-year increase of 27.91%. However, net profit attributable to shareholders was only 161 million yuan, a sharp decrease of 68.05% compared to the previous year. This means Aukey delivered a performance of 'increased revenue without increased profit'.

While its revenue scale expanded, Aukey's profitability came under pressure: the overall gross profit margin dropped from 30.8% in 2024 to 26.3%, a decrease of 4.5 percentage points.

Breaking down by product line, Aukey's main product focus has successfully shifted from 3C digital consumer electronics to furniture, home goods, and power tools. In 2025, revenue from furniture, home goods, and appliances reached 7.611 billion yuan, up 12.9% year-on-year, accounting for 55.6% of total revenue and being the largest contributing category. Revenue from logistics solutions was 4.117 billion yuan, surging 68.6% year-on-year, accounting for 30.1% of total revenue. Revenue from power tools was 1.062 billion yuan, an increase of 43.1% year-on-year. Revenue from other products was 909 million yuan, up 15.6% year-on-year.

It is noteworthy that although the logistics business saw nearly 70% revenue growth, its gross profit margin was halved from 12.4% to 5.4%, becoming the main factor dragging down overall profits.

Geographically, the North American market remains Aukey's core base. Looking solely at merchandise sales, revenue from the US and other North American countries was 8.257 billion yuan, up 12.8% year-on-year, accounting for 86.2% of merchandise sales revenue. Revenue from Europe was 1.120 billion yuan, a significant increase of 49.8% year-on-year, accounting for 11.7%. Revenue from other countries was 205 million yuan, up 2.4% year-on-year, accounting for 2.1%. The rapid expansion in the European market is helping the company reduce its reliance on a single market.

In terms of sales channels, Aukey's online sales are still primarily via Amazon. In 2025, revenue from the Amazon channel was 5.806 billion yuan, an increase of 14% year-on-year, accounting for approximately 61.16% of total revenue. Revenue from the home furnishings vertical e-commerce platform Wayfair was 1.103 billion yuan, up 20.3% year-on-year. Revenue from the Walmart channel was 921 million yuan, down 5.7% year-on-year.

Meanwhile, Aukey is actively working to reduce its dependence on a single platform. The financial report shows that the company achieved strong growth of 102.3% in revenue from emerging platforms such as TikTok and TEMU. Management stated that they will continue to expand to multiple platforms and increase penetration into non-North American markets.

Regarding specific expenses, Aukey's selling expenses increased from 2.072 billion yuan in 2024 to 2.513 billion yuan in 2025, a rise of 21.29%. The report explains that this was mainly due to increases in business promotion fees, platform transaction fees, employee expenses, and overseas warehouse rental costs. The company's R&D expenses increased from 130 million yuan to 182 million yuan, a rise of 40.08%; the ratio of R&D expenses to operating revenue increased from 1.21% to 1.33%, primarily due to an increase in the number of R&D staff.

Looking ahead to the new year, Aukey faces two main challenges: first, how to pull the rapidly expanding logistics business out of the quagmire of 'diseconomies of scale' and restore its gross profit margin; and second, how to control the excessive growth of selling expenses and financial costs during the process of platform and market diversification.

While revenue exceeding ten billion yuan is certainly impressive, whether Aukey can reverse the 'halving' of profits in 2026 will be the key question for investors.