Join our daily newsletter At The Bell to receive exclusive market insights
- AuMake’s (AU8) share price has hit a record low after it warned of an impact from the Chinese travel ban resulting from coronavirus
- On January 25, China’s Ministry of Culture and Tourism instructed Chinese travel agents to suspend all tour groups and the sale of overseas flight and hotel packages from January 27
- In the event of escalation, AuMake is confident of its ability to meet all financial commitments in the future due to its strong cash position and customer base
- The company will continue to assess the impact of coronavirus as more information emerges
- AuMake has ended the day 18.3 per cent in the red with shares trading for 9.4 cents apiece
AuMake’s (AU8) share price has hit a record low after it warned of an impact from the Chinese travel ban resulting from coronavirus.
On January 25, 2020, China’s Ministry of Culture and Tourism instructed Chinese travel agents to suspend all tour groups and the sale of overseas flight and hotel packages from January 27, 2020.
The tourism retailer team is highly experienced in managing significant disruptions in the travel industry, having dealt with the SARS (severe acute respiratory syndrome) epidemic in 2003.
Management is receiving up-to-date, accurate information as it comes to hand via relationships developed over the last 20 years.
AuMake has developed relationships with over 50 retailers in China, which has placed it in a good position to manage to situation sufficiently.
In the even of a significant disruption, AuMake is confident in its ability to meet all financial commitments for the foreseeable future due to its strong cash position and diverse customer base.
Providing a safe environment for staff and customers is a priority for the company, with appropriate health and safety procedures implements since becoming aware of coronavirus developments in China.
AuMake specialises in selling Australian and New Zealand products to Asian tour groups through retail outlets in Australasian tourist hubs.
The company will continue to assess the impact of the coronavirus as more information emerges and will update the public accordingly.
AuMake has ended the day 18.3 per cent in the red with shares trading for 9.4 cents apiece in a $38.23 million market cap.
