In May 2019, Yingtan Tuoxin Electromechanical built its first plant in Guixi, Jiangxi, a county-level city known as the “Copper Capital of the World”. Six years later, its Cayman holding company Aojie Co., Ltd. first secretly submitted DRS to the SEC on January 10, 2025. After multiple rounds of updates, it submitted a public prospectus on December 23, 2025, applying for listing on the NASDAQ under the code “AOJE”, but the number and price of issued shares have not yet been announced.
According to the prospectus, Aojie Co., Ltd. is a copper products company that spans the two major circuits of consumption and industry, but under a two-tier layout, its performance is unspeakably steady. For the 2024 and 2025 fiscal years (12 months ending May 31), Aojie's revenue was US$166.328 million and US$13.285 million, respectively, and net profit was US$2.4426 million and US$1,722,100, respectively.
At a time when revenue and profits are falling sharply, what kind of growth story will Aojie Co., Ltd. use to persuade NASDAQ investors to pay for it?
C-end products are the core of revenue, and weak demand disrupts the performance stage and puts pressure on
The growth path of Aojie Co., Ltd. is a typical example of the spillover from industrial manufacturing capacity to consumer brands. After the establishment of Yingtan Tuoxin Electromechanical in May 2019, the company first entered the B-side market with copper-based industrial components such as commutators and copper bars, and relied on the supply chain and CNC processing capabilities of the “World Copper Capital” in Guixi, Jiangxi to complete the accumulation of initial cash flow and customer resources.
Since then, Aojie Co., Ltd. has spilled copper processing and precision manufacturing capabilities to the home scene. The company has developed around compact eco-friendly furniture, formed a matrix of about 100 antibacterial cabinet products using “AOJEZOR” as its own brand, and built material end barriers using nano antibacterial sheets (shell powder+PVC/marine shell material route), completing the first transition from “industrial parts” to “functional homes”.
By April 2023, Aojie Co., Ltd. will access C-side traffic through online platforms such as Amazon and officially enter the e-commerce field. Since then, the company's antibacterial cabinets have long been at the forefront of bathroom storage categories in North America, Australia, etc., and wrought iron furniture has been launched simultaneously.
The revenue structure of Aojie Co., Ltd. in fiscal year 2025 has clearly confirmed the effectiveness of its transformation to consumer homes: antibacterial cabinets remained the core item with 59.8% of revenue, and wrought iron furniture became a new growth point for the furniture business with 7.3%, and consumer furniture contributed 67.1% of total revenue; in contrast, the revenue share of industrial products such as commutators and copper materials has dropped to 32.9%, which is a clear decline from when the company was founded as the absolute main business.
However, the decline in the revenue side of Aojie Co., Ltd. in fiscal year 2025 was mainly due to durable household goods in Europe and the US entering the inventory removal cycle. This led to weak demand in these core markets, which dragged down the performance of antibacterial cabinets and wrought iron furniture. During the reporting period, revenue from antibacterial cabinets was US$7.7927 million, down 26.4% year on year; revenue from wrought iron furniture was US$9491 million, down 50.6% year on year.
Although revenue from industrial commutators/copper materials increased slightly by 3.9% to US$4.286,700 during the reporting period, due to the relatively limited volume of this business, it was difficult to offset the significant decline in household product revenue. As a result, Aojie's total revenue for fiscal year 2025 fell 21.7% to US$13.285 million.
While total revenue fell by more than 20%, gross margin for fiscal year 2025 fell 5.31 percentage points to 19.65% due to changes in product structure (increase in revenue share of low-margin copper products, decline in high-margin wrought iron furniture revenue) and various factors such as rising copper prices, rigidity of third-party labor and contract fulfillment costs, and deepening platform promotion discounts.
On this basis, the reverse rise in total operating expenses further reduced profit release. In fiscal year 2025, sales expenses doubled from 410,000 to 780,000 due to pre-investment in B2C branding. This led to a total increase in total operating expenses from 1.49 million US dollars to 1.95 million US dollars, leading to a rapid increase in the cost ratio from 9% to 15%.
Under “triple pressure,” Aojie's profitability for fiscal year 2025 was naturally under pressure, but since the company confirmed other income of about 1.3 million US dollars (interest, exchange, etc.), which offset the contraction in operating side profit, the net profit of Aojie Co., Ltd. was US$1,722,100 during the reporting period, and the net interest rate fell only 1.46% to 13.22%, which was significantly less than the decline in gross margin.
Seen from this, the simultaneous decline in revenue and profit of Aojie Co., Ltd. in fiscal year 2025 is not falsification at the business model level, but rather a phased release of pressure from the channel-dependent cross-border home furnishing business during a period of decline in overseas demand. This is more reflected in short-term fluctuations, which does not yet constitute a long-term trend deterioration.
The three logics outline a blueprint for future growth, and branding development becomes the key to valuation expansion
From an industrial perspective, going overseas is not a small business; China has become the world's largest supply side for home furnishings. According to customs standards, in 2024 and 2025, China's exports of furniture and parts were about 483 billion yuan and 455.9 billion yuan respectively. Although there was a slight decline in scale, the basic market at the level of hundreds of billion dollars is still stable.
Meanwhile, China's household products are mainly exported to core destinations such as North America, Europe, the United Kingdom, Japan, and Australia. Among them, the US and Britain together account for about 60% to 70% of China's furniture exports, and the regional concentration is relatively high.
Although the Chinese home furnishing industry is large enough, the growth logic is being rewritten. It has moved from “OEM” in the early stages to the 3.0 stage of “brand+DTC+ localization”. The path taken by Anke Innovation and Europe Technology has already been shown. If we want to continue to grow on this track, we must open up the three dimensions of R&D, brand, and channels.
Based on this, Aojie Co., Ltd.'s future focus is not to simply expand the shipment volume of existing antibacterial cabinets, but to repackage the “material technology-production-channel brand” chain and use a capitalization window to complete the identity switch from channel supplier to consumer brand.
At the R&D level, the nano-antibacterial board developed by Aojie Co., Ltd. uses marine shell recycling as a route. It has replaced traditional bathroom furniture substrates, and has moisture-proof, mildew proof, antibacterial and low volatile properties. This set of capabilities is currently the most easily reused and most easily overlooked invisible asset; 20% of the listed capital raised is clearly invested in R&D, superimposed by Suzhou Wujiang Aojiazuo R&D entities and Shanghai Second Polytechnical University. The technology iteration will move from a “single product formula” to a “material platform”. In the future, it can be exported horizontally to the kitchen, children's room. Wait for the whole house to be compact, and no longer rely on a single bathroom to store popular items.
At the same time as material technology is being reused, the expansion of product categories across materials is also expected to become a new growth point for the company. In addition to antibacterial cabinets, Aojie's share of wrought iron furniture revenue has risen to 7.3%, proving the effectiveness of the company's ability to commercialize materials. The next step is to use the same supply chain as a “functional small-space home”: storage, furniture, bathroom, balcony and rental scenarios to simultaneously increase the customer unit price and SKU density to meet the diverse needs of customers.
In addition, B2C direct management and branding are another major highlight in the future development of Aojie Co., Ltd. Currently, the company's C-end products, such as antibacterial cabinets and wrought iron furniture, mainly rely on the “platform+distributor” channel, and do not control the dominant power. Traffic entry, user data, pricing power, evaluation systems, and after-sales service are all highly tied to the platform and distributor, and the business model is closer to “using platform traffic to sell branded products.”
In order to overcome this predicament and achieve B2C direct management and branding in the true sense of the word, Aojie Co., Ltd. used 45% of the fund-raising plan to expand B2C, while also investing 10% in brands and effects. The total investment was close to 60% of the capital raised.
If the share of B2C direct management is effectively increased, part of the gross profit on the channel side can be converted into brand gross profit, thereby promoting an increase in the company's gross margin level. This is also the first variable in whether a company's valuation can switch from “OEM” to a “consumer brand.”
From this perspective, although Aojie's performance is under phased pressure due to fluctuations in overseas demand, multi-dimensional growth logic such as technology commercialization, multi-category expansion, and direct branding still outlines a development blueprint with room for imagination. However, the degree of implementation of the above logic ultimately depends on the company's ability in strategy execution, organizational management, and market expansion, and has yet to be verified by the market.