US IPO Analysis | Spanning Both Consumer and Industrial Sectors, Three Key Logics Outline the Growth Blueprint of AOJE (AOJE.US)

In May 2019, Yingtan Tuoxin Electromechanical built its first factory in Guixi, Jiangxi, a county-level city known as the "World Copper Capital." Six years later, its Cayman holding company AOJE submitted a DRS to the SEC confidentially for the first time on January 10, 2025. After multiple rounds of updates, it filed a public version of its prospectus on December 23, 2025, applying to list on Nasdaq under the ticker "AOJE," though the number of shares offered and the price have not yet been disclosed. According to the prospectus, AOJE is a copper products company spanning both consumer and industrial sectors, but despite this dual-line layout, its performance can hardly be called stable. In fiscal years 2024 and 2025 (12 months ended May 31), AOJE's revenue was US$16.6328 million and US$13.0285 million, respectively, with net profit of US$2.4426 million and US$1.7221 million, respectively. At a time when both revenue and profit are declining, what kind of growth story will AOJE use to convince Nasdaq investors to buy in? C-end Products Become Revenue Core; Weak Demand Disrupts Performance, Bringing Near-Term Pressure AOJE's growth path is a typical example of industrial manufacturing capability spilling over into consumer brands. After establishing Yingtan Tuoxin Electromechanical in May 2019, the company first entered the B-end market with copper-based industrial components such as commutators and copper rods, relying on the supply chain and CNC processing capabilities of Guixi, Jiangxithe "World Copper Capital"to accumulate initial cash flow and customer resources. Thereafter, AOJE extended its copper material processing and precision manufacturing capabilities into home scenarios. The company conducted R&D around compact eco-friendly furniture, formed a matrix of approximately 100 antibacterial cabinet products under its own brand "AOJEZOR," and established material-side barriers with nano antibacterial panels (shell powder + PVC/marine shell material route), completing its first leap from "industrial components" to "functional home furnishings." By April 2023, AOJE had accessed C-end traffic through online platforms such as Amazon, formally entering the e-commerce sector. Since then, the company's antibacterial cabinets have long ranked among the top in the bathroom storage category in markets such as North America and Australia, while iron furniture also began to scale. AOJE's revenue structure in fiscal year 2025 clearly confirms the effectiveness of its transition toward consumer home furnishings: antibacterial cabinets firmly held the core single-product position with 59.8% of revenue, iron furniture became a new growth point for the furniture business with a 7.3% share, and consumer furniture together contributed 67.1% of revenue. In contrast, revenue from industrial-end products such as commutators and copper materials had fallen to 32.9%, a marked decline from its position as the absolute main business at the company's founding. AOJE's revenue decline in fiscal year 2025 was mainly because European and American home durable goods entered a destocking cycle, which led to weak demand in these core markets and dragged down the performance of antibacterial cabinets and iron furniture. During the reporting period, revenue from antibacterial cabinets was US$7.7927 million, down 26.4% year over year; revenue from iron furniture was US$949,100, down 50.6% year over year. Although revenue from industrial-end commutators/copper materials edged up 3.9% to US$4.2867 million during the reporting period, the relatively limited scale of this business made it difficult to offset the significant decline in home product revenue, causing AOJE's total revenue in fiscal year 2025 to fall 21.7% to US$13.0285 million. Alongside a decline in total revenue of more than 20%, due to changes in product mix (a higher revenue share from low-margin copper products and lower revenue from high-margin iron furniture), rising copper prices, rigid third-party labor and fulfillment costs, and deeper platform promotional discounts, among other factors, gross margin in fiscal year 2025 fell 5.31 percentage points to 19.65%. On this basis, a reverse increase in total operating expenses further compressed profit release. In fiscal year 2025, due to upfront investment in B2C branding, selling expenses doubled from US$410,000 to US$780,000, driving total operating expenses up from US$1.49 million to US$1.95 million and rapidly raising the expense ratio from 9% to 15%. Under these "triple pressures," AOJE's profitability in fiscal year 2025 naturally came under pressure, but because the company recognized approximately US$1.3 million in other income (interest, foreign exchange, etc.), which offset the contraction in operating profit, AOJE's net profit during the reporting period was US$1.7221 million, with net margin declining only 1.46% to 13.22%, a much smaller decline than that of gross margin. From this perspective, the simultaneous decline in AOJE's revenue and profit in fiscal year 2025 is not a falsification of its business model, but rather a release of pressure in a channel-dependent cross-border home business during a downturn in overseas demand, reflecting more of a short-term fluctuation and not yet constituting a long-term trend of deterioration. Three Key Logics Outline the Future Growth Blueprint; Brand Development Becomes Key to Valuation Expansion From an industry perspective, home furnishing going global is no small business, and China has become the world's largest supply side for home furnishings. Under customs data, China's exports of furniture and parts in 2024 and 2025 were approximately RMB483 billion and RMB455.9 billion, respectively. Although the scale declined slightly, the fundamental base at the hundreds-of-billions level remains solid. China's home furnishing products are mainly exported to core destinations such as North America, Europe, the UK, Japan, and Australia. Among them, the US and UK together account for about 60% to 70% of China's furniture exports, indicating relatively high regional concentration. Although the scale of China's home furnishing going-global industry is large enough, the growth logic is being rewritten. It has moved from the earlier "contract manufacturing + OEM" stage into the "brand + DTC + localization" 3.0 stage. The paths taken by Anker Innovations Technology and Ziel Home Furnishing Technology have already shown that to continue growing in this track, a company must achieve integration across the three dimensions of R&D, brand, and channels. On this basis, AOJE's future appeal does not lie in simply scaling up shipments of its existing antibacterial cabinets, but in repackaging the chain of "material technologyproductizationchannel brand" and using the capitalization window to complete its identity shift from a channel supplier to a consumer brand. At the R&D level, AOJE's self-developed nano antibacterial panels, which use recycled marine shells, have replaced traditional bathroom furniture substrates and feature moisture resistance, mold resistance, antibacterial properties, and low emissions. This capability is currently the most easily reused and most easily overlooked hidden asset. Of the IPO proceeds, 20% is explicitly allocated to R&D, and with the establishment of the Suzhou Wujiang AOJEZOR R&D entity and a joint laboratory with Shanghai Polytechnic University, technological iteration will move from "single-product formulations" to a "material platform," which can in the future be horizontally exported to whole-home compact scenarios such as kitchens, entryways, and children's rooms, rather than relying on a single bathroom storage hit product. While material technology is being reused, cross-material product category expansion is also expected to become a new growth point for the company. In addition to antibacterial cabinets, the revenue share of AOJE's iron furniture has risen to 7.3%, proving the effectiveness of the company's cross-material productization capability. The next more natural extension is to use the same supply chain to make "functional small-space home furnishings": storage, shelving, bathroom, balcony, and rental scenarios, thickening both average order value and SKU density to meet customers' diversified needs. In addition, B2C direct sales and branding are another major highlight of AOJE's future development. At present, the company's C-end products such as antibacterial cabinets and iron furniture mainly rely on "platform + distributor" channels, and the company does not hold dominant control. Traffic entry points, user data, pricing power, review systems, and fulfillment/after-sales are all highly tied to platforms and distributors, making the business model closer to "selling white-label products using platform traffic." To escape this dilemma and achieve true B2C direct sales and branding, AOJE will allocate 45% of its fundraising plan to expanding B2C while also allocating 10% to brand and marketing investment, for total investment approaching 60% of the proceeds. If the proportion of B2C direct sales is effectively increased, part of the channel-side gross margin can be converted into brand gross margin, thereby driving an increase in the company's gross margin level. This is also the first variable determining whether the company's valuation can shift from "manufacturing contractor" to "consumer brand." From this perspective, although AOJE's performance is under near-term pressure amid fluctuations in overseas demand, multi-dimensional growth logic such as technology productization, multi-category expansion, and direct-sales branding still outlines a development blueprint with imaginative potential. However, the extent to which this logic is realized ultimately depends on the company's capabilities in strategic execution, organizational management, and market expansion, and remains to be verified by the market.