SGX wants YuuZoo to explain FY2017 figures

Regulator seeks amendments to 'errors', asks firm to account for certain financial data

YuuZoo chairman Thomas Zilliacus will be at a dialogue to address issues raised by observers.
YuuZoo chairman Thomas Zilliacus will be at a dialogue to address issues raised by observers.

The bourse regulator has demanded that online media company YuuZoo Corporation explain some of the figures in its full-year results announcement and correct errors.

Singapore Exchange (SGX) notices were issued yesterday afternoon - just two days before the company is to hold a shareholder dialogue with its chairman and senior management.

The SGX pointed to "a number of errors" in YuuZoo's unaudited results announcement from March 1 and asked for amendments to be made and marked. It also asked the company to account for certain financial figures, such as a year-on-year decline in group revenue, for the year to Dec 31, 2017.

The notice of compliance flagged an "other income" amount of $8 million in the fourth quarter, as well as an increase of assets available for sale to $54.2 million and a corresponding sum of $38.4 million recognised in revenue.

YuuZoo must engage its statutory auditors to provide an opinion on the "veracity and reasonableness" of those items. The opinion must be released by March 19.

"Failure to comply... shall be deemed to be a contravention of the listing rules," said the notice.

As part of the SGX queries, YuuZoo will have to clarify the circumstances leading to "the suspension of certain payment-related services" last year, which contributed to a $51.4 million fall in turnover.

It must explain the shortfall between YuuLog Europe's actual revenue of $19.7 million last year and expected revenue of more than $30 million, as well as the reversal of fortunes at YuuLog France. This unit reported that full-year revenue rose from $19,000 in 2016 to $19.7 million last year, while a loss of $9.3 million turned around into a profit of $6.8 million.

The company was also asked to explain the write-off of bad debts during the year.

YuuZoo, which listed on the mainboard in 2014 after a reverse takeover of W Corporation, has until Friday to respond to the queries.

The company has scheduled a dialogue tomorrow involving YuuZoo chairman Thomas Zilliacus, who was the Asia head of Finnish technology company Nokia, to be moderated by Securities Investors Association (Singapore) chief David Gerald. It was organised after questions were raised by observers, such as corporate governance hawk Mak Yuen Teen, over issues such as disclosure on the company's financial performance.

YuuZoo shares closed down 8.7 per cent at 4.2 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on March 06, 2018, with the headline 'SGX wants YuuZoo to explain FY2017 figures'. Subscribe