YuuZoo hit with SGX notice of compliance and queries over unaudited FY2017 results

YuuZoo has scheduled a dialogue session on March 7, involving its founder, chairman and CEO Thomas Zilliacus.
YuuZoo has scheduled a dialogue session on March 7, involving its founder, chairman and CEO Thomas Zilliacus.PHOTO: SGX

SINGAPORE - Online media company YuuZoo Corporation has been slapped with both a notice of compliance and queries from the bourse operator over its latest full-year results announcement.

The notices came on Monday afternoon (March 5) - just two days before the company is to hold a shareholder dialogue with its chairman and senior management.

Pointing to "a number of errors" in YuuZoo's unaudited results announcement from March 1, the Singapore Exchange (SGX) asked for amendments to be made and marked.

The SGX 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 S$8 million in the fourth quarter, as well as an increase of assets available for sale to S$54.2 million and a corresponding sum of S$38.4 million recognised in revenue.

YuuZoo is required to engage its statutory auditors to provide an opinion on the "veracity and reasonableness" of those items, and must release the auditors' opinion publicly by March 19."Failure to comply with the requirements imposed by the Exchange shall be deemed to be a contravention of the listing rules," said the notice, which was signed by June Sim, head of listing compliance.

YuuZoo became listed on the mainboard in 2014 after a reverse takeover of W Corporation.

As part of the SGX queries, YuuZoo will have to clarify the circumstances leading to "the suspension of certain payment-related services" in FY2017, which contributed to a S$51.4 million fall in turnover.

It must explain the shortfall between YuuLog Europe's actual FY2017 revenue of S$19.7 million and expected revenue of more than S$30 million, as well as the reversal of fortunes at YuuLog France, which saw reported full-year revenue swell from S$19,000 to S$19.7 million and a turnaround from a S$9.3 million loss to a S$6.8 million recorded profit.

The company was also asked to explain the nature of and basis used in arriving at the fourth-quarter "other income" amount, and to disclose the amount of and circumstances leading to the write-off of bad debts during the year.

YuuZoo has until Friday (March 9) to respond to the queries.

The company has scheduled a dialogue session on Wednesday afternoon (March 7) involving YuuZoo chairman Thomas Zilliacus, the former Asia head of Finnish technology company Nokia, to be moderated by Securities Investors Association (Singapore) chief David Gerald.

The session was organised after questions from observers such as corporate governance hawk Mak Yuen Teen over issues such as disclosure on the company's financial performance.

YuuZoo shares were trading down 0.1 Singapore cent, or 2.2 per cent, at 4.5 Singapore cents as of 1pm.