Regulatory Actions By SGX::Queries by SGX on the Company's full year results announcement released on 1 March 2018

Issuer & Securities

Issuer/ Manager
YUUZOO CORPORATION LIMITED
Securities
YUUZOO CORPORATION LIMITED - BMG9884X1020 - AFC
Stapled Security
No

Announcement Details

Announcement Title
Regulatory Actions By SGX
Date &Time of Broadcast
05-Mar-2018 12:15:19
Status
New
Announcement Sub Title
Queries by SGX on the Company's full year results announcement released on 1 March 2018
Announcement Reference
SG180305OTHRFUP9
Submitted By (Co./ Ind. Name)
Listing Compliance
Designation
Singapore Exchange Regulation
Description (Please provide a detailed description of the event in the box below)
We refer to the announcement of full year results for the financial year ended 31 December 2017 released by the Company on 1 March 2018. Please provide further information on the following in an announcement to be released via SGXNet by 9 March 2018. In your announcement, please disclose our queries and your responses to enable investors to understand the financial results of the Company.

1) Group revenue declined 40% from S$103.2 million in FY2016 to S$62.2 million in FY2017. This was attributable primarily to the 93% decline in e-commerce revenue from S$51.8 million to S$0.4 million due to the suspension of certain payment related services during the year. Please clarify the circumstances leading to the suspension of the payment related services.

2) Under segmental breakdown, unallocated revenue increased from S$19,000 in FY2016 to S$19.7 million in FY2017 due to consolidation of YuuLog France. The Company previously announced on 3 September 2017 that the business of YuuLog Europe was expected to generate more than S$30 million in revenue in 2017.

(a) Explain the reasons for the 34% shortfall between the expected revenue of more than S$30 million and the actual revenue of S$19.7 million from YuuLog France / YuuLog Europe for FY2017.

(b) Explain the increase in revenue of YuuLog France from S$19,000 in FY2016 to S$19.7 million in FY2017, and the improvement of the contribution of YuuLog France from a loss of S$9.3 million for FY2016 to a profit of S$6.8 million in FY2017.

3) Other income increased from S$159,000 in 4Q2016 to S$8.0 million in 4Q2017 due to the purchase of assets related to the formation of YuuLog France. Explain the nature of and the basis used in arriving at this other income amount of S$8.0 million.

4) The aggregate amount of trade and other receivables reduced from S$14.1 million as at 31 December 2016 to S$10.9 million as at 31 December 2017. It is stated in section 8 of the announcement that the decrease in net profits of the Group was due to impairment of assets available for sale and bad debts written off. Disclose the amount of and circumstances leading to the write-off of bad debts during the year.

5) There are a number of errors in the announcement. Please make the relevant amendments and reproduce the revised announcement with the amendments duly marked up.