You are here
YuuZoo completes delayed audit, cuts reported 2016 profit by 59%
YuuZoo Corp is cutting its reported 2016 net profit by 59 per cent and posting a loss for 2015 after the delayed completion of its annual audit, according to its annual report.
The social commerce company, however, has received an opinion from auditor RT that the audited numbers are properly drawn up, true and fair. YuuZoo's previous auditor, Moore Stephens, had declined to express an audit opinion over concerns about the company's valuation of its stakes in its franchisees and the recoverability of its trade receivables.
YuuZoo is now posting a net profit of S$14 million for the 12 months ended December 2016, down from its earlier report of a S$34.6 million profit.
The audited results also resulted in a S$5 million net loss in 2015. YuuZoo had reported a restated net profit of S$15.9 million for that year in its latest unaudited financial statements.
The bulk of the variations reflected a more conservative treatment of the equity stakes that YuuZoo has received from franchisees and debtors.
The audited 2016 results show an increase in amortisation of intangible assets, to S$16.8 million from S$6.4 million; and an increase in other expenses, to S$15.9 million from S$4.1 million, from its previously reported numbers.
YuuZoo said that it had fully impaired an available-for-sale investment in China-based TV media group RS Media and Entertainment Group Holding, which had been valued at S$4.7 million, in the absence of verifiable information that the investment could be recovered. It also took a S$7.5 million impairment loss on its investment in and receivables from gaming company Infocomm Asia Holdings, and fully impaired S$2.3 on intangible assets held in relation to Emerging Markets Telecommunication Services Ltd (Nigeria), also known as Etisalat.
YuuZoo shares gained 10.7 per cent, or 0.8 Singapore cent, to trade at 8.3 Singapore cents on Wednesday after the annual report was released.