YuuZoo to cut reported 2016 profit by 53% to S$16.3m after audit

YUUZOO Corp will report an audited 2016 net profit of about S$16.3 million, which is less than half of the S$34.6 million profit announced in February, the social commerce company announced late Thursday.

It will also revise its 2015 bottom line to a net loss of about S$2.9 million, compared to an earlier restated net profit of S$20.7 million.

YuuZoo said the changes are the result of adjustments that have been agreed upon with its auditor, RT. Specifically, YuuZoo said it will no longer value on a discounted cash flow basis the equity that it receives as a franchise fee from its franchisees. Instead, that equity will be valued based on YuuZoo's cost of developing franchise packages.

YuuZoo said it expects to hold its annual general meeting before June 15, 2017, and to send out its annual report before the end of May. The company had earlier sought and received an extension of time from the Singapore Exchange to hold its shareholders' meeting by May 30.