SINGAPORE (Mar 19): Singapore Exchange Regulation (SGX RegCo) has suspended trading in the shares of e-commerce company YuuZoo Corporation with immediate effect.

This comes after the statutory auditors of YuuZoo today informed the company and SGX that they are "unable to obtain sufficient appropriate audit evidence" to provide an opinion as required in a notice of compliance (NOC) issued on Mar 5.

In the NOC, SGX had ordered YuuZoo to make specified disclosures by Mar 19 of the opinion of its statutory auditors on the veracity and reasonableness of two items in its consolidated financial statements.

These items were: other income of $8.0 million due to the purchase of assets related to the formation of YuuLog France for the financial year ended December 2017; and balance of assets available for sale of $54.2 million as at Dec 31, 2017, and corresponding revenue of $38.4 million from network development and franchise sales for FY2017. 

See: SGX hits YuuZoo with compliance notice to explain variance in numbers

On Mar 9, YuuZoo apologised for mistakes in its FY17 financial statements and enclosed an amended version in its response filing to SGX.

One mistake YuuZoo admitted to was the incorrect e-commerce revenue figure of $0.4 million stated in its FY17 financial statements released on Mar 1. "The reference to $0.4 million was a typographic error. The correct revenue number for this sector in 2017 is $3.9 million," the company said.

See: YuuZoo apologises for errors and typos in FY17 financial statements; files amended copy

"Pursuant to Listing Rule 1303(5), in the interest of maintaining a fair, orderly and transparent market, the exchange will suspend trading in the shares of the company with immediate effect," SGX RegCo says in a filing on Monday.

"The suspension will be lifted when the exchange is satisfied that the shares of the company can be traded on a fair, orderly and transparent basis," it adds.

See: YuuZoo addresses minority shareholders at SIAS dialogue in wake of weak results

Shares in YuuZoo closed at 3.8 cents on Monday before the suspension.