SINGAPORE (Mar 10): YuuZoo has apologised for the mistakes in its FY17 financial statements and enclosed an amended version in its response filing to the Singapore Exchange on Friday night.

In its queries, the SGX had noted there were a number of errors in the announcement and asked YuuZoo to make the relevant amendments and reproduce the revised announcement with the amendments duly marked up.

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 S$0.4 million was a typographic error. The correct revenue number for this sector in 2017 is S$3.9 million," says YuuZoo.

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As instructed, YuuZoo went on to explain why it had to suspend the bulk of its core payment business channel in its YuuPay subsidiary, which primarily transacted in the Binary Options and Forex Industry.

The suspension had led to a 93% decline in e-commerce revenue which then led to a 40% decline in group revenue to $62.2 million.

"This was due to the rise in poorly regulated merchants over the last two years in the Binary Options and Forex Industry, and the subsequent decision by the company to withdraw from a business space it found increasingly unethical," says YuuZoo.

The bourse regulator had also asked YuuZoo to explain the 34% shortfall between the expected revenue of more than $30 million and the actual revenue of $19.7 million from YuuLog France/YuuLog Europe for FY17 as well as and the improvement of the contribution of YuuLog France from a loss of $9.3 million for FY16 to a profit of $6.8 million in FY17.

YuuZoo said the discrepancies arose as the allocation methodology of segmented reporting in FY17 was different from the one used its most recent audit report FY16 and that it had made the respective revisions in its amended results.

YuuZoo was also asked to disclose the amount and circumstances leading to the writeoff of bad debts in FY17 which the group said had led to a decrease in net profits.

The group had reported that the aggregate amount of trade and other receivables reduced from $14.1 million as at Dec 31 2016 to $10.9 million as at Dec 31 2017.

In response, YuuZoo said a total $2.8 million in bad debts was written off in FY17 because of its failure to deliver mobile applications that had been ordered by clients within the stipulated time.

Shares in YuuZoo closed 0.3 cent higher at 4.2 cents on Friday.