Q1/16 Earnings Review: Yuuzoo – Strong Earnings, Poor Governance?

By 10% Per Annum • May 14, 2016

(As previously disclosed here, I am vested in Yuuzoo. Since the post was only written 3 weeks ago, I will not discuss much about my views on Yuuzoo's growth potential. Rather, this particular post seeks to discuss Yuuzoo's recent earnings and developments) Yuuzoo recently released their earnings for Q1 2016. The main points of their press statements are stated here:

Revenues grew 246% year-on-year to SGD 45.5 million, while EBIT grew 190% to SGD 12.8 million. E- commerce jumped 763% to SGD 28.6 million.

As a result of the very strong Q1 numbers, YuuZoo is giving a full year forecast of revenue of SGD 202.8 million and EBIT of SGD 48.1 million.

Interested investors may find the full official press release here and the complete official financial statement here. Regardless, the headlines look really good, but my question is whether the firm is really ......