On 08 Jul 2024, the Stock Exchange of Hong Kong Limited criticized Wisdom Wealth Resources Investment Holding Group Limited and 10 directors and censured 2 independent non-executive directors and further directed them to attend training. In approving the 2018 interim results, the directors had relied on a valuation. However, they did not take sufficient steps to ensure that their reliance on the valuation was reasonable, and accordingly they failed to properly discharge their duties. They had no expertise in the valuation of land, but did not take any steps to make enquiries with the valuer about the substantial increase, and did not consider seeking a second opinion or other professional advice. As regards the value of the land and/or the valuation methodology, the disclosure in the 2018 interim results was not accurate and complete in all material respects.
Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240708news?sc_lang=en