The Securities and Futures Commission (SFC) is seeking disqualification orders against three former executive directors of China Longevity Group Company Limited for their roles in financial misstatements and disclosure failures. The SFC’s investigation revealed the company materially overstated its cash and cash equivalents by approximately RMB198.9 million as of 31 December 2011 and RMB302.4 million as of 30 June 2012, representing 13.6% and 19.9% of net assets respectively. These overstatements caused the company’s 2011 and 2012 annual reports and 2012 interim report to contain material misrepresentations. The directors additionally failed to ensure timely disclosure of these overstatements and related audit irregularities discovered by the company’s auditors, compounding the initial misconduct.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR179
