Jewelry firm slammed for hurting investors

The Stock Exchange of Hong Kong condemned Hong Kong Resources (2882) and its eight directors for hurting investors' interests.

According to the bourse, the gold and jewelry retailer granted 12 loans totaling about HK$74.4 million from June 2018 to March 2019, and the company's auditors raised concerns about the expected credit loss assessment in terms of the amount and the delayed interest repayments.

But the company did not mention any of the concerns in its interim report ending in December 2018.

Months later, the company recorded a 100 percent impairment loss of around HK$86 million in its financial statements for the financial year of 2019 for all the loans and interest, as all borrowers defaulted on the loans.

The SEHK thinks the directors did not take responsibility, and condemned the former executive directors Xu Zhigang and Zhao Jianguo, and the other six directors, including Xu Xiaoping, a famous investor and educator in China.