Core Points - The meeting of the Standing Committee of the 14th People's Congress of Shaanxi Province reviewed the draft financial settlement for 2024 and the budget execution report for the first half of 2025 [1] - The meeting approved the financial settlement for the provincial level in 2024 as proposed by the Finance Committee and the Budget Work Committee of the Provincial People's Congress [1] Financial Overview - The report was presented by the Director of the Provincial Finance Department, Chang Yanling, and the Director of the Provincial Audit Department, Ding Deming, on behalf of the provincial government [1] - The meeting included an examination of the audit work report related to the execution of the provincial budget and other financial revenues and expenditures for the year 2024 [1]

Core Viewpoint - The audit report highlights significant issues related to fiscal management and compliance, revealing a need for enhanced oversight and corrective measures in the use of public funds [4][6][10]. Summary by Sections 1. Overview of the Audit Work Report - The audit work report is primarily focused on fiscal matters, aiming to maintain economic order, improve the efficiency of fiscal fund usage, and promote integrity in governance [4][15]. - The National Audit Office, under the leadership of the State Council, is responsible for conducting audits and reporting findings to the Premier [4][15]. 2. Key Findings from the Current Audit Work Report - The report covers eight main areas, including audit rectification, central fiscal management, departmental budget execution, and major risk assessments [6][17]. - As of March 2025, over 6,540 billion yuan has been rectified in response to issues identified in the 2023 audit, with 1,710 regulations improved and 4,120 individuals held accountable [6][21]. 3. Major Issues Identified - The report indicates that since May 2024, 430 significant violations have been discovered, involving over 1,400 individuals and 630 billion yuan, marking a notable increase in reported issues [8][21]. - Specific areas of concern include the management of special bonds, pension fund misappropriations, and the misuse of funds intended for social welfare programs [10][22][23]. 4. Detailed Observations - The audit revealed that 1,325.97 billion yuan in issues related to local government special bonds was identified, with ongoing risks of hidden debts [10][22]. - Pension funds totaling 4.14 trillion yuan were audited, uncovering 601.61 billion yuan in issues, including 414.08 billion yuan misappropriated for other expenditures [11][23]. - New findings include improper fund allocation practices, with 37.91 billion yuan reported as fraudulently claimed, and ongoing violations of central regulations [12][24]. 5. Recommendations - The report suggests enhancing macroeconomic policy coordination, deepening reforms in key economic areas, and effectively preventing major economic risks [18][21].

Group 1: Audit Report Overview - The audit report highlights significant disciplinary violations and audit rectification situations, with the number of cases, individuals, and amounts involved being at a median level over the past five years[6] - The report covers eight key areas, including audit rectification, central financial management, and major project audits[17] - As of March 2025, over 6,540 billion yuan has been rectified in response to issues identified in the 2023 audit, with 1,710 regulations improved and over 4,120 individuals held accountable[17] Group 2: Key Findings - Since May 2024, 430 major disciplinary violations have been discovered, involving over 1,400 individuals and exceeding 630 billion yuan, which is lower than the figures from 2020 and 2021[24] - The central department budget execution audit revealed that 42 departments received 619.96 billion yuan in fiscal allocations for 2024, with identified issues amounting to 28.15 billion yuan[7] - The audit of pension funds across 25 provinces found issues totaling 60.16 billion yuan, with 41.41 billion yuan being misappropriated or fraudulently claimed[28] Group 3: Specific Issues Identified - The audit uncovered 1,325.97 billion yuan in issues related to local government special bonds, highlighting risks associated with hidden debts[27] - Violations of the central eight regulations were noted, with expenditures amounting to 18.19 million yuan on extravagant activities[29] - The report identified ongoing issues with zero-based budgeting, including 53.09 million yuan allocated for outdated subsidies[29]

Group 1: Audit Report Overview - The audit report highlights significant disciplinary violations and audit rectification situations, with the number of cases, individuals, and amounts being in the middle range over the past five years[2] - The audit report is presented annually, with the work report released in June and the rectification report in December[3] - As of March 2025, over 6,540 billion yuan has been rectified in response to issues identified in the 2023 audit, with 1,710 regulations improved and 4,120 individuals held accountable[4] Group 2: Key Findings from the 2024 Audit Report - The central government budget execution audit involved 42 departments and 244 units, with a total budget allocation of 619.957 billion yuan for 2024, uncovering issues amounting to 28.146 billion yuan[4] - The audit identified 430 major disciplinary violations since May 2024, involving over 1,400 individuals and 63 billion yuan, which is lower than the amounts reported in 2020 and 2021[6] - Specific issues included 1,325.97 billion yuan related to local government bond management and risks, and 601.61 billion yuan in pension fund misappropriations across 25 provinces[19][20]

Core Viewpoint - ST New潮's stock will be suspended from trading starting May 6 due to the inability to disclose the audited 2024 annual report and the 2025 Q1 report within the legal deadline [1][2] Group 1: Suspension Details - The suspension is in accordance with the Shanghai Stock Exchange regulations, which state that if a company fails to disclose its annual report by April 30, trading will be suspended on the first trading day of May, with a maximum suspension period of two months [1] - If the company does not disclose the reports during the suspension period, it will face a risk warning (*ST) and could initiate delisting procedures if the reports are not completed within the following two months [1] Group 2: Reasons for Delay - ST New潮 attributed the delay to the tight timeline for the audit process, as the audit team was conducting on-site audits in the U.S. and faced challenges in collecting necessary materials, including confirmation letters that require significant time to gather [1] - The company is actively working to provide the required materials and is urging clients to complete the necessary confirmations to facilitate the audit process [1] Group 3: Impact on Acquisition - The ongoing tender offer by ST New潮 will not be affected by the stock suspension [2] - The company acknowledged that the change in accounting firms led to a tight timeline for the audit, making the delay in the annual report somewhat expected [2] Group 4: Accounting Firm Change - On March 20, ST New潮 announced the appointment of Lixin Certified Public Accountants as the new auditing firm for the 2024 annual report [2] - The previous auditing firm, Zhongrui Cheng, resigned due to an underestimation of the workload and their capacity to complete the audit on time [2]