Core Viewpoint - The company, Dingjide Petrochemical Co., Ltd., has responded to the Shanghai Stock Exchange's inquiry regarding its 2024 annual report, particularly addressing issues related to non-operating fund occupation and audit opinions [1][2]. Financial Disclosure and Fund Occupation - The company reported a total of 305 million yuan (approximately 30.5 million) was transferred to nine trading companies for material procurement, with 201 million yuan (approximately 20.1 million) ultimately used as capital contributions to its subsidiary, leading to fund occupation [1][2]. - As of the report date, all occupied funds and interest have been fully repaid [1][2]. Internal Control Issues - The main responsibility for the fund occupation lies with the company's actual controller and chairman, Zhang Zaiming, along with other key personnel [3][4]. - The company identified weaknesses in its internal control systems, particularly in compliance and risk awareness, which contributed to the fund occupation [3][4]. Remedial Actions - The company has implemented several corrective measures, including the full repayment of the occupied funds and interest, totaling 20.1 million yuan and 6.7 million yuan (approximately 670,200) in interest, respectively [4][5]. - Internal disciplinary actions have been taken against responsible individuals, including issuing internal criticism and mandating compliance training for management and relevant personnel [5][6]. Future Safeguards - The company has strengthened its internal control measures, particularly in fund management and procurement processes, to prevent future occurrences of fund occupation [6][10]. - Enhanced training on compliance and governance for all levels of management has been initiated to ensure adherence to regulations and internal policies [5][6]. Related Transactions - The company disclosed details of its transactions with trading companies, including procurement amounts and payment statuses, indicating a total procurement of 1,042.31 million yuan (approximately 104.2 million) and payments of 1,483.18 million yuan (approximately 148.3 million) [7][9]. - The company has also clarified that the historical transactions with the trading companies did not initially classify them as related parties due to the absence of overlapping management and ownership structures [11][12].