Shandong Xinchao Energy faces delisting risk after adverse audit

Shandong Xinchao Energy Corporation [SSE:600777] faces significant uncertainty after its auditor, BDO China Shu Lun Pan Certified Public Accountants LLP, issued a "disclaimer of opinion" on its 2024 financial statements. The disclaimer was prompted by several factors, including insufficient documentation of oil and gas assets, employee compensation, and related party transactions involving the firm's U.S. operations, as well as revenue recognition issues. These issues prevented the auditor from obtaining sufficient appropriate audit evidence.