Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 6

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 board of directors believes the Company has adequate
financial resources to continue in operational existence for at least 12 months from the date of the release of these condensed consolidated
financial statements. Accordingly, the going concern basis of accounting continues to be used in preparing the condensed consolidated
financial statements for the nine months ended September 30, 2025.

     7 

(b) Economic and Political Risks

The Company’s operations are conducted in the
PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic
and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject
to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include
risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s
results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government policies
with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

(c) Use of Estimates

The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related
disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying
notes. Significant accounting estimates reflected in the Company’s condensed consolidated financial statements include economic
lives and impairment of property, plant and equipment and allowance for doubtful accounts. Actual results could differ from those estimates
and such differences could affect the results of operations reported in future periods.

(d) Cash and Cash Equivalents

The Company considers all highly liquid investments
purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand
and cash deposited in bank accounts in mainland China at September 30, 2025 and December 31, 2024. Cash balance in bank accounts in mainland
China are insured by the People’s Bank of China Financial Stability Department (“FSD”) where there is a RMB500,000 deposit
insurance limit for a legal entity’s aggregated balance at each bank. As a result, the amounts not covered by FSD were $nil and
$25,931 as of September 30, 2025 and December 31