Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 53

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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Operating Expenses

General and administrative expenses

By far the most significant component of our operating
expenses for both the six months ended June 30, 2025 and 2024 was general and administrative expenses in the amount of $236,866 and $227,093,
respectively. The increase of $9,773 or 4.3% was mainly due to our success in maintaining our cost structure.

 19 

Net Loss

We reported a net loss of $207,364 for the six
months ended June 30, 2025 compared to a net loss of $200,955 for the six months ended June 30, 2024. Although we operated at a loss,
we expect to see a positive trend in our future results.

Liquidity and Capital Resources

    June 30, 2025  
    December 31, 2024 
  
    Working capital: 

    Total current assets 
    $1,448,924  
    $1,479,137 
  
    Total current liabilities 
     (3,215,977) 
     (3,030,046)
  
    Working capital deficiency 
    $(1,767,053) 
    $(1,550,909)

Our principal sources of liquidity and capital
resources have been, and are expected to continue to be, cash flow from operations and cash advances from related parties. Our principal
uses of cash have been, and we expect will continue to be, for working capital to support a reasonable increase in our scale of operations.

Management has estimated our cash flow from future
operations and available support from related parties and has concluded that we have, or will have access to, sufficient financial resources
to meet our financial obligations as and when they fall due in the coming twelve months. There can be no assurances, however, that any
of the financial resources we may be contemplating as being available to us in the future will, in fact, be available to us on acceptable
terms, if at all. We believe there will be sufficient funds to run our operations for the next 12 months.

As of June 30, 2025, we had cash and cash equivalents
of $17,444. The following table provides detailed information about our net cash flows for the six months ended June 30, 2025 and 2024:

    For the six months ended June 30, 

    2025  
    2024 
  
    Cash flows