Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 35

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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assets and the satisfaction of liabilities in the normal course of business.

The Company incurred net loss of $279,060 and had
net cash used in operating activities of $376,322 for the nine months ended September 30, 2025. As of September 30, 2025, the Company
had net current liability of $1,839,599 and an accumulated deficit of $1,980,446. These conditions raised substantial doubt about the
Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern will require the Company
to obtain additional financing to fund its operations. In assessing the going concern, the board of directors has considered:

    -
    The Company will obtain financial support from the related parties.

    -
    Since 2024, management has strategically focused on selling high-margin product, resulting in improved gross profit and operating cash flows. Management anticipates that this trend will continue to enhance overall profitability, positively impacting the Company’s financial health by generating sustainable operating cash flows and supporting future growth.

The 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