Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 109

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 109
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 or recall of our products, shipment delays, rejection of our
products, damage to our reputation, lost revenue, and increases in customer service and support costs, all of which could have a material
adverse effect on our business, financial condition, and results of operations.

We may not be able to adequately protect
our material intellectual property and other proprietary rights, or to defend successfully against intellectual property infringement
claims by third parties.

Our ability to compete effectively depends in
part upon our intellectual property rights. We are engaged in producing products that are unique to the “Jue Cheng” culture.
We rely on a combination of combination of trade secrets, know-how, trademarks and other contractual rights to establish and protect its
proprietary rights in its intellectual property. The use of contractual provisions, confidentiality procedures and agreements, and trademark,
unfair competition, trade secret and other laws to protect intellectual property rights and proprietary technology may not be adequate.
Litigation may be necessary to enforce our intellectual property rights and protect proprietary technology, or to defend against claims
by third parties that our conduct or our use of intellectual property infringes upon such third party's intellectual property rights.
Any intellectual property litigation or claims brought against us, whether or not meritorious, could result in substantial costs and diversion
of our resources, and there can be no assurances that favorable final outcomes will be obtained. The terms of any settlement or judgment
may require us to pay substantial amounts to the other party or cease exercising our rights in such intellectual property, including ceasing
the use of certain trademarks used by us to distinguish our services from those of others. In addition, we may be required to seek a license
to continue practices found to be in violation of a third party's rights, which may not be available on reasonable terms, or at all. Our
business, financial condition or results of operations could be adversely affected as a result. 

The growth of our
business may be adversely affected if we do not implement our growth strategies and initiatives successfully or if we are unable to manage
our growth or operations effectively.

We have expanded and are continuing to expand
our operations, which has placed, and will continue to place, significant demands on our management and our operational and financial
infrastructure. Additionally, our ability to grow in the future will depend on a number of factors, including the ability to develop and
expand new and existing client relationships, to continue to develop innovative products and services, to hire and train qualified personnel,
to expand and grow in existing and