Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 233

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1C
Chunk 233
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    (a)
    Amounts due to Yu Yang represent payments made to vendors on behalf of the Company for operational purposes. During the years ended December 31, 2024 and 2023, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at year-end exchange rates, Yu Yang had paid the operation and administration expenses on behalf of the Company in an aggregate amount of $162,970 and $258,311, respectively

    (b)
    Amounts due to Jiaocheng Xinmu Trade Co.,
    Ltd represent advances made to the Company for operational purposes. From time to time during the year ended December 31, 2023,
    apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at year-end exchange rates,
    Jiaocheng Xinmu made advance to the Company amounting to a total of $1,035,090
    and the Company had repaid $273,077
    to Jiaocheng Xinmu. During the year ended December 31, 2024, there was no
    advance or repayment made between the Company and Jiaocheng Xinmu. On June 30, 2024, the Company, Shanxi Xiliu and Jiaocheng Xinmu
    made the Netting Arrangement to offset the related party receivable and payable balances. The amount due to Jiaocheng Xinmu
    was reduced to $2,346,889
    after the Netting Arrangement.

    (c)
    Amounts due to Taiyuan Tuohang Logistics Co., Ltd represent payments made on behalf of the Company for operational purposes.

Related party transactions:

During the years ended December 31, 2024 and 2023,
there were advances, payments and settlements made between the related parties and the Company as described above. In addition, during
the year ended December 31, 2024, the Company sold products to All Weather (Hainan) Network Sports Co., Ltd in aggregate amounts of $334,254.

     F-13 

    8.
    EQUITY

Authorized Shares

As of December 31, 2024 and 2023, the Company
has 75,000,000 authorized ordinary shares, par value $0.001 per share.

Ordinary Shares

As of December 31, 2024 and 2023, the Company’s
outstanding