Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 19

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 19
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 lack of adherence thereto and, in many cases, allegations of fraud.

On December 7, 2018, the SEC and the PCAOB issued
a joint statement highlighting the continued challenges faced by the U.S. regulators in their oversight of financial statement audits
of U.S.-listed companies with significant operations in HK SAR. On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William
D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies
based in or have substantial operations in emerging markets including China, reiterating past SEC and PCAOB statements on matters including
the difficulty associated with inspecting accounting firms and audit work papers in China and higher risks of fraud in emerging markets
and the difficulty of bringing and enforcing SEC, Department of Justice and other U.S. regulatory actions, including in instances of fraud,
in emerging markets generally.

On May 20, 2020, the U.S. Senate passed the HFCA
Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified
reports because the company uses a foreign auditor not subject to PCAOB inspection. In addition, if the PCAOB is unable to inspect the
company’s auditors for three consecutive years, the issuer’s securities are prohibited to trade on a national exchange. On
December 2, 2020, the U.S. House of Representatives approved the HFCA Act and it was signed into law on December 18, 2020. 

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On June 22, 2021, the U.S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act (the “AHFCA Act”), which, if enacted, would amend the HFCA Act and require the SEC
to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its audit work cannot be inspected when its auditor
is subject to PCAOB inspections for two consecutive years instead of three and, thus, would reduce the time before the common stock may
be prohibited from trading or delisted. On December 29, 2022, legislation entitled “Consolidated Appropriations Act, 2023”
was signed into law, which contained, among other things, an identical provision to the AHFCA Act and amended the HFCA Act by requiring
the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges