Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 111

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 111
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 revenues, profits or market share could be harmed if they are unable
to compete effectively.

We are developing tourism
projects which will compete with other themes, cultural avenues and with other types of recreational facilities. The principal
competitive factors in the recreational industry include location, scale, and the variety and perceived quality of the attractions. The
recreational industry is also subject to factors that affect the tourist industries generally, such as general economic conditions, travel
restrictions, and changes in guest spending habits. Certain competitors of the operating entities may have substantially greater financial
resources, may be able to adapt more quickly to changing guest preferences, may devote greater resources, and may attract a greater number
of guests than us. As a result, our operating subsidiary may not be able to compete successfully against such competitors. If it is unable
to compete effectively, our business our financial condition or results of operations may be adversely affected.

Declines in discretionary
guest spending and guest confidence, or changes in guest tastes and preferences, could affect the profitability of the recreational business.

We are developing tourism projects whose success
depends to a significant extent on (i) their ability to provide quality recreational services, (ii) their ability to satisfy
changing guest preferences, and (iii) the availability of discretionary guest spending. We cannot guarantee that, once launched,
such projects are unable to meet the changing preferences of the markets that they serve or achieve sufficient guest acceptance. In addition,
severe economic downturns coupled with high volatility and uncertainty as to the future economic landscape could have an adverse effect
on guests’ discretionary income and guest confidence. If the projects are unable to meet the changing guest demands, or if discretionary
guest spending decreases, the projects could fail and our financial condition and results of operations could be materially and adversely
affected.

 21 

Risks Related to The
Market for Our Common Stock

Our common stock is quoted on the OTC market, which may have
an unfavorable impact on our stock price and liquidity. 

Our common stock is quoted on the OTC market.
The OTC market is a significantly more limited market than the New York Stock Exchange or NASDAQ. The quotation of our shares on the OTC
market may result in a less liquid market available for existing and potential stockholders to trade shares of our common stock, could
depress the trading price of our common stock and could have a long-term adverse impact on our ability to raise capital in the future.
We cannot assure you