Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 24

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 24
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opoly
Law”), established additional procedures and requirements that could make merger and acquisition activities by non-Chinese investors
more time-consuming and complex. Such regulation requires, among other things, that State Administration for Market Regulation (SAMR)
be notified in advance of any change-of-control transaction in which a non-Chinese investor acquires control of a PRC domestic enterprise
or a foreign company with substantial PRC operations, if certain thresholds under the Provisions of the State Council on the Standard
for Declaration of Concentration of Business Operators, issued by the State Council in 2008, are triggered. Moreover, the Anti-Monopoly
Law of China requires that transactions which involve the national security, the examination on the national security shall also be conducted
according to the relevant provisions. In addition, PRC Measures for the Security Review of Foreign Investment which became effective in
January 2021 require acquisitions by non-Chinese investors of PRC companies engaged in military-related or certain other industries that
are crucial to national security be subject to security review before consummation of any such acquisition. The Company may pursue potential
strategic acquisitions that are complementary to the Company’s business and operations.

Complying with the requirements of these regulations
to complete such transactions could be time-consuming, and any required approval processes, including obtaining approval or clearance
from the MOFCOM, may delay or inhibit the Company’s ability to complete such transactions, which could affect the Company’s
ability to expand the Company’s business or maintain the Company’s market share.

 15 

PRC regulations relating to the establishment
of offshore special purpose companies by PRC residents may subject our PRC resident beneficial owners or our PRC subsidiaries to liability
or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our PRC subsidiaries’ ability to increase their
registered capital or distribute profits to us, or may otherwise adversely affect us.

In July 2014, SAFE promulgated the Circular on
Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment
Through Special Purpose Vehicles, or SAFE Circular 37, to replace the Notice on Relevant Issues Concerning Foreign Exchange Administration
for Domestic Residents’ Financing and Roundtrip Investment Through Offshore Special Purpose Vehicles, or SAFE Circular 75, which
ceased to be effective upon the promulgation of SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and
PRC corporate entities) to register with SAFE