Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 357

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 4
Chunk 357
---
    Schedule of exchange rates 

    2024  
    2023 
  
    Year-end RMB exchange rate 
     7.30  
     7.10 
  
    Annual average RMB exchange rate 
     7.19  
     7.07 

No representation is made that the RMB amounts
could have been, or could be, converted into U.S. dollars at the rates used in translation.

     F-8 

(h) Foreign Currency Risk

The RMB is not a freely convertible currency.
The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the
RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and
political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and
cash equivalents are in RMB.

(i) Fair Value

Fair value is the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When
determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers
the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use
when valuing the asset or liability. Authoritative literature provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its
entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1

Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities
for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such
as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with
insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable
or can be derived principally from, or corroborated by observable market data.

 Level 3

Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant