Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 5

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 was established on June 14, 2017 in the PRC. Qiansui Consulting acquired Qiansui Media on December
28, 2022. Qiansui HK and Qiansui Consulting are intermediary holding companies. Qiansui International conducts its operations through
Qiansui Media.

The Company operates through its wholly-owned
PRC subsidiary Qiansui Media and the principal activity is the sale of self-designed ornament and adornment products in the PRC. 

    2.
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation and Going Concern

The accompanying condensed consolidated financial
statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the
U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S.
(“US GAAP”).

The accompanying condensed consolidated financial
statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business.

The Company incurred net loss of $207,364 and
had net cash used in operating activities of $276,693 for the six months ended June 30, 2025. As of June 30, 2025, the Company had net
current liability of $1,767,053 and an accumulated deficit of $1,908,750. These conditions raised substantial doubt about the Company’s
ability to continue as a going concern. The Company’s ability to continue as a going concern will require the Company to obtain
additional financing to fund its operations. In assessing the going concern, the board of directors has considered:

    -
    The Company will obtain financial support from the related parties.

    -
    Since 2024, management has strategically focused on selling high-margin product, resulting in improved gross profit and operating cash flows. Management anticipates that this trend will continue to enhance overall profitability, positively impacting the Company’s financial health by generating sustainable operating cash flows and supporting future growth.

The board of directors believes the Company has
adequate financial resources to continue in operational existence for at least 12 months from the date of the release of these condensed
consolidated financial statements. Accordingly, the going concern basis of accounting continues to be used in preparing the condensed
consolidated financial statements for the six months ended June 30, 2025.

     7 

(b) Economic and Political