Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 8

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 8
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 China-based internet
giants. The Cybersecurity Review Measures (2021 version) was promulgated on December 28, 2021 and became effective on February 15, 2022.
These measures specify that any “online platform operators” controlling the personal information of more than one million
users which seek to list on a foreign stock exchange are subject to prior cybersecurity review. The Measures for Security Assessment for
Outbound Data Transfer, which took effect on September 1, 2022, mandate mandatory government security review by the CAC in advance of
certain cross-border data transfer activities. On September 24, 2024, the China’s State Council issued the Regulations on the Administration
of Network Data Security, which took effect on January 1, 2025, prescribing that the network data processors processing personal information
of over 10 million individuals shall fulfill certain requirements for processing important data and require network data processors to
take certain precautionary measures.

We believe that our 100% owned PRC subsidiary
Qiansui Media, which operates our business of selling ornament and adornment products, is not subject to the review or prior approval
of the CAC or the CSRC in connection with the Contribution transaction.

If the Chinese government were to impose new requirements
for approval from the PRC authorities to issue the common stock to investors outside of China or list on a foreign exchange, such action
could significantly limit or completely hinder Tancheng Group’s ability to offer or continue to offer securities to investors and
cause the value of such securities to significantly decline or become worthless.

To date, Tancheng Group and its PRC subsidiaries,
(1) are not required to obtain permissions from any PRC authorities to operate or issue the common stock to investors outside of China,
(2) are not subject to permission requirements from the CSRC, CAC or any other entity that is required to approve of the Company’s
PRC subsidiaries’ operations, and (3) have not received or were denied such permissions by any PRC authorities. Nevertheless, the
General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the
“Opinions on Strictly Cracking Down on Illegal Securities Activities According to Law,” or the Opinions, which were made available
to the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities, and
the need to strengthen the supervision over overseas listings