Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 25

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 costs. The decrease in cost of revenue by $62,987 or 28.3% was in line with the decrease in revenue.

Gross profit

Gross profit for the nine months ended September 30,
2025 was $56,373 compared with $80,257 for the nine months ended September 30, 2024. As a percentage of revenue, our gross margin slightly
decreased from a gross profit of 26.5% for the nine months ended September 30, 2024 to 26.1% for the nine months ended September 30, 2025,
primarily because of the decrease in the cost of revenue was less than the decrease in revenue.

 20 

Operating Expenses

General and administrative expenses

By far the most significant component of our operating
expenses for both the nine months ended September 30, 2025 and 2024 was general and administrative expenses in the amount of $315,111
and $314,651, respectively. The increase of $460 or 0.1% was mainly due to our success in maintaining our cost structure.

Net Loss

We reported a net loss of $279,060 for the nine months
ended September 30, 2025 compared to $254,896 for the nine months ended September 30, 2024. Although we operated at a loss, we expect
to see a positive trend in our future results.

Liquidity and Capital Resources

    September 30, 2025  
    December 31, 2024 
  
    Working capital: 

    Total current assets 
    $1,443,490  
    $1,479,137 
  
    Total current liabilities 
     (3,283,089) 
     (3,030,046)
  
    Working capital deficiency 
    $(1,839,599) 
    $(1,550,909)

Our principal sources of liquidity and capital resources
have been, and are expected to continue to be, cash flow from operations and cash advances from related parties. Our principal uses of
cash have been, and we expect will continue to be, for working capital to support a reasonable increase in our scale of operations.

Management has estimated our cash flow from future
operations and available support from related parties and has concluded that we have, or will have access to, sufficient financial resources
to meet our financial obligations as and when they fall due in the coming twelve months. There can be