Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 68

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 68
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(143)
  
    Net loss 
    $(279,060) 
    $(254,896) 
    $24,164 

Revenue

We generated $216,028 in revenue for the nine months
ended September 30, 2025 compared to $302,899 for the nine months ended September 30, 2024, representing an decrease in revenue of $86,871
or 28.7% compared to the nine months ended September 30, 2024. The decrease was mainly due to the decrease in the quantity of ornament
and adornment products sold during the nine months ended September 30, 2025. Since 2024, we have been experiencing intensified competition,
resulting in increased price sensitivity among our customers. We are redefining and adjusting our business strategy to gain a competitive
advantage in the market.

Cost of Revenue

Cost of revenue was $159,655 for the nine months ended
September 30, 2025 compared to $222,642 for the nine months ended September 30, 2024. Cost of revenue mainly consists of the cost of products
sold and labor 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