Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 23

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 23
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 convert the Company’s Renminbi into U.S. dollars for the purpose of
making payments for dividends on the common stock to our shareholders or for other business purposes, appreciation of the U.S. dollar
against the Renminbi would have a negative effect on the U.S. dollar amount.

Governmental control of currency conversion
may limit the Company’s ability to utilize the Company’s revenues effectively and affect the value of your investment.

The PRC government imposes controls on the convertibility
of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. The Company generates substantially
all of its revenues in Renminbi. Under the Company’s current corporate structure, we primarily rely on dividend payments from our
PRC subsidiaries to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of
current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions,
can be made in foreign currencies without prior approval of SAFE by complying with certain procedural requirements. Specifically, under
the existing exchange restrictions, without prior approval of SAFE, cash generated from the operations of our PRC subsidiaries in China
may be used to pay dividends to us. However, approval from or registration with appropriate government authorities is required, in principle,
where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. As a result, our PRC subsidiaries need to obtain SAFE approval to use cash generated from their operations to pay
off their respective debt in a currency other than Renminbi owed to entities outside of China, or to make other capital expenditure payments
outside of China in a currency other than Renminbi. The PRC government may at its discretion restrict access to foreign currencies for
current account transactions in the future. If the foreign exchange control system prevents our PRC subsidiaries from obtaining sufficient
foreign currency, we may not be able to pay dividends in US dollars to our shareholders, including holders of the common stock.

Certain PRC regulations may make it more
difficult for the Company to pursue growth through acquisitions.

Among other things, the Regulations on Mergers
and Acquisitions of Domestic Enterprises by Foreign Investors (“M&A Rules”) and Anti-Monopoly Law of the People’s
Republic of China promulgated by the Standing Committee of the NPC which became effective in 2008 and latest revised in 2022 (“Anti-Mon