Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 54

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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: 

    Net cash used in operating activities 
    $(276,693) 
    $(537,784)
  
    Net cash provided by financing activities 
     192,617  
     156,647 
  
    Effect of exchange rate changes on cash and cash equivalents 
     867  
     (6,490)
  
    Net decrease in cash and cash equivalents 
     (83,209) 
     (387,627)
  
    Cash and cash equivalents at the beginning of the year 
     100,653  
     412,154 
  
    Cash and cash equivalents at the end of the period 
    $17,444  
    $24,527 

Operating Activities

Net cash used in operating activities was $(276,693)
for the six months ended June 30, 2025. The difference between our net loss of $(207,364) and net cash outflows from operating activities
was due to the adjustment of non-cash depreciation of a motor vehicle in the amount of $13,260 and the cash used in operating assets and
liabilities in an aggregate amount of $(82,589).

The cash used in operating assets and liabilities
was mainly attributable to (i) an increase in inventories of $(32,178) due to more purchase was made during the first half of year 2025
to maintain sufficient inventories level for future sales and (ii) a decrease in accounts payables of $(61,663) due to our timely payment
to settle our vendors’ balance upon the receipt of inventories.

Financing Activities

Net cash generated from financing activities was
$192,617 for the six months ended June 30, 2025, which was attributable to the funds from related parties to support our business operations.

 20 

Inflation

Inflation and changing prices have not had a material
effect on our business, and we do not expect that inflation or changing prices will materially affect our business in the foreseeable
future. However, our management will closely monitor price changes in our industry and continually maintain effective cost control in
operations.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue
or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

Critical Accounting Policies and Estimates

Revenue Recognition