Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 19

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 profits as determined under the PRC
laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations
are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable
as cash dividends. As of September 30, 2025 and December 31, 2024, the paid-up statutory reserve was $nil.

(b) Currency translation reserve

The currency translation reserve represents translation
differences arising from the translation of foreign currency financial statements into the Company’s reporting currency.

    9.
    SEGMENT
    INFORMATION

The Company operates in Mainland China. Due to the
integrated structure of the Company’s business, the Company’s chief operating decision maker (“CODM”) is the Chief
Executive Officer. The Company determined it has one reportable segment, as the CODM regularly reviews operations and financial performance
on an aggregate basis at a consolidated level for the purposes of allocating resources and to make business decisions.

     16 

The following table provides information about the
Company’s segment:

    Schedule of segment information 

    For the three months ended  September 30, 

    2025  
    2024 
  
    Segment revenue 
    $52,198  
    $145,764 
  
    Less: 

    Cost of inventories 
     (36,803) 
     (102,972)
  
    Salaries and related costs 
     (38,999) 
     (36,676)
  
    Depreciation 
     (6,718) 
     (6,713)
  
    Legal and professional fees 
     (40,647) 
     (47,835)
  
    Other segment items 
     (731) 
     (5,580)
  
    Segment loss 
     (71,700) 
     (54,012)
  
    Reconciliation: 

    Other operating income 
     4  
     71 
  
    Net loss 
    $(71,696) 
    $(53,941)

    For the nine months ended  September 30, 

    2025  
    2024 
  
    Segment revenue 
    $216,028  
    $302,899 
  
    Less: 

    Cost of inventories 
     (153,865)