Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 24

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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4.3%
compared to the first half of year 2024. The increase was mainly due to the increase in the quantity of ornament and adornment products
sold during the six months ended June 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 $120,881 for the six months
ended June 30, 2025 compared to $117,519 for the six months ended June 30, 2025. Cost of revenue mainly consists of the cost of products
sold and labor costs. The increase in cost of revenue by $3,362 or 2.9% was in line with the increase in revenue.

Gross profit

Gross profit for the six months ended June 30,
2025 was $42,949 compared with $39,616 for the six months ended June 30, 2024. As a percentage of revenue, our gross margin slightly increased
from a gross profit of 25.2% for the first half of year 2024 to 26.2% for first half of year 2025, primarily because of the increase in
the cost of revenue was less than the increase in revenue.

Operating Expenses

General and administrative expenses

By far the most significant component of our operating
expenses for both the six months ended June 30, 2025 and 2024 was general and administrative expenses in the amount of $236,866 and $227,093,
respectively. The increase of $9,773 or 4.3% was mainly due to our success in maintaining our cost structure.

 19 

Net Loss

We reported a net loss of $207,364 for the six
months ended June 30, 2025 compared to a net loss of $200,955 for the six months ended June 30, 2024. Although we operated at a loss,
we expect to see a positive trend in our future results.

Liquidity and Capital Resources

    June 30, 2025  
    December 31, 2024 
  
    Working capital: 

    Total current assets 
    $1,448,924  
    $1,479,137 
  
    Total current liabilities 
     (3,215,977) 
     (3