Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 255

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 2
Chunk 255
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 resources
to meet our financial obligations as and when they fall due in the coming twelve months. There can be no assurances, however, that any
of the financial resources we may be contemplating as being available to us in the future will, in fact, be available to us on acceptable
terms, if at all. We believe there will be sufficient funds to run our operations for the next 12 months.

 28 

As of December 31, 2024, we had cash and cash
equivalents of $100,653. The following table provides detailed information about our net cash flows for the year ended December 31, 2024
and 2023:

    For the years ended December 31, 

    2024  
    2023 
  
    Cash flows: 

    Net cash used in operating activities 
    $(586,597) 
    $(635,037)
  
    Net cash used in investing activities 
     –  
     (143,231)
  
    Net cash provided by financing activities 
     281,985  
     1,122,536 
  
    Effect of exchange rate changes on cash and cash equivalents 
     (6,889) 
     (3,321)
  
    Net (decrease) increase in cash and cash equivalents 
     (311,501) 
     340,947 
  
    Cash and cash equivalents at the beginning of the year 
     412,154  
     71,207 
  
    Cash and cash equivalents at the end of the period 
    $100,653  
    $412,154 

Operating Activities

Net cash used in operating activities was $(586,597)
for the year ended December 31, 2024. The difference between our net loss of $(288,160) and net cash outflows from operating activities
was due to the adjustment of non-cash depreciation of a motor vehicle in the amount of $26,748 and the cash used in operating assets and
liabilities in an aggregate amount of $(325,185).

The cash used in operating assets and liabilities
was generally attributable to (i) increase in inventories of $(87,122) due to the purchase of new products near the fiscal year end; (ii)
increase in advance to suppliers of $(60,101) related to the prepayment made for the consultancy services to be rendered in fiscal year
2025.; (iii) decrease in