Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 38

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 38
---
of our common stock. Failure to comply with the Sarbanes-Oxley Act of 2002 could potentially subject us to sanctions or investigations
by the SEC or other regulatory authorities.

Compliance with changing regulation of corporate governance and
public disclosure will result in additional expenses.

Changing laws, regulations and standards relating
to corporate governance and public disclosure, including SOX and related SEC regulations, have created uncertainty for public companies
and significantly increased the costs and risks associated with accessing public markets and public reporting. Our management team will
need to invest significant management time and financial resources to comply with both existing and evolving standards for public companies,
which will lead to increased general and administrative expenses and a diversion of management time and attention from revenue generating
activities to compliance activities. 

Provisions in our charter documents and under Nevada law could
discourage a takeover that stockholders may consider favorable.

Provisions in our articles of incorporation and
bylaws may have the effect of delaying or preventing a change of control or changes in our management. Our board of directors has the
right to determine the authorized number of directors and to elect directors to fill a vacancy created by the expansion of the board of
directors or the resignation, death or removal of a director, which prevents stockholders from being able to control the size of or fill
vacancies on our board of directors.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

Not applicable.

 23 

ITEM 1C. CYBERSECURITY

Risk Management and Strategy

We recognized the significance of cybersecurity
in our business operations. Therefore, we have established a comprehensive cybersecurity and risk management framework, which includes
regular cybersecurity risk assessments to identify and evaluate potential cyber-attack threats and information security weakness that
may affect our business. We plan to implement a series of preventive measures, including firewalls, cyber-attack detection systems, and
data encryption, to safeguard confidential information and data. We will regularly conduct cybersecurity awareness training for employees
to enhance their awareness of potential cybersecurity threats and ensure they take appropriate preventive measures.

We ensure compliance with PRC laws and regulations,
including but not limited to the Cybersecurity Law, the Personal Information Protection Law and The Cybersecurity Review Measures (2021
version). We endeavor to take appropriate measures to protect national secrets and sensitive data while ensuring that the disclosure complies
with PRC restrictions on data transport.

Our cybersecurity crisis management plan outlines
the items, procedures and actions we will undertake in the event of a cybersecurity incident, including detection