Company: QSJC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001683168-25-003492
Chunk: 2

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 key components
of our results of operations during the three months ended March 31, 2025 and 2024.

    2025  
    2024  
    Increase (Decrease) 
  
    Revenue 
    $144,733  
    $157,625  
    $(12,892)
  
    Cost of revenue 
     (105,221) 
     (115,949) 
     (10,728)
  
    Gross profit 
     39,512  
     41,676  
     (2,164)
  
    Selling and marketing expenses 
     (6,643) 
     (6,822) 
     (179)
  
    General and administrative expenses 
     (155,106) 
     (142,751) 
     12,355 
  
    Loss from operations 
     (122,237) 
     (107,897) 
     14,340 
  
    Other income 
     30  
     105  
     (75)
  
    Net loss 
    $(122,207) 
    $(107,792) 
    $14,415 

Revenue

We generated $144,733 in revenue for the three
months ended March 31, 2025 compared to $157,625 for the three months ended March 31, 2024, representing a decrease in revenue of $12,892
or 8.2% compared to the first quarter 2024. The decrease was mainly due to the decrease in quantity sold by 10.2% from 492 pieces of ornament
and adornment products sold during the first quarter of 2024 to 442 pieces of ornament and adornment products sold during the first quarter
of 2025. Since 2024, we have been experienced intensified competition, resulting in increased price sensitivity among customers. Our competitors’
pricing strategies and promotional activities contributed to downward pressure on the quantity sold.

Cost of Revenue

Cost of revenue was $105,221 for the three months
ended March 31, 2025 compared to $115,949 for the three months ended March 31, 2024. Cost of revenue mainly consists of the cost of products
sold and labor cost. The decrease in cost of revenue by $10,728 or 9.3% was mainly due to a decline in the volume of products sold, as
reflected