Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 83

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 83
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Risks
Related to Doing Business in China

Because all of the Company’s operations
are in China, the Company’s business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government
may exercise significant oversight and discretion over the conduct of the Company’s business and may intervene in or influence the
Company’s operations at any time, which could result in a material change in the Company’s operations and/or the value of
the common stock.

As a business operating in China, the Company
is subject to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC government has the power to exercise
significant oversight and discretion over the conduct of the Company’s business, and the regulations to which we are subject may
change rapidly and with little notice to us or the Company’s shareholders. As a result, the application, interpretation, and enforcement
of new and existing laws and regulations in the PRC are often uncertain. In addition, these laws and regulations may be interpreted and
applied inconsistently by different agencies or authorities. New laws, regulations, and other government directives in the PRC may also
be costly to comply with, and such compliance or any associated inquiries or investigations or any other government actions may:

    ·
    Delay or impede the Company’s development,

    ·
    Require significant management time and attention, and

    ·
    Subject the Company to remedies, administrative penalties and even criminal liabilities that may harm the Company’s business, including fines assessed for the Company’s current or historical operations, or demands or orders that the Company modify or even cease its business practices.

 7 

The promulgation of new laws or regulations, or
the new interpretation of existing laws and regulations, in each case that restrict or otherwise unfavorably impact the ability or manner
in which we conduct our business and could require us to change certain aspects of our business to ensure compliance, which could decrease
demand for our products, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject
us to additional liabilities. To the extent any new or more stringent measures are required to be implemented, our business, financial
condition and results of operations could be adversely affected as well as materially decrease the value of the common stock.

If the Chinese government chooses to exert
more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, such action could
significantly limit or completely hinder T