Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 66

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 66
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 key components of our
results of operations during the three months ended September 30, 2025 and 2024.

    2025  
    2024  
    Increase/  Decrease 
  
    Revenue 
    $52,198  
    $145,764  
    $(93,566)
  
    Cost of revenue 
     (38,774) 
     (105,123) 
     (66,349)
  
    Gross profit 
     13,424  
     40,641  
     (27,217)
  
    Selling and marketing expenses 
     (6,879) 
     (7,095) 
     (216)
  
    General and administrative expenses 
     (78,245) 
     (87,558) 
     (9,313)
  
    Loss from operations 
     (71,700) 
     (54,012) 
     (17,688)
  
    Other income 
     4  
     71  
     (67)
  
    Net loss 
    $(71,696) 
    $(53,941) 
    $(17,755)

Revenue

We generated $52,198 in revenue for the three months
ended September 30, 2025 compared to $145,764 for the three months ended September 30, 2024, representing decrease in revenue of $93,566
or 64.2% compared to the three months ended September 30, 2024. The decrease was mainly due to the decrease in the quantity of ornament
and adornment products sold during the three months ended September 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 $38,774 for the three months ended
September 30, 2025 compared to $105,123 for the three months ended September 30, 2024. Cost of revenue mainly consists of the cost of
products sold and labor costs. The decrease in cost of revenue by $66,349 or 63.1% was mainly due to an decrease in the volume of products
sold, as reflected in the decrease in revenue.

Gross profit

Gross profit for the three months