Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 52

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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(120,881) 
     (117,519) 
     (3,362)
  
    Gross profit 
     42,949  
     39,616  
     3,333 
  
    Selling and marketing expenses 
     (13,479) 
     (13,586) 
     107 
  
    General and administrative expenses 
     (236,866) 
     (227,093) 
     (9,773)
  
    Loss from operations 
     (207,396) 
     (201,063) 
     (6,333)
  
    Other income 
     32  
     108  
     (76)
  
    Net loss 
    $(207,364) 
    $(200,955) 
    $(6,409)

Revenue

We generated $163,830 in revenue for the six months
ended June 30, 2025 compared to $157,135 for the six months ended June 30, 2024, representing an increase in revenue of $6,695 or 4.3%
compared to the first half of year 2024. The increase was mainly due to the increase in the quantity of ornament and adornment products
sold during the six months ended June 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 $120,881 for the six months
ended June 30, 2025 compared to $117,519 for the six months ended June 30, 2025. Cost of revenue mainly consists of the cost of products
sold and labor costs. The increase in cost of revenue by $3,362 or 2.9% was in line with the increase in revenue.

Gross profit

Gross profit for the six months ended June 30,
2025 was $42,949 compared with $39,616 for the six months ended June 30, 2024. As a percentage of revenue, our gross margin slightly increased
from a gross profit of 25.2% for the first half of year 2024 to 26.2% for first half of year 2025, primarily because of the increase in
the cost of revenue was less than the increase in revenue