Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 493

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7
Chunk 493
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, 2024, there was no
    advance or repayment made between the Company and Jiaocheng Xinmu. On June 30, 2024, the Company, Shanxi Xiliu and Jiaocheng Xinmu
    made the Netting Arrangement to offset the related party receivable and payable balances. The amount due to Jiaocheng Xinmu
    was reduced to $2,346,889
    after the Netting Arrangement.

    (c)
    Amounts due to Taiyuan Tuohang Logistics Co., Ltd represent payments made on behalf of the Company for operational purposes.

Related party transactions:

During the years ended December 31, 2024 and 2023,
there were advances, payments and settlements made between the related parties and the Company as described above. In addition, during
the year ended December 31, 2024, the Company sold products to All Weather (Hainan) Network Sports Co., Ltd in aggregate amounts of $334,254.

     F-13 

    8.
    EQUITY

Authorized Shares

As of December 31, 2024 and 2023, the Company
has 75,000,000 authorized ordinary shares, par value $0.001 per share.

Ordinary Shares

As of December 31, 2024 and 2023, the Company’s
outstanding number of ordinary shares was 4,381,550.

The Company did not issue any shares during the
years ended December 31, 2024 and 2023.

    9.
    ADDITIONAL PAID IN CAPITAL

On August 18, 2022, the former President of the
Company, Olegas Tunevicius signed an Assignment, Assumption, and Indemnity Agreement to assume all liabilities and debts and obligations
of Bigeon as of the Closing date of the Stock Purchase Agreement (Note 1). As of the Closing date, total liabilities amounting to $146,114
was assigned to Mr. Tunevicius and the Company account for this transaction as a capital contribution and an increase of additional paid-in
capital from the original balance of $16,750 under shareholders’ equity. As of December 31, 2024 and 2023, the Company’s additional
paid in capital was $162,864.

    10.
    RESERVES

(a) Legal reserve

Pursuant to the laws applicable to the