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

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
olidated financial statements. 

    3.
    INVENTORIES

    Schedule of inventories 

     June 30, 2025  
     December 31, 2024 
  
    Ornament and adornment products 
    $1,360,526  
    $1,303,273 

No impairment
provision for obsolete inventories was recorded for the three and six months ended June 30, 2025 and 2024.

    4.
    MOTOR VEHICLE

    Schedule of motor vehicle 

    June 30, 2025  
    December 31, 2024 
  
    Motor vehicle 
    $141,308  
    $138,682 
  
    Less: Accumulated depreciation 
     (58,172) 
     (43,916)
  
    Net book value 
    $83,136  
    $94,766 

Depreciation expense recorded for this motor vehicle
for the three and six months ended June 30, 2025 and 2024 was $6,649, $6,641, $13,260 and $13,344, respectively.

     12 

    5.
    INCOME TAXES

(a)  Enterprise Income Tax (“EIT”)

Tancheng Group Co., Ltd. was incorporated in the
State of Nevada. Tancheng Group Co., Ltd. is an U.S. entity and is subject to the United States federal income tax. No provision for income
taxes in the United States has been made as Tancheng Group Co., Ltd. had no United States taxable income for the three and six months
ended June 30, 2025 and 2024.

Qiansui International was incorporated in the
Cayman Islands. Under the current tax laws of Cayman Islands, Qiansui International is not subject to taxation.

Qiansui HK was incorporated in Hong Kong and is
subject to an income tax rate of 16.5% for taxable income generated from operations in Hong Kong.

Qiansui Consulting and Qiansui Media were incorporated
in the PRC and they are subject to profits tax rate at 25% for income generated and operation in the country.

The Company operates its business through a subsidiary
incorporated in the PRC which is subject to a corporate income tax rate of 25%. A reconciliation of the effective tax rates from 25% statutory