Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 43

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 43
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 operations 
     (288,483) 
     (290,746) 
     (2,263)
  
    Other income 
     323  
     1,080  
     (757)
  
    Net loss 
    $(288,160) 
    $(289,666) 
    $(1,506)

Revenue

We generated $502,550 in revenue for the year
ended December 31, 2024 compared to $1,969,094 for the year ended December 31, 2023, representing a decrease in revenue of $1,466,544
or 74.5% compared to the fiscal year 2023. The decrease was mainly due to the decrease in product selling prices as we adjusted our price
downward to attract customers and the decrease in quantity sold by 81.9% from 8,001 pieces of ornament and adornment products sold during
the year ended December 31, 2023 to 1,446 pieces of ornament and adornment products sold during the year ended December 31, 2024. We experienced
intensified competition, resulting in increased price sensitivity among customers. Our competitors’ pricing strategies and promotional
activities contributed to downward pressure on product selling prices.

 27 

Cost of Revenue

Cost of revenue was $365,606 for the year ended
December 31, 2024 compared to $1,608,247 for the year ended December 31, 2023. Cost of revenue mainly consists of cost of products sold
and labor cost. The decrease in cost of revenue by $1,242,641 or 77.3% was mainly due to a decrease in the purchase price of our main
product, “Chinese Twelve Zodiac Pendants”, and a decline in the volume of products sold, as reflected relatively in line with
the decrease in revenue.

Gross profit

Gross profit for the year ended December 31, 2024
was $136,944 compared with $360,847 for the year ended December 31, 2023. As a percentage of revenue, our gross margin increased from
18.3% for the fiscal year 2023 to 27.2% for the fiscal year 2024, primarily because the percentage decrease in our cost of revenue was
greater than the reduction in revenue. During the year ended December 31, 2024, we purchased from one single supplier. Our supplier had
significantly reduced