Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 24

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 the three months ended September 30, 2024. Although we operated at a loss,
we expect to see a positive trend in our future results.

Comparison for The Nine Months Ended September
30, 2025 and 2024

The following table sets forth key components of our
results of operations during the nine months ended September 30, 2025 and 2024.

    2025  
    2024  
    Increase/  Decrease 
  
    Revenue 
    $216,028  
    $302,899  
    $(86,871)
  
    Cost of revenue 
     (159,655) 
     (222,642) 
     (62,987)
  
    Gross profit 
     56,373  
     80,257  
     (23,884)
  
    Selling and marketing expenses 
     (20,358) 
     (20,681) 
     (323)
  
    General and administrative expenses 
     (315,111) 
     (314,651) 
     460 
  
    Loss from operations 
     (279,096) 
     (255,075) 
     24,021 
  
    Other income 
     36  
     179  
     (143)
  
    Net loss 
    $(279,060) 
    $(254,896) 
    $24,164 

Revenue

We generated $216,028 in revenue for the nine months
ended September 30, 2025 compared to $302,899 for the nine months ended September 30, 2024, representing an decrease in revenue of $86,871
or 28.7% compared to the nine months ended September 30, 2024. The decrease was mainly due to the decrease in the quantity of ornament
and adornment products sold during the nine 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 $159,655 for the nine months ended
September 30, 2025 compared to $222,642 for the nine months ended September 30, 2024. Cost of revenue mainly consists of the cost of products
sold and labor