Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 222

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1C
Chunk 222
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 in the
Cayman Islands on June 7, 2022. Qiansui (Hong Kong) Holdings Limited (“Qiansui HK”) was incorporated on July 21, 2022 in the
Hong Kong SAR. Qiansui HK wholly owns Shanxi Qiansui Tancheng Culture Consulting Co., Ltd. (“Qiansui Consulting”) which was
established on December 12, 2022 in the People’s Republic of China (the “PRC”). Qiansui Consulting is a wholly owned
foreign entity under PRC law. Qiansui Consulting wholly owns Shanxi Qiansui Tancheng Culture Media Co., Ltd. (“Qiansui Media”),
which was established on June 14, 2017 in the PRC. Qiansui Consulting acquired Qiansui Media on December 28, 2022. Qiansui HK and Qiansui
Consulting are intermediary holding companies. Qiansui International conducts its operations through Qiansui Media.

The Company operates through its wholly-owned
PRC subsidiary Qiansui Media and the principal activity is the sale of self-designed ornament and adornment products in the PRC.

    2.
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation and Going Concern

The accompanying consolidated financial statements
include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities
and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”).

The accompanying consolidated financial statements
are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and
the satisfaction of liabilities in the normal course of business.

     F-6 

The Company incurred loss of $288,160 and had
net cash used in operating activities of $586,597 for the year ended December 31, 2024. As of December 31, 2024, the Company had net current
liability of $1,550,909 and an accumulated deficit of $1,701,386. These conditions raised substantial doubt about the Company’s
ability to continue as a going concern. The Company’s ability to continue as a going concern will require the Company to obtain
additional financing to fund its operations. In assessing the going concern, the board of directors has considered:

    -
    The Company will obtain financial support from the related