Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 37

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 37
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, restrictions imposed by applicable law and other factors our board deems relevant.

Our largest stockholder holds a significant
percentage of our outstanding voting securities and may be able to control our management and affairs.

Zhan Jue Cheng Limited, our largest stockholder,
is the beneficial owner of approximately 63.9% of our outstanding voting securities. As a result, it possesses significant influence,
and can elect a majority of our board of directors and authorize or prevent proposed significant corporate transactions. Its ownership
and control may also have the effect of delaying or preventing a future change in control, impeding a merger, consolidation, takeover,
or other business combination, or discourage a potential acquirer from making a tender offer. 

 22 

Fulfilling our obligations incident to being
a public company, including with respect to the requirements of and related rules under the Sarbanes-Oxley Act of 2002, is expensive and
time-consuming, and any delays or difficulties in satisfying these obligations could have a material adverse effect on our future results
of operations and our stock price.

As a public company, the Sarbanes-Oxley Act of
2002 and the related rules and regulations of the SEC require us to implement various corporate governance practices and adhere to a variety
of reporting requirements and complex accounting rules. Compliance with these public company obligations requires us to devote significant
time and resources and places significant additional demands on our finance and accounting staff and on our financial accounting and information
systems. We plan to hire additional accounting and financial staff with appropriate public company reporting experience and technical
accounting knowledge. Other expenses associated with being a public company include increased auditing, accounting and legal fees and
expenses, investor relations expenses, increased directors’ fees and director and officer liability insurance costs, registrar and
transfer agent fees and listing fees, as well as other expenses.

We are required under the Sarbanes-Oxley Act of
2002 to document and test the effectiveness of our internal control over financial reporting. In addition, we are required under the Exchange
Act to maintain disclosure controls and procedures and internal control over financial reporting. Any failure to maintain effective controls
or implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results
or cause us to fail to meet our reporting obligations. If we are unable to conclude that we have effective internal control over financial
reporting, investors could lose confidence in the reliability of our financial statements. This could result in a decrease in the value