Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 485

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7
Chunk 485
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 all reporting periods, the Company has not
disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year
or less, which is an optional exemption that is permitted under the adopted rules.

(g) Foreign Currency Translation

The Company’s reporting currency is the
U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange
rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated
at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign
exchange adjustments to other comprehensive income, a component of equity.

Transactions in currencies other than the functional
currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the
dates of the transactions. Exchange gains and losses are recognized in the statements of operations.

The exchange rates utilized as follows:

    Schedule of exchange rates 

    2024  
    2023 
  
    Year-end RMB exchange rate 
     7.30  
     7.10 
  
    Annual average RMB exchange rate 
     7.19  
     7.07 

No representation is made that the RMB amounts
could have been, or could be, converted into U.S. dollars at the rates used in translation.

     F-8 

(h) Foreign Currency Risk

The RMB is not a freely convertible currency.
The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the
RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and
political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and
cash equivalents are in RMB.

(i) Fair Value

Fair value is the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When
determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers
the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use
when valuing the asset or liability. Authoritative literature provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure