Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 55

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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idity and Capital Resources

    September 30, 2025  
    December 31, 2024 
  
    Working capital: 

    Total current assets 
    $1,443,490  
    $1,479,137 
  
    Total current liabilities 
     (3,283,089) 
     (3,030,046)
  
    Working capital deficiency 
    $(1,839,599) 
    $(1,550,909)

Our principal sources of liquidity and capital resources
have been, and are expected to continue to be, cash flow from operations and cash advances from related parties. Our principal uses of
cash have been, and we expect will continue to be, for working capital to support a reasonable increase in our scale of operations.

Management has estimated our cash flow from future
operations and available support from related parties and has concluded that we have, or will have access to, sufficient financial resources
to meet our financial obligations as and when they fall due in the coming twelve months. There can be no assurances, however, that any
of the financial resources we may be contemplating as being available to us in the future will, in fact, be available to us on acceptable
terms, if at all. We believe there will be sufficient funds to run our operations for the next 12 months.

As of September 30, 2025, we had cash and cash equivalents
of $24,678. The following table provides detailed information about our net cash flows for the nine months ended September 30, 2025 and
2024:

    For the nine months ended September 30, 

    2025  
    2024 
  
    Cash flows: 

    Net cash used in operating activities 
    $(376,322) 
    $(443,053)
  
    Net cash provided by financing activities 
     298,904  
     221,592 
  
    Effect of exchange rate changes on cash and cash equivalents 
     1,443  
     (851)
  
    Net decrease in cash and cash equivalents 
     (75,975) 
     (222,312)
  
    Cash and cash equivalents at the beginning of the year 
     100,653  
     412,154 
  
    Cash and cash equivalents at the end of the period 
    $24,678  
    $189,842 

 21 

Operating Activities

Net cash