Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 67

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 67
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 ended September
30, 2025 was $13,424 compared with $40,641 for the three months ended September 30, 2024. As a percentage of revenue, our gross margin
decreased from a gross profit of 27.9% for the three months ended September 30, 2024 to a gross profit of 25.7% for the three months ended
September 30, 2025, primarily because the decrease in revenue was unable to cover the fixed overhead costs included in cost of revenue.

Operating Expenses

General and administrative expenses

By far the most significant component of our operating
expenses for both the three months ended September 30, 2025 and 2024 was general and administrative expenses in the amount of $78,245
and $87,558, respectively. The decrease of $9,313 or 10.6% was mainly due to our success in maintaining our cost structure.

 19 

Net Loss

We reported a net loss of $71,696 for the three months
ended September 30, 2025 compared to a net loss of $53,941 for 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