Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 299

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 3
Chunk 299
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653. The following table provides detailed information about our net cash flows for the year ended December 31, 2024
and 2023:

    For the years ended December 31, 

    2024  
    2023 
  
    Cash flows: 

    Net cash used in operating activities 
    $(586,597) 
    $(635,037)
  
    Net cash used in investing activities 
     –  
     (143,231)
  
    Net cash provided by financing activities 
     281,985  
     1,122,536 
  
    Effect of exchange rate changes on cash and cash equivalents 
     (6,889) 
     (3,321)
  
    Net (decrease) increase in cash and cash equivalents 
     (311,501) 
     340,947 
  
    Cash and cash equivalents at the beginning of the year 
     412,154  
     71,207 
  
    Cash and cash equivalents at the end of the period 
    $100,653  
    $412,154 

Operating Activities

Net cash used in operating activities was $(586,597)
for the year ended December 31, 2024. The difference between our net loss of $(288,160) and net cash outflows from operating activities
was due to the adjustment of non-cash depreciation of a motor vehicle in the amount of $26,748 and the cash used in operating assets and
liabilities in an aggregate amount of $(325,185).

The cash used in operating assets and liabilities
was generally attributable to (i) increase in inventories of $(87,122) due to the purchase of new products near the fiscal year end; (ii)
increase in advance to suppliers of $(60,101) related to the prepayment made for the consultancy services to be rendered in fiscal year
2025.; (iii) decrease in accounts payables of $(89,381) due to the scale down of vendors’ balances; and (iv) decrease in advance
from customers of $(89,017) due to fewer unfulfilled sales orders.

Investing Activities

No cash movement on investing activities for the
year ended December 31, 2024.

Financing Activities

Net cash generated from financing activities was
$281,985 for the year ended December 31, 2024, which was attributable to the funds from related parties to support our business operations