Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 51

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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 have been experiencing intensified competition, resulting
in increased price sensitivity among our customers. We are redefining and adjusting our business strategy to gain a competitive advantage
in the market.

Cost of Revenue

Cost of revenue was $15,660 for the three months
ended June 30, 2025 compared to $2,101 for the three months ended June 30, 2024. Cost of revenue mainly consists of the cost of products
sold and labor costs. The increase in cost of revenue by $13,559 or 645.4% was mainly due to an increase in the volume of products sold,
as reflected in the increase in revenue.

Gross profit

Gross profit for the three months ended June 30,
2025 was $3,437 compared with a gross loss of $(1,857) for the three months ended June 30, 2024. As a percentage of revenue, our gross
margin increased from a gross loss of (761.1)% for the three months ended June 30, 2024 to a gross profit of 18.0% for the three months
ended June 30, 2025, primarily because the increase in revenue was able 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 June 30, 2025 and 2024 was general and administrative expenses in the amount of $81,760 and $84,545,
respectively. The decrease of $2,785 or 3.3% was mainly due to our success in maintaining our cost structure.

 18 

Net Loss

We reported a net loss of $85,157 for the three
months ended June 30, 2025 compared to a net loss of $93,163 for the three months ended June 30, 2024. Although we operated at a loss,
we expect to see a positive trend in our future results.

Comparison for The Six Months Ended June
30, 2025 and 2024

The following table sets forth key components
of our results of operations during the six months ended March 31, 2025 and 2024.

    2025  
    2024  
    Increase/ 
Decrease 
  
    Revenue 
    $163,830  
    $157,135  
    $6,695 
  
    Cost of revenue