Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 5

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 Tancheng Culture Media Co., Ltd.
(“Qiansui Media”), which was established on June 14, 2017 in the PRC. Qiansui Consulting acquired Qiansui Media on December
28, 2022. Qiansui HK and Qiansui Consulting are intermediary holding companies. Qiansui International conducts its operations through
Qiansui Media.

The Company operates through its wholly-owned PRC
subsidiary Qiansui Media and the principal activity is the sale of self-designed ornament and adornment products in the PRC.

    2.
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation and Going Concern

The accompanying condensed consolidated financial
statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the
U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S.
(“US GAAP”). The interim consolidated financial statements and related financial information should be read in conjunction
with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for
the year ended December 3l, 2024 (the Annual Report on Form 10-K) filed with the SEC.

The accompanying condensed consolidated financial
statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of
assets and the satisfaction of liabilities in the normal course of business.

The Company incurred net loss of $279,060 and had
net cash used in operating activities of $376,322 for the nine months ended September 30, 2025. As of September 30, 2025, the Company
had net current liability of $1,839,599 and an accumulated deficit of $1,980,446. These conditions raised substantial doubt about the
Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern will require the Company
to obtain additional financing to fund its operations. In assessing the going concern, the board of directors has considered:

    -
    The Company will obtain financial support from the related parties.

    -
    Since 2024, management has strategically focused on selling high-margin product, resulting in improved gross profit and operating cash flows. Management anticipates that this trend will continue to enhance overall profitability, positively impacting the Company’s financial health by generating sustainable operating cash flows and supporting future growth.

The