Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 132

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 132
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 a wholly owned
foreign entity under PRC law. Qiansui Consulting wholly owns Shanxi Qiansui 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 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 accompanying 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.

     F-6 

The Company incurred loss of $288,160 and had
net cash used in operating activities of $586,597 for the year ended December 31, 2024. As of December 31, 2024, the Company had net current
liability of $1,550,909 and an accumulated deficit of $1,701,386. 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.

    -
    In 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 board of directors believes the Company has
adequate financial resources to continue in operational existence for the foreseeable future, a period of at least 12 months from the
date of this report. Accordingly, the going concern