Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 16

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
---
 valuation allowance is provided for deferred tax assets if it is more likely
than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain.

As of June 30, 2025 and December 31, 2024, the
Company’s deferred tax assets solely represent the tax loss carried forward using the PRC statutory rate of 25%. As management of
the Company believes that it is more likely than not that the benefit from the tax loss carried forwards will not be realized, the Company
recorded a full valuation allowance for all the reporting periods. There were no deferred tax liabilities as of June 30, 2025 and December
31, 2024.

(b)  Value Added Tax (“VAT”)

The Company was subject to the normal VAT rate
of 13% for the three and six months ended June 30, 2025 and 2024.

    6.
    RELATED PARTIES TRANSACTIONS

The table below sets forth the related parties
and their relationships with the Company as of June 30, 2025 and December 31, 2024:

    Name of related parties 
    Relationship with the Company
  
    Yu Yang (“Mr. Yang”) 
    Controlling shareholder
  
    Jiaocheng Xinmu Trade Co., Ltd 
    Controlled by Mr. Yang
  
    All Weather (Hainan) Network Sports Co., Ltd 
    Controlled by Mr. Yang
  
    Taiyuan Tuohang Logistics Co., Ltd 
    Controlled by Mr. Yang
  
    Shanxi Xiliu Catering Management Co., Ltd 
    Controlled by Mr. Yang

The related party balances and transactions are
as follows:

Amounts due to related parties:

    Schedule of amounts due to related parties 

    June 30, 2025  
    December 31, 2024 
  
    Yu Yang 
    (a) 
    $558,538  
    $441,151 
  
    Jiaocheng Xinmu Trade Co., Ltd 
    (b) 
     2,391,326  
     2,346,889 
  
    Taiyuan Tuohang Logistics Co., Ltd 
    (c) 
     195,787  
     117,324 

    $3,145,651  
    $2,905,364 

    (a)
    Amounts due to Yu Yang represent payments made to