Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 36

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 36
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 expenses in the financial statements and accompanying
notes. Significant accounting estimates reflected in the Company’s condensed consolidated financial statements include economic
lives and impairment of property, plant and equipment and allowance for doubtful accounts. Actual results could differ from those estimates
and such differences could affect the results of operations reported in future periods.

(d) Cash and Cash Equivalents

The Company considers all highly liquid investments
purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand
and cash deposited in bank accounts in mainland China at September 30, 2025 and December 31, 2024. Cash balance in bank accounts in mainland
China are insured by the People’s Bank of China Financial Stability Department (“FSD”) where there is a RMB500,000 deposit
insurance limit for a legal entity’s aggregated balance at each bank. As a result, the amounts not covered by FSD were $nil and
$25,931 as of September 30, 2025 and December 31, 2024, respectively.

The Renminbi is not freely convertible into foreign
currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange
Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign
exchange business.

(e) Motor Vehicle

The Company has one motor vehicle, which is stated
at cost less accumulated depreciation and accumulated impairment losses. Cost represents the purchase price of the motor vehicle and other
costs incurred to bring the motor vehicle into its existing use. Gains or losses on disposals are reflected as gain or loss in the period
of disposal. All ordinary repair and maintenance costs are expensed as incurred.

Depreciation of the motor vehicle is provided using
the straight-line method over the estimated useful lives of 5 years with 5% residual value.

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(f) Revenue Recognition

The Company’s revenue recognition policy is
compliant with ASC 606, Revenue from Contracts with Customers that revenue is recognized when a customer obtains control of promised goods
and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition,
the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with
customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those