Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 102

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 102
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 by SAFE Circular 37. As of the date of this report, our PRC resident owners have completed
foreign exchange registration under the SAFE Circular 37 and other related rules. We cannot assure you, however, that all of these shareholders
may continue to make required filings or updates in a timely manner, or at all. We can provide no assurance that we are or will in the
future continue to be informed of identities of all PRC residents holding direct or indirect interest in us. Any failure or inability
by such shareholders to comply with SAFE regulations may subject us to fines or legal sanctions, such as restrictions on the Company’s
cross-border investment activities or our PRC subsidiaries’ ability to distribute dividends to, or obtain foreign exchange-denominated
loans from us, or prevent us from making distributions or paying dividends to our shareholders. As a result, the Company’s business
operations and the Company’s ability to make distributions to you could be materially and adversely affected.

Furthermore, as these foreign exchange regulations
and their interpretation and implementation have been constantly evolving, it is unclear how these regulations, and any future Chinese
regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented by the relevant government authorities.
In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may
be, will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the foreign exchange
regulations. This may restrict the Company’s ability to implement the Company’s acquisition strategy and could adversely affect
the Company’s business and prospects. 

U.S. regulatory bodies may be limited in
their ability to conduct investigations or inspections of the Company’s operations in China.

Any disclosure of documents or information located
in China by foreign agencies may be subject to jurisdiction constraints and must comply with China’s state secrecy laws, which broadly
define the scope of “state secrets” to include matters involving economic interests and technologies. There is no guarantee
that requests from U.S. federal or state regulators or agencies to investigate or inspect the Company’s operations in China will
be honored by the Company, by entities who provide services to the Company or with whom the Company associates, without violating PRC
legal requirements, especially as those entities are located in China. Furthermore, under the current PRC laws, an on-site inspection
of the Company’s facilities in China by any of these regulators may be limited or prohibited.

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