Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 18

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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2024, the Company, Shanxi Xiliu and Jiaocheng Xinmu made an arrangement to legally offset the Company’s receivable from Shanxi Xiliu with the payable to Jiaocheng Xinmu in the amount of $1,695,750 (the “Netting Arrangement”).

    (c)
    Amounts due to Taiyuan Tuohang Logistics Co., Ltd represent payments made on behalf of the Company for operational purposes. During the three and nine months ended September 30, 2025 and 2024, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at period-end exchange rates, Taiyuan Tuohang had paid the operation and administration expenses on behalf of the Company in an aggregate amount of $38,925, $40,506, $114,236 and $80,784, respectively. In addition, the Company repaid Taiyuan Tuohang in an aggregate amount of $nil, $nil, $nil and $37,817, respectively.

     15 

Related party transactions:

During the three and nine months ended September 30,
2025 and 2024, there were expenses paid on behalf by the related parties as described above. In addition, during the three and nine months
ended September 30, 2025 and 2024, the Company sold products to All Weather (Hainan) Network Sports Co., Ltd in aggregate amounts of $49,509,
144,700, $159,331 and $144,700, respectively. 

    7.
    EQUITY

Authorized Shares

As of September 30, 2025 and December 31, 2024, the
Company has 75,000,000 authorized ordinary shares, par value $0.001 per share.

Ordinary Shares

As of September 30, 2025 and December 31, 2024, the
Company’s outstanding number of ordinary shares was 4,381,550.

The Company did not issue any shares during the three
and nine months ended September 30, 2025 and 2024.

    8.
    RESERVES

(a) Legal reserve

Pursuant to the laws applicable to the PRC’s
Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject
to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax