Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 88

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 88
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 the PRC legal
system could adversely affect us.

The PRC legal system is a civil law system based
on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have
limited precedential value.

In 1979, the PRC government began to promulgate
a comprehensive system of laws and regulations governing economic matters generally. The overall effect of legislation over the past three
decades has significantly enhanced the protections afforded to various forms of foreign investments in the PRC. However, the PRC has not
developed a fully integrated legal system, and recently enacted laws and regulations may not sufficiently cover all aspects of economic
activities in the PRC. In particular, the interpretation and enforcement of these laws and regulations involve uncertainties. Since PRC
administrative and court authorities have significant discretion in interpreting and implementing statutory provisions and contractual
terms, it may be difficult to evaluate the outcome of administrative and court proceedings. These uncertainties may affect the Company’s
judgment on the relevance of legal requirements and the Company’s ability to enforce the Company’s contractual rights or tort
claims. In addition, these regulatory uncertainties may be exploited through unmerited or frivolous legal actions or threats in attempts
to extract payments or benefits from us.

Furthermore, the PRC legal system is based in
part on government policies and internal rules, some of which are not published on a timely basis or at all and may have a retroactive
effect. As a result, the Company may not be aware of the Company’s violation of any of these policies and rules until sometime after
the violation. In addition, any administrative and court proceedings in the PRC may be protracted, resulting in substantial costs and
diversion of resources and management attention.

You may experience difficulties in effecting
service of legal process, enforcing foreign judgments or bringing actions in China against the Company or its management based on foreign
laws.

The Company conducts substantially all of its
operations in China, and substantially all of the Company’s assets are located in China. In addition, the Company’s current
officer resides within China and is a PRC national. As a result, it may be difficult for you to effect service of process upon the Company
or those persons inside the PRC. In addition, the PRC does not have treaties providing for the reciprocal recognition and enforcement
of judgments of courts with many other countries and regions. Therefore, recognition and enforcement in China of judgments of a court
in