Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 427

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 6
Chunk 427
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 single supplier. Our supplier had
significantly reduced the purchase price of the products that we sold to our customers as our supplier was also experiencing intensified
competition among the other suppliers. In addition, there was a significant increase in revenue share deriving from the sale of the high-margin
product, the Chinese Twelve Zodiac Pendants in fiscal year 2024, which contributed to our overall profitability.

Operating Expenses

General and administrative expenses

By far the most significant component of our operating
expenses for both the years ended December 31, 2024 and 2023 was general and administrative expenses in the amount of $397,782 and $623,879,
respectively. The decrease of $226,097 or 36.2% was mainly due to a decrease in legal and professional fees. For the year ended December
31, 2023, we incurred legal and professional fees in connection with the execution and completion of the Contribution transaction, because
of which we ceased being a shell company. By contrast, we incurred only small legal and professional fees related to our regular SEC reporting
obligations for the year ended December 31, 2024.

Net Loss

We reported a net loss of $288,160 for the year
ended December 31, 2024 compared to a net loss of $289,666 for the year ended December 31, 2023. Although we are still operating at a
loss, we expect to see a positive trend in our future results.

Liquidity and Capital Resources

    As of December 31, 

    2024  
    2023 
  
    Working capital: 

    Total current assets 
    $1,479,137  
    $3,376,985 
  
    Total current liabilities 
     (3,030,046) 
     (4,696,852)
  
    Working capital deficiency 
    $(1,550,909) 
    $(1,319,867)

Our principal sources of liquidity and capital
resources have been, and are expected to continue to be, cash flow from operations and cash advances from related parties. Our principal
uses of cash have been, and we expect will continue to be, for working capital to support a reasonable increase in our scale of operations.

Management has estimated our cash flow from future
operations and available support from related parties and has concluded that we have, or will have access to, sufficient financial resources
to meet our financial obligations as and when they fall