Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 84

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 84
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ancheng Group’s ability to offer securities to investors and cause the value of such securities
to significantly decline or become worthless.

Recent statements by the Chinese government have
indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investments in China
based issuers. PRC has recently promulgated new rules that require companies collecting or holding large amounts of data to undergo a
cybersecurity review prior to listing in foreign countries, a move that will significantly tighten oversight over China-based internet
giants. The Cybersecurity Review Measures (2021 version) was promulgated on December 28, 2021 and became effective on February 15, 2022.
These measures specify that any “online platform operators” controlling the personal information of more than one million
users which seek to list on a foreign stock exchange are subject to prior cybersecurity review. The Measures for Security Assessment for
Outbound Data Transfer, which took effect on September 1, 2022, mandate mandatory government security review by the CAC in advance of
certain cross-border data transfer activities. On September 24, 2024, the China’s State Council issued the Regulations on the Administration
of Network Data Security, which took effect on January 1, 2025, prescribing that the network data processors processing personal information
of over 10 million individuals shall fulfill certain requirements for processing important data and require network data processors to
take certain precautionary measures.

We believe that our 100% owned PRC subsidiary
Qiansui Media, which operates our business of selling ornament and adornment products, is not subject to the review or prior approval
of the CAC or the CSRC in connection with the Contribution transaction.

If the Chinese government were to impose new requirements
for approval from the PRC authorities to issue the common stock to investors outside of China or list on a foreign exchange, such action
could significantly limit or completely hinder Tancheng Group’s ability to offer or continue to offer securities to investors and
cause the value of such securities to significantly decline or become worthless.

To date, Tancheng Group and its PRC subsidiaries,
(1) are not required to obtain permissions from any PRC authorities to operate or issue the common stock to investors outside of China,
(2) are not subject to permission requirements from the CSRC, CAC or any other entity that is required to approve of the Company’s
PRC subsidiaries’ operations, and (3) have not received or were