Company: QSJC
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001683168-25-003492
Chunk: 4

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 to us in the future will, in fact, be available to us on acceptable
terms, if at all. We believe there will be sufficient funds to run our operations for the next 12 months.

As of March 31, 2025, we had cash and cash equivalents
of $19,836. The following table provides detailed information about our net cash flows for the three months ended March 31, 2025 and 2024:

    For the three months ended March 31, 

    2025  
    2024 
  
    Cash flows: 

    Net cash used in operating activities 
    $(212,513) 
    $(408,882)
  
    Net cash provided by financing activities 
     131,306  
     88,623 
  
    Effect of exchange rate changes on cash and cash equivalents 
     390  
     (4,950)
  
    Net decrease in cash and cash equivalents 
     (80,817) 
     (325,209)
  
    Cash and cash equivalents at the beginning of the year 
     100,653  
     412,154 
  
    Cash and cash equivalents at the end of the period 
    $19,836  
    $86,945 

 19 

Operating Activities

Net cash used in operating activities was $(212,513)
for the three months ended March 31, 2025. The difference between our net loss of $(122,207) and net cash outflows from operating activities
was due to the adjustment of non-cash depreciation of a motor vehicle in the amount of $6,611 and the cash used in operating assets and
liabilities in an aggregate amount of $(96,917).

The cash used in operating assets and liabilities
was mainly attributable to (i) a decrease in accounts payables of $(61,482) due to fewer purchases from our vendors and (ii) a decrease
in advance from customers of $(30,658) due to fewer unfulfilled sales orders, offset with (iii) a decrease in advance to suppliers of
$26,692 due to fewer purchase made from suppliers.

Financing Activities

Net cash generated from financing activities was
$131,306 for the three months ended March 31, 2025, which was attributable to the funds from related parties to support our business operations.

Inflation

Inflation and changing prices have not had a material
effect on our business