Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 26

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 no assurances, however, that any
of the financial resources we may be contemplating as being available 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 September 30, 2025, we had cash and cash equivalents
of $24,678. The following table provides detailed information about our net cash flows for the nine months ended September 30, 2025 and
2024:

    For the nine months ended September 30, 

    2025  
    2024 
  
    Cash flows: 

    Net cash used in operating activities 
    $(376,322) 
    $(443,053)
  
    Net cash provided by financing activities 
     298,904  
     221,592 
  
    Effect of exchange rate changes on cash and cash equivalents 
     1,443  
     (851)
  
    Net decrease in cash and cash equivalents 
     (75,975) 
     (222,312)
  
    Cash and cash equivalents at the beginning of the year 
     100,653  
     412,154 
  
    Cash and cash equivalents at the end of the period 
    $24,678  
    $189,842 

 21 

Operating Activities

Net cash used in operating activities was $(376,322)
for the nine months ended September 30, 2025. The difference between our net loss of $(279,060) and net cash outflows from operating activities
was due to the adjustment of non-cash depreciation of a motor vehicle in the amount of $19,978 and the cash used in operating assets and
liabilities in an aggregate amount of $(117,240).

The cash used in operating assets and liabilities
was mainly attributable to (i) an increase in inventories of $(26,625) due to more purchase was made during the nine months ended September
30, 2025 to maintain sufficient inventories level for future sales; (ii) a decrease in accounts payables of $(61,935) due to our timely
payment to settle our vendors’ balance upon the receipt of inventories; and (iii) an increase in advance from customers of $22,108
due to more sales order received during the period end that was undelivered.

Financing Activities

Net cash generated from