Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 94

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 94
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ulations of the PRC could have an adverse impact on the Company’s financial condition and results of operation.

Our PRC subsidiaries have been subject to stricter
regulatory requirements in terms of entering into labor contracts with their employees and paying various statutory employee benefits,
including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance
to designated government agencies for the benefit of their employees. Pursuant to the PRC Labor Contract Law, or the Labor Contract Law,
that became effective in January 2008 and its implementing rules that became effective in September 2008 and was amended in July 2013,
employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the
term of employees’ probation and unilaterally terminating labor contracts.

Under the Social Insurance Law of the PRC, all
employees are required to participate in basic pension insurance, basic medical insurance schemes and unemployment insurance, which must
be contributed by both the employers and the employees. All employees are required to participate in work-related injury insurance and
maternity insurance schemes, which must be contributed by the employers. Employers are required to complete registrations with local social
insurance authorities. Moreover, the employers must timely make all social insurance contributions. Only 13 of Qiansui Media’s 17
employees participate in the basic pension insurance, basic medical insurance, unemployment insurance, work-related injury insurance and
maternity insurance schemes.

Pursuant to PRC regulations on the Housing Provident
Fund, enterprises are required to register with the competent administrative centers of housing provident fund and open bank accounts
for housing provident funds for their employees. Employers are also required to timely pay all housing fund contributions for their employees.
Qiansui Media has not made any housing fund contributions for any of the 17 employees.

As of the date of this report, we are not aware
of any action, claim, investigation or penalties being conducted or threatened by any government authorities. However, if Qiansui Media
is fined or otherwise penalized by government authorities due to its failure to adequately pay social insurance and housing provident
fund contributions for its employees, its financial condition may be negatively impacted.

The recent joint statement by the SEC, and
an act passed by the U.S. Senate and the U.S. House of Representatives, all call for additional and more stringent criteria to be applied
to U.S.-listed companies with significant operations in China. These developments could add uncertainties to