Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 31

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 31
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Failure to effectively expand our sales
and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products.

Our ability to broaden our customer base and achieve
broader market acceptance of our products, will depend to a significant extent on the ability of our sales and marketing personnel to
drive our sales pipeline and cultivate customer relationships to drive revenue growth. Our marketing efforts include the use of mobile
channels and social media platforms such as WeChat, Sina Weibo, and QR codes.

We have invested in and plan to continue expanding
our sales and marketing capabilities. Identifying, recruiting, and training sales personnel will require significant time, expense, and
attention. If we are unable to hire, develop, and retain talented sales or marketing personnel, if our new sales or marketing personnel
are unable to achieve desired productivity levels in a reasonable period of time, or if our sales and marketing programs are not effective,
our ability to broaden our customer base and achieve broader market acceptance of our products could be harmed.

Significant competition in our industry
could adversely affect our results of operations.

The market for sales of cultural products , and
planned recreational tourism programs is highly fragmented and rapidly evolving. If other market participants introduce new or improved
products or services that are more compelling or widely accepted than ours in the regions we operate, our ability to grow our revenue
and remain profitable could suffer. The Company faces competition from other companies that provide similar offerings. These competitors
may acquire market share, which could potentially reduce demand for our products and offerings.

Some of our competitors and potential competitors
have significantly greater resources than we do. We may not be able to compete successfully against current and future competitors. In
addition, competition may intensify as our competitors raise additional capital and as established companies in other market segments
or geographic markets expand into our market segments or geographic markets. If we cannot compete successfully against our competitors,
our ability to grow our business could be impaired.

We have no business liability or disruption
insurance, which could expose us to significant costs and business disruption.

The insurance industry in China is still at an
early stage of development, and insurance companies in China currently offer limited business-related insurance products. We do not have
any business liability or disruption insurance to cover our operations. We have determined that the costs of insuring for these risks
and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such
insurance. Any uninsured risks may result in substantial costs