Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 8

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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.e. products that have not yet been delivered. Once the related products
have been delivered, the amount in the advance from customers account is shifted to a revenue account. As of June 30, 2025 and December
31, 2024, the balance of advance from customers was $58,628 and $51,237, respectively. For the three and six months ended June 30, 2025
and 2024, $nil, $nil, $51,237 and $142,889 of revenue recognized was included in the Company’s advance from customers’ balance
as of December 31, 2024 and 2023, respectively.

For all reporting periods, the Company has not
disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year
or less, which is an optional exemption that is permitted under the adopted rules. 

(g) Foreign Currency Translation

The Company’s reporting currency is the
U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange
rates at the balance sheet date and revenue and expenses are translated at the average exchange rates for the reporting period and equity
is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included
in foreign exchange adjustments to other comprehensive income, a component of equity.

Transactions in currencies other than the functional
currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the
dates of the transactions. Exchange gains and losses are recognized in the statements of operations.

The exchange rates utilized as follows:

    Schedule of exchange rates 

    June 30, 2025  
    June 30, 2024 
  
    Period-end RMB exchange rate 
     7.16  
     7.27 
  
    Annual average RMB exchange rate 
     7.25  
     7.21 

No representation is made that the RMB amounts
could have been, or could be, converted into U.S. dollars at the rates used in translation.

(h) Foreign Currency Risk

The RMB is not a freely convertible currency.
The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the
RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and
political