Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 22

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 22
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 prohibited from trading pursuant to the HFCAA is low. If the PCAOB determines in the
future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong and we
use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the
SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 10-K for the relevant
fiscal year. In accordance with the HFCAA, as amended, our securities would be prohibited from being traded on a national securities exchange
or in the over-the-counter trading market in the United States if we are identified as a Commission-Identified Issuer for two consecutive
years in the future. A prohibition of being able to trade in the United States would substantially impair your ability to sell or purchase
our common stock when you wish to do so, and the risk and uncertainty associated with delisting would have a negative impact on the price
of our common stock. Also, such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at
all, which would have a material adverse impact on our business, financial condition, and prospects. 

 14 

Fluctuations in exchange rates could have
a material and adverse effect on the Company’s results of operations and the value of your investment.

The value of the Renminbi against the U.S. dollar
and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign
exchange policy adopted by the PRC government. It is difficult to predict when and how the relationship between the RMB and the U.S. dollar
may change. All of the Company’s revenues and substantially all of the Company’s costs are denominated in Renminbi. We rely
on dividends paid by our operating subsidiaries in China for our cash needs. Any significant revaluation of Renminbi may materially and
adversely affect the Company’s results of operations and financial position reported in Renminbi when translated into U.S. dollars,
and the value of, and any dividends payable on, the common stock in U.S. dollars. To the extent that we need to convert U.S. dollars into
Renminbi for the Company’s operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the
Renminbi amount we would receive. Conversely, if we decide to