Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 56

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 56
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 Company operates through its wholly-owned
PRC subsidiary Qiansui Media and the principal activity is the sale of self-designed ornament and adornment products in the PRC.

    2.
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation and Going Concern

The accompanying consolidated financial statements
include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities
and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”).

The accompanying consolidated financial statements
are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and
the satisfaction of liabilities in the normal course of business.

     F-6 

The Company incurred loss of $288,160 and had
net cash used in operating activities of $586,597 for the year ended December 31, 2024. As of December 31, 2024, the Company had net current
liability of $1,550,909 and an accumulated deficit of $1,701,386. These conditions raised substantial doubt about the Company’s
ability to continue as a going concern. The Company’s ability to continue as a going concern will require the Company to obtain
additional financing to fund its operations. In assessing the going concern, the board of directors has considered:

    -
    The Company will obtain financial support from the related parties.

    -
    In 2024, management has strategically focused on selling high-margin product, resulting in improved gross profit and operating cash flows. Management anticipates that this trend will continue to enhance overall profitability, positively impacting the Company’s financial health by generating sustainable operating cash flows and supporting future growth.

The board of directors believes the Company has
adequate financial resources to continue in operational existence for the foreseeable future, a period of at least 12 months from the
date of this report. Accordingly, the going concern basis of accounting continues to be used in the preparation of the consolidated financial
statements for the year ended December 31, 2024.

(b) Economic and Political Risks

The Company’s operations are conducted in
the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political,
economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are
subject to special considerations