Company: QSJC
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001683168-25-001892
Chunk: 96

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 96
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 PCAOB inspections for two consecutive years instead of three and, thus, would reduce the time before the common stock may
be prohibited from trading or delisted. On December 29, 2022, legislation entitled “Consolidated Appropriations Act, 2023”
was signed into law, which contained, among other things, an identical provision to the AHFCA Act and amended the HFCA Act by requiring
the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections
for two consecutive years instead of three, thus reducing the time period for triggering the prohibition on trading.

On September 22, 2021, the PCAOB adopted a final
rule implementing the HFCA Act, which provides a framework for the PCAOB to use when determining, as contemplated under the HFCA Act,
whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction
because of a position taken by one or more authorities in that jurisdiction.

On December 2, 2021, the SEC adopted amendments
to finalize rules implementing the submission and disclosure requirements in the HFCA Act. The rules apply to registrants the SEC identifies
as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction
and that the PCAOB is unable to inspect or investigate (“Commission-Identified Issuers”). The final amendments require Commission-Identified
Issuers to submit documentation to the SEC establishing that, if true, it is not owned or controlled by a governmental entity in the public
accounting firm’s foreign jurisdiction. The amendments also require that a Commission-Identified Issuer that is a “foreign
issuer,” as defined in Exchange Act Rule 3b-4, provide certain additional disclosures in its annual report for itself and any of
its consolidated foreign operating entities. A Commission-Identified Issuer will be required to comply with the submission and disclosure
requirements in the annual report for each year in which it was identified. Accordingly, if we are determined by the SEC to be a Commission-Identified
Issuer, we will incur additional costs in complying with the submission and disclosure requirements in the annual report for each year
in which we are identified. In the event that we are deemed to have had three consecutive “non-inspection” years by the SEC,
our securities will be prohibited from trading on any national securities exchange or over-the-counter markets in the United States