TANCHENG GROUP CO., LTD. SEC 10-Q Report

Tancheng Group Co., Ltd., a leading company in the ornament and adornment products industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant improvements in financial performance and outlines key operational strategies and challenges faced by the company.

Financial Highlights

• Revenue: $19,097 for the three months ended June 30, 2025, representing an increase of $18,853 or 7,726.6% compared to the same period in 2024, mainly due to an increase in the quantity of ornament and adornment products sold.
• Gross Profit: $3,437 for the three months ended June 30, 2025, compared with a gross loss of $(1,857) for the same period in 2024, reflecting a gross margin improvement from (761.1)% to 18.0%.
• Loss from Operations: $(85,159) for the three months ended June 30, 2025, compared to $(93,166) for the same period in 2024, indicating an improvement of $8,007.
• Net Loss: $(85,157) for the three months ended June 30, 2025, compared to $(93,163) for the same period in 2024, showing a reduction in net loss by $8,006.
• Loss per share: $(0.019) for the three months ended June 30, 2025, compared to $(0.021) for the same period in 2024, reflecting a slight improvement.

Business Highlights

• Revenue Segments: The company experienced a significant increase in revenue from the sale of ornament and adornment products, with a notable rise in the quantity sold during the three months ended June 30, 2025, compared to the same period in 2024.
• Customer Concentration: For the three months ended June 30, 2025, a substantial portion of revenue was generated from Customer D, accounting for 59% of total revenue, indicating a reliance on key customers.
• Operational Strategy: Management has been focusing on selling high-margin products since 2024, which has led to improved gross profit and operating cash flows, and this trend is expected to continue enhancing overall profitability.
• Future Outlook: The company anticipates a positive trend in future results despite current operational losses, driven by strategic adjustments to gain a competitive advantage in the market.
• Geographical Performance: The company's operations are primarily conducted in Mainland China, with business performance influenced by the political, economic, and legal environment in the PRC.
• Sales Units: There was an increase in the volume of products sold, which contributed to the rise in revenue for the six months ended June 30, 2025, compared to the same period in 2024.
• Operational Challenges: The company faces intensified competition, resulting in increased price sensitivity among customers, prompting a redefinition and adjustment of business strategies.

SEC Filing: TANCHENG GROUP CO., LTD. [ QSJC ] - 10-Q - Aug. 14, 2025