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Tancheng Group Co., Ltd. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $145,764 from $625,954 in the same quarter the previous year. The decrease is attributed to intensified competition and increased price sensitivity among customers.
Cost of revenue for the quarter was $105,123, compared to $458,364 in the same quarter of the previous year. This decrease is due to reduced purchase prices and a decline in the volume of products sold.
The company reported a gross profit of $40,641 for the quarter, compared to $167,590 in the previous year, with the decline attributed to reduced sales.
Selling and marketing expenses were $7,095, slightly up from $6,932, while general and administrative expenses decreased to $87,558 from $138,035, primarily due to lower legal and professional fees.
Net loss for the quarter was $53,941, compared to a net income of $23,031 in the previous year. The loss is attributed to decreased revenue and increased competition.
Cash used in operating activities was $443,053 for the nine months ended September 30, 2024, while cash provided by financing activities was $221,592.
Tancheng Group had a working capital deficiency of $1,568,777 as of September 30, 2024. The company relies on cash advances from related parties to support its operations.
The company does not anticipate any significant changes to its financial condition in the near future.
The filing also notes the company's dependence on a single supplier for its main product, which has significantly reduced purchase prices due to competition.
Tancheng Group continues to face challenges due to intensified competition and pricing pressures in the market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Tancheng Group Co Ltd Com quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.