Wed, May 15, 12:03 PM (244 days ago)
Tancheng Group Co., Ltd. reported a net loss of $107,792 for Q1 2024, an improvement from the $237,286 net loss in Q1 2023. Revenue declined by 54.5% to $157,625, primarily due to reduced product selling prices and a 75.1% decrease in sales volume. Cost of revenue decreased by 62.6% to $115,949, resulting in a gross profit of $41,676 and a gross margin increase from 10.5% to 26.4%. General and administrative expenses dropped by 46.5% to $142,751, mainly due to lower legal and professional fees post-Contribution transaction. Cash used in operating activities was $408,882, with net cash from financing activities at $88,623, leading to a cash balance of $86,945 as of March 31, 2024. The company faces substantial doubt about its ability to continue as a going concern, necessitating additional financing. Management expects improved future results following eased COVID-19 restrictions and plans to address internal control deficiencies.