Thu, Nov 14, 1:32 PM (89 days ago)
Tancheng Group Co., Ltd. (TANH) reported significant declines in its financial performance for the third quarter and nine months ended September 30, 2024. Revenues fell 76.7% to $145,764 for Q3 and 83.4% to $302,899 year-to-date, primarily due to increased competition and price sensitivity among customers. The gross profit margin improved slightly to 27.9% in Q3, despite a gross loss of $40,641, as cost reductions outpaced revenue declines. Operating expenses decreased by 36.6% in Q3, largely due to lower legal and administrative costs. However, the company recorded a net loss of $53,941 in Q3 and $254,896 year-to-date, compared to net income in the same period last year. Cash and cash equivalents dropped to $189,842, with a working capital deficiency of $1,568,777. The company relies on cash flow from operations and related party advances for liquidity. Management acknowledges substantial uncertainties regarding future operations, citing the need for additional financing to sustain operations. Despite these challenges, they anticipate a positive trend moving forward, emphasizing a strategic business adjustment to regain market competitiveness.