CONCENTRATIONS OF RISK |
6 Months Ended |
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Jun. 30, 2025 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | NOTE 12 – CONCENTRATIONS OF RISK
The Company is exposed to the following concentrations of risk:
(a) Major customers
For both the three and six months ended June 30, 2025, two customers accounted for approximately 51% and 49 % of the Company’s revenues, amounting to $72,586 and $69,460, respectively.
For the three months ended June 30, 2024, a single customer accounted for 64% of the Company’s revenues amounting to $2,407. There is no single customer who accounted for 10% of more of the Company’s revenues for the six months ended June 30, 2024.
All the Company’s customers are located in the PRC.
(b) Major vendors
For the three and six months ended June 30, 2025, two vendors accounted for approximately 77% and 14% of the Company’s total purchases, amounting to $97,508 and $17,843, respectively.
For the three months ended June 30, 2024, a single vendor accounted for 77% of the Company’s purchases, amounting to $1,128, and for the six months ended June 30, 2024, the same vendor accounted for 15% of the Company’s purchases, also amounting to $1,128.
All the Company’s vendors are located in the PRC.
(c) Credit risk
Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.
(d) Economic and political risk
The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations.
(e) Exchange rate risk
The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RMB converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.
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