v3.26.1
RISK AND UNCERTAINTIES
 6 Months Ended
Jun. 30, 2026
Risks and Uncertainties [Abstract]  
RISK AND UNCERTAINTIES

16.        RISK AND UNCERTAINTIES

 

The Company is exposed to the following concentrations of risk:

 

(a) Major customers

 

For the three and six months ended June 30, 2026 and 2025, the individual customer who accounted for 10% or more of the Company’s revenues and its outstanding receivable balances at period-end date, are presented as follows:

         
   Three Months ended June 30,  June 30, 2026
Customer  2026  2025  Accounts
receivable
Customer A   36.80%    60.40%   $181,860 
Customer B   16.03%    18.15%   $3,360 
Customer C   13.91%    13.67%   $57,173 

 

   Six Months ended June 30,  June 30, 2026
Customer  2026  2025  Accounts
receivable
Customer A   43.86%    47.73%   $181,860 
Customer B   18.09%    21.13%   $3,360 
Customer C   15.11%    16.76%   $57,173 

 

These customers are located in Hong Kong.

 

(b) Major vendors

 

For the three and six months ended June 30, 2026 and 2025, the individual vendor who accounted for 10% or more of the Company’s direct operating cost and its outstanding payable balances at period-end date, are presented as follows:

         
   Three Months ended June 30,  June 30, 2026
Vendor  2026  2025  Accounts
payable
Vendor A   31.93%    –    59,534 
Vendor B   27.46%    44.41%    27,710 
Vendor C   11.49%    7.52%    – 
Vendor D   –    22.29%    – 

 

          
   Six Months ended June 30,  June 30, 2026
Vendor  2026  2025  Accounts
payable
Vendor A   30.50%    29.85%    59,534 
Vendor B   19.35%    –    27,710 
Vendor C   14.03%    9.76%    – 
Vendor D   –    23.55%    – 

 

These vendors are located in Hong Kong.

 

(c) Credit risk

 

Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents and accounts receivable. Cash equivalents are maintained with high credit quality institutions in Hong Kong, the composition and maturities of which are regularly monitored by the management. The Hong Kong Deposit Protection Board pays compensation up to a limit of HK$800,000 (equal to $102,000) if the bank in Hong Kong with which an individual/a company hold its eligible deposit fails.

 

(d) Economic and political risk

 

The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’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 HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

  

(f) Liquidity risk

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases.