v3.26.1
Significant Risks and Uncertainties
 12 Months Ended
Dec. 31, 2025
Significant Risks and Uncertainties [Abstract]  
SIGNIFICANT RISKS AND UNCERTAINTIES
20.SIGNIFICANT RISKS AND UNCERTAINTIES

 

(a)Interest rate risk

 

Fluctuations in market interest rates may negatively affect the Group’s financial condition and results of operations. The Group is exposed to interest rate risk arising from cash in bank and bank loans. The Group expected no material risks from changes in market interest rates, and has not used any derivative financial instruments to manage the interest risk exposure.

 

(b)Foreign exchange risk

 

The reporting currency of the Group’s operations was in USD and the Group’s subsidiaries generally use their local currencies as their functional currencies, i.e. Malaysian Ringgit (“MYR”). The Group is mainly exposed to foreign exchange risk in respect of operating activities when purchase of goods and services in geographic areas is using transaction currencies other than MYR.

 

(c)Concentration of credit risk

 

Assets that potentially subject the Group to significant concentrations of credit risk primarily consist of cash, accounts receivable, amounts due from related parties and interest-free loan to third parties, deposits within prepaid expenses and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as of the balance sheet dates. All of the Group’s cash are held with financial institutions that Group’s management believes to be high credit quality. Based on the Group’s historical experiences in collection of prepaid expenses and other current assets and amounts due from related parties, the Group consider the credit risk of these receivables to be relatively low. Management regularly conducts assessment on expected credit losses arising from non-performance by these counterparties.

 

(d)Concentration of customers and suppliers

 

The following customers represent more than 10% of the Group’s total revenues for the years ended December 31, 2023, 2024 and 2025:

 

   For the years ended December 31, 
   2023   2024   2025 
Percentage of the Group’s revenue from            
Customer A   *    *    11.2%

 

*Represents percentage less than 10%

 

The following customers represent more than 10% of the Group’s total accounts receivable as of December 31, 2024 and 2025:

 

   As of December 31, 
   2024   2025 
Percentage of the Group’s accounts receivable from        
Customer B   *    35.1%
Customer A   65.2%   16.5%
Customer C   15.9%   15.9%
Customer D   11.9%   * 

 

*Represents percentage less than 10%

The following customers represent more than 10% of the Group’s total advances from customers as of December 31, 2024 and 2025:

 

   As of December 31, 
   2024   2025 
Percentage of the Group’s advances from        
Customer D   70.6%   * 
           

 

*Represents percentage less than 10%

 

There are no purchases from a particular supplier more than 10% of the Group’s total purchase for the years ended December 31, 2023, 2024 and 2025.

 

The following suppliers represent more than 10% of the Group’s accounts payable as of December 31, 2024 and 2025:

 

   As of December 31, 
   2024   2025 
Percentage of the Group’s accounts payable to        
Supplier A   55.5%   * 
Supplier B   *    11.5%

 

*Represents percentage less than 10%

 

The following suppliers represent more than 10% of the Group’s advance to suppliers as of December 31, 2024 and 2025:

 

    As of December 31,  
    2024     2025  
Percentage of the Group’s advances to            
Supplier C     93.5 %     *  
                 

 

*Represents percentage less than 10%