Concentration of risk |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Risks and Uncertainties [Abstract] | |
| Concentration of risk | Note 12 – Concentration of risk
Credit risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash in bank. As of June 30, 2026 and December 31, 2025, $3,455,749 and $4,994,497 were deposited with financial institutions located in the PRC, respectively. Deposit insurance system in China only insured each depositor at one bank for a maximum of approximately $74,000 (RMB 500,000). As of June 30, 2026 and December 31, 2025, $3,080,283 and $4,605,818 are over the China deposit insurance limit which is not covered by insurance, respectively. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 800,000 (approximately USD 103,000) if the bank with which an individual/a company hold its eligible deposit fails. As of June 30, 2026 and December 31, 2025, cash balance of $219,809 and $118,820 was maintained at financial institutions in Hong Kong, of which $111,756 and $10,168 was subject to credit risk, respectively.
The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.
Customer concentration risk
For the six months ended June 30, 2026, one customer accounted for 80.0% of the Company’s total revenues. For the six months ended June 30, 2025, two customers accounted for 73.8% and 20.0% of the Company’s total revenues, respectively.
As of June 30, 2026, one customer accounted for 100% of the total balance of accounts receivable. As of December 31, 2025, two customers accounted for 86.0% and 11.4% of the total balance of accounts receivable, respectively.
Vendor concentration risk
For the six months ended June 30, 2026, four vendors accounted for 24.1%, 14.3%, 13.2% and 11.0% of the Company’s total purchases, respectively. For the six months ended June 30, 2025, three vendors accounted for 42.7%, 27.9% and 13.0% of the Company’s total purchases, respectively.
As of June 30, 2026, three vendors accounted for 34.6%, 22.2% and 19.3% of the total balance of accounts payable, respectively. As of December 31, 2025, three vendors accounted for 43.1%, 22.2% and 17.3% of the total balance of accounts payable, respectively.
|