Note 10 - Concentrations Of Risk

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements

Concentration Risk Disclosure [Text Block]

10.         CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a)         Major customers

For the year ended December 31, 2011, there was one single customer (a related party) who accounted for 100% of revenues amounting to $15,415 with no accounts receivable.

For the year ended December 31, 2010, there was one single customer (a related party) who accounted for 10% or more of revenues amounting to $15,446 with accounts receivable of $3,854 as at year-end date.

(b)         Major vendors

For the years ended December 31, 2011 and 2010, there was no single vendor who accounted for 10% or more of the Company’s purchases.

(c)         Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company performs ongoing credit evaluations of its customers’ financial condition, but does not require collateral to support such receivables.

(d)         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 HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.