Concentrations of Risk |
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Concentrations of Risk [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONCENTRATIONS OF RISK |
The Company is exposed to the following concentrations of risks:
For the three months ended June 30, 2024, customers accounting for 10% or more of the Company’s total revenue and its related outstanding accounts receivable as at the balance sheets date are presented as follows:
For the six months ended June 30, 2024, customers accounting for 10% or more of the Company’s total revenue and its related outstanding accounts receivable as at the balance sheets date are presented as follows:
For the three months ended June 30, 2023, customers accounting for 10% or more of the Company’s total revenue and its related outstanding accounts receivable as at the balance sheets date are presented as follows:
For the six months ended June 30, 2023, customers accounting for 10% or more of the Company’s total revenue and its related outstanding accounts receivable as at the balance sheets date are presented as follows:
For the three months ended June 30, 2024, the vendors who accounted for 10% or more of the Company’s total purchases and its outstanding accounts payable balances as at balance sheets, are presented as follows:
For the six months ended June 30, 2024, the vendors who accounted for 10% or more of the Company’s total purchases and its outstanding accounts payable balances as at balance sheets, are presented as follows:
For the three months ended June 30, 2023, the vendors who accounted for 10% or more of the Company’s total purchases and its outstanding accounts payable balances as at balance sheets, are presented as follows:
For the six months ended June 30, 2023, the vendors who accounted for 10% or more of the Company’s total purchases and its outstanding accounts payable balances as at balance sheets, are presented as follows:
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.
As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates.
The Company’s interest-rate risk arises from bank loans. The Company manages interest rate risk by varying the borrowing and maturity dates of variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of June 30, 2024 and December 31, 2023, all bank loans were at fixed rates.
The reporting currency of the Company is US$. To date the majority of the revenue and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB. As a result, the Company is exposed to foreign exchange risk as its revenue and results of operations may be affected by fluctuations in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenue and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose the Company to substantial market risk.
The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operation may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. A slowdown in the growth of the PRC’s economy might have an adverse effect on our current business and future developments, if we are not able to gain increasing demand for our smart machine from the development of the general economy.
The Company’s operations in the PRC are subject to special considerations. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |