CONCENTRATIONS OF RISK

12 Months Ended

Dec. 31, 2020

CONCENTRATIONS OF RISK

NOTE 8 - CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the year ended December 31, 2020, there was one single customer exceeding 10% of the Company’s revenue. This customer accounted for 94% of the Company’s revenue amounting to $1,892,306 with $0 accounts receivable at December 31, 2020.

For the year ended December 31, 2019, there was no single customer exceeding 10% of the Company’s revenue.

All of the Company’s customers are located in Hong Kong.

(b) Major vendor

For the years ended December 31, 2020 and 2019, one vender represented more than 10% of the Company’s operating cost. This vendor accounted for 92% and 97% of the Company’s operating cost amounting to $1,052,857 and $112,618 with $0 of accounts payable at December 31, 2020 and 2019, respectively.

All of the Company’s vendors are located in Hong Kong.

(c) 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.

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