CONCENTRATIONS OF RISK

9 Months Ended

Sep. 30, 2021

CONCENTRATIONS OF RISK

NOTE 6 - CONCENTRATIONS OF RISK

NOTE – 6 CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the three months ended September 30, 2021, there is one single customer who accounts for 100% of the Company’s revenues totaling $97,651.

For the three months ended September 30, 2020, there is one single customer who accounts for 100% of the Company’s revenues totaling $542,900 and its outstanding receivable balances of $543,639 as at period-end date.

For the nine months ended September 30, 2021, there is one single customer who accounts for 100% of the Company’s revenues totaling $565,824.

For the nine months ended September 30, 2020, there is one single customer who accounts for 87% or more of the Company’s revenues totaling $818,008 and its outstanding receivable balances of $543,639 as at period-end date.

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

(b) Major vendor

For the three months ended September 30, 2021, there is one single vendor who accounts for 100% of the Company’s purchases totaling $81,348.

For the three months ended September 30, 2020, there is one single customer who accounts for 100% of the Company’s purchases totaling $271,443 and its outstanding receivable balances of $271,812 as at period-end date.

For the nine months ended September 30, 2021, there is one single customer who accounts for 100% of the Company’s purchases totaling $407,903.

	Nine months ended September 30, 2020						September 30, 2020
Vendors	Purchases		Percentage of purchases				Accounts payable
Vendors B	$	515,657		85	%		$	271,812
Vendors C		88,909		15	%			-
Total:	$	604,566		100	%	Total:	$	271,812

The Company’s vendor is 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.