CONCENTRATIONS OF RISK

12 Months Ended

Dec. 31, 2021

CONCENTRATIONS OF RISK

9. Concentrations Of Risk

9. CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the year ended December 31, 2021, one customer exceeding 10% of the Company’s revenue. This customer accounted for 100% of the Company’s revenue amounting to $598,486 with $0 accounts receivable at December 31, 2021.

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.

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

(b) Major vendor

For the years ended December 31, 2021 and 2020, one vender represented more than 10% of the Company’s cost of revenue. This vendor accounted for 100% and 92% of the Company’s cost of revenue amounting to $435,269 and $1,052,857 with $0 of accounts payable at December 31, 2021 and 2020, respectively.

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.