NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS

 

Credit risk

 

At September 30, 2017 and December 31, 2016, the Company’s cash included bank deposits in accounts maintained within the PRC and Hong Kong where there are currently no rules or regulations in place for obligatory insurance to cover bank deposits in event of bank failure. However, the Company does not experience any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. 

 

Major customers

 

The following table sets forth information as to each customer that accounted for 10% or more of the Company’s sales for the three and nine months ended September 30, 2017 and 2016.

 

		Three Months Ended  September 30,								Nine Months Ended  September 30,
Customer		2017				2016				2017				2016
A			*				19	%			*				11	%
B			*				12	%			*				*
C			*				12	%			*				*
D			20	%			*				11	%			*
E			10	%			*				*				*

 

* less than 10%

 

Major suppliers

 

The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three and nine months ended September 30, 2017 and 2016.

 

		Three Months Ended  September 30,								Nine Months Ended  September 30,
Supplier		2017				2016				2017				2016
A (Hai Yi Shipping Limited, a related party)			*				84	%			10	%			41	%
B (Haifeng Dafu Enterprise Co., Ltd., a related party)							14	%
C (Hong Fa Shipping Limited, a related party)			*				*				30	%			44	%
D (Hong Long, a related party)			13	%			*				29	%			*
E			64	%			*				*				*

 

* less than 10%

  

Four suppliers, whose outstanding accounts payable accounted for 10% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at September 30, 2017, accounted for 91.8% of the Company’s total outstanding accounts payable and accounts payable – related parties at September 30, 2017.

 

Three suppliers, whose outstanding accounts payable accounted for 10% or more of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2016, accounted for 95.7% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2016.