NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS

Credit risk

At September 30, 2021 and December 31, 2020, the Company’s cash included bank deposits in accounts maintained within the PRC and Hong Kong. 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, 2021 and 2020.

Three customers accounted for 10% or more of the Company’s total accounts receivable at September 30, 2020, for a total of 36.4% of accounts receivable. At December 31, 2020, six customers accounted for 10% or more of the Company’s accounts receivable for a total of 87.4%. 

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, 2021 and 2020.

Two suppliers, whose accounts payable accounted for 10% or more of the Company’s total accounts payable and accounts payable – related parties at September 30, 2021, accounted for 80.8% of the Company’s total accounts payable and accounts payable – related parties at September 30, 2021.

Three suppliers, whose accounts payable accounted for 10% or more of the Company’s total accounts payable and accounts payable – related parties at September 30, 2020, accounted for 68.6% of the Company’s total accounts payable and accounts payable – related parties at September 30, 2020.