Annual report pursuant to Section 13 and 15(d)

Certain Risks and Concentrations

v3.6.0.2
Certain Risks and Concentrations
12 Months Ended
Dec. 31, 2016
Certain Risks and Concentrations [Abstract]  
CERTAIN RISKS AND CONCENTRATIONS

NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS

 

Credit risk

 

At December 31, 2016 and 2015, 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

 

No customer accounted for 10% or more of the Company’s sales during the years ended December 31, 2016, 2015 and 2014.

 

No customer accounted for 10% or more of the Company’s total outstanding accounts receivable at December 31, 2016 and 2015.

 

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 years ended December 31, 2016, 2015 and 2014.

 

    Year Ended December 31,  
Supplier   2016     2015     2014  
A (Hong Fa Shipping Limited, a related party)     44 %     30 %     23 %
B (Hai Yi Shipping Limited, a related party)     25 %     14 %     *  
C     13 %     *       *  
D (PT Avona Mina Lestari, a related party)     *       34 %     *  
E (Hong Long, a related party)     *       11 %     44 %
F     *       *       10 %

 

* less than 10%

 

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 95.9% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2016. 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 99.2% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2015.