Quarterly report pursuant to Section 13 or 15(d)

Certain Risks and Concentrations

v3.7.0.1
Certain Risks and Concentrations
3 Months Ended
Mar. 31, 2017
Certain Risks and Concentrations [Abstract]  
CERTAIN RISKS AND CONCENTRATIONS

NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS

 

Credit risk

 

At March 31, 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 months ended March 31, 2017 and 2016.

 

    Three Months Ended 
March 31,
 
Customer   2017     2016  
A     13 %     *  
B     13 %     *  

 

*less than 10%

 

No customer accounted for 10% or more of the Company’s total outstanding accounts receivable at March 31, 2017 and December 31, 2016.

 

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 months ended March 31, 2017 and 2016.

 

    Three Months Ended
March 31,
 
Supplier   2017     2016  
A (Hong Fa Shipping Limited, a related party)     38 %     36 %
B (Hong Long, a related party)     25 %     *  
C (Hai Yi Shipping Ltd., a related party)     20 %     42 %
D     14 %     *  
E (PT Avona Mina Lestari, a related party)     *       17 %

 

*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 March 31, 2017, accounted for 87.4% of the Company’s total outstanding accounts payable and accounts payable – related parties at March 31, 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 95.9% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2016.