Annual report pursuant to Section 13 and 15(d)

Certain Risks and Concentrations

v3.21.2
Certain Risks and Concentrations
12 Months Ended
Dec. 31, 2020
Risks and Uncertainties [Abstract]  
CERTAIN RISKS AND CONCENTRATIONS

NOTE 14 – CERTAIN RISKS AND CONCENTRATIONS

 

Credit risk

 

At December 31, 2020 and 2019, 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 has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

 

Major customers

 

    Year Ended December 31,  
Customer   2020     2019     2018  
A     14 %     19 %     17 %
B     13 %    
*
     
*
 
C     11 %     15 %     19 %
D     10 %    
*
     
*
 
E    
*
     
*
      14 %

 

* less than 10%

 

Six customers, whose outstanding accounts receivable accounted for 10% or more of the Company’s total outstanding accounts receivable at December 31, 2020, accounted for 87.4% of the Company’s total outstanding accounts receivable at December 31, 2020. Three customers, whose outstanding accounts receivable accounted for 10% or more of the Company’s total outstanding accounts receivable at December 31, 2019, accounted for 74.9% of the Company’s total outstanding accounts receivable at December 31, 2019. 

 

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, 2020, 2019 and 2018.

 

    Year Ended December 31,  
Supplier   2020     2019     2018  
A     32 %     44 %     25 %
Global Deep Ocean (equity investment)     15 %    
*
     
*
 
C     13 %    
*
     
*
 
D     10 %    
*
     
*
 
E    
*
      16 %     24 %
F    
*
     
*
      17 %

 

* less than 10%

 

Two 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, 2020, accounted for 76.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2020. Two 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, 2019, accounted for 76.0% of the Company’s total outstanding accounts payable and accounts payable – related parties at December 31, 2019.