Annual report pursuant to Section 13 and 15(d)

Certain Risks and Concentrations

Certain Risks and Concentrations

12 Months Ended

Dec. 31, 2014

Certain Risks and Concentrations [Abstract]

NOTE 15 – CERTAIN RISKS AND CONCENTRATIONS

Credit risk

As of December 31, 2014 and 2013, a substantial portion of the Company’s cash included bank deposits in accounts maintained within the PRC where there is currently no rule or regulation 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 years ended December 31, 2014, 2013 and 2012.

	Years Ended December 31,
Customer	2014		2013		2012
Fujian Xinnong Ocean Fisheries Development Co., Ltd, a related party		*		*		13	%

*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 years ended December 31, 2014, 2013 and 2012.

	Years Ended December 31,
Supplier	2014			2013			2012
A		10	%		22	%		34	%
B (PT Avona Mina Lestari, a related party)		*			26	%		38	%
C (Hong Fa Shipping Limited, a related party)		23	%		23	%		*
D (Hong Long, a related party)		44	%		*			*

*less than 10%

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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