CONCENTRATIONS AND RISKS

9 Months Ended

Sep. 30, 2018

NOTE 13 – CONCENTRATIONS AND RISKS

The Company maintains certain bank accounts in the PRC and BVI, which are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. The cash and restricted cash balance held in the PRC bank accounts was

$28,709,891

and $17,632,270 as of September 30, 2018 and December 31, 2017, respectively. The cash balance held in the BVI bank accounts was $Nil as of September 30, 2018 and December 31, 2017. As of September 30, 2018, the Company held $19,670 of cash balances within the United States. As of December 31, 2017, the Company held $266,012 of cash balances within the United States, which was $16,012 in excess of FDIC insurance limits of $250,000.

As of September 30, 2018 and December 31, 2017, almost 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenues were derived from its subsidiaries located in the PRC.

The Company’s principal raw material used during the year was gold, which accounted for almost 100% of its total purchases for the three and nine months ended September 30, 2018 and 2017. The gold purchased by the Company was solely from the Shanghai Gold Exchange, the largest gold trading platform in the PRC.

No customer accounted for more than 10% of annual sales for the three and nine months ended September 30, 2018 and 2017.