SIGNIFICANT CONCENTRATION

9 Months Ended

Sep. 30, 2021

SIGNIFICANT CONCENTRATION

3. SIGNIFICANT CONCENTRATION

3. SIGNIFICANT CONCENTRATION

Financial instruments which potentially expose the Company to concentrations of credit risk consist of cash and accounts receivable as of September 30, 2021 and December 31, 2020. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.

The major part of the Company’s cash at September 30, 2021 and December 31, 2020 is maintained at financial institutions in the Malaysia which provide insurance on deposit for up to MYR 250,000 for each depositor in a bank. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area.

Geographic Concentration

The Company’s operation and its major assets are also located in the Malaysia. The Company’s customers and suppliers are mainly located in Malaysia.

The Company depends on few suppliers for its products sold. Accordingly, the Company has a concentration risk related to these suppliers. Failure to maintain existing relationships with the suppliers or to establish new relationships in the future could negatively affect the Company’s ability to obtain products sold to customers in a timely manner. If the Company is unable to obtain ample supply of products from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues.

Sales revenues derived from customers that accounted for more than 10% of total sales revenues as follows:

Customers Sales Concentrations (10% or more)
	For the Nine Months Ended
Customers	September 30, 2021		%			September 30, 2020		%
Ma Yu Fen	$	114,727		10	%	$	-		0	%
Gao Xue Mei	$	-		0	%	$	499,433		19	%

Accounts receivable derived from customers that accounted for more than 10% of total accounts receivable as follows:

	September 30,					December 31,
Customers	2021		%			2020		%
Aura Secret Sdn. Bhd.	$	15,726		46	%	$	22,301		58	%
Management Nutrition Solution Sdn. Bhd.		12,478		36	%		15980		42	%
Global Patronage Sdn. Bhd.		6,355		18	%		-
		34,559					38,281

Purchases derived from suppliers that accounted for more than 10% of total purchases as follows:

Suppliers Purchases Concentrations (10% or more)
	For the Nine Months Ended
Suppliers	September 30, 2021		%			September 30, 2020		%
Bio Life Neutraceuticals Sdn. Bhd.	$	23,718		56	%	$	1,096,529		90	%
Global Patronage Sdn. Bhd.		9,279		22	%		-		0	%
Bio Naturecare Marketing Sdn. Bhd.		8,101		19	%		-		0	%

Accounts payable derived from suppliers that accounted for more than 10% of total accounts payable as follows:

	September 30,					December 31,
Suppliers	2021		%			2020		%
Bio Life Neutraceuticals Sdn Bhd	$	-		0	%	$	282,997		96	%
Bio Naturecare Marketing Sdn Bhd		18,108		100	%		11,337		4	%
		18,108					294,334