20.	Concentration of risk

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. As of

June 30, 2020,

substantially all of the Company's cash and cash equivalents were held by major financial institutions located in China. The Company believes that these financial institutions located in China are of high credit quality.

For accounts receivable, the Company extends credit based on an evaluation of the customer's financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the Company delegated a team responsible for credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Company reviews the recoverable amount of each individual receivable at each balance sheet date to ensure that adequate allowances are made for doubtful accounts. In this regard, the Company considers that the Company's credit risk for accounts receivable is significantly reduced

Concentration of customers

The following tables summarized the information about the Company's concentration of customers for the

six

and

three

months ended

June 30, 2020

and

2019,

respectively:

	Customer A	Customer B	Customer C	Customer D	Customer E

Six Months Ended June 30, 2020
Revenues, customer concentration risk	*	*	*	*	*

Three Months Ended June 30, 2020
Revenues, customer concentration risk	*	*	*	*	*

Six Months Ended June 30, 2019
Revenues, customer concentration risk	13%	*	-	-	-

Three Months Ended June 30, 2019
Revenues, customer concentration risk	11%	*	-	-	-

As of June 30, 2020
Accounts receivable, customer concentration risk	27%	*	17%	19%	16%

As of December 31, 2019
Accounts receivable, customer concentration risk	57%	13%	12%	-	-

* Less than

10%.

transaction incurred for the reporting period/no balance existed as of the reporting date.

Concentration of suppliers

The following tables summarized the information about the Company's concentration of suppliers for the

six

and

three

months ended

June 30, 2020

and

2019,

respectively:

		Supplier A

Six Months Ended June 30, 2020
Cost of revenues, supplier concentration risk		78%

Three Months Ended June 30, 2020
Cost of revenues, supplier concentration risk		81%

Six Months Ended June 30, 2019
Cost of revenues, supplier concentration risk		90%

Three Months Ended June 30, 2019
Cost of revenues, supplier concentration risk		91%