Note 18 - Concentration of Risk

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

18. 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, accounts receivable and short-term loans to unrelated parties. As of December 31, 2023, 51% of the Company’s cash and cash equivalents were held by financial institutions located in the United States of America, and the remaining 49% was held by major financial institutions located in the PRC. The Company believes that these financial institutions located in the PRC and the United States of America are of high credit quality. For accounts receivable and short-term loans to unrelated parties, the Company extends credit based on an evaluation of the customer’s or other parties’ 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 its credit risk for accounts receivable and short-term loans to unrelated parties are significantly reduced.

Concentration of customers

The following tables summarized the information about the Company’s concentration of customers for the years ended December 31, 2023 and 2022, respectively:

	Customer A		Customer B		Customer C		Customer D		Customer E
Year Ended December 31, 2023
Revenues, customer concentration risk		*		*		*		*		*
Year Ended December 31, 2022
Revenues, customer concentration risk		*		*		*		*		*
As of December 31, 2023
Accounts receivable, customer concentration risk		*		11%		*		56%		19%
As of December 31, 2022
Accounts receivable, customer concentration risk		16%		33%		24%		16%		*

* Less than 10%.

- No 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 years ended December 31, 2023 and 2022, respectively:

	Supplier A		Supplier B		Supplier C		Supplier D
Year Ended December 31, 2023
Cost of revenues, supplier concentration risk		65%		17%		-		*
Year Ended December 31, 2022
Cost of revenues, supplier concentration risk		*		-		57%		20%

* Less than 10%.