CONCENTRATIONS OF RISK

12 Months Ended

Jun. 30, 2022

CONCENTRATIONS OF RISK

CONCENTRATIONS OF RISK

12. CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the years ended June 30, 2022 and 2021, the individual customer who accounts for 10% or more of the Company’s revenues and its outstanding receivable balances as at year-end dates, are presented as follows:

	Year ended June 30, 2022						June 30, 2022
Customers	Revenues		Percentage of revenues				Accounts receivable
Customer A	$	94,941		84	%	Total:	$	-

	Year ended June 30, 2021						June 30, 2021
Customers	Revenues		Percentage of revenues				Accounts receivable
Customer A	$	70,392		72	%		$	-
Customer B		24,134		24	%			-
Total:	$	94,526		96	%	Total:	$	-

These customers are located in Hong Kong.

(b) Credit risk

Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

(c) Exchange rate risk

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in HK$ and a significant portion of the assets and liabilities are denominated in HK$. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and HK$. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.