13. Concentrations of Risk

12 Months Ended

Dec. 31, 2019

Risks and Uncertainties [Abstract]

Concentrations of Risk

NOTE–13       CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a)       Major customers

For the years ended December 31, 2019 and 2018, the customers 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 December 31, 2019				December 31, 2019
Customer		Revenues		Percentage of revenues		Accounts receivable
Customer A		$	332,601	50%		$	34,892
Customer B			248,476	37%			20,601
	Total:	$	581,077	87%	Total:	$	55,493

		Year ended December 31, 2018				December 31, 2018
Customer		Revenues		Percentage of revenues		Accounts receivable
Customer A		$	352,628	48%		$	25,776
Customer B			258,689	35%			17,151
	Total:	$	611,317	83%	Total:	$	42,927

All customers are located in Hong Kong.

(b)       Major vendors

For the year ended December 31, 2019, one vender represented more than 10% of the Company’s operating cost. This vendor accounted for 11% of the Company’s operating cost amounting to $64,295 with $18,555 -of accounts payable at December 31, 2019.

For the year ended December 31, 2018, one vender represented more than 10% of the Company’s operating cost. This vendor accounted for 12% of the Company’s operating cost amounting to $72,211 with $5,230 of accounts payable at December 31, 2018.

All vendors are located in Hong Kong.

(c)       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.

(d) Interest rate risk

As the Company has no significant interest-bearing assets, the Company’s income and operating cash flows are substantially independent of changes in market interest rates.

The Company’s interest-rate risk arises from finance lease. The Company manages interest rate risk by varying the issuance and maturity dates variable rate debt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of December 31, 2019 and 2018, borrowing under finance lease was at fixed rate.