CONCENTRATIONS OF RISKS	3 Months Ended
Mar. 31, 2025
Risks and Uncertainties [Abstract]
CONCENTRATIONS OF RISKS	18. CONCENTRATIONS OF RISKS (a) Major customers For the three months ended March 31, 2025, and 2024, no customer accounted for 10% or more of the Company’s total revenues. As of March 31, 2025, one company accounted for approximately 41.5% of the Company’s balance of accounts receivable. As of December 31, 2024, one company accounted for approximately 79.7% of the Company’s balance of accounts receivable. (b) Major vendors For the three months ended March 31, 2025, two vendors accounted for approximately 68.5% and 17.7% of the Company’s total purchases. For the three months ended March 31, 2024, three vendors accounted for approximately 64.2%, 18.2% and 12.6% of the Company’s total purchases, respectively. As of March 31, 2025, two vendors accounted for approximately 61.6% and 32.7% of the Company’s total balance of accounts payable, respectively. As of December 31, 2024, three vendors accounted for approximately 44.3%, 31.8% and 22.9% of the Company’s total balance of accounts payable, respectively. CTA Nutriceuticals (Asia) Sdn Bhd, a related company, accounted for approximately 32.7% and 22.9% of the Company’s total balance of accounts payable as of March 31, 2025 and December 31, 2024, respectively. (c) Commission Expenses to Sales Distributors and Stockists One sales distributor accounted for 14.7% of the Company’s commission expense for the three months ended March 31, 2025. One sales distributor accounted for 19.7% of the Company’s commission expense for the three months ended March 31, 2024. (d) Credit risk As of March 31, 2025, the Company has entrusted Bi Cheng Investment Limited (“Bi Cheng”), a company incorporated and based in the People’s Republic of China (“PRC”) to manage a significant portion of its liquid assets, totaling approximately $23,000,000. These funds are maintained in accounts controlled by Bi Cheng in the PRC. The Company is subject to credit risk arising from the possibility that Bi Cheng may fail to fulfill its contractual obligations, including the safekeeping and liquidity of the entrusted funds. In assessing the risk, management considers the financial condition and reputation of Bi Cheng. While the Company has contractual rights to recover the entrusted funds and conducts periodic monitoring, there can be no assurance that such funds will be fully recoverable in a timely manner due to uncertainties in the legal, regulatory, and foreign exchange frameworks in the PRC. These uncertainties may affect the Company’s ability to access or repatriate the funds, particularly in adverse economic or political conditions. No allowance for credit losses was recorded as of March 31, 2025, as management believes that the risk of loss is not probable based on current information. However, the Company continues to monitor developments and may revise its assessment should conditions materially change. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2025, and December 31, 2024, $572,440 and $2,030,048 were deposited with financial institutions, respectively and $369,429 and $1,806,401 of these balances were not covered by deposit insurance, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for credit loss based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable. (e) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM, CNY and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. AGAPE ATP CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Currency expressed in United States Dollars (“US$”), except for number of shares)

CONCENTRATIONS OF RISKS

3 Months Ended

Mar. 31, 2025

18. CONCENTRATIONS OF RISKS

(a) Major customers

For the three months ended March 31, 2025, and 2024, no customer accounted for 10% or more of the Company’s total revenues.

As of March 31, 2025, one company accounted for approximately 41.5% of the Company’s balance of accounts receivable. As of December 31, 2024, one company accounted for approximately 79.7% of the Company’s balance of accounts receivable.

(b) Major vendors

For the three months ended March 31, 2025, two vendors accounted for approximately 68.5% and 17.7% of the Company’s total purchases. For the three months ended March 31, 2024, three vendors accounted for approximately 64.2%, 18.2% and 12.6% of the Company’s total purchases, respectively.

As of March 31, 2025, two vendors accounted for approximately 61.6% and 32.7% of the Company’s total balance of accounts payable, respectively. As of December 31, 2024, three vendors accounted for approximately 44.3%, 31.8% and 22.9% of the Company’s total balance of accounts payable, respectively.

CTA Nutriceuticals (Asia) Sdn Bhd, a related company, accounted for approximately 32.7% and 22.9% of the Company’s total balance of accounts payable as of March 31, 2025 and December 31, 2024, respectively.

One sales distributor accounted for 14.7% of the Company’s commission expense for the three months ended March 31, 2025. One sales distributor accounted for 19.7% of the Company’s commission expense for the three months ended March 31, 2024.

(d) Credit risk

As of March 31, 2025, the Company has entrusted Bi Cheng Investment Limited (“Bi Cheng”), a company incorporated and based in the People’s Republic of China (“PRC”) to manage a significant portion of its liquid assets, totaling approximately $23,000,000. These funds are maintained in accounts controlled by Bi Cheng in the PRC.

The Company is subject to credit risk arising from the possibility that Bi Cheng may fail to fulfill its contractual obligations, including the safekeeping and liquidity of the entrusted funds. In assessing the risk, management considers the financial condition and reputation of Bi Cheng.

While the Company has contractual rights to recover the entrusted funds and conducts periodic monitoring, there can be no assurance that such funds will be fully recoverable in a timely manner due to uncertainties in the legal, regulatory, and foreign exchange frameworks in the PRC. These uncertainties may affect the Company’s ability to access or repatriate the funds, particularly in adverse economic or political conditions.

No allowance for credit losses was recorded as of March 31, 2025, as management believes that the risk of loss is not probable based on current information. However, the Company continues to monitor developments and may revise its assessment should conditions materially change.

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2025, and December 31, 2024, $572,440 and $2,030,048 were deposited with financial institutions, respectively and $369,429 and $1,806,401 of these balances were not covered by deposit insurance, respectively. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable 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 credit loss based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable.

(e) Exchange rate risk

The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM, CNY and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)