XML 32 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Risks and Uncertainties
12 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
RISKS AND UNCERTAINTIES

9. RISKS AND UNCERTAINTIES

 

a) PRC Regulations

 

There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or foreign funded enterprises under PRC laws and, as a result, we are required to comply with PRC laws and regulations related to foreign persons and foreign funded enterprises. These laws and regulations are sometimes vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The effectiveness of newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business.

 

b) Major customers and suppliers

 

No customer accounted for more than 10% of the Company's sales for the year ended December 31, 2019. There were two customers, Chengdu Hongkor Electromechanical Equipment Co., Ltd. ("HongKor"), and Qifeng Fruit Industry Co., Ltd., who accounted for 40.96% and 10.17% respectively of the Company's sales for the year ended December 31, 2018,

 

Sales to our five largest customers accounted for approximately 15.6% and 61.56% of our net sales during the years ended December 31, 2019 and 2018, respectively.

 

There was no suppliers accounted for more than 10% of our purchase during the year ended December 31, 2019. Five top suppliers accounted for 14.42% of our purchases during the year ended December 31, 2019.

 

In 2018, the company's suppliers were dispersed, no one occupied more than 1% of the total purchases. The first two largest suppliers were 0.99% during the year ended December 31, 2018.