Note 9 – Business Concentration and Risks

Major customers

Two customers accounted for 32% of the total accounts receivable as of June 30, 2023 and four customers accounted for 11% of the total accounts receivable as of December 31, 2022. Two customers accounted for 37% of the total revenue for the six months ended June 30, 2023 and three customers accounted for 54% of total revenue for the six months ended June 30, 2022.

Major vendors

No major vendor accounted more than 10% of total purchases during the six months ended June 30, 2023. One vendor, Tianjin Guanglee, accounted for 0% of total accounts payable at June 30, 2022; and this vendor accounted for 24% of total purchases during the six months ended June 30, 2022. Of subsequent note, Tianjin Guanglee was once owned by the Chief Executive Officer, as fully disclosed in our annual report in 2017. In 2018, the Chief Executive Officer transferred ownership of the entity to an unrelated third party in a transaction not considered a related party transaction per the relevant guidelines.