Note 10 – Business Concentration and Risks

Major customers

One customer accounted for 46% of the total accounts receivable as of September 30, 2023 and four customers accounted for 11% of the total accounts receivable as of December 31, 2022. One customer accounted for 30% of the total revenue for the nine months ended September 30, 2023, and three customers accounted for 43% of total revenue for the nine months ended September 30, 2022.

Major vendors

No major vendor accounted more than 10% of total purchases during the nine months ended September 30, 2023, One vendor, Tianjin Guanglee, accounted for 0% of total accounts payable at September 30, 2022; and this vendor accounted for 24% of total purchases during the nine months ended September 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.