Quarterly report pursuant to Section 13 or 15(d)

CONCENTRATIONS

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CONCENTRATIONS
9 Months Ended
Sep. 30, 2017
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 15 - CONCENTRATIONS

 

Customers

 

The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenue for the three and nine months ended September 30, 2017 and 2016.

 

   

Three Months Ended

September 30,

   

Nine Months Ended

 September 30,

 
Customer   2017     2016     2017     2016  
A (Beijing Nanshan, a related party)     *       33 %     20 %     33 %
B (Shanghai Daopei, a related party)     *       38 %     *       38 %
C (Hebei Yanda, a related party)     *       29 %     *       29 %
D     27 %     0       18 %     0  
E     16 %     0       11 %     0  
F     13 %     0       *       0  

 

* Less than 10%

 

Two customers, one of which was a related party, accounted for 86.1% of the Company’s total outstanding accounts receivable and tenants receivable at September 30, 2017.

 

One customer, who was a related party, accounted for 100% of the Company’s total outstanding accounts receivable at December 31, 2016.

 

Suppliers

 

No supplier accounted for 10% or more of the Company’s purchase during the three and nine months ended September 30, 2017 and 2016.

 

Two suppliers accounted for 89.4% of the Company’s total outstanding accounts payable at September 30, 2017.

 

No supplier accounted for 10% of the Company’s total outstanding accounts payable at December 31, 2016.

 

Concentrations of credit risk

 

At September 30, 2017 and December 31, 2016, cash balances in the PRC are $128,301 and $2,525,630, respectively, are uninsured. The Company has not experienced any losses in PRC bank accounts and believes it is not exposed to any risks on its cash in PRC bank accounts.

 

The Company maintains its cash in United States bank and financial institution deposits that at times may exceed federally insured limits. At September 30, 2017 and December 31, 2016, the Company’s cash balances in United States bank accounts had approximately $0 and $80,000 in excess of the federally-insured limits, respectively. The Company has not experienced any losses in its United States bank accounts through and as of the date of this report.