CONCENTRATIONS OF RISK

3 Months Ended

Jun. 30, 2024

NOTE 12 — CONCENTRATIONS OF RISK

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the three months ended June 30, 2024, there was no single customer who contributed in excess of 10% of the Company’s revenues.

For the three months ended June 30, 2023, three customers contributed in excess of 10% of the Company’s revenues and its outstanding receivable balances as at period-end dates, are presented as follows:

Schedule of concentration risks
	Three months ended June 30, 2023				June 30, 2023
Customers	Revenues		Percentage of revenues		Accounts receivable

Customer A	$	188		32%	$	–
Customer B		140		24%		–
Customer C		128		22%		–

Total:	$	456		78%	$	–

All of the Company’s customers are located in Hong Kong.

(b)	Major vendor

For the three months ended June 30, 2024, there was no single vendor who represented more than 10% of the Company’s purchase cost.

For the three months ended June 30, 2023, there was no single vendor who represented more than 10% of the Company’s purchase cost.

All of the Company’s vendors are located in Hong Kong.

(c)	Economic and political risk

The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations. The Company may also be exposed to the broader global economic conditions.

The present global economic climate with rising global tensions, rising costs and fuel shortage which potentially could escalate and result in global inflation may also impact the Company’s business, financial condition, and results of operations.

(d)	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 HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

(e)	Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. This is presently managed through shareholder financial support. If future cash flows are fairly uncertain, the liquidity risk increases.

DH ENCHANTMENT, INC. 10-Q