Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Apr. 10, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Ever-Glory International Group, Inc. | ' | ' |
Entity Central Index Key | '0000943184 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $9,978,726 |
Entity Common Stock, Shares Outstanding | ' | 14,781,241 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $27,772,878 | $9,365,958 |
Accounts receivable | 80,317,630 | 68,513,893 |
Inventories | 75,190,197 | 46,038,456 |
Value added tax receivable | 2,620,277 | 2,866,018 |
Other receivables and prepaid expenses | 1,821,695 | 1,910,383 |
Advances on inventory purchases | 6,010,027 | 3,596,860 |
Amounts due from related parties | 1,896,376 | 8,680 |
Total Current Assets | 195,629,080 | 132,300,248 |
LAND USE RIGHT, NET | 2,821,471 | 2,801,472 |
PROPERTY AND EQUIPMENT, NET | 18,370,327 | 16,068,735 |
TOTAL ASSETS | 216,820,878 | 151,170,455 |
CURRENT LIABILITIES | ' | ' |
Bank loans | 53,338,748 | 46,919,680 |
Payable to officers and employees | ' | 2,341,574 |
Accounts payable | 72,855,960 | 49,700,392 |
Accounts payable and other payables - related parties | 4,102,456 | 3,158,814 |
Other payables and accrued liabilities | 16,128,514 | 10,547,190 |
Value added and other taxes payable | 5,399,187 | 4,189,211 |
Income tax payable | 489,307 | 952,652 |
Deferred tax liabilities | 7,391,029 | 3,109,095 |
Derivative liability | ' | 294,000 |
Total Current Liabilities | 159,705,201 | 121,212,608 |
TOTAL LIABILITIES | 159,705,201 | 121,212,608 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock ($.001 par value, authorized 5,000,000 shares, no shares issued and outstanding) | ' | ' |
Common stock ($.001 par value, authorized 50,000,000 shares,14,781,241 and 14,772,270 shares issued and outstanding As of December 30, 2013 and December 31, 2012, respectively) | 14,781 | 14,772 |
Additional paid-in capital | 3,572,157 | 3,552,166 |
Retained earnings | 53,618,026 | 46,774,001 |
Statutory reserve | 10,212,268 | 6,317,715 |
Accumulated other comprehensive income | 8,783,425 | 6,873,170 |
Amounts due from related party | -19,084,980 | -33,573,977 |
Total Stockholders' Equity | 57,115,677 | 29,957,847 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $216,820,878 | $151,170,455 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 14,781,241 | 14,772,270 |
Common stock, shares outstanding | 14,781,241 | 14,772,270 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' |
SALES | $368,078,425 | $279,633,212 |
COST OF SALES | 273,484,086 | 214,577,277 |
GROSS PROFIT | 94,594,339 | 65,055,935 |
OPERATING EXPENSES | ' | ' |
Selling expenses | 51,772,169 | 33,723,088 |
General and administrative expenses | 24,676,303 | 16,248,947 |
Total operating expenses | 76,448,472 | 49,972,035 |
INCOME FROM OPERATIONS | 18,145,867 | 15,083,900 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest income | 1,186,402 | 1,348,646 |
Interest expense | -3,005,579 | -2,103,103 |
Change in fair value of derivative liability | 294,000 | 96,800 |
Other income | 745,322 | 284,310 |
Total other income(expense) | -779,855 | -373,347 |
INCOME BEFORE INCOME TAX EXPENSE | 17,366,012 | 14,710,553 |
INCOME TAX EXPENSE | -6,627,434 | -1,907,611 |
NET INCOME | 10,738,578 | 12,802,942 |
Foreign currency translation gain | 1,910,255 | 385,284 |
COMPREHENSIVE INCOME | $12,648,833 | $13,188,226 |
EARNINGS PER SHARE: | ' | ' |
Basic and diluted | $0.73 | $0.87 |
Weighted average number of shares outstanding | ' | ' |
Basic and diluted | 14,778,080 | 14,767,253 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock | Additional paid-in capital | Retained Earnings, Unrestricted | Retained Earnings, Statutory Reserve | Accumulated other comprehensive income | Amounts due from related party |
Beginning Balance at Dec. 31, 2011 | $50,323,790 | $14,761 | $3,532,369 | $34,976,853 | $5,311,921 | $6,487,886 | ' |
Beginning Balance, Shares at Dec. 31, 2011 | ' | 14,760,873 | ' | ' | ' | ' | ' |
Stock issued for compensation | 19,808 | 11 | 19,797 | ' | ' | ' | ' |
Stock issued for compensation, Shares | ' | 11,397 | ' | ' | ' | ' | ' |
Net income | 12,802,942 | ' | ' | 12,802,942 | ' | ' | ' |
Transfer to reserve | ' | ' | ' | -1,005,794 | 1,005,794 | ' | ' |
Cash received from related party to repay amounts under counter guarantee agreement (Note 13) | -33,573,977 | ' | ' | ' | ' | ' | -33,573,977 |
Foreign currency translation gain | 385,284 | ' | ' | ' | ' | 385,284 | ' |
Balance at Dec. 31, 2012 | 29,957,847 | 14,772 | 3,552,166 | 46,774,001 | 6,317,715 | 6,873,170 | -33,573,977 |
Balance, Shares at Dec. 31, 2012 | ' | 14,772,270 | ' | ' | ' | ' | ' |
Stock issued for compensation | 20,000 | 9 | 19,991 | ' | ' | ' | ' |
Stock issued for compensation, Shares | ' | 8,971 | ' | ' | ' | ' | ' |
Net income | 10,738,578 | ' | ' | 10,738,578 | ' | ' | ' |
Transfer to reserve | ' | ' | ' | -3,894,553 | 3,894,553 | ' | ' |
Cash received from related party to repay amounts under counter guarantee agreement (Note 13) | 14,488,997 | ' | ' | ' | ' | ' | 14,488,997 |
Foreign currency translation gain | 1,910,255 | ' | ' | ' | ' | 1,910,255 | ' |
Balance at Dec. 31, 2013 | $57,115,677 | $14,781 | $3,572,157 | $53,618,026 | $10,212,268 | $8,783,425 | ($19,084,980) |
Balance, Shares at Dec. 31, 2013 | ' | 14,781,241 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $10,738,578 | $12,802,942 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 6,468,807 | 4,961,510 |
Provision for obsolete inventories | 8,043,762 | 3,143,544 |
Change in fair value of derivative liability | -294,000 | -96,800 |
Deferred income tax | 4,164,509 | 629,526 |
Stock-based compensation | 19,996 | 19,809 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -9,590,741 | -17,532,398 |
Inventories | -35,405,694 | -12,043,857 |
Value added tax receivable | 337,102 | -942,408 |
Other receivables and prepaid expenses | -69,488 | -622,788 |
Advances on inventory purchases | -2,041,826 | -1,557,755 |
Amounts due from related parties | -2,714,527 | 16,305,342 |
Accounts payable | 21,202,556 | 8,003,110 |
Accounts payable and other payables- related parties | 917,863 | 415,867 |
Other payables and accrued liabilities | 5,161,972 | 4,386,302 |
Value added and other taxes payable | 1,072,813 | 1,901,804 |
Income tax payable | -506,059 | 580,759 |
Net cash provided by operating activities | 7,505,623 | 20,354,509 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -8,181,327 | -7,649,346 |
Proceeds from sale of property and equipment | 46,386 | ' |
Net cash used in investing activities | -8,134,941 | -7,649,346 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from bank loans | 116,023,547 | 78,588,792 |
Repayment of bank loans | -111,240,579 | -61,088,486 |
Proceeds from payable to officers and employees | ' | 2,340,094 |
Repayment of payable to officers and employees | -2,387,429 | ' |
Cash received from related party to repay amounts under counter-guarantee agreement (Note 13) | 26,552,049 | ' |
Advances to related party under counter guarantee agreement (Note 13) | -10,335,827 | -32,130,420 |
Net cash provided by (used in) financing activities | 18,611,761 | -12,290,020 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 424,477 | 128,234 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 18,406,920 | 543,377 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 9,365,958 | 8,822,581 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 27,772,878 | 9,365,958 |
Non-cash investing and financing activities: | ' | ' |
Accrued interest income on amounts due from related party under counter-guarantee agreement (Note 13) | 1,032,380 | 1,262,701 |
Cash paid during the period for: | ' | ' |
Interest paid | 3,005,579 | 2,103,103 |
Income taxes paid | $2,725,126 | $876,293 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization and Basis of Presentation [Abstract] | ' | |
ORGANIZATION AND BASIS OF PRESENTATION | ' | |
NOTE 1 | ORGANIZATION AND BASIS OF PRESENTATION | |
Ever-Glory International Group, Inc. (the “Company”), together with its subsidiaries, is an apparel manufacturer, supplier and retailer in The People's Republic of China ("China or "PRC"), with a wholesale segment and a retail segment. The Company’s wholesale business consists of recognized brands for department and specialty stores located in China, Europe, Japan and the United States. The Company’s retail business consists of flagship stores and store-in-stores for the Company’s own-brand products. The following are the Company’s subsidiaries as of December 31, 2013: | ||
Perfect Dream Limited (“Perfect Dream”), a wholly-owned subsidiary of Ever-Glory, was incorporated in the British Virgin Islands in 2004. | ||
Ever-Glory International Group (HK) Ltd. (“Ever-Glory HK”), a wholly-owned subsidiary of Perfect Dream, was incorporated in Samoa in 2009. Ever-Glory HK is principally engaged in the import and export of apparel, fabric and accessories. | ||
Goldenway Nanjing Garments Co. Ltd. (“Goldenway”), a wholly-owned subsidiary of Perfect Dream, was incorporated in the PRC in 1993. | ||
Nanjing Catch-Luck Garments Co, Ltd. (“Catch-Luck”), a wholly-owned subsidiary of Perfect Dream, was incorporated in the PRC in 1995. | ||
Nanjing New-Tailun Garments Co. Ltd. (“New-Tailun’), a wholly-owned subsidiary of Perfect Dream, was incorporated in the PRC in 2006. | ||
Ever-Glory International Group Apparel Inc. (“Ever-Glory Apparel”), a wholly-owned subsidiary of Goldenway, was incorporated in the PRC in 2009. | ||
Shanghai LA GO GO Fashion Company Limited (“Shanghai LA GO GO”), a wholly-owned subsidiary of Ever-Glory Apparel, was incorporated in the PRC in 2008. | ||
Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”), a wholly-owned subsidiary of Ever-Glory Apparel, was incorporated in the PRC in 2012. | ||
Jiangsu LA GO GO Fashion Company Limited (“Jiangsu LA GO GO”), a joint venture of Ever-Glory Apparel and Catch-Luck, was incorporated in the PRC in 2013. | ||
Shanghai Ya Lan Fashion Company Limited (“Ya Lan”), a wholly-owned subsidiary of Shanghai LA GO GO, , was incorporated in the PRC in 2014. | ||
Xizang He Meida Trading Company Limited (“He Meida”), a wholly-owned subsidiary of Ever-Glory Apparel, was incorporated in the PRC in 2014. | ||
The Company’s wholesale operations are provided primarily through the Company’s PRC subsidiaries, Goldenway, Catch-Luck, New Tailun, Ever-Glory Apparel, TaiXin and the Company’s Samoa subsidiary, Ever-Glory HK. The Company’s retail operations are provided through its subsidiaries, Shanghai La Go Go, Jiangsu La Go Go, Ya Lan and He Meida. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation | |||
The consolidated financial statements include Ever-Glory and its subsidiaries, and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |||
Use of Estimates and Assumptions | |||
In preparing the consolidated financial statements in conformity with GAAP, management makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Management believes that the estimates utilized in preparing the financial statements are reasonable and prudent based on the best information available at the time the estimates are made. Actual results could differ from these estimates. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents include cash on hand and demand deposits with banks with original maturities within three months. | |||
Accounts Receivable | |||
The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of the credit history of its customers and current relationships with them. The Company writes off accounts receivable when amounts are deemed uncollectible. | |||
As of December 31, 2013 and 2012, the Company considers all its accounts receivable to be collectable and no provision for doubtful accounts has been made in the consolidated financial statements. | |||
Inventories | |||
Wholesale inventories are stated at lower of cost or market value, cost being determined on a specific identification method. The Company manufactures products upon receipt of orders from its customers. All products must pass the customers’ quality assurance procedures before delivery. Therefore, products are rarely returned by customers after delivery. | |||
Retail inventories are stated at the lower of average cost or market value, cost being determined on a specific identification method. The Company records an allowance for slow-moving or obsolete materials and finished goods aged more than one year. | |||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. | |||
Depreciation is provided on a straight-line basis, less estimated residual value, over the assets’ estimated useful lives. The estimated useful lives are as follows: | |||
Property and plant | 15-20 Years | ||
Leasehold improvements | 10 Months to 2 Years | ||
Machinery and equipment | 10 Years | ||
Office equipment and furniture | 3-5 Years | ||
Motor vehicles | 5 Years | ||
Land Use Rights | |||
All land in the PRC is owned by the government and cannot be sold to any individual or company. However, the government may grant a “land use right” to occupy, develop and use land. The Company records land use rights obtained as intangible assets at cost, which is amortized evenly over the grant period of 50 years. | |||
Long-Lived Assets | |||
Long-lived assets, property, equipment and land use rights held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. There were no impairments of long-lived assets as of December 31, 2013. | |||
Financial Instruments | |||
Management has estimated that the carrying amounts of non-related party financial instruments approximate their fair values due to their short-term maturities. The fair value of amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions. | |||
Fair Value Accounting | |||
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: | |||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||
At December 31, 2013, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
The Company has adopted ASC 825-10 “Financial Instruments”, which allows an entity to choose to measure certain financial instruments and liabilities at fair value on a contract-by-contract basis. Subsequent fair value measurement for the financial instruments and liabilities an entity chooses to measure will be recognized in earnings. | |||
Derivative Financial Instruments | |||
From time to time, the Company uses derivative financial instruments to manage its exposure to foreign currency risks arising from operational activities. The Company does not hold or issue derivative instruments for trading purposes. Generally, the derivatives do not qualify for hedge accounting. Such derivatives generally consist of forward foreign exchange contracts, spot foreign exchange contracts or foreign exchange options to manage exposure to certain foreign currency operating transactions. Derivative financial instruments are recognized initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognized immediately in earnings. | |||
Revenue and Cost Recognition | |||
The Company recognizes wholesale revenue from product sales, net of value added taxes, upon delivery for local sales and upon shipment of the products for export sales, at which time title passes to the customer provided that there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists, the sales price is fixed and determinable and collectability is deemed probable. The Company recognizes wholesale revenue from manufacturing fees charged to buyers for the assembly of garments from materials provided by the buyers upon completion of the manufacturing process and upon delivery to the buyer for local sales and upon shipment of the products for export sales, provided that there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists, the sales price is fixed and determinable and collectability is deemed probable. Retail sales are recognized at the time of register receipt. Retail sales through e-commerce companies are recognized when products are delivered and payments from customers are received (normally, the customers have the right of return before they pay). | |||
Cost of goods sold includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent consistent with the revenue earned. Cost of goods sold excludes warehousing costs, which historically have not been significant. | |||
Local transportation charges and production inspection charges are included in selling expenses and totaled $113,727 and $164,873 in the years ended December 31, 2013 and 2012, respectively. | |||
Research and Development Costs | |||
Research and development costs are expensed as incurred. Research and development costs included in general and administrative expenses for the years ended December 31, 2013 and 2012 amounted to $1,179,918 and $1,109,143, respectively. | |||
Government subsidies | |||
Government subsidies are recognized when received and when all the conditions for their receipt have been met. Subsidies that compensate the Company for expenses incurred are recognized as a reduction of expenses in the consolidated statements of operations. Subsidies that are not associated with expenses are recognized as other income. One of the Company’s PRC subsidiaries received government subsidies of $683,820 and $124,246 for the years ended December 31, 2013 and 2012, respectively, which was recorded in other income when subsidies were received and all the conditions were met. | |||
Income Taxes | |||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. | |||
The Company has adopted ASC 740 "Income Taxes" pursuant to which tax positions are recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not have any material unrecognized tax benefits and the Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. | |||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the years ended December 31, 2013 and 2012. The Company’s effective tax rate differs from the federal statutory rate primarily due to non-deductible expenses, temporary differences, and preferential tax treatment. | |||
The Company files income tax returns with the relevant government authorities in the U.S. and the PRC. The Company is not subject to U.S. federal tax examinations for years before 2007. | |||
Foreign Currency Translation and Other Comprehensive Income | |||
The reporting currency of the Company is the U.S. dollar. The functional currency of Ever-Glory, Perfect Dream and Ever-Glory HK is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Shanghai LA GO GO, Jiangsu LA GO GO and Taixin is the Chinese RMB. | |||
For the subsidiaries whose functional currency is the RMB, all assets and liabilities are translated at the exchange rate on the balance sheet date; equity is translated at historical rates and items in the statement of income are translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity and amounted to $8,783,429 and $6,873,170 as of December 31, 2013 and 2012, respectively. Assets and liabilities at December 31, 2013 and 2012 were translated at RMB6.11 and RMB6.32 to $1.00 respectively. The average translation rates applied to income statement accounts and statement of cash flows for the years ended December 31, 2013 and 2012 were RMB6.20 and RMB6.32 to $1.00, respectively. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. | |||
Translation gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred and amounted to $575,382 and $(134,272) for the years ended December 31, 2013 and 2012, respectively. | |||
Earnings Per Share | |||
The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted EPS shall be adjusted retroactively for all periods presented to reflect that change in capital structure. | |||
Included in the calculation of basic EPS are shares of restricted common stock that have been issued by the Company, all of which are fully vested. Shares of restricted common stock whose issuance is contingent upon the attainment of specified earnings targets are considered outstanding and included in the computation of basic EPS as of the date that all necessary conditions have been satisfied, which is the date upon which the specified amount of earnings has been attained. These shares are to be considered outstanding and included in the computation of diluted EPS as of the beginning of the period in which the conditions are satisfied. If the specified amount of earnings has not been attained as of the end of the reporting period, the contingently issuable shares are excluded from the calculation of basic and diluted EPS. | |||
Segments | |||
The Company applies ASC 280 “Segment Reporting” which establishes standards for operating information regarding operating segments in financial statements and requires selected information for those segments to be presented in financial reports issued to stockholders. ASC 280 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance. The Company reports financial and operating information in two segments: | |||
(1) | Wholesale apparel manufacture and sales | ||
(2) | Retail sales of own-brand clothing | ||
Recently Issued Accounting Pronouncements | |||
The Company reviews new accounting standards as issued. Although some of the accounting standards issued are effective after the end of the Company’s previous fiscal years, and therefore may be applicable to the Company. Management has not identified any standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 3 | INVENTORIES | ||||||||
Inventories at December 31, 2013 and 2012 consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,658,519 | $ | 5,687,612 | |||||
Work-in-progress | 25,862,185 | 7,296,733 | |||||||
Finished goods | 55,664,077 | 36,770,852 | |||||||
87,184,781 | 49,755,197 | ||||||||
Less: allowance for obsolete inventories | (11,994,584 | ) | (3,716,741 | ) | |||||
Total inventories | $ | 75,190,197 | $ | 46,038,456 |
Land_Use_Rights
Land Use Rights | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land Use Rights [Abstract] | ' | ||||||||
LAND USE RIGHTS | ' | ||||||||
NOTE 4 | LAND USE RIGHTS | ||||||||
In 2006, the Company obtained a fifty-year land use right on 112,442 square meters of land in the Nanjing Jiangning Economic and Technological Development Zone. | |||||||||
Land use rights at December 31, 2013 and 2012 consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Land use rights | $ | 3,163,861 | $ | 3,163,861 | |||||
Less: accumulated amortization | (342,390 | ) | (362,389 | ) | |||||
Land use rights, net | $ | 2,821,471 | $ | 2,801,472 | |||||
Amortization expense was $73,385 and $71,183 for the years ended December 31, 2013 and 2012, respectively. Future expected amortization expense for land use rights is approximately $72,000 for each of the next five years. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 5 | PROPERTY AND EQUIPMENT | ||||||||
The following is a summary of property and equipment at December 31, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Property and plant | $ | 16,929,771 | $ | 13,134,192 | |||||
Leasehold improvements | 12,870,846 | 11,499,672 | |||||||
Construction-in-progress | 1,171,788 | 149,514 | |||||||
Equipment and machinery | 3,504,666 | 3,691,593 | |||||||
Office equipment and furniture | 2,096,829 | 1,216,415 | |||||||
Motor vehicles | 926,581 | 535,671 | |||||||
37,500,481 | 30,227,057 | ||||||||
Less: accumulated depreciation | 19,130,154 | 14,158,322 | |||||||
Property and equipment, net | $ | 18,370,327 | $ | 16,068,735 | |||||
Depreciation expense was $6,395,422 and $4,895,736 for the years ended December 31, 2013 and 2012, respectively. |
Payable_to_Officers_and_Employ
Payable to Officers and Employees | 12 Months Ended | |
Dec. 31, 2013 | ||
Payable to Officers and Employees [Abstract] | ' | |
PAYABLE TO OFFICERS AND EMPLOYEES | ' | |
NOTE 6 | PAYABLE TO OFFICERS AND EMPLOYEES | |
The Company established a plan in September 2012. Under this plan, eligible employees could make loans to the Company and earn interest equal to prevailing China bank loan interest rates, normally two to four times rates on savings accounts. The loans could be made only in the period from September 1, 2012 to December 31, 2012. The annual interest rates varied in line with changes in China bank loan interest rates. The total balance at December 31, 2012 of $2,341,574 was repaid to the officers and employees in 2013. |
Other_Payables_and_Accrued_Lia
Other Payables and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Payables and Accrued Liabilities [Abstract] | ' | ||||||||
Other payables and accrued liabilities | ' | ||||||||
NOTE 7 | OTHER PAYABLES AND ACCRUED LIABILITIES | ||||||||
Other payables and accrued liabilities at December 31, 2013 and 2012 consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Accrued professional fees | $ | 57,336 | $ | 41,497 | |||||
Advance from customers | 2,843,374 | 444,681 | |||||||
Accrued wages and welfare | 6,121,912 | 4,279,561 | |||||||
Other payables | 7,105,892 | 5,781,451 | |||||||
Total other payables and accrued liabilities | $ | 16,128,514 | $ | 10,547,190 |
Bank_Loans
Bank Loans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
BANK LOANS | ' | ||||||||
NOTE 8 | BANK LOANS | ||||||||
Bank loans represent amounts due to various banks and are generally due on demand or within one year. These loans can be renewed with the banks. Short term bank loans consisted of the following as of December 31, 2013 and 2012. | |||||||||
Bank | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Nanjing Bank | $ | 18,526,618 | $ | 16,743,277 | |||||
Bank of Communications | 9,245,108 | 6,953,834 | |||||||
Bank of China | 8,210,699 | 3,387,620 | |||||||
China Minsheng Banking | 4,953,069 | 4,239,800 | |||||||
HSBC | 3,499,552 | 5,414,316 | |||||||
Everbright Bank | 3,272,000 | 3,166,000 | |||||||
Pin An Bank | 2,196,102 | - | |||||||
Industrial and Commercial Bank of China | 1,799,600 | - | |||||||
Huaxia Bank | 1,636,000 | - | |||||||
Shanghai Pudong Development Bank | - | 7,014,833 | |||||||
$ | 53,338,748 | $ | 46,919,680 | ||||||
On June 14, 2013, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.18 million (RMB50 million). These loans are guaranteed by Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment. As of December 31, 2013, Goldenway had borrowed $8.18 million under this line of credit from Nanjing Bank with an annual interest rate of 6.16% from January to April 2014. Approximately $6.54 million was repaid subsequent to December 31, 2013. | |||||||||
On June 14, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.82 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory. As of December 31, 2013, Ever-Glory Apparel had borrowed $3.27 million (RMB 20 million) under this line of credit with an annual interest rate of 6.6% and due on September 2014. Ever-Glory Apparel had also borrowed $4.62 million from Nanjing Bank with annual interest rates ranging from 1.8% to 2.2% and due on various dates from January to February 2014, and collateralized by approximately $6.58 million of accounts receivable from wholesale customers. At December 31, 2013, approximately $1.93 million was unused and available under this line of credit. Approximately $4.62 million was repaid subsequent to December 31, 2013. | |||||||||
On April 10, 2013, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.27 million (RMB20 million). The line of credit is guaranteed by Mr. Kang. As of December 31, 2013, LA GO GO had borrowed $2.45million (RMB15 million) under this line of credit with an annual interest rate of 6.16% and due on various dates from January and April 2014. At December 31, 2013, approximately $0.82 million (RMB5 million) was unused and available under this line of credit. Approximately $0.82 million was repaid subsequent to December 31, 2013. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $5.23 million (RMB32 million) from the Bank of Communications with an annual interest rate of 6.3% and due in February 2014. The loan is guaranteed by Jiangsu Ever-Glory. This loan is also collateralized by assets of Jiangsu Ever-Glory’s equity investee, Nanjing Knitting, under a collateral agreement executed among the Company, Jiangsu Ever-Glory, Nanjing Knitting and the bank. Ever-Glory Apparel had also borrowed $0.74 million from the Bank of Communications with an annual interest rate of 3.85% and due in January 2014, and collateralized by approximately $1.20 million of accounts receivable from wholesale customers. Approximately $5.9 million was repaid subsequent to December 31, 2013. | |||||||||
As of December 31, 2013, LA GO GO had borrowed $3.27 million (RMB20 million) from the Bank of Communications with an annual interest rate of 6.3% and due in July 2014. This loan is guaranteed by Jiangsu Ever-Glory and Mr. Kang. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $1.64 million (RMB10 million) from the Bank of China with an annual interest rate of 6.05% and due in April 2014 and guaranteed by Jiangsu Ever-Glory and Mr. Kang. Ever-Glory Apparel had also borrowed $6.57 million ($4.76 million and RMB 11.6 million) from the Bank of China with annual interest rates ranging from 2.56% to 2.94%, due on various dates from March to May 2014, and collateralized by approximately $9.4 million of accounts receivable from wholesale customers. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $1.68 million from China Minsheng Bank, with annual interest rate of 3.19% and due in February 2014 and collateralized by approximately $2.4 million of accounts receivable from wholesale customers. Approximately $1.68 million was repaid subsequent to December 31, 2013. | |||||||||
As of December 31, 2013, LA GO GO had borrowed $3.27 million (RMB 20 million) from China Minsheng Bank, with annual interest rate of 6.3% and due in August 2014. This loan is guaranteed by Ever-Glory Apparel and Mr. Kang. | |||||||||
On July 29, 2011, Ever-Glory Apparel and Perfect Dream collectively entered into a secured banking facility agreement for a combined revolving import facility, letter of credit, invoice financing facilities and a credit line for treasury products of up to $7.00 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of December 31, 2013, Ever-Glory Apparel had borrowed $3.50 million ($0.70 million and RMB 17 million) from HSBC with annual interest rates ranging 3.3% to 6.6% and due on various dates from January to April 2014, and collateralized by approximately $5.1 million of accounts receivable from international wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of December 31, 2013, approximately $3.5 million was unused and available. Approximately $3.5 million was repaid subsequent to December 31, 2013. | |||||||||
As of December 31, 2012, Ever-Glory Apparel had borrowed $3.27 million (RMB20.0 million) from Everbright Bank, with an annual interest rate of 6.3% and due in October 2014. This loan is guaranteed by Goldenway and Mr. Kang. This loan is also collateralized by assets of Jiangsu Ever-Glory. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $2.20 million from Ping An Bank, with annual interest rate of 3.25%, due on various dates from February to March 2014, and collateralized by approximately $3.14 million of accounts receivable from wholesale customers. Approximately $2.2 million was repaid subsequent to December 31, 2013. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $1.80 million (RMB11 million) from the Industrial and Commercial Bank of China with an annual interest rate of 5.6% and due in June 2014 guaranteed by Goldenway. | |||||||||
As of December 31, 2013, Ever-Glory Apparel had borrowed $1.64 million (RMB 10 million) from Hua Xia Bank, with annual interest rate of 6.6% and due in April 2014. This loan is guaranteed by Goldenway. Approximately $1.64 million was repaid subsequent to December 31, 2013. | |||||||||
Total interest expense on bank loans amounted to $3,005,579 and $2,103,103 for the year ended December 31, 2013 and 2012, respectively. | |||||||||
The annual average interest rate of bank loans was 6.00% and 5.53% for the year ended December 31, 2013 and 2012, respectively. |
Derivative_Liability
Derivative Liability | 12 Months Ended | |
Dec. 31, 2013 | ||
Derivative Liability [Abstract] | ' | |
DERIVATIVE LIABILITY | ' | |
NOTE 9 | DERIVATIVE LIABILITY | |
At December 31, 2013, the Company had one outstanding forward foreign exchange option contract (sell US dollars for RMB), with a notional amount of US$3,000,000. The fair value of this contract at December 31, 2013, as well as gains and losses realized on other foreign currency derivative activity during 2013 and 2012 was not significant. | ||
At December 31, 2012, the Company had warrants outstanding to purchase an aggregate of 840,454 shares of the Company’s common stock, which warrants required liability classification because of certain provisions that may have resulted in an adjustment to their exercise price. The warrants expired in June 2013. At the expiration date, the remaining value of the warrants not exercised ($2,000) was reduced to $0. The increase in other income resulting from the decrease in derivative warrant liability was $294,000 and $96,800 for the years ended December 31, 2013 and 2012, respectively. | ||
Income_Tax
Income Tax | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax [Abstract] | ' | ||||||||
INCOME TAX | ' | ||||||||
NOTE 10 | INCOME TAX | ||||||||
The Company’s operating subsidiaries are governed by the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (“the Income Tax Laws”). | |||||||||
All PRC subsidiaries are subject to income tax at the 25% statutory rate. | |||||||||
Perfect Dream was incorporated in the British Virgin Islands (BVI), and under the current laws of the BVI dividends and capital gains arising from the Company’s investments in the BVI are not subject to income taxes. | |||||||||
Ever-Glory HK was incorporated in Samoa, and under the current laws of Samoa has no liabilities for income taxes. | |||||||||
Although the Company’s parent entity is a US entity, the Company’s primary operations are through subsidiaries located in China, certain apparel manufacturing is performed outside of China in Southeast Asia, sales are made globally, and the Company has other subsidiary operations in Hong Kong and Samoa. Therefore, the Company uses significant judgment to calculate and provide for income taxes in each of the tax jurisdictions in which it operates. In the ordinary course of the Company’s business, there are transactions and calculations undertaken whose ultimate tax outcome cannot be certain. Some of these uncertainties arise as a consequence of transfer pricing for transactions with the Company’s subsidiaries, potential challenges to nexus, value added estimates, and similar matters. In September 2009, the Company formed its subsidiary, Ever-Glory HK, domiciled in Samoa, in order to engage in certain limited import and export of apparel, fabric and accessories, as well as to efficiently address currency exchange matters with international transactions. Over the past few years, the operational matters handled by this subsidiary have expanded with respect to sub-contracting of certain manufacturing work outside of China, as well as to other operational matters with non-PRC customers and vendors. Additionally, over this time period, tax guidance, rules and positions taken by the PRC with respect to transfer pricing issues have evolved, and in certain cases, become more standardized. As part of the Company’s on-going process of evaluating our tax positions, the Company considered various factors as they relate to its Samoan subsidiary and as related to intercompany transactions. This evaluation resulted in a change in the Company’s estimate of exposure to potential unfavorable outcomes related to these uncertainties, and the Company recorded a tax liability of approximately $3,186,000 as of December 31, 2013 based on the probability for such outcomes. | |||||||||
The PRC’s Enterprise Income Tax Law imposes a 10% withholding income tax for dividends distributed by a foreign invested enterprise in PRC to its immediate holding company outside China, such distributions were exempted under the previous income tax law and regulations. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. The foreign invested enterprise became subject to the withholding tax starting from January 1, 2008. Given that the undistributed profits of the Company's subsidiaries in China are intended to be retained in China for business development and expansion purposes, no withholding tax accrual has been made. | |||||||||
After the tax liability adjustment resulted from the reevaluation of the Company’s tax position (resulting in the company allocating substantially all of the earnings of the Samoan subsidiary to the PRC and reporting such earnings as taxable in the PRC), pre-tax income for the years ended December 31, 2013 and 2012 was taxable in the following jurisdictions: | |||||||||
2013 | 2012 | ||||||||
PRC | $ | 26,617,298 | $ | 7,727,981 | |||||
Samoa | (9,521,787 | ) | 6,922,098 | ||||||
BVI | (3,499 | ) | (28,518 | ) | |||||
Others | 274,000 | 88,992 | |||||||
$ | 17,366,012 | $ | 14,710,553 | ||||||
The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended December 31, 2013 and 2012, respectively: | |||||||||
2013 | 2012 | ||||||||
PRC statutory rate | 25 | % | 25.0 | % | |||||
Non-taxable items | (0.6 | ) | (0.2 | ) | |||||
Effect of foreign income tax rates | - | (11.7 | ) | ||||||
Effect of reevaluation of tax positions | 13.7 | - | |||||||
Other | 0.1 | (0.1 | ) | ||||||
Effective income tax rate | 38.2 | % | 13 | % | |||||
Income tax expense for the year ended December 31, 2013 and 2012 is as follows: | |||||||||
2013 | 2012 | ||||||||
Current | $ | 2,345,500 | $ | 1,165,918 | |||||
Deferred | 4,281,934 | 741,693 | |||||||
Income tax expense | $ | 6,627,434 | $ | 1,907,611 |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 11 | EARNINGS PER SHARE | ||||||||
Basic and diluted earnings per share for 2013and 2012 were calculated as follows: | |||||||||
2013 | 2012 | ||||||||
Weighted average number of common shares- Basic and diluted | 14,778,080 | 14,767,253 | |||||||
Earnings per share - basic and diluted | $ | 0.73 | $ | 0.87 | |||||
For the year ended December 31, 2012, the Company excluded 840,454 warrants outstanding from diluted earnings per share because the exercise price of $3.20 exceeded the average trading price of $1.63 for the year ended December 31, 2012 making these warrants anti-dilutive. | |||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity [Abstract] | ' | ||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||
NOTE 12 | STOCKHOLDERS’ EQUITY | ||||||||
Stock Issued to Independent Directors | |||||||||
On March 14, 2012, the Company issued an aggregate of 3,346 shares of its common stock to the Company’s three independent directors as compensation for their services in the third and fourth quarters of 2011. The shares were valued at $1.94 per share, which was the average market price of the common stock for the five days before the grant date. | |||||||||
On March 21, 2012, the Company issued an aggregate of 1,723 shares of its common stock to one of the Company’s independent directors as compensation for her services in the third and fourth quarters of 2011. The shares were valued at $1.94 per share, which was the average market price of the common stock for the five days before the grant date. | |||||||||
On August 16, 2012, the Company issued an aggregate of 6,328 shares of its common stock to three of the Company’s independent directors as compensation for their services in the first and second quarters of 2012. The shares were valued at $1.58 per share, which was the average market price of the common stock for the five days before the grant date. | |||||||||
On February 28, 2013, the Company issued an aggregate of 5,340 shares of its common stock to three of the Company’s independent directors as compensation for their services in the third and fourth quarters of 2012. The shares were valued at $1.89 per share, which was the average market price of the common stock for the five days before the grant date. | |||||||||
On August 19, 2013, the Company issued an aggregate of 3,631 shares of its common stock to three of the Company’s independent directors as compensation for their services in the first and second quarters of 2013. The shares were valued at $2.73 per share, which was the average market price of the common stock for the five days before the grant date. | |||||||||
Statutory Reserve | |||||||||
Subsidiaries incorporated in China are required to make appropriations to reserve funds, comprising the statutory surplus reserve, statutory public welfare fund and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China ( “PRC GAAP”). Appropriations to the statutory surplus reserve are to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the statutory public welfare fund are 10% of the after tax net income determined in accordance with PRC GAAP. The statutory public welfare fund is established for the purpose of providing employee facilities and other collective benefits to the employees and is non-distributable other than in liquidation. Appropriations to the surplus reserve are made at the discretion of the Board of Directors. Effective January 1, 2006, the Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies’ registered capital. | |||||||||
As of December 31, 2013, New-Tailun and Catch-Luck had fulfilled the 50% statutory reserve contribution requirement; therefore no further transfers are required for those entities. In 2013, Goldenway appropriated $187,551 Ever-Glory Apparel appropriated $2,154,853 Shanghai La GO GO appropriated $1,264,197, Jiangsu La GO GO appropriated $29,850 and Taixin appropriated $258,102 to the statutory reserve. | |||||||||
Warrants | |||||||||
The Company had 840,454 warrants outstanding in connection with a 2007 private placement. The warrants expired in June 2013. | |||||||||
Following is a summary of the status of warrants outstanding and exercisable at December 31, 2012: | |||||||||
2012 | |||||||||
Exercise Price | Number of | Average Remaining | |||||||
Shares | Contractual Life | ||||||||
$3.20 | 840,454 | 0.43 | |||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
NOTE 13 | RELATED PARTY TRANSACTIONS | ||||||||
Mr. Kang is the Company’s Chairman and Chief Executive Officer. Ever-Glory Enterprises (H.K.) Ltd. (“Ever-Glory Enterprises”) is the Company’s major shareholder. Mr. Xiaodong Yan is Ever-Glory Enterprises’ sole shareholder. All transactions associated with the following companies controlled by Mr. Kang or Mr. Yan are considered to be related party transactions, and it is possible that the terms of these transactions may not be the same as those that would result from transactions between unrelated parties. All related party outstanding balances are short-tem in nature and are expected to be settled in cash. | |||||||||
Other income from Related Parties | |||||||||
Included in other income for the years ended December 31,2013 and 2012 is rent revenue from entities controlled by Mr. Kang under operating lease agreements with various terms though 2015 as follows: | |||||||||
2013 | 2012 | ||||||||
EsCeLav | $ | 12,105 | $ | 10,856 | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd. | 16,140 | 15,830 | |||||||
Total | $ | 28,245 | $ | 26,686 | |||||
Other expenses due to Related Parties | |||||||||
Included in other expenses for the years ended December 31, 2013 and 2012 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows (See details at Note 14): | |||||||||
2013 | 2012 | ||||||||
Jiangsu Ever-Glory | $ | 50,680 | $ | 49,675 | |||||
Kunshan Enjin | 41,757 | 32,842 | |||||||
Total | $ | 92,437 | $ | 82,517 | |||||
The Company leases Jiangsu Ever-Glory's factory as the factory is in a location where there is a good supply of experienced workers. The Company leases Kunshan Enjin's warehouse space because the location is convenient for transportation and distribution. | |||||||||
Purchases from, and Sub-contracts with Related Parties | |||||||||
The Company purchased raw materials of $726,288and $2,493,691 during the years ended 2013 and 2012, respectively, from Nanjing Knitting. | |||||||||
In addition, the Company sub-contracted certain manufacturing work to related companies totaling $16,787,399 and $10,232,599 for the years ended December 31, 2013 and 2012, respectively. The Company provided raw materials to the sub-contractors and was charged a fixed fee for labor provided by the sub-contractors. | |||||||||
Sub-contracts with related parties included in cost of sales for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Ever-Glory Vietnam | $ | 8,716,372 | $ | 4,144,156 | |||||
Ever-Glory Cambodia | 6,628,314 | 4,225,835 | |||||||
Nanjing Ever-Kyowa | 1,135,851 | 948,917 | |||||||
Nanjing Knitting | 254,812 | 859,747 | |||||||
EsC'Lav | 10,253 | 15,981 | |||||||
Jiangsu Ever-Glory | 41,797 | 37,963 | |||||||
Total | $ | 16,787,399 | $ | 10,232,599 | |||||
Accounts Payable – Related Parties | |||||||||
The accounts payable to related parties at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Ever-Glory Vietnam | $ | 2,473,271 | $ | 2,183,039 | |||||
Nanjing Knitting | 784,777 | 756,842 | |||||||
Ever-Glory Cambodia | 582,453 | 90,428 | |||||||
Nanjing Ever-Kyowa | 261,955 | 128,505 | |||||||
Total | $ | 4,102,456 | $ | 3,158,814 | |||||
Amounts Due From Related Parties – Current Assets | |||||||||
The amounts due from related parties at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Jiangsu Ever-Glory | $ | 1,738,879 | $ | - | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co..Ltd. | 145,206 | - | |||||||
EsC'eLav | 12,291 | 8,680 | |||||||
Total | $ | 1,896,376 | $ | 8,680 | |||||
Jiangsu Ever-Glory is an entity engaged in importing/exporting, apparel-manufacture, real-estate development, car sales and other activities. Jiangsu Ever-Glory is controlled by Mr. Kang. Because of restrictions on its ability to directly import and export products, the Company had utilized Jiangsu Ever-Glory as its agent to assist the Company with its import and export transactions and its international transportation projects from 2005 through 2011. Import transactions primarily consisted of purchases of raw materials and accessories designated by the Company’s customers for use in garment manufacture. Export transactions consisted of the Company’s sales to foreign markets such as Japan, Europe and the United States. These transactions ceased at end of 2011. During 2013 and 2012, the Company and Jiangsu Ever-Glory purchased raw materials on behalf of each other in order to obtain cheaper purchase prices. The Company purchased raw materials on Jiangsu Ever-Glory’s behalf and sold to Jiangsu Ever-Glory at cost for $703,353 and $126,485 during 2013 and 2012, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at cost for $76,518 and $1,032,261 during 2013 and 2012, respectively. The Company also advanced $1,232,295 to Jiangsu Ever-Glory for future raw material purchases in 2013. | |||||||||
At December 31, 2013, amounts due from Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd. is $145,206, which included rental receivable of $16,140 and utility paid on behalf of Nanjing Eight-On-Five of $129,066. | |||||||||
Amounts Due From Related Party under Counter Guarantee Agreement | |||||||||
In March 2012, in consideration of the guarantees and collateral provided by Jiangsu Ever-Glory and Nanjing Knitting (NOTE 8), the Company agreed to provide Jiangsu Ever-Glory a counter guarantee in the form of cash of not less than 70% of the maximum aggregate lines of credit obtained by the Company. Jiangsu Ever-Glory is obligated to return the full amount of the counter-guarantee funds provided upon expiration or termination of the underlying lines of credit and is to pay annual interest at the rate of 6.0% of amounts provided. As of December 31, 2013 and 2012, Jiangsu Ever-Glory has provided guarantees for approximately $44.01 million (RMB 269 million) (2013) and $44.48 million (RMB 281 million) (2012) of lines of credit obtained by the Company. Jiangsu Ever-Glory and Nanjing Knitting have also provided their assets as collateral for certain of these lines of credit. The value of the collateral, as per appraisals obtained by the banks in connection with these lines of credit is approximately $16.91 million (RMB 103 million) (2013) and $20.90 million (RMB 132 million) (2012). Mr. Kang has also provided a personal guarantee for $20.78 million (RMB 127 million) (2013) and $22.0 million (RMB 139 million) (2012). | |||||||||
During the year ended December 31, 2012, US$32.13 million (RMB 203 million) was provided to Jiangsu Ever-Glory under the counter guarantee, all of which was outstanding at December 31, 2012. During the year ended December 31, 2013, an additional $10.34 million (RMB 64 million) was provided to and repayment of $26.55 million (RMB 164 million) was received from Jiangsu Ever-Glory under the counter-guarantee agreement. As of December 31, 2013, the amount of the counter-guarantee had been reduced to $16.79 million (RMB 103 million) (the difference represents currency exchange adjustment of $0.87 million), which was 38.15% of the aggregate amount of lines of credit. This amount plus accrued interest of $2.29 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At December 31, 2013 and 2012, the amount classified as a reduction of equity was $19.08 million and $33.57 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Interest income for the years ended December 31, 2013 and 2012 was approximately $1.03 million and $1.26 million, respectively. | |||||||||
Through March 31, 2014, approximately $5.07 million (RMB 31 million) was provided and approximately $1.30 million (RMB 8 million) of interest income was received under the counter-guarantee agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 14 | COMMITMENTS AND CONTINGENCIES | ||||
Economic and Political Risks | |||||
The majority of the Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. | |||||
Operating Lease Commitment | |||||
The Company has entered the operating lease agreement with Jiangsu Ever-Glory since inception of the Company. The leased factory is located in Nanjing Shangfang Town. The lease term is one year and can be renewed once a year. On January 1, 2014, the Company renewed the lease which expires on December 31, 2014, at an annual rental of $50,000 (RMB 314,000). For the years ended December 31, 2013 and 2012, the Company recognized rental expense in the amounts of approximately $50,680 and $49,675, respectively. | |||||
The Company has entered the operating lease agreement with Kunshan Enjin as La GO GO’s Logistics warehouse since inception of the Company. The leased warehouse is located in Suzhou Kunshan. The lease term is one year and can be renewed once a year. On January 1, 2014, the Company renewed the lease which expires on December 31, 2014, at an annual rental of $41,700 (RMB 258,720). For the years ended December 31, 2013 and 2012, the Company recognized rental expense in the amounts of approximately $41,757 and $32,842, respectively. | |||||
The company has entered the operating lease agreement with Shahe Village for approximately 10 Mu of land in Shahe Village, Shanghai. The term of the lease is 40 years starting from January 1, 2013, with an annual rent of $0.42 million (RMB 2.6 million) for the first 5 years. The rent will increase by $16,000 (RMB 100,000) every five years. For the year ended December 31, 2013, total rental expense was $477,946. | |||||
The Company leases retail space, warehouses and office facilities under operating leases expiring on various dates through 2016. The majority of the Company’s retail leases is for twelve-month periods and provide for contingent rents, which are determined as a percentage of gross sales in excess of specified levels. The Company records a rent liability in the consolidated balance sheets and the corresponding rent expense when management determines that achieving the specified levels during the fiscal year is probable. Total rent expense was $64,885,278 and $39,005,167 for the years ended December 31, 2013 and 2012, respectively. Future minimum lease payments for leases with initial or remaining noncancelable lease terms in excess of one year are as follows: | |||||
Year ending December 31, | |||||
2014 | 262,000 | ||||
2015 | 274,000 | ||||
2016 | 286,000 | ||||
$ | 822,000 | ||||
Legal Proceedings | |||||
There is no material pending legal proceeding to which the Company is a party. |
Concentrations_and_Risks
Concentrations and Risks | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations and Risks [Abstract] | ' | ||||||||
CONCENTRATIONS AND RISKS | ' | ||||||||
NOTE 15 | CONCENTRATIONS AND RISKS | ||||||||
The Company extends unsecured credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. Based on management’s assessment of the amount of probable credit losses, if any, in existing accounts receivable, management has concluded that no allowance for doubtful accounts is necessary at December 31, 2013 and 2012. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the credit worthiness of the customer, the economic conditions of the customer’s industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of accounts receivables are incorrect, adjustments to the allowance may be required, which would reduce profitability. | |||||||||
The Company had no customers that represented more than 10% of the Company’s revenues for the year ended December 31, 2013, and had two wholesale customers that represented approximately 11% of the Company’s revenues each, for the year ended December 31, 2012, respectively. | |||||||||
For the Company’s wholesale business during 2013 and 2012, no supplier represented more than 10% of the total raw materials purchased. | |||||||||
For the Company’s retail business, the Company relied on two suppliers for 15% and 12% of total raw materials purchased, respectively, during 2013 and no supplier represented more than 10% of the total raw materials purchased during 2012. | |||||||||
For the wholesale business, the Company relied on two manufacturers for 13% and 11% of total purchased finished goods, respectively, during 2013. The Company relied on one manufacturer for 14% of purchased finished goods during 2012. | |||||||||
For the retail business, the Company did not rely on any single manufacturer for more than 10% of total purchased finished goods during 2013 and 2012. | |||||||||
The Company’s revenues for the years ended December 31, 2013 and 2012 were earned in the following geographic areas: | |||||||||
2013 | 2012 | ||||||||
The People’s Republic of China | $ | 80,541,243 | $ | 70,161,563 | |||||
Germany | 19,043,278 | 21,627,788 | |||||||
United Kingdom | 23,566,685 | 22,885,131 | |||||||
Europe-Other | 18,703,908 | 15,154,483 | |||||||
Japan | 22,182,271 | 23,082,506 | |||||||
United States | 14,308,739 | 18,129,628 | |||||||
Total wholesale business | 178,346,124 | 171,041,099 | |||||||
Retail business | 189,732,301 | 108,592,113 | |||||||
Total | $ | 368,078,425 | $ | 279,633,212 | |||||
Substantially all of the Company’s long-lived assets were attributable to the PRC as of December 31, 2013 and 2012. |
Segments
Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
SEGMENTS | ' | ||||||||||||
NOTE 16 | SEGMENTS | ||||||||||||
The Company reports financial and operating information in the following two segments: | |||||||||||||
(a) Wholesale segment | |||||||||||||
(b) Retail segment | |||||||||||||
The Company also provides general corporate services to its segments and these costs are reported as "corporate and others." | |||||||||||||
Wholesale | Retail | Total | |||||||||||
segment | segment | ||||||||||||
31-Dec-13 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 178,346,124 | $ | 189,732,301 | $ | 368,078,425 | |||||||
Income from operations | $ | 10,183,770 | $ | 7,962,097 | $ | 18,145,867 | |||||||
Interest income | $ | 1,154,160 | $ | 32,242 | $ | 1,186,402 | |||||||
Interest expense | $ | 2,695,683 | $ | 309,896 | $ | 3,005,579 | |||||||
Depreciation and amortization | $ | 996,807 | $ | 5,472,000 | $ | 6,468,807 | |||||||
Income tax expense | $ | 4,470,690 | $ | 2,156,744 | $ | 6,627,434 | |||||||
31-Dec-12 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 171,041,099 | $ | 108,592,113 | $ | 279,633,212 | |||||||
Income from operations | $ | 11,474,640 | $ | 3,609,260 | $ | 15,083,900 | |||||||
Interest income | $ | 1,336,513 | $ | 12,133 | $ | 1,348,646 | |||||||
Interest expense | $ | 1,911,212 | $ | 191,891 | $ | 2,103,103 | |||||||
Depreciation and amortization | $ | 989,594 | $ | 3,977,325 | $ | 4,966,919 | |||||||
Income tax expense | $ | 1,024,133 | $ | 883,478 | $ | 1,907,611 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The consolidated financial statements include Ever-Glory and its subsidiaries, and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |||
Use of Estimates and Assumptions | ' | ||
Use of Estimates and Assumptions | |||
In preparing the consolidated financial statements in conformity with GAAP, management makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Management believes that the estimates utilized in preparing the financial statements are reasonable and prudent based on the best information available at the time the estimates are made. Actual results could differ from these estimates. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents include cash on hand and demand deposits with banks with original maturities within three months. | |||
Accounts Receivable | ' | ||
Accounts Receivable | |||
The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of the credit history of its customers and current relationships with them. The Company writes off accounts receivable when amounts are deemed uncollectible. | |||
As of December 31, 2013 and 2012, the Company considers all its accounts receivable to be collectable and no provision for doubtful accounts has been made in the consolidated financial statements. | |||
Inventories | ' | ||
Inventories | |||
Wholesale inventories are stated at lower of cost or market value, cost being determined on a specific identification method. The Company manufactures products upon receipt of orders from its customers. All products must pass the customers’ quality assurance procedures before delivery. Therefore, products are rarely returned by customers after delivery. | |||
Retail inventories are stated at the lower of average cost or market value, cost being determined on a specific identification method. The Company records an allowance for slow-moving or obsolete materials and finished goods aged more than one year. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred. | |||
Depreciation is provided on a straight-line basis, less estimated residual value, over the assets’ estimated useful lives. The estimated useful lives are as follows: | |||
Property and plant | 15-20 Years | ||
Leasehold improvements | 10 Months to 2 Years | ||
Machinery and equipment | 10 Years | ||
Office equipment and furniture | 3-5 Years | ||
Motor vehicles | 5 Years | ||
Land Use Rights | ' | ||
Land Use Rights | |||
All land in the PRC is owned by the government and cannot be sold to any individual or company. However, the government may grant a “land use right” to occupy, develop and use land. The Company records land use rights obtained as intangible assets at cost, which is amortized evenly over the grant period of 50 years. | |||
Long-Lived Assets | ' | ||
Long-Lived Assets | |||
Long-lived assets, property, equipment and land use rights held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. There were no impairments of long-lived assets as of December 31, 2013. | |||
Financial Instruments | ' | ||
Financial Instruments | |||
Management has estimated that the carrying amounts of non-related party financial instruments approximate their fair values due to their short-term maturities. The fair value of amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions. | |||
Fair Value Accounting | ' | ||
Fair Value Accounting | |||
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: | |||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||
At December 31, 2013, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
The Company has adopted ASC 825-10 “Financial Instruments”, which allows an entity to choose to measure certain financial instruments and liabilities at fair value on a contract-by-contract basis. Subsequent fair value measurement for the financial instruments and liabilities an entity chooses to measure will be recognized in earnings. | |||
Derivative Financial Instruments | ' | ||
Derivative Financial Instruments | |||
From time to time, the Company uses derivative financial instruments to manage its exposure to foreign currency risks arising from operational activities. The Company does not hold or issue derivative instruments for trading purposes. Generally, the derivatives do not qualify for hedge accounting. Such derivatives generally consist of forward foreign exchange contracts, spot foreign exchange contracts or foreign exchange options to manage exposure to certain foreign currency operating transactions. Derivative financial instruments are recognized initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognized immediately in earnings. | |||
Revenue and Cost Recognition | ' | ||
Revenue and Cost Recognition | |||
The Company recognizes wholesale revenue from product sales, net of value added taxes, upon delivery for local sales and upon shipment of the products for export sales, at which time title passes to the customer provided that there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists, the sales price is fixed and determinable and collectability is deemed probable. The Company recognizes wholesale revenue from manufacturing fees charged to buyers for the assembly of garments from materials provided by the buyers upon completion of the manufacturing process and upon delivery to the buyer for local sales and upon shipment of the products for export sales, provided that there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists, the sales price is fixed and determinable and collectability is deemed probable. Retail sales are recognized at the time of register receipt. Retail sales through e-commerce companies are recognized when products are delivered and payments from customers are received (normally, the customers have the right of return before they pay). | |||
Cost of goods sold includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent consistent with the revenue earned. Cost of goods sold excludes warehousing costs, which historically have not been significant. | |||
Local transportation charges and production inspection charges are included in selling expenses and totaled $113,727 and $164,873 in the years ended December 31, 2013 and 2012, respectively. | |||
Research and Development Costs | ' | ||
Research and Development Costs | |||
Research and development costs are expensed as incurred. Research and development costs included in general and administrative expenses for the years ended December 31, 2013 and 2012 amounted to $1,179,918 and $1,109,143, respectively. | |||
Government subsidies | ' | ||
Government subsidies | |||
Government subsidies are recognized when received and when all the conditions for their receipt have been met. Subsidies that compensate the Company for expenses incurred are recognized as a reduction of expenses in the consolidated statements of operations. Subsidies that are not associated with expenses are recognized as other income. One of the Company’s PRC subsidiaries received government subsidies of $683,820 and $124,246 for the years ended December 31, 2013 and 2012, respectively, which was recorded in other income when subsidies were received and all the conditions were met. | |||
Income Taxes | ' | ||
Income Taxes | |||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. | |||
The Company has adopted ASC 740 "Income Taxes" pursuant to which tax positions are recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not have any material unrecognized tax benefits and the Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. | |||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the years ended December 31, 2013 and 2012. The Company’s effective tax rate differs from the federal statutory rate primarily due to non-deductible expenses, temporary differences, and preferential tax treatment. | |||
The Company files income tax returns with the relevant government authorities in the U.S. and the PRC. The Company is not subject to U.S. federal tax examinations for years before 2007. | |||
Foreign Currency Translation and Other Comprehensive Income | ' | ||
Foreign Currency Translation and Other Comprehensive Income | |||
The reporting currency of the Company is the U.S. dollar. The functional currency of Ever-Glory, Perfect Dream and Ever-Glory HK is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Shanghai LA GO GO, Jiangsu LA GO GO and Taixin is the Chinese RMB. | |||
For the subsidiaries whose functional currency is the RMB, all assets and liabilities are translated at the exchange rate on the balance sheet date; equity is translated at historical rates and items in the statement of income are translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of equity and amounted to $8,783,429 and $6,873,170 as of December 31, 2013 and 2012, respectively. Assets and liabilities at December 31, 2013 and 2012 were translated at RMB6.11 and RMB6.32 to $1.00 respectively. The average translation rates applied to income statement accounts and statement of cash flows for the years ended December 31, 2013 and 2012 were RMB6.20 and RMB6.32 to $1.00, respectively. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. | |||
Translation gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred and amounted to $575,382 and $(134,272) for the years ended December 31, 2013 and 2012, respectively. | |||
Earnings Per Share | ' | ||
Earnings Per Share | |||
The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted EPS shall be adjusted retroactively for all periods presented to reflect that change in capital structure. | |||
Included in the calculation of basic EPS are shares of restricted common stock that have been issued by the Company, all of which are fully vested. Shares of restricted common stock whose issuance is contingent upon the attainment of specified earnings targets are considered outstanding and included in the computation of basic EPS as of the date that all necessary conditions have been satisfied, which is the date upon which the specified amount of earnings has been attained. These shares are to be considered outstanding and included in the computation of diluted EPS as of the beginning of the period in which the conditions are satisfied. If the specified amount of earnings has not been attained as of the end of the reporting period, the contingently issuable shares are excluded from the calculation of basic and diluted EPS. | |||
Segments | ' | ||
Segments | |||
The Company applies ASC 280 “Segment Reporting” which establishes standards for operating information regarding operating segments in financial statements and requires selected information for those segments to be presented in financial reports issued to stockholders. ASC 280 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decisions how to allocate resources and assess performance. The Company reports financial and operating information in two segments: | |||
(1) | Wholesale apparel manufacture and sales | ||
(2) | Retail sales of own-brand clothing | ||
Recently Accounting Pronouncements | ' | ||
Recently Issued Accounting Pronouncements | |||
The Company reviews new accounting standards as issued. Although some of the accounting standards issued are effective after the end of the Company’s previous fiscal years, and therefore may be applicable to the Company. Management has not identified any standards that it believes will have a significant impact on the Company’s consolidated financial statements. | |||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Summary of estimated useful life of property and equipment | ' | ||
Property and plant | 15-20 Years | ||
Leasehold improvements | 10 Months to 2 Years | ||
Machinery and equipment | 10 Years | ||
Office equipment and furniture | 3-5 Years | ||
Motor vehicles | 5 Years | ||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of inventory | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,658,519 | $ | 5,687,612 | |||||
Work-in-progress | 25,862,185 | 7,296,733 | |||||||
Finished goods | 55,664,077 | 36,770,852 | |||||||
87,184,781 | 49,755,197 | ||||||||
Less: allowance for obsolete inventories | (11,994,584 | ) | (3,716,741 | ) | |||||
Total inventories | $ | 75,190,197 | $ | 46,038,456 |
Land_Use_Rights_Tables
Land Use Rights (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land Use Rights [Abstract] | ' | ||||||||
Summary of land use right | ' | ||||||||
2013 | 2012 | ||||||||
Land use rights | $ | 3,163,861 | $ | 3,163,861 | |||||
Less: accumulated amortization | (342,390 | ) | (362,389 | ) | |||||
Land use rights, net | $ | 2,821,471 | $ | 2,801,472 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Summary of property and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Property and plant | $ | 16,929,771 | $ | 13,134,192 | |||||
Leasehold improvements | 12,870,846 | 11,499,672 | |||||||
Construction-in-progress | 1,171,788 | 149,514 | |||||||
Equipment and machinery | 3,504,666 | 3,691,593 | |||||||
Office equipment and furniture | 2,096,829 | 1,216,415 | |||||||
Motor vehicles | 926,581 | 535,671 | |||||||
37,500,481 | 30,227,057 | ||||||||
Less: accumulated depreciation | 19,130,154 | 14,158,322 | |||||||
Property and equipment, net | $ | 18,370,327 | $ | 16,068,735 | |||||
Other_Payables_and_Accrued_Lia1
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Payables and Accrued Liabilities [Abstract] | ' | ||||||||
Summary of other payables and accrued liabilities | ' | ||||||||
2013 | 2012 | ||||||||
Accrued professional fees | $ | 57,336 | $ | 41,497 | |||||
Advance from customers | 2,843,374 | 444,681 | |||||||
Accrued wages and welfare | 6,121,912 | 4,279,561 | |||||||
Other payables | 7,105,892 | 5,781,451 | |||||||
Total other payables and accrued liabilities | $ | 16,128,514 | $ | 10,547,190 |
Bank_Loans_Tables
Bank Loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
Schedule of bank loans | ' | ||||||||
Bank | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Nanjing Bank | $ | 18,526,618 | $ | 16,743,277 | |||||
Bank of Communications | 9,245,108 | 6,953,834 | |||||||
Bank of China | 8,210,699 | 3,387,620 | |||||||
China Minsheng Banking | 4,953,069 | 4,239,800 | |||||||
HSBC | 3,499,552 | 5,414,316 | |||||||
Everbright Bank | 3,272,000 | 3,166,000 | |||||||
Pin An Bank | 2,196,102 | - | |||||||
Industrial and Commercial Bank of China | 1,799,600 | - | |||||||
Huaxia Bank | 1,636,000 | - | |||||||
Shanghai Pudong Development Bank | - | 7,014,833 | |||||||
$ | 53,338,748 | $ | 46,919,680 |
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax [Abstract] | ' | ||||||||
Pre-tax income in jurisdictions | ' | ||||||||
2013 | 2012 | ||||||||
PRC | $ | 26,617,298 | $ | 7,727,981 | |||||
Samoa | (9,521,787 | ) | 6,922,098 | ||||||
BVI | (3,499 | ) | (28,518 | ) | |||||
Others | 274,000 | 88,992 | |||||||
$ | 17,366,012 | $ | 14,710,553 | ||||||
Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ||||||||
2013 | 2012 | ||||||||
PRC statutory rate | 25 | % | 25.0 | % | |||||
Non-taxable items | (0.6 | ) | (0.2 | ) | |||||
Effect of foreign income tax rates | - | (11.7 | ) | ||||||
Effect of reevaluation of tax positions | 13.7 | - | |||||||
Other | 0.1 | (0.1 | ) | ||||||
Effective income tax rate | 38.2 | % | 13 | % | |||||
Components of income tax expense | ' | ||||||||
2013 | 2012 | ||||||||
Current | $ | 2,345,500 | $ | 1,165,918 | |||||
Deferred | 4,281,934 | 741,693 | |||||||
Income tax expense | $ | 6,627,434 | $ | 1,907,611 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Summary of Basic and diluted earnings per share | ' | ||||||||
2013 | 2012 | ||||||||
Weighted average number of common shares- Basic and diluted | 14,778,080 | 14,767,253 | |||||||
Earnings per share - basic and diluted | $ | 0.73 | $ | 0.87 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stockholders' Equity [Abstract] | ' | ||||||||
Summary of the status of warrants outstanding and exercisable | ' | ||||||||
2012 | |||||||||
Exercise Price | Number of | Average Remaining | |||||||
Shares | Contractual Life | ||||||||
$3.20 | 840,454 | 0.43 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Summary of other income from related parties | ' | ||||||||
2013 | 2012 | ||||||||
EsCeLav | $ | 12,105 | $ | 10,856 | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd. | 16,140 | 15,830 | |||||||
Total | $ | 28,245 | $ | 26,686 | |||||
Summary of other expenses due to related parties | ' | ||||||||
2013 | 2012 | ||||||||
Jiangsu Ever-Glory | $ | 50,680 | $ | 49,675 | |||||
Kunshan Enjin | 41,757 | 32,842 | |||||||
Total | $ | 92,437 | $ | 82,517 | |||||
Summary of sub-contracts with related parties | ' | ||||||||
2013 | 2012 | ||||||||
Ever-Glory Vietnam | $ | 8,716,372 | $ | 4,144,156 | |||||
Ever-Glory Cambodia | 6,628,314 | 4,225,835 | |||||||
Nanjing Ever-Kyowa | 1,135,851 | 948,917 | |||||||
Nanjing Knitting | 254,812 | 859,747 | |||||||
EsC'Lav | 10,253 | 15,981 | |||||||
Jiangsu Ever-Glory | 41,797 | 37,963 | |||||||
Total | $ | 16,787,399 | $ | 10,232,599 | |||||
Summary of accounts payable - related parties | ' | ||||||||
2013 | 2012 | ||||||||
Ever-Glory Vietnam | $ | 2,473,271 | $ | 2,183,039 | |||||
Nanjing Knitting | 784,777 | 756,842 | |||||||
Ever-Glory Cambodia | 582,453 | 90,428 | |||||||
Nanjing Ever-Kyowa | 261,955 | 128,505 | |||||||
Total | $ | 4,102,456 | $ | 3,158,814 | |||||
Summary of amounts due from related party current assets | ' | ||||||||
2013 | 2012 | ||||||||
Jiangsu Ever-Glory | $ | 1,738,879 | $ | - | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co..Ltd. | 145,206 | - | |||||||
EsC'eLav | 12,291 | 8,680 | |||||||
Total | $ | 1,896,376 | $ | 8,680 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Summary of future minimum lease payments | ' | ||||
Year ending December 31, | |||||
2014 | 262,000 | ||||
2015 | 274,000 | ||||
2016 | 286,000 | ||||
$ | 822,000 | ||||
Concentrations_and_Risks_Table
Concentrations and Risks (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations and Risks [Abstract] | ' | ||||||||
Company's revenues as per geographic areas | ' | ||||||||
2013 | 2012 | ||||||||
The People’s Republic of China | $ | 80,541,243 | $ | 70,161,563 | |||||
Germany | 19,043,278 | 21,627,788 | |||||||
United Kingdom | 23,566,685 | 22,885,131 | |||||||
Europe-Other | 18,703,908 | 15,154,483 | |||||||
Japan | 22,182,271 | 23,082,506 | |||||||
United States | 14,308,739 | 18,129,628 | |||||||
Total wholesale business | 178,346,124 | 171,041,099 | |||||||
Retail business | 189,732,301 | 108,592,113 | |||||||
Total | $ | 368,078,425 | $ | 279,633,212 | |||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
Summary of financial and operating information | ' | ||||||||||||
Wholesale | Retail | Total | |||||||||||
segment | segment | ||||||||||||
31-Dec-13 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 178,346,124 | $ | 189,732,301 | $ | 368,078,425 | |||||||
Income from operations | $ | 10,183,770 | $ | 7,962,097 | $ | 18,145,867 | |||||||
Interest income | $ | 1,154,160 | $ | 32,242 | $ | 1,186,402 | |||||||
Interest expense | $ | 2,695,683 | $ | 309,896 | $ | 3,005,579 | |||||||
Depreciation and amortization | $ | 996,807 | $ | 5,472,000 | $ | 6,468,807 | |||||||
Income tax expense | $ | 4,470,690 | $ | 2,156,744 | $ | 6,627,434 | |||||||
31-Dec-12 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 171,041,099 | $ | 108,592,113 | $ | 279,633,212 | |||||||
Income from operations | $ | 11,474,640 | $ | 3,609,260 | $ | 15,083,900 | |||||||
Interest income | $ | 1,336,513 | $ | 12,133 | $ | 1,348,646 | |||||||
Interest expense | $ | 1,911,212 | $ | 191,891 | $ | 2,103,103 | |||||||
Depreciation and amortization | $ | 989,594 | $ | 3,977,325 | $ | 4,966,919 | |||||||
Income tax expense | $ | 1,024,133 | $ | 883,478 | $ | 1,907,611 | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Property and plant [Member] | ' |
Summary of estimated useful life of property and equipment | ' |
Estimated useful lives of property and equipment | '15-20 Years |
Leasehold improvements [Member] | ' |
Summary of estimated useful life of property and equipment | ' |
Estimated useful lives of property and equipment | '10 months to 2 Years |
Machinery and equipment [Member] | ' |
Summary of estimated useful life of property and equipment | ' |
Estimated useful lives of property and equipment | '10 Years |
Office equipment and furniture [Member] | ' |
Summary of estimated useful life of property and equipment | ' |
Estimated useful lives of property and equipment | '3-5 Years |
Motor vehicles [Member] | ' |
Summary of estimated useful life of property and equipment | ' |
Estimated useful lives of property and equipment | '5 Years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | ||
Summary of Significant Accounting Policies (Textual) | ' | ' |
Description of allowance recorded on inventory | ' | ' |
Company records an allowance for slow-moving or obsolete materials and finished goods aged more than one year. | ||
Land use right, useful life | '50 years | ' |
Impairment charges of long lived assets | $0 | ' |
Local transportation charges and production inspection charges | 113,727 | 164,873 |
Accumulated other comprehensive income | 8,783,425 | 6,873,170 |
Research and development costs | 1,179,918 | 1,109,143 |
Assets and liabilities translation rate | 'Assets and liabilities at December 31, 2013 and 2012 were translated at RMB6.11 and RMB6.32 to $1.00 respectively. | ' |
Average translation rate applied to income statement accounts and statement of cash flows | ' | ' |
For the years ended December 31, 2013 and 2012 were RMB6.20 and RMB6.32 to $1.00, respectively. | ||
Gains or losses from exchange rate fluctuations | 575,382 | -134,272 |
Number of reportable segments | 2 | ' |
PRC subsidiaries received government subsidies | $683,820 | $124,246 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of inventory | ' | ' |
Raw materials | $5,658,519 | $5,687,612 |
Work-in-progress | 25,862,185 | 7,296,733 |
Finished goods | 55,664,077 | 36,770,852 |
Inventory gross | 87,184,781 | 49,755,197 |
Less: allowance for obsolete inventories | -11,994,584 | -3,716,741 |
Total inventories | $75,190,197 | $46,038,456 |
Land_Use_Rights_Details
Land Use Rights (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of land use right | ' | ' |
Land use rights | $3,163,861 | $3,163,861 |
Less: accumulated amortization | -342,390 | -362,389 |
Land use rights, net | $2,821,471 | $2,801,472 |
Land_Use_Rights_Details_Textua
Land Use Rights (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
sqm | ||
Land Use Rights (Textual) | ' | ' |
Land use right acquired in Nanjing Jiangning Economic and Technological Development Zone during year 2006, useful life | '50 years | ' |
Area of land acquired in Nanjing Jiangning Economic and Technological Development Zone during year 2006 | 112,442 | ' |
Amortization expenses | $73,385 | $71,183 |
Expected amortization expense year one | 72,000 | ' |
Expected amortization expense year two | 72,000 | ' |
Expected amortization expense year three | 72,000 | ' |
Expected amortization expense year four | 72,000 | ' |
Expected amortization expense year five | $72,000 | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of property and equipment | ' | ' |
Property and equipment, gross | $37,500,481 | $30,227,057 |
Less: accumulated depreciation | 19,130,154 | 14,158,322 |
Property and equipment, net | 18,370,327 | 16,068,735 |
Property and plant [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | 16,929,771 | 13,134,192 |
Leasehold improvements [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | 12,870,846 | 11,499,672 |
Construction in progress [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | 1,171,788 | 149,514 |
Equipment and machinery [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | 3,504,666 | 3,691,593 |
Office equipment and furniture [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | 2,096,829 | 1,216,415 |
Motor vehicles [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property and equipment, gross | $926,581 | $535,671 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment (Textual) | ' | ' |
Depreciation expense | $6,395,422 | $4,895,736 |
Payable_to_Officers_and_Employ1
Payable to Officers and Employees (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Payable to Officers and Employees (Textual) | ' | ' |
Description of bank interest under incentive plan | 'Eligible employees could make loans to the Company and earn interest equal to prevailing China bank loan interest rates, normally two to four times rates on savings accounts | ' |
Payable to officers and employees | ' | $2,341,574 |
Other_Payables_and_Accrued_Lia2
Other Payables and Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of other payables and accrued liabilities | ' | ' |
Accrued professional fees | $57,336 | $41,497 |
Advance from customers | 2,843,374 | 444,681 |
Accrued wages and welfare | 6,121,912 | 4,279,561 |
Other payables | 7,105,892 | 5,781,451 |
Total other payables and accrued liabilities | $16,128,514 | $10,547,190 |
Bank_Loans_Details
Bank Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of bank loans | ' | ' |
Bank loans | $53,338,748 | $46,919,680 |
Nanjing Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 18,526,618 | 16,743,277 |
Bank of Communications [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 9,245,108 | 6,953,834 |
Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 8,210,699 | 3,387,620 |
China Minsheng Banking [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 4,953,069 | 4,239,800 |
HSBC [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 3,499,552 | 5,414,316 |
Everbright Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 3,272,000 | 3,166,000 |
Pin an Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 2,196,102 | ' |
Industrial and Commercial Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 1,799,600 | ' |
Huaxia Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 1,636,000 | ' |
Shanghai Pudong Development Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | ' | $7,014,833 |
Bank_Loans_Details_Textual
Bank Loans (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 14, 2013 | Jun. 14, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 14, 2013 | Jun. 14, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 10, 2013 | Apr. 10, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 29, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | Ever-Glory Apparel and Perfect Dream [Member] | Ever-Glory Apparel and Perfect Dream [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of China [Member] | Bank of China [Member] | Bank of China [Member] | Bank of China [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | Everbright Bank [Member] | Everbright Bank [Member] | China Minsheng Banking [Member] | China Minsheng Banking [Member] | China Minsheng Banking [Member] | Ping an Bank [Member] | Huaxia Bank [Member] | Huaxia Bank [Member] | |
Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La GO GO [Member] | La GO GO [Member] | La GO GO [Member] | La GO GO [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La GO GO [Member] | La GO GO [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever-Glory Apparel and Perfect Dream [Member] | Ever-Glory Apparel and Perfect Dream [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever-Glory Apparel and Perfect Dream [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La GO GO [Member] | La GO GO [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | |||
USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | |||
Bank Loans (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, maximum borrowing capacity | ' | ' | ' | ' | ' | $8,180,000 | 50,000,000 | ' | ' | $9,820,000 | 60,000,000 | ' | ' | ' | ' | $3,270,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, amount borrowed | ' | ' | 4,760,000 | 11,600,000 | 8,180,000 | ' | ' | 3,270,000 | 20,000,000 | ' | ' | ' | ' | 2,450,000 | 15,000,000 | ' | ' | 1,800,000 | 11,000,000 | 5,230,000 | 32,000,000 | 3,270,000 | 20,000,000 | 1,640,000 | 10,000,000 | ' | ' | 3,500,000 | 17,000,000 | ' | ' | ' | 3,270,000 | 20,000,000 | 1,680,000 | 3,270,000 | 20,000,000 | 2,200,000 | 1,640,000 | 10,000,000 |
Effective interest rate during the period | 6.00% | 5.53% | ' | ' | 6.16% | ' | ' | 6.60% | ' | ' | ' | ' | ' | 6.16% | ' | ' | ' | 5.60% | 5.60% | 6.30% | ' | 6.30% | 6.30% | 6.05% | ' | ' | ' | ' | ' | 3.30% | 6.00% | ' | 6.30% | 6.30% | 3.19% | 6.30% | 6.30% | 3.25% | 6.60% | ' |
Due date of revolving line of credit agreement | ' | ' | ' | ' | 'January to April 2014 | ' | ' | 'September 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'June 2014 | 'June 2014 | 'February 2014. | ' | 'July 2014. | 'July 2014. | 'April 2014 | ' | ' | ' | 'January to April 2014 | ' | ' | ' | ' | 'October 2014. | 'October 2014. | 'February 2014 | 'August 2014. | 'August 2014. | 'February to March 2014 | 'April 2014. | ' |
Revolving line of credit agreement, unused capacity | ' | ' | ' | ' | ' | ' | ' | 1,930,000 | ' | ' | ' | ' | ' | 820,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due date of additional borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'January 2014 | ' | ' | ' | 'March to May 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate revolving line of credit agreement, additional borrowings | ' | ' | ' | ' | ' | ' | ' | 4,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 740,000 | ' | ' | ' | 6,570,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit interest rate on additional borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.80% | 2.20% | ' | ' | ' | ' | ' | ' | 3.85% | ' | ' | ' | ' | ' | 2.56% | 2.94% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, collateral amount | ' | ' | ' | ' | ' | ' | ' | 6,580,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | 9,400,000 | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | 3,140,000 | ' | ' |
Revolving line of credit agreement, repaid amount | ' | ' | ' | ' | 6,540,000 | ' | ' | 4,620,000 | ' | ' | ' | ' | ' | 820,000 | ' | ' | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | 1,680,000 | ' | ' | 2,200,000 | 1,640,000 | ' |
Interest paid | $3,005,579 | $2,103,103 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Liability_Details
Derivative Liability (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Warrant Liability (Textual) | ' | ' |
Derivative notional amount | $3,000,000 | ' |
Common stock shares purchasable by warrants outstanding | ' | 840,454 |
Change in fair value of derivative liability | $294,000 | $96,800 |
Description of warrants at the time of expiration | ' | ' |
The warrants expired in June 2013. At the expiration date, the remaining value of the warrants not exercised ($2,000) was reduced to $0. |
Income_Tax_Details
Income Tax (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | $17,366,012 | $14,710,553 |
PRC [Member] | ' | ' |
Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | 26,617,298 | 7,727,981 |
SAMOA [Member] | ' | ' |
Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | -9,521,787 | 6,922,098 |
BVI [Member] | ' | ' |
Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | -3,499 | -28,518 |
Others [Member] | ' | ' |
Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | $274,000 | $88,992 |
Income_Tax_Details_1
Income Tax (Details 1) (PRC [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
PRC [Member] | ' | ' |
Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ' |
PRC statutory rate | 25.00% | 25.00% |
Non-taxable items | -0.60% | -0.20% |
Effect of foreign income tax rates | 13.70% | -11.70% |
Other | 0.10% | -0.10% |
Effective income tax rate | 38.20% | 13.00% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of income tax expense | ' | ' |
Current | $2,345,500 | $1,165,918 |
Deferred | 4,164,509 | 629,526 |
Income tax expense | $6,627,434 | $1,907,611 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax (Textual) | ' | ' |
Tax liability | $6,627,434 | $1,907,611 |
PRC [Member] | ' | ' |
Income Tax (Textual) | ' | ' |
PRC statutory rate | 25.00% | 25.00% |
Income tax rate on dividend distribution | 10.00% | ' |
Samoa | ' | ' |
Income Tax (Textual) | ' | ' |
Tax liability | $3,186,000 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Basic and diluted earnings per share | ' | ' |
Weighted average number of common shares- Basic and diluted | 14,778,080 | 14,767,253 |
Earnings per share - basic and diluted | $0.73 | $0.87 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) (Warrant [Member], USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Warrant [Member] | ' |
Earnings Per Share (Textual) | ' |
Antidilutive securities excluded from computation of diluted earnings per share | 840,454 |
Warrant exercise price | $3.20 |
Average trading price | $1.63 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (Warrant [Member], USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Warrant [Member] | ' | ' |
Summary of status of warrants outstanding and exercisable | ' | ' |
Options outstanding, Exercise Price | $3.20 | ' |
Options outstanding, Number of Shares | 840,454 | 840,454 |
Options outstanding, Average Remaining Contractual Life | '5 months 5 days | ' |
Options exercisable, Number of Shares | 840,454 | ' |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 16, 2012 | Mar. 14, 2012 | Aug. 19, 2013 | Feb. 28, 2013 | Mar. 21, 2012 | |
Warrant [Member] | Warrant [Member] | Goldenway [Member] | La GO GO [Member] | New-Tailun [Member] | Ever-Glory Apparel and Perfect Dream [Member] | Catch Luck [Member] | Taixin [Member] | Jiangsu La GO GO [Member] | Three Independent Directors [Member] | Three Independent Directors [Member] | Three Independent Directors [Member] | Three Independent Directors [Member] | One Independent Director [Member] | ||
Stockholders' Equity (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares issued to independent directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,328 | 3,346 | 3,631 | 5,340 | 1,723 |
Common stock issued at five days average market price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.58 | $1.94 | $2.73 | $1.89 | $1.94 |
Number of days used to calculation average market price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Five days before the grant date | 'Five days before the grant date | 'Five days before the grant date | 'Five days before the grant date | 'Five days before the grant date |
Percentage of registered capital contributed to statutory reserve as per prc law | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Appropriations made to statutory reserve | ' | ' | ' | $187,551 | $1,264,197 | ' | $2,154,853 | ' | $258,102 | $29,850 | ' | ' | ' | ' | ' |
Options outstanding, Number of Shares in connection with a 2007 private placement | ' | 840,454 | 840,454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants expiration date | 30-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of appropriations to the statutory surplus reserve | 'Appropriations to the statutory surplus reserve are to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities' registered capital. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of appropriations to the statutory public welfare fund | 'Appropriations to the statutory public welfare fund are 10% of the after tax net income determined in accordance with PRC GAAP. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condition to contribute to statutory fund reserve | 'Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies' registered capital. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of other income from Related Parties | ' | ' |
Total | $28,245 | $26,686 |
EsCeLav [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | 12,105 | 10,856 |
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | $16,140 | $15,830 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of other expenses due to related parties | ' | ' |
Total | $92,437 | $82,517 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of other expenses due to related parties | ' | ' |
Total | 50,680 | 49,675 |
Kunshan Enjin [Member] | ' | ' |
Summary of other expenses due to related parties | ' | ' |
Total | $41,757 | $32,842 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of sub-contracts with related parties | ' | ' |
Total | $16,787,399 | $10,232,599 |
Ever-Glory Vietnam [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 8,716,372 | 4,144,156 |
Ever-Glory Cambodia [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 6,628,314 | 4,225,835 |
Nanjing Ever-Kyowa [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 1,135,851 | 948,917 |
Nanjing Knitting [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 254,812 | 859,747 |
EsC'Lav [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 10,253 | 15,981 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | $41,797 | $37,963 |
Related_Party_Transactions_Det3
Related Party Transactions (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of accounts payable - related parties | ' | ' |
Total | $4,102,456 | $3,158,814 |
Ever-Glory Vietnam [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 2,473,271 | 2,183,039 |
Nanjing Knitting [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 784,777 | 756,842 |
Ever-Glory Cambodia [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 582,453 | 90,428 |
Nanjing Ever-Kyowa [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | $261,955 | $128,505 |
Related_Party_Transactions_Det4
Related Party Transactions (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of amounts due from related parties | ' | ' |
Total | $1,896,376 | $8,680 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 1,738,879 | ' |
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 145,206 | ' |
EsCeLav [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | $12,291 | $8,680 |
Related_Party_Transactions_Det5
Related Party Transactions (Details Textual) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Subsequent Event [Member] | USD ($) | USD ($) | Rental Receivable [Member] | Bills Receivable [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||
USD ($) | USD ($) | USD ($) | ||||||||||||||||||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of raw material | ' | ' | ' | ' | ' | $703,353 | ' | $126,485 | ' | ' | ' | ' | ' | ' | $726,288 | ' | $2,493,691 | ' | ' | ' | ' | ' |
Transactions ceased under counter guarantee | ' | ' | ' | ' | ' | 10,340,000 | 64,000,000 | 32,130,000 | 203,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment received under counter guarantee | ' | ' | ' | ' | ' | 26,550,000 | 164,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company sold raw materials | 20,823,859 | 33,573,977 | ' | ' | ' | 76,518 | ' | 1,032,261 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub-contracts with related parties | 16,787,399 | 10,232,599 | ' | ' | ' | 41,797 | ' | 37,963 | ' | ' | ' | ' | ' | ' | 254,812 | ' | 859,747 | ' | ' | ' | ' | ' |
Line of credit facility, collateral amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,910,000 | 103,000,000 | 20,900,000 | 132,000,000 | ' | ' | ' | ' |
Guarantee on lines of credit | ' | ' | ' | ' | ' | 44,010,000 | 269,000,000 | 44,480,000 | 281,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,780,000 | 127,000,000 | 22,000,000 | 139,000,000 |
Counter guaranty provided by parent company on lines of credit | ' | ' | 5,070,000 | 31,000,000 | ' | 32,130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of counter guarantee | ' | ' | ' | ' | ' | 10,340,000 | 64,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage counter-guaranty on lines of credit | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, Interest rate at expiration or termination | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Guarantee reduced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,790,000 | 103,000,000 | ' | ' |
Percentage of reduced guarantee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.15% | 38.15% | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,290,000 | ' | ' | ' |
Interest charged on net amounts due | ' | ' | ' | ' | ' | 0.50% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income payable to related party | ' | ' | ' | ' | ' | 1,030,000 | ' | 1,260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from related parties | 1,896,376 | 8,680 | ' | ' | ' | 1,738,879 | ' | ' | ' | 1,908,000,000 | 145,206 | ' | 16,140 | 129,066 | ' | ' | ' | ' | ' | ' | ' | ' |
Value of equity redemption | ' | ' | ' | ' | ' | 19,080,000 | ' | 33,570,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advance payment for purchase of raw material to related party | ' | ' | ' | ' | ' | 1,232,295 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency exchange adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 870,000 | ' | ' | ' |
Interest received | ' | ' | $1,300,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
Summary of future minimum lease payments | ' |
2014 | $262,000 |
2015 | 274,000 |
2016 | 286,000 |
Total | $822,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Kunshan Enjin [Member] | Kunshan Enjin [Member] | Kunshan Enjin [Member] | Huajiang West Road Shahe [Member] | Huajiang West Road Shahe [Member] | Operating lease commitment [Member] | |
USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | |||
Commitments and Contingencies (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease expiration | ' | ' | 31-Dec-14 | 31-Dec-14 | ' | 31-Dec-14 | 31-Dec-14 | ' | ' | ' | ' |
Annual rental under operating lease commitment | ' | ' | $50,000 | 314,000 | ' | $41,700 | 258,720 | ' | $420,000 | 2,600,000 | ' |
Rental expense | $64,885,278 | $39,005,167 | $50,680 | ' | $49,675 | $41,757 | ' | $32,842 | $16,000 | 100,000 | $477,946 |
Lease term | ' | ' | 'The lease term is one year and can be renewed once a year. | 'The lease term is one year and can be renewed once a year. | ' | 'The lease term is one year and can be renewed once a year. | 'The lease term is one year and can be renewed once a year. | ' | 'The lease is 40 years starting from January 1, 2013 | 'The lease is 40 years starting from January 1, 2013 | ' |
Concentrations_and_Risks_Detai
Concentrations and Risks (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues earned in geographic areas | ' | ' |
Net revenue | $368,078,425 | $279,633,212 |
Wholesale business [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 178,346,124 | 171,041,099 |
Retail business [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 189,732,301 | 108,592,113 |
The People's Republic of China [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 80,541,243 | 70,161,563 |
Germany [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 19,043,278 | 21,627,788 |
United Kingdom [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 23,566,685 | 22,885,131 |
Europe-Other [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 18,703,908 | 15,154,483 |
Japan [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | 22,182,271 | 23,082,506 |
United States [Member] | ' | ' |
Revenues earned in geographic areas | ' | ' |
Net revenue | $14,308,739 | $18,129,628 |
Concentrations_and_Risks_Detai1
Concentrations and Risks (Details Textual) | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Wholesale business [Member] | Wholesale business [Member] | Wholesale business [Member] | Wholesale business [Member] | Wholesale business [Member] | Retail business [Member] | Retail business [Member] | Retail business [Member] | |
Manufacturer | Revenues [Member] | Finished Goods [Member] | Finished Goods [Member] | Finished Goods [Member] | Supplier | Raw Materials [Member] | Raw Materials [Member] | |
Customer | Manufacturer One [Member] | Manufacturer Two [Member] | Manufacturer Three [Member] | Supplier One [Member] | Supplier Two [Member] | |||
Concentrations and Risks (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Number of wholesale customer | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of raw materials suppliers | ' | ' | ' | ' | ' | 2 | ' | ' |
Number of manufacturers | 2 | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 11.00% | 14.00% | 13.00% | 11.00% | ' | 15.00% | 12.00% |
Segments_Details
Segments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | $368,078,425 | $279,633,212 |
Income from operations | 18,145,867 | 15,083,900 |
Interest income | 1,186,402 | 1,348,646 |
Interest expense | 3,005,579 | 2,103,103 |
Depreciation and amortization | 6,468,807 | 4,961,510 |
Income tax expense | 6,627,434 | 1,907,611 |
Wholesale segment [Member] | ' | ' |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | 178,346,124 | 171,041,099 |
Income from operations | 10,183,770 | 11,474,640 |
Interest income | 1,154,160 | 1,336,513 |
Interest expense | 2,695,683 | 1,911,212 |
Depreciation and amortization | 996,807 | 989,594 |
Income tax expense | 4,470,690 | 1,024,133 |
Retail segment [Member] | ' | ' |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | 189,732,301 | 108,592,113 |
Income from operations | 7,962,097 | 3,609,260 |
Interest income | 32,242 | 12,133 |
Interest expense | 309,896 | 191,891 |
Depreciation and amortization | 5,472,000 | 3,977,325 |
Income tax expense | $2,156,744 | $883,478 |
Segments_Details_Textual
Segments (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segments (Textual) | ' |
Number of reportable segments | 2 |