Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
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-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 14,781,241 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $26,713,468 | $27,772,878 |
Accounts receivable | 66,559,337 | 80,317,630 |
Inventories | 71,590,668 | 75,190,197 |
Value added tax receivable | 3,025,665 | 2,620,277 |
Other receivables and prepaid expenses | 2,261,068 | 1,821,695 |
Advances on inventory purchases | 6,247,509 | 6,010,027 |
Amounts due from related parties | 1,858,319 | 1,896,376 |
Total Current Assets | 178,256,034 | 195,629,080 |
LAND USE RIGHT, NET | 2,779,006 | 2,821,471 |
PROPERTY AND EQUIPMENT, NET | 18,073,715 | 18,370,327 |
TOTAL ASSETS | 199,108,755 | 216,820,878 |
CURRENT LIABILITIES | ' | ' |
Bank loans | 51,459,842 | 53,338,748 |
Accounts payable | 61,477,458 | 72,855,960 |
Accounts payable and other payables - related parties | 2,539,741 | 4,102,456 |
Other payables and accrued liabilities | 15,022,174 | 16,128,514 |
Value added and other taxes payable | 5,290,466 | 5,399,187 |
Income tax payable | 966,771 | 489,307 |
Deferred tax liabilities | 7,335,851 | 7,391,029 |
Total Current Liabilities | 144,092,303 | 159,705,201 |
TOTAL LIABILITIES | 144,092,303 | 159,705,201 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stockholders' equity of the Company: | ' | ' |
Preferred stock ($.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 14,781,241 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively) | 14,781 | 14,781 |
Additional paid-in capital | 3,572,157 | 3,572,157 |
Retained earnings | 56,007,754 | 53,618,026 |
Statutory reserve | 10,212,268 | 10,212,268 |
Accumulated other comprehensive income | 8,083,999 | 8,783,425 |
Amounts due from related party | -22,874,507 | -19,084,980 |
Total Stockholders' Equity | 55,016,452 | 57,115,677 |
TOTAL LIABILITIES AND EQUITY | $199,108,755 | $216,820,878 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 14,781,241 |
Common stock, shares outstanding | 14,781,241 | 14,781,241 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' |
NET SALES | $106,015,169 | $78,311,490 |
COST OF SALES | 80,234,212 | 58,018,567 |
GROSS PROFIT | 25,780,957 | 20,292,923 |
OPERATING EXPENSES | ' | ' |
Selling expenses | 16,123,296 | 11,851,296 |
General and administrative expenses | 6,394,988 | 4,472,447 |
Total Operating Expenses | 22,518,284 | 16,323,743 |
INCOME FROM OPERATIONS | 3,262,673 | 3,969,180 |
OTHER (EXPENSES) INCOME | ' | ' |
Interest income | 241,333 | 295,602 |
Interest expense | -707,115 | -791,529 |
Change in fair value of derivative liability | ' | 292,000 |
Other income | 471,759 | 31,457 |
Total Other Income (Expenses) | 5,977 | -172,470 |
INCOME BEFORE INCOME TAX EXPENSE | 3,268,650 | 3,796,710 |
INCOME TAX EXPENSE | -878,922 | -709,631 |
NET INCOME | 2,389,728 | 3,087,079 |
OTHER COMPREHENSIVE INCOME: | ' | ' |
Foreign currency translation gain | -699,426 | 307,842 |
COMPREHENSIVE INCOME | $1,690,302 | $3,394,921 |
NET INCOME PER SHARE | ' | ' |
Basic and diluted | $0.16 | $0.21 |
Weighted average number of shares outstanding | ' | ' |
Basic and diluted | 14,781,241 | 14,774,109 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $2,389,728 | $3,087,079 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,890,926 | 1,630,645 |
Change in fair value of derivative liability | ' | -292,000 |
Deferred income tax | 8,127 | 462,621 |
Stock-based compensation | ' | 10,082 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | 17,809,670 | 10,700,670 |
Inventories | 3,036,070 | 2,626,306 |
Value added tax receivable | -430,976 | 226,843 |
Other receivables and prepaid expenses | -458,329 | 98,044 |
Advances on inventory purchases | -291,050 | -470,766 |
Amounts due from related party | -194,329 | -2,403,246 |
Accounts payable | -15,412,782 | -12,019,711 |
Accounts payable and other payables- related parties | -1,558,269 | 691,972 |
Other payables and accrued liabilities | -975,382 | -1,960,716 |
Value added and other taxes payable | -80,674 | 886,502 |
Income tax payable | 502,907 | -33,020 |
Net cash provided by operating activities | 6,235,637 | 3,241,305 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -1,731,912 | -1,755,269 |
Net cash used in investing activities | -1,731,912 | -1,755,269 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from bank loans | 37,918,802 | 22,468,567 |
Repayment of bank loans | -39,378,591 | -27,748,567 |
Advances to related party | -5,065,400 | -4,812,775 |
Interest received from related party | 1,307,200 | ' |
Repayment from related party | ' | 15,806,585 |
Net cash provided by (used in) financing activities | -5,217,989 | 5,713,810 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -345,146 | 38,378 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | -1,059,410 | 7,238,224 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 27,772,878 | 9,365,958 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 26,713,468 | 16,604,182 |
Cash paid during the period for: | ' | ' |
Interest | 707,115 | 791,529 |
Income taxes | $385,582 | $171,084 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation [Abstract] | ' |
BASIS OF PRESENTATION | ' |
NOTE 1 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 Company’s wholesale operations are provided primarily through the Company’s wholly-owned PRC subsidiaries, Goldenway Nanjing Garments Co. Ltd. (“Goldenway”), Nanjing Catch-Luck Garments Co. Ltd. (“Catch-Luck”), Nanjing New-Tailun Garments Co. Ltd (“New-Tailun”), Ever-Glory International Group Apparel Inc.(“Ever-Glory Apparel”) and Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”), and the Company’s wholly-owned Samoa subsidiary, Ever-Glory International Group (HK) Ltd. (“Ever-Glory HK”). The Company’s retail operations are provided through its wholly- owned subsidiaries, Shanghai LA GO GO Fashion Company Limited (“Shanghai LA GO GO”), Jiangsu LA GO GO Fashion Company Limited (“Jiangsu LA GO GO”), Shanghai Ya Lan Fashion Company Limited (“Ya Lan”) and Xizang He Meida Trading Company Limited (“He Meida”). | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of comprehensive income, and cash flows for the three months ended March 31, 2014 and 2013. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. Wholesale revenues are generally higher in the third and fourth fiscal quarters, while retail revenues are generally higher in the first and fourth fiscal quarters. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||
Mar. 31, 2014 | |||
Significant Accounting Policies [Abstract] | ' | ||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES | |||
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 March 31, 2014, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
As of March 31, 2014 and December 31, 2013, The Company has a derivative liability subject to recurring fair value measurement ( Level 3) with the change in fair value recognized in earnings (Note 5). | |||
Foreign Currency Translation and Other Comprehensive Income | |||
The reporting currency of the Company is the U.S. dollar. The functional currency of the Company, Ever-Glory HK and Perfect Dream Limited, British Virgin Islands incorporated subsidiary of the Company (“Perfect Dream”) is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Tai Xin, Shanghai LA GO GO, Jiangsu LA GO GO, Ya Lan and He Meida is the Chinese RMB. | |||
For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and 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. Items in the cash flow statement are translated at the average exchange rate for the period. | |||
Recently Issued Accounting Pronouncements | |||
The Company reviews new accounting standards and 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 | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 3 INVENTORIES | |||||||||
Inventories at March 31, 2014 and December 31, 2013 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,934,948 | $ | 5,658,519 | |||||
Work-in-progress | 29,291,626 | 25,862,185 | |||||||
Finished goods | 51,782,742 | 55,664,077 | |||||||
83,009,316 | 87,184,781 | ||||||||
Less: allowance for obsolete inventories | (11,418,648 | ) | (11,994,584 | ) | |||||
Total inventories | $ | 71,590,668 | $ | 75,190,197 | |||||
Bank_Loans
Bank Loans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
BANK LOANS | ' | ||||||||
NOTE 4 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. Bank loans consisted of the following at March 31, 2014 and December 31, 2013: | |||||||||
Bank | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Nanjing Bank | $ | 12,147,020 | $ | 18,526,618 | |||||
Industrial and Commercial Bank of China | 10,250,586 | 1,799,600 | |||||||
Bank of Communications | 8,591,572 | 9,245,108 | |||||||
Bank of China | 6,546,924 | 8,210,699 | |||||||
HSBC | 5,915,543 | 3,499,552 | |||||||
Bank of Everbright | 3,244,000 | 3,272,000 | |||||||
China Minsheng Banking | 3,244,000 | 4,953,069 | |||||||
Pin An Bank | 1,520,197 | 2,196,102 | |||||||
Huaxia Bank | - | 1,636,000 | |||||||
$ | 51,459,842 | $ | 53,338,748 | ||||||
On June 14, 2013, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.11 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 March 31, 2014, Goldenway had borrowed $5.68 (RMB35 million) under this line of credit from Nanjing Bank with an annual interest rate of 6.16% from April to August 2014. At March 31, 2014, approximately 2.43 million was unused and available under this line of credit. Approximately $1.62 million was repaid subsequent to March 31, 2014. | |||||||||
On June 14, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.73 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory. As of March 31, 2014, Ever-Glory Apparel had borrowed $1.62 million (RMB 10 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 $2.42 million from Nanjing Bank with annual interest rates ranging from 1.67% to 2.78% and due on various dates from May to June 2014, and collateralized by approximately $3.86 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $5.69 million was unused and available under this line of credit. | |||||||||
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 $3.24 million (RMB20 million). The line of credit is guaranteed by Mr. Kang. As of March 31, 2014, LA GO GO had borrowed $2.43million (RMB15 million) under this line of credit with an annual interest rate of 6.16% and due on various dates from April and July 2014. At March 31, 2014, approximately $0.81 million (RMB5 million) was unused and available under this line of credit. Approximately $1.62 million was repaid subsequent to March 31, 2014. | |||||||||
On January 1, 2014, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $6.49 million (RMB40 million). These loans are collateralized by the Company’s property and equipment. As of March 31, 2014, Goldenway had borrowed $6.49 million (RMB40 million) under this line of credit with an annual interest rate of 5.77% and due one June 2014. | |||||||||
On January 1, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $4.87 million (RMB30 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of March 31, 2014, Ever-Glory Apparel had borrowed $3.76 million (RMB 20.5 million and USD 0.44 million) under this line of credit with an annual interest rate of 1.04% and due on various dates from June to July 2014, and collateralized by approximately $4.82 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $1.11 million was unused and available under this line of credit. | |||||||||
On January 29, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.43 million (RMB52 million) with the Bank of Communications and 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. As of March 31, 2014, Ever-Glory Apparel had borrowed $4.06 million (RMB25 million) with an annual interest rate of 6.9% and due on various dates from February to March 2015. Ever-Glory Apparel had also borrowed $1.29 million from the Bank of Communications with an annual interest rate of 5.75% and due in February 2015, and collateralized by approximately $2.01 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $3.08 million was unused and available under this line of credit. | |||||||||
On July 16, 2013, LA GO GO entered into a line of credit agreement for approximately $3.57 million (RMB22 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory and Mr. Kang. As of March 31, 2014, LA GO GO had borrowed $3.24 million (RMB20 million) from the Bank of Communications with an annual interest rate of 6.3% and due in July 2014. At March 31, 2014, approximately $0.33 million was unused and available under this line of credit. | |||||||||
On November 11, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.68 million (RMB35 million) with the Bank of China and guaranteed by Jiangsu Ever-Glory and Mr. Kang. As of March 31, 2014, Ever-Glory Apparel had borrowed $1.62 million (RMB10 million) with an annual interest rate of 6.05% and due in April 2014 under this line of credit. Ever-Glory Apparel had also borrowed $4.92 million ($1.2 million and RMB 23 million) from the Bank of China with annual interest rates ranging from 2.56% to 5.6%, due on various dates from May to June 2014, and collateralized by approximately $7.1 million of accounts receivable from wholesale customers. Approximately $1.62 million was repaid subsequent to March 31, 2014. | |||||||||
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 $7.0 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of March 31, 2014, Ever-Glory Apparel had borrowed $5.92 million from HSBC with an annual interest rates ranging from 2.78% to 5.88%, due on various dates from April to June 2014, and collateralized by approximately $7.9 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of March 31, 2014, approximately $1.48 million was unused and available. Approximately $1.14 million was repaid subsequent to March 31, 2014. | |||||||||
On September 1, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $11.35 million (RMB70 million) with Everbright Bank, and collateralized by assets of Jiangsu Ever-Glory , This loan is also guaranteed by Goldenway and Mr. Kang. As of March 31, 2014, Ever-Glory Apparel had borrowed $3.24 million (RMB20.0 million) from Everbright Bank, with an annual interest rate of 6.3% and due in October 2014. At March 31, 2014, approximately $8.11 million was unused and available under this line of credit. | |||||||||
As of March 31, 2014, LA GO GO had borrowed $3.24 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. | |||||||||
As of March 31, 2014, Ever-Glory Apparel had borrowed $1.52 million from Ping An Bank, with annual interest rate of 3.25%, due on April 2014, and collateralized by approximately $2.1 million of accounts receivable from wholesale customers. Approximately $1.52 million was repaid subsequent to March 31, 2014. | |||||||||
Total interest expense on bank loans amounted to $707,115 and $791,529 for the three months ended March 31, 2014 and 2013, respectively. |
Derivative_Liability
Derivative Liability | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Warrant Liability [Abstract] | ' |
DERIVATIVE WARRANT LIABILITY | ' |
NOTE 5 DERIVATIVE LIABILITY | |
At March 31, 2014, the Company had one outstanding forward foreign exchange option contract (sell US dollars for RMB), with a notional amount of US$3,000,000, that expires in September 2014. The fair value of this contract at March 31, 2014, as well as gains and losses realized on other foreign currency derivative activity during 2014 and 2013 were 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 $292,000 for the three months ended March 31, 2013. |
Income_Tax
Income Tax | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax [Abstract] | ' | ||||||||
INCOME TAX | ' | ||||||||
NOTE 6 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 three months ended March 31, 2014 and 2013 was taxable in the following jurisdictions: | |||||||||
2014 | 2013 | ||||||||
PRC | $ | 3,274,013 | $ | 4,337,578 | |||||
Samoa | - | (826,471 | ) | ||||||
BVI | (363 | ) | (1,315 | ) | |||||
Others | (5,000 | ) | 286,918 | ||||||
$ | 3,268,650 | $ | 3,796,710 | ||||||
The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
PRC statutory rate | 25 | % | 25 | % | |||||
Non-taxable items | - | (2.6 | ) | ||||||
Effect of foreign income tax rates | - | (5.4 | ) | ||||||
Other | 1.9 | 1.7 | |||||||
Effective income tax rate | 26.9 | % | 18.7 | % | |||||
Income tax expense for the three months ended March 31, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Current | $ | 934,100 | $ | 229,044 | |||||
Deferred | (55,178 | ) | 480,587 | ||||||
Income tax expense | $ | 878,922 | $ | 709,631 | |||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 7 EARNINGS PER SHARE | |||||||||
The following demonstrates the calculation for earnings per share for the three months ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Net income | $ | 2,389,728 | $ | 3,087,079 | |||||
Weighted average number of common shares –Basic and diluted | 14,781,241 | 14,774,109 | |||||||
Earnings per share –Basic and diluted | $ | 0.16 | $ | 0.21 | |||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
NOTE 8 STOCKHOLDERS’ EQUITY | |
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. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
NOTE 9 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-term in nature and are expected to be settled in cash. | |||||||||
Other income from Related Parties | |||||||||
Included in other income for the three months ended March 31, 2014 and 2013 is rent revenue from entities controlled by Mr. Kang under operating lease agreements as follows: | |||||||||
2014 | 2013 | ||||||||
EsCeLav | $ | - | $ | 2,983 | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd. | - | 3,980 | |||||||
Total | $ | - | $ | 6,963 | |||||
Other expenses due to Related Parties | |||||||||
Included in other expenses for the months ended March 31, 2014 and 2013 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows: | |||||||||
2014 | 2013 | ||||||||
Jiangsu Ever-Glory | $ | 12,827 | $ | 12,670 | |||||
Kunshan Enjin | 10,569 | 10,439 | |||||||
Total | $ | 23,396 | $ | 23,109 | |||||
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 from Nanjing Knitting totaling $433,450 and $83,238 during the three months ended March 31, 2014 and 2013, respectively. | |||||||||
In addition, the Company sub-contracted certain manufacturing work to related companies totaling $5,910,121 and $3,985,507 for the three months ended March 31, 2014 and 2013, 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 three months ended March 31, 2014 and 2013 are as follows: | |||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Nanjing High-Tech | $ | - | $ | 21,306 | |||||
Nanjing Ever-Kyowa | 435,519 | 267,985 | |||||||
Ever-Glory Vietnam | 3,188,264 | 1,919,106 | |||||||
Ever-Glory Cambodia | 2,261,054 | 1,774,527 | |||||||
EsC'eLav | - | 2,583 | |||||||
Jiangsu Ever-Glory | 25,284 | - | |||||||
Total | $ | 5,910,121 | $ | 3,985,507 | |||||
Accounts Payable – Related Parties | |||||||||
The accounts payable to related parties at March 31, 2014 and December 31, 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Ever-Glory Vietnam | $ | 1,663,908 | $ | 2,473,271 | |||||
Nanjing Knitting | - | 784,777 | |||||||
Ever-Glory Cambodia | 447,831 | 582,453 | |||||||
Nanjing Ever-Kyowa | 428,002 | 261,955 | |||||||
Total | $ | 2,539,741 | $ | 4,102,456 | |||||
Amounts Due From Related Parties current assets | |||||||||
The amounts due from related parties at March 31, 2014 and December 31, 2013 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
EsC'eLav | $ | 24,235 | $ | 12,291 | |||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | 20,520 | 145,206 | |||||||
Nanjing Knitting | 239,387 | - | |||||||
Jiangsu Ever-Glory | 1,574,177 | 1,738,879 | |||||||
Total | $ | 1,858,319 | $ | 1,896,376 | |||||
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 three months ended March 31, 2014 and 2013, 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 $0 and $72,548 during the three month period ended March 31, 2014 and 2013, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at cost for $19,221 and $0 during the three months ended March 31, 2014 and 2013, respectively. | |||||||||
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, 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 March 31, 2014 and December 31, 2013, Jiangsu Ever-Glory has provided guarantees for approximately $46.87 million (RMB 289 million) and $44.01 million (RMB 269 million) 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 $16.71 million (RMB 103 million) as of March 31, 2014 and December 31, 2013. Mr. Kang has also provided a personal guarantee for $20.6 million (RMB 127 million). | |||||||||
During the three months ended March 31, 2013, US$4.82 million (RMB30.25 million) was provided to Jiangsu Ever-Glory under the counter-guarantee. US$16.79 million (RMB103 million) was outstanding at December 31, 2013. During three months ended March 31, 2014, an additional $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. As of March 31, 2014, the amount of the counter-guarantee was $21.7 million (RMB 134 million) (the difference represents currency exchange adjustment of $0.16 million), which was 46.4% of the aggregate amount of lines of credit. This amount plus accrued interest of $1.20 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At March 31, 2014 and 2013, the amount classified as a reduction of equity was $22.87 million and $22.88 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Interest income for the three months ended March 31, 2014 and 2013 was approximately $0.2 million and $0.3 million, respectively. |
Concentrations_and_Risks
Concentrations and Risks | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Concentrations and Risks [Abstract] | ' | ||||||||
CONCENTRATIONS AND RISKS | ' | ||||||||
NOTE 10 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 March 31, 2014 and December 31, 2013. 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 in 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. | |||||||||
For the three-month period ended March 31, 2014, the Company had two wholesale customers that represented approximately 14% and 11% of the Company’s revenues. For the three-month period ended March 31, 2013, the Company had two wholesale customers that represented approximately 13% and 11% of the Company’s revenues. | |||||||||
For the wholesale business, the Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2014 and 2013. | |||||||||
For the retail business, The Company relied on one raw material supplier that represented approximately 12% of raw material purchases during the three months ended March 31, 2013. The Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2013. | |||||||||
For the wholesale business, during the three months ended March 31, 2014, the Company relied on two manufacturers that represented 17% and 12% of finished goods purchases, and during the three months ended March 31, 2013, the Company relied on two manufacturers that represented 13% and 12% of finished goods purchases. The first two manufacturers are related party companies. Ever-Glory Vietnam and Ever-Glory Cambodia. | |||||||||
For the retail business, the Company did not rely on any one supplier that represented more than 10% of the total finished goods purchases during the three months ended March 31, 2014 and 2013. | |||||||||
The Company’s revenues for the three months ended March 31, 2014 and 2013 were earned in the following geographic areas: | |||||||||
2014 | 2013 | ||||||||
The People’s Republic of China(PRC) | $ | 14,598,025 | $ | 13,031,064 | |||||
Germany | 6,298,160 | 4,371,333 | |||||||
United Kingdom | 2,624,147 | 2,864,634 | |||||||
France | 3,924,062 | 3,412,988 | |||||||
Europe-Other | 2,531,860 | 554,627 | |||||||
Japan | 6,242,892 | 3,698,834 | |||||||
United States | 3,222,343 | 3,726,975 | |||||||
Total wholesale business | 39,441,489 | 31,660,455 | |||||||
Retail business-PRC | 66,573,680 | 46,651,035 | |||||||
Total | $ | 106,015,169 | $ | 78,311,490 | |||||
Segments
Segments | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
SEGMENTS | ' | ||||||||||||
NOTE 11 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 | ||||||||||||
March 31,2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 39,441,489 | $ | 66,573,680 | $ | 106,015,169 | |||||||
Income from operations | $ | 1,415,920 | $ | 1,846,753 | $ | 3,262,673 | |||||||
Interest income | $ | 226,627 | $ | 14,706 | $ | 241,333 | |||||||
Interest expense | $ | 566,567 | $ | 140,548 | $ | 707,115 | |||||||
Depreciation and amortization | $ | 264,546 | $ | 1,626,380 | $ | 1,890,926 | |||||||
Income tax expense | $ | 297,639 | $ | 544,848 | $ | 842,487 | |||||||
March 31,2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 31,660,455 | $ | 46,651,035 | $ | 78,311,490 | |||||||
Income from operations | $ | 2,792,628 | $ | 1,176,552 | $ | 3,969,180 | |||||||
Interest income | $ | 291,927 | $ | 3,675 | $ | 295,602 | |||||||
Interest expense | $ | 734,027 | $ | 57,502 | $ | 791,529 | |||||||
Depreciation and amortization | $ | 233,711 | $ | 1,396,934 | $ | 1,630,645 | |||||||
Income tax expense | $ | 428,154 | $ | 281,477 | $ | 709,631 | |||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Significant Accounting Policies [Abstract] | ' | ||
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 March 31, 2014, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
As of March 31, 2014 and December 31, 2013, The Company has a derivative liability subject to recurring fair value measurement ( Level 3) with the change in fair value recognized in earnings (Note 5). | |||
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 the Company, Ever-Glory HK and Perfect Dream Limited, British Virgin Islands incorporated subsidiary of the Company (“Perfect Dream”) is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Tai Xin, Shanghai LA GO GO, Jiangsu LA GO GO, Ya Lan and He Meida is the Chinese RMB. | |||
For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and 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. Items in the cash flow statement are translated at the average exchange rate for the period. | |||
Recently Issued Accounting Pronouncements | ' | ||
Recently Issued Accounting Pronouncements | |||
The Company reviews new accounting standards and 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_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of inventory | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,934,948 | $ | 5,658,519 | |||||
Work-in-progress | 29,291,626 | 25,862,185 | |||||||
Finished goods | 51,782,742 | 55,664,077 | |||||||
83,009,316 | 87,184,781 | ||||||||
Less: allowance for obsolete inventories | (11,418,648 | ) | (11,994,584 | ) | |||||
Total inventories | $ | 71,590,668 | $ | 75,190,197 | |||||
Bank_Loans_Tables
Bank Loans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
Schedule of bank loans | ' | ||||||||
Bank | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Nanjing Bank | $ | 12,147,020 | $ | 18,526,618 | |||||
Industrial and Commercial Bank of China | 10,250,586 | 1,799,600 | |||||||
Bank of Communications | 8,591,572 | 9,245,108 | |||||||
Bank of China | 6,546,924 | 8,210,699 | |||||||
HSBC | 5,915,543 | 3,499,552 | |||||||
Bank of Everbright | 3,244,000 | 3,272,000 | |||||||
China Minsheng Banking | 3,244,000 | 4,953,069 | |||||||
Pin An Bank | 1,520,197 | 2,196,102 | |||||||
Huaxia Bank | - | 1,636,000 | |||||||
$ | 51,459,842 | $ | 53,338,748 |
Income_Tax_Tables
Income Tax (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax [Abstract] | ' | ||||||||
Summary of Pre-tax income in jurisdictions | ' | ||||||||
2014 | 2013 | ||||||||
PRC | $ | 3,274,013 | $ | 4,337,578 | |||||
Samoa | - | (826,471 | ) | ||||||
BVI | (363 | ) | (1,315 | ) | |||||
Others | (5,000 | ) | 286,918 | ||||||
$ | 3,268,650 | $ | 3,796,710 | ||||||
Summary of Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ||||||||
2014 | 2013 | ||||||||
PRC statutory rate | 25 | % | 25 | % | |||||
Non-taxable items | - | (2.6 | ) | ||||||
Effect of foreign income tax rates | - | (5.4 | ) | ||||||
Other | 1.9 | 1.7 | |||||||
Effective income tax rate | 26.9 | % | 18.7 | % | |||||
Summary of Components of income tax expense | ' | ||||||||
2014 | 2013 | ||||||||
Current | $ | 934,100 | $ | 229,044 | |||||
Deferred | (55,178 | ) | 480,587 | ||||||
Income tax expense | $ | 878,922 | $ | 709,631 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Summary of Basic and diluted earnings per share | ' | ||||||||
2014 | 2013 | ||||||||
Net income | $ | 2,389,728 | $ | 3,087,079 | |||||
Weighted average number of common shares –Basic and diluted | 14,781,241 | 14,774,109 | |||||||
Earnings per share –Basic and diluted | $ | 0.16 | $ | 0.21 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Summary of other income from related parties | ' | ||||||||
2014 | 2013 | ||||||||
EsCeLav | $ | - | $ | 2,983 | |||||
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd. | - | 3,980 | |||||||
Total | $ | - | $ | 6,963 | |||||
Summary of other expenses due to related parties | ' | ||||||||
2014 | 2013 | ||||||||
Jiangsu Ever-Glory | $ | 12,827 | $ | 12,670 | |||||
Kunshan Enjin | 10,569 | 10,439 | |||||||
Total | $ | 23,396 | $ | 23,109 | |||||
Summary of sub-contracts with related parties | ' | ||||||||
March 31, | March 31, | ||||||||
2014 | 2013 | ||||||||
Nanjing High-Tech | $ | - | $ | 21,306 | |||||
Nanjing Ever-Kyowa | 435,519 | 267,985 | |||||||
Ever-Glory Vietnam | 3,188,264 | 1,919,106 | |||||||
Ever-Glory Cambodia | 2,261,054 | 1,774,527 | |||||||
EsC'eLav | - | 2,583 | |||||||
Jiangsu Ever-Glory | 25,284 | - | |||||||
Total | $ | 5,910,121 | $ | 3,985,507 | |||||
Summary of accounts payable - related parties | ' | ||||||||
2014 | 2013 | ||||||||
Ever-Glory Vietnam | $ | 1,663,908 | $ | 2,473,271 | |||||
Nanjing Knitting | - | 784,777 | |||||||
Ever-Glory Cambodia | 447,831 | 582,453 | |||||||
Nanjing Ever-Kyowa | 428,002 | 261,955 | |||||||
Total | $ | 2,539,741 | $ | 4,102,456 | |||||
Summary of amounts due from related party | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
EsC'eLav | $ | 24,235 | $ | 12,291 | |||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | 20,520 | 145,206 | |||||||
Nanjing Knitting | 239,387 | - | |||||||
Jiangsu Ever-Glory | 1,574,177 | 1,738,879 | |||||||
Total | $ | 1,858,319 | $ | 1,896,376 | |||||
Concentrations_and_Risks_Table
Concentrations and Risks (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Concentrations and Risks [Abstract] | ' | ||||||||
Company's revenues as per geographic areas | ' | ||||||||
2014 | 2013 | ||||||||
The People’s Republic of China(PRC) | $ | 14,598,025 | $ | 13,031,064 | |||||
Germany | 6,298,160 | 4,371,333 | |||||||
United Kingdom | 2,624,147 | 2,864,634 | |||||||
France | 3,924,062 | 3,412,988 | |||||||
Europe-Other | 2,531,860 | 554,627 | |||||||
Japan | 6,242,892 | 3,698,834 | |||||||
United States | 3,222,343 | 3,726,975 | |||||||
Total wholesale business | 39,441,489 | 31,660,455 | |||||||
Retail business-PRC | 66,573,680 | 46,651,035 | |||||||
Total | $ | 106,015,169 | $ | 78,311,490 | |||||
Segments_Tables
Segments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
Company's financial and operating information | ' | ||||||||||||
Wholesale | Retail | Total | |||||||||||
segment | segment | ||||||||||||
March 31,2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 39,441,489 | $ | 66,573,680 | $ | 106,015,169 | |||||||
Income from operations | $ | 1,415,920 | $ | 1,846,753 | $ | 3,262,673 | |||||||
Interest income | $ | 226,627 | $ | 14,706 | $ | 241,333 | |||||||
Interest expense | $ | 566,567 | $ | 140,548 | $ | 707,115 | |||||||
Depreciation and amortization | $ | 264,546 | $ | 1,626,380 | $ | 1,890,926 | |||||||
Income tax expense | $ | 297,639 | $ | 544,848 | $ | 842,487 | |||||||
March 31,2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 31,660,455 | $ | 46,651,035 | $ | 78,311,490 | |||||||
Income from operations | $ | 2,792,628 | $ | 1,176,552 | $ | 3,969,180 | |||||||
Interest income | $ | 291,927 | $ | 3,675 | $ | 295,602 | |||||||
Interest expense | $ | 734,027 | $ | 57,502 | $ | 791,529 | |||||||
Depreciation and amortization | $ | 233,711 | $ | 1,396,934 | $ | 1,630,645 | |||||||
Income tax expense | $ | 428,154 | $ | 281,477 | $ | 709,631 | |||||||
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of inventory | ' | ' |
Raw materials | $1,934,948 | $5,658,519 |
Work-in-progress | 29,291,626 | 25,862,185 |
Finished goods | 51,782,742 | 55,664,077 |
Inventory gross | 83,009,316 | 87,184,781 |
Less: allowance for obsolete inventories | -11,418,648 | -11,994,584 |
Total inventories | $71,590,668 | $75,190,197 |
Bank_Loans_Details
Bank Loans (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of bank loans | ' | ' |
Bank loans | $51,459,842 | $53,338,748 |
Nanjing Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 12,147,020 | 18,526,618 |
Industrial and Commercial Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 10,250,586 | 1,799,600 |
Bank of Communications [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 8,591,572 | 9,245,108 |
Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 6,546,924 | 8,210,699 |
HSBC [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 5,915,543 | 3,499,552 |
Bank of Everbright [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 3,244,000 | 3,272,000 |
China Minsheng Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 3,244,000 | 4,953,069 |
Ping An Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 1,520,197 | 2,196,102 |
Hua Xia Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | ' | $1,636,000 |
Bank_Loans_Details_Textual
Bank Loans (Details Textual) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 14, 2013 | Jun. 14, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 14, 2013 | Jun. 14, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 10, 2013 | Apr. 10, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 01, 2014 | Jan. 01, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 01, 2014 | Jan. 01, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 29, 2014 | Jan. 29, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 16, 2013 | Jul. 16, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Nov. 11, 2013 | Nov. 11, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 29, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 01, 2013 | Sep. 01, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | 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] | Nanjing Bank [Member] | Nanjing Bank [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [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 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] | Bank of China [Member] | Bank of China [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | Everbright Bank [Member] | Everbright Bank [Member] | Everbright Bank [Member] | Everbright Bank [Member] | China Minsheng Bank [Member] | China Minsheng Bank [Member] | Ping An Bank [Member] | |
Goldenway [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] | Goldenway [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] | 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] | Ever Glory Apparel [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] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La Go Go [Member] | La Go Go [Member] | Ever Glory Apparel [Member] | ||||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | ||||
Bank Loans (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, maximum borrowing capacity | ' | ' | ' | ' | ' | $8,110,000 | 50,000,000 | ' | ' | $9,730,000 | 60,000,000 | ' | ' | ' | ' | $3,240,000 | 20,000,000 | ' | ' | $6,490,000 | 40,000,000 | $440,000 | 20,500,000 | $4,870,000 | 30,000,000 | ' | ' | $8,430,000 | 52,000,000 | ' | ' | $3,570,000 | 22,000,000 | $1,620,000 | 10,000,000 | $5,680,000 | 35,000,000 | ' | ' | ' | $7,000,000 | ' | ' | ' | ' | $11,350,000 | 70,000,000 | $3,240,000 | 20,000,000 | $1,520,000 |
Revolving line of credit agreement, amount borrowed | ' | ' | ' | 5,680,000 | 35,000,000 | ' | ' | 1,620,000 | 10,000,000 | ' | ' | ' | ' | 2,430,000 | 15,000,000 | ' | ' | 6,490,000 | 40,000,000 | ' | ' | 3,760,000 | ' | ' | ' | 4,060,000 | 25,000,000 | ' | ' | 3,240,000 | 20,000,000 | ' | ' | 1,200,000 | 23,000,000 | ' | ' | ' | ' | 5,920,000 | ' | ' | ' | 3,240,000 | 20,000,000 | ' | ' | ' | ' | ' |
Revolving line of credit agreement, borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,920,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate during the period | ' | ' | ' | 6.16% | ' | ' | ' | 6.60% | ' | ' | ' | 1.67% | 2.78% | 6.16% | ' | ' | ' | 5.77% | 5.77% | ' | ' | 1.04% | 1.04% | ' | ' | 6.90% | ' | ' | ' | 6.30% | 6.30% | ' | ' | 6.05% | ' | ' | ' | ' | ' | ' | ' | 2.78% | 5.88% | 6.30% | 6.30% | ' | ' | 6.30% | 6.30% | 3.25% |
Due date of revolving line of credit agreement | ' | ' | ' | ' | ' | ' | ' | 'September 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'June to July 2014 | 'June to July 2014 | ' | ' | 'February to March, 2015 | ' | ' | ' | 'July 2014 | 'July 2014 | ' | ' | 'April 2014 | ' | ' | ' | ' | ' | 'April to June 2014 | ' | ' | ' | 'October 2014 | 'October 2014 | ' | ' | 'August 2014 | 'August 2014 | 'April 2014 |
Revolving line of credit agreement, unused capacity | ' | ' | ' | 2,430,000 | ' | ' | ' | 5,690,000 | ' | ' | ' | ' | ' | 810,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | 1,110,000 | ' | ' | ' | 3,080,000 | ' | ' | ' | 330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,470,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due date of additional borrowing | ' | ' | 'July 2013 | 'April to August 2014 | ' | ' | ' | 'May to June 2014 | ' | ' | ' | ' | ' | 'April and July 2014 | ' | ' | ' | 'June 2014 | 'June 2014 | ' | ' | ' | ' | ' | ' | 'February 2015 | ' | ' | ' | ' | ' | ' | ' | 'May to June 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate revolving line of credit agreement, additional borrowings | ' | ' | ' | ' | ' | ' | ' | 2,420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit interest rate on additional borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.56% | 5.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, repaid subsequent to current period | ' | ' | ' | 1,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,620,000 | ' | ' | ' | ' | ' | 1,080,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,520,000 |
Accounts receivable from wholesale customers | ' | ' | ' | ' | ' | ' | ' | 3,860,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,820,000 | ' | ' | ' | 2,010,000 | ' | ' | ' | ' | ' | ' | ' | 7,100,000 | ' | ' | ' | ' | ' | 7,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 |
Total interest expense | $707,115 | $791,529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Liability_Details
Derivative Liability (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | |
Derivative Warrant Liability (Textual) | ' | ' | ' |
Derivative notional amount | $3,000,000 | ' | ' |
Common stock shares purchasable by warrants outstanding | ' | ' | 840,454 |
Reduction in remaining value of warrants | ' | ' | 'At the expiration date, the remaining value of the warrants not exercised ($2,000) was reduced to $0. |
Change in fair value of derivative liability | ' | 292,000 | ' |
Warrants expiration date | 30-Sep-14 | ' | 30-Jun-13 |
Foreign currency derivative activity | ' | ' | ' |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | $3,268,650 | $3,796,710 |
PRC [Member] | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | 3,274,013 | 4,337,578 |
Samoa [Member] | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | ' | 826,471 |
BVI [Member] | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | -363 | -1,315 |
Others [Member] | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' |
Pre-tax income | ($5,000) | $286,918 |
Income_Tax_Details_1
Income Tax (Details 1) (PRC [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
PRC [Member] | ' | ' |
Summary of Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ' |
PRC statutory rate | 25.00% | 25.00% |
Non-taxable items | ' | -2.60% |
Effect of foreign income tax rates | ' | -5.40% |
Other | 1.90% | 1.70% |
Effective income tax rate | 26.90% | 18.70% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Components of income tax expense | ' | ' |
Current | $934,100 | $229,044 |
Deferred | 8,127 | 462,621 |
Income tax expense | $878,922 | $709,631 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (PRC [Member], USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
PRC [Member] | ' | ' | ' |
Income Tax (Textual) | ' | ' | ' |
PRC statutory rate | 25.00% | 25.00% | ' |
Tax liability | ' | ' | $3,186,000 |
Withholding tax rate for dividends distribution | 10.00% | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of Basic and diluted earnings per share | ' | ' |
Net income | $2,389,728 | $3,087,079 |
Weighted average number of common shares- Basic and diluted | 14,781,241 | 14,774,109 |
Earnings per share - Basic and diluted | $0.16 | $0.21 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (Three Independent Directors [Member], USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Aug. 19, 2013 | Feb. 28, 2013 | |
Three Independent Directors [Member] | ' | ' | ' |
Stockholders' Equity (Textual) | ' | ' | ' |
Common stock shares issued to independent directors | ' | 3,631 | 5,340 |
Common stock issued at five days average market price | ' | $2.73 | $1.89 |
Number of days used to calculation average market price of common stock | 'Five days before the grant date. | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of other income from Related Parties | ' | ' |
Total | ' | $6,963 |
EsCeLav [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | ' | 2,983 |
Nanjing Eight-One-Five Hi-Tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | ' | $3,980 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of other expenses due to related parties | ' | ' |
Total | $23,396 | $23,109 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of other expenses due to related parties | ' | ' |
Total | 12,827 | 12,670 |
Kunshan Enjin [Member] | ' | ' |
Summary of other expenses due to related parties | ' | ' |
Total | $10,569 | $10,439 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of sub-contracts with related parties | ' | ' |
Total | $5,910,121 | $3,985,507 |
Nanjing High-Tech [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | ' | 21,306 |
Nanjing Ever-Kyowa [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 435,519 | 267,985 |
Ever-Glory Vietnam [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 3,188,264 | 1,919,106 |
Ever-Glory Cambodia [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | 2,261,054 | 1,774,527 |
EsCeLav [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | ' | 2,583 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of sub-contracts with related parties | ' | ' |
Total | $25,284 | ' |
Related_Party_Transactions_Det3
Related Party Transactions (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of accounts payable - related parties | ' | ' |
Total | $2,539,741 | $4,102,456 |
Ever-Glory Vietnam [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 1,663,908 | 2,473,271 |
Nanjing Knitting [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | ' | 784,777 |
Ever-Glory Cambodia [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 447,831 | 582,453 |
Nanjing Ever-Kyowa [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | $428,002 | $261,955 |
Related_Party_Transactions_Det4
Related Party Transactions (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of amounts due from related parties | ' | ' |
Total | $1,858,319 | $1,896,376 |
EsCeLav [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 24,235 | 12,291 |
Nanjing Eight-One-Five Hi-Tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 20,520 | 145,206 |
Nanjing Knitting [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 239,387 | ' |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | $1,574,177 | $1,738,879 |
Related_Party_Transactions_Det5
Related Party Transactions (Details Textual) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Jiangsu Ever-Glory [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | ||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of raw material | ' | ' | ' | $0 | ' | $72,548 | ' | ' | ' | $433,450 | ' | $83,238 | ' | ' | ' | ' |
Sub-contracts with related parties | 5,910,121 | 3,985,507 | ' | 25,284 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company sold raw materials | ' | ' | ' | 19,221 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, collateral amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,710,000 | 103,000,000 | ' | 16,710,000 | 103,000,000 | ' | ' |
Transactions ceased under counter guarantee | ' | ' | ' | ' | ' | 4,820,000 | 30,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranty on lines of credit | ' | ' | ' | 46,870,000 | 289,000,000 | ' | ' | 44,010,000 | 269,000,000 | ' | ' | ' | ' | ' | 20,600,000 | 127,000,000 |
Minimum amount of counter guarantee | ' | ' | ' | 5,070,000 | 31,000,000 | ' | ' | 16,790,000 | 103,000,000 | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage counter-guaranty on lines of credit | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, Interest rate at expiration or termination | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income payable to related party | 200,000 | 300,000 | ' | 1,300,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest, classified as a reduction of equity | ' | ' | ' | 22,870,000 | ' | 22,880,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in counter guarantee amount as percentage of line of credit | ' | ' | ' | 46.40% | 46.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Guarantee reduced | ' | ' | ' | 21,700,000 | 134,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency exchange adjustment | ' | ' | ' | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations_and_Risks_Detai
Concentrations and Risks (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Company's revenues as per geographic areas | ' | ' |
Net revenue | $106,015,169 | $78,311,490 |
Wholesale business [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 39,441,489 | 31,660,455 |
Retail business-PRC [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 66,573,680 | 46,651,035 |
The People's Republic of China(PRC) [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 14,598,025 | 13,031,064 |
Germany [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 6,298,160 | 4,371,333 |
United Kingdom [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 2,624,147 | 2,864,634 |
France [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 3,924,062 | 3,412,988 |
Europe-Other [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 2,531,860 | 554,627 |
Japan [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | 6,242,892 | 3,698,834 |
United States [Member] | ' | ' |
Company's revenues as per geographic areas | ' | ' |
Net revenue | $3,222,343 | $3,726,975 |
Concentrations_and_Risks_Detai1
Concentrations and Risks (Details Textual) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Manufacturer | Manufacturer | |
Customer | Customer | |
Wholesale business [Member] | ' | ' |
Concentrations and Risks (Textual) | ' | ' |
Number of wholesale customer | 2 | 2 |
Percentage of revenues hold by wholesale customer one | 14.00% | 13.00% |
Percentage of revenues hold by wholesale customer two | 11.00% | 11.00% |
Percentage of raw materials not relied on supplier | 10.00% | 10.00% |
Number of manufacturers of finished goods | 2 | 2 |
Percentage of purchased finished goods represented by manufacturer one | 17.00% | 13.00% |
Percentage of purchased finished goods represented by manufacturer two | 12.00% | 12.00% |
Retail business-PRC [Member] | ' | ' |
Concentrations and Risks (Textual) | ' | ' |
Number of raw materials suppliers | ' | 1 |
Percentage of raw materials purchases represented by supplier one | ' | 12.00% |
Percentage of raw materials not relied on supplier | ' | 10.00% |
Percentage of finished goods not relied on supplier | 10.00% | 10.00% |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | $106,015,169 | $78,311,490 |
Income from operations | 3,262,673 | 3,969,180 |
Interest income | 241,333 | 295,602 |
Interest expense | 707,115 | 791,529 |
Depreciation and amortization | 1,890,926 | 1,630,645 |
Income tax expense | 878,922 | 709,631 |
Wholesale segment [Member] | ' | ' |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | 39,441,489 | 31,660,455 |
Income from operations | 1,415,920 | 2,792,628 |
Interest income | 226,627 | 291,927 |
Interest expense | 566,567 | 734,027 |
Depreciation and amortization | 264,546 | 233,711 |
Income tax expense | 297,639 | 428,154 |
Retail segment [Member] | ' | ' |
Summary of segment profit or loss: | ' | ' |
Net revenue from external customers | 66,573,680 | 46,651,035 |
Income from operations | 1,846,753 | 1,176,552 |
Interest income | 14,706 | 3,675 |
Interest expense | 140,548 | 57,502 |
Depreciation and amortization | 1,626,380 | 1,396,934 |
Income tax expense | $544,848 | $281,477 |