Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 09, 2014 | |
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 | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 14,784,094 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $15,985,554 | $27,772,878 |
Accounts receivable | 93,338,912 | 80,317,630 |
Inventories | 90,606,382 | 75,190,197 |
Value added tax receivable | 6,980,825 | 2,620,277 |
Other receivables and prepaid expenses | 3,586,159 | 1,821,695 |
Advances on inventory purchases | 7,952,510 | 6,010,027 |
Amounts due from related parties | 2,064,891 | 1,896,376 |
Total Current Assets | 220,515,233 | 195,629,080 |
LAND USE RIGHT, NET | 4,057,140 | 2,821,471 |
PROPERTY AND EQUIPMENT, NET | 19,687,735 | 18,370,327 |
TOTAL ASSETS | 244,260,108 | 216,820,878 |
CURRENT LIABILITIES | ' | ' |
Bank loans | 49,048,137 | 53,338,748 |
Accounts payable | 84,524,262 | 72,855,960 |
Accounts payable and other payables - related parties | 6,237,631 | 4,102,456 |
Other payables and accrued liabilities | 18,911,184 | 16,128,514 |
Value added and other taxes payable | 6,464,882 | 5,399,187 |
Income tax payable | 5,383,668 | 489,307 |
Deferred tax liabilities | 4,803,010 | 7,391,029 |
Total Current Liabilities | 175,372,774 | 159,705,201 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stockholders' equity of the Company: | ' | ' |
Preferred stock ($.001 par value, authorized 5,000,000 shares, no shares issued and outstanding) | ' | ' |
Common stock ($.001 par value, authorized 50,000,000 shares, 14,784,094 and 14,781,241 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively) | 14,784 | 14,781 |
Additional paid-in capital | 3,587,195 | 3,572,157 |
Retained earnings | 66,674,596 | 53,618,026 |
Statutory reserve | 10,212,268 | 10,212,268 |
Accumulated other comprehensive income | 8,318,736 | 8,783,425 |
Amounts due from related party | -19,920,245 | -19,084,980 |
Total Stockholders' Equity | 68,887,334 | 57,115,677 |
TOTAL LIABILITIES AND EQUITY | $244,260,108 | $216,820,878 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 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 | 14,784,094 | 14,781,241 |
Common stock, shares outstanding | 14,784,094 | 14,781,241 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET SALES | $139,949,325 | $106,659,519 | $331,632,274 | $244,100,494 |
COST OF SALES | 106,118,870 | 81,254,688 | 242,671,071 | 178,924,172 |
GROSS PROFIT | 33,830,455 | 25,404,831 | 88,961,203 | 65,176,322 |
OPERATING EXPENSES | ' | ' | ' | ' |
Selling expenses | 17,806,645 | 14,249,753 | 48,332,603 | 35,999,155 |
General and administrative expenses | 9,699,667 | 6,684,580 | 23,634,073 | 16,670,132 |
Total Operating Expenses | 27,506,312 | 20,934,333 | 71,966,676 | 52,669,287 |
INCOME FROM OPERATIONS | 6,324,143 | 4,470,498 | 16,994,527 | 12,507,035 |
OTHER INCOME (EXPENSES) | ' | ' | ' | ' |
Interest income | 327,031 | 272,321 | 904,778 | 910,111 |
Interest expense | -914,480 | -757,390 | -2,396,288 | -2,285,614 |
Change in fair value of derivative liability | ' | ' | ' | 294,000 |
Other income | 1,006,019 | 831,952 | 1,918,242 | 684,311 |
Total Other Income (Expenses) | 418,570 | 346,883 | 426,732 | -397,192 |
INCOME BEFORE INCOME TAX EXPENSE | 6,742,713 | 4,817,381 | 17,421,259 | 12,109,843 |
INCOME TAX EXPENSE | -1,606,015 | -933,933 | -4,364,689 | -2,412,105 |
NET INCOME | 5,136,698 | 3,883,448 | 13,056,570 | 9,697,738 |
Foreign currency translation (loss) gain | -121,307 | 670,518 | -464,689 | 1,828,910 |
COMPREHENSIVE INCOME | $5,015,391 | $4,553,966 | $12,591,881 | $11,526,648 |
EARNINGS PER SHARE | ' | ' | ' | ' |
Basic and diluted | $0.35 | $0.26 | $0.88 | $0.66 |
Weighted average number of shares outstanding | ' | ' | ' | ' |
Basic and diluted | 14,782,668 | 14,779,268 | 14,781,722 | 14,777,015 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $13,056,570 | $9,697,738 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 5,330,152 | 4,822,183 |
Loss from sale of property and equipment | 123,312 | 30,247 |
Change in fair value of derivative liability | ' | -294,000 |
Deferred income tax | -2,536,929 | 444,186 |
Stock-based compensation | 15,041 | 19,996 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -13,570,634 | -2,330,145 |
Inventories | -15,939,969 | -23,146,281 |
Value added tax receivable | -4,385,162 | -3,440,059 |
Other receivables and prepaid expenses | -1,780,015 | 109,775 |
Advances on inventory purchases | -1,989,012 | -4,370,032 |
Amounts due from related parties | 27,024 | -2,256,980 |
Accounts payable | 12,217,725 | 16,915,180 |
Accounts payable and other payables- related parties | 1,162,450 | 2,012,075 |
Other payables and accrued liabilities | 2,904,418 | 1,297,923 |
Value added and other taxes payable | 1,089,052 | -418,702 |
Income tax payable | 4,921,589 | 260,537 |
Net cash provided by (used in) operating activities | 645,612 | -646,359 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -6,870,602 | -6,748,963 |
Purchase of land use right | -1,311,394 | ' |
Proceeds from sale of property and equipment | 16,680 | 13,558 |
Net cash used in investing activities | -8,165,316 | -6,735,405 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from bank loans | 93,577,978 | 78,467,539 |
Repayment of bank loans | -97,488,790 | -78,372,190 |
Repayment of payable to officers and employees | ' | -2,377,074 |
Repayment of loans from related party | 3,542,404 | 18,746,442 |
Advances to related party | -5,040,600 | -7,231,272 |
Interest income received from related party | 1,300,800 | ' |
Net cash(used in) provided by financing activities | -4,108,208 | 9,233,445 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -159,412 | 491,072 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | -11,787,324 | 2,342,753 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 27,772,878 | 9,365,958 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 15,985,554 | 11,708,711 |
Cash paid during the period for: | ' | ' |
Interest | 2,396,288 | 2,285,614 |
Income taxes | $1,997,638 | $1,735,809 |
Summary_of_Business_and_Basis_
Summary of Business and Basis of Presentation | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Summary of Business and Basis of Presentation [Abstract] | ' | ||||
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | ' | ||||
NOTE 1 SUMMARY OF BUSINESS 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 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”), Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”), Chuzhou Hui Rui Garments Co. Ltd. (“Hui Rui”), 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”), Tianjin LA GO GO Fashion Company Limited (“Tianjin LA GO GO”), Shanghai Ya Lan Fashion Company Limited (“Ya Lan”) and Xizang He Meida Trading Company Limited (“He Meida”). | |||||
Chuzhou Hui Rui Garments Co. Ltd (“Hui Rui”), a wholly owned subsidiary of Ever-Glory Apparel, was incorporated in the PRC on July 4, 2014. Hui Rui is principally engaged in the produce and purchase of garments. | |||||
On June 26, 2014, Shanghai LA GO GO entered into a contract with Shanghai Yiduo Fashion Company Limited (“Shanghai Yiduo”) to acquire 78% of the shares of Shanghai Yiduo for $0.75 million (RMB4.6 million) from an unrelated third parties. Shanghai Yiduo operates design and development of women’s apparel for Mecox Lane, one of China’s leading online platforms for apparel and apparel accessories. The purchase price shall be paid as follows. | |||||
Payment Date | Amount | ||||
Before July 8, 2014 | $ | 0.45 million | |||
Before September 28, 2014 | 0.22 million | ||||
Within 10 days after Shanghai Yiduo collects all the accounts receivable from Mecox Lane | 0.08 million | ||||
TOTAL | 0.75 million | ||||
The first $0.45 million and the second 0.22 million installments were paid by the Company to Shanghai Yiduo in July and October 2014, respectively, and was financed by working capital. The completion of the acquisition is subject to the Company’s final due diligence and Shanghai Yiduo’s ability to collect certain account receivables. In the event Shanghai Yiduo is not able to collect the account receivables in accordance to the contract, the Company may either reduce the purchase price or terminate the contract and get back the entire paid installment payments. Management of the Company believes that the acquisition will improve the Company’s design and product development ability. Shanghai Yiduo will become our consolidated subsidiary upon the record of the change of ownership with the local government authority at the beginning of 2015. | |||||
Basis of Presentation | |||||
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 September 30, 2014, the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013, and the condensed consolidated statements of cash flows for the nine months ended September 30, 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 nine months ended September 30, 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, and Form 10-Q for the three and nine months ended September 30, 2013. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 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 September 30, 2014 and 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 higher liquidity. | |||
The Company had two and one outstanding foreign exchange option contract at September 30, 2014 and December 31, 2013, respectively, subject to recurring fair value measurement (Level 3) with the change in fair value recognized in earnings (Note 6). | |||
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, Hui Rui, Shanghai LA GO GO, Jiangsu LA GO GO, Tianjin 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 | |||
In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied retrospectively. Management is currently evaluating the potential impact of this ASU on the Company’s financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 3 INVENTORIES | |||||||||
Inventories at September 30, 2014 and December 31, 2013 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,321,560 | $ | 5,658,519 | |||||
Work-in-progress | 29,202,264 | 25,862,185 | |||||||
Finished goods | 70,340,360 | 55,664,077 | |||||||
101,864,184 | 87,184,781 | ||||||||
Less: Provision for obsolete inventories | (11,257,802 | ) | (11,994,584 | ) | |||||
Total inventories | $ | 90,606,382 | $ | 75,190,197 |
Land_Use_Rights
Land Use Rights | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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. | |||||||||
In 2014, the Company obtained another fifty-year land use right on 23,333 square meters of land in the Suzhou Kunshan Jinxi tower. | |||||||||
Land use rights at September 30, 2014 and December 31, 2013 consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land use rights | $ | 4,475,255 | $ | 3,163,861 | |||||
Less: accumulated amortization | (418,115 | ) | (342,390 | ) | |||||
Land use rights, net | $ | 4,057,140 | $ | 2,821,471 | |||||
Bank_Loans
Bank Loans | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
BANK LOANS | ' | ||||||||
NOTE 5 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 September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
Bank | 2014 | 2013 | |||||||
Bank of Communications | $ | 12,953,543 | $ | 9,245,108 | |||||
Industrial and Commercial Bank of China | 11,967,061 | 1,799,600 | |||||||
The Hong Kong and Shanghai Bank | 7,736,085 | 3,499,552 | |||||||
Nanjing Bank | 6,689,635 | 18,526,618 | |||||||
Pin An Bank | 4,829,813 | 2,196,102 | |||||||
Bank of Everbright | 3,248,000 | 3,272,000 | |||||||
China Minsheng Banking | 1,624,000 | 4,953,069 | |||||||
Bank of China | - | 8,210,699 | |||||||
Huaxia Bank | - | 1,636,000 | |||||||
$ | 49,048,137 | $ | 53,338,748 | ||||||
On January 29, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.44 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. Jiangsu Ever-Glory is an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. As of September 30, 2014, Ever-Glory Apparel had borrowed $4.06 million (RMB25 million) with an annual interest rate of 6.9% and due on March 2015. Ever-Glory Apparel had also borrowed $4.02 million from the Bank of Communications with an annual interest rates ranging from 3.82% to 3.83% and due on various dates from October 2014 to March 2015, and collateralized by approximately $5.01 million of accounts receivable from wholesale customers. At September 30, 2014, approximately $0.36 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 $5.36 million (RMB33 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory and Mr. Kang. As of September 30, 2014, LA GO GO had borrowed $4.87 million (RMB30 million) from the Bank of Communications with an annual interest rates ranging from 6.6% to 6.62% and due on various dates from June to August 2015. As September 30, 2014, approximately $0.49 million was unused and available under this line of credit. | |||||||||
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 $6.50 million (RMB40 million). These loans are collateralized by the Company’s property and equipment. As of September 30, 2014, Goldenway had borrowed $6.50 million (RMB40 million) under this line of credit with an annual interest rate of 6.24% and due on various dates from March to April 2015. | |||||||||
On January 1, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $6.50 million (RMB40 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of September 30, 2014, Ever-Glory Apparel had borrowed $4.79 million (RMB 29.5 million) under this line of credit with an annual interest rate of 7.28% and due on various dates from November to December 2014. Ever-Glory Apparel had also borrowed $0.68 million from Industrial and Commercial Bank of China with annual interest rate of 1.32% and due on October 2014, and collateralized by approximately $1.65 million of accounts receivable from wholesale customers. At September 30, 2014, approximately $1.03 million was unused and available under this line of credit. | |||||||||
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 September 30, 2014, Ever-Glory Apparel had borrowed $2.35 million from HSBC with an annual interest rate of 5.88%, due on various dates from October to December 2014, and collateralized by approximately $8.9 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. At September 30, 2014, approximately $4.65 million was unused and available under this line of credit. | |||||||||
As of September 30, 2014, Ever-Glory HK had borrowed $5.39 million from Hongkong Branch of HSBC, with annual interest of 4.56% and due on various dates from October 2014 to March 2015, and collateralized by approximately $6.1 million of accounts receivable from wholesale customers. | |||||||||
On June 14, 2013, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.12 million (RMB50 million). These loans are guaranteed by Jiangsu Ever-Glory and Mr. Kang. These loans are also collateralized by the Company’s property and equipment. At September 30, 2014, approximately $8.12 million was unused and available under this line of credit. | |||||||||
On June 14, 2013 and renewed on July 6, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.74 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of September 30, 2014, Ever-Glory Apparel had borrowed $4.25 million from Nanjing Bank with annual interest rate of 3.1% and due on various dates from October to November 2014, and collateralized by approximately $5.31 million of accounts receivable from wholesale customers. At September 30, 2014, approximately $5.49 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 $3.25 million (RMB20 million). The line of credit is guaranteed by Mr. Kang. As of September 30, 2014, LA GO GO had borrowed $2.44 million (RMB15 million) under this line of credit with an annual interest rate of 6.16% and due on various dates from October 2014 to January 2015. At September 30, 2014, approximately $0.81 million (RMB5 million) was unused and available under this line of credit. Approximately $1.62 million was repaid subsequent to September 30, 2014. | |||||||||
As of September 30, 2014, Ever-Glory Apparel had borrowed $4.83 million from Ping An Bank, with annual interest rate ranging from 4.0% to 6.14% and due on various dates from October to December 2014, and collateralized by approximately $5.36 million of accounts receivable from wholesale customers. Approximately $2.37 million was repaid subsequent to September 30, 2014. | |||||||||
On September 1, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $11.37 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 September 30, 2014, Ever-Glory Apparel had borrowed $3.25 million (RMB20.0 million) from Everbright Bank, with an annual interest rate of 6.3% and due in October 2014. At September 30, 2014, approximately $8.12 million was unused and available under this line of credit. Approximately $3.25 million was repaid subsequent to September 30, 2014. | |||||||||
As of September 30, 2014, LA GO GO had borrowed $1.62 million (RMB 10 million) from China Minsheng Bank, with annual interest rate of 6.3% and due in August 2015. This loan is guaranteed by Ever-Glory Apparel and Mr. Kang. | |||||||||
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 September 30, 2014, approximately $5.68 million was unused and available. | |||||||||
Total interest expense on bank loans amounted to $914,480, $2,396,288, $757,390, $2,285,614 for the three and nine months ended September 30, 2014 and 2013, respectively. |
Derivatives_Liability
Derivatives Liability | 9 Months Ended |
Sep. 30, 2014 | |
Derivatives Liability [Abstract] | ' |
DERIVATIVES LIABILITY | ' |
NOTE 6 DERIVATIVES LIABILITY | |
At June 30, 2014, the Company had one outstanding forward foreign exchange option contract (sell US dollars for RMB), with a notional amount of US $3 million, that expired in September 2014. The fair value of this contract at June 30, 2014, as well as gains and losses realized on other foreign currency derivative activity during 2014 and 2013 were not significant. | |
At September 30, 2014, we entered into another two forward foreign exchange option contracts (sell US dollars for RMB), with a total notional amount of US $1.7 million, that expires in September 2015. The fair value of this contract at September 30, 2014 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 $0 and $294,000 for the three and nine months ended September 30, 2013, respectively. |
Income_Tax
Income Tax | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Income Tax [Abstract] | ' | ||||||||||||||||
INCOME TAX | ' | ||||||||||||||||
NOTE 7 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. | |||||||||||||||||
He Meida was incorporated in Xizang (Tibet) Autonomous Region and income tax rate is 15%. | |||||||||||||||||
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. | |||||||||||||||||
As of September 30, 2014, the local PRC Tax Bureau is in discussions with the Company to finalize the process of payment for the approximate tax liability of $ 3,186,000. The Company and the PRC Tax Bureau have tentatively agreed that payments on the tax liability will be made by the Company prospectively over the next two to three year period. Beginning January 1, 2014, all net income generated from Ever-Glory HK has been reported as a taxable income at 25% tax rate in PRC. | |||||||||||||||||
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). PRC pre-tax income for the three and nine months ended September 30, 2014 and 2013 was taxable in the following jurisdictions. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
PRC | $ | 6,782,398 | $ | 3,776,280 | $ | 17,495,879 | $ | 9,324,376 | |||||||||
Samoa | - | 1,045,157 | - | 2,507,923 | |||||||||||||
BVI | (42,144 | ) | 862 | (67,079 | ) | (1,456 | ) | ||||||||||
Others | 2,459 | (4,918 | ) | (7,541 | ) | 279,000 | |||||||||||
$ | 6,742,713 | $ | 4,817,381 | $ | 17,421,259 | $ | 12,109,843 | ||||||||||
The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and nine months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
PRC statutory rate | 25 | % | 25 | % | 25 | % | 25 | % | |||||||||
Non-taxable items | - | - | - | (0.8 | ) | ||||||||||||
Income tax exemption | (2.3 | ) | - | (0.9 | ) | - | |||||||||||
Effect of foreign income tax rates | 0.2 | (5.4 | ) | 0.1 | (5.2 | ) | |||||||||||
Other | 0.9 | (0.2 | ) | 0.9 | 0.9 | ||||||||||||
Effective income tax rate | 23.8 | % | 19.4 | % | 25.1 | % | 19.9 | % | |||||||||
Income tax expense for the three and nine months ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current | $ | 1,736,690 | $ | 1,022,641 | $ | 6,952,708 | $ | 1,878,213 | |||||||||
Deferred | (130,675 | ) | (88,708 | ) | (2,588,019 | ) | 533,892 | ||||||||||
Income tax expense | $ | 1,606,015 | $ | 933,933 | $ | 4,364,689 | $ | 2,412,105 | |||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
NOTE 8 EARNINGS PER SHARE | |||||||||||||||||
The following demonstrates the calculation for earnings per share for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 5,136,698 | $ | 3,883,448 | $ | 13,056,570 | $ | 9,697,738 | |||||||||
Weighted average number of common shares –Basic and diluted | 14,782,668 | 14,779,268 | 14,781,722 | 14,777,015 | |||||||||||||
Earnings per share –Basic and diluted | $ | 0.35 | $ | 0.26 | $ | 0.88 | $ | 0.66 | |||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
NOTE 9 STOCKHOLDERS’ EQUITY | |
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. | |
On August 15, 2014, the Company issued an aggregate of 2,055 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 2013. The shares were valued at $4.91 per share, which was the average market price of the common stock for the five days before the grant date. | |
On August 15, 2014, the Company issued an aggregate of 798 shares of its common stock to two of the Company’s independent directors as compensation for their services in the first and second quarters of 2014. The shares were valued at $6.22 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 | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||||||||||
NOTE 10 RELATED PARTY TRANSACTIONS | |||||||||||||||||
Mr. Kang is the Company’s Chairman and Chief Executive Officer. All transactions associated with the following companies controlled by Mr. Kang 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 three and nine months ended September 30, 2013 is rent revenue from entities controlled by Mr. Kang under operating lease agreements as follows. There was no such income in 2014. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
EsCeLav | $ | 3,001 | $ | 9,039 | |||||||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | 4,003 | 12,053 | |||||||||||||||
Total | $ | 7,004 | $ | 21,092 | |||||||||||||
Jiangsu Wubijia trading company limited (“Jiangsu Wubijia”) is an entity engaged in high-grade home goods sales and controlled by Mr. Kang. Jiangsu Wubijia sells their home goods on consignment in the Company’s retail stores. During three months ended September 30, 2014, the Company collected $11,175 when Jiangsu Wubijia’s goods were sold and retained $2,219 as a sales commission which is recorded as an other income. At September 30, 2014, $6,531 was payable to Jiangsu Wubijia. | |||||||||||||||||
Other expenses due to Related Parties | |||||||||||||||||
Included in other expenses for the three and nine months ended September 30, 2014 and 2013 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Jiangsu Ever-Glory | $ | 12,717 | $ | 12,568 | $ | 38,277 | $ | 37,845 | |||||||||
Kunshan Enjin | 10,465 | 8,247 | 31,525 | 25,021 | |||||||||||||
Total | $ | 23,182 | $ | 20,815 | $ | 69,802 | $ | 62,866 | |||||||||
Purchases from, and Sub-contracts with Related Parties | |||||||||||||||||
Shanghai Weiwen Fashion Company Ltd. (Shanghai Weiwen) was incorporated in the PRC in 2012. This company designs and sells women’s apparel utilizing the “Velwin” brand. Shanghai Weiwen is owned by Mr. Kang. Shanghai Ya Lan entered an agreement with Shanghai Weiwen in April 2014 to purchase the “Velwin” brand along with existing inventory of Shanghai Weiwen. No customer relationships, production facilities, or other operating assets were acquired. Management of the Company believes that this asset purchase will provide the Company with additional multi-brand advantages. The purchase price of the inventory and brand was approximately $2.44 million. The purchase price was based primarily on the estimated fair market value of the inventory. | |||||||||||||||||
Shanghai Sea to Sky Fashion Company Ltd. (Shanghai Sea to Sky) was incorporated in the PRC in 2012. This company designs and sells women’s apparel utilizing the “Sea to Sky” brand. Shanghai Sea to Sky is owned by Mr. Kang. Shanghai LA GO GO entered an agreement with Shanghai Sea to Sky in April 2014 to purchase the “Sea to Sky” brand along with existing inventory of Shanghai Sea to Sky. No customer relationships, production facilities, or other operating assets were acquired. Management of the Company believes that this asset purchase will provide the Company with additional multi-brand advantages. The purchase price of the inventory and brand was approximately $0.39 million. The purchase price was based primarily on the estimated fair market value of the inventory. | |||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, the Company purchased raw materials of $730,413, $1,614,483, $911,977, and $1,096,585, respectively, from Nanjing Knitting. | |||||||||||||||||
The Company purchased raw materials of $34,509 during the three and nine months ended September 30, 2013, from Jiangsu Ever-Glory. | |||||||||||||||||
In addition, the Company sub-contracted certain manufacturing work to related parties totaling $4,692,268 and $6,242,241 for the three months ended September 30, 2014 and 2013, respectively; and $15,382,174 and $15,330,667 for the nine months ended September 30, 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 and nine months ended September 30, 2014 and 2013 are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Ever-Glory Vietnam | $ | 2,370,471 | $ | 2,268,642 | $ | 7,335,355 | $ | 7,363,429 | |||||||||
Ever-Glory Cambodia | 1,628,047 | 3,730,538 | 4,585,237 | 6,951,726 | |||||||||||||
Nanjing Ever-Kyowa | 405,957 | 211,501 | 1,267,927 | 735,379 | |||||||||||||
Jiangsu Ever-Glory | 23,962 | 29,929 | 49,246 | 41,542 | |||||||||||||
Shanghai Weiwen | 102,462 | - | 1,605,247 | - | |||||||||||||
Shanghai Sea to Sky | 161,369 | - | 539,162 | - | |||||||||||||
EsC’eLav | - | 1,631 | - | 5,989 | |||||||||||||
Nanjing Knitting | - | - | - | 232,602 | |||||||||||||
Total | $ | 4,692,268 | $ | 6,242,241 | $ | 15,382,174 | $ | 15,330,667 | |||||||||
Accounts Payable – Related Parties | |||||||||||||||||
The Company purchases raw materials from and subcontracts some of its production to related parties. Accounts payable to related parties at September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Nanjing Knitting | $ | - | $ | 784,777 | |||||||||||||
Nanjing Ever-Kyowa | 381,470 | 261,955 | |||||||||||||||
Jiangsu Wubijia | 6,531 | - | |||||||||||||||
Kunshan enjin | 31,512 | - | |||||||||||||||
Ever-Glory Vietnam | 3,622,820 | 2,473,271 | |||||||||||||||
Ever-Glory Cambodia | 148,329 | 582,453 | |||||||||||||||
Shanghai Sea to Sky | 539,162 | - | |||||||||||||||
Shanghai Weiwen | 1,507,807 | - | |||||||||||||||
Total | $ | 6,237,631 | $ | 4,102,456 | |||||||||||||
Amounts Due From Related Parties | |||||||||||||||||
The amounts due from related parties as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
EsC’eLav | $ | 27,690 | $ | 12,291 | |||||||||||||
Nanjing Knitting | 268,275 | - | |||||||||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd. | 20,546 | 145,206 | |||||||||||||||
Jiangsu Ever-Glory | 1,748,380 | 1,738,879 | |||||||||||||||
Total | $ | 2,064,891 | $ | 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 nine months ended September 30, 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 $1.1 million and $72,548 during the nine month period ended September 30, 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 nine months ended September 30, 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 September 30, 2014 and December 31, 2013, Jiangsu Ever-Glory has provided guarantees for approximately $48.72 million (RMB 300 million) and $43.69 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 $16.72 million (RMB 103 million) as of September 30, 2014 and December 31, 2013. Mr. Kang has also provided a personal guarantee for $40.3 million (RMB 248 million) and 20.62 million (RMB 127 million) as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
During the nine months ended September 30, 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 nine months ended September 30, 2014, an additional $5.03 million (RMB 31 million) was provided and approximately $3.54 million (RMB21 million) was returned and $1.30 million (RMB 8 million) of interest income was received under the counter-guarantee agreement. As of September 30, 2014, the amount of the counter-guarantee was $18.2 million (RMB 112 million) (the difference represents currency exchange adjustment of $0.12 million), which was 37.3% of the aggregate amount of lines of credit. This amount plus accrued interest of $1.76 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At September 30, 2014 and 2013, the amount classified as a reduction of equity was $19.92 million and $19.08 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 and nine months ended September 30, 2014 and 2013 was approximately $0.33 million, $0.9 million, $0.27 million and $0.91 million, respectively. |
Concentrations_and_Risks
Concentrations and Risks | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Concentrations and Risks [Abstract] | ' | ||||||||||||||||
CONCENTRATIONS AND RISKS | ' | ||||||||||||||||
NOTE 11 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 September 30, 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 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. | |||||||||||||||||
For the nine-month period ended September 30, 2014, the Company had one wholesale customer that represented approximately 10% of the Company’s revenues, and one customer represented more than 10% of the Company’s revenues for the three-month period ended September 30, 2014. For the nine-month period ended September 30, 2013, the Company had one wholesale customer that represented approximately 10% of the Company’s revenues, and no customer represented more than 10% of the Company’s revenues for the three-month period ended September 30, 2013. | |||||||||||||||||
For the Company’s wholesale business during the three and nine months ended September 30, 2014 and 2013, no supplier represented more than 10% of the total raw material purchases. | |||||||||||||||||
For the Company’s retail business, no supplier represented more than 10% of raw material purchases during the nine months ended September 30, 2014. During the three months ended September 30, 2014, the Company relied on one suppliers for 11% of purchased raw materials. For the Company’s retail business, no supplier represented 10% of raw material purchases during the nine months ended September 30, 2013. During the three months ended September 30, 2013, the Company relied on two suppliers for 10% and 21% of purchased raw materials, respectively. | |||||||||||||||||
For the wholesale business, during the nine months ended September 30, 2014, the Company relied on one manufacturer for 14% of purchased finished goods. During the three months ended September 30, 2014, the Company relied on one manufacturer for 11% of purchased finished goods. For the wholesale business, during the nine months ended September 30, 2013, the Company relied on three manufacturers for 14%, 12% and 12% of purchased finished goods, respectively. During the three months ended September 30, 2013, the Company relied on two manufacturers for 15% and 14% of purchased finished goods, respectively. | |||||||||||||||||
For the retail business, during the three and nine months ended September 30, 2014 and 2013, no supplier represented more than 10% of the total purchased finished goods. | |||||||||||||||||
The Company’s revenues for the three and nine months ended September 30, 2014 and 2013 were earned in the following geographic areas: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
The People’s Republic of China | $ | 34,637,418 | $ | 24,732,196 | $ | 62,164,662 | $ | 46,379,556 | |||||||||
Germany | 9,134,418 | 5,340,945 | 20,958,370 | 13,017,509 | |||||||||||||
United Kingdom | 6,708,804 | 13,138,565 | 18,351,165 | 20,965,094 | |||||||||||||
Europe-Other | 18,316,496 | 8,648,858 | 26,833,816 | 15,751,139 | |||||||||||||
Japan | 6,175,302 | 7,537,032 | 14,850,015 | 16,542,420 | |||||||||||||
United States | 5,079,986 | 4,774,081 | 12,730,466 | 10,227,881 | |||||||||||||
Total wholesale business | 80,052,424 | 64,171,677 | 155,888,494 | 122,883,599 | |||||||||||||
Retail business | 59,896,901 | 42,487,842 | 175,743,780 | 121,216,895 | |||||||||||||
Total | $ | 139,949,325 | $ | 106,659,519 | $ | 331,632,274 | $ | 244,100,494 | |||||||||
Segments
Segments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
SEGMENTS | ' | ||||||||||||
NOTE 12 SEGMENTS | |||||||||||||
The Company reports financial and operating information in the following two segments: | |||||||||||||
(a) Wholesale segment | |||||||||||||
(b) Retail segment | |||||||||||||
Wholesale segment | Retail segment | Total | |||||||||||
Nine months ended September 30, 2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 155,888,494 | $ | 175,743,780 | $ | 331,632,274 | |||||||
Income from operations | $ | 8,302,107 | $ | 8,692,420 | $ | 16,994,527 | |||||||
Interest income | $ | 866,099 | $ | 38,679 | $ | 904,778 | |||||||
Interest expense | $ | 1,971,165 | $ | 425,123 | $ | 2,396,288 | |||||||
Depreciation and amortization | $ | 774,220 | $ | 4,555,932 | $ | 5,330,152 | |||||||
Income tax expense | $ | 1,902,965 | $ | 2,461,724 | $ | 4,364,689 | |||||||
Nine months ended September 30, 2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 122,883,599 | $ | 121,216,895 | $ | 244,100,494 | |||||||
Income from operations | $ | 9,120,617 | $ | 3,386,418 | $ | 12,507,035 | |||||||
Interest income | $ | 889,693 | $ | 20,418 | $ | 910,111 | |||||||
Interest expense | $ | 2,105,457 | $ | 180,157 | $ | 2,285,614 | |||||||
Depreciation and amortization | $ | 733,911 | $ | 4,088,272 | $ | 4,822,183 | |||||||
Income tax expense | $ | 1,433,686 | $ | 978,419 | $ | 2,412,105 | |||||||
Wholesale segment | Retail segment | Total | |||||||||||
Three months ended September 30, 2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 80,052,424 | $ | 59,896,901 | $ | 139,949,325 | |||||||
Income from operations | $ | 4,347,676 | $ | 1,976,467 | $ | 6,324,143 | |||||||
Interest income | $ | 314,834 | $ | 12,197 | $ | 327,031 | |||||||
Interest expense | $ | 771,547 | $ | 142,933 | $ | 914,480 | |||||||
Depreciation and amortization | $ | 258,447 | $ | 1,609,577 | $ | 1,868,024 | |||||||
Income tax expense | $ | 956,847 | $ | 649,168 | $ | 1,606,015 | |||||||
Three months ended September 30, 2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 64,171,677 | $ | 42,487,842 | $ | 106,659,519 | |||||||
Income from operations | $ | 3,780,744 | $ | 689,754 | $ | 4,470,498 | |||||||
Interest income | $ | 265,498 | $ | 6,823 | $ | 272,321 | |||||||
Interest expense | $ | 693,361 | $ | 64,029 | $ | 757,390 | |||||||
Depreciation and amortization | $ | 211,898 | $ | 875,696 | $ | 1,087,594 | |||||||
Income tax expense | $ | 604,852 | $ | 329,081 | $ | 933,933 | |||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 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 September 30, 2014 and 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 higher liquidity. | |||
The Company had two and one outstanding foreign exchange option contract at September 30, 2014 and December 31, 2013, respectively, subject to recurring fair value measurement (Level 3) with the change in fair value recognized in earnings (Note 6). | |||
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, Hui Rui, Shanghai LA GO GO, Jiangsu LA GO GO, Tianjin 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 | |||
In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied retrospectively. Management is currently evaluating the potential impact of this ASU on the Company’s financial statements. |
Summary_of_Business_and_Basis_1
Summary of Business and Basis of Presentation (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Summary of Business and Basis of Presentation [Abstract] | ' | ||||
Summary of Business Acquisition Price | ' | ||||
Payment Date | Amount | ||||
Before July 8, 2014 | $ | 0.45 million | |||
Before September 28, 2014 | 0.22 million | ||||
Within 10 days after Shanghai Yiduo collects all the accounts receivable from Mecox Lane | 0.08 million | ||||
TOTAL | 0.75 million |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of inventories | ' | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 2,321,560 | $ | 5,658,519 | |||||
Work-in-progress | 29,202,264 | 25,862,185 | |||||||
Finished goods | 70,340,360 | 55,664,077 | |||||||
101,864,184 | 87,184,781 | ||||||||
Less: Provision for obsolete inventories | (11,257,802 | ) | (11,994,584 | ) | |||||
Total inventories | $ | 90,606,382 | $ | 75,190,197 |
Land_Use_Rights_Tables
Land Use Rights (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Land Use Rights [Abstract] | ' | ||||||||
Summary of land use rights | ' | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land use rights | $ | 4,475,255 | $ | 3,163,861 | |||||
Less: accumulated amortization | (418,115 | ) | (342,390 | ) | |||||
Land use rights, net | $ | 4,057,140 | $ | 2,821,471 | |||||
Bank_Loans_Tables
Bank Loans (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Bank Loans [Abstract] | ' | ||||||||
Schedule of bank loans | ' | ||||||||
September 30, | December 31, | ||||||||
Bank | 2014 | 2013 | |||||||
Bank of Communications | $ | 12,953,543 | $ | 9,245,108 | |||||
Industrial and Commercial Bank of China | 11,967,061 | 1,799,600 | |||||||
The Hong Kong and Shanghai Bank | 7,736,085 | 3,499,552 | |||||||
Nanjing Bank | 6,689,635 | 18,526,618 | |||||||
Pin An Bank | 4,829,813 | 2,196,102 | |||||||
Bank of Everbright | 3,248,000 | 3,272,000 | |||||||
China Minsheng Banking | 1,624,000 | 4,953,069 | |||||||
Bank of China | - | 8,210,699 | |||||||
Huaxia Bank | - | 1,636,000 | |||||||
$ | 49,048,137 | $ | 53,338,748 |
Income_Tax_Tables
Income Tax (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Income Tax [Abstract] | ' | ||||||||||||||||
Summary of Pre-tax income in jurisdictions | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
PRC | $ | 6,782,398 | $ | 3,776,280 | $ | 17,495,879 | $ | 9,324,376 | |||||||||
Samoa | - | 1,045,157 | - | 2,507,923 | |||||||||||||
BVI | (42,144 | ) | 862 | (67,079 | ) | (1,456 | ) | ||||||||||
Others | 2,459 | (4,918 | ) | (7,541 | ) | 279,000 | |||||||||||
$ | 6,742,713 | $ | 4,817,381 | $ | 17,421,259 | $ | 12,109,843 | ||||||||||
Summary of Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
PRC statutory rate | 25 | % | 25 | % | 25 | % | 25 | % | |||||||||
Non-taxable items | - | - | - | (0.8 | ) | ||||||||||||
Income tax exemption | (2.3 | ) | (0.9 | ) | |||||||||||||
Effect of foreign income tax rates | 0.2 | (5.4 | ) | 0.1 | (5.2 | ) | |||||||||||
Other | 0.9 | (0.2 | ) | 0.9 | 0.9 | ||||||||||||
Effective income tax rate | 23.8 | % | 19.4 | % | 25.1 | % | 19.9 | % | |||||||||
Summary of Components of income tax expense | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current | $ | 1,736,690 | $ | 1,022,641 | $ | 6,952,708 | $ | 1,878,213 | |||||||||
Deferred | (130,675 | ) | (88,708 | ) | (2,588,019 | ) | 533,892 | ||||||||||
Income tax expense | $ | 1,606,015 | $ | 933,933 | $ | 4,364,689 | $ | 2,412,105 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Basic and diluted earnings per share | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 5,136,698 | $ | 3,883,448 | $ | 13,056,570 | $ | 9,697,738 | |||||||||
Weighted average number of common shares –Basic and diluted | 14,782,668 | 14,779,268 | 14,781,722 | 14,777,015 | |||||||||||||
Earnings per share –Basic and diluted | $ | 0.35 | $ | 0.26 | $ | 0.88 | $ | 0.66 | |||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Summary of other income from related parties | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
EsCeLav | $ | 3,001 | $ | 9,039 | |||||||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | 4,003 | 12,053 | |||||||||||||||
Total | $ | 7,004 | $ | 21,092 | |||||||||||||
Summary of other expenses due to related parties | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Jiangsu Ever-Glory | $ | 12,717 | $ | 12,568 | $ | 38,277 | $ | 37,845 | |||||||||
Kunshan Enjin | 10,465 | 8,247 | 31,525 | 25,021 | |||||||||||||
Total | $ | 23,182 | $ | 20,815 | $ | 69,802 | $ | 62,866 | |||||||||
Summary of sub-contracts with related parties | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Ever-Glory Vietnam | $ | 2,370,471 | $ | 2,268,642 | $ | 7,335,355 | $ | 7,363,429 | |||||||||
Ever-Glory Cambodia | 1,628,047 | 3,730,538 | 4,585,237 | 6,951,726 | |||||||||||||
Nanjing Ever-Kyowa | 405,957 | 211,501 | 1,267,927 | 735,379 | |||||||||||||
Jiangsu Ever-Glory | 23,962 | 29,929 | 49,246 | 41,542 | |||||||||||||
Shanghai Weiwen | 102,462 | - | 1,605,247 | - | |||||||||||||
Shanghai Sea to Sky | 161,369 | - | 539,162 | - | |||||||||||||
EsC’eLav | - | 1,631 | - | 5,989 | |||||||||||||
Nanjing Knitting | - | - | - | 232,602 | |||||||||||||
Total | $ | 4,692,268 | $ | 6,242,241 | $ | 15,382,174 | $ | 15,330,667 | |||||||||
Summary of accounts payable - related parties | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Nanjing Knitting | $ | - | $ | 784,777 | |||||||||||||
Nanjing Ever-Kyowa | 381,470 | 261,955 | |||||||||||||||
Jiangsu Wubijia | 6,531 | - | |||||||||||||||
Kunshan enjin | 31,512 | - | |||||||||||||||
Ever-Glory Vietnam | 3,622,820 | 2,473,271 | |||||||||||||||
Ever-Glory Cambodia | 148,329 | 582,453 | |||||||||||||||
Shanghai Sea to Sky | 539,162 | - | |||||||||||||||
Shanghai Weiwen | 1,507,807 | - | |||||||||||||||
Total | $ | 6,237,631 | $ | 4,102,456 | |||||||||||||
Summary of amounts due from related party | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
EsC’eLav | $ | 27,690 | $ | 12,291 | |||||||||||||
Nanjing Knitting | 268,275 | - | |||||||||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd. | 20,546 | 145,206 | |||||||||||||||
Jiangsu Ever-Glory | 1,748,380 | 1,738,879 | |||||||||||||||
Total | $ | 2,064,891 | $ | 1,896,376 |
Concentrations_and_Risks_Table
Concentrations and Risks (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Concentrations and Risks [Abstract] | ' | ||||||||||||||||
Company's revenues as per geographic areas | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
The People’s Republic of China | $ | 34,637,418 | $ | 24,732,196 | $ | 62,164,662 | $ | 46,379,556 | |||||||||
Germany | 9,134,418 | 5,340,945 | 20,958,370 | 13,017,509 | |||||||||||||
United Kingdom | 6,708,804 | 13,138,565 | 18,351,165 | 20,965,094 | |||||||||||||
Europe-Other | 18,316,496 | 8,648,858 | 26,833,816 | 15,751,139 | |||||||||||||
Japan | 6,175,302 | 7,537,032 | 14,850,015 | 16,542,420 | |||||||||||||
United States | 5,079,986 | 4,774,081 | 12,730,466 | 10,227,881 | |||||||||||||
Total wholesale business | 80,052,424 | 64,171,677 | 155,888,494 | 122,883,599 | |||||||||||||
Retail business | 59,896,901 | 42,487,842 | 175,743,780 | 121,216,895 | |||||||||||||
Total | $ | 139,949,325 | $ | 106,659,519 | $ | 331,632,274 | $ | 244,100,494 | |||||||||
Segments_Tables
Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segments [Abstract] | ' | ||||||||||||
Company's financial and operating information | ' | ||||||||||||
Wholesale segment | Retail segment | Total | |||||||||||
Nine months ended September 30, 2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 155,888,494 | $ | 175,743,780 | $ | 331,632,274 | |||||||
Income from operations | $ | 8,302,107 | $ | 8,692,420 | $ | 16,994,527 | |||||||
Interest income | $ | 866,099 | $ | 38,679 | $ | 904,778 | |||||||
Interest expense | $ | 1,971,165 | $ | 425,123 | $ | 2,396,288 | |||||||
Depreciation and amortization | $ | 774,220 | $ | 4,555,932 | $ | 5,330,152 | |||||||
Income tax expense | $ | 1,902,965 | $ | 2,461,724 | $ | 4,364,689 | |||||||
Nine months ended September 30, 2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 122,883,599 | $ | 121,216,895 | $ | 244,100,494 | |||||||
Income from operations | $ | 9,120,617 | $ | 3,386,418 | $ | 12,507,035 | |||||||
Interest income | $ | 889,693 | $ | 20,418 | $ | 910,111 | |||||||
Interest expense | $ | 2,105,457 | $ | 180,157 | $ | 2,285,614 | |||||||
Depreciation and amortization | $ | 733,911 | $ | 4,088,272 | $ | 4,822,183 | |||||||
Income tax expense | $ | 1,433,686 | $ | 978,419 | $ | 2,412,105 | |||||||
Wholesale segment | Retail segment | Total | |||||||||||
Three months ended September 30, 2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 80,052,424 | $ | 59,896,901 | $ | 139,949,325 | |||||||
Income from operations | $ | 4,347,676 | $ | 1,976,467 | $ | 6,324,143 | |||||||
Interest income | $ | 314,834 | $ | 12,197 | $ | 327,031 | |||||||
Interest expense | $ | 771,547 | $ | 142,933 | $ | 914,480 | |||||||
Depreciation and amortization | $ | 258,447 | $ | 1,609,577 | $ | 1,868,024 | |||||||
Income tax expense | $ | 956,847 | $ | 649,168 | $ | 1,606,015 | |||||||
Three months ended September 30, 2013 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 64,171,677 | $ | 42,487,842 | $ | 106,659,519 | |||||||
Income from operations | $ | 3,780,744 | $ | 689,754 | $ | 4,470,498 | |||||||
Interest income | $ | 265,498 | $ | 6,823 | $ | 272,321 | |||||||
Interest expense | $ | 693,361 | $ | 64,029 | $ | 757,390 | |||||||
Depreciation and amortization | $ | 211,898 | $ | 875,696 | $ | 1,087,594 | |||||||
Income tax expense | $ | 604,852 | $ | 329,081 | $ | 933,933 |
Summary_of_Business_and_Basis_2
Summary of Business and Basis of Presentation (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Business Acquisition [Line Items] | ' |
TOTAL | $0.75 |
Before July 8, 2014 [Member] | ' |
Business Acquisition [Line Items] | ' |
TOTAL | 0.45 |
Before September 28, 2014 [Member] | ' |
Business Acquisition [Line Items] | ' |
TOTAL | 0.22 |
Within 10 days after Shanghai Yiduo collects all the accounts receivable from Mecox Lane [Member] | ' |
Business Acquisition [Line Items] | ' |
TOTAL | $0.08 |
Summary_of_Business_and_Basis_3
Summary of Business and Basis of Presentation (Details Textual) | 1 Months Ended | |||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jun. 26, 2014 | Jun. 26, 2014 | Oct. 31, 2014 |
USD ($) | USD ($) | CNY | Subsequent Event [Member] | |
USD ($) | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Cash paid to Shanghai La Go Go | ' | $0.75 | 4.6 | ' |
Percentage of acquisition | ' | 78.00% | 78.00% | ' |
Payment made of Installment to Shanghai Yiduo | $0.45 | ' | ' | $0.22 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of inventory | ' | ' |
Raw materials | $2,321,560 | $5,658,519 |
Work-in-progress | 29,202,264 | 25,862,185 |
Finished goods | 70,340,360 | 55,664,077 |
Inventory gross | 101,864,184 | 87,184,781 |
Less: Provision for obsolete inventories | -11,257,802 | -11,994,584 |
Total inventories | $90,606,382 | $75,190,197 |
Land_Use_Rights_Details
Land Use Rights (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Land Use Rights [Abstract] | ' | ' |
Land use rights | $4,475,255 | $3,163,861 |
Less: accumulated amortization | -418,115 | -342,390 |
Land use rights, net | $4,057,140 | $2,821,471 |
Land_Use_Rights_Details_Textua
Land Use Rights (Details Textual) | 9 Months Ended |
Sep. 30, 2014 | |
Nanjing Jiangning Economic [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Land use rights description | '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. |
Suzhou Kunshan Jinxi Tower [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Land use rights description | 'In 2014, the Company obtained a fifty-year land use right on 23,333 square meters of land in the Suzhou Kunshan Jinxi tower. |
Bank_Loans_Details
Bank Loans (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of bank loans | ' | ' |
Bank loans | $49,048,137 | $53,338,748 |
Bank of Communications [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 12,953,543 | 9,245,108 |
Industrial and Commercial Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 11,967,061 | 1,799,600 |
The Hong Kong And Shanghai Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 7,736,085 | 3,499,552 |
Nanjing Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 6,689,635 | 18,526,618 |
Pin An Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 4,829,813 | 2,196,102 |
Bank of Everbright [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 3,248,000 | 3,272,000 |
China Minsheng Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | 1,624,000 | 4,953,069 |
Bank of China [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | ' | 8,210,699 |
Huaxia Bank [Member] | ' | ' |
Schedule of bank loans | ' | ' |
Bank loans | ' | $1,636,000 |
Bank_Loans_Details_Textual
Bank Loans (Details Textual) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 14, 2013 | Jun. 14, 2013 | Sep. 30, 2014 | Jun. 14, 2013 | Jun. 14, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 10, 2013 | Apr. 10, 2013 | Jan. 01, 2014 | Jan. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 01, 2014 | Jan. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 29, 2014 | Jan. 29, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 16, 2013 | Jul. 16, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 11, 2013 | Nov. 11, 2013 | Jul. 29, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 01, 2013 | Sep. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Ever Glory HK Branch [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Industrial and Commercial Bank of China [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of China [Member] | Bank of China [Member] | Bank of China [Member] | Bank of China [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | Everbright Bank [Member] | Everbright Bank [Member] | Everbright Bank [Member] | Everbright Bank [Member] | China Minsheng Bank [Member] | China Minsheng Bank [Member] | Pin An Bank [Member] | Pin An Bank [Member] | Pin An Bank [Member] | |
USD ($) | Goldenway [Member] | Goldenway [Member] | Goldenway [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] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La Go Go [Member] | La Go Go [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 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] | USD ($) | CNY | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | |||||
USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | Minimum [Member] | Maximum [Member] | ||||||||
Bank Loans (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $8,120,000 | 50,000,000 | ' | $9,740,000 | 60,000,000 | ' | ' | $3,250,000 | 20,000,000 | $6,500,000 | 40,000,000 | ' | ' | ' | ' | $6,500,000 | 40,000,000 | ' | ' | $8,440,000 | 52,000,000 | ' | ' | ' | ' | $5,360,000 | 33,000,000 | ' | ' | ' | ' | $5,680,000 | 35,000,000 | ' | $2,350,000 | ' | ' | ' | $11,370,000 | 70,000,000 | $1,620,000 | 10,000,000 | $4,830,000 | ' | ' |
Revolving line of credit agreement, amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | 4,250,000 | ' | ' | 2,440,000 | 15,000,000 | ' | ' | ' | ' | 6,500,000 | 40,000,000 | 4,790,000 | 29,500,000 | ' | ' | 4,060,000 | 25,000,000 | ' | ' | ' | ' | 4,870,000 | 30,000,000 | ' | ' | ' | ' | 1,620,000 | 10,000,000 | ' | ' | 7,000,000 | ' | ' | 3,250,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, borrowed | ' | ' | ' | ' | 5,390,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 680,000 | ' | ' | ' | 4,020,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate during the period | ' | ' | ' | ' | 4.56% | ' | ' | ' | 3.10% | ' | ' | 6.16% | ' | ' | ' | 7.28% | 7.28% | 6.24% | 6.24% | 5.60% | 5.60% | ' | ' | 6.90% | 6.90% | ' | ' | ' | ' | ' | ' | ' | ' | 6.62% | 6.60% | ' | ' | ' | ' | ' | ' | 5.88% | 6.30% | ' | ' | ' | 6.30% | 6.30% | ' | 4.00% | 6.14% |
Due date of revolving line of credit agreement | ' | ' | ' | ' | 'October 2014 to March 2015. | ' | ' | ' | 'October to November 2014 | ' | ' | 'October 2014 to January 2015 | ' | ' | ' | 'November to December 2014 | 'November to December 2014 | ' | ' | 'November to December 2014 | 'November to December 2014 | ' | ' | 'March 2015 | 'March 2015 | ' | ' | ' | ' | 'June to August 2015 | 'June to August 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'October to December 2014 | ' | 'October 2014 | ' | ' | ' | 'August 2015 | 'August 2015 | 'October to December 2014 | ' | ' |
Revolving line of credit agreement, unused capacity | ' | ' | ' | ' | ' | 8,120,000 | ' | ' | 5,490,000 | ' | ' | 810,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | 1,030,000 | ' | ' | ' | 360,000 | ' | ' | ' | ' | ' | ' | ' | 490,000 | ' | ' | ' | 5,680,000 | ' | ' | ' | ' | 4,650,000 | ' | 8,120,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Due date of additional borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'March to April 2015 | 'March to April 2015 | 'October 2014 | 'October 2014 | ' | ' | 'October 2014 to March 2015 | 'October 2014 to March 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit interest rate on additional borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.32% | 1.32% | ' | ' | ' | ' | ' | ' | 3.82% | 3.83% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit agreement, repaid subsequent to current period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,250,000 | ' | ' | ' | ' | ' | 2,370,000 | ' | ' |
Accounts receivable from wholesale customers | ' | ' | ' | ' | 6,100,000 | ' | ' | ' | 5,310,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,650,000 | ' | ' | ' | 5,010,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,900,000 | ' | ' | ' | ' | ' | ' | ' | 5,360,000 | ' | ' |
Total interest expense | $914,480 | $757,390 | $2,396,288 | $2,285,614 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Liability_Details
Derivatives Liability (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | |
Derivative Warrant Liability (Textual) | ' | ' | ' | ' | ' |
Derivative notional amount | $3,000,000 | ' | $1,700,000 | ' | ' |
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 | ' | $0 | ' | $294,000 | ' |
Warrants expiration date | 30-Sep-14 | ' | 30-Sep-15 | ' | 30-Jun-13 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Pre-tax income in jurisdictions | ' | ' | ' | ' |
Pre-tax income | $6,742,713 | $4,817,381 | $17,421,259 | $12,109,843 |
PRC [Member] | ' | ' | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' | ' | ' |
Pre-tax income | 6,782,398 | 3,776,280 | 17,495,879 | 9,324,376 |
Samoa [Member] | ' | ' | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' | ' | ' |
Pre-tax income | ' | 1,045,157 | ' | 2,507,923 |
BVI [Member] | ' | ' | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' | ' | ' |
Pre-tax income | -42,144 | 862 | -67,079 | -1,456 |
Others [Member] | ' | ' | ' | ' |
Summary of Pre-tax income in jurisdictions | ' | ' | ' | ' |
Pre-tax income | $2,459 | ($4,918) | ($7,541) | $279,000 |
Income_Tax_Details_1
Income Tax (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ' | ' | ' |
PRC statutory rate | ' | ' | 15.00% | ' |
PRC [Member] | ' | ' | ' | ' |
Summary of Reconciliation of PRC statutory rates to the Company's effective tax rate | ' | ' | ' | ' |
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
Non-taxable items | ' | ' | ' | -0.80% |
Income tax exemption | -2.30% | ' | -0.90% | ' |
Effect of foreign income tax rates | 0.20% | -5.40% | 0.10% | -5.20% |
Other | 0.90% | -0.20% | 0.90% | 0.90% |
Effective income tax rate | 23.80% | 19.40% | 25.10% | 19.90% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Components of income tax expense | ' | ' | ' | ' |
Current | $1,736,690 | $1,022,641 | $6,952,708 | $1,878,213 |
Deferred | -130,675 | -88,708 | -2,536,929 | 444,186 |
Income tax expense | $1,606,015 | $933,933 | $4,364,689 | $2,412,105 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Income Tax (Textual) | ' | ' | ' | ' | ' |
PRC statutory rate | ' | ' | 15.00% | ' | ' |
PRC [Member] | ' | ' | ' | ' | ' |
Income Tax (Textual) | ' | ' | ' | ' | ' |
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% | ' |
Tax liability | $3,186,000 | ' | $3,186,000 | ' | $3,186,000 |
Income tax rate for dividends distribution | ' | ' | 10.00% | ' | ' |
HK [ Member] | ' | ' | ' | ' | ' |
Income Tax (Textual) | ' | ' | ' | ' | ' |
PRC statutory rate | ' | ' | 25.00% | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Basic and diluted earnings per share | ' | ' | ' | ' |
Net income | $5,136,698 | $3,883,448 | $13,056,570 | $9,697,738 |
Weighted average number of common shares- Basic and diluted | 14,782,668 | 14,779,268 | 14,781,722 | 14,777,015 |
Earnings per share - Basic and diluted | $0.35 | $0.26 | $0.88 | $0.66 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Aug. 15, 2014 | Aug. 19, 2013 | |
Three Independent Directors [Member] | ' | ' | ' |
Stockholders' Equity (Textual) | ' | ' | ' |
Common stock shares issued to independent directors | ' | 2,055 | 3,631 |
Common stock issued at five days average market price | ' | $4.91 | $2.73 |
Number of days used to calculation average market price of common stock | 'Five days before the grant date. | ' | ' |
Two Independence Directors [Member] | ' | ' | ' |
Stockholders' Equity (Textual) | ' | ' | ' |
Common stock shares issued to independent directors | ' | 798 | ' |
Common stock issued at five days average market price | ' | $6.22 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Summary of other income from Related Parties | ' | ' |
Total | $7,004 | $21,096 |
EsCeLav [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | 3,001 | 9,039 |
Nanjing Eight-One-Five Hi-Tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of other income from Related Parties | ' | ' |
Total | $4,003 | $12,053 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of other expenses due to related parties | ' | ' | ' | ' |
Total | $23,182 | $20,815 | $69,802 | $62,866 |
Jiangsu Ever-Glory [Member] | ' | ' | ' | ' |
Summary of other expenses due to related parties | ' | ' | ' | ' |
Total | 12,717 | 12,568 | 38,277 | 37,845 |
Kunshan Enjin [Member] | ' | ' | ' | ' |
Summary of other expenses due to related parties | ' | ' | ' | ' |
Total | $10,465 | $8,247 | $31,525 | $25,021 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | $4,692,268 | $6,242,241 | $15,382,174 | $15,330,667 |
Ever-Glory Vietnam [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 2,370,471 | 2,268,642 | 7,335,355 | 7,363,429 |
Ever-Glory Cambodia [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 1,628,047 | 3,730,538 | 4,585,237 | 6,951,726 |
Nanjing Ever-Kyowa [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 405,957 | 211,501 | 1,267,927 | 735,379 |
Jiangsu Ever-Glory [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 23,962 | 29,929 | 49,246 | 41,542 |
Shanghai Weiwen [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 102,462 | ' | 1,605,247 | ' |
Shanghai Sea to Sky [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | 161,369 | ' | 539,162 | ' |
EsC'eLav [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | ' | 1,631 | ' | 5,989 |
Nanjing Knitting [Member] | ' | ' | ' | ' |
Summary of sub-contracts with related parties | ' | ' | ' | ' |
Total | ' | ' | ' | $232,602 |
Related_Party_Transactions_Det3
Related Party Transactions (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Summary of accounts payable - related parties | ' | ' |
Total | $6,237,631 | $4,102,456 |
Nanjing Knitting [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | ' | 784,777 |
Nanjing Ever-Kyowa [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 381,470 | 261,955 |
Jiangsu Wubijia [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 6,531 | ' |
Kunshan Enjin [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 31,512 | ' |
Ever-Glory Vietnam [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 3,622,820 | 2,473,271 |
Ever-Glory Cambodia [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 148,329 | 582,453 |
Shanghai Sea to Sky [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | 539,162 | ' |
Shanghai Weiwen [Member] | ' | ' |
Summary of accounts payable - related parties | ' | ' |
Total | $1,507,807 | ' |
Related_Party_Transactions_Det4
Related Party Transactions (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Summary of amounts due from related parties | ' | ' |
Total | $2,064,891 | $1,896,376 |
EsC'eLav [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 27,690 | 12,291 |
Nanjing Knitting [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 268,275 | ' |
Nanjing Eight-One-Five Hi-Tech (M&E) Co., Ltd. [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | 20,546 | 145,206 |
Jiangsu Ever-Glory [Member] | ' | ' |
Summary of amounts due from related parties | ' | ' |
Total | $1,748,380 | $1,738,879 |
Related_Party_Transactions_Det5
Related Party Transactions (Details Textual) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | 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] | 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] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Shanghai Weiwen [Member] | Shanghai Sea to Sky [Member] | Shanghai Sea to Sky [Member] | Shanghai Sea to Sky [Member] | Shanghai Sea to Sky [Member] | Shanghai Sea to Sky [Member] | Shanghai Sea to Sky [Member] | Jiangsu Wubijia [Member] | Jiangsu Wubijia [Member] | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from related party | $19,920,245 | ' | $19,920,245 | ' | $19,084,980 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,175 | ' |
Sales commission | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,219 | ' |
Accounts payable and other payables - related parties | 6,237,631 | ' | 6,237,631 | ' | 4,102,456 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 539,162 | ' | 539,162 | ' | ' | ' | 6,531 | ' |
Purchase of raw material | ' | ' | ' | ' | ' | ' | ' | 34,509 | 0 | ' | 34,509 | ' | ' | ' | ' | 730,413 | 911,977 | 1,614,483 | ' | 1,096,585 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub-contracts with related parties | 4,692,268 | 6,242,241 | 15,382,174 | 15,330,667 | ' | ' | 23,962 | 29,929 | 49,246 | ' | 41,542 | ' | ' | ' | ' | ' | ' | ' | ' | 232,602 | ' | ' | ' | ' | ' | ' | ' | 161,369 | ' | 539,162 | ' | ' | ' | ' | ' |
Company sold raw materials | ' | ' | 72,548 | 1,100,000 | ' | ' | ' | ' | 19,221 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, collateral amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,720,000 | 103,000,000 | ' | 16,720,000 | 103,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transactions ceased under counter guarantee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,820,000 | 30,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranty on lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | 48,720,000 | 300,000,000 | ' | ' | 43,690,000 | 269,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 40,300,000 | 248,000,000 | 20,620,000 | 127,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of counter guarantee | ' | ' | ' | ' | ' | ' | ' | ' | 5,030,000 | 31,000,000 | ' | ' | 16,790,000 | 103,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of counter guarantee was returned on lines of credit by company | ' | ' | ' | ' | ' | ' | ' | ' | 3,540,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage counter-guaranty on lines of credit | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, Interest rate at expiration or termination | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest charged on net amounts due | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income received from related party | ' | ' | -1,300,800 | ' | ' | ' | ' | ' | 1,300,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | 330,000 | 270,000 | 900,000 | ' | 910,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest, classified as a reduction of equity | ' | ' | ' | ' | ' | ' | 19,920,000 | ' | 19,920,000 | ' | ' | ' | ' | ' | 19,080,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in counter guarantee amount as percentage of line of credit | ' | ' | ' | ' | ' | ' | 37.30% | ' | 37.30% | 37.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Guarantee reduced | ' | ' | ' | ' | ' | ' | ' | ' | 18,200,000 | 112,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency exchange adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | 1,760,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of the inventory and brand | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,440,000 | ' | ' | ' | ' | $390,000 | ' | ' | ' |
Concentrations_and_Risks_Detai
Concentrations and Risks (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | $139,949,325 | $106,659,519 | $331,632,274 | $244,100,494 |
Wholesale Business [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 80,052,424 | 64,171,677 | 155,888,494 | 122,883,599 |
Retail Business [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 59,896,901 | 42,487,842 | 175,743,780 | 121,216,895 |
The People's Republic of China(PRC) [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 34,637,418 | 24,732,196 | 62,164,662 | 46,379,556 |
Germany [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 9,134,418 | 5,340,945 | 20,958,370 | 13,017,509 |
United Kingdom [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 6,708,804 | 13,138,565 | 18,351,165 | 20,965,094 |
Europe-Other [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 18,316,496 | 8,648,858 | 26,833,816 | 15,751,139 |
Japan [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | 6,175,302 | 7,537,032 | 14,850,015 | 16,542,420 |
United States [Member] | ' | ' | ' | ' |
Company's revenues as per geographic areas | ' | ' | ' | ' |
Net revenue | $5,079,986 | $4,774,081 | $12,730,466 | $10,227,881 |
Concentrations_and_Risks_Detai1
Concentrations and Risks (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer | Customer | Customer | ||
Wholesale Business [Member] | Revenues [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Number of wholesale customer | 1 | ' | 1 | 1 |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Wholesale Business [Member] | Purchase [Member] | Raw Materials [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Wholesale Business [Member] | Purchase [Member] | Finished Goods [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Number of wholesale customer | 1 | 2 | 1 | 3 |
Concentration Risk, Percentage | 11.00% | ' | 14.00% | ' |
Wholesale Business [Member] | Purchase [Member] | Finished Goods [Member] | Customer One [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 15.00% | ' | 14.00% |
Wholesale Business [Member] | Purchase [Member] | Finished Goods [Member] | Customer Two [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 14.00% | ' | 12.00% |
Wholesale Business [Member] | Purchase [Member] | Finished Goods [Member] | Customer Three [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | 12.00% |
Retail Business [Member] | Purchase [Member] | Raw Materials [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Number of raw materials suppliers | 1 | 2 | ' | ' |
Concentration Risk, Percentage | 11.00% | ' | 10.00% | 10.00% |
Retail Business [Member] | Purchase [Member] | Raw Materials [Member] | Customer One [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 10.00% | ' | ' |
Retail Business [Member] | Purchase [Member] | Raw Materials [Member] | Customer Two [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | 21.00% | ' | ' |
Retail Business [Member] | Purchase [Member] | Finished Goods [Member] | ' | ' | ' | ' |
Concentrations and Risks (Textual) | ' | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of segment profit or loss: | ' | ' | ' | ' |
Net revenue from external customers | $139,949,325 | $106,659,519 | $331,632,274 | $244,100,494 |
Income from operations | 6,324,143 | 4,470,498 | 16,994,527 | 12,507,035 |
Interest income | 327,031 | 272,321 | 904,778 | 910,111 |
Interest expense | 914,480 | 757,390 | 2,396,288 | 2,285,614 |
Depreciation and amortization | 1,868,024 | 1,087,594 | 5,330,152 | 4,822,183 |
Income tax expense | 1,606,015 | 933,933 | 4,364,689 | 2,412,105 |
Wholesale segment [Member] | ' | ' | ' | ' |
Summary of segment profit or loss: | ' | ' | ' | ' |
Net revenue from external customers | 80,052,424 | 64,171,677 | 155,888,494 | 122,883,599 |
Income from operations | 4,347,676 | 3,780,744 | 8,302,107 | 9,120,617 |
Interest income | 314,834 | 265,498 | 866,099 | 889,693 |
Interest expense | 771,547 | 693,361 | 1,971,165 | 2,105,457 |
Depreciation and amortization | 258,447 | 211,898 | 774,220 | 733,911 |
Income tax expense | 956,847 | 604,852 | 1,902,965 | 1,433,686 |
Retail segment [Member] | ' | ' | ' | ' |
Summary of segment profit or loss: | ' | ' | ' | ' |
Net revenue from external customers | 59,896,901 | 42,487,842 | 175,743,780 | 121,216,895 |
Income from operations | 1,976,467 | 689,754 | 8,692,420 | 3,386,418 |
Interest income | 12,197 | 6,823 | 38,679 | 20,418 |
Interest expense | 142,933 | 64,029 | 425,123 | 180,157 |
Depreciation and amortization | 1,609,577 | 875,696 | 4,555,932 | 4,088,272 |
Income tax expense | $649,168 | $329,081 | $2,461,724 | $978,419 |