Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Entity Central Index Key | 943184 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,784,094 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $31,980,405 | $34,134,239 |
Accounts receivable | 68,171,810 | 91,874,693 |
Inventories | 61,265,844 | 70,270,213 |
Value added tax receivable | 2,428,515 | 2,697,080 |
Other receivables and prepaid expenses | 2,380,108 | 3,523,862 |
Advances on inventory purchases | 6,657,165 | 3,916,913 |
Amounts due from related parties | 4,600,831 | 1,651,987 |
Total Current Assets | 177,484,678 | 208,068,987 |
INTANGIBLE ASSETS | 6,401,150 | 4,041,284 |
PROPERTY AND EQUIPMENT, NET | 20,588,678 | 20,102,976 |
TOTAL ASSETS | 204,474,506 | 232,213,247 |
CURRENT LIABILITIES | ||
Bank loans | 45,664,342 | 60,216,950 |
Accounts payable | 48,207,873 | 58,923,234 |
Accounts payable and other payables - related parties | 1,672,561 | 3,895,578 |
Other payables and accrued liabilities | 18,591,436 | 20,911,191 |
Value added and other taxes payable | 8,012,261 | 6,217,081 |
Income tax payable | 4,261,068 | 5,523,173 |
Deferred tax liabilities | 3,760,447 | 3,874,594 |
Total Current Liabilities | 130,169,988 | 159,561,801 |
TOTAL LIABILITIES | 130,169,988 | 159,561,801 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' equity of the Company: | ||
Preferred stock ($.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 14,784,094 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) | 14,784 | 14,784 |
Additional paid-in capital | 3,587,195 | 3,587,195 |
Retained earnings | 70,055,475 | 67,659,920 |
Statutory reserve | 12,536,641 | 12,536,641 |
Accumulated other comprehensive income | 8,733,178 | 8,277,248 |
Amounts due from related party | -20,593,799 | -19,424,342 |
Total Stockholders' Equity | 74,333,474 | 72,651,446 |
Noncontrolling interest | -28,956 | |
Total Equity | 74,304,518 | 72,651,446 |
TOTAL LIABILITIES AND EQUITY | $204,474,506 | $232,213,247 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 14,784,094 |
Common stock, shares outstanding | 14,784,094 | 14,784,094 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
NET SALES | $97,902,962 | $106,015,169 |
COST OF SALES | 67,294,589 | 80,234,212 |
GROSS PROFIT | 30,608,373 | 25,780,957 |
OPERATING EXPENSES | ||
Selling expenses | 20,255,374 | 16,123,296 |
General and administrative expenses | 6,913,949 | 6,394,988 |
Total Operating Expenses | 27,169,323 | 22,518,284 |
INCOME FROM OPERATIONS | 3,439,050 | 3,262,673 |
OTHER (EXPENSES) INCOME | ||
Interest income | 323,404 | 241,333 |
Interest expense | -775,846 | -707,115 |
Other income | 234,084 | 471,759 |
Total Other (Expenses) Income | -218,358 | 5,977 |
INCOME BEFORE INCOME TAX EXPENSE | 3,220,692 | 3,268,650 |
INCOME TAX EXPENSE | -825,137 | -878,922 |
NET INCOME | 2,395,555 | 2,389,728 |
OTHER COMPREHENSIVE INCOME: | ||
Foreign currency translation gain (loss) | 455,930 | -699,426 |
COMPREHENSIVE INCOME | $2,851,485 | $1,690,302 |
NET INCOME PER SHARE | ||
Basic and diluted | $0.16 | $0.16 |
Weighted average number of shares outstanding | ||
Basic and diluted | 14,784,094 | 14,781,241 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $2,395,555 | $2,389,728 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 2,510,170 | 1,890,926 |
Recovering for doubtful accounts | -123,082 | |
Deferred income tax | -127,980 | 8,127 |
Changes in operating assets and liabilities | ||
Accounts receivable | 24,053,201 | 17,809,670 |
Inventories | 9,214,017 | 3,036,070 |
Value added tax receivable | 277,499 | -430,976 |
Other receivables and prepaid expenses | 1,152,695 | -458,329 |
Advances on inventory purchases | -2,715,763 | -291,050 |
Amounts due from related parties | -3,277,063 | -194,329 |
Accounts payable | -10,733,461 | -15,412,782 |
Accounts payable and other payables- related parties | -2,340,920 | -1,558,269 |
Other payables and accrued liabilities | -2,375,453 | -975,382 |
Value added and other taxes payable | 1,765,706 | -80,674 |
Income tax payable | -1,277,780 | 502,907 |
Net cash provided by operating activities | 18,397,341 | 6,235,637 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | -4,410,103 | -1,731,912 |
Proceeds from sale of property and equipment | 3,448 | |
Net cash used in investing activities | -4,406,655 | -1,731,912 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 28,350,484 | 37,918,802 |
Repayment of bank loans | -43,050,707 | -39,378,591 |
Advances to related party | -812,500 | -5,065,400 |
Interest received from related party | 1,307,200 | |
Net cash used in financing activities | -15,512,723 | -5,217,989 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -631,797 | -345,146 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | -2,153,834 | -1,059,410 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 34,134,239 | 27,772,878 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 31,980,405 | 26,713,468 |
Cash paid during the period for: | ||
Interest | 775,846 | 707,115 |
Income taxes | $2,230,898 | $385,582 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATION |
Ever-Glory International Group, Inc. (the “Company”), together with its subsidiaries, is an apparel manufacturer, supplier and retailer in The People's Republic of China ("China or "PRC"), with a wholesale segment and a retail segment. The Company’s wholesale business consists of recognized brands for department and specialty stores located in China, Europe, Japan and the United States. The Company’s retail business consists of flagship stores and store-in-stores for the Company’s own-brand products. | |
The Company’s wholesale operations are provided primarily through the Company’s wholly-owned PRC subsidiaries, Goldenway Nanjing Garments Co. Ltd. (“Goldenway”), Nanjing Catch-Luck Garments Co. Ltd. (“Catch-Luck”), Nanjing New-Tailun Garments Co. Ltd (“New-Tailun”), Ever-Glory International Group Apparel Inc.(“Ever-Glory Apparel”), Chuzhou Huirui Garments Co. Ltd. (“Huirui”) and Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”), and the Company’s wholly-owned Samoa subsidiary, Ever-Glory International Group (HK) Ltd. (“Ever-Glory HK”). The Company’s retail operations are provided through its wholly- owned subsidiaries, Shanghai LA GO GO Fashion Company Limited (“Shanghai LA GO GO”), Jiangsu LA GO GO Fashion Company Limited (“Jiangsu LA GO GO”), Tianjin LA GO GO Fashion Company Limited (“Tianjin LA GO GO”), Shanghai Ya Lan Fashion Company Limited (“Ya Lan”), Shanghai Yiduo Fashion Company Limited (“Shanghai Yiduo”) and Xizang He Meida Trading Company Limited (“He Meida”). | |
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). The last $0.08 million was paid by the Company to Shanghai Yiduo on March 27, 2015 when Shanghai Yiduo collected all the accounts receivable from Mecox Lane. The Company gained effective control of Shanghai Yiduo by the end of March 2015 and Shanghai Yiduo was consolidated on March 31, 2015. Management made a preliminary valuation of the acquired Company, including the value of the designer team and other marketing related intangibles and recorded $852,925 as intangible assets in the consolidated balance sheet as of March 31, 2015. Management of the Company believes that the acquisition will improve the Company’s design and product development ability. Management will complete the final valuation and allocation of the acquired business components within 12 months. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheet as of March 31, 2015, the condensed consolidated statements of comprehensive income, and cash flows for the three months ended March 31, 2015 and 2014. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. Wholesale revenues are generally higher in the third and fourth fiscal quarters, while retail revenues are generally higher in the first and fourth fiscal quarters. The results of operations for the three months ended March 31, 2015 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, 2014. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||
Mar. 31, 2015 | |||
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. | |||
Accounts Receivable | |||
The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of the credit history of its customers and current relationships with them. The Company writes off accounts receivable when amounts are deemed uncollectible. | |||
Fair Value Accounting | |||
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: | |||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||
At March 31, 2015, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
As of March 31, 2015 and December 31, 2014, The Company has a derivative liability subject to recurring fair value measurement (Level 3) with the change in fair value recognized in earnings (Note 5). | |||
Foreign Currency Translation and Other Comprehensive Income | |||
The reporting currency of the Company is the U.S. dollar. The functional currency of Ever-Glory, Perfect Dream and Ever-Glory HK is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Shanghai LA GO GO, Jiangsu LA GO GO, Tianjin LA GO GO, Shanghai Yiduo, Ya Lan, He Meida, Huirui and Taixin 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 FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. | |||
The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
INVENTORIES | NOTE 3 INVENTORIES | ||||||||
Inventories at March 31, 2015 and December 31, 2014 consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,704,569 | $ | 2,779,719 | |||||
Work-in-progress | 15,649,561 | 15,197,489 | |||||||
Finished goods | 59,787,064 | 69,168,169 | |||||||
78,141,194 | 87,145,377 | ||||||||
Less: allowance for obsolete inventories | (16,875,350 | ) | (16,875,164 | ) | |||||
Total inventories | $ | 61,265,844 | $ | 70,270,213 |
Bank_Loans
Bank Loans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Bank Loans [Abstract] | |||||||||
BANK LOANS | NOTE 4 BANK LOANS | ||||||||
Bank loans represent amounts due to various banks and are generally due on demand or within one year. These loans can be renewed with the banks. Short term bank loans consisted of the following as of December 31, 2015 and 2014. | |||||||||
Bank | December 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Nanjing Bank | $ | 13,897,906 | $ | 17,357,412 | |||||
Industrial and Commercial Bank of China | 11,417,000 | 11,375,000 | |||||||
HSBC | 5,917,590 | 6,766,960 | |||||||
Bank of Communications | 4,893,000 | 13,021,612 | |||||||
China Minsheng Banking | 3,262,000 | 3,250,000 | |||||||
Shanghai Pudong Development Bank | 3,262,000 | 3,250,000 | |||||||
Pin An Bank | 1,546,946 | 3,867,605 | |||||||
China Citic Bank | 1,467,900 | - | |||||||
Bank of China | - | 1,328,361 | |||||||
$ | 45,664,342 | $ | 60,216,950 | ||||||
In June 2014, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.16 million (RMB50 million). These loans are guaranteed by Mr. Kang and Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment. As of March 31, 2015, Goldenway had borrowed $3.26 million (RMB20 million) under this line of credit with an annual interest rate of 6.1% and due in September 2015. At March 31, 2015, approximately $4.9 million was unused and available under this line of credit. | |||||||||
In July 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.79 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of March 31, 2015, Ever-Glory Apparel had borrowed $4.89 million (RMB30 million) from Nanjing Bank with annual interest rates ranging from 2.0% to 5.6% and due on various dates from August to November 2015. Ever-Glory Apparel had also borrowed $3.30 million from Nanjing Bank with annual interest rates ranging from 2.1% to 2.2% and due on various dates from April to June 2015, and collateralized by approximately $5.06 million of accounts receivable from wholesale customers. At March 31, 2015, approximately $1.6 million was unused and available under this line of credit. | |||||||||
In July 2014, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.26 million (RMB20 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of March 31, 2015, LA GO GO had borrowed $2.45 million (RMB15 million) under this line of credit with an annual interest rate of 6.16% and due on various dates from April to August 2015. At March 31, 2015, approximately $0.81 million (RMB5 million) was unused and available under this line of credit. | |||||||||
In January 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 $9.79 million (RMB60 million). These loans are collateralized by the Company’s property and equipment. As of March 31, 2015, Goldenway had borrowed $6.52 million (RMB40 million) under this line of credit with an annual interest rates ranging from 5.77% - 6.42% and due on various dates from April to November 2015. At March 31, 2015, approximately $3.27 million was unused and available under this line of credit. | |||||||||
In January 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $6.52 million (RMB40 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of March 31, 2015, Ever-Glory Apparel had borrowed $4.89 million (RMB 30 million) under this line of credit with an annual interest rate of 5.64% and due on various dates from May to June 2015. At March 31, 2015, approximately $1.63 million was unused and available under this line of credit. | |||||||||
In July 2011, Ever-Glory Apparel and Perfect Dream collectively entered into a secured banking facility agreement for a combined revolving import facility, letter of credit, invoice financing facilities and a credit line for treasury products of up to $7.0 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of March 31, 2015, Ever-Glory Apparel had borrowed $5.92 million from HSBC with an annual interest rate of 5.88%, due in May 2015, and collateralized by approximately $6.96 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of March 31, 2015, approximately $1.08 million was unused and available. | |||||||||
In January 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.48 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. At March 31, 2015, approximately $8.48 million was unused and available under this line of credit. | |||||||||
In July 2013, LA GO GO entered into a line of credit agreement for approximately $5.38 million (RMB33 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of March 31, 2015, LA GO GO had borrowed $4.89 million (RMB30 million) from the Bank of Communications with annual interest rates ranging from 6.60% to 6.62% and due on various dates from June to August 2015. At March 31, 2015, approximately $0.49 million was unused and available under this line of credit. | |||||||||
As of March 31, 2015, LA GO GO had borrowed $3.26 million (RMB 20 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. | |||||||||
In November 2014, Goldenway entered into a line of credit agreement with Shanghai Pudong Development Bank, which allows the Company to borrow up to approximately $3.26 million (RMB20 million). These loans are guaranteed by Ever-Glory Apparel and Jiangsu Ever-Glory. These loans are also collateralized by Jiangsu Ever-Glory’s property and equipment. As of March 31, 2015, Goldenway had borrowed $3.26 million (RMB 20 million) from Shanghai Pudong Development Bank, with annual interest rate of 5.7% and due in May 2015. | |||||||||
As of March 31, 2015, Ever-Glory Apparel had borrowed $1.55 million from Ping An Bank, with annual interest rate of 5.4% and due on various dates from April to May 2015, and collateralized by approximately $1.83 million of accounts receivable from wholesale customers. | |||||||||
In November 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.70 million (RMB35 million) with the Bank of China and guaranteed by Jiangsu Ever-Glory and Mr. Kang. At March 31, 2015, approximately $5.70 million was unused and available under this line of credit. | |||||||||
In December 2014, LA GO GO entered into a line of credit agreement for approximately $5.87 million (RMB36 million) with the China Citic Bank and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of March 31, 2015, LA GO GO had borrowed $1.47 million (RMB 9.0 million) from the China Citic Bank with annual interest rate of 5.88% and due in December 2015. At March 31, 2015, approximately $4.4 million was unused and available under this line of credit. | |||||||||
All loans have been repaid before or at maturity date. | |||||||||
Total interest expense on bank loans amounted to $775,846 and $707,115 for the three months ended March 31, 2015 and 2014, respectively. |
Derivatives_Liability
Derivatives Liability | 3 Months Ended |
Mar. 31, 2015 | |
Derivatives Liability [Abstract] | |
DERIVATIVES LIABILITY | NOTE 5 DERIVATIVE LIABILITY |
In October 2014, we entered into a forward foreign exchange option contract (sell EUR dollars for RMB), with a notional amount of EUR $60,000, that expires in March 2015. The fair value of this contract at December 31, 2014 and the activities during the three-month period ended March 31, 2015 was not significant. |
Income_Tax
Income Tax | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax [Abstract] | |||||||||
INCOME TAX | NOTE 6 INCOME TAX | ||||||||
The Company’s operating subsidiaries are governed by the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (“the Income Tax Laws”). | |||||||||
All PRC subsidiaries, except for He Meida, are subject to income tax at the 25% statutory rate. | |||||||||
He Meida incorporated in Xizang (Tibet) Autonomous Region is subject to income tax at 15% statutory rate. The local government has implemented a income tax reduction from 15% to 9% valid through December 31, 2017. | |||||||||
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, and sales are made globally. Therefore, the Company uses significant judgment to calculate and provide for income taxes in each of the tax jurisdictions in which it operates. In the ordinary course of the Company’s business, there are transactions and calculations undertaken whose ultimate tax outcome cannot be certain. Some of these uncertainties arise as a consequence of transfer pricing for transactions with the Company’s subsidiaries, potential challenges to nexus, value added estimates, and similar matters. In September 2009, the Company formed its subsidiary, Ever-Glory HK, domiciled in Samoa, in order to engage in certain limited import and export of apparel, fabric and accessories, as well as to efficiently address currency exchange matters with international transactions. Over the past few years, the operational matters handled by this subsidiary have expanded with respect to sub-contracting of certain manufacturing work outside of China, as well as to other operational matters with non-PRC customers and vendors. Additionally, over this time period, tax guidance, rules and positions taken by the PRC with respect to transfer pricing issues have evolved, and in certain cases, become more standardized. As part of the Company’s on-going process of evaluating our tax positions, the Company considered various factors as they relate to its Samoan subsidiary and as related to intercompany transactions. This evaluation resulted in a change in the Company’s estimate of exposure to potential unfavorable outcomes related to these uncertainties, and the Company recorded a tax liability of approximately $3,186,000 as of December 31, 2013 based on the probability for such outcomes. | |||||||||
The Company and the PRC Tax Bureau have agreed that payments on the tax liability $ 3,186,000 will be made by the Company prospectively over the next one to two year period. Approximately $111,023 was paid as of March 31, 2015. 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), pre-tax income for the three months ended March 31, 2015 and 2014 was taxable in the following jurisdictions: | |||||||||
2015 | 2014 | ||||||||
PRC | $ | 3,313,209 | $ | 3,274,013 | |||||
BVI | (90,017 | ) | (363 | ) | |||||
Others | (2,500 | ) | (5,000 | ) | |||||
$ | 3,220,692 | $ | 3,268,650 | ||||||
The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended March 31, 2015 and 2014: | |||||||||
2015 | 2014 | ||||||||
PRC statutory rate | 25 | % | 25 | % | |||||
Preferential tax treatment | (0.7 | ) | - | ||||||
Effect of foreign income tax rates | 0.7 | - | |||||||
Other | 0.6 | 1.9 | |||||||
Effective income tax rate | 25.6 | % | 26.9 | % | |||||
Income tax expense for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
2015 | 2014 | ||||||||
Current | $ | 939,284 | $ | 934,100 | |||||
Deferred | (114,147 | ) | (55,178 | ) | |||||
Income tax expense | $ | 825,137 | $ | 878,922 | |||||
The Company has not recorded U.S. deferred income taxes on approximately $70,055,475 of its non-U.S. subsidiaries’ undistributed earnings because such amounts are intended to be reinvested outside the United States indefinitely. If these earnings were repatriated to the United States, the Company would be required to accrue and pay U.S. federal income taxes and foreign withholding taxes, as adjusted for foreign tax credits. Determination of the amount of any unrecognized deferred income tax liability on these earnings is not practicable. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE | NOTE 7 EARNINGS PER SHARE | ||||||||
The following demonstrates the calculation for earnings per share for the three months ended March 31, 2015 and 2014: | |||||||||
2015 | 2014 | ||||||||
Weighted average number of common shares- Basic and diluted | 14,784,094 | 14,781,241 | |||||||
Earnings per share - basic and diluted | $ | 0.16 | $ | 0.16 |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 STOCKHOLDERS’ EQUITY |
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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Party Transactions [Abstract] | |||||||||
RELATED PARTY TRANSACTIONS | NOTE 9 RELATED PARTY TRANSACTIONS | ||||||||
Mr. Kang is the Company’s Chairman and Chief Executive Officer. Ever-Glory Enterprises (HK) Ltd. (Ever-Glory Enterprises) is the Company’s major shareholders. Mr. Xiaodong Yan was Ever-Glory Enterprises’ sole shareholder and sole director. Mr. Huake Kang, Mr. Kang’s son, acquired 83% interest of Ever-Glory Enterprises and became its sole director in 2014. All transactions associated with the following companies controlled by Mr. Kang or his son 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 | |||||||||
JiangsuWubijia trading company limited (“JiangsuWubijia”) is an entity engaged in high-grade home goods sales and is controlled by Mr. Kang. JiangsuWubijia has sold their home goods on consignment in some Company’s retail stores since the third quarter of 2014. During the three months ended March 31, 2015, the Company received other income $7,850 from the customers and paid $6,620 to Wubijia through the consignment. The net profit of $1,230 was recorded as other income. | |||||||||
Other expenses due to Related Parties | |||||||||
Included in other expenses for the three months ended March 31, 2015 and 2014 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows: | |||||||||
2015 | 2014 | ||||||||
Jiangsu Ever-Glory | $ | 12,756 | $ | 12,827 | |||||
Kunshan Enjin | 12,141 | 10,569 | |||||||
Total | $ | 24,897 | $ | 23,396 | |||||
The Company leases Jiangsu Ever-Glory's factory as the factory is in a location where there is a good supply of experienced workers. The Company leases Kunshan Enjin's warehouse space because the location is convenient for transportation and distribution. | |||||||||
Purchases from and Sub-contracts with Related Parties | |||||||||
The Company purchased raw materials from Nanjing Knitting totaling $178,939 and $433,450 during the three months ended March 31, 2015 and 2014, respectively. | |||||||||
In addition, the Company sub-contracted certain manufacturing work to related companies totaling $3,313,068 and $5,910,121 for the three months ended March 31, 2015 and 2014, respectively. The Company provided raw materials to the sub-contractors and was charged a fixed fee for labor provided by the sub-contractors. | |||||||||
Sub-contracts with related parties included in cost of sales for the three months ended March 31, 2015 and 2014 are as follows: | |||||||||
2015 | 2014 | ||||||||
Ever-Glory Vietnam | $ | 1,035,290 | $ | 3,188,264 | |||||
Chuzhou huarui | 1,031,612 | - | |||||||
Fengyang huarui | 408,706 | - | |||||||
Ever-Glory Cambodia | 303,833 | 2,261,054 | |||||||
Nanjing Ever-Kyowa | 272,700 | 435,519 | |||||||
Sea to Sky | 258,583 | - | |||||||
EsC'eLav | 2,009 | - | |||||||
Jiangsu Ever-Glory | 335 | 25,284 | |||||||
Total | $ | 3,313,068 | $ | 5,910,121 | |||||
Accounts Payable – Related Parties | |||||||||
The accounts payable to related parties at March 31, 2015 and December 31, 2014 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Fengyang huarui | $ | 545,690 | 622,060 | ||||||
Ever-Glory Vietnam | 410,679 | 1,883,556 | |||||||
Nanjing Ever-Kyowa | 374,134 | 479,032 | |||||||
Sea to sky | 160,723 | - | |||||||
Chuzhou huarui | 143,287 | 414,583 | |||||||
Nanjing Knitting | 31,803 | 199,766 | |||||||
JiangsuWubijia | 4,236 | 5,460 | |||||||
EsC'eLav | 2,009 | - | |||||||
Ever-Glory Cambodia | - | 291,121 | |||||||
Total | $ | 1,672,561 | $ | 3,895,578 | |||||
Amounts Due From Related Parties current assets | |||||||||
The amounts due from related parties at March 31, 2015 and December 31, 2014 are as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | $ | 20,634 | $ | 20,558 | |||||
Ever-Glory Cambodia | 602,608 | - | |||||||
Sea to sky | - | 48,750 | |||||||
Jiangsu Ever-Glory | 3,977,589 | 1,582,679 | |||||||
Total | $ | 4,600,831 | $ | 1,651,987 | |||||
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. During three months ended March 31, 2015 and 2014, 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 $2,569,656 and $0 during the three month period ended March 31, 2015 and 2014, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at cost for $335 and $19,221 during the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Amounts Due From Related Party under Counter Guarantee Agreement | |||||||||
In March 2012, in consideration of the guarantees and collateral provided by Jiangsu Ever-Glory and Nanjing Knitting, the Company agreed to provide Jiangsu Ever-Glory a counter guarantee in the form of cash of not less than 70% of the maximum aggregate lines of credit obtained by the Company. Jiangsu Ever-Glory is obligated to return the full amount of the counter-guarantee funds provided upon expiration or termination of the underlying lines of credit and is to pay annual interest at the rate of 6.0% of amounts provided. As of March 31, 2015 and December 31, 2014, Jiangsu Ever-Glory has provided guarantees for approximately $46.85 million (RMB 286 million) and $40.62 million (RMB 250 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 $22.3 million (RMB 136 million) as of March 31, 2015 and December 31, 2014. Mr. Kang has also provided a personal guarantee for $41.4 million (RMB 254 million). | |||||||||
At December 31, 2014, $17.36 million (RMB 107 million) was outstanding due from Jiangsu Ever-Glory under the counter guarantee agreement. During the three months ended March 31, 2015, an additional US$0.82 million (RMB5 million) was provided to Jiangsu Ever-Glory under the counter-guarantee. As of March 31, 2015, the amount of the counter-guarantee was $18.24 million (RMB 112 million) (the difference represents currency exchange adjustment of $0.06 million), which was 39.1% of the aggregate amount of lines of credit. This amount plus accrued interest of $2.35 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At March 31, 2015 and 2014, the amount classified as a reduction of equity was $20.59 million and $19.42 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Interest income for the three months ended March 31, 2015 and 2014 was approximately $0.3 million and $0.2 million, respectively. | |||||||||
Concentrations_and_Risks
Concentrations and Risks | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Concentrations and Risks [Abstract] | |||||||||
CONCENTRATIONS AND RISKS | NOTE 10 CONCENTRATIONS AND RISKS | ||||||||
The Company extends unsecured credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. Based on management’s assessment of the amount of probable credit losses, if any, in existing accounts receivable. The allowance for doubtful accounts at March 31, 2015 and December 31, 2014 was $1,670,345 and $1,787,282, respectively. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the credit worthiness of the customer, the economic conditions in the customer’s industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of accounts receivables are incorrect, adjustments to the allowance may be required, which would reduce profitability. | |||||||||
For the three-month period ended March 31, 2015, the Company had two wholesale customers that represented approximately 15% and 14% of the Company’s revenues. For the three-month period ended March 31, 2014, the Company had two wholesale customers that represented approximately 14% and 11% of the Company’s revenues. | |||||||||
For the wholesale business, the Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2015 and 2014. | |||||||||
For the retail business, The Company relied on one raw material supplier that represented approximately 12% of raw material purchases during the three months ended March 31, 2015 and 2014. | |||||||||
For the wholesale business, during the three months ended March 31, 2015, the Company relied on three manufacturers that represented 11%, 10% and 10% of finished goods purchases, and during the three months ended March 31, 2014, the Company relied on two manufacturers that represented 17% and 12% of finished goods purchases. | |||||||||
For the retail business, the Company did not rely on any one supplier that represented more than 10% of the total finished goods purchases during the three months ended March 31, 2015 and 2014. | |||||||||
The Company’s revenues for the three months ended March 31, 2015 and 2014 were earned in the following geographic areas: | |||||||||
2015 | 2014 | ||||||||
The People’s Republic of China(PRC) | $ | 18,933,934 | $ | 14,598,025 | |||||
Germany | 4,486,969 | 6,298,160 | |||||||
United Kingdom | 3,152,479 | 2,624,147 | |||||||
France | 526,126 | 3,924,062 | |||||||
Europe-Other | 1,275,580 | 2,531,860 | |||||||
Japan | 2,930,203 | 6,242,892 | |||||||
United States | 1,968,635 | 3,222,343 | |||||||
Total wholesale business | 33,273,926 | 39,441,489 | |||||||
Retail business-PRC | 64,629,036 | 66,573,680 | |||||||
Total | $ | 97,902,962 | $ | 106,015,169 |
Segments
Segments | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segments [Abstract] | |||||||||||||
SEGMENTS | NOTE 11 SEGMENTS | ||||||||||||
The Company reports financial and operating information in the following two segments: | |||||||||||||
(a) Wholesale segment | |||||||||||||
(b) Retail segment | |||||||||||||
The Company also provides general corporate services to its segments and these costs are reported as "corporate and others”: | |||||||||||||
Wholesale | Retail | Total | |||||||||||
segment | segment | ||||||||||||
March 31,2015 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 33,273,926 | $ | 64,629,036 | $ | 97,902,962 | |||||||
Income from operations | $ | 1,832,027 | $ | 1,607,023 | $ | 3,439,050 | |||||||
Interest income | $ | 308,335 | $ | 15,069 | $ | 323,404 | |||||||
Interest expense | $ | 593,926 | $ | 181,920 | $ | 775,846 | |||||||
Depreciation and amortization | $ | 342,527 | $ | 2,167,644 | $ | 2,510,171 | |||||||
Income tax expense | $ | 455,076 | $ | 370,061 | $ | 825,137 | |||||||
March 31,2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 39,441,489 | $ | 66,573,680 | $ | 106,015,169 | |||||||
Income from operations | $ | 1,415,920 | $ | 1,846,753 | $ | 3,262,673 | |||||||
Interest income | $ | 226,627 | $ | 14,706 | $ | 241,333 | |||||||
Interest expense | $ | 566,567 | $ | 140,548 | $ | 707,115 | |||||||
Depreciation and amortization | $ | 264,546 | $ | 1,626,380 | $ | 1,890,926 | |||||||
Income tax expense | $ | 297,639 | $ | 544,848 | $ | 842,487 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended | ||
Mar. 31, 2015 | |||
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. | |||
Accounts Receivable | Accounts Receivable | ||
The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of the credit history of its customers and current relationships with them. The Company writes off accounts receivable when amounts are deemed uncollectible. | |||
Fair Value Accounting | Fair Value Accounting | ||
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below: | |||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; | ||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||
At March 31, 2015, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality. | |||
As of March 31, 2015 and December 31, 2014, The Company has a derivative liability subject to recurring fair value measurement (Level 3) with the change in fair value recognized in earnings (Note 5). | |||
Foreign Currency Translation and Other Comprehensive Income | Foreign Currency Translation and Other Comprehensive Income | ||
The reporting currency of the Company is the U.S. dollar. The functional currency of Ever-Glory, Perfect Dream and Ever-Glory HK is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Shanghai LA GO GO, Jiangsu LA GO GO, Tianjin LA GO GO, Shanghai Yiduo, Ya Lan, He Meida, Huirui and Taixin 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 FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. | |||
The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Schedule of inventories | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,704,569 | $ | 2,779,719 | |||||
Work-in-progress | 15,649,561 | 15,197,489 | |||||||
Finished goods | 59,787,064 | 69,168,169 | |||||||
78,141,194 | 87,145,377 | ||||||||
Less: allowance for obsolete inventories | (16,875,350 | ) | (16,875,164 | ) | |||||
Total inventories | $ | 61,265,844 | $ | 70,270,213 | |||||
Bank_Loans_Tables
Bank Loans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Bank Loans [Abstract] | |||||||||
Schedule of bank loans | Bank | December 31, | December 31, | ||||||
2015 | 2014 | ||||||||
Nanjing Bank | $ | 13,897,906 | $ | 17,357,412 | |||||
Industrial and Commercial Bank of China | 11,417,000 | 11,375,000 | |||||||
HSBC | 5,917,590 | 6,766,960 | |||||||
Bank of Communications | 4,893,000 | 13,021,612 | |||||||
China Minsheng Banking | 3,262,000 | 3,250,000 | |||||||
Shanghai Pudong Development Bank | 3,262,000 | 3,250,000 | |||||||
Pin An Bank | 1,546,946 | 3,867,605 | |||||||
China Citic Bank | 1,467,900 | - | |||||||
Bank of China | - | 1,328,361 | |||||||
$ | 45,664,342 | $ | 60,216,950 | ||||||
Income_Tax_Tables
Income Tax (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax [Abstract] | |||||||||
Summary of pre-tax income in jurisdictions | 2015 | 2014 | |||||||
PRC | $ | 3,313,209 | $ | 3,274,013 | |||||
BVI | (90,017 | ) | (363 | ) | |||||
Others | (2,500 | ) | (5,000 | ) | |||||
$ | 3,220,692 | $ | 3,268,650 | ||||||
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | 2015 | 2014 | |||||||
PRC statutory rate | 25 | % | 25 | % | |||||
Preferential tax treatment | (0.7 | ) | - | ||||||
Effect of foreign income tax rates | 0.7 | - | |||||||
Other | 0.6 | 1.9 | |||||||
Effective income tax rate | 25.6 | % | 26.9 | % | |||||
Schedule of components of income tax expense | 2015 | 2014 | |||||||
Current | $ | 939,284 | $ | 934,100 | |||||
Deferred | (114,147 | ) | (55,178 | ) | |||||
Income tax expense | $ | 825,137 | $ | 878,922 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of Basic and diluted earnings per share | 2015 | 2014 | |||||||
Weighted average number of common shares- Basic and diluted | 14,784,094 | 14,781,241 | |||||||
Earnings per share - basic and diluted | $ | 0.16 | $ | 0.16 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Summary of other expenses due to related parties | 2015 | 2014 | |||||||
Jiangsu Ever-Glory | $ | 12,756 | $ | 12,827 | |||||
Kunshan Enjin | 12,141 | 10,569 | |||||||
Total | $ | 24,897 | $ | 23,396 | |||||
Summary of sub-contracts with related parties | 2015 | 2014 | |||||||
Ever-Glory Vietnam | $ | 1,035,290 | $ | 3,188,264 | |||||
Chuzhou huarui | 1,031,612 | - | |||||||
Fengyang huarui | 408,706 | - | |||||||
Ever-Glory Cambodia | 303,833 | 2,261,054 | |||||||
Nanjing Ever-Kyowa | 272,700 | 435,519 | |||||||
Sea to Sky | 258,583 | - | |||||||
EsC'eLav | 2,009 | - | |||||||
Jiangsu Ever-Glory | 335 | 25,284 | |||||||
Total | $ | 3,313,068 | $ | 5,910,121 | |||||
Summary of accounts payable - related parties | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Fengyang huarui | $ | 545,690 | 622,060 | ||||||
Ever-Glory Vietnam | 410,679 | 1,883,556 | |||||||
Nanjing Ever-Kyowa | 374,134 | 479,032 | |||||||
Sea to sky | 160,723 | - | |||||||
Chuzhou huarui | 143,287 | 414,583 | |||||||
Nanjing Knitting | 31,803 | 199,766 | |||||||
JiangsuWubijia | 4,236 | 5,460 | |||||||
EsC'eLav | 2,009 | - | |||||||
Ever-Glory Cambodia | - | 291,121 | |||||||
Total | $ | 1,672,561 | $ | 3,895,578 | |||||
Summary of amounts due from related party | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. | $ | 20,634 | $ | 20,558 | |||||
Ever-Glory Cambodia | 602,608 | - | |||||||
Sea to sky | - | 48,750 | |||||||
Jiangsu Ever-Glory | 3,977,589 | 1,582,679 | |||||||
Total | $ | 4,600,831 | $ | 1,651,987 |
Concentrations_and_Risks_Table
Concentrations and Risks (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Concentrations and Risks [Abstract] | |||||||||
Company's revenues as per geographic areas | 2015 | 2014 | |||||||
The People’s Republic of China(PRC) | $ | 18,933,934 | $ | 14,598,025 | |||||
Germany | 4,486,969 | 6,298,160 | |||||||
United Kingdom | 3,152,479 | 2,624,147 | |||||||
France | 526,126 | 3,924,062 | |||||||
Europe-Other | 1,275,580 | 2,531,860 | |||||||
Japan | 2,930,203 | 6,242,892 | |||||||
United States | 1,968,635 | 3,222,343 | |||||||
Total wholesale business | 33,273,926 | 39,441,489 | |||||||
Retail business-PRC | 64,629,036 | 66,573,680 | |||||||
Total | $ | 97,902,962 | $ | 106,015,169 |
Segments_Tables
Segments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segments [Abstract] | |||||||||||||
Company's financial and operating information | Wholesale | Retail | Total | ||||||||||
segment | segment | ||||||||||||
March 31,2015 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 33,273,926 | $ | 64,629,036 | $ | 97,902,962 | |||||||
Income from operations | $ | 1,832,027 | $ | 1,607,023 | $ | 3,439,050 | |||||||
Interest income | $ | 308,335 | $ | 15,069 | $ | 323,404 | |||||||
Interest expense | $ | 593,926 | $ | 181,920 | $ | 775,846 | |||||||
Depreciation and amortization | $ | 342,527 | $ | 2,167,644 | $ | 2,510,171 | |||||||
Income tax expense | $ | 455,076 | $ | 370,061 | $ | 825,137 | |||||||
March 31,2014 | |||||||||||||
Segment profit or loss: | |||||||||||||
Net revenue from external customers | $ | 39,441,489 | $ | 66,573,680 | $ | 106,015,169 | |||||||
Income from operations | $ | 1,415,920 | $ | 1,846,753 | $ | 3,262,673 | |||||||
Interest income | $ | 226,627 | $ | 14,706 | $ | 241,333 | |||||||
Interest expense | $ | 566,567 | $ | 140,548 | $ | 707,115 | |||||||
Depreciation and amortization | $ | 264,546 | $ | 1,626,380 | $ | 1,890,926 | |||||||
Income tax expense | $ | 297,639 | $ | 544,848 | $ | 842,487 |
Basis_of_Presentation_Details_
Basis of Presentation (Details Textual) | 0 Months Ended | 1 Months Ended | |||
Mar. 27, 2015 | Jun. 26, 2014 | Jun. 26, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
USD ($) | USD ($) | CNY | USD ($) | USD ($) | |
Basis of Presentation [Abstract] | |||||
Percentage of acquisition | 78.00% | 78.00% | |||
Cash paid to Shanghai La Go Go | $750,000 | 4,600,000 | |||
Cash paid to Shanghai Yiduo | 80,000 | ||||
Intangible assets | $6,401,150 | $4,041,284 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of inventory | ||
Raw materials | $2,704,569 | $2,779,719 |
Work-in-progress | 15,649,561 | 15,197,489 |
Finished goods | 59,787,064 | 69,168,169 |
Inventory gross | 78,141,194 | 87,145,377 |
Less: Provision for obsolete inventories | -16,875,350 | -16,875,164 |
Total inventories | $61,265,844 | $70,270,213 |
Bank_Loans_Details
Bank Loans (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of bank loans | ||
Bank loans | $45,664,342 | $60,216,950 |
Nanjing Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 13,897,906 | 17,357,412 |
Industrial and Commercial Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | 11,417,000 | 11,375,000 |
HSBC [Member] | ||
Schedule of bank loans | ||
Bank loans | 5,917,590 | 6,766,960 |
Bank of Communications [Member] | ||
Schedule of bank loans | ||
Bank loans | 4,893,000 | 13,021,612 |
China Minsheng Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,262,000 | 3,250,000 |
Shanghai Pudong Development Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,262,000 | 3,250,000 |
Ping An Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 1,546,946 | 3,867,605 |
China Citic Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 1,467,900 | |
Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | $1,328,361 |
Bank_Loans_Details_Textual
Bank Loans (Details Textual) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2014 | Nov. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2013 | Jul. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2013 | Nov. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2011 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Shanghai Pudong Development Bank [Member] | Shanghai Pudong Development Bank [Member] | Shanghai Pudong Development Bank [Member] | Shanghai Pudong Development 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] | 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 China [Member] | Bank of China [Member] | Bank of China [Member] | HSBC [Member] | HSBC [Member] | HSBC [Member] | China Minsheng Bank [Member] | China Minsheng Bank [Member] | Ping An Bank [Member] | China Citic Bank [Member] | China Citic Bank [Member] | China Citic Bank [Member] | China Citic Bank [Member] | |
Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | Ever Glory Apparel [Member] | La Go Go [Member] | La Go Go [Member] | La Go Go [Member] | La Go Go [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [Member] | Goldenway [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] | 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 and Perfect Dream [Member] | Ever-Glory Apparel and Perfect Dream [Member] | La Go Go [Member] | La Go Go [Member] | Ever Glory Apparel [Member] | La Go Go [Member] | La Go Go [Member] | La Go Go [Member] | La Go Go [Member] | |||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | |||
Bank Loans (Textual) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $8,160,000 | 50,000,000 | $3,260,000 | 20,000,000 | $9,790,000 | 60,000,000 | $2,450,000 | 15,000,000 | $3,260,000 | 20,000,000 | $3,260,000 | 20,000,000 | $3,260,000 | 20,000,000 | $6,520,000 | 40,000,000 | $9,790,000 | 60,000,000 | $4,890,000 | 30,000,000 | $6,520,000 | 40,000,000 | $8,480,000 | 52,000,000 | $4,890,000 | 30,000,000 | $5,380,000 | 33,000,000 | $5,700,000 | 35,000,000 | $5,920,000 | $5,920,000 | $7,000,000 | $3,260,000 | 20,000,000 | $1,550,000 | $1,470,000 | 9,000,000 | $5,870,000 | 36,000,000 | ||||||||||||
Revolving line of credit agreement, amount borrowed | 4,890,000 | 30,000,000 | 1,830,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Revolving line of credit agreement, borrowed | 3,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Effective interest rate during the period | 2.00% | 5.60% | 6.16% | 6.16% | 5.70% | 5.70% | 5.77% | 6.42% | 5.64% | 5.64% | 6.60% | 6.62% | 5.88% | 6.30% | 6.30% | 5.40% | 5.88% | 5.88% | ||||||||||||||||||||||||||||||||||
Due date of revolving line of credit agreement | August to November 2015. | May 2015. | May 2015. | April to November 2015. | April to November 2015. | May to June 2015. | May to June 2015. | June to August 2015. | August 2015. | August 2015. | April to May 2015 | December 2015. | December 2015. | |||||||||||||||||||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 4,900,000 | 1,600,000 | 810,000 | 5,000,000 | 3,270,000 | 1,630,000 | 8,480,000 | 490,000 | 5,700,000 | 1,080,000 | 4,400,000 | |||||||||||||||||||||||||||||||||||||||||
Due date of additional borrowing | September 2015. | September 2015. | April to June 2015 | April to August 2015. | April to August 2015. | |||||||||||||||||||||||||||||||||||||||||||||||
Line of credit interest rate on additional borrowing | 6.10% | 6.10% | 2.10% | 2.20% | 6.96% | |||||||||||||||||||||||||||||||||||||||||||||||
Revolving line of credit agreement, collateral amount | 5,060,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest expense | $775,846 | $707,115 |
Derivatives_Liability_Details
Derivatives Liability (Details) (EUR €) | 1 Months Ended |
Oct. 31, 2014 | |
Derivative Warrant Liability (Textual) | |
Derivative notional amount | € 60,000 |
Warrants expiration date | 31-Mar-15 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Pre-tax income in jurisdictions | ||
Pre-tax income | $3,220,692 | $3,268,650 |
PRC [Member] | ||
Summary of Pre-tax income in jurisdictions | ||
Pre-tax income | 3,313,209 | 3,274,013 |
BVI [Member] | ||
Summary of Pre-tax income in jurisdictions | ||
Pre-tax income | -90,017 | -363 |
Others [Member] | ||
Summary of Pre-tax income in jurisdictions | ||
Pre-tax income | ($2,500) | ($5,000) |
Income_Tax_Details_1
Income Tax (Details 1) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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% |
Preferential tax treatment | -0.70% | |
Effect of foreign income tax rates | 0.70% | |
Other | 0.60% | 1.90% |
Effective income tax rate | 25.60% | 26.90% |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Components of income tax expense | ||
Current | $939,284 | $934,100 |
Deferred | -127,980 | 8,127 |
Income tax expense | $825,137 | $878,922 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | |
Income Tax (Textual) | |||
PRC statutory rate | 15.00% | ||
Tax liability | $3,186,000 | ||
Tax Expiration | 31-Dec-17 | ||
Income Taxes Paid, Net | 111,023 | ||
U.S. deferred income taxes | 70,055,475 | ||
Maximum [Member] | |||
Income Tax (Textual) | |||
Effective income tax reduction, Percent | 15.00% | ||
Minimum [Member] | |||
Income Tax (Textual) | |||
Effective income tax reduction, Percent | 9.00% | ||
PRC [Member] | |||
Income Tax (Textual) | |||
PRC statutory rate | 25.00% | 25.00% | |
Tax liability | $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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Basic and diluted earnings per share | ||
Weighted average number of common shares- Basic and diluted | 14,784,094 | 14,781,241 |
Earnings per share - basic and diluted | $0.16 | $0.16 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended |
Aug. 15, 2014 | |
Three Independent Directors [Member] | |
Stockholders' Equity (Textual) | |
Common stock shares issued to independent directors | 2,055 |
Common stock issued at five days average market price | $4.91 |
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 |
Number of days used to calculation average market price of common stock | five days before the grant date. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of other expenses due to related parties | ||
Total | $24,897 | $23,396 |
Jiangsu Ever-Glory [Member] | ||
Summary of other expenses due to related parties | ||
Total | 12,756 | 12,827 |
Kunshan Enjin [Member] | ||
Summary of other expenses due to related parties | ||
Total | $12,141 | $10,569 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of sub-contracts with related parties | ||
Total | $3,313,068 | $5,910,121 |
Ever-Glory Vietnam [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 1,035,290 | 3,188,264 |
Chuzhou Huarui [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 1,031,612 | |
Fengyang Huarui [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 408,706 | |
Ever-Glory Cambodia [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 303,833 | 2,261,054 |
Nanjing Ever-Kyowa [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 272,700 | 435,519 |
Sea To Sky [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 258,583 | |
EsC'eLav [Member] | ||
Summary of sub-contracts with related parties | ||
Total | 2,009 | |
Jiangsu Ever-Glory [Member] | ||
Summary of sub-contracts with related parties | ||
Total | $335 | $25,284 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Summary of accounts payable - related parties | ||
Total | $1,672,561 | $3,895,578 |
Fengyang Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 545,690 | 622,060 |
Ever-Glory Vietnam [Member] | ||
Summary of accounts payable - related parties | ||
Total | 410,679 | 1,883,556 |
Nanjing Ever-Kyowa [Member] | ||
Summary of accounts payable - related parties | ||
Total | 374,134 | 479,032 |
Sea To Sky [Member] | ||
Summary of accounts payable - related parties | ||
Total | 160,723 | |
Chuzhou Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 143,287 | 414,583 |
Nanjing Knitting [Member] | ||
Summary of accounts payable - related parties | ||
Total | 31,803 | 199,766 |
Jiangsu Wubijia [Member] | ||
Summary of accounts payable - related parties | ||
Total | 4,236 | 5,460 |
EsC'eLav [Member] | ||
Summary of accounts payable - related parties | ||
Total | 2,009 | |
Ever-Glory Cambodia [Member] | ||
Summary of accounts payable - related parties | ||
Total | $291,121 |
Related_Party_Transactions_Det3
Related Party Transactions (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Summary of amounts due from related parties | ||
Amounts due from related parties | $4,600,831 | $1,651,987 |
Nanjing Eight-One-Five Hi-Tech (M&E) Co., Ltd. [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | 20,634 | 20,558 |
Ever Glory Cambodia [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | 602,608 | |
Sea To Sky [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | 48,750 | |
Jiangsu Ever-Glory [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | $3,977,589 | $1,582,679 |
Related_Party_Transactions_Det4
Related Party Transactions (Details Textual) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
USD ($) | 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] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Nanjing Knitting [Member] | Edward Yihua Kang [Member] | Edward Yihua Kang [Member] | Jiangsu Wubijia [Member] | Jiangsu Wubijia [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | |||||
Related Party Transactions (Textual) | ||||||||||||||||||
Amounts due from related party | $20,593,799 | $19,424,342 | ||||||||||||||||
Accounts payable and other payables - related parties | 1,672,561 | 3,895,578 | 4,236 | 5,460 | ||||||||||||||
Purchase of raw material | 0 | 2,569,656 | 178,939 | 433,450 | ||||||||||||||
Sub-contracts with related parties | 3,313,068 | 5,910,121 | 335 | 25,284 | ||||||||||||||
Company sold raw materials | 2,569,656 | 0 | 335 | 19,221 | ||||||||||||||
Line of credit facility, collateral amount | 22,300,000 | 136,000,000 | 22,300,000 | 136,000,000 | ||||||||||||||
Guaranty on lines of credit | 40,620,000 | 250,000,000 | 46,850,000 | 286,000,000 | 41,400,000 | 254,000,000 | ||||||||||||
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 | -1,307,200 | 300,000 | 200,000 | |||||||||||||||
Amount of Guarantee reduced | 18,240,000 | 112,000,000 | ||||||||||||||||
Currency exchange adjustment | 60,000 | |||||||||||||||||
Accrued interest | 2,350,000 | |||||||||||||||||
Other Income | 7,850 | |||||||||||||||||
Consignment received | 6,620 | |||||||||||||||||
Net profit | 2,395,555 | 2,389,728 | 1,230 | |||||||||||||||
Counter guaranty provided by parent company on lines of credit | 17,360,000 | 107,000,000 | 820,000 | 5,000,000 | ||||||||||||||
Percentage of reduced guarantee | 39.10% | 39.10% | ||||||||||||||||
Value of equity redemption | $20,590,000 | $19,420,000 |
Concentrations_and_Risks_Detai
Concentrations and Risks (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Company's revenues as per geographic areas | ||
Net revenue | $97,902,962 | $106,015,169 |
Wholesale Business [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 33,273,926 | 39,441,489 |
Retail business-PRC [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 64,629,036 | 66,573,680 |
The People's Republic of China(PRC) [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 18,933,934 | 14,598,025 |
Germany [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 4,486,969 | 6,298,160 |
United Kingdom [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 3,152,479 | 2,624,147 |
France [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 526,126 | 3,924,062 |
Europe-Other [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 1,275,580 | 2,531,860 |
Japan [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | 2,930,203 | 6,242,892 |
United States [Member] | ||
Company's revenues as per geographic areas | ||
Net revenue | $1,968,635 | $3,222,343 |
Concentrations_and_Risks_Detai1
Concentrations and Risks (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Concentrations and Risks (Textual) | |||
Allowance for doubtful accounts | 1,670,345 | $1,787,282 | |
Wholesale Business [Member] | Raw Materials [Member] | |||
Concentrations and Risks (Textual) | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer One [Member] | |||
Concentrations and Risks (Textual) | |||
Concentration Risk, Percentage | 11.00% | 17.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer Two [Member] | |||
Concentrations and Risks (Textual) | |||
Concentration Risk, Percentage | 10.00% | 12.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer Three [Member] | |||
Concentrations and Risks (Textual) | |||
Concentration Risk, Percentage | 10.00% | ||
Wholesale Business [Member] | Revenues [Member] | Customer One [Member] | |||
Concentrations and Risks (Textual) | |||
Number of wholesale customer | 2 | 2 | |
Concentration Risk, Percentage | 15.00% | 14.00% | |
Wholesale Business [Member] | Revenues [Member] | Customer Two [Member] | |||
Concentrations and Risks (Textual) | |||
Number of wholesale customer | 2 | 2 | |
Concentration Risk, Percentage | 14.00% | 11.00% | |
Retail Business [Member] | Raw Materials [Member] | |||
Concentrations and Risks (Textual) | |||
Number of raw materials suppliers | 1 | 1 | |
Concentration Risk, Percentage | 12.00% | 12.00% | |
Retail Business [Member] | Finished Goods [Member] | |||
Concentrations and Risks (Textual) | |||
Concentration Risk, Percentage | 10.00% | 10.00% |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of segment profit or loss: | ||
Net revenue from external customers | $97,902,962 | $106,015,169 |
Income from operations | 3,439,050 | 3,262,673 |
Interest income | 323,404 | 241,333 |
Interest expense | 775,846 | 707,115 |
Depreciation and amortization | 2,510,170 | 1,890,926 |
Income tax expense | 825,137 | 878,922 |
Wholesale segment [Member] | ||
Summary of segment profit or loss: | ||
Net revenue from external customers | 33,273,926 | 39,441,489 |
Income from operations | 1,832,027 | 1,415,920 |
Interest income | 308,335 | 226,627 |
Interest expense | 593,926 | 566,567 |
Depreciation and amortization | 342,527 | 264,546 |
Income tax expense | 455,076 | 297,639 |
Retail segment [Member] | ||
Summary of segment profit or loss: | ||
Net revenue from external customers | 64,629,036 | 66,573,680 |
Income from operations | 1,607,023 | 1,846,753 |
Interest income | 15,069 | 14,706 |
Interest expense | 181,920 | 140,548 |
Depreciation and amortization | 2,167,644 | 1,626,380 |
Income tax expense | $370,061 | $544,848 |