Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Entity Central Index Key | 943,184 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,785,868 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 28,250,926 | $ 34,134,239 |
Accounts receivable | 58,207,714 | 91,874,693 |
Inventories | 77,822,975 | 70,270,213 |
Value added tax receivable | 4,043,652 | 2,697,080 |
Other receivables and prepaid expenses | 2,673,142 | 3,523,862 |
Advances on inventory purchases | 2,876,584 | 3,916,913 |
Amounts due from related parties | 1,367,997 | 1,651,987 |
Total Current Assets | 175,242,990 | 208,068,987 |
INTANGIBLE ASSETS | 6,588,881 | 4,041,284 |
PROPERTY AND EQUIPMENT, NET | 21,007,935 | 20,102,976 |
TOTAL ASSETS | 202,839,806 | 232,213,247 |
CURRENT LIABILITIES | ||
Bank loans | 40,917,467 | 60,216,950 |
Accounts payable | 45,736,091 | 58,923,234 |
Accounts payable and other payables - related parties | 3,193,353 | 3,895,578 |
Other payables and accrued liabilities | 19,009,402 | 20,911,191 |
Value added and other taxes payable | 5,463,016 | 6,217,081 |
Income tax payable | 4,445,608 | 5,523,173 |
Deferred tax liabilities | 3,894,156 | 3,874,594 |
Total Current Liabilities | 122,659,093 | 159,561,801 |
TOTAL LIABILITIES | $ 122,659,093 | $ 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 June 30, 2015 and December 31, 2014, respectively) | $ 14,784 | $ 14,784 |
Additional paid-in capital | 3,587,195 | 3,587,195 |
Retained earnings | 73,653,615 | 67,659,920 |
Statutory reserve | 12,536,641 | 12,536,641 |
Accumulated other comprehensive income | 8,606,141 | 8,277,248 |
Amounts due from related party | (18,341,688) | (19,424,342) |
Total Stockholders' Equity | 80,056,688 | $ 72,651,446 |
Noncontrolling interest | 124,025 | |
Total Equity | 80,180,713 | $ 72,651,446 |
TOTAL LIABILITIES AND EQUITY | $ 202,839,806 | $ 232,213,247 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
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 Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
NET SALES | $ 75,726,998 | $ 85,667,780 | $ 173,629,960 | $ 191,682,949 |
COST OF SALES | 45,679,590 | 56,317,989 | 112,974,179 | 136,552,201 |
GROSS PROFIT | 30,047,408 | 29,349,791 | 60,655,781 | 55,130,748 |
OPERATING EXPENSES | ||||
Selling expenses | 17,582,288 | 14,402,662 | 37,837,662 | 30,525,958 |
General and administrative expenses | 7,606,070 | 7,539,418 | 14,520,019 | 13,934,406 |
Total Operating Expenses | 25,188,358 | 21,942,080 | 52,357,681 | 44,460,364 |
INCOME FROM OPERATIONS | 4,859,050 | 7,407,711 | 8,298,100 | 10,670,384 |
OTHER INCOME (EXPENSES) | ||||
Interest income | 215,351 | 336,414 | 538,755 | 577,747 |
Interest expense | (716,441) | (774,693) | (1,492,287) | (1,481,808) |
Other income (expenses) | 538,613 | 440,464 | 772,697 | 912,223 |
Total Other Income (Expenses) | 37,523 | 2,185 | (180,835) | 8,162 |
INCOME BEFORE INCOME TAX EXPENSE | 4,896,573 | 7,409,896 | 8,117,265 | 10,678,546 |
Income tax expense | (1,378,827) | (1,879,752) | (2,203,964) | (2,758,674) |
NET INCOME | 3,517,746 | $ 5,530,144 | 5,913,301 | $ 7,919,872 |
Net (income) loss attributable to the non-controlling interest | 80,394 | 80,394 | ||
NET INCOME ATTRIBUTABLE TO THE COMPANY | 3,598,140 | $ 5,530,144 | 5,993,695 | $ 7,919,872 |
NET INCOME | 3,517,746 | 5,530,144 | 5,913,301 | 7,919,872 |
Foreign currency translation (loss) gain | (127,037) | 356,044 | 328,893 | (343,382) |
COMPREHENSIVE INCOME | 3,390,709 | $ 5,886,188 | 6,242,194 | $ 7,576,490 |
Comprehensive (income) loss attributable to the non-controlling interest | 80,560 | 80,560 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 3,471,269 | $ 5,886,188 | $ 6,322,754 | $ 7,576,490 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | ||||
Basic and diluted | $ 0.24 | $ 0.37 | $ 0.41 | $ 0.54 |
Weighted average number of shares outstanding | ||||
Basic and diluted | 14,784,094 | 14,781,241 | 14,784,094 | 14,781,241 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 5,913,301 | $ 7,919,872 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 4,678,225 | $ 3,462,128 |
Recovering for doubtful accounts | (142,757) | |
Deferred income tax | 2,861 | $ (2,409,053) |
Changes in operating assets and liabilities | ||
Accounts receivable | 34,100,343 | 19,441,054 |
Inventories | (7,265,652) | (1,927,458) |
Value added tax receivable | (1,332,500) | (1,286,005) |
Other receivables and prepaid expenses | 864,521 | (529,644) |
Advances on inventory purchases | 1,055,259 | (404,581) |
Amounts due from related parties | 185,880 | 1,334,894 |
Accounts payable | (13,416,258) | (22,393,350) |
Accounts payable and other payables- related parties | (1,073,581) | (2,527,146) |
Other payables and accrued liabilities | (1,987,362) | (1,076,252) |
Value added and other taxes payable | (779,412) | (631,814) |
Income tax payable | (1,099,332) | 3,830,846 |
Net cash provided by operating activities | 19,703,536 | 2,803,491 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (5,438,113) | $ (4,185,207) |
Proceeds from sale of property and equipment | 3,526 | |
Purchase of intangible assets | (1,731,627) | |
Acquisition of Yiduo net of cash acquired | (456,776) | |
Net cash used in investing activities | (7,622,990) | $ (4,185,207) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 52,715,587 | 73,693,038 |
Repayment of bank loans | (72,217,424) | (71,260,909) |
Advances to related party | (814,500) | $ (5,046,800) |
Repayment of advances from related party | $ 2,443,500 | |
Interest income received from related party | $ 1,302,400 | |
Net cash (used in) provided by financing activities | $ (17,872,837) | (1,312,271) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (91,022) | (66,731) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (5,883,313) | (2,760,718) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 34,134,239 | 27,772,878 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 28,250,926 | 25,012,160 |
Cash paid during the period for: | ||
Interest | 1,492,287 | 1,481,808 |
Income taxes | 3,300,525 | $ 1,354,679 |
SUPPLEMENTAL INFORMATION OF NONCASH INVESTING ACTIVITIES | ||
Increase in intangible assets and non-controlling interests | $ 232,947 |
Summary of Business and Basis o
Summary of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Business and Basis of Presentation [Abstract] | |
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1 SUMMARY OF BUSINESS AND BASIS OF PRESENTATION Organization and business 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”), Xizang He Meida Trading Company Limited (“He Meida”) and 78% owned Shanghai Yiduo Fashion Company Limited (“Shanghai Yiduo”). 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 Shanghai Yiduo, 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. During the three months ended June 30, 2015, the Company made a $1,062,800 (RMB6.5 million) capital contribution to Shanghai Yiduo as required by the acquisition agreement. As a result, the value of Shanghai Yiduo recorded as intangible assets, and the non-controlling interest increased by $232,947. Management 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 June 30, 2015, the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2015 and 2014, and the condensed consolidated statements of cash flows for the six months ended June 30, 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 completed consolidated 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 and six months ended June 30, 2015 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and Form 10-Q for the three and six months ended June 30, 2014. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 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 June 30, 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. At December 31, 2014, the Company had an outstanding forward foreign exchange option contract 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 Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts from Customers 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 condensed consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 3 INVENTORIES Inventories at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, Raw materials $ 3,031,159 $ 2,779,719 Work-in-progress 28,188,836 15,197,489 Finished goods 63,346,430 69,168,169 94,566,425 87,145,377 Less: allowance for obsolete inventories (16,743,450 ) (16,875,164 ) Total inventories $ 77,822,975 $ 70,270,213 |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 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. Bank loans consisted of the following at June 30, 2015 and December 31, 2014: Bank June 30, 2015 December 31, 2014 Nanjing Bank $ 14,103,540 $ 17,357,412 Industrial and Commercial Bank of China 13,056,000 11,375,000 HSBC 5,077,764 6,766,960 Bank of Communications 3,264,000 13,021,612 China Minsheng Banking 3,264,000 3,250,000 China Citic Bank 1,468,800 - Pin An Bank 683,363 3,867,605 Shanghai Pudong Development Bank - 3,250,000 Bank of China - 1,328,361 $ 40,917,467 $ 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 June 30, 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 June 30, 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 June 30, 2015, Ever-Glory Apparel had borrowed $6.53 million (RMB40 million) from Nanjing Bank with annual interest rates ranging from 5.5% to 6.4% and due on various dates from August to December 2015. Ever-Glory Apparel had also borrowed $1.86 million from Nanjing Bank with annual interest rates ranging from 1.7% to 2.1% and due on various dates from July to August 2015, and collateralized by approximately $2.45 million of accounts receivable from wholesale customers. At June 30, 2015, approximately $1.4 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 June 30, 2015, LA GO GO had borrowed $2.45 million (RMB15 million) under this line of credit with an annual interest rates ranging from 5.9% to 6.2% and due on various dates from August 2015 to January 2016. At June 30, 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 June 30, 2015, Goldenway had borrowed $6.53 million (RMB40 million) under this line of credit with an annual interest rates ranging from 5.5% - 5.8% and due on various dates from November 2015 to February 2016. At June 30, 2015, approximately $3.26 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 $6.53 million (RMB40 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of June 30, 2015, Ever-Glory Apparel had borrowed $6.53 million (RMB 40 million) under this line of credit with an annual interest rates ranging from 5.1% - 5.4% and due on various dates from October to December 2015. 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 June 30, 2015, Ever-Glory Apparel had borrowed $5.08 million from HSBC with an annual interest rate of 5.88%, due in August 2015, and collateralized by approximately $6.68 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of June 30, 2015, approximately $1.92 million was unused and available. In July 2013, LA GO GO entered into a line of credit agreement for approximately $5.39 million (RMB33 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 2015, LA GO GO had borrowed $3.26 million (RMB20 million) from the Bank of Communications with annual interest rates ranging from 5.3% to 6.6% and due on various dates from August 2015 to June 2016. At June 30, 2015, approximately $2.13 million was unused and available under this line of credit. As of June 30, 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 December 2014, LA GO GO entered into a line of credit agreement for approximately $5.88 million (RMB36 million) with the China Citic Bank and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 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 June 30, 2015, approximately $4.41 million was unused and available under this line of credit. As of June 30, 2015, Ever-Glory Apparel had borrowed $0.68 million from Ping An Bank, with annual interest rate of 5.4% and due in July 2015, and collateralized by approximately $0.89 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 June 30, 2015, approximately $5.70 million was unused and available under this line of credit. 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. At June 30, 2015, approximately $3.26 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 $716,441, $1,492,287, $774,693, $1,481,808 for the three and six months ended June 30, 2015 and 2014, respectively. |
Derivatives Liability
Derivatives Liability | 6 Months Ended |
Jun. 30, 2015 | |
Derivatives Liability [Abstract] | |
DERIVATIVES LIABILITY | NOTE 5 DERIVATIVES 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 was not significant. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 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 an 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 two to three years period. Approximately $346,421 was paid as of June 30, 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. The pre-tax income for the three and six months ended June 30, 2015 and 2014 was taxable in the following jurisdictions: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 PRC $ 4,900,055 $ 7,439,468 $ 8,213,264 $ 10,713,481 BVI (982 ) (24,572 ) (90,999 ) (24,935 ) Others (2,500 ) (5,000 ) (5,000 ) (10,000 ) $ 4,896,573 $ 7,409,896 $ 8,117,265 $ 10,678,546 The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and six months ended June 30, 2015 and 2014, respectively: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment (0.3 ) - (0.7 ) - Effect of foreign income tax rates - 0.1 0.3 0.1 Other 3.5 0.3 2.6 0.7 Effective income tax rate 28.2 % 25.4 % 27.2 % 25.8 % Income tax expense for the three and six months ended June 30, 2015 and 2014 is as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Current $ 1,245,118 $ 4,281,918 $ 2,184,402 $ 5,216,018 Deferred 133,709 (2,402,166 ) 19,562 (2,457,344 ) Income tax expense $ 1,378,827 $ 1,879,752 $ 2,203,964 $ 2,758,674 The Company has not recorded U.S. deferred income taxes of approximately $73,653,615 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 | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7 EARNINGS PER SHARE The following demonstrates the calculation for earnings per share for the Company’s stockholders for the three and six months ended June 30, 2015 and 2014: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Weighted average number of common shares – Basic and diluted 14,784,094 14,781,241 14,784,094 14,781,241 Earnings per share – Basic and diluted $ 0.24 $ 0.37 $ 0.41 $ 0.54 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 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. On July 29, 2015, the Company issued an aggregate of 854 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 2014. The shares were valued at $5.91 per share, which was the average market price of the common stock for the five days before the grant date. On July 29, 2015, the Company issued an aggregate of 920 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 2015. The shares were valued at $5.39 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 | 6 Months Ended |
Jun. 30, 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 shareholder. 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 and six months ended June 30, 2015, the Company received other income $2,026 and $9,786 from the customers and paid $2,480 and $9,100 to Wubijia through the consignment, respectively. The net (loss) profit of ($454) and $686 was recorded as other income during three and six months ended June 30, 2015, respectively. Other expenses due to Related Parties Included in other expenses for the three and six months ended June 30, 2015 and 2014 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Jiangsu Ever-Glory $ 12,819 $ 12,733 $ 25,575 $ 25,560 Kunshan Enjin 12,201 10,491 24,342 21,060 Total $ 25,020 $ 23,224 $ 49,917 $ 46,620 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 For the three and six months ended June 30, 2015 and 2014, the Company purchased raw materials of $506,904, $685,843, $450,620, $884,070, respectively, from Nanjing Knitting. In addition, 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 six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 Chuzhou huarui $ 1,461,299 $ - $ 2,492,911 $ - Fengyang huarui 327,129 - 735,835 - Nanjing Ever-Kyowa 313,883 426,451 586,583 861,970 Ever-Glory Vietnam 3,852,460 1,776,620 4,887,750 4,964,884 Ever-Glory Cambodia 68,228 696,136 372,061 2,957,190 EsCeLav - - 2,009 - Shanghai Weiwen - 1,502,785 - 1,502,785 Shanghai Sea to Sky 158 377,793 258,741 377,793 Jiangsu Ever-Glory 25,576 - 25,911 25,284 $ 6,048,733 $ 4,779,785 $ 9,361,801 $ 10,689,906 Accounts Payable – Related Parties Accounts payable to related parties at June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, Fengyang huarui $ - 622,060 Ever-Glory Vietnam 2,024,905 1,883,556 Nanjing Ever-Kyowa 552,521 479,032 Chuzhou huarui 455,300 414,583 Nanjing Knitting 150,685 199,766 JiangsuWubijia 5,877 5,460 Kunshan Enjin 4,065 - Ever-Glory Cambodia - 291,121 Total $ 3,193,353 $ 3,895,578 Amounts Due From Related Parties The amounts due from related parties at June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, 2014 Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. $ 20,647 $ 20,558 Ever-Glory Cambodia 958,957 - EsCeLav 9,114 - Fengyang huarui 53,895 - Sea to sky - 48,750 Jiangsu Ever-Glory 325,384 1,582,679 Total $ 1,367,997 $ 1,651,987 The Company had prepaid $958,957 and $53,895 to the sub-contractors, Ever-Glory Cambodia and Fengyang huarui, respectively, for the next period’s subcontracting fees. 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 six months ended June 30, 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 $3,026,053 and $0 during the six month period ended June 30, 2015 and 2014, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at cost for $25,911 and $19,221 during the six months ended June 30, 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 June 30, 2015 and December 31, 2014, Jiangsu Ever-Glory has provided guarantees for approximately $38.19 million (RMB 234 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 $10.0 million (RMB 61 million) and $22.3 million (RMB 136 million) as of June 30, 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 six months ended June 30, 2015, an additional US$0.82 million (RMB5 million) was provided to and repayment of $2.45 million (RMB 15 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of June 30, 2015, the amount of the counter-guarantee was $15.8 million (RMB 96.8 million) (the difference represents currency exchange adjustment of $0.07 million), which was 41.4% of the aggregate amount of lines of credit. This amount plus accrued interest of $2.54 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2015 and December 31, 2014, the amount classified as a reduction of equity was $18.34 million and $19.42 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. From April 1, 2015, interest rate change to 0.41% as the bank benchmark interest rate decreased. Interest income for the three and six months ended June 30, 2015 and 2014 was approximately $0.2 million, $0.5 million, $0.3 million and $0.5 million, respectively. |
Concentrations and Risks
Concentrations and Risks | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 was $1,651,961 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 six-month period ended June 30, 2015, the Company had two wholesale customers that represented approximately 13% and 11% of the Company’s revenues, respectively. For the three-month period ended June 30, 2015, the Company had one wholesale customer that represented approximately 10% of the Company’s revenues. For the six-month period ended June 30, 2014, the Company had one wholesale customer that represented approximately 14% of the Company’s revenues. For the three-month period ended June 30, 2014, the Company had one wholesale customer that represented approximately 15% of the Company’s revenues. For the Company’s wholesale business during the three and six months ended June 30, 2015 and 2014, no supplier represented more than 10% of the total raw materials purchased. For the Company’s retail business, the Company had no supplier that represented more than 10% of raw materials purchases during the three and six months ended June 30, 2015 and 2014. For the wholesale business, during the six months ended June 30, 2015, the Company relied on two manufacturers for 23% and 12% of purchased finished goods, respectively. For the wholesale business, during the six months ended June 30, 2014, the Company relied on two manufacturers for 16% and 10% of purchased finished goods, respectively. For the retail business, the Company had no supplier that represented more than 10% of finished goods purchases during the three and six months ended June 30, 2015. The Company had no supplier that represented more than 10% of finished goods purchases during the six months ended June 30, 2014. The Company purchased 11% of its finished goods from one supplier during the three months ended June 30, 2014. The Company’s revenues for the three and six months ended June 30, 2015 and 2014 were earned in the following geographic areas: Three months ended Six months ended 2015 2014 2015 2014 The People’s Republic of China $ 9,373,554 $ 12,929,219 $ 28,307,488 $ 27,527,244 Germany 2,780,201 5,525,792 7,267,170 11,823,952 United Kingdom 3,828,237 9,018,214 6,980,716 11,642,361 Europe-Other 6,897,024 2,061,398 8,698,730 8,517,320 Japan 2,933,661 2,431,821 5,863,864 8,674,713 United States 3,979,362 4,428,137 5,947,997 7,650,480 Total wholesale business 29,792,039 36,394,581 63,065,965 75,836,070 Retail business 45,934,959 49,273,199 110,563,995 115,846,879 Total $ 75,726,998 $ 85,667,780 $ 173,629,960 $ 191,682,949 |
Segments
Segments | 6 Months Ended |
Jun. 30, 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 Wholesale Retail Total Six months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 63,065,965 $ 110,563,995 $ 173,629,960 Income from operations $ 3,584,692 $ 4,713,408 $ 8,298,100 Interest income $ 501,180 $ 37,575 $ 538,755 Interest expense $ 1,116,595 $ 375,692 $ 1,492,287 Depreciation and amortization $ 597,311 $ 4,080,914 $ 4,678,225 Income tax expense $ 870,963 $ 1,333,001 $ 2,203,964 Six months ended June 30, 2014 Segment profit or loss: Net revenue from external customers $ 75,836,070 $ 115,846,879 $ 191,682,949 Income from operations $ 3,954,431 $ 6,715,953 $ 10,670,384 Interest income $ 551,265 $ 26,482 $ 577,747 Interest expense $ 1,199,618 $ 282,190 $ 1,481,808 Depreciation and amortization $ 515,773 $ 2,946,355 $ 3,462,128 Income tax expense $ 946,118 $ 1,812,556 $ 2,758,674 Wholesale Retail Total Three months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 29,792,039 $ 45,934,959 $ 75,726,998 Income from operations $ 1,752,665 $ 3,106,385 $ 4,859,050 Interest income $ 192,845 $ 22,506 $ 215,351 Interest expense $ 522,669 $ 193,772 $ 716,441 Depreciation and amortization $ 254,784 $ 1,913,270 $ 2,168,054 Income tax expense $ 415,887 $ 962,940 $ 1,378,827 Three months ended June 30, 2014 Segment profit or loss: Net revenue from external customers $ 36,394,581 $ 49,273,199 $ 85,667,780 Income from operations $ 2,538,511 $ 4,869,200 $ 7,407,711 Interest income $ 324,638 $ 11,776 $ 336,414 Interest expense $ 633,051 $ 141,642 $ 774,693 Depreciation and amortization $ 251,227 $ 1,319,974 $ 1,571,201 Income tax expense $ 612,044 $ 1,267,708 $ 1,879,752 |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 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 June 30, 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. At December 31, 2014, the Company had an outstanding forward foreign exchange option contract 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 Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts from Customers 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 condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Schedule of inventories | June 30, 2015 December 31, Raw materials $ 3,031,159 $ 2,779,719 Work-in-progress 28,188,836 15,197,489 Finished goods 63,346,430 69,168,169 94,566,425 87,145,377 Less: allowance for obsolete inventories (16,743,450 ) (16,875,164 ) Total inventories $ 77,822,975 $ 70,270,213 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Bank Loans [Abstract] | |
Schedule of bank loans | Bank June 30, 2015 December 31, 2014 Nanjing Bank $ 14,103,540 $ 17,357,412 Industrial and Commercial Bank of China 13,056,000 11,375,000 HSBC 5,077,764 6,766,960 Bank of Communications 3,264,000 13,021,612 China Minsheng Banking 3,264,000 3,250,000 China Citic Bank 1,468,800 - Pin An Bank 683,363 3,867,605 Shanghai Pudong Development Bank - 3,250,000 Bank of China - 1,328,361 $ 40,917,467 $ 60,216,950 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax [Abstract] | |
Summary of pre-tax income in jurisdictions | Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 PRC $ 4,900,055 $ 7,439,468 $ 8,213,264 $ 10,713,481 BVI (982 ) (24,572 ) (90,999 ) (24,935 ) Others (2,500 ) (5,000 ) (5,000 ) (10,000 ) $ 4,896,573 $ 7,409,896 $ 8,117,265 $ 10,678,546 |
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment (0.3 ) - (0.7 ) - Effect of foreign income tax rates - 0.1 0.3 0.1 Other 3.5 0.3 2.6 0.7 Effective income tax rate 28.2 % 25.4 % 27.2 % 25.8 % |
Schedule of components of income tax expense | Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Current $ 1,245,118 $ 4,281,918 $ 2,184,402 $ 5,216,018 Deferred 133,709 (2,402,166 ) 19,562 (2,457,344 ) Income tax expense $ 1,378,827 $ 1,879,752 $ 2,203,964 $ 2,758,674 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Basic and diluted earnings per share | Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Weighted average number of common shares – Basic and diluted 14,784,094 14,781,241 14,784,094 14,781,241 Earnings per share – Basic and diluted $ 0.24 $ 0.37 $ 0.41 $ 0.54 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Summary of other expenses due to related parties | Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Jiangsu Ever-Glory $ 12,819 $ 12,733 $ 25,575 $ 25,560 Kunshan Enjin 12,201 10,491 24,342 21,060 Total $ 25,020 $ 23,224 $ 49,917 $ 46,620 |
Summary of sub-contracts with related parties | Three Months Ended Six Months Ended 2015 2014 2015 2014 Chuzhou huarui $ 1,461,299 $ - $ 2,492,911 $ - Fengyang huarui 327,129 - 735,835 - Nanjing Ever-Kyowa 313,883 426,451 586,583 861,970 Ever-Glory Vietnam 3,852,460 1,776,620 4,887,750 4,964,884 Ever-Glory Cambodia 68,228 696,136 372,061 2,957,190 EsCeLav - - 2,009 - Shanghai Weiwen - 1,502,785 - 1,502,785 Shanghai Sea to Sky 158 377,793 258,741 377,793 Jiangsu Ever-Glory 25,576 - 25,911 25,284 $ 6,048,733 $ 4,779,785 $ 9,361,801 $ 10,689,906 |
Summary of accounts payable - related parties | June 30, 2015 December 31, Fengyang huarui $ - 622,060 Ever-Glory Vietnam 2,024,905 1,883,556 Nanjing Ever-Kyowa 552,521 479,032 Chuzhou huarui 455,300 414,583 Nanjing Knitting 150,685 199,766 JiangsuWubijia 5,877 5,460 Kunshan Enjin 4,065 - Ever-Glory Cambodia - 291,121 Total $ 3,193,353 $ 3,895,578 |
Summary of amounts due from related party | June 30, 2015 December 31, 2014 Nanjing Eight-One-Five Hi-tech (M&E) Co., Ltd. $ 20,647 $ 20,558 Ever-Glory Cambodia 958,957 - EsCeLav 9,114 - Fengyang huarui 53,895 - Sea to sky - 48,750 Jiangsu Ever-Glory 325,384 1,582,679 Total $ 1,367,997 $ 1,651,987 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Concentrations and Risks [Abstract] | |
Company's revenues as per geographic areas | Three months ended Six months ended 2015 2014 2015 2014 The People’s Republic of China $ 9,373,554 $ 12,929,219 $ 28,307,488 $ 27,527,244 Germany 2,780,201 5,525,792 7,267,170 11,823,952 United Kingdom 3,828,237 9,018,214 6,980,716 11,642,361 Europe-Other 6,897,024 2,061,398 8,698,730 8,517,320 Japan 2,933,661 2,431,821 5,863,864 8,674,713 United States 3,979,362 4,428,137 5,947,997 7,650,480 Total wholesale business 29,792,039 36,394,581 63,065,965 75,836,070 Retail business 45,934,959 49,273,199 110,563,995 115,846,879 Total $ 75,726,998 $ 85,667,780 $ 173,629,960 $ 191,682,949 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segments [Abstract] | |
Company's financial and operating information | Wholesale Retail Total Six months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 63,065,965 $ 110,563,995 $ 173,629,960 Income from operations $ 3,584,692 $ 4,713,408 $ 8,298,100 Interest income $ 501,180 $ 37,575 $ 538,755 Interest expense $ 1,116,595 $ 375,692 $ 1,492,287 Depreciation and amortization $ 597,311 $ 4,080,914 $ 4,678,225 Income tax expense $ 870,963 $ 1,333,001 $ 2,203,964 Six months ended June 30, 2014 Segment profit or loss: Net revenue from external customers $ 75,836,070 $ 115,846,879 $ 191,682,949 Income from operations $ 3,954,431 $ 6,715,953 $ 10,670,384 Interest income $ 551,265 $ 26,482 $ 577,747 Interest expense $ 1,199,618 $ 282,190 $ 1,481,808 Depreciation and amortization $ 515,773 $ 2,946,355 $ 3,462,128 Income tax expense $ 946,118 $ 1,812,556 $ 2,758,674 Wholesale Retail Total Three months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 29,792,039 $ 45,934,959 $ 75,726,998 Income from operations $ 1,752,665 $ 3,106,385 $ 4,859,050 Interest income $ 192,845 $ 22,506 $ 215,351 Interest expense $ 522,669 $ 193,772 $ 716,441 Depreciation and amortization $ 254,784 $ 1,913,270 $ 2,168,054 Income tax expense $ 415,887 $ 962,940 $ 1,378,827 Three months ended June 30, 2014 Segment profit or loss: Net revenue from external customers $ 36,394,581 $ 49,273,199 $ 85,667,780 Income from operations $ 2,538,511 $ 4,869,200 $ 7,407,711 Interest income $ 324,638 $ 11,776 $ 336,414 Interest expense $ 633,051 $ 141,642 $ 774,693 Depreciation and amortization $ 251,227 $ 1,319,974 $ 1,571,201 Income tax expense $ 612,044 $ 1,267,708 $ 1,879,752 |
Summary of Business and Basis25
Summary of Business and Basis of Presentation (Details Textual) ¥ in Millions | Mar. 27, 2015USD ($) | Jun. 26, 2014USD ($) | Jun. 26, 2014CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Summary of Business and Basis of Presentation [Abstract] | ||||||||
Percentage of acquisition | 78.00% | 78.00% | ||||||
Cash paid to Shanghai La Go Go | $ 750,000 | ¥ 4.6 | ||||||
Cash paid to Shanghai Yiduo | $ 80,000 | |||||||
Intangible assets | $ 6,588,881 | $ 6,588,881 | $ 852,925 | $ 4,041,284 | ||||
Capital contribution | $ 1,062,800 | ¥ 6.5 | ||||||
Increase in intangible assets, and the non-controlling interest | $ 232,947 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of inventory | ||
Raw materials | $ 3,031,159 | $ 2,779,719 |
Work-in-progress | 28,188,836 | 15,197,489 |
Finished goods | 63,346,430 | 69,168,169 |
Inventory gross | 94,566,425 | 87,145,377 |
Less: Provision for obsolete inventories | (16,743,450) | (16,875,164) |
Total inventories | $ 77,822,975 | $ 70,270,213 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of bank loans | ||
Bank loans | $ 40,917,467 | $ 60,216,950 |
Nanjing Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 14,103,540 | 17,357,412 |
Industrial and Commercial Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | 13,056,000 | 11,375,000 |
HSBC [Member] | ||
Schedule of bank loans | ||
Bank loans | 5,077,764 | 6,766,960 |
Bank of Communications [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,264,000 | 13,021,612 |
China Minsheng Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,264,000 | $ 3,250,000 |
China Citic Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 1,468,800 | |
Ping An Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | $ 683,363 | $ 3,867,605 |
Shanghai Pudong Development Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,250,000 | |
Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | $ 1,328,361 |
Bank Loans (Details Textual)
Bank Loans (Details Textual) ¥ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Nov. 30, 2014USD ($) | Nov. 30, 2014CNY (¥) | Jul. 31, 2014USD ($) | Jul. 31, 2014CNY (¥) | Jun. 30, 2014CNY (¥) | Jan. 31, 2014USD ($) | Jan. 31, 2014CNY (¥) | Nov. 30, 2013USD ($) | Nov. 30, 2013CNY (¥) | Jul. 31, 2013USD ($) | Jul. 31, 2013CNY (¥) | Jul. 31, 2011USD ($) | |
Bank Loans (Textual) | ||||||||||||||||||||
Total interest expense | $ 716,441 | $ 774,693 | $ 1,492,287 | $ 1,481,808 | ||||||||||||||||
Nanjing Bank [Member] | Goldenway [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $ 8,160,000 | 3,260,000 | $ 8,160,000 | 3,260,000 | $ 8,160,000 | ¥ 20 | ¥ 50 | |||||||||||||
Revolving line of credit agreement, unused capacity | 4,900,000 | 4,900,000 | ||||||||||||||||||
Due date of additional borrowing | September 2,015 | |||||||||||||||||||
Line of credit interest rate on additional borrowing | 6.10% | |||||||||||||||||||
Nanjing Bank [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $ 9,790,000 | ¥ 60 | ||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 6,530,000 | 6,530,000 | 40 | |||||||||||||||||
Revolving line of credit agreement, borrowed | 1,860,000 | $ 1,860,000 | ||||||||||||||||||
Due date of revolving line of credit agreement | August to December 2015 | |||||||||||||||||||
Revolving line of credit agreement, unused capacity | 1,400,000 | $ 1,400,000 | ||||||||||||||||||
Due date of additional borrowing | July to August 2015 | |||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 2,450,000 | |||||||||||||||||||
Nanjing Bank [Member] | Ever Glory Apparel [Member] | Minimum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.50% | |||||||||||||||||||
Line of credit interest rate on additional borrowing | 1.70% | |||||||||||||||||||
Nanjing Bank [Member] | Ever Glory Apparel [Member] | Maximum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 6.40% | |||||||||||||||||||
Line of credit interest rate on additional borrowing | 2.10% | |||||||||||||||||||
Nanjing Bank [Member] | La Go Go [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 2,450,000 | $ 2,450,000 | 15 | $ 3,260,000 | ¥ 20 | |||||||||||||||
Revolving line of credit agreement, unused capacity | 810,000 | $ 810,000 | 5 | |||||||||||||||||
Due date of additional borrowing | August 2015 to January 2016 | |||||||||||||||||||
Nanjing Bank [Member] | La Go Go [Member] | Minimum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.90% | |||||||||||||||||||
Nanjing Bank [Member] | La Go Go [Member] | Maximum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 6.20% | |||||||||||||||||||
Shanghai Pudong Development Bank [Member] | Goldenway [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $ 3,260,000 | ¥ 20 | ||||||||||||||||||
Revolving line of credit agreement, borrowed | 3,260,000 | $ 3,260,000 | ||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 6,530,000 | $ 6,530,000 | 40 | $ 9,790,000 | ¥ 60 | |||||||||||||||
Due date of revolving line of credit agreement | November 2015 to February 2016 | |||||||||||||||||||
Revolving line of credit agreement, unused capacity | 3,260,000 | $ 3,260,000 | ||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | Minimum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.50% | |||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | Maximum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.80% | |||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 6,530,000 | $ 6,530,000 | 40 | 6,530,000 | 40 | |||||||||||||||
Due date of revolving line of credit agreement | October to December 2015 | |||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Ever Glory Apparel [Member] | Minimum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.10% | |||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Ever Glory Apparel [Member] | Maximum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.40% | |||||||||||||||||||
Bank of Communications [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $ 8,480,000 | ¥ 52 | ||||||||||||||||||
Revolving line of credit agreement, unused capacity | 8,480,000 | $ 8,480,000 | ||||||||||||||||||
Bank of Communications [Member] | La Go Go [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 3,260,000 | 3,260,000 | 20 | $ 5,390,000 | ¥ 33 | |||||||||||||||
Revolving line of credit agreement, unused capacity | 2,130,000 | $ 2,130,000 | ||||||||||||||||||
Bank of Communications [Member] | La Go Go [Member] | Minimum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 5.30% | |||||||||||||||||||
Due date of revolving line of credit agreement | August 2015 to June 2016 | |||||||||||||||||||
Bank of Communications [Member] | La Go Go [Member] | Maximum [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Effective interest rate during the period | 6.60% | |||||||||||||||||||
Bank of China [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | $ 5,700,000 | ¥ 35 | ||||||||||||||||||
Revolving line of credit agreement, unused capacity | 5,700,000 | $ 5,700,000 | ||||||||||||||||||
HSBC [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 5,920,000 | 5,920,000 | ||||||||||||||||||
HSBC [Member] | Ever-Glory Apparel and Perfect Dream [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 5,080,000 | $ 5,080,000 | $ 7,000,000 | |||||||||||||||||
Effective interest rate during the period | 5.88% | |||||||||||||||||||
Revolving line of credit agreement, unused capacity | 1,920,000 | $ 1,920,000 | ||||||||||||||||||
Revolving line of credit agreement, collateral amount | 6,680 | |||||||||||||||||||
China Minsheng Bank [Member] | La Go Go [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 3,260,000 | $ 3,260,000 | 20 | |||||||||||||||||
Effective interest rate during the period | 6.30% | |||||||||||||||||||
Due date of revolving line of credit agreement | August 2,015 | |||||||||||||||||||
Ping An Bank [Member] | Ever Glory Apparel [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 680,000 | $ 680,000 | ||||||||||||||||||
Effective interest rate during the period | 5.40% | |||||||||||||||||||
Due date of revolving line of credit agreement | July 2,015 | |||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 890,000 | |||||||||||||||||||
China Citic Bank [Member] | La Go Go [Member] | ||||||||||||||||||||
Bank Loans (Textual) | ||||||||||||||||||||
Revolving line of credit agreement, maximum borrowing capacity | 1,470,000 | $ 1,470,000 | ¥ 9 | $ 5,880,000 | ¥ 36 | |||||||||||||||
Effective interest rate during the period | 5.88% | |||||||||||||||||||
Due date of revolving line of credit agreement | December 2,015 | |||||||||||||||||||
Revolving line of credit agreement, unused capacity | $ 4,410,000 | $ 4,410,000 |
Derivatives Liability (Details)
Derivatives Liability (Details) - Oct. 31, 2014 - EUR (€) | Total |
Derivative Warrant Liability (Textual) | |
Derivative notional amount | € 60,000 |
Warrants expiration date | Mar. 31, 2015 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ 4,896,573 | $ 7,409,896 | $ 8,117,265 | $ 10,678,546 |
PRC [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | 4,900,055 | 7,439,468 | 8,213,264 | 10,713,481 |
BVI [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | (982) | (24,572) | (90,999) | (24,935) |
Others [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ (2,500) | $ (5,000) | $ (5,000) | $ (10,000) |
Income Tax (Details 1)
Income Tax (Details 1) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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% | 25.00% | 25.00% |
Preferential tax treatment | (0.30%) | (0.70%) | ||
Effect of foreign income tax rates | 0.10% | 0.30% | 0.10% | |
Other | 3.50% | 0.30% | 2.60% | 0.70% |
Effective income tax rate | 28.20% | 25.40% | 27.20% | 25.80% |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of Components of income tax expense | ||||
Current | $ 1,245,118 | $ 4,281,918 | $ 2,184,402 | $ 5,216,018 |
Deferred | 133,709 | (2,402,166) | 2,861 | (2,409,053) |
Income tax expense | $ 1,378,827 | $ 1,879,752 | $ 2,203,964 | $ 2,758,674 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | |
Income Tax (Textual) | |||||
PRC statutory rate | 15.00% | ||||
Tax liability | $ 3,186,000 | ||||
Tax Expiration | Dec. 31, 2017 | ||||
Income Taxes Paid, Net | $ 346,421 | ||||
U.S. deferred income taxes | $ 73,653,615 | ||||
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% | 25.00% | 25.00% | |
Tax liability | $ 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) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic and diluted earnings per share | ||||
Weighted average number of common shares- Basic and diluted | 14,784,094 | 14,781,241 | 14,784,094 | 14,781,241 |
Earnings per share - basic and diluted | $ 0.24 | $ 0.37 | $ 0.41 | $ 0.54 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Aug. 15, 2014 | Jul. 29, 2015 |
Three Independent Directors [Member] | ||
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | 2,055 | 854 |
Common stock issued at five days average market price | $ 4.91 | $ 5.91 |
Number of days used to calculation average market price of common stock | Five days before the grant date. | Five days before the grant date. |
Two Independence Directors [Member] | ||
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | 798 | 920 |
Common stock issued at five days average market price | $ 6.22 | $ 5.39 |
Number of days used to calculation average market price of common stock | Five days before the grant date. | Five days before the grant date. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of other expenses due to related parties | ||||
Total | $ 25,020 | $ 23,224 | $ 49,917 | $ 46,620 |
Jiangsu Ever-Glory [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 12,819 | 12,733 | 25,575 | 25,560 |
Kunshan Enjin [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | $ 12,201 | $ 10,491 | $ 24,342 | $ 21,060 |
Related Party Transactions (D37
Related Party Transactions (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of sub-contracts with related parties | ||||
Total | $ 6,048,733 | $ 4,779,785 | $ 9,361,801 | $ 10,689,906 |
Chuzhou Huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 1,461,299 | 2,492,911 | ||
Fengyang Huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 327,129 | 735,835 | ||
Nanjing Ever-Kyowa [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 313,883 | $ 426,451 | 586,583 | $ 861,970 |
Ever-Glory Vietnam [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 3,852,460 | 1,776,620 | 4,887,750 | 4,964,884 |
Ever-Glory Cambodia [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 68,228 | $ 696,136 | 372,061 | $ 2,957,190 |
EsC'eLav [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 2,009 | |||
Shanghai Weiwen [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 1,502,785 | $ 1,502,785 | ||
Shanghai Sea to Sky [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 158 | $ 377,793 | $ 258,741 | 377,793 |
Jiangsu Ever-Glory [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 25,576 | $ 25,911 | $ 25,284 |
Related Party Transactions (D38
Related Party Transactions (Details 2) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of accounts payable - related parties | ||
Total | $ 3,193,353 | $ 3,895,578 |
Fengyang Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 622,060 | |
Ever-Glory Vietnam [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 2,024,905 | 1,883,556 |
Nanjing Ever-Kyowa [Member] | ||
Summary of accounts payable - related parties | ||
Total | 552,521 | 479,032 |
Chuzhou Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 455,300 | 414,583 |
Nanjing Knitting [Member] | ||
Summary of accounts payable - related parties | ||
Total | 150,685 | 199,766 |
Jiangsu Wubijia [Member] | ||
Summary of accounts payable - related parties | ||
Total | 5,877 | $ 5,460 |
Kunshan Enjin [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 4,065 | |
Ever-Glory Cambodia [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 291,121 |
Related Party Transactions (D39
Related Party Transactions (Details 3) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of amounts due from related parties | ||
Amounts due from related parties | $ 1,367,997 | $ 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 | 20,647 | $ 20,558 |
Ever Glory Cambodia [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | 958,957 | |
EsC'eLav [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | 9,114 | |
Fengyang Huarui [Member] | ||
Summary of amounts due from related parties | ||
Amounts due from related parties | $ 53,895 | |
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 | $ 325,384 | $ 1,582,679 |
Related Party Transactions (D40
Related Party Transactions (Details Textual) ¥ in Millions | Mar. 31, 2012 | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2014USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Mar. 31, 2014USD ($) |
Related Party Transactions (Textual) | |||||||||||
Amounts due from related party | $ 19,424,342 | $ 18,341,688 | $ 18,341,688 | ||||||||
Accounts payable and other payables - related parties | 3,895,578 | 3,193,353 | 3,193,353 | ||||||||
Sub-contracts with related parties | 6,048,733 | $ 4,779,785 | 9,361,801 | $ 10,689,906 | |||||||
Company sold raw materials | $ 3,026,053 | 0 | |||||||||
Interest income received from related party | (1,302,400) | ||||||||||
Net (loss) profit | 3,517,746 | $ 5,530,144 | $ 5,913,301 | 7,919,872 | |||||||
Amounts due from related parties | 1,651,987 | 1,367,997 | $ 1,367,997 | ||||||||
Ever-Glory Enterprises [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Acquired interest | 83.00% | 83.00% | |||||||||
Repayment received under counter guarantee | $ 2,450,000 | ¥ 15 | |||||||||
Jiangsu Ever-Glory [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Purchase of raw material | 0 | 3,026,053 | |||||||||
Sub-contracts with related parties | $ 25,576 | 25,911 | 25,284 | ||||||||
Company sold raw materials | 25,911 | 19,221 | |||||||||
Guaranty on lines of credit | 40,620,000 | ¥ 250 | $ 38,190,000 | ¥ 234 | |||||||
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 | 0.41% | 0.50% | 0.50% | ||||||||
Interest income received from related party | $ 200,000 | $ 300,000 | $ 500,000 | 500,000 | |||||||
Amount of Guarantee reduced | 15,800,000 | ¥ 96.8 | |||||||||
Currency exchange adjustment | 70,000 | ||||||||||
Accrued interest | 2,540,000 | ||||||||||
Counter guaranty provided by parent company on lines of credit | 17,360,000 | 820,000 | $ 820,000 | ¥ 5 | ¥ 107 | ||||||
Percentage of reduced guarantee | 41.40% | 41.40% | |||||||||
Value of equity redemption | 18,340,000 | $ 18,340,000 | $ 19,420,000 | ||||||||
Amounts due from related parties | 1,582,679 | 325,384 | 325,384 | ||||||||
Nanjing Knitting [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Purchase of raw material | 506,904 | 450,620 | 884,070 | 685,843 | |||||||
Line of credit facility, collateral amount | 22,300,000 | ¥ 136 | 10,000,000 | ¥ 61 | |||||||
Amounts due from related parties | 20,558 | $ 20,647 | 20,647 | ||||||||
Edward Yihua Kang [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Guaranty on lines of credit | $ 41,400,000 | ¥ 254 | |||||||||
Shanghai Weiwen [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Sub-contracts with related parties | 1,502,785 | 1,502,785 | |||||||||
Shanghai Sea to Sky [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Sub-contracts with related parties | $ 158 | 377,793 | $ 258,741 | 377,793 | |||||||
Jiangsu Wubijia [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Accounts payable and other payables - related parties | 5,460 | 5,877 | 5,877 | ||||||||
Other Income | 2,026 | 9,786 | |||||||||
Consignment received | 2,480 | 9,100 | |||||||||
Net (loss) profit | $ (454) | $ 686 | |||||||||
Ever Glory Cambodia [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Accounts payable and other payables - related parties | $ 291,121 | ||||||||||
Sub-contracts with related parties | $ 68,228 | $ 696,136 | $ 372,061 | $ 2,957,190 | |||||||
Amounts due from related parties | $ 958,957 | $ 958,957 | |||||||||
Fengyang Huarui [Member] | |||||||||||
Related Party Transactions (Textual) | |||||||||||
Accounts payable and other payables - related parties | $ 622,060 | ||||||||||
Sub-contracts with related parties | $ 327,129 | $ 735,835 | |||||||||
Amounts due from related parties | $ 53,895 | $ 53,895 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Company's revenues as per geographic areas | ||||
Net revenue | $ 75,726,998 | $ 85,667,780 | $ 173,629,960 | $ 191,682,949 |
Wholesale Business [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 29,792,039 | 36,394,581 | 63,065,965 | 75,836,070 |
Retail business [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 45,934,959 | 49,273,199 | 110,563,995 | 115,846,879 |
The People's Republic of China [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 9,373,554 | 12,929,219 | 28,307,488 | 27,527,244 |
Germany [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 2,780,201 | 5,525,792 | 7,267,170 | 11,823,952 |
United Kingdom [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 3,828,237 | 9,018,214 | 6,980,716 | 11,642,361 |
Europe-Other [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 6,897,024 | 2,061,398 | 8,698,730 | 8,517,320 |
Japan [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | 2,933,661 | 2,431,821 | 5,863,864 | 8,674,713 |
United States [Member] | ||||
Company's revenues as per geographic areas | ||||
Net revenue | $ 3,979,362 | $ 4,428,137 | $ 5,947,997 | $ 7,650,480 |
Concentrations and Risks (Det42
Concentrations and Risks (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Customer | Jun. 30, 2014Customer | Jun. 30, 2015USD ($)Customer | Jun. 30, 2014Customer | Dec. 31, 2014USD ($) | |
Concentrations and Risks (Textual) | |||||
Allowance for doubtful accounts | $ | $ 1,651,961 | $ 1,651,961 | $ 1,787,282 | ||
Wholesale Business [Member] | Raw Materials [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer One [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration Risk, Percentage | 35.00% | 15.00% | 23.00% | 16.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer Two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration Risk, Percentage | 13.00% | 14.00% | 12.00% | 10.00% | |
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 | 1 | 1 | 2 | 2 | |
Concentration Risk, Percentage | 10.00% | 15.00% | 13.00% | 14.00% | |
Wholesale Business [Member] | Revenues [Member] | Customer Two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Number of wholesale customer | 2 | 2 | |||
Concentration Risk, Percentage | 11.00% | 15.00% | |||
Retail Business [Member] | Raw Materials [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Retail Business [Member] | Finished Goods [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration Risk, Percentage | 11.00% | 11.00% | 10.00% | 10.00% |
Segments (Details)
Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of segment profit or loss: | ||||
Net revenue from external customers | $ 75,726,998 | $ 85,667,780 | $ 173,629,960 | $ 191,682,949 |
Income from operations | 4,859,050 | 7,407,711 | 8,298,100 | 10,670,384 |
Interest income | 215,351 | 336,414 | 538,755 | 577,747 |
Interest expense | 716,441 | 774,693 | 1,492,287 | 1,481,808 |
Depreciation and amortization | 2,168,054 | 1,571,201 | 4,678,225 | 3,462,128 |
Income tax expense | 1,378,827 | 1,879,752 | 2,203,964 | 2,758,674 |
Wholesale segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 29,792,039 | 36,394,581 | 63,065,965 | 75,836,070 |
Income from operations | 1,752,665 | 2,538,511 | 3,584,692 | 3,954,431 |
Interest income | 192,845 | 324,638 | 501,180 | 551,265 |
Interest expense | 522,669 | 633,051 | 1,116,595 | 1,199,618 |
Depreciation and amortization | 254,784 | 251,227 | 597,311 | 515,773 |
Income tax expense | 415,887 | 612,044 | 870,963 | 946,118 |
Retail segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 45,934,959 | 49,273,199 | 110,563,995 | 115,846,879 |
Income from operations | 3,106,385 | 4,869,200 | 4,713,408 | 6,715,953 |
Interest income | 22,506 | 11,776 | 37,575 | 26,482 |
Interest expense | 193,772 | 141,642 | 375,692 | 282,190 |
Depreciation and amortization | 1,913,270 | 1,319,974 | 4,080,914 | 2,946,355 |
Income tax expense | $ 962,940 | $ 1,267,708 | $ 1,333,001 | $ 1,812,556 |