Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 11, 2016 | |
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, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,787,940 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 27,475 | $ 22,702 |
Accounts receivable | 62,233 | 87,527 |
Inventories | 62,720 | 75,063 |
Value added tax receivable | 5,215 | 2,736 |
Other receivables and prepaid expenses | 4,899 | 3,840 |
Advances on inventory purchases | 3,658 | 6,193 |
Amounts due from related parties | 1,054 | 2,535 |
Total Current Assets | 167,254 | 200,596 |
INTANGIBLE ASSETS | 6,041 | 6,217 |
PROPERTY AND EQUIPMENT, NET | 23,791 | 21,906 |
TOTAL ASSETS | 197,086 | 228,719 |
CURRENT LIABILITIES | ||
Bank loans | 43,675 | 44,841 |
Accounts payable | 44,240 | 66,118 |
Accounts payable and other payables - related parties | 2,530 | 2,823 |
Other payables and accrued liabilities | 16,949 | 22,221 |
Value added and other taxes payable | 4,317 | 6,882 |
Income tax payable | 1,701 | 4,052 |
Total Current Liabilities | 113,412 | 146,937 |
NONCURRENT LIABILITIES | ||
Deferred tax liabilities | 2,910 | 2,992 |
TOTAL LIABILITIES | 116,322 | 149,929 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' equity: | ||
Preferred stock ($.001 par value, authorized 5,000,000 shares, no shares issued and outstanding) | ||
Common stock ($.001 par value, authorized 50,000,000 shares, 14,787,940 and 14,785,868 shares issued and outstanding As of June 30, 2016 and December 31, 2015, respectively) | 15 | 15 |
Additional paid-in capital | 3,602 | 3,597 |
Retained earnings | 81,223 | 78,439 |
Statutory reserve | 15,327 | 15,327 |
Accumulated other comprehensive income | 853 | 3,249 |
Amounts due from related party | (19,967) | (21,776) |
Total equity attributable to stockholders of the Company | 81,053 | 78,851 |
Noncontrolling interest | (289) | (61) |
Total Equity | 80,764 | 78,790 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 197,086 | $ 228,719 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 14,787,940 | 14,785,868 |
Common stock, shares outstanding | 14,787,940 | 14,785,868 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
NET SALES | $ 80,676 | $ 75,727 | $ 172,369 | $ 173,630 |
COST OF SALES | 53,961 | 45,679 | 117,311 | 112,974 |
GROSS PROFIT | 26,715 | 30,048 | 55,058 | 60,656 |
OPERATING EXPENSES | ||||
Selling expenses | 16,043 | 17,583 | 36,956 | 37,838 |
General and administrative expenses | 7,316 | 7,606 | 14,265 | 14,520 |
Total Operating Expenses | 23,359 | 25,189 | 51,221 | 52,358 |
INCOME FROM OPERATIONS | 3,356 | 4,859 | 3,837 | 8,298 |
OTHER INCOME (EXPENSES) | ||||
Interest income | 237 | 215 | 621 | 539 |
Interest expense | (334) | (716) | (931) | (1,492) |
Other income | 621 | 539 | 687 | 772 |
Total Other Income (Expenses) | 524 | 38 | 377 | (181) |
INCOME BEFORE INCOME TAX EXPENSE | 3,880 | 4,897 | 4,214 | 8,117 |
Income tax expense | (828) | (1,379) | (1,662) | (2,204) |
NET INCOME | 3,052 | 3,518 | 2,552 | 5,913 |
Net loss attributable to the non-controlling interest | 93 | 80 | 233 | 81 |
NET INCOME ATTRIBUTABLE TO THE COMPANY | 3,145 | 3,598 | 2,785 | 5,994 |
NET INCOME | 3,052 | 3,518 | 2,552 | 5,913 |
Foreign currency translation (loss) gain | (3,178) | (127) | (2,396) | 329 |
COMPREHENSIVE INCOME | (126) | 3,391 | 156 | 6,242 |
Comprehensive loss attributable to the non-controlling interest | 85 | 80 | 228 | 81 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ (41) | $ 3,471 | $ 384 | $ 6,323 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | ||||
Basic and diluted | $ 0.21 | $ 0.24 | $ 0.19 | $ 0.41 |
Weighted average number of shares outstanding | ||||
Weighted average number of shares outstanding Basic and diluted | 14,787,302 | 14,784,094 | 14,786,589 | 14,784,094 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,552 | $ 5,913 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 3,331 | 4,678 |
Recovering for doubtful accounts | (143) | |
Provision for obsolete inventories | 7,111 | |
Deferred income tax | (14) | 3 |
Stock-based compensation | 5 | |
Changes in operating assets and liabilities | ||
Accounts receivable | 23,903 | 34,101 |
Inventories | 3,901 | (7,266) |
Value added tax receivable | (2,583) | (1,333) |
Other receivables and prepaid expenses | (1,166) | 865 |
Advances on inventory purchases | 2,434 | 1,055 |
Amounts due from related parties | 1,092 | 186 |
Accounts payable | (20,847) | (13,416) |
Accounts payable and other payables- related parties | (275) | (1,074) |
Other payables and accrued liabilities | (4,852) | (1,987) |
Value added and other taxes payable | (2,448) | (779) |
Income tax payable | (2,297) | (1,099) |
Net cash provided by operating activities | 9,847 | 19,704 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (5,692) | (5,438) |
Proceeds from sale of property and equipment | 4 | |
Purchase of intangible assets | (1,732) | |
Acquisition of Yiduo net of cash acquired | (457) | |
Net cash (used in) investing activities | (5,692) | (7,623) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 48,295 | 52,715 |
Repayment of bank loans | (48,521) | (72,217) |
Repayment of loans from related party | 1,836 | 2,444 |
Advances to related party | (815) | |
Net cash provided by (used in) financing activities | 1,610 | (17,873) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (992) | (91) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,773 | (5,883) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 22,702 | 34,134 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 27,475 | 28,251 |
Cash paid during the period for: | ||
Interest | 931 | 1,492 |
Income taxes | 4,442 | 3,301 |
SUPPLEMENTAL INFORMATION OF NONCASH INVESTING ACTIVITIES | ||
Increase in intangible assets and non-controlling interests | $ 233 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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”). 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, 2016, the condensed consolidated statements of income and comprehensive income (loss), and cash flows for the three and six months ended June 30, 2016 and 2015. 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 and six months ended June 30, 2016 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, 2015. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016, 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 June 30, 2016, 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 income and comprehensive income (loss) 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 Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory. In September 2015, FASB issued ASU No. 2015-16 Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In February 2016, the FASB issued ASU No. 2016-02, Leases 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 | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Inventories | NOTE 3 INVENTORIES Inventories at June 30, 2016 and December 31, 2015 consisted of the following: June 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 1,886 $ 2,819 Work-in-progress 22,877 22,090 Finished goods 57,089 69,692 81,852 94,601 Less: allowance for obsolete inventories (19,132 ) (19,538 ) Total inventories $ 62,720 $ 75,063 |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015. June 30, December 31, Bank (In thousands of U.S. Dollars) Industrial and Commercial Bank of China $ 17,759 $ 16,940 Nanjing Bank 7,901 13,951 China Everbright Bank 4,272 3,121 HSBC 3,737 3,129 Bank of Communications 3,010 3,080 China Minsheng Banking 3,010 3,080 Bank of China 2,631 - China Citic Bank 1,355 - Pin An Bank - 1,540 $ 43,675 $ 44,841 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 $9.0 million (RMB60.0 million). These loans are collateralized by the Company’s property and equipment. As of June 30, 2016, Goldenway had borrowed $6.0 million (RMB40.0 million) under this line of credit with annual interest rates ranging from 4.4% - 4.5% and due on various dates from September to October 2016. As of June 30, 2016, approximately $3.0 million was unused and available under this line of credit. In September 2015, Ever-Glory Apparel entered into a line of credit agreement for approximately $18.1 million (RMB120.0 million) with Industrial and Commercial Bank of China and collateralized by assets of Jiangsu Ever-Glory’s equity investee, Nanjing Knitting, under a collateral agreement executed among Ever-Glory Apparel, Nanjing Knitting and the bank. As of June 30, 2016, Ever-Glory Apparel had borrowed $11.7 million (RMB 78.0 million) under this line of credit with annual interest rate at 4.4% and due on various dates from July to December 2016. As of June 30, 2016, approximately $6.4 million was unused and available under this line of credit. In June 2016, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.5 million (RMB50.0 million). These loans are guaranteed by Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment. As of June 30, 2016, approximately $7.5 million was unused and available under this line of credit. In June 2015, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.0 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of June 30, 2016, Ever-Glory Apparel had borrowed $3.0 million (RMB20.0 million) under this line of credit with annual interest rate of 5.0% and due on various dates from July to September 2016. Ever-Glory Apparel had also borrowed $2.6 million from Nanjing Bank with an annual interest rates ranging from 3.5% to 4.0% and due in October 2016, and collateralized by approximately $3.0 million of accounts receivable from our wholesale customers. As of June 30, 2016, approximately $3.4 million was unused and available under this line of credit. In October 2015, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.0 million (RMB20.0 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of June 30, 2016, LA GO GO had borrowed $2.3 million (RMB15.0 million) under this line of credit with an annual interest rate of 5.0% and due in January 2017. As of June 30, 2016, approximately $0.7 million (RMB5.0 million) was unused and available under this line of credit. In July 2015, Ever-Glory Apparel entered into a line of credit agreement for approximately $6.0 million (RMB40.0 million) with China Everbright Bank and guaranteed by Goldenway and Mr. Kang. These loans are also collateralized by Jiangsu Ever-Glory’s property. As of June 30, 2016, Ever-Glory Apparel had borrowed $4.3 million under this line of credit with annual interest rates ranging from 2.8% - 3.8% and due on various dates from July to November 2016, and collateralized by approximately $5.2 million of accounts receivable from wholesale customers. As of June 30, 2016, approximately $1.7 million was unused and available under this line of credit. In January 2015, Ever-Glory Apparel and Goldenway 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 $12.6 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, 2016, Ever-Glory Apparel had borrowed $3.7 million from HSBC with an annual interest rates ranging from 1.1% - 3.0% and due in July 2016, and collateralized by approximately $4.3 million of accounts receivable from our wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of June 30, 2016, approximately $8.9 million was unused and available under this line of credit. In June 2014, LA GO GO entered into a line of credit agreement for approximately $5.0 million (RMB33.0 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 2016, LA GO GO had borrowed $3.0 million (RMB20.0 million) from the Bank of Communications with annual interest rates ranging from 5.0% - 5.3% and due on various dates from August to November 2016. As of June 30, 2016, approximately $2.0 million was unused and available under this line of credit. In December 2015, LA GO GO entered into a line of credit agreement for approximately $3.0 million (RMB20.0 million) with China Minsheng Banking and guaranteed by Ever-Glory Apparel and Mr. Kang. As of June 30, 2016, LA GO GO had borrowed $3.0 million (RMB20.0 million) from China Minsheng Banking with an annual interest rate of 4.6% and due in December 2016. In March 2016, Ever-Glory Apparel entered into a line of credit agreement for approximately $3.8 million (RMB25.0 million) with Bank of China and guaranteed by Jiangsu Ever-Glory and Mr. Kang. These loans are also collateralized by assets of Jiangsu Ever-Glory’s equity investee, Chuzhou Huarui, under a collateral agreement executed by Ever-Glory Apparel, Chuzhou Huarui and Bank of China. As of June 30, 2016, Ever-Glory Apparel had borrowed $1.5 million (RMB10.0 million) under this line of credit with annual interest rate at 4.8% and due in October 2016, Ever-Glory Apparel had borrowed $1.1 million from Bank of China with an annual interest rate at 2.5% and due in August 2016, and collateralized by approximately $1.4 million of accounts receivable from our wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of June 30, 2016, approximately $1.2 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 $5.4 million (RMB36.0 million) with the China Citic Bank and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 2016, LA GO GO had borrowed $1.4 million (RMB9.0 million) from the Bank of Communications with annual interest rate at 4.6% and due on December 2016. As of June 30, 2016, approximately $4.0 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 $0.3 million, $0.9 million, $0.7 million and $1.5 million for the three and six months ended June 30, 2016 and 2015, respectively. |
Derivative Liability
Derivative Liability | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Liability [Abstract] | |
DERIVATIVE LIABILITY | NOTE 5 DERIVATIVE LIABILITY As of June 30, 2016, the Company had three outstanding forward foreign exchange contracts (sell US dollars for RMB), with total notional amount of $9.5 million, and one outstanding forward foreign exchange contract (sell EUR dollars for RMB), with total notional amount of EUR0.65 million. As of December 31, 2015, the Company had four outstanding forward foreign exchange contracts (sell US dollars for RMB), with total notional amount of $11.1 million. The fair value of these contracts as of June 30, 2016 and December 31, 2015, as well as realized losses on these foreign currency derivative activities during 2015 and the six months ended June 30, 2016 were not significant. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2016 | |
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 U.S. 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 its 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 $3.2 million 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 $3.2 million should be made by the Company prospectively over the next two to three years period. Approximately $2.3 million has been paid as of June 30, 2016. 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 and six months ended June 30, 2016 and 2015 was taxable in the following jurisdictions: Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 (In thousands of U.S. Dollars) PRC $ 3,884 $ 4,900 $ 4,218 $ 8,213 BVI (1 ) (1 ) 1 (91 ) Others (3 ) (2 ) (5 ) (5 ) $ 3,880 $ 4,897 $ 4,214 $ 8,117 The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and six months ended June 30, 2016 and 2015: Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment - (0.3 ) - (0.7 ) Effect of foreign income tax rates - - - 0.3 Net operating losses for which no deferred tax assets was recognized - - 14.4 - Other (3.7 ) 3.5 - 2.6 Effective income tax rate 21.3 % 28.2 % 39.4 % 27.2 % Income tax expense for the three and six months ended June 30, 2016 and 2015 is as follows: Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Current $ 640 $ 1,245 $ 1,744 $ 2,184 Deferred 188 134 (82 ) 20 Income tax expense $ 828 $ 1,379 $ 1,662 $ 2,204 The Company has not recorded U.S. deferred income taxes on approximately $81.2 million 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, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 7 EARNINGS PER SHARE The following demonstrates the calculation for earnings per share for the three and six months ended June 30, 2016 and 2015: Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Weighted average number of common shares – Basic and diluted 14,787,302 14,784,094 14,786,589 14,784,094 Earnings per share – Basic and diluted $ 0.21 $ 0.24 $ 0.19 $ 0.41 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 STOCKHOLDERS’ EQUITY 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. On April 29, 2016, the Company issued an aggregate of 2,072 shares of its common stock to two of the Company’s independent directors as compensation for their services in the third and fourth quarters of 2015. The shares were valued at $2.43 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, 2016 | |
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 Jiangsu Wubijia Trading Company Limited (“Wubijia”) is an entity engaged in high-grade home goods sales and is controlled by Mr. Kang. Wubijia has sold their home goods on consignment in certain Company’s retail stores since the third quarter of 2014. During the three and six months ended June 30, 2016 and 2015, the Company received $4,720, $11,255, $2,026 and $9,786 from the customers and paid $5,675, $10,285, $2,480 and $9,100 to Wubijia through the consignment, respectively. The net (loss) profit of ($955), $970, ($454) and $686 was recorded as other income (expenses) during the three and six months ended June 30, 2016 and 2015, respectively. Nanjing Knitting Company Limited (“Nanjing Knitting”) is an entity engaged in knitted fabric products and knitting underwear sales and is controlled by Mr. Kang. Nanjing Knitting has sold their knitting underwear on consignment in some Company’s retail stores since the third quarter of 2015. During the three and six months ended June 30, 2016, the Company received $70,456 and $100,839 from the customers and paid $60,490 and $85,446 to Nanjing Knitting through the consignment, respectively. The net profit of $9,966 and $15,393 was recorded as other income during the three and six months ended June 30, 2016. Included in other income for the three and six months ended June 30, 2016 and 2015 is rent income from EsC’Lav, the entity controlled by Mr. Kang under operating lease agreement with term though 2016. The rent income is $16,647, $32,433, $17,596 and $35,105 for the three and six months ended June 30, 2016 and 2015, respectively. Other expenses due to Related Parties Included in other expenses for the three and six months ended June 30, 2016 and 2015 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, 2016 2015 2016 2015 In thousands of U.S. Dollars) Jiangsu Ever-Glory $ 12 $ 13 $ 24 $ 26 Chuzhou Huarui 57 61 114 122 Kunshan Enjin 11 12 22 24 Total $ 80 $ 86 $ 160 $ 172 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 Chuzhou Huarui and Kunshan Enjin's warehouse spaces because the locations are convenient for transportation and distribution. Purchases from and Sub-contracts with Related Parties The Company purchased raw materials from Nanjing Knitting totaling $0.14 million, $0.34 million, $0.51 million and $0.69 million during the three and six months ended June 30, 2016 and 2015, respectively. In addition, Sub-contracts with related parties included in cost of sales for the three and six months ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands of U.S. Dollars) Chuzhou huarui $ 1,370 $ 1,461 $ 3,694 $ 2,493 Fengyang huarui 299 327 502 736 Nanjing Ever-Kyowa 522 314 995 587 Ever-Glory Vietnam 3,018 3,852 5,057 4,888 Ever-Glory Cambodia 757 68 2,095 372 EsCeLav 5 - 5 2 Shanghai Sea to Sky - 1 - 259 Jiangsu Ever-Glory - 26 51 26 $ 5,971 $ 6,049 $ 12,399 $ 9,363 Accounts Payable – Related Parties The accounts payable to related parties at June 30, 2016 and December 31, 2015 are as follows: June 30, December 31, (In thousands of Ever-Glory Vietnam $ 1,109 2,003 Fengyang Huarui - 84 Nanjing Ever-Kyowa 685 561 Chuzhou Huarui 610 175 Nanjing Knitting 126 - Total $ 2,530 $ 2,823 Amounts Due From Related Parties-current assets The amounts due from related parties as of June30, 2016 and December 31, 2015 are as follows: Nanjing Knitting June 30, December 31, (In thousands of Jiangsu Ever-Glory $ 628 $ 2,412 - 106 Fengyang Huarui 257 - Ever-Glory Cambodia 109 15 EsC'eLav 60 2 Total $ 1,054 $ 2,535 As of June 30, 2016, the Company prepaid $0.26 million and $0.11 million to the sub-contractors, Fengyang Huarui and Ever-Glory Cambodia, 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 three and six months ended June 30, 2016 and 2015, 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 a cost of $1.9 million and $3.0 million during the six-month period ended June 30, 2016 and 2015, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at a cost of $0.3 million and $0.03 million during the six months ended June 30, 2016 and 2015, 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 more 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, 2016 and December 31, 2015, Jiangsu Ever-Glory has provided guarantees for approximately $54.8 million (RMB364 million) (2016) and $52.2 million (RMB339.0 million) (2015) of lines of credit obtained by the Company. Jiangsu Ever-Glory, Chuzhou Huarui 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 $31.0million (RMB206 million) (2016) and $22.8 million (RMB148.0 million) (2015) as of June 30, 2016 and December 31, 2015, respectively. Mr. Kang has also provided a personal guarantee for $40.1 million (RMB266.3 million). As of December 31, 2015, $18.8 million (RMB122.0 million) was outstanding due from Jiangsu Ever-Glory under the counter guarantee agreement. During the six months ended June 30, 2016, repayment of $1.84 million (RMB12 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of June 30, 2016, the amount of the counter-guarantee was $16.6 million (RMB110 million) (the difference represents currency exchange adjustment of $0.4 million), which was 27.8% of the aggregate amount of lines of credit. This amount plus accrued interest of $3.38 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2016 and 2015, the amount classified as a reduction of equity was $19.97 million and $21.78 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Since April 1, 2015, interest rate has changed to 0.41% as the bank benchmark interest rate decreased. Interest income for the three and six months ended June 30, 2016 and 2015 was approximately $0.2 million, $0.4 million , $0.2 million and $0.5 million, respectively. |
Concentrations and Risks
Concentrations and Risks | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and December 31, 2015 was $1.05 million and $2.18 million, 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, 2016, the Company had no wholesale customer that represented more than 10% of the Company’s revenues. For the three-month period ended June 30, 2016, the Company had two wholesale customers that represented approximately 12.4% and 10% of the Company’s revenues. 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 Company’s wholesale business during the three and six months ended June 30, 2016 and 2015, no supplier represented more than 10% of the total raw materials purchased. For the Company’s retail business, the Company had one supplier that represented 11.9% and 10.5% of raw materials purchases during the three and six months ended June 30, 2016. The Company had no supplier that represented more than 10% of raw materials purchases during the three and six months ended June 30, 2015. For the wholesale business, during the six months ended June 30, 2016, the Company relied on two manufacturers for 23.9% and 17.5% of purchased finished goods, respectively. 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. During the three months ended June 30, 2016, the Company relied on two manufacturers for 36.1% and 16.4% of purchased finished goods, respectively. During the three months ended June 30, 2015, the Company relied on two manufacturers for 35% and 13% 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, 2016 and 2015. The Company’s revenues for the three and six months ended June 30, 2016 and 2015 were earned in the following geographic areas: Three months ended Six months ended 2016 2015 2016 2015 (In thousands of U.S. Dollars) The People’s Republic of China $ 11,265 $ 9,374 $ 26,064 $ 28,307 Germany 790 2,780 2,243 7,267 United Kingdom 3,831 3,828 6,419 6,981 Europe-Other 12,821 6,897 18,275 8,699 Japan 1,807 2,934 6,619 5,864 United States 7,294 3,979 10,738 5,948 Total wholesale business 37,808 29,792 70,358 63,066 Retail business 42,868 45,935 102,011 110,564 Total $ 80,676 $ 75,727 $ 172,369 $ 173,630 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2016 | |
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 (In thousands of U.S. Dollars) Six months ended June 30, 2016 Segment profit or loss: Net revenue from external customers $ 70,358 102,011 172,369 Income from operations $ 3,449 388 3,837 Interest income $ 589 32 621 Interest expense $ 702 229 931 Depreciation and amortization $ 504 2,827 3,331 Income tax expense $ 842 820 1,662 Six months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 63,066 110,564 173,630 Income from operations $ 3,585 4,713 8,298 Interest income $ 501 38 539 Interest expense $ 1,116 376 1,492 Depreciation and amortization $ 597 4,081 4,678 Income tax expense $ 871 1,333 2,204 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2016 Segment profit or loss: Net revenue from external customers $ 37,808 42,868 80,676 Income from operations $ 1,644 1,712 3,356 Interest income $ 218 19 237 Interest expense $ 213 121 334 Depreciation and amortization $ 250 1,323 1,573 Income tax expense $ 417 411 828 Three months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 29,792 45,935 75,727 Income from operations $ 1,753 3,106 4,859 Interest income $ 193 22 215 Interest expense $ 522 194 716 Depreciation and amortization $ 255 1,913 2,168 Income tax expense $ 416 963 1,379 |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016, 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 June 30, 2016, 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 income and comprehensive income (loss) 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 Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory. In September 2015, FASB issued ASU No. 2015-16 Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments In February 2016, the FASB issued ASU No. 2016-02, Leases 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) | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Schedule of inventory | June 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 1,886 $ 2,819 Work-in-progress 22,877 22,090 Finished goods 57,089 69,692 81,852 94,601 Less: allowance for obsolete inventories (19,132 ) (19,538 ) Total inventories $ 62,720 $ 75,063 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Bank Loans [Abstract] | |
Schedule of bank loans | June 30, December 31, Bank (In thousands of U.S. Dollars) Industrial and Commercial Bank of China $ 17,759 $ 16,940 Nanjing Bank 7,901 13,951 China Everbright Bank 4,272 3,121 HSBC 3,737 3,129 Bank of Communications 3,010 3,080 China Minsheng Banking 3,010 3,080 Bank of China 2,631 - China Citic Bank 1,355 - Pin An Bank - 1,540 $ 43,675 $ 44,841 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax [Abstract] | |
Summary of pre-tax income in jurisdictions | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 (In thousands of U.S. Dollars) PRC $ 3,884 $ 4,900 $ 4,218 $ 8,213 BVI (1 ) (1 ) 1 (91 ) Others (3 ) (2 ) (5 ) (5 ) $ 3,880 $ 4,897 $ 4,214 $ 8,117 |
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment - (0.3 ) - (0.7 ) Effect of foreign income tax rates - - - 0.3 Net operating losses for which no deferred tax assets was recognized - - 14.4 - Other (3.7 ) 3.5 - 2.6 Effective income tax rate 21.3 % 28.2 % 39.4 % 27.2 % |
Schedule of components of income tax expense | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Current $ 640 $ 1,245 $ 1,744 $ 2,184 Deferred 188 134 (82 ) 20 Income tax expense $ 828 $ 1,379 $ 1,662 $ 2,204 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted earnings per share | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Weighted average number of common shares – Basic and diluted 14,787,302 14,784,094 14,786,589 14,784,094 Earnings per share – Basic and diluted $ 0.21 $ 0.24 $ 0.19 $ 0.41 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of other expenses due to related parties | Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 In thousands of U.S. Dollars) Jiangsu Ever-Glory $ 12 $ 13 $ 24 $ 26 Chuzhou Huarui 57 61 114 122 Kunshan Enjin 11 12 22 24 Total $ 80 $ 86 $ 160 $ 172 |
Summary of sub-contracts with related parties | Three Months Ended Six Months Ended 2016 2015 2016 2015 (In thousands of U.S. Dollars) Chuzhou huarui $ 1,370 $ 1,461 $ 3,694 $ 2,493 Fengyang huarui 299 327 502 736 Nanjing Ever-Kyowa 522 314 995 587 Ever-Glory Vietnam 3,018 3,852 5,057 4,888 Ever-Glory Cambodia 757 68 2,095 372 EsCeLav 5 - 5 2 Shanghai Sea to Sky - 1 - 259 Jiangsu Ever-Glory - 26 51 26 $ 5,971 $ 6,049 $ 12,399 $ 9,363 |
Summary of accounts payable - related parties | June 30, December 31, (In thousands of Ever-Glory Vietnam $ 1,109 2,003 Fengyang Huarui - 84 Nanjing Ever-Kyowa 685 561 Chuzhou Huarui 610 175 Nanjing Knitting 126 - Total $ 2,530 $ 2,823 |
Summary of amounts due from related party current assets | June 30, December 31, (In thousands of Jiangsu Ever-Glory $ 628 $ 2,412 Nanjing Knitting - 106 Fengyang Huarui 257 - Ever-Glory Cambodia 109 15 EsC'eLav 60 2 Total $ 1,054 $ 2,535 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Concentrations and Risks [Abstract] | |
Company's revenues as per geographic areas | Three months ended Six months ended 2016 2015 2016 2015 (In thousands of U.S. Dollars) The People’s Republic of China $ 11,265 $ 9,374 $ 26,064 $ 28,307 Germany 790 2,780 2,243 7,267 United Kingdom 3,831 3,828 6,419 6,981 Europe-Other 12,821 6,897 18,275 8,699 Japan 1,807 2,934 6,619 5,864 United States 7,294 3,979 10,738 5,948 Total wholesale business 37,808 29,792 70,358 63,066 Retail business 42,868 45,935 102,011 110,564 Total $ 80,676 $ 75,727 $ 172,369 $ 173,630 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segments [Abstract] | |
Summary of financial and operating information | Wholesale Retail Total (In thousands of U.S. Dollars) Six months ended June 30, 2016 Segment profit or loss: Net revenue from external customers $ 70,358 102,011 172,369 Income from operations $ 3,449 388 3,837 Interest income $ 589 32 621 Interest expense $ 702 229 931 Depreciation and amortization $ 504 2,827 3,331 Income tax expense $ 842 820 1,662 Six months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 63,066 110,564 173,630 Income from operations $ 3,585 4,713 8,298 Interest income $ 501 38 539 Interest expense $ 1,116 376 1,492 Depreciation and amortization $ 597 4,081 4,678 Income tax expense $ 871 1,333 2,204 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2016 Segment profit or loss: Net revenue from external customers $ 37,808 42,868 80,676 Income from operations $ 1,644 1,712 3,356 Interest income $ 218 19 237 Interest expense $ 213 121 334 Depreciation and amortization $ 250 1,323 1,573 Income tax expense $ 417 411 828 Three months ended June 30, 2015 Segment profit or loss: Net revenue from external customers $ 29,792 45,935 75,727 Income from operations $ 1,753 3,106 4,859 Interest income $ 193 22 215 Interest expense $ 522 194 716 Depreciation and amortization $ 255 1,913 2,168 Income tax expense $ 416 963 1,379 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of inventory | ||
Raw materials | $ 1,886 | $ 2,819 |
Work-in-progress | 22,877 | 22,090 |
Finished goods | 57,089 | 69,692 |
Inventory gross | 81,852 | 94,601 |
Less: allowance for obsolete inventories | (19,132) | (19,538) |
Total inventories | $ 62,720 | $ 75,063 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of bank loans | ||
Bank loans | $ 43,675 | $ 44,841 |
Industrial and Commercial Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | 17,759 | 16,940 |
Nanjing Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 7,901 | 13,951 |
China Everbright Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 4,272 | 3,121 |
HSBC [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,737 | 3,129 |
Bank of Communications [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,010 | 3,080 |
China Minsheng Banking [Member] | ||
Schedule of bank loans | ||
Bank loans | 3,010 | 3,080 |
Bank of China [Member] | ||
Schedule of bank loans | ||
Bank loans | 2,631 | |
China Citic Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | 1,355 | |
Pin An Bank [Member] | ||
Schedule of bank loans | ||
Bank loans | $ 1,540 |
Bank Loans (Details Textual)
Bank Loans (Details Textual) $ in Thousands, ¥ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Oct. 31, 2015USD ($) | Oct. 31, 2015CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Jul. 31, 2015USD ($) | Jul. 31, 2015CNY (¥) | Jun. 30, 2015CNY (¥) | Jan. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Jun. 30, 2014USD ($) | Jun. 30, 2014CNY (¥) | Jan. 31, 2014USD ($) | Jan. 31, 2014CNY (¥) | |
Bank Loans (Textual) | |||||||||||||||||||||||
Interest | $ 931 | $ 1,492 | |||||||||||||||||||||
Bank Loan [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Interest | $ 300 | $ 900 | 700 | 1,500 | |||||||||||||||||||
Ever-Glory Apparel [Member] | China Everbright Bank [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 6,000 | ¥ 40 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 4,300 | $ 4,300 | |||||||||||||||||||||
Due date of revolving line of credit agreement | July to November 2016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 1,700 | $ 1,700 | |||||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 5,200 | ||||||||||||||||||||||
Ever-Glory Apparel [Member] | China Everbright Bank [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 2.80% | ||||||||||||||||||||||
Ever-Glory Apparel [Member] | China Everbright Bank [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 3.80% | ||||||||||||||||||||||
Nanjing Bank [Member] | Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | 7,500 | $ 7,500 | ¥ 50 | ||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 7,500 | 7,500 | |||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 9,000 | $ 9,000 | ¥ 60 | ||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 3,000 | $ 3,000 | 20 | ||||||||||||||||||||
Due date of revolving line of credit agreement | July to September 2016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 3,400 | $ 3,400 | |||||||||||||||||||||
Aggregate revolving line of credit agreement, additional borrowings | $ 2,600 | ||||||||||||||||||||||
Line of credit interest rate on additional borrowing | 5.00% | ||||||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 3,000 | ||||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 3.50% | ||||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 4.00% | ||||||||||||||||||||||
Nanjing Bank [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 3,000 | ¥ 20 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 2,300 | $ 2,300 | 15 | ||||||||||||||||||||
Effective interest rate during the period | 5.00% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | January 2,017 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 700 | $ 700 | 5 | ||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 9,000 | ¥ 60 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 6,000 | $ 6,000 | 40 | ||||||||||||||||||||
Due date of revolving line of credit agreement | September to October 2016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 3,000 | $ 3,000 | |||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 4.40% | ||||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 4.50% | ||||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 18,100 | ¥ 120 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 11,700 | $ 11,700 | 78 | ||||||||||||||||||||
Effective interest rate during the period | 4.40% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | July to December 2016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 6,400 | $ 6,400 | |||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 5,000 | ¥ 33 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 3,000 | $ 3,000 | 20 | ||||||||||||||||||||
Due date of revolving line of credit agreement | August to November 2016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 2,000 | $ 2,000 | |||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 5.00% | ||||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 5.30% | ||||||||||||||||||||||
Bank of China [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 3,800 | ¥ 25 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 1,500 | $ 1,500 | 10 | ||||||||||||||||||||
Effective interest rate during the period | 4.80% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | October 2,016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 1,200 | $ 1,200 | |||||||||||||||||||||
Aggregate revolving line of credit agreement, additional borrowings | $ 1,100 | ||||||||||||||||||||||
Line of credit interest rate on additional borrowing | 2.50% | ||||||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 1,400 | ||||||||||||||||||||||
HSBC [Member] | Ever-Glory Apparel and Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 12,600 | ||||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 3,700 | $ 3,700 | |||||||||||||||||||||
Due date of revolving line of credit agreement | July 2,016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | 8,900 | $ 8,900 | |||||||||||||||||||||
Revolving line of credit agreement, collateral amount | $ 4,300 | ||||||||||||||||||||||
HSBC [Member] | Ever-Glory Apparel and Goldenway [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 1.10% | ||||||||||||||||||||||
HSBC [Member] | Ever-Glory Apparel and Goldenway [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Effective interest rate during the period | 3.00% | ||||||||||||||||||||||
China Minsheng Banking [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 3,000 | ¥ 20 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 3,000 | $ 3,000 | 20 | ||||||||||||||||||||
Effective interest rate during the period | 4.60% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | December 2,016 | ||||||||||||||||||||||
China Citic Bank [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement | $ 5,400 | ¥ 36 | |||||||||||||||||||||
Revolving line of credit agreement, amount borrowed | 1,400 | $ 1,400 | ¥ 9 | ||||||||||||||||||||
Effective interest rate during the period | 4.60% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | December 2,016 | ||||||||||||||||||||||
Revolving line of credit agreement, unused capacity | $ 4,000 | $ 4,000 |
Derivative Liability (Details)
Derivative Liability (Details) ¥ in Thousands, $ in Millions | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Dec. 31, 2015USD ($) |
Derivative Liability (Textual) | |||
Derivative notional amount | $ 9.5 | ¥ 650 | $ 11.1 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ 3,880 | $ 4,897 | $ 4,214 | $ 8,117 |
PRC [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | 3,884 | 4,900 | 4,218 | 8,213 |
BVI [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | (1) | (1) | 1 | (91) |
Others [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ (3) | $ (2) | $ (5) | $ (5) |
Income Tax (Details 1)
Income Tax (Details 1) - PRC [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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 | 0.30% | |||
Net operating losses for which no deferred tax assets was recognized | 14.40% | |||
Other | (3.70%) | 3.50% | 2.60% | |
Effective income tax rate | 21.30% | 28.20% | 39.40% | 27.20% |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of components of income tax expense | ||||
Current | $ 640 | $ 1,245 | $ 1,744 | $ 2,184 |
Deferred | 188 | 134 | (14) | 3 |
Income tax expense | $ 828 | $ 1,379 | $ 1,662 | $ 2,204 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax (Textual) | ||||
Tax Expiration | Dec. 31, 2017 | |||
Income tax rate for dividends distribution | 10.00% | |||
Non-U.S. subsidiaries [Member] | ||||
Income Tax (Textual) | ||||
U.S. deferred income taxes | $ 81.2 | |||
Minimum [Member] | ||||
Income Tax (Textual) | ||||
Effective income tax reduction, Percent | 9.00% | |||
Maximum [Member] | ||||
Income Tax (Textual) | ||||
Effective income tax reduction, Percent | 15.00% | |||
PRC [Member] | ||||
Income Tax (Textual) | ||||
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
Tax liability | $ 3.2 | $ 3.2 | ||
Income taxes paid | $ 2.3 | |||
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic and diluted earnings per share | ||||
Weighted average number of common shares - Basic and diluted | 14,787,302 | 14,784,094 | 14,786,589 | 14,784,094 |
Earnings per share - Basic and diluted | $ 0.21 | $ 0.24 | $ 0.19 | $ 0.41 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 1 Months Ended | |
Apr. 29, 2016 | Jul. 29, 2015 | |
Three Independent Directors [Member] | ||
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | 854 | |
Common stock issued at five days average market price | $ 5.91 | |
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 | 2,072 | 920 |
Common stock issued at five days average market price | $ 2.43 | $ 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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of other expenses due to related parties | ||||
Total | $ 80 | $ 86 | $ 160 | $ 172 |
Jiangsu Ever-Glory [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 12 | 13 | 24 | 26 |
Chuzhou Huarui [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 57 | 61 | 114 | 122 |
Kunshan Enjin [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | $ 11 | $ 12 | $ 22 | $ 24 |
Related Party Transactions (D36
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of sub-contracts with related parties | ||||
Total | $ 5,971 | $ 6,049 | $ 12,399 | $ 9,363 |
Chuzhou huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 1,370 | 1,461 | 3,694 | 2,493 |
Fengyang huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 299 | 327 | 502 | 736 |
Nanjing Ever-Kyowa [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 522 | 314 | 995 | 587 |
Ever-Glory Vietnam [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 3,018 | 3,852 | 5,057 | 4,888 |
Ever-Glory Cambodia [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 757 | 68 | 2,095 | 372 |
EsCeLav [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 5 | 5 | 2 | |
Shanghai sea to sky [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 1 | 259 | ||
Jiangsu Ever-Glory [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 26 | $ 51 | $ 26 |
Related Party Transactions (D37
Related Party Transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of accounts payable - related parties | ||
Total | $ 2,530 | $ 2,823 |
Ever-Glory Vietnam [Member] | ||
Summary of accounts payable - related parties | ||
Total | 1,109 | 2,003 |
Fengyang Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 84 | |
Nanjing Ever-Kyowa [Member] | ||
Summary of accounts payable - related parties | ||
Total | 685 | 561 |
Chuzhou Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 610 | 175 |
Nanjing Knitting [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 126 |
Related Party Transactions (D38
Related Party Transactions (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Summary of amounts due from related parties | ||
Total | $ 1,054 | $ 2,535 |
Jiangsu Ever-Glory [Member] | ||
Summary of amounts due from related parties | ||
Total | 628 | 2,412 |
Nanjing Knitting [Member] | ||
Summary of amounts due from related parties | ||
Total | 106 | |
Fengyang Huarui [Member] | ||
Summary of amounts due from related parties | ||
Total | 257 | |
Ever-Glory Cambodia [Member] | ||
Summary of amounts due from related parties | ||
Total | 109 | 15 |
EsC'eLav [Member] | ||
Summary of amounts due from related parties | ||
Total | $ 60 | $ 2 |
Related Party Transactions (D39
Related Party Transactions (Details Textual) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2012 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Jun. 30, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Related Party Transactions (Textual) | ||||||||||
Other income expenses | $ 3,145 | $ 3,598 | $ 2,785 | $ 5,994 | ||||||
Amounts due from related party | 19,967 | 19,967 | $ 21,776 | |||||||
Sub-contracts with related parties | 5,971 | 6,049 | 12,399 | 9,363 | ||||||
Edward Yihua Kang [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Guarantee on lines of credit | 40,100 | ¥ 266.3 | ||||||||
Jiangsu Wubijia [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Other income from Related Parties | 4,720 | 2,026 | 11,255 | 9,786 | ||||||
Amount paid through the consignment | 5,675 | 2,480 | 10,285 | 9,100 | ||||||
Other income expenses | (955) | (454) | 970 | 686 | ||||||
Nanjing Knitting [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Other income from Related Parties | 70,456 | 100,839 | ||||||||
Amount paid through the consignment | 60,490 | 85,446 | ||||||||
Other income expenses | 9,966 | 15,393 | ||||||||
Purchase of raw material | 140 | 510 | 340 | 690 | ||||||
Line of credit facility, collateral amount | 31,000 | 206 | 22,800 | ¥ 148 | ||||||
EsC'eLav [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 5 | 5 | 2 | |||||||
Rent income | 16,647 | 17,596 | 32,433 | 35,105 | ||||||
Ever-Glory Cambodia [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Amounts due from related party | 110 | 110 | ||||||||
Sub-contracts with related parties | 757 | 68 | 2,095 | 372 | ||||||
Fengyang huarui [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Amounts due from related party | 260 | 260 | ||||||||
Sub-contracts with related parties | 299 | 327 | 502 | 736 | ||||||
Jiangsu Ever-Glory [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Purchase of raw material | 1,900 | 3,000 | ||||||||
Company sold raw materials | 300 | 30 | ||||||||
Minimum percentage counter-guaranty on lines of credit | 70.00% | |||||||||
Line of credit facility, Interest rate at expiration or termination | 6.00% | |||||||||
Guarantee on lines of credit | 54,800 | 364 | ||||||||
Counter guaranty provided by parent company on lines of credit | 16,600 | 16,600 | 18,800 | ¥ 110 | ¥ 122 | |||||
Repayment received under counter guarantee | $ 1,840 | ¥ 12 | ||||||||
Percentage of reduced guarantee | 27.80% | 27.80% | ||||||||
Currency exchange adjustment | $ 4,000 | |||||||||
Amount acquired interest | 3,380 | |||||||||
Value of equity redemption | $ 19,970 | 21,780 | $ 19,970 | 21,780 | ||||||
Interest charged on net amounts due | 0.50% | 0.50% | ||||||||
Bank interest rate | 0.41% | 0.41% | 0.41% | |||||||
Interest income payable to related party | $ 200 | $ 200 | $ 400 | $ 500 | ||||||
Lines of credit obtained by the Company | $ 52,200 | ¥ 339 | ||||||||
Ever Glory Enterprises [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Acquired interest | 83.00% | 83.00% |
Concentrations and Risks (Detai
Concentrations and Risks (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues earned in geographic areas | ||||
Total | $ 80,676 | $ 75,727 | $ 172,369 | $ 173,630 |
The People's Republic of China [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 11,265 | 9,374 | 26,064 | 28,307 |
Germany [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 790 | 2,780 | 2,243 | 7,267 |
United Kingdom [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 3,831 | 3,828 | 6,419 | 6,981 |
Europe-Other [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 12,821 | 6,897 | 18,275 | 8,699 |
Japan [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 1,807 | 2,934 | 6,619 | 5,864 |
United States [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 7,294 | 3,979 | 10,738 | 5,948 |
Total wholesale business [Member] | ||||
Revenues earned in geographic areas | ||||
Total | 37,808 | 29,792 | 70,358 | 63,066 |
Retail Business [Member] | ||||
Revenues earned in geographic areas | ||||
Total | $ 42,868 | $ 45,935 | $ 102,011 | $ 110,564 |
Concentrations and Risks (Det41
Concentrations and Risks (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Customer | Jun. 30, 2015Customer | Jun. 30, 2016USD ($)WholesaleCustomerRawMaterialSuppliers | Jun. 30, 2015WholesaleCustomerRawMaterialSuppliers | Dec. 31, 2015USD ($) | |
Concentrations and Risks (Textual) | |||||
Allowance for doubtful accounts | $ | $ 1,050 | $ 1,050 | $ 2,180 | ||
Revenues [Member] | |||||
Concentrations and Risks (Textual) | |||||
Number of wholesale customer | WholesaleCustomer | 1 | 2 | |||
Wholesale Customer One [Member] | Revenues [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 12.40% | 10.00% | 13.00% | ||
Number of wholesale customer | 2 | ||||
Wholesale Customer Two [Member] | Revenues [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 11.00% | ||
Number of wholesale customer | 2 | ||||
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 | 36.10% | 35.00% | 23.90% | 23.00% | |
Wholesale Business [Member] | Finished Goods [Member] | Manufacturer Two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 16.40% | 13.00% | 17.50% | 12.00% | |
Number of wholesale customer | 2 | ||||
Retail Business [Member] | Raw Materials [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 11.90% | 10.50% | |||
Number of raw material supplier | RawMaterialSuppliers | 1 | 1 | |||
Retail Business [Member] | Finished Goods [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of segment profit or loss: | ||||
Net revenue from external customers | $ 80,676 | $ 75,727 | $ 172,369 | $ 173,630 |
Income from operations | 3,356 | 4,859 | 3,837 | 8,298 |
Interest income | 237 | 215 | 621 | 539 |
Interest expense | 334 | 716 | 931 | 1,492 |
Depreciation and amortization | 1,573 | 2,168 | 3,331 | 4,678 |
Income tax expense | 828 | 1,379 | 1,662 | 2,204 |
Wholesale segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 37,808 | 29,792 | 70,358 | 63,066 |
Income from operations | 1,644 | 1,753 | 3,449 | 3,585 |
Interest income | 218 | 193 | 589 | 501 |
Interest expense | 213 | 522 | 702 | 1,116 |
Depreciation and amortization | 250 | 255 | 504 | 597 |
Income tax expense | 417 | 416 | 842 | 871 |
Retail segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 42,868 | 45,935 | 102,011 | 110,564 |
Income from operations | 1,712 | 3,106 | 388 | 4,713 |
Interest income | 19 | 22 | 32 | 38 |
Interest expense | 121 | 194 | 229 | 376 |
Depreciation and amortization | 1,323 | 1,913 | 2,827 | 4,081 |
Income tax expense | $ 411 | $ 963 | $ 820 | $ 1,333 |
Segments (Details Textual)
Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2016Segments | |
Segments (Textual) | |
Number of reportable segments | 2 |