Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Entity Central Index Key | 943,184 | |
Trading Symbol | EVK | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,792,836 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 37,853 | $ 45,288 |
Accounts receivable | 54,429 | 67,644 |
Inventories | 58,413 | 49,630 |
Value added tax receivable | 4,468 | 2,938 |
Other receivables and prepaid expenses | 3,724 | 3,674 |
Advances on inventory purchases | 5,922 | 3,139 |
Amounts due from related parties | 918 | 486 |
Total Current Assets | 165,727 | 172,799 |
INTANGIBLE ASSETS | 5,824 | 5,769 |
PROPERTY AND EQUIPMENT, NET | 22,756 | 22,694 |
TOTAL ASSETS | 194,307 | 201,262 |
CURRENT LIABILITIES | ||
Bank loans | 37,849 | 29,232 |
Accounts payable | 51,944 | 58,170 |
Accounts payable and other payables - related parties | 4,152 | 4,337 |
Other payables and accrued liabilities | 14,005 | 15,007 |
Value added and other taxes payable | 1,044 | 5,118 |
Income tax payable | 1,240 | 1,842 |
Total Current Liabilities | 110,234 | 113,706 |
NONCURRENT LIABILITIES | ||
Deferred tax liabilities | 1,574 | 3,254 |
TOTAL LIABILITIES | 111,808 | 116,960 |
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, 14,792,836 and 14,787,940 shares issued and outstanding As of June 30, 2017 and December 31, 2016, respectively) | 15 | 15 |
Additional paid-in capital | 3,612 | 3,602 |
Retained earnings | 87,085 | 83,423 |
Statutory reserve | 17,107 | 17,107 |
Accumulated other comprehensive income | (1,774) | (3,297) |
Amounts due from related party | (22,656) | (15,936) |
Total equity attributable to stockholders of the Company | 83,389 | 84,914 |
Noncontrolling interest | (890) | (612) |
Total Equity | 82,499 | 84,302 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 194,307 | $ 201,262 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [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 | 14,792,836 | 14,787,940 |
Common stock, shares outstanding | 14,792,836 | 14,787,940 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
NET SALES | $ 79,771 | $ 80,676 | $ 164,891 | $ 172,369 |
COST OF SALES | 49,121 | 53,961 | 105,732 | 117,311 |
GROSS PROFIT | 30,650 | 26,715 | 59,159 | 55,058 |
OPERATING EXPENSES | ||||
Selling expenses | 20,223 | 16,043 | 39,968 | 36,956 |
General and administrative expenses | 7,479 | 7,316 | 14,734 | 14,265 |
Total Operating Expenses | 27,702 | 23,359 | 54,702 | 51,221 |
INCOME FROM OPERATIONS | 2,948 | 3,356 | 4,457 | 3,837 |
OTHER INCOME (EXPENSES) | ||||
Interest income | 282 | 237 | 539 | 621 |
Interest expense | (318) | (334) | (645) | (931) |
Other income | 523 | 621 | 1,100 | 687 |
Total Other Income | 487 | 524 | 994 | 377 |
INCOME BEFORE INCOME TAX EXPENSE | 3,435 | 3,880 | 5,451 | 4,214 |
Income tax expense | (833) | (828) | (2,050) | (1,662) |
NET INCOME | 2,602 | 3,052 | 3,401 | 2,552 |
Net loss attributable to the non-controlling interest | 86 | 93 | 261 | 233 |
NET INCOME ATTRIBUTABLE TO THE COMPANY | 2,688 | 3,145 | 3,662 | 2,785 |
NET INCOME | 2,602 | 3,052 | 3,401 | 2,552 |
Foreign currency translation (loss) gain | 1,063 | (3,178) | 1,522 | (2,396) |
COMPREHENSIVE INCOME (LOSS) | 3,665 | (126) | 4,923 | 156 |
Comprehensive loss attributable to the non-controlling interest | 98 | 85 | 278 | 228 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ 3,763 | $ (41) | $ 5,201 | $ 384 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | ||||
Basic and diluted | $ 0.18 | $ 0.21 | $ 0.25 | $ 0.19 |
Weighted average number of shares outstanding Basic and diluted | 14,792,836 | 14,787,302 | 14,791,240 | 14,786,589 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,401 | $ 2,552 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 3,481 | 3,331 |
Loss from sale of property and equipment | 5 | |
Provision of bad debt allowance | 688 | |
Inventory write-down | 4,105 | 7,111 |
Deferred income tax | (1,744) | (14) |
Stock-based compensation | 10 | 5 |
Changes in operating assets and liabilities | ||
Accounts receivable | 13,865 | 23,903 |
Inventories | (11,750) | 3,901 |
Value added tax receivable | (1,446) | (2,583) |
Other receivables and prepaid expenses | (673) | (1,166) |
Advances on inventory purchases | (2,684) | 2,434 |
Amounts due from related parties | (161) | 1,092 |
Accounts payable | (7,542) | (20,847) |
Accounts payable and other payables- related parties | (818) | (275) |
Other payables and accrued liabilities | (1,353) | (4,852) |
Value added and other taxes payable | (4,048) | (2,448) |
Income tax payable | (753) | (2,297) |
Net cash (used in) provided by operating activities | (7,417) | 9,847 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (2,220) | (5,692) |
Net cash (used in) investing activities | (2,220) | (5,692) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 25,664 | 48,295 |
Repayment of bank loans | (17,821) | (48,521) |
Repayment of loans from related party | 482 | 1,836 |
Advances to related party | (6,433) | |
Net cash provided by financing activities | 1,892 | 1,610 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 310 | (992) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (7,435) | 4,773 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 45,288 | 22,702 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 37,853 | 27,475 |
Cash paid during the period for: | ||
Interest | 645 | 931 |
Income taxes | $ 3,120 | $ 4,442 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017, the condensed consolidated statements of income and comprehensive income (loss), and cash flows for the three and six months ended June 30, 2017 and 2016. 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 8-03 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, 2017 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, 2016. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition We recognize wholesale revenue from product sales, net of value-added taxes, upon delivery for local sales and upon shipment of the products for export sales, at such time title passes to the customer provided however that (i) there are no uncertainties regarding customer acceptance (ii) persuasive evidence of an arrangement exists (iii) the sales price is fixed and determinable, and (iv) collectability is deemed probable. We recognize wholesale revenue from manufacturing fees charged to buyers for the assembly of garments from materials provided by the buyers upon completion of the manufacturing process and shipment of the products for export sales, provided that (i) there are no uncertainties regarding customer acceptance (ii) persuasive evidence of an arrangement exists (iii) the sales price is fixed and determinable, and (iv) collectability is deemed probable. Retail sales are recorded net of promotional discounts, rebates, and return allowances. Retail store sales are recognized at the time of the register receipt. Retail online sales are recognized when products are shipped and customers receive the products because we retain a portion of the risk of loss on these sales during transit. 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, 2017, 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 December 31, 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 is 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 February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” 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, 2017 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 3 INVENTORIES Inventories at June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 2,509 $ 1,604 Work-in-progress 21,798 9,347 Finished goods 34,106 38,679 Total inventories $ 58,413 $ 49,630 |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016. June 30, December 31, Bank (In thousands of U.S. Dollars) Industrial and Commercial Bank of China $ 20,650 $ 11,232 Nanjing Bank 4,425 9,360 China Everbright Bank 2,950 2,880 Bank of Communications 2,950 2,880 China Minsheng Banking 2,950 2,880 Bank of China 2,017 - China Citic Bank 1,328 - HSBC 579 - $ 37,849 $ 29,232 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 $8.9 million (RMB60.0 million). These loans are collateralized by the Company’s property and equipment. As of June 30, 2017, Goldenway had borrowed $5.9 million (RMB 40.0 million) under this line of credit with an annual interest rate of 4.6% and due on various dates from December 2017 to January 2018. As of June 30, 2017, 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 $17.7 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, 2017, Ever-Glory Apparel had borrowed $14.8 million (RMB 100.0 million) under this line of credit with annual interest rate of 4.6% and due on various dates from September 2017 to April 2018. As of June 30, 2017, approximately $2.9 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 $7.4 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, 2017, approximately $7.4 million was unused and available under this line of credit. In June 2016, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.9 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of June 30, 2017, Ever-Glory Apparel had borrowed $3.0 million (RMB20.0 million) from Nanjing Bank with an annual interest rates ranging from 4.8% to 4.9% and due on various dates from July to August 2017. As of June 30, 2017, approximately $5.9 million was unused and available under this line of credit. In March 2017, 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, 2017, LA GO GO had borrowed $1.5 million (RMB10.0 million) from Nanjing Bank under this line of credit with annual interest rate of 5.0% and due in May 2018. As of June 30, 2017, approximately $1.5 million (RMB10.0 million) was unused and available under this line of credit. In July 2016, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.9 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, 2017, Ever-Glory Apparel had borrowed $3.0 million (RMB20.0 million) under this line of credit with an annual interest rates ranging from 2.8% to 3.0% and due in November 2017. As of June 30, 2017, approximately $2.9 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 $4.9 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, 2017, LA GO GO had borrowed $3.0 million (RMB20.0 million) from the Bank of Communications with annual interest rates ranging from 4.6% to 5.0% and due on various dates from August to November 2017. As of June 30, 2017, approximately $1.9 million was unused and available under this line of credit. In December 2016, LA GO GO entered into a line of credit agreement for approximately $3.0 million (RMB20.0 million) with China Minsheng Bank and guaranteed by Ever-Glory Apparel and Mr. Kang. As of June 30, 2017, LA GO GO had borrowed $3.0 million (RMB20.0 million) from China Minsheng Bank with an annual interest rate of 4.6% and due in December 2017. In October 2016, Ever-Glory Apparel entered into a line of credit agreement for approximately $3.7 million (RMB25.0 million) with Bank of China and guaranteed by Jiangsu Ever-Glory. 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, 2017, Ever-Glory Apparel had borrowed $1.5 million (RMB10.0 million) under this line of credit with an annual interest rate of 4.8% and due in November 2017. Ever-Glory Apparel had also borrowed $0.5 million from Bank of China with an annual interest rate of 1.8% and due in August 2017, and collateralized by approximately $0.6 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, 2017, approximately $1.7 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 $5.3 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, 2017, LA GO GO had borrowed $1.3 million (RMB9.0 million) under this line of credit with an annual interest rate of 5.5% and due in December 2017. As of June 30, 2017, approximately $4.0 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, 2017, Ever-Glory Apparel had borrowed $0.6 million from HSBC with an annual interest rate of 3.0% and due in August 2017, and collateralized by approximately $0.7 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, 2017, approximately $12.0 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, $0.6 million, $0.3 million, $0.9 million for the three and six months ended June 30, 2017 and 2016, respectively. |
Derivative Liability
Derivative Liability | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Liability [Abstract] | |
DERIVATIVE LIABILITY | NOTE 5 DERIVATIVE LIABILITY As of December 31, 2016, the Company had one outstanding forward foreign exchange contract (sell EUR dollars for RMB), with total notional amount of EUR€0.65 million. The fair value of this contract at December 31, 2016 was not significant. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2017 | |
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 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. All $3.2 million was paid off as of December 31, 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, 2017 and 2016 was taxable in the following jurisdictions: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 (In thousands of U.S. Dollars) PRC $ 3,438 $ 3,884 $ 5,456 $ 4,218 BVI - (1 ) - 1 Others (3 ) (3 ) (5 ) (5 ) $ 3,435 $ 3,880 $ 5,451 $ 4,214 The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and six months ended June 30, 2017 and 2016: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment - - - - Effect of foreign income tax rates - - - - Net operating losses for which no deferred tax assets was recognized - - 12.6 14.4 Other (0.7 ) (3.7 ) - - Effective income tax rate 24.3 % 21.3 % 37.6 % 39.4 % Income tax expense for the three and six months ended June 30, 2017 and 2016 is as follows: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Current $ 1,359 $ 640 $ 3,730 $ 1,744 Deferred (526 ) 188 (1,680 ) (82 ) Income tax expense $ 833 $ 828 $ 2,050 $ 1,662 The Company has not recorded U.S. deferred income taxes on approximately $87.1 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, 2017 | |
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, 2017 and 2016: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Weighted average number of common shares – Basic and diluted 14,792,836 14,787,302 14,791,240 14,786,589 Earnings per share – Basic and diluted $ 0.18 $ 0.21 $ 0.25 $ 0.19 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 STOCKHOLDERS’ EQUITY 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. On February 28, 2017, the Company issued an aggregate of 2,542 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 2016. The shares were valued at $1.96 per share, which was the average market price of the common stock for the five days before the grant date. On February 28, 2017, the Company issued an aggregate of 2,354 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 2016. The shares were valued at $2.14 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, 2017 | |
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-term 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, 2017 and 2016, the Company received $5,918, $17,483, $4,720 and $11,255 from the customers and paid $4,602, $13,556, $5,675 and $10,285 to Wubijia through the consignment, respectively. The net profit (loss) of $1,316, $3,928, ($955) and $970 was recorded as other income (expenses) during the three and six months ended June 30, 2017 and 2016, 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, 2017 and 2016, the Company received $984, $6,365, $70,456 and $100,839 from the customers and paid $1,575, $10,534, $60,490 and $85,446 to Nanjing Knitting through the consignment, respectively. The net (loss) profit of ($591), ($4,170), $9,966 and $15,393 was recorded as other income during the three and six months ended June 30, 2017 and 2016, respectively. Included in other income for the three and six months ended June 30, 2017 and 2016 is rent income from EsC’Lav, the entity controlled by Mr. Kang under operating lease agreement with term though 2017. The rent income is $5,152, $14,588, $16,647 and $32,433 for the three and six months ended June 30, 2017 and 2016, respectively. Other expenses due to Related Parties Included in other expenses for the three and six months ended June 30, 2017 and 2016 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, 2017 2016 2017 2016 In thousands of U.S. Dollars) Jiangsu Ever-Glory $ 12 $ 12 $ 23 $ 24 Chuzhou Huarui 52 57 104 114 Kunshan Enjin 11 11 22 22 Total $ 75 $ 80 $ 149 $ 160 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 $0.44 million, $0.60 million, $0.14 million and $0.34 million during the three and six months ended June 30, 2017 and 2016, respectively. In addition, Sub-contracts with related parties included in cost of sales for the three and six months ended June 30, 2017 and 2016 are as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands of U.S. Dollars) Chuzhou huarui $ 990 $ 1,370 $ 2,000 $ 3,694 Fengyang huarui 387 299 851 502 Nanjing Ever-Kyowa 77 522 820 995 Ever-Glory Vietnam 4,309 3,018 5,731 5,057 Ever-Glory Cambodia 188 757 224 2,095 EsCeLav - 5 4 5 Jiangsu Ever-Glory - - 3 51 $ 5,951 $ 5,971 $ 9,633 $ 12,399 Accounts Payable – Related Parties The accounts payable to related parties at June 30, 2017 and December 31, 2016 are as follows: June 30, December 31, (In thousands of Ever-Glory Vietnam $ 1,769 1,938 Fengyang Huarui 513 709 Nanjing Ever-Kyowa 703 785 Chuzhou Huarui 663 643 Ever-Glory Cambodia 45 262 Jiangsu Ever-Glory 411 - Nanjing Knitting 48 - Total $ 4,152 $ 4,337 Amounts Due From Related Parties-current assets The amounts due from related parties as of June 30, 2017 and December 31, 2016 are as follows: June 30, December 31, (In thousands of Jiangsu Ever-Glory $ 824 $ 403 Nanjing Knitting - 9 EsC’eLav 94 74 Total $ 918 $ 486 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, 2017 and 2016, 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 $0.02 million, $0.1 million, $1.1 million and $1.9 million during the three and six months period ended June 30, 2017 and 2016, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at a cost of $0.05 million, $0.05 million, $0.2 million and $0.3 million during the three and six months ended June 30, 2017 and 2016, 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, 2017 and December 31, 2016, Jiangsu Ever-Glory has provided guarantees for approximately $53.7 million (RMB 364.0 million) and $52.4 million (RMB 364.0 million) of lines of credit obtained by the Company, respectively. 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 $30.3 million (RMB 205.5 million) and $29.6 million (RMB 205.5 million) as of June 30, 2017 and December 31, 2016, respectively. Mr. Kang has also provided a personal guarantee for $30.8 million (RMB 209.0 million) and $30.1 million (RMB 209.0 million) as of June 30, 2017 and December 31, 2016, respectively. At December 31, 2016, $14.1 million (RMB 98.2 million) was outstanding due from Jiangsu Ever-Glory under the counter guarantee agreement. During the six months ended June 30, 2017, an additional $6.5 million (RMB 44.0 million) was provided to and $0.5 million (RMB 3.3 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of June 30, 2017, the amount of the counter-guarantee was $20.5 million (RMB 139 million) (the difference represents currency exchange adjustment of $0.3 million), which was 38.2% of the aggregate amount of lines of credit. This amount plus accrued interest of $2.2 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2017 and December 31, 2016, the amount classified as a reduction of equity was $22.7 million and $15.9 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, 2017 and 2016 was approximately $0.2 million, $0.4 million, $0.2 million and $0.4 million, respectively. |
Concentrations and Risks
Concentrations and Risks | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 was $4.7 million and $4.1 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, 2017, the Company had one wholesale customer that represented approximately 11.3% of the Company’s revenues. For the three-month period ended June 30, 2017, the Company had two wholesale customers that represented approximately 11.0% and 10.6% of the Company’s revenues. 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 Company’s wholesale business during the three and six months ended June 30, 2017 and 2016, 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 22.8% and 29.0% of raw materials purchases during the three and six months ended June 30, 2017. 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. For the wholesale business, the Company relied on one manufacturers for 36.9% and 23.9% of purchased finished goods during the three and six months ended June 30, 2017. For the wholesale business, during the three months ended June 30, 2016, the Company relied on two manufacturers for 36.1% and 16.4% of purchased finished goods. The Company relied on two manufacturers for 17.5% and 23.9% of purchased finished goods during the six months ended June 30, 2016. 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, 2017 and 2016. The Company’s revenues for the three and six months ended June 30, 2017 and 2016 were earned in the following geographic areas: Three months ended Six months ended 2017 2016 2017 2016 (In thousands of U.S. Dollars) The People’s Republic of China $ 3,525 $ 5,700 $ 10,114 $ 13,994 Hong Kong China 7,795 5,565 13,218 12,070 Germany 1,876 790 4,769 2,243 United Kingdom 2,287 3,831 5,575 6,419 Europe-Other 8,640 12,821 14,389 18,275 Japan 1,186 1,807 2,631 6,619 United States 7,696 7,294 10,614 10,738 Total wholesale business 33,005 37,808 61,310 70,358 Retail business 46,766 42,868 103,581 102,011 Total $ 79,771 $ 80,676 $ 164,891 $ 172,369 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
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 (In thousands of U.S. Dollars) Six months ended June 30, 2017 Segment profit or loss: Net revenue from external customers $ 61,310 103,581 164,891 Income from operations $ 2,663 1,794 4,457 Interest income $ 498 41 539 Interest expense $ 470 175 645 Depreciation and amortization $ 552 2,929 3,481 Income tax expense $ 756 1,294 2,050 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 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2017 Segment profit or loss: Net revenue from external customers $ 33,006 46,765 79,771 Income from operations $ 912 2,036 2,948 Interest income $ 263 19 282 Interest expense $ 226 92 318 Depreciation and amortization $ 285 955 1,240 Income tax expense $ 292 541 833 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 |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize wholesale revenue from product sales, net of value-added taxes, upon delivery for local sales and upon shipment of the products for export sales, at such time title passes to the customer provided however that (i) there are no uncertainties regarding customer acceptance (ii) persuasive evidence of an arrangement exists (iii) the sales price is fixed and determinable, and (iv) collectability is deemed probable. We recognize wholesale revenue from manufacturing fees charged to buyers for the assembly of garments from materials provided by the buyers upon completion of the manufacturing process and shipment of the products for export sales, provided that (i) there are no uncertainties regarding customer acceptance (ii) persuasive evidence of an arrangement exists (iii) the sales price is fixed and determinable, and (iv) collectability is deemed probable. Retail sales are recorded net of promotional discounts, rebates, and return allowances. Retail store sales are recognized at the time of the register receipt. Retail online sales are recognized when products are shipped and customers receive the products because we retain a portion of the risk of loss on these sales during transit. |
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, 2017, 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 December 31, 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 is 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 February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” 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, 2017 | |
Inventories [Abstract] | |
Schedule of inventories | June 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 2,509 $ 1,604 Work-in-progress 21,798 9,347 Finished goods 34,106 38,679 Total inventories $ 58,413 $ 49,630 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Bank Loans [Abstract] | |
Schedule of short term bank loans | June 30, December 31, Bank (In thousands of U.S. Dollars) Industrial and Commercial Bank of China $ 20,650 $ 11,232 Nanjing Bank 4,425 9,360 China Everbright Bank 2,950 2,880 Bank of Communications 2,950 2,880 China Minsheng Banking 2,950 2,880 Bank of China 2,017 - China Citic Bank 1,328 - HSBC 579 - $ 37,849 $ 29,232 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax [Abstract] | |
Summary of pre-tax income in jurisdictions | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 (In thousands of U.S. Dollars) PRC $ 3,438 $ 3,884 $ 5,456 $ 4,218 BVI - (1 ) - 1 Others (3 ) (3 ) (5 ) (5 ) $ 3,435 $ 3,880 $ 5,451 $ 4,214 |
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Preferential tax treatment - - - - Effect of foreign income tax rates - - - - Net operating losses for which no deferred tax assets was recognized - - 12.6 14.4 Other (0.7 ) (3.7 ) - - Effective income tax rate 24.3 % 21.3 % 37.6 % 39.4 % |
Schedule of income tax expense | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Current $ 1,359 $ 640 $ 3,730 $ 1,744 Deferred (526 ) 188 (1,680 ) (82 ) Income tax expense $ 833 $ 828 $ 2,050 $ 1,662 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted earnings per share | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Weighted average number of common shares – Basic and diluted 14,792,836 14,787,302 14,791,240 14,786,589 Earnings per share – Basic and diluted $ 0.18 $ 0.21 $ 0.25 $ 0.19 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of other expenses due to related parties | Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 In thousands of U.S. Dollars) Jiangsu Ever-Glory $ 12 $ 12 $ 23 $ 24 Chuzhou Huarui 52 57 104 114 Kunshan Enjin 11 11 22 22 Total $ 75 $ 80 $ 149 $ 160 |
Summary of sub-contracts with related parties | Three Months Ended Six Months Ended 2017 2016 2017 2016 (In thousands of U.S. Dollars) Chuzhou huarui $ 990 $ 1,370 $ 2,000 $ 3,694 Fengyang huarui 387 299 851 502 Nanjing Ever-Kyowa 77 522 820 995 Ever-Glory Vietnam 4,309 3,018 5,731 5,057 Ever-Glory Cambodia 188 757 224 2,095 EsCeLav - 5 4 5 Jiangsu Ever-Glory - - 3 51 $ 5,951 $ 5,971 $ 9,633 $ 12,399 |
Summary of accounts payable to related parties | June 30, December 31, (In thousands of Ever-Glory Vietnam $ 1,769 1,938 Fengyang Huarui 513 709 Nanjing Ever-Kyowa 703 785 Chuzhou Huarui 663 643 Ever-Glory Cambodia 45 262 Jiangsu Ever-Glory 411 - Nanjing Knitting 48 - Total $ 4,152 $ 4,337 |
Summary of amounts due from related party current assets | June 30, December 31, (In thousands of Jiangsu Ever-Glory $ 824 $ 403 Nanjing Knitting - 9 EsC’eLav 94 74 Total $ 918 $ 486 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Concentrations and Risks [Abstract] | |
Schedule of Company's revenues as per geographic areas | Three months ended Six months ended 2017 2016 2017 2016 (In thousands of U.S. Dollars) The People’s Republic of China $ 3,525 $ 5,700 $ 10,114 $ 13,994 Hong Kong China 7,795 5,565 13,218 12,070 Germany 1,876 790 4,769 2,243 United Kingdom 2,287 3,831 5,575 6,419 Europe-Other 8,640 12,821 14,389 18,275 Japan 1,186 1,807 2,631 6,619 United States 7,696 7,294 10,614 10,738 Total wholesale business 33,005 37,808 61,310 70,358 Retail business 46,766 42,868 103,581 102,011 Total $ 79,771 $ 80,676 $ 164,891 $ 172,369 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segments [Abstract] | |
Summary of financial and operating information | Wholesale Retail Total (In thousands of U.S. Dollars) Six months ended June 30, 2017 Segment profit or loss: Net revenue from external customers $ 61,310 103,581 164,891 Income from operations $ 2,663 1,794 4,457 Interest income $ 498 41 539 Interest expense $ 470 175 645 Depreciation and amortization $ 552 2,929 3,481 Income tax expense $ 756 1,294 2,050 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 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2017 Segment profit or loss: Net revenue from external customers $ 33,006 46,765 79,771 Income from operations $ 912 2,036 2,948 Interest income $ 263 19 282 Interest expense $ 226 92 318 Depreciation and amortization $ 285 955 1,240 Income tax expense $ 292 541 833 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 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of inventories | ||
Raw materials | $ 2,509 | $ 1,604 |
Work-in-progress | 21,798 | 9,347 |
Finished goods | 34,106 | 38,679 |
Total inventories | $ 58,413 | $ 49,630 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of short term bank loans | ||
Bank loans | $ 37,849 | $ 29,232 |
Industrial and Commercial Bank of China [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 20,650 | 11,232 |
Nanjing Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 4,425 | 9,360 |
China Everbright Banking [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,950 | 2,880 |
Bank of Communications [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,950 | 2,880 |
China Minsheng Banking [Member[ | ||
Schedule of short term bank loans | ||
Bank loans | 2,950 | 2,880 |
Bank of China [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,017 | |
China Citic Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 1,328 | |
HSBC [Member] | ||
Schedule of short term bank loans | ||
Bank loans | $ 579 |
Bank Loans (Details Textual)
Bank Loans (Details Textual) ¥ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | Jul. 31, 2016USD ($) | Jul. 31, 2016CNY (¥) | Jun. 30, 2016CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Jan. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CNY (¥) | Jun. 30, 2014USD ($) | Jun. 30, 2014CNY (¥) | Jan. 31, 2014USD ($) | Jan. 31, 2014CNY (¥) | |
Bank Loans (Textual) | |||||||||||||||||||||||
Interest expense on bank loans | $ 0.3 | $ 0.6 | $ 0.3 | $ 0.9 | |||||||||||||||||||
Nanjing Bank [Member] | Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 7.4 | 7.4 | ¥ 50 | ||||||||||||||||||||
Unused line of credit | 7.4 | 7.4 | |||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 3 | $ 8.9 | 3 | $ 8.9 | ¥ 20 | ¥ 60 | |||||||||||||||||
Unused line of credit | 5.9 | $ 5.9 | |||||||||||||||||||||
Due date of revolving line of credit agreement | July to August 2017 | ||||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 4.80% | ||||||||||||||||||||||
Nanjing Bank [Member] | Ever-Glory Apparel [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 4.90% | ||||||||||||||||||||||
Nanjing Bank [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | $ 3 | ¥ 20 | |||||||||||||||||||||
Unused line of credit | 1.5 | $ 1.5 | 10 | ||||||||||||||||||||
Line of credit annual interest rates | 5.00% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | May 2,018 | ||||||||||||||||||||||
Accounts receivable from our wholesale customers | 1.5 | $ 1.5 | 10 | ||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 5.9 | 5.9 | 40 | $ 8.9 | ¥ 60 | ||||||||||||||||||
Unused line of credit | 3 | $ 3 | |||||||||||||||||||||
Line of credit annual interest rates | 4.60% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | December 2017 to January 2018 | ||||||||||||||||||||||
Industrial and Commercial Bank of China [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 14.8 | $ 14.8 | 100 | $ 17.7 | ¥ 120 | ||||||||||||||||||
Unused line of credit | 2.9 | $ 2.9 | |||||||||||||||||||||
Line of credit annual interest rates | 4.60% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | September 2017 to April 2018 | ||||||||||||||||||||||
China Everbright Banking [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 3 | $ 3 | 20 | $ 5.9 | ¥ 40 | ||||||||||||||||||
Unused line of credit | 2.9 | $ 2.9 | |||||||||||||||||||||
Due date of revolving line of credit agreement | November 2,017 | ||||||||||||||||||||||
China Everbright Banking [Member] | Ever-Glory Apparel [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 2.80% | ||||||||||||||||||||||
China Everbright Banking [Member] | Ever-Glory Apparel [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 3.00% | ||||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 3 | $ 3 | 20 | $ 4.9 | ¥ 33 | ||||||||||||||||||
Unused line of credit | 1.9 | $ 1.9 | |||||||||||||||||||||
Due date of revolving line of credit agreement | August to November 2017 | ||||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | Minimum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 4.60% | ||||||||||||||||||||||
Bank of Communications [Member] | LA GO GO [Member] | Maximum [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit annual interest rates | 5.00% | ||||||||||||||||||||||
Bank of China [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Unused line of credit | 1.7 | $ 1.7 | |||||||||||||||||||||
Line of credit annual interest rates | 1.80% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | August 2,017 | ||||||||||||||||||||||
Bank of China [Member] | Ever-Glory Apparel [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 1.5 | $ 1.5 | 10 | $ 3.7 | ¥ 25 | ||||||||||||||||||
Unused line of credit | 0.6 | $ 0.6 | |||||||||||||||||||||
Line of credit annual interest rates | 4.80% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | November 2,017 | ||||||||||||||||||||||
Borrowed loans from related party | 0.5 | $ 0.5 | |||||||||||||||||||||
HSBC [Member] | Goldenway [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | $ 12.6 | ||||||||||||||||||||||
Unused line of credit | 12 | $ 12 | |||||||||||||||||||||
Line of credit annual interest rates | 3.00% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | August 2,017 | ||||||||||||||||||||||
Borrowed loans from related party | 0.6 | $ 0.6 | |||||||||||||||||||||
Accounts receivable from our wholesale customers | 0.7 | 0.7 | |||||||||||||||||||||
China Minsheng Bank [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 3 | $ 3 | 20 | $ 3 | ¥ 20 | ||||||||||||||||||
Line of credit annual interest rates | 4.60% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | December 2,017 | ||||||||||||||||||||||
China Citic Bank [Member] | LA GO GO [Member] | |||||||||||||||||||||||
Bank Loans (Textual) | |||||||||||||||||||||||
Line of credit agreement amount | 1.3 | $ 1.3 | ¥ 9 | $ 5.3 | ¥ 36 | ||||||||||||||||||
Unused line of credit | $ 4 | $ 4 | |||||||||||||||||||||
Line of credit annual interest rates | 5.50% | ||||||||||||||||||||||
Due date of revolving line of credit agreement | December 2,017 |
Derivative Liability (Details)
Derivative Liability (Details) € in Thousands | Dec. 31, 2016EUR (€) |
Derivative Liability (Textual) | |
Derivative notional amount | € 650 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ 3,435 | $ 3,880 | $ 5,451 | $ 4,214 |
PRC [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | 3,438 | 3,884 | 5,456 | 4,218 |
BVI [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | (1) | 1 | ||
Others [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ (3) | $ (3) | $ (5) | $ (5) |
Income Tax (Details 1)
Income Tax (Details 1) - PRC [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | ||||
Effect of foreign income tax rates | ||||
Net operating losses for which no deferred tax assets was recognized | 12.60% | 14.40% | ||
Other | (0.70%) | (3.70%) | ||
Effective income tax rate | 24.30% | 21.30% | 37.60% | 39.40% |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of income tax expense | ||||
Current | $ 1,359 | $ 640 | $ 3,730 | $ 1,744 |
Deferred | (526) | 188 | (1,744) | (14) |
Income tax expense | $ 833 | $ 828 | $ 2,050 | $ 1,662 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2013 | |
Income Tax (Textual) | ||||||
Tax Expiration | Dec. 31, 2017 | |||||
Tax liability | $ 3,200 | |||||
Income taxes paid | $ 3,120 | $ 4,442 | ||||
Xizang (Tibet) [Member] | ||||||
Income Tax (Textual) | ||||||
PRC statutory rate | 15.00% | |||||
Non-U.S. subsidiaries [Member] | ||||||
Income Tax (Textual) | ||||||
U.S. deferred income taxes | $ 87,100 | |||||
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 | $ 3,200 | $ 3,200 | ||||
Income taxes paid | $ 3,200 | |||||
Income tax rate for dividends distribution | 10.00% | |||||
Income tax, description | 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. All $3.2 million was paid off as of December 31, 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. | |||||
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic and diluted earnings per share | ||||
Weighted average number of common shares - Basic and diluted | 14,792,836 | 14,787,302 | 14,791,240 | 14,786,589 |
Earnings per share - Basic and diluted | $ 0.18 | $ 0.21 | $ 0.25 | $ 0.19 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 1 Months Ended | |
Feb. 28, 2017 | Apr. 29, 2016 | |
Two independent directors [Member] | ||
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | 2,542 | 2,072 |
Common stock issued at five days average market price | $ 1.96 | $ 2.43 |
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 independent directors one [Member] | ||
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | 2,354 | |
Common stock issued at five days average market price | $ 2.14 | |
Number of days used to calculation average market price of common stock | Five days before the grant date. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of other expenses due to related parties | ||||
Total | $ 75 | $ 80 | $ 149 | $ 160 |
Jiangsu Ever-Glory [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 12 | 12 | 23 | 24 |
Chuzhou Huarui [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 52 | 57 | 104 | 114 |
Kunshan Enjin [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | $ 11 | $ 11 | $ 22 | $ 22 |
Related Party Transactions (D36
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of sub-contracts with related parties | ||||
Total | $ 5,951 | $ 5,971 | $ 9,633 | $ 12,399 |
Chuzhou Huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 990 | 1,370 | 2,000 | 3,694 |
Fengyang Huarui [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 387 | 299 | 851 | 502 |
Nanjing Ever-Kyowa [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 77 | 522 | 820 | 995 |
Ever-Glory Vietnam [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 4,309 | 3,018 | 5,731 | 5,057 |
Ever-Glory Cambodia [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 188 | 757 | 224 | 2,095 |
EsCeLav [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | 5 | 4 | 5 | |
Jiangsu Ever-Glory [Member] | ||||
Summary of sub-contracts with related parties | ||||
Total | $ 3 | $ 51 |
Related Party Transactions (D37
Related Party Transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Summary of accounts payable - related parties | ||
Total | $ 4,152 | $ 4,337 |
Ever-Glory Vietnam [Member] | ||
Summary of accounts payable - related parties | ||
Total | 1,769 | 1,938 |
Fengyang Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 513 | 709 |
Nanjing Ever-Kyowa [Member] | ||
Summary of accounts payable - related parties | ||
Total | 703 | 785 |
Chuzhou Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 663 | 643 |
Ever-Glory Cambodia [Member] | ||
Summary of accounts payable - related parties | ||
Total | 45 | 262 |
Jiangsu Ever-Glory [Member] | ||
Summary of accounts payable - related parties | ||
Total | 411 | |
Nanjing Knitting [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 48 |
Related Party Transactions (D38
Related Party Transactions (Details 3) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Summary of amounts due from related parties | ||
Total | $ 918 | $ 486 |
Jiangsu Ever-Glory [Member] | ||
Summary of amounts due from related parties | ||
Total | 824 | 403 |
Nanjing Knitting [Member] | ||
Summary of amounts due from related parties | ||
Total | 9 | |
EsC'eLav [Member] | ||
Summary of amounts due from related parties | ||
Total | $ 94 | $ 74 |
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, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Jun. 30, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Related Party Transactions (Textual) | ||||||||||
Net profit (loss) | $ 2,688 | $ 3,145 | $ 3,662 | $ 2,785 | ||||||
Counter guaranty provided by parent company on lines of credit | 500 | $ 500 | ¥ 3.3 | |||||||
Ever-Glory Enterprises [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Acquired interest | 83.00% | 83.00% | ||||||||
Jiangsu Ever-Glory [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Purchase of raw material | 20 | 100 | $ 1,100 | 1,900 | ||||||
Company sold raw materials | 50 | 50 | 200 | 300 | ||||||
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 | 53,700 | ¥ 364 | $ 52,400 | ¥ 364 | ||||||
Counter guaranty provided by parent company on lines of credit | 6,500 | 6,500 | 14,100 | ¥ 44 | ¥ 98.2 | |||||
Accrued interest | 2,200 | |||||||||
Value of equity reduction | $ 22,700 | $ 22,700 | 15,900 | |||||||
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 | 400 | $ 200 | 400 | ||||||
Jiangsu Ever-Glory [Member] | Counter-guarantee [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Amount of Guarantee reduced | 20,500 | ¥ 139 | ||||||||
Currency exchange adjustment | $ 300 | |||||||||
Percentage of reduced guarantee | 38.20% | 38.20% | ||||||||
Nanjing Knitting [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Other income from related parties | 984 | 6,365 | $ 70,456 | 100,839 | ||||||
Amount paid through the consignment | 1,575 | 10,534 | 60,490 | 85,446 | ||||||
Net profit (loss) | (591) | (4,170) | 9,966 | 15,393 | ||||||
Purchase of raw material | 440 | 140 | 600 | 340 | ||||||
Line of credit facility, collateral amount | 30,300 | ¥ 205.5 | 29,600 | 205.5 | ||||||
Mr. Kang [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Guarantee on lines of credit | 30,800 | ¥ 209 | $ 30,100 | ¥ 209 | ||||||
Jiangsu Wubijia [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Other income from related parties | 5,918 | 17,483 | 4,720 | 11,255 | ||||||
Amount paid through the consignment | 4,602 | 13,556 | 5,675 | 10,285 | ||||||
Net profit (loss) | 1,316 | 3,928 | (955) | 970 | ||||||
EsC' eLav [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Rent income | $ 5,152 | $ 14,588 | $ 16,647 | $ 32,433 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues earned in geographic areas | ||||
Revenues | $ 79,771 | $ 80,676 | $ 164,891 | $ 172,369 |
Total wholesale business [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 33,005 | 37,808 | 61,310 | 70,358 |
Retail business [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 46,766 | 42,868 | 103,581 | 102,011 |
The People's Republic of China [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 3,525 | 5,700 | 10,114 | 13,994 |
Hong Kong China [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 7,795 | 5,565 | 13,218 | 12,070 |
Germany [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 1,876 | 790 | 4,769 | 2,243 |
United Kingdom [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 2,287 | 3,831 | 5,575 | 6,419 |
Europe-Other [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 8,640 | 12,821 | 14,389 | 18,275 |
Japan [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 1,186 | 1,807 | 2,631 | 6,619 |
United States [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | $ 7,696 | $ 7,294 | $ 10,614 | $ 10,738 |
Concentrations and Risks (Det41
Concentrations and Risks (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)CustomerSupplier | Jun. 30, 2016CustomerSupplier | Jun. 30, 2017USD ($)CustomerSupplier | Jun. 30, 2016CustomerSupplier | Dec. 31, 2016USD ($) | |
Concentrations and Risks (Textual) | |||||
Allowance for doubtful accounts | $ | $ 4.7 | $ 4.7 | $ 4.1 | ||
Wholesale business customer [Member] | Manufacturer one [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 36.90% | 23.90% | |||
Number of manufacturers | 1 | 1 | |||
Wholesale business customer [Member] | Manufacturer two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 36.10% | 16.40% | |||
Number of manufacturers | 2 | 2 | |||
Wholesale business customer [Member] | Revenues [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 11.00% | 12.40% | 11.30% | 10.00% | |
Number of wholesale customer | 2 | 2 | 1 | ||
Wholesale business customer [Member] | Raw materials [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Wholesale business customer [Member] | Finished goods [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Wholesale business customer [Member] | Finished goods [Member] | Manufacturer one [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 17.50% | ||||
Number of manufacturers | 2 | ||||
Wholesale business customer [Member] | Finished goods [Member] | Manufacturer two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 23.90% | ||||
Number of manufacturers | 2 | ||||
Wholesale business customer one [Member] | Revenues [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 10.60% | 10.00% | |||
Number of wholesale customer | 2 | 2 | |||
Retail business [Member] | Raw material suppliers [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 22.80% | 11.90% | 29.00% | 10.50% | |
Number of raw material suppliers | Supplier | 1 | 1 | 1 | 1 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of segment profit or loss: | ||||
Net revenue from external customers | $ 79,771 | $ 80,676 | $ 164,891 | $ 172,369 |
Income from operations | 2,948 | 3,356 | 4,457 | 3,837 |
Interest income | 282 | 237 | 539 | 621 |
Interest expense | 318 | 334 | 645 | 931 |
Depreciation and amortization | 1,240 | 1,573 | 3,481 | 3,331 |
Income tax expense | 833 | 828 | 2,050 | 1,662 |
Wholesale segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 33,006 | 37,808 | 61,310 | 70,358 |
Income from operations | 912 | 1,644 | 2,663 | 3,449 |
Interest income | 263 | 218 | 498 | 589 |
Interest expense | 226 | 213 | 470 | 702 |
Depreciation and amortization | 285 | 250 | 552 | 504 |
Income tax expense | 292 | 417 | 756 | 842 |
Retail segment [Member] | ||||
Summary of segment profit or loss: | ||||
Net revenue from external customers | 46,765 | 42,868 | 103,581 | 102,011 |
Income from operations | 2,036 | 1,712 | 1,794 | 388 |
Interest income | 19 | 19 | 41 | 32 |
Interest expense | 92 | 121 | 175 | 229 |
Depreciation and amortization | 955 | 1,323 | 2,929 | 2,827 |
Income tax expense | $ 541 | $ 411 | $ 1,294 | $ 820 |
Segments (Details Textual)
Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segments (Textual) | |
Number of segments | 2 |