Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Entity Central Index Key | 0000943184 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | FL | |
Entity File Number | 0-28806 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 14,801,770 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 34,526 | $ 47,012 |
Accounts receivable, net | 64,704 | 86,527 |
Inventories | 63,127 | 65,929 |
Advances on inventory purchases | 8,754 | 6,420 |
Value added tax receivable | 3,102 | 2,580 |
Other receivables and prepaid expenses | 6,648 | 10,204 |
Amounts due from related parties | 144 | 192 |
Total Current Assets | 181,005 | 218,864 |
NONCURRENT ASSETS | ||
Intangible assets, net | 4,886 | 4,962 |
Property and equipment, net | 28,245 | 28,445 |
Operating lease right-of-use assets | 51,623 | |
Total Non-Current Assets | 84,754 | 33,407 |
TOTAL ASSETS | 265,759 | 252,271 |
CURRENT LIABILITIES | ||
Bank loans | 25,999 | 29,497 |
Accounts payable | 50,352 | 78,412 |
Accounts payable and other payables - related parties | 4,796 | 4,756 |
Other payables and accrued liabilities | 12,665 | 21,958 |
Value added and other taxes payable | 2,569 | |
Income tax payable | 1,774 | 1,569 |
Current operating lease liabilities | 42,808 | |
Total Current Liabilities | 138,394 | 138,761 |
NONCURRENT LIABILITIES | ||
Deferred tax liabilities | 354 | |
Non-current operating lease liabilities | 8,839 | |
TOTAL LIABILITIES | 147,233 | 139,115 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' equity: | ||
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued and outstanding) | ||
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,800,140 and 14,798,198 shares issued and outstanding As of June 30, 2019 and December 31, 2018, respectively) | 15 | 15 |
Additional paid-in capital | 3,635 | 3,627 |
Retained earnings | 107,249 | 105,914 |
Statutory reserve | 19,083 | 19,083 |
Accumulated other comprehensive income | (2,093) | (3,578) |
Amounts due from related party | (7,863) | (10,354) |
Total equity attributable to stockholders of the Company | 120,026 | 114,707 |
Noncontrolling interest | (1,500) | (1,551) |
Total Equity | 118,526 | 113,156 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 265,759 | $ 252,271 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 14,800,140 | 14,798,198 |
Common stock, shares outstanding | 14,800,140 | 14,798,198 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
NET SALES | $ 77,316 | $ 88,541 | $ 165,272 | $ 181,326 |
COST OF SALES | 48,330 | 53,999 | 106,928 | 115,439 |
GROSS PROFIT | 28,986 | 34,542 | 58,344 | 65,887 |
OPERATING EXPENSES | ||||
Selling expenses | 19,699 | 22,590 | 40,706 | 44,817 |
General and administrative expenses | 7,337 | 8,823 | 14,867 | 16,496 |
Total operating expenses | 27,036 | 31,413 | 55,573 | 61,313 |
INCOME FROM OPERATIONS | 1,950 | 3,129 | 2,771 | 4,574 |
OTHER INCOME (EXPENSES) | ||||
Interest income | 277 | 370 | 484 | 696 |
Interest expense | (408) | (360) | (771) | (924) |
Other income | 1,409 | 865 | 1,114 | 1,001 |
Total Other Income, Net | 1,278 | 875 | 827 | 773 |
INCOME BEFORE INCOME TAX EXPENSE | 3,228 | 4,004 | 3,598 | 5,347 |
INCOME TAX EXPENSE | (1,455) | (1,285) | (2,280) | (2,041) |
NET INCOME | 1,773 | 2,719 | 1,318 | 3,306 |
Net loss attributable to the non-controlling interest | 83 | 57 | 17 | 285 |
NET INCOME ATTRIBUTABLE TO THE COMPANY | 1,856 | 2,776 | 1,335 | 3,591 |
NET INCOME | 1,773 | 2,719 | 1,318 | 3,306 |
Foreign currency translation (loss) gain | (2,487) | (6,091) | 1,485 | (2,068) |
Unrealized loss of derivative contracts designated as cash flow hedge | (469) | (469) | ||
COMPREHENSIVE INCOME (LOSS) | (714) | (3,841) | 2,803 | 769 |
Comprehensive (loss)income attributable to the non-controlling interest | (48) | (13) | 52 | 309 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ (762) | $ (3,854) | $ 2,855 | $ 1,078 |
EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS | ||||
Basic and diluted | $ 0.13 | $ 0.19 | $ 0.09 | $ 0.24 |
Weighted average number of shares outstanding Basic and diluted | 14,800,140 | 14,795,992 | 14,800,140 | 14,795,992 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Retained Earnings Unrestricted | Retained Earnings Statutory reserve | Accumulated other Comprehensive income | Amounts due from related party | Total equity attributable to stockholders of the Company [Member] | Non-controlling Interest | Total |
Balance at Dec. 31, 2017 | $ 15 | $ 3,620 | $ 95,195 | $ 17,794 | $ 2,585 | $ (15,449) | $ 103,760 | $ (1,062) | $ 102,698 |
Balance, shares at Dec. 31, 2017 | 14,795,992 | ||||||||
Net income (loss) | 815 | 815 | (228) | 587 | |||||
Net cash paid to related party under counter guarantee agreement | (8,480) | (8,480) | (8,480) | ||||||
Foreign currency translation loss | 4,023 | 4,023 | (94) | 3,929 | |||||
Balance at Mar. 31, 2018 | $ 15 | 3,620 | 96,010 | 17,794 | 6,608 | (23,929) | 100,118 | (1,384) | 98,734 |
Balance, shares at Mar. 31, 2018 | 14,795,992 | ||||||||
Balance at Dec. 31, 2017 | $ 15 | 3,620 | 95,195 | 17,794 | 2,585 | (15,449) | 103,760 | (1,062) | 102,698 |
Balance, shares at Dec. 31, 2017 | 14,795,992 | ||||||||
Net income (loss) | 3,306 | ||||||||
Balance at Jun. 30, 2018 | $ 15 | 17,794 | |||||||
Balance, shares at Jun. 30, 2018 | 14,795,992 | ||||||||
Balance at Mar. 31, 2018 | $ 15 | 3,620 | 96,010 | 17,794 | 6,608 | (23,929) | 100,118 | (1,384) | 98,734 |
Balance, shares at Mar. 31, 2018 | 14,795,992 | ||||||||
Net income (loss) | 2,776 | 2,776 | (58) | 2,719 | |||||
Net cash received from related party under counter guarantee agreement | 2,340 | 2,340 | 2,340 | ||||||
Foreign currency translation loss | (6,656) | (21,589) | (6,656) | 123 | (6,533) | ||||
Balance at Jun. 30, 2018 | $ 15 | 17,794 | |||||||
Balance, shares at Jun. 30, 2018 | 14,795,992 | ||||||||
Balance at Dec. 31, 2018 | $ 15 | 3,627 | 105,914 | 19,083 | (3,578) | (10,354) | 114,707 | (1,551) | 113,156 |
Balance, shares at Dec. 31, 2018 | 14,798,198 | ||||||||
Stock issued for compensation | $ 4 | 8 | 8 | 8 | |||||
Stock issued for compensation, shares | 1,942 | ||||||||
Net income (loss) | (521) | (521) | 66 | (455) | |||||
Net cash received from related party under counter guarantee agreement | 1,101 | 1,101 | 1,101 | ||||||
Foreign currency translation loss | 3,972 | 3,972 | 34 | 4,006 | |||||
Balance at Mar. 31, 2019 | $ 15 | 3,635 | 105,393 | 19,083 | 394 | (9,253) | 119,267 | (1,451) | 117,816 |
Balance, shares at Mar. 31, 2019 | 14,800,140 | ||||||||
Balance at Dec. 31, 2018 | $ 15 | 3,627 | 105,914 | 19,083 | (3,578) | (10,354) | 114,707 | (1,551) | 113,156 |
Balance, shares at Dec. 31, 2018 | 14,798,198 | ||||||||
Net income (loss) | 1,318 | ||||||||
Balance at Jun. 30, 2019 | $ 15 | 3,635 | 107,249 | 19,083 | (7,863) | 120,026 | (1,500) | 118,526 | |
Balance, shares at Jun. 30, 2019 | 14,800,140 | ||||||||
Balance at Mar. 31, 2019 | $ 15 | 3,635 | 105,393 | 19,083 | 394 | (9,253) | 119,267 | (1,451) | 117,816 |
Balance, shares at Mar. 31, 2019 | 14,800,140 | ||||||||
Net income (loss) | 1,856 | 1,856 | (83) | 1,773 | |||||
Net cash received from related party under counter guarantee agreement | 1,390 | 1,390 | 1,390 | ||||||
Foreign currency translation loss | $ (2,487) | (2,487) | 34 | (2,453) | |||||
Balance at Jun. 30, 2019 | $ 15 | $ 3,635 | $ 107,249 | $ 19,083 | $ (7,863) | $ 120,026 | $ (1,500) | $ 118,526 | |
Balance, shares at Jun. 30, 2019 | 14,800,140 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,318 | $ 3,306 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 4,491 | 4,903 |
Loss from sale of property and equipment | 53 | 6 |
Provision of bad debt allowance | 682 | |
Provision for obsolete inventories | 1,824 | 1,626 |
Deferred income tax | (1,461) | (843) |
Stock-based compensation | 8 | |
Changes in operating assets and liabilities | ||
Accounts receivable | 21,793 | 20,150 |
Inventories | 1,145 | (10,873) |
Value added tax receivable | 504 | 681 |
Other receivables and prepaid expenses | 3,502 | (8,942) |
Advances on inventory purchases | (2,353) | (7,145) |
Amounts due from related parties | (129) | 1,117 |
Accounts payable | (25,954) | (14,296) |
Accounts payable and other payables- related parties | 58 | (1,485) |
Other payables and accrued liabilities | (10,789) | 8,006 |
Value added and other taxes payable | (4,684) | (5,924) |
Income tax payable | 207 | (942) |
Net cash used in operating activities | (9,785) | (10,655) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (4,082) | (6,295) |
Net cash used in investing activities | (4,082) | (6,295) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 16,320 | 28,111 |
Repayment of bank loans | (19,904) | (30,533) |
Repayment of loans from related party | 8,149 | 2,556 |
Advances to related party | (5,454) | (8,734) |
Net cash used in financing activities | (889) | (8,600) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 2,270 | (887) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (12,486) | (26,437) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 47,012 | 62,876 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 34,526 | 36,439 |
Cash paid during the period for: | ||
Interest | 771 | 924 |
Income taxes | $ 2,436 | $ 3,016 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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"), Nanjing Tai Xin Garments Trading Company Limited ("Tai Xin") and Haian Tai Xin Garments Trading Company Limited ("Haian Taixin"), and the Company's wholly-owned Samoa subsidiary, Ever-Glory International Group (HK) Ltd. ("Ever-Glory HK") and Ever-Glory Supply Chain Service Co., Limited ("Ever-Glory Supply Chain"). The Company's retail operations are provided through its wholly- owned subsidiaries, Shanghai LA GO Fashion Company Limited ("Shanghai LA GO GO"), Jiangsu LA GO Fashion Company Limited ("Jiangsu LA GO GO"), Tianjin LA 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 March 2019, the Company incorporated Haian Tai Xin Garments Trading Company Limited ("Haian Tai Xin") and it is the Company's wholly-owned PRC subsidiaries. Haian Tai Xin is engaged in the business of garments manufacturing. 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, 2019, the condensed consolidated statements of income and comprehensive income(loss) and condensed consolidated statements of equity for the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018. 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 six months ended June 30, 2019 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, 2018. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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. 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. 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. Our revenue recognition policy is in compliance with ASC 606, Revenue from Contracts with Customers (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, we review the contract to determine which performance obligations we must deliver and which of these performance obligations are distinct. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, our performance obligations are transferred to customers at a point in time, typically upon delivery for local sales and upon shipment of the products for export sale. For all reporting periods, we have not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. Derivatives financial instruments From time to time, the Company uses derivative financial instruments to manage its exposure to foreign currency risks arising from operational activities or on certain existing assets and liabilities. The Company does not hold or issue derivative instruments for trading purposes. The Company may enter into forward foreign exchange contracts, foreign exchange options, or foreign exchange currency swap contracts to manage exposure to certain foreign currency operating transactions. These instruments may offset a portion of the foreign currency re-measurement gains or losses, or changes in fair value. The Company may also enter into above similar derivative instruments to hedge the exposure to variability in the expected cash flows of forecasted transactions such as international sales or purchases that the Company expects to receive or commit to remit foreign currencies. In these cases, the Company designates these instruments as the cash flow hedges. Derivative financial instruments are recognized initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognized immediately in earnings when such instruments are designated as fair value hedges or ineffective portion of cash flow hedges. The accumulated gain or loss from effective portions of cash flow hedges are recorded in accumulated other comprehensive income/(loss) (“AOCI”) until the hedged item is recognized in earnings. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. Accounts Receivable, net 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). The fair value of forward exchange contracts is based on broker quotes, if available. If broker quotes are not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price at the reporting date for the residual maturity of the contract using a risk-free interest rate based on government bonds. As of June 30, 2019 and 2018, 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, 2019, the Company has one derivative liability subjects to recurring fair value measurement (Level 2) with the change in fair value recognized in earnings (Note 5). 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. The Company has adopted ASC 825-10 “ Financial Instruments 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, Ever-Glory HK and Ever-Glory Supply Chain 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, Taixin and Haian Taixin is the Chinese RMB. For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Items in the cash flow statement are translated at the average exchange rate for the period. Lease The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The followings are lists of leases: (i) the terms of Shanghai LAGOGO land use right and buildings are 34 years; (ii) the terms of Kunshan logistics center and Chuzhou logistics center are 5 years; (iii) the terms of flagship stores are 3 years. The terms of stores within shopping mall are one year. The shopping malls sort the stores within shopping mall based on sales every year and the stores within shopping mall of higher sales will be arrange to the better location. If the sales do not meet the requirements of the shopping malls, the stores within shopping mall will be removed. The store within shopping mall is different from flagship store. The shopping malls count the rent of counter according to the sale but the rent of flagship store is fixed every year. The company estimates the terms of flagship store are three years according to the previous data. The company calculates the Right-of-use (ROU) assets or Lease Obligation (Obligation) of the stores within shopping mall in a floating manner because the rents of the stores within shopping mall will vary according to the sales. The rents of the stores within shopping mall will be higher if the number and sales of counters is larger, so the ROU/Obligation of the counter will be higher. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In October 2018, the FASB issued ASU No. 2018-17 “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” In April 2019, the FASB issued ASU No. 2019-04 “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, 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 condensed consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 INVENTORIES Inventories at June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, (In thousands of Raw materials $ 1,256 $ 6,805 Work-in-progress 15,696 3,308 Finished goods 46,175 55,816 Total inventories $ 63,127 $ 65,929 |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [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, 2019 and December 31, 2018. June 30, December 31, Bank (In thousands of Industrial and Commercial Bank of China $ 11,648 $ 14,540 Nanjing Bank 5,824 5,089 China Minsheng Bank 2,912 2,908 Bank of Communications 2,897 2,893 Shanghai Pudong Development Bank 2,617 2,613 China Everbright Bank - 1,454 HSBC 101 - $ 25,999 $ 29,497 In December 2016, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $8.7 million (RMB60.0 million). These loans are collateralized by the Company’s property and equipment. As of June 30, 2019, Goldenway had borrowed $5.8 million (RMB 40.0 million) under this line of credit with an annual interest rate of 3.92% and due on November 2019. As of June 30, 2019, approximately $2.9 million was unused and available under this line of credit. In November 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $14.6 million (RMB100.0 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, 2019, Ever-Glory Apparel had borrowed $5.8 million (RMB 40.0 million) under this line of credit with annual interest rates ranging from 4.57% to 4.70% and due on July 2019. As of June 30, 2019, approximately $8.8 million was unused and available under this line of credit. In August 2018, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.3 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, 2019, approximately $7.3 million was unused and available under this line of credit. In August 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.7 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of June 30, 2019, Ever-Glory Apparel had borrowed $5.8 million (RMB40.0 million) from Nanjing Bank with an annual interest rate 5.0% and due on variable dates from September 2019 to June 2020. As of June 30, 2019, approximately $2.9 million was unused and available under this line of credit. In May 2018, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $2.9 million (RMB20.0 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of June 30, 2019, approximately $2.9 million was unused and available under this line of credit. In June 2018, LA GO GO entered into a line of credit agreement for approximately $2.9 million (RMB20.0 million) with China Minsheng Bank and guaranteed by Ever-Glory Apparel and Mr. Kang. As of June 30, 2019, LA GO GO had borrowed $2.9 million (RMB20.0 million) from China Minsheng Bank with an annual interest rate of 4.79% and due in October 2019. In November 2018, LA GO GO entered into a line of credit agreement for approximately $2.9 million (RMB19.9 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Jiangsu LAGOGO. As of June 30, 2019, LA GO GO had borrowed $2.9 million (RMB19.9 million) from the Bank of Communications with an annual interest rate 4.57% and due on variable dates from November 2019 to January 2020. In July 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $2.9 million (RMB20.0 million) with the Shanghai Pudong Development Bank and guaranteed by Goldenway. As of June 30, 2019, Ever-Glory Apparel had borrowed $2.6 million (RMB18.0 million) from the Shanghai Pudong Development Bank with an annual interest rate 4.57% and due on date November 2019. As of June 30, 2019, approximately $0.3 million was unused and available under this line of credit. In March 2019, 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 $2.5 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of June 2019, Ever-Glory Apparel had borrowed $0.2 million from HSBC with an annual interest rate of 3.2% and due in September 2019, and collateralized by approximately $0.1 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, 2019, approximately $2.3 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 $0.8 million and $0.9 million for the six months ended June 30, 2019 and 2018, respectively, and $0.4 million and $0.3 million for the three months ended June 30, 2019 and 2018, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | NOTE 5 Derivative Financial Instruments Foreign currency swap contracts The Company entered two foreign currency swap contracts with two banks during 2018. Due to the demand of financial management for daily operation, Ever-Glory Apparel entered into a foreign currency swap contract to exchange $6.0 million for equivalent RMB with Bank of China in May and entered into a foreign currency swap contract to exchange $3.0 million for equivalent RMB with Industrial and Commercial Bank of China in June. The terms of two foreign currency contracts are both six months. Ever-Glory Apparel and the banks swapped two currencies by same pre-determined exchange rate at the beginning and end of the contracts. During the period, the Company pays annual interest of 1.43% for the RMB received and receives 0 interest for the USD exchanged. If the Company failed to execute the exchange at the expiration of contracts, the banks would sell the USD at the market rate then the difference in RMB will be converted into bank loan for the Company. As of June 30, 2018, the fair value of principal amounts are included in other receivable ($9.0 million plus unrealized gain) and other payables (equivalent RMB payables) in the consolidated balance sheets, and unrealized gain of $0.27 million for the six months ended June 30, 2018 is recognized in the income from operations. As of June 30, 2019, there are no currency swap contracts. Forward foreign exchange contracts To avoid foreign currency fluctuation on forecasted international sales and secure the profits on such revenues, the Company entered several forward foreign exchange contracts with banks from time to time. According to ASC 815-20-25, the Company designated above contracts as cash flow hedges. As of June 30, 2018, the Company had one outstanding forward foreign exchange contract (sell EUR dollars for RMB), with total notional amount of €0.42 million and two outstanding forward foreign exchange contracts (sell USD dollars for RMB), with total notional amount of $17.0 million according to the amounts of orders. These contracts have aggregate unrealized loss of $0.49 million in fair value recognized as derivatives financial instruments liabilities and accumulated other comprehensive income (loss) in the consolidated balance sheets. As of June 30, 2019, the Company had one outstanding forward foreign exchange contracts (sell USD dollars for RMB), with total notional amount of $10.0 million. The fair value of this contract at June 30, 2019 was not significant. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 6 LEASES The Company recognized operating lease liabilities and operating lease right-of-use assets on its balance sheets. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The company has leases for land-use-rights, warehouses and logistics centers, flagship stores, and stores within shopping malls in the PRC, which are classified as operating leases. The leases include fixed and variable payments according to the sales generated from flagship stores and those stores with shopping malls. Options to extend or renew are recognized as part of the lease liabilities and recognized as right of use assets. There are no residual value guarantees and no restrictions or covenants imposed by the leases. In the six months ended June 30, 2019, the costs of the leases recognized in cost of revenues and general administrative expenses are $9.8 and $0.4 million, respectively. Cash paid for the operating leases including in the operating cash flows was $10.2 million. As of June 30, 2019, the Company has $51.6 million of right-of-use assets, $42.8 million in current operating lease liabilities and $8.8 million in non-current operating lease liabilities as of June 30, 2019. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 7 INCOME TAX The Company's operating subsidiaries are governed by the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (the "Income Tax Laws"). All PRC subsidiaries, 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, 2019. 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. Ever-Glory Supply Chain Service Co., Limited was incorporated in Hong Kong, and under the current laws of Hong Kong, are subject to income tax at the 16.5% statutory rate. 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, 2019 and 2018 was taxable in the following jurisdictions: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands of U.S. Dollars) PRC $ 3,228 $ 4,010 $ 3,605 $ 5,359 Others - (6 ) (7 ) (12 ) $ 3,228 $ 4,004 $ 3,598 $ 5,347 The following table reconciles the PRC statutory rates to the Company's effective tax rate for the three and six months ended June 30, 2019 and 2018: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Net operating losses for which no deferred tax assets was recognized 24.5 9.1 46.7 13.2 Other (4.4 ) (2.0 ) (8.3 ) - Effective income tax rate 45.1 % 32.1 % 63.4 % 38.2 % Income tax expense for the three and six months ended June 30, 2019 and 2018 is as follows: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Current $ 1,785 $ 1,960 $ 1,990 $ 2,884 Deferred (330 ) (675 ) 290 (843 ) Income tax expense $ 1,455 $ 1,285 $ 2,280 $ 2,041 The Company's deferred tax liabilities arise from differences between US GAAP and PRC tax accounting for certain revenue and expense items, including timing of deduction of losses from allowances. The Company has not recorded U.S. deferred income taxes on approximately $107.2 million of its non-U.S. subsidiaries' undistributed earnings because such amounts are intended to be reinvested outside the United States indefinitely. The U.S. Tax Reform signed into law on December 22, 2017 significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. The Company measured the current and deferred taxes based on the provisions of the Tax legislation. After the Company's measurement, no deferred tax expense (income) relating to the Tax Act changed for the three and six months ended June 30, 2019. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 EARNINGS PER SHARE The following demonstrates the calculation for earnings per share for the three and six months ended June 30, 2019 and 2018: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Weighted average number of common shares – Basic and diluted 14,800,140 14,795,992 14,800,140 14,795,992 Earnings per share – Basic and diluted $ 0.13 $ 0.19 $ 0.09 $ 0.24 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 9 STOCKHOLDERS' EQUITY On July 26, 2018, the Company issued 2,206 shares of Company's common stock to two of the Company's independent directors as compensation for their services rendered during the fourth quarter of 2017, and the first and second quarters of 2018 as directors. The shares issued in 2018 were valued at $3.39 per share, which was the average market price of the common stock for the five days before the grant date. On January 31, 2019, the Company issued 1,942 shares of Company's common stock to two of the Company's independent directors as compensation for their services rendered during the third and fourth quarter of 2018. The shares issued in 2019 were valued at $3.8 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, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 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, 2019 and 2018, the Company received $14,176, $45,655, $17,919 and $51,541 from the customers and paid $13,248, $39,086, $20,130 and $39,318 to Wubijia through the consignment, respectively. The net income (loss) of $928, $6,570, ($2,212) and $12,223 was recorded as other income (expenses) during the three and six months ended June 30, 2019 and 2018, respectively. Other expenses due to Related Parties Included in other expenses for the three and six months ended June 30, 2019 and 2018 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, 2019 2018 2019 2018 (In thousands of U.S. Dollars) Chuzhou Huarui 35 51 88 109 Kunshan Enjin 22 14 44 27 Total $ 57 $ 65 $ 132 $ 136 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 $0.4 million, $0.6 million, $1.52 million and $1.85 million during the three and six months ended June 30, 2019 and 2018, respectively. In addition, sub-contracts with related parties included in cost of sales for the three and six months ended June 30, 2019 and 2018 are as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (In thousands of U.S. Dollars) Chuzhou Huarui $ 1,960 $ 1,006 $ 3,467 $ 1,873 Fengyang Huarui 442 567 548 1,051 Nanjing Ever-Kyowa 408 326 755 675 Ever-Glory Vietnam 2,469 3,260 5,048 5,174 Nanjing Knitting 600 - 600 - EsCeLav 13 21 101 21 Jiangsu Ever-Glory 45 17 470 21 $ 5,937 $ 5,197 $ 10,989 $ 8,815 Accounts Payable – Related Parties The accounts payable to related parties at June 30, 2019 and December 31, 2018 are as follows: 2019 2018 (In thousands of Ever-Glory Vietnam $ 1,769 1,863 Fengyang Huarui 34 622 Nanjing Ever-Kyowa 707 580 Chuzhou Huarui 1,062 888 Nanjing Knitting 283 171 Jiangsu Ever-Glory 941 632 Total $ 4,796 $ 4,756 Amounts Due From Related Parties-current assets The amounts due from related parties at June 30, 2019 and December 31, 2018 are as follows: 2019 2018 (In thousands of Jiangsu Ever-Glory $ 144 $ 122 Esc'elav - 70 Total $ 144 $ 192 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, 2019 and 2018, 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 million, $0 million, $0 million and $0.3 million during the three and six months period ended June 30, 2019 and 2018, respectively. Jiangsu Ever-Glory purchased raw materials on the Company's behalf and sold to the Company at a cost of $0.1 million, $0.1 million, $0.1 million and $0.1 million during the three and six months ended June 30, 2019 and 2018, 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, 2019 and December 31, 2018, Jiangsu Ever-Glory has provided guarantees for approximately $33.5 million (RMB 230 million) and $33.4 million (RMB 230 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 $29.9 million (RMB 205.5 million) and $29.9 million (RMB 205.5 million) as of June 30, 2019 and December 31, 2018, respectively. Mr. Kang has also provided a personal guarantee for $17.0 million (RMB 116.8 million) and $14.5 million (RMB 100.0 million) as of June 30, 2019 and December 31, 2018, respectively. At December 31, 2018, $9.9 million (RMB 68.2 million) was outstanding due from Jiangsu Ever-Glory under the counter guarantee agreement. During the six months ended June 30, 2019, an additional $5.5 million (RMB 37.0 million) was provided to and $8.1 million (RMB 55.3 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of June 30, 2019, the amount of the counter-guarantee was $7.3 million (RMB 50.0 million) (the difference represents currency exchange adjustment of $0.1 million), which was 21.7% of the aggregate amount of lines of credit. The increase of the percentage in this quarter was mainly due to China's credit tightening policy. Obtaining bank loan requires a higher guarantee deposit in this quarter. This amount plus accrued interest of $0.6 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2019 and December 31, 2018, the amount classified as a reduction of equity was $7.9 million and $10.4 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% as the bank benchmark interest rate decreased. Interest income for the three and six months ended June 30, 2019 and 2018 was approximately $0.1 million, $0.2 million, $0.2 million and $0.4 million, respectively. |
Concentrations and Risks
Concentrations and Risks | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND RISKS | NOTE 11 CONCENTRATIONS AND RISKS The Company extends unsecured credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. Based on management's assessment of the amount of probable credit losses, if any, in existing accounts receivable, the allowance for doubtful accounts at June 30, 2019 and December 31, 2018 was $5.1 million and $5.9 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 of the customer's industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company's future allowance for doubtful accounts. If judgments regarding the collectability of accounts receivables are incorrect, adjustments to the allowance may be required, which would reduce profitability. For the six months ended June 30, 2019, the Company had two wholesale customers that represented approximately 16% and 10% of the Company's revenues. For the three months ended June 30, 2019, the Company had two wholesale customers that represented approximately 8% and 14% of the Company's revenues. For the six months ended June 30, 2018, the Company had one wholesale customer that represented approximately 8.97% of the Company's revenues. For the three months ended June 30, 2018, the Company had two wholesale customers that represented approximately 9.68% and 6.60% of the Company's revenues. For the wholesale business, the Company did not rely on any raw material supplier that represented more than 10% of the total raw material purchases during the three and six months ended June 30, 2019 and 2018. For the retail business, the Company relied on three raw material suppliers that represented approximately 32%, 31% and 21% of raw material purchases during the six months ended June 30, 2019. For the Company's retail business, the Company had two suppliers that represented 31.4% and 31.2% of raw materials purchases during the three and six months ended June 30, 2018. For the wholesale business, the Company did not rely on any finished goods supplier that represented more than 10% of the total raw material purchases during the three and six months ended June 30, 2019 and 2018. For the retail business, the Company did not rely on any supplier that represented more than 10% of the total finished goods purchases during the three and six months ended June 30, 2019 and 2018. The Company's revenues for the three and six months ended June 30, 2019 and 2018 were earned in the following geographic areas: Three months ended Six months ended 2019 2018 2019 2018 (In thousands of U.S. Dollars) The People's Republic of China $ 6,491 $ 9,131 $ 17,246 $ 13,342 Hong Kong China 6,463 7,418 7,717 12,556 Germany 877 899 1,726 2,765 United Kingdom 2,038 2,881 2,838 5,099 Europe-Other 4,224 5,833 9,453 10,285 Japan 1,311 1,881 6,248 4,318 United States 15,847 10,771 20,125 15,705 Total wholesale business 37,251 38,814 65,353 64,070 Retail business 40,065 49,727 99,919 117,256 Total $ 77,316 $ 88,541 $ 165,272 $ 181,326 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable 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, 2019 Segment profit or loss: Net revenue from external customers $ 65,353 99,919 165,272 Income from operations $ 2,374 397 2,771 Interest income $ 466 18 484 Interest expense $ 572 199 771 Depreciation and amortization $ 473 8,740 9,213 Income tax expense $ 1,475 805 2,280 Segment assets: Additions to property, plant and equipment 549 3,533 4,082 Total assets 77,218 188,541 265,759 Six months ended June 30, 2018 Segment profit or loss: Net revenue from external customers $ 64,070 117,256 181,326 Income from operations $ 2,634 1,940 4,574 Interest income $ 663 33 696 Interest expense $ 782 142 924 Depreciation and amortization $ 602 4,301 4,903 Income tax expense $ 714 1,327 2,041 Segment assets: Additions to property, plant and equipment 556 5,739 6,295 Total assets 91,483 129,707 221,190 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2019 Segment profit or loss: Net revenue from external customers $ 37,251 40,065 77,316 Income from operations $ 1,605 345 1,950 Interest income $ 268 9 277 Interest expense $ 310 98 408 Depreciation and amortization $ 182 2,084 2,266 Income tax expense $ 1,255 200 1,455 Three months ended June 30, 2018 Segment profit or loss: Net revenue from external customers $ 38,814 49,727 88,541 Income from operations $ 1,538 1,591 3,129 Interest income $ 354 16 370 Interest expense $ 291 69 360 Depreciation and amortization $ 297 2,069 2,366 Income tax expense $ 481 804 1,285 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12 SUBSEQUENT EVENTS As of August 14, 2019, there is no material subsequent event to be disclosed. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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. 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. 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. Our revenue recognition policy is in compliance with ASC 606, Revenue from Contracts with Customers (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, we review the contract to determine which performance obligations we must deliver and which of these performance obligations are distinct. We recognize as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, our performance obligations are transferred to customers at a point in time, typically upon delivery for local sales and upon shipment of the products for export sale. For all reporting periods, we have not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. |
Derivatives financial instruments | Derivatives financial instruments From time to time, the Company uses derivative financial instruments to manage its exposure to foreign currency risks arising from operational activities or on certain existing assets and liabilities. The Company does not hold or issue derivative instruments for trading purposes. The Company may enter into forward foreign exchange contracts, foreign exchange options, or foreign exchange currency swap contracts to manage exposure to certain foreign currency operating transactions. These instruments may offset a portion of the foreign currency re-measurement gains or losses, or changes in fair value. The Company may also enter into above similar derivative instruments to hedge the exposure to variability in the expected cash flows of forecasted transactions such as international sales or purchases that the Company expects to receive or commit to remit foreign currencies. In these cases, the Company designates these instruments as the cash flow hedges. Derivative financial instruments are recognized initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognized immediately in earnings when such instruments are designated as fair value hedges or ineffective portion of cash flow hedges. The accumulated gain or loss from effective portions of cash flow hedges are recorded in accumulated other comprehensive income/(loss) ("AOCI") until the hedged item is recognized in earnings. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. |
Accounts Receivable, net | Accounts Receivable, net 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). The fair value of forward exchange contracts is based on broker quotes, if available. If broker quotes are not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price at the reporting date for the residual maturity of the contract using a risk-free interest rate based on government bonds. As of June 30, 2019 and 2018, 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, 2019, the Company has one derivative liability subjects to recurring fair value measurement (Level 2) with the change in fair value recognized in earnings (Note 5). 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. The Company has adopted ASC 825-10 " Financial Instruments |
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, Ever-Glory HK and Ever-Glory Supply Chain 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, Taixin and Haian Taixin is the Chinese RMB. For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Items in the cash flow statement are translated at the average exchange rate for the period. |
Lease | Lease The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the company over terms similar to the lease terms. The followings are lists of leases: (i) the terms of Shanghai LAGOGO land use right and buildings are 34 years; (ii) the terms of Kunshan logistics center and Chuzhou logistics center are 5 years; (iii) the terms of flagship stores are 3 years. The terms of stores within shopping mall are one year. The shopping malls sort the stores within shopping mall based on sales every year and the stores within shopping mall of higher sales will be arrange to the better location. If the sales do not meet the requirements of the shopping malls, the stores within shopping mall will be removed. The store within shopping mall is different from flagship store. The shopping malls count the rent of counter according to the sale but the rent of flagship store is fixed every year. The company estimates the terms of flagship store are three years according to the previous data. The company calculates the Right-Of-Use (ROU) or Lease Obligation (Obligation) of the stores within shopping mall in a floating manner because the rents of the stores within shopping mall will vary according to the sales. The rents of the stores within shopping mall will be higher if the number and sales of counters is larger, so the ROU/Obligation of the counter will be higher . |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" In October 2018, the FASB issued ASU No. 2018-17 "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities" In April 2019, the FASB issued ASU No. 2019-04 "Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, 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 condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, (In thousands of Raw materials $ 1,256 $ 6,805 Work-in-progress 15,696 3,308 Finished goods 46,175 55,816 Total inventories $ 63,127 $ 65,929 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | June 30, December 31, Bank (In thousands of Industrial and Commercial Bank of China $ 11,648 $ 14,540 Nanjing Bank 5,824 5,089 China Minsheng Bank 2,912 2,908 Bank of Communications 2,897 2,893 Shanghai Pudong Development Bank 2,617 2,613 China Everbright Bank - 1,454 HSBC 101 - $ 25,999 $ 29,497 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of pre-tax income in jurisdictions | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands of U.S. Dollars) PRC $ 3,228 $ 4,010 $ 3,605 $ 5,359 Others - (6 ) (7 ) (12 ) $ 3,228 $ 4,004 $ 3,598 $ 5,347 |
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Net operating losses for which no deferred tax assets was recognized 24.5 9.1 46.7 13.2 Other (4.4 ) (2.0 ) (8.3 ) - Effective income tax rate 45.1 % 32.1 % 63.4 % 38.2 % |
Schedule of income tax expense | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Current $ 1,785 $ 1,960 $ 1,990 $ 2,884 Deferred (330 ) (675 ) 290 (843 ) Income tax expense $ 1,455 $ 1,285 $ 2,280 $ 2,041 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 Weighted average number of common shares – Basic and diluted 14,800,140 14,795,992 14,800,140 14,795,992 Earnings per share – Basic and diluted $ 0.13 $ 0.19 $ 0.09 $ 0.24 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Summary of other expenses due to related parties | Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands of U.S. Dollars) Chuzhou Huarui 35 51 88 109 Kunshan Enjin 22 14 44 27 Total $ 57 $ 65 $ 132 $ 136 |
Summary of sub-contracts with related parties | Three Months Ended Six Months Ended 2019 2018 2019 2018 (In thousands of U.S. Dollars) Chuzhou Huarui $ 1,960 $ 1,006 $ 3,467 $ 1,873 Fengyang Huarui 442 567 548 1,051 Nanjing Ever-Kyowa 408 326 755 675 Ever-Glory Vietnam 2,469 3,260 5,048 5,174 Nanjing Knitting 600 - 600 - EsCeLav 13 21 101 21 Jiangsu Ever-Glory 45 17 470 21 $ 5,937 $ 5,197 $ 10,989 $ 8,815 |
Summary of accounts payable to related parties | 2019 2018 (In thousands of Ever-Glory Vietnam $ 1,769 1,863 Fengyang Huarui 34 622 Nanjing Ever-Kyowa 707 580 Chuzhou Huarui 1,062 888 Nanjing Knitting 283 171 Jiangsu Ever-Glory 941 632 Total $ 4,796 $ 4,756 |
Summary of amounts due from related party current assets | 2019 2018 (In thousands of Jiangsu Ever-Glory $ 144 $ 122 Esc'elav - 70 Total $ 144 $ 192 |
Concentrations and Risks (Table
Concentrations and Risks (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Company's revenues as per geographic areas | Three months ended Six months ended 2019 2018 2019 2018 (In thousands of U.S. Dollars) The People's Republic of China $ 6,491 $ 9,131 $ 17,246 $ 13,342 Hong Kong China 6,463 7,418 7,717 12,556 Germany 877 899 1,726 2,765 United Kingdom 2,038 2,881 2,838 5,099 Europe-Other 4,224 5,833 9,453 10,285 Japan 1,311 1,881 6,248 4,318 United States 15,847 10,771 20,125 15,705 Total wholesale business 37,251 38,814 65,353 64,070 Retail business 40,065 49,727 99,919 117,256 Total $ 77,316 $ 88,541 $ 165,272 $ 181,326 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Summary of financial and operating information | Wholesale Retail Total (In thousands of U.S. Dollars) Six months ended June 30, 2019 Segment profit or loss: Net revenue from external customers $ 65,353 99,919 165,272 Income from operations $ 2,374 397 2,771 Interest income $ 466 18 484 Interest expense $ 572 199 771 Depreciation and amortization $ 473 8,740 9,213 Income tax expense $ 1,475 805 2,280 Segment assets: Additions to property, plant and equipment 549 3,533 4,082 Total assets 77,218 188,541 265,759 Six months ended June 30, 2018 Segment profit or loss: Net revenue from external customers $ 64,070 117,256 181,326 Income from operations $ 2,634 1,940 4,574 Interest income $ 663 33 696 Interest expense $ 782 142 924 Depreciation and amortization $ 602 4,301 4,903 Income tax expense $ 714 1,327 2,041 Segment assets: Additions to property, plant and equipment 556 5,739 6,295 Total assets 91,483 129,707 221,190 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended June 30, 2019 Segment profit or loss: Net revenue from external customers $ 37,251 40,065 77,316 Income from operations $ 1,605 345 1,950 Interest income $ 268 9 277 Interest expense $ 310 98 408 Depreciation and amortization $ 182 2,084 2,266 Income tax expense $ 1,255 200 1,455 Three months ended June 30, 2018 Segment profit or loss: Net revenue from external customers $ 38,814 49,727 88,541 Income from operations $ 1,538 1,591 3,129 Interest income $ 354 16 370 Interest expense $ 291 69 360 Depreciation and amortization $ 297 2,069 2,366 Income tax expense $ 481 804 1,285 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of inventories | ||
Raw materials | $ 1,256 | $ 6,805 |
Work-in-progress | 15,696 | 3,308 |
Finished goods | 46,175 | 55,816 |
Total inventories | $ 63,127 | $ 65,929 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of short term bank loans | ||
Bank loans | $ 25,999 | $ 29,497 |
Industrial and Commercial Bank Of China [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 11,648 | 14,540 |
Nanjing Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 5,824 | 5,089 |
China Minsheng Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,912 | 2,908 |
Bank of Communications [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,897 | 2,893 |
Shanghai Pudong Development Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 2,617 | 2,613 |
China Everbright Bank [Member] | ||
Schedule of short term bank loans | ||
Bank loans | 1,454 | |
HSBC [Member] | ||
Schedule of short term bank loans | ||
Bank loans | $ 101 |
Bank Loans (Details Textual)
Bank Loans (Details Textual) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019CNY (¥) | Mar. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2018CNY (¥) | Jun. 30, 2018CNY (¥) | May 31, 2018USD ($) | May 31, 2018CNY (¥) | Dec. 31, 2016USD ($) | |
Bank Loans (Textual) | ||||||||||||||
Interest expense on bank loans | $ 400 | $ 300 | $ 800 | $ 900 | ||||||||||
HSBC [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 2,500 | |||||||||||||
Unused line of credit | 2,300 | $ 2,300 | ||||||||||||
Line of credit annual interest rates | 3.20% | |||||||||||||
Borrowed loans from related party | 200 | $ 200 | ||||||||||||
Accounts receivable from our wholesale customers | 100 | 100 | ||||||||||||
Ever Glory Apparel [Member] | Nanjing Bank [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | 2,900 | 2,900 | $ 8,700 | |||||||||||
Unused line of credit | 7,300 | $ 7,300 | ||||||||||||
Line of credit extended maturity date | Jun. 30, 2020 | |||||||||||||
Line of credit annual interest rates | 5.00% | |||||||||||||
Borrowed loans from related party | 5,800 | $ 5,800 | ||||||||||||
Line of credit extended maturity date, description | Due on variable dates from September 2019 to June 2020. | |||||||||||||
Ever Glory Apparel [Member] | Nanjing Bank [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | ¥ | ¥ 60,000 | |||||||||||||
Borrowed loans from related party | ¥ | ¥ 40,000 | |||||||||||||
Ever Glory Apparel [Member] | Industrial and Commercial Bank Of China [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 14,600 | |||||||||||||
Unused line of credit | 8,800 | $ 8,800 | ||||||||||||
Line of credit extended maturity date | Jul. 31, 2019 | |||||||||||||
Borrowed loans from related party | 5,800 | $ 5,800 | ||||||||||||
Ever Glory Apparel [Member] | Industrial and Commercial Bank Of China [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Borrowed loans from related party | ¥ | 40,000 | |||||||||||||
Ever Glory Apparel [Member] | Goldenway [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit extended maturity date | Nov. 30, 2019 | |||||||||||||
Line of credit annual interest rates | 3.92% | |||||||||||||
Ever Glory Apparel [Member] | La Go Go [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | 2,900 | 2,900 | 2,900 | $ 2,900 | ||||||||||
Unused line of credit | 2,900 | $ 2,900 | ||||||||||||
Line of credit extended maturity date | Jun. 30, 2019 | |||||||||||||
Ever Glory Apparel [Member] | La Go Go [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 20,000 | $ 20,000 | $ 19,900 | ¥ 20,000 | ||||||||||
Ever Glory Apparel [Member] | China Minsheng Banking [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | 2,900 | $ 2,900 | ||||||||||||
Line of credit extended maturity date | Oct. 3, 2019 | |||||||||||||
Line of credit annual interest rates | 4.79% | |||||||||||||
Ever Glory Apparel [Member] | China Minsheng Banking [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | ¥ | 20,000 | ¥ 20,000 | ||||||||||||
Borrowed loans from related party | ¥ | 20,000 | |||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 2,900 | |||||||||||||
Unused line of credit | 300 | $ 300 | ||||||||||||
Line of credit extended maturity date | Nov. 30, 2019 | |||||||||||||
Line of credit annual interest rates | 4.57% | |||||||||||||
Borrowed loans from related party | $ 2,600 | |||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | ¥ | 20,000 | |||||||||||||
Borrowed loans from related party | ¥ | 18,000 | |||||||||||||
Ever Glory Apparel [Member] | Bank Of China [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 8,700 | |||||||||||||
Unused line of credit | 2,900 | $ 2,900 | ||||||||||||
Ever Glory Apparel [Member] | Bank Of China [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 60,000 | |||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | Industrial and Commercial Bank Of China [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit annual interest rates | 4.57% | |||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | Industrial and Commercial Bank Of China [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit annual interest rates | 4.70% | |||||||||||||
Nanjing Bank [Member] | Goldenway [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | $ 7,300 | |||||||||||||
Nanjing Bank [Member] | Goldenway [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Line of credit agreement amount | ¥ | ¥ 50,000 | |||||||||||||
Nanjing Bank [Member] | Bank Of Communications [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Due date of revolving line of credit agreement | November 2019 to January 2020 | |||||||||||||
Line of credit annual interest rates | 4.57% | |||||||||||||
Borrowed loans from related party | 2,900 | $ 2,900 | ||||||||||||
Nanjing Bank [Member] | Bank Of Communications [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Borrowed loans from related party | ¥ | 19,900 | |||||||||||||
Goldenway [Member] | Industrial and Commercial Bank Of China [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Borrowed loans from related party | $ 5,800 | $ 5,800 | ||||||||||||
Goldenway [Member] | Industrial and Commercial Bank Of China [Member] | CNY [Member] | ||||||||||||||
Bank Loans (Textual) | ||||||||||||||
Borrowed loans from related party | ¥ | ¥ 40,000 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative Liability (Textual) | |
Foreign currency swap contracts, description | Ever-Glory Apparel entered into a foreign currency swap contract to exchange $6.0 million for equivalent RMB with Bank of China in May and entered into a foreign currency swap contract to exchange $3.0 million for equivalent RMB with Industrial and Commercial Bank of China in June. The terms of two foreign currency contracts are both six months. Ever-Glory Apparel and the banks swapped two currencies by same pre-determined exchange rate at the beginning and end of the contracts. During the period, the Company pays annual interest of 1.43% for the RMB received and receives 0 interest for the USD exchanged. If the Company failed to execute the exchange at the expiration of contracts, the banks would sell the USD at the market rate then the difference in RMB will be converted into bank loan for the Company. As of June 30, 2018, the fair value of principal amounts are included in other receivable ($9.0 million plus unrealized gain) and other payables (equivalent RMB payables) in the consolidated balance sheets, and unrealized gain of $0.27 million for the six months ended June 30, 2018 is recognized in the income from operations. |
Forward foreign exchange contract, description | The Company had one outstanding forward foreign exchange contract (sell EUR dollars for RMB), with total notional amount of €0.42 million and two outstanding forward foreign exchange contracts (sell USD dollars for RMB), with total notional amount of $17.0 million according to the amounts of orders. These contracts have aggregate unrealized loss of $0.49 million in fair value recognized as derivatives financial instruments liabilities and accumulated other comprehensive income (loss) in the consolidated balance sheets. |
Outstanding forward foreign exchange contracts | $ 10,000 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Leases (Textual) | ||
Right-of-use assets | $ 51,623 | |
Current operating lease liabilities | 42,808 | |
Non-current operating lease liabilities | 8,839 | |
Operating lease payment | 10,200 | |
Leases recognized cost of revenues | 9,800 | |
General administrative expenses | $ 400 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ 3,228 | $ 4,004 | $ 3,598 | $ 5,347 |
PRC [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | 3,228 | 4,010 | 3,605 | 5,359 |
Others [Member] | ||||
Summary of Pre-tax income in jurisdictions | ||||
Pre-tax income | $ (6) | $ (7) | $ (12) |
Income Tax (Details 1)
Income Tax (Details 1) - Prc [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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% |
Net operating losses for which no deferred tax assets was recognized | 24.50% | 9.10% | 46.70% | 13.20% |
Other | (4.40%) | (2.00%) | (8.30%) | |
Effective income tax rate | 45.10% | 32.10% | 63.40% | 38.20% |
Income Tax (Details 2)
Income Tax (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of income tax expense | ||||
Current | $ 1,785 | $ 1,960 | $ 1,990 | $ 2,884 |
Deferred | (330) | (675) | (1,461) | (843) |
Income tax expense | $ 1,455 | $ 1,285 | $ 2,280 | $ 2,041 |
Income Tax (Details Textual)
Income Tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
PRC [Member] | ||||
Income Tax (Textual) | ||||
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax rate for dividends distribution | 10.00% | |||
HONG KONG | ||||
Income Tax (Textual) | ||||
PRC statutory rate | 16.50% | |||
Maximum [Member] | ||||
Income Tax (Textual) | ||||
Effective income tax reduction, percent | 15.00% | |||
Minimum [Member] | ||||
Income Tax (Textual) | ||||
Effective income tax reduction, percent | 9.00% | |||
Xizang (Tibet) [Member] | ||||
Income Tax (Textual) | ||||
PRC statutory rate | 15.00% | |||
Non-U.S. subsidiaries [Member] | ||||
Income Tax (Textual) | ||||
U.S. deferred income taxes | $ 107,200 | |||
Income tax, description | The statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic and diluted earnings per share | ||||
Weighted average number of common shares - Basic and diluted | 14,800,140 | 14,795,992 | 14,800,140 | 14,795,992 |
Earnings per share - Basic and diluted | $ 0.13 | $ 0.19 | $ 0.09 | $ 0.24 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Two Independent Directors [Member] | 1 Months Ended | |
Jan. 31, 2019Directors$ / sharesshares | Jul. 26, 2018Directors$ / sharesshares | |
Stockholders' Equity (Textual) | ||
Common stock shares issued to independent directors | shares | 1,942 | 2,206 |
Average market price of the common stock for the five days before the grant date | $ / shares | $ 3.8 | $ 3.39 |
Number of days used to calculation average market price of common stock, description | Five days before the grant date. | Five days before the grant date. |
Number of directors | Directors | 2 | 2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of other expenses due to related parties | ||||
Total | $ 57 | $ 65 | $ 132 | $ 136 |
Chuzhou Huarui [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | 35 | 51 | 88 | 109 |
Kunshan Enjin [Member] | ||||
Summary of other expenses due to related parties | ||||
Total | $ 22 | $ 14 | $ 44 | $ 27 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sub-contracts with related parties | ||||
Total | $ 5,937 | $ 5,197 | $ 10,989 | $ 8,815 |
Chuzhou Huarui [Member] | ||||
Sub-contracts with related parties | ||||
Total | 1,960 | 1,006 | 3,467 | 1,873 |
Fengyang Huarui [Member] | ||||
Sub-contracts with related parties | ||||
Total | 442 | 567 | 548 | 1,051 |
Nanjing Ever-Kyowa [Member] | ||||
Sub-contracts with related parties | ||||
Total | 408 | 326 | 755 | 675 |
Ever-Glory Vietnam [Member] | ||||
Sub-contracts with related parties | ||||
Total | 2,469 | 3,260 | 5,048 | 5,174 |
Nanjing Knitting [Member] | ||||
Sub-contracts with related parties | ||||
Total | 600 | 600 | ||
EsCeLav [Member] | ||||
Sub-contracts with related parties | ||||
Total | 13 | 21 | 101 | 21 |
Jiangsu Ever-Glory [Member] | ||||
Sub-contracts with related parties | ||||
Total | $ 45 | $ 17 | $ 470 | $ 21 |
Related Party Transactions (D_3
Related Party Transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of accounts payable - related parties | ||
Total | $ 4,796 | $ 4,756 |
Ever-Glory Vietnam [Member] | ||
Summary of accounts payable - related parties | ||
Total | 1,769 | 1,863 |
Fengyang Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 34 | 622 |
Nanjing Knitting [Member] | ||
Summary of accounts payable - related parties | ||
Total | 283 | 580 |
Chuzhou Huarui [Member] | ||
Summary of accounts payable - related parties | ||
Total | 1,062 | 888 |
Nanjing Ever Kyowa [Member] | ||
Summary of accounts payable - related parties | ||
Total | 707 | 171 |
Jiangsu Ever-Glory [Member] | ||
Summary of accounts payable - related parties | ||
Total | $ 941 | $ 632 |
Related Party Transactions (D_4
Related Party Transactions (Details 3) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of amounts due from related parties | ||
Total | $ 144 | $ 192 |
Jiangsu Ever-Glory [Member] | ||
Summary of amounts due from related parties | ||
Total | 144 | |
Esc'elav [Member] | ||
Summary of amounts due from related parties | ||
Total | $ 122 | $ 70 |
Related Party Transactions (D_5
Related Party Transactions (Details Textual) ¥ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jun. 30, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Related Party Transactions (Textual) | ||||||||||
Net profit (loss) | $ 1,856 | $ 2,776 | $ 1,335 | $ 3,591 | ||||||
Sub-contracts with related parties | 5,937 | 5,197 | 10,989 | 8,815 | ||||||
Outstanding due from Jiangsu Ever-Glory | 7,863 | 7,863 | $ 10,354 | |||||||
Interest income | 100 | 200 | $ 200 | 400 | ||||||
Acquired interest | 21.70% | 21.70% | ||||||||
Amounts due from related party under counter guarantee agreement, description | The amount of the counter-guarantee was $7.3 million (RMB 50.0 million) (the difference represents currency exchange adjustment of $0.1 million), which was 21.7% of the aggregate amount of lines of credit. The increase of the percentage in this quarter was mainly due to China's credit tightening policy. Obtaining bank loan requires a higher guarantee deposit in this quarter. This amount plus accrued interest of $0.6 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2019 and December 31, 2018, the amount classified as a reduction of equity was $7.9 million and $10.4 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% as the bank benchmark interest rate decreased. | The amount of the counter-guarantee was $7.3 million (RMB 50.0 million) (the difference represents currency exchange adjustment of $0.1 million), which was 21.7% of the aggregate amount of lines of credit. The increase of the percentage in this quarter was mainly due to China's credit tightening policy. Obtaining bank loan requires a higher guarantee deposit in this quarter. This amount plus accrued interest of $0.6 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At June 30, 2019 and December 31, 2018, the amount classified as a reduction of equity was $7.9 million and $10.4 million, respectively. Interest of 0.5% is charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% as the bank benchmark interest rate decreased. | ||||||||
CNY [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Outstanding due from Jiangsu Ever-Glory | ¥ | ¥ 68,200 | |||||||||
JiangsuWubijia Trading Company Limited [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Company received amount from related party | 14,176 | 45,655 | $ 17,919 | 51,541 | ||||||
Amount paid through the consignment | 13,248 | 39,086 | 20,130 | 39,318 | ||||||
Net profit (loss) | 928 | 6,570 | (2,212) | (12,223) | ||||||
Mr. Kang [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Guarantee on lines of credit | $ 17,000 | 14,500 | ||||||||
Shareholding pattern, description | Mr. Huake Kang, Mr. Kang's son, acquired 83% interest of Ever-Glory Enterprises and became its sole director in 2014. | Mr. Huake Kang, Mr. Kang's son, acquired 83% interest of Ever-Glory Enterprises and became its sole director in 2014. | ||||||||
Mr. Kang [Member] | CNY [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Guarantee on lines of credit | ¥ | ¥ 116,800 | ¥ 100,000 | ||||||||
Fengyang Huarui [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 442 | 567 | $ 548 | 1,051 | ||||||
Ever Glory Vietnam [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 2,469 | 3,260 | 5,048 | 5,174 | ||||||
Nanjing Ever Kyowa [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 408 | 326 | 755 | 675 | ||||||
Chuzhou Huarui [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 1,960 | 1,006 | 3,467 | 1,873 | ||||||
Escelav [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Sub-contracts with related parties | 13 | 21 | 101 | 21 | ||||||
Nanjing Knitting [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Purchase of raw material | 400 | 600 | 1,520 | 1,850 | ||||||
Sub-contracts with related parties | 600 | 600 | ||||||||
Lines of credit | 33,400 | |||||||||
Nanjing Knitting [Member] | CNY [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Lines of credit | ¥ | ¥ 230,000 | |||||||||
Jiangsu Ever Glory [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Purchase of raw material | 0 | 0 | 0 | 300 | ||||||
Sub-contracts with related parties | 45 | 17 | 470 | 21 | ||||||
Company sold raw materials | 100 | $ 100 | 100 | $ 100 | ||||||
Lines of credit | 33,500 | 33,400 | ||||||||
Guarantee on lines of credit | 29,900 | 29,900 | ||||||||
Outstanding due from Jiangsu Ever-Glory | $ 5,500 | $ 5,500 | ||||||||
Repayment received under counter guarantee | $ 8,100 | |||||||||
Jiangsu Ever Glory [Member] | CNY [Member] | ||||||||||
Related Party Transactions (Textual) | ||||||||||
Lines of credit | ¥ | 230,000 | |||||||||
Guarantee on lines of credit | ¥ | ¥ 205,500 | 205,500 | ||||||||
Outstanding due from Jiangsu Ever-Glory | ¥ | ¥ 37,000 | |||||||||
Repayment received under counter guarantee | ¥ | ¥ 55,300 |
Concentrations and Risks (Detai
Concentrations and Risks (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues earned in geographic areas | ||||
Revenues | $ 77,316 | $ 88,541 | $ 165,272 | $ 181,326 |
Wholesale Business [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 37,251 | 38,814 | 65,353 | 64,070 |
Retail Business [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 40,065 | 49,727 | 99,919 | 117,256 |
The People’s Republic of China [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 6,491 | 9,131 | 17,246 | 13,342 |
Hong Kong China [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 6,463 | 7,418 | 7,717 | 12,556 |
Germany [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 877 | 899 | 1,726 | 2,765 |
United Kingdom | ||||
Revenues earned in geographic areas | ||||
Revenues | 2,038 | 2,881 | 2,838 | 5,099 |
Europe-Other [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 4,224 | 5,833 | 9,453 | 10,285 |
Japan [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | 1,311 | 1,881 | 6,248 | 4,318 |
United States [Member] | ||||
Revenues earned in geographic areas | ||||
Revenues | $ 15,847 | $ 10,771 | $ 20,125 | $ 15,705 |
Concentrations and Risks (Det_2
Concentrations and Risks (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Concentrations and Risks (Textual) | |||||
Allowance for doubtful accounts | $ 5,100 | $ 5,100 | $ 5,900 | ||
Concentration risk, description | For the wholesale business, the Company did not rely on any finished goods supplier that represented more than 10% of the total raw material purchases | ||||
Raw Material Suppliers One [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 32.00% | 31.40% | |||
Raw Material Supplier Two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 31.00% | 31.20% | |||
Raw Material Supplier Three [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 21.00% | ||||
Revenues [Membe] | Wholesale Business One [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 8.00% | 9.68% | 16.00% | 8.97% | |
Revenues [Membe] | Wholesale Business Two [Member] | |||||
Concentrations and Risks (Textual) | |||||
Concentration risk, percentage | 14.00% | 6.60% | 10.00% |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment profit or loss: | |||||
Net revenue from external customers | $ 77,316 | $ 88,541 | $ 165,272 | $ 181,326 | |
Income from operations | 1,950 | 3,129 | 2,771 | 4,574 | |
Interest income | 277 | 370 | 484 | 696 | |
Interest expense | 408 | 360 | 771 | 924 | |
Depreciation and amortization | 2,266 | 2,366 | 4,491 | 4,903 | |
Income tax expense | 1,455 | 1,285 | 2,280 | 2,041 | |
Segment assets: | |||||
Additions to property, plant and equipment | 4,082 | 6,295 | |||
Total assets | 265,759 | 221,190 | 265,759 | 221,190 | $ 252,271 |
Wholesale Segment [Member] | |||||
Segment profit or loss: | |||||
Net revenue from external customers | 37,251 | 38,814 | 65,353 | 64,070 | |
Income from operations | 1,605 | 1,538 | 2,374 | 2,634 | |
Interest income | 268 | 354 | 466 | 663 | |
Interest expense | 310 | 291 | 572 | 782 | |
Depreciation and amortization | 182 | 297 | 473 | 602 | |
Income tax expense | 1,255 | 481 | 1,475 | 714 | |
Segment assets: | |||||
Additions to property, plant and equipment | 549 | 556 | |||
Total assets | 77,218 | 91,483 | 77,218 | 91,483 | |
Retail Segment [Member] | |||||
Segment profit or loss: | |||||
Net revenue from external customers | 40,065 | 49,727 | 99,919 | 117,256 | |
Income from operations | 345 | 1,591 | 397 | 1,940 | |
Interest income | 9 | 16 | 18 | 33 | |
Interest expense | 98 | 69 | 199 | 142 | |
Depreciation and amortization | 2,084 | 2,069 | 8,740 | 4,301 | |
Income tax expense | 200 | 804 | 805 | 1,327 | |
Segment assets: | |||||
Additions to property, plant and equipment | 3,533 | 5,739 | |||
Total assets | $ 188,541 | $ 129,707 | $ 188,541 | $ 129,707 |
Segments (Details Textual)
Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segments (Textual) | |
Number of segments | 2 |