Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Trading Symbol | EVK | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,812,312 | |
Amendment Flag | false | |
Entity Central Index Key | 0000943184 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-28806 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 65-0420146 | |
Entity Address, Address Line One | Ever-Glory Commercial Center | |
Entity Address, Address Line Two | 509 Chengxin Road, Jiangning Development Zone | |
Entity Address, City or Town | Nanjing | |
Entity Address, Country | CN | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ | |
City Area Code | 86 | |
Entity Address, Postal Zip Code | NA | |
Local Phone Number | 25-5209-6831 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 48,336 | $ 81,865 |
Restricted cash | 43,176 | 39,858 |
Trading securities | 3,068 | 1,792 |
Accounts receivable, net | 61,525 | 53,285 |
Inventories | 67,275 | 53,893 |
Advances on inventory purchases | 9,864 | 10,261 |
Value added tax receivable | 2,484 | 1,244 |
Other receivables and prepaid expenses | 6,638 | 5,479 |
Amounts due from related parties | 1,994 | 567 |
Total Current Assets | 244,360 | 248,244 |
NON-CURRENT ASSETS | ||
Equity security investment | 5,903 | 3,932 |
Intangible assets, net | 4,686 | 4,794 |
Property and equipment, net | 32,747 | 32,164 |
Operating lease right-of-use assets | 49,002 | 41,690 |
Deferred tax assets | 265 | 902 |
Other non-current assets | 771 | |
Total Non-Current Assets | 93,374 | 83,482 |
TOTAL ASSETS | 337,734 | 331,726 |
CURRENT LIABILITIES | ||
Bank loans | 67,848 | 65,919 |
Accounts payable | 73,120 | 67,762 |
Accounts payable and other payables – related parties | 1,016 | 3,764 |
Other payables and accrued liabilities | 13,758 | 16,073 |
Value added and other taxes payable | 554 | 909 |
Income tax payable | 1,900 | 1,062 |
Current operating lease liabilities | 40,590 | 33,481 |
Total Current Liabilities | 198,786 | 188,970 |
NON-CURRENT LIABILITIES | ||
Non-current operating lease liabilities | 8,549 | 8,307 |
TOTAL LIABILITIES | 207,335 | 197,277 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,812,312 and 14,809,160 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively) | 15 | 15 |
Additional paid-in capital | 3,660 | 3,650 |
Retained earnings | 103,013 | 109,171 |
Statutory reserve | 20,376 | 20,376 |
Accumulated other comprehensive income | 5,610 | 4,590 |
Amounts due from related party | (2,275) | (3,353) |
Total equity | 130,399 | 134,449 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 337,734 | $ 331,726 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 14,812,312 | 14,809,160 |
Common stock, shares outstanding | 14,812,312 | 14,809,160 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
NET SALES | $ 94,406 | $ 79,908 | $ 225,776 | $ 188,350 |
COST OF SALES | 71,196 | 56,235 | 161,738 | 134,193 |
GROSS PROFIT | 23,210 | 23,673 | 64,038 | 54,157 |
OPERATING EXPENSES | ||||
Selling expenses | 14,443 | 12,996 | 44,495 | 39,101 |
General and administrative expenses | 9,467 | 7,818 | 24,980 | 19,574 |
Total Operating Expenses | 23,910 | 20,814 | 69,475 | 58,675 |
(LOSS) INCOME FROM OPERATIONS | (700) | 2,859 | (5,437) | (4,518) |
OTHER INCOME (EXPENSES) | ||||
Interest income | 176 | 313 | 928 | 930 |
Interest expense | (1,218) | (700) | (1,909) | (1,607) |
Government subsidy | 340 | 235 | 842 | 926 |
(Loss) Gain from changes in fair values of investments | (123) | (4) | 2,151 | |
Other income (expenses) | 253 | 343 | 1,027 | 1,310 |
Total Other Income (expenses), Net | (572) | 187 | 3,039 | 1,559 |
(LOSS) INCOME BEFORE INCOME TAX EXPENSE | (1,272) | 3,046 | (2,398) | (2,959) |
Income tax expense | (1,945) | (822) | (3,759) | (1,315) |
NET (LOSS) INCOME | (3,217) | 2,224 | (6,157) | (4,274) |
Net loss attributable to the non-controlling interest | (8) | (4) | ||
NET LOSS ATTRIBUTABLE TO THE COMPANY | (3,217) | 2,216 | (6,157) | (4,278) |
NET (LOSS) INCOME | (3,217) | 2,224 | (6,157) | (4,274) |
Foreign currency translation gain (loss) | (1,061) | 4,664 | 1,020 | 2,964 |
COMPREHENSIVE INCOME (LOSS) | (4,278) | 6,888 | (5,137) | (1,310) |
Comprehensive loss attributable to the non-controlling interest | 51 | 53 | ||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ (4,278) | $ 6,939 | $ (5,137) | $ (1,257) |
LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS | ||||
Basic and diluted (in Dollars per share) | $ (0.22) | $ 0.15 | $ (0.42) | $ (0.29) |
Weighted average number of shares outstanding Basic and diluted (in Shares) | 14,811,073 | 14,808,737 | 14,810,585 | 14,805,987 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained Earnings Unrestricted | Retained Earnings Statutory reserve | Accumulated other Comprehensive loss | Amounts due from related party | Total equity attributable to stockholders of the Company | Non- controlling Interest |
Balance at Dec. 31, 2019 | $ 119,150 | $ 15 | $ 3,640 | $ 106,328 | $ 19,939 | $ (4,330) | $ (4,932) | $ 120,660 | $ (1,510) |
Balance (in Shares) at Dec. 31, 2019 | 14,801,770 | ||||||||
Stock issued for compensation | 5 | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 3,062 | ||||||||
Net (Loss) income | (2,698) | (2,701) | (2,701) | 3 | |||||
Net cash received from related party under counter guarantee agreement | 785 | 785 | 785 | ||||||
Foreign currency translation gain (loss) | (1,437) | (1,440) | (1,440) | 3 | |||||
Balance at Mar. 31, 2020 | 115,805 | $ 15 | 3,645 | 103,627 | 19,939 | (5,770) | (4,147) | 117,309 | (1,504) |
Balance (in Shares) at Mar. 31, 2020 | 14,804,832 | ||||||||
Net (Loss) income | (3,800) | (3,794) | (3,794) | (6) | |||||
Net cash received from related party under counter guarantee agreement | 151 | 151 | 151 | ||||||
Foreign currency translation gain (loss) | (263) | (261) | (261) | (2) | |||||
Balance at Jun. 30, 2020 | 111,893 | $ 15 | 3,645 | 99,833 | 19,939 | (6,031) | (3,996) | 113,405 | (1,512) |
Balance (in Shares) at Jun. 30, 2020 | 14,804,832 | ||||||||
Stock issued for compensation | 5 | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 4,328 | ||||||||
Net (Loss) income | 2,224 | 2,216 | 2,216 | 8 | |||||
Net cash received from related party under counter guarantee agreement | 566 | 566 | 566 | ||||||
Foreign currency translation gain (loss) | 4,664 | 4,723 | 4,723 | (59) | |||||
Balance at Sep. 30, 2020 | 119,352 | $ 15 | 3,650 | 102,049 | 19,939 | (1,308) | (3,430) | 120,915 | $ (1,563) |
Balance (in Shares) at Sep. 30, 2020 | 14,809,160 | ||||||||
Balance at Dec. 31, 2020 | 134,449 | $ 15 | 3,650 | 109,171 | 20,376 | 4,590 | (3,353) | 134,449 | |
Balance (in Shares) at Dec. 31, 2020 | 14,809,160 | ||||||||
Stock issued for compensation | 5 | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 1,500 | ||||||||
Net (Loss) income | (1,170) | (1,170) | (1,170) | ||||||
Net cash received from related party under counter guarantee agreement | 379 | 379 | 379 | ||||||
Foreign currency translation gain (loss) | (1,352) | (1,352) | (1,352) | ||||||
Balance at Mar. 31, 2021 | 132,311 | $ 15 | 3,655 | 108,001 | 20,376 | 3,238 | (2,974) | 132,311 | |
Balance (in Shares) at Mar. 31, 2021 | 14,810,660 | ||||||||
Net (Loss) income | (1,771) | (1,771) | (1,771) | ||||||
Net cash received from related party under counter guarantee agreement | 386 | 386 | 386 | ||||||
Foreign currency translation gain (loss) | 3,434 | 3,434 | 3,434 | ||||||
Balance at Jun. 30, 2021 | 134,360 | $ 15 | 3,655 | 106,230 | 20,376 | 6,672 | (2,588) | 134,360 | |
Balance (in Shares) at Jun. 30, 2021 | 14,810,660 | ||||||||
Stock issued for compensation | 5 | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 1,652 | ||||||||
Net (Loss) income | (3,217) | (3,217) | (3,217) | ||||||
Net cash received from related party under counter guarantee agreement | 313 | 313 | 313 | ||||||
Foreign currency translation gain (loss) | (1,062) | (1,062) | (1,062) | ||||||
Balance at Sep. 30, 2021 | $ 130,399 | $ 15 | $ 3,660 | $ 103,013 | $ 20,376 | $ 5,610 | $ (2,275) | $ 130,399 | |
Balance (in Shares) at Sep. 30, 2021 | 14,812,312 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (6,157) | $ (4,274) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 4,384 | 4,114 |
Loss from sale of property and equipment | 590 | 283 |
Provision of bad debt allowance | 676 | 683 |
Write off obsolete inventories | 7,595 | 5,786 |
Changes in fair value of investment | (2,151) | 13 |
Deferred income tax | 644 | (165) |
Stock-based compensation | 10 | 10 |
Changes in operating assets and liabilities | ||
Accounts receivable | (8,614) | 15,571 |
Inventories | (20,702) | 16,135 |
Value added tax receivable | (1,235) | (577) |
Other receivables and prepaid expenses | (1,096) | 50 |
Advances on inventory purchases | 586 | 2,461 |
Amounts due from related parties | (1,514) | (848) |
Accounts payable | 5,930 | (7,842) |
Accounts payable and other payables- related parties | (3,204) | (1,112) |
Other payables and accrued liabilities | (3,332) | (6,093) |
Value added and other taxes payable | (360) | 467 |
Income tax payable | 831 | (64) |
Net cash (used in) provided by operating activities | (27,119) | 24,598 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (5,109) | (2,769) |
Net (purchase) sale of trading securities | (1,077) | (901) |
Investment payment | (773) | (2,860) |
Net cash (used in) investing activities | (6,959) | (6,530) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 56,110 | 66,599 |
Repayment of bank loans | (54,565) | (49,278) |
Net collection (advance) of amounts due from related party (equity) | 1,630 | 1,618 |
Net cash used in (provided by) financing activities | 3,175 | 18,939 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 693 | 2,740 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (30,211) | 39,747 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 121,723 | 50,755 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 91,512 | 90,502 |
Reconciliation of cash, cash equivalents and restricted cash reported within their consolidated balance sheets: | ||
Cash and Cash Equivalents | 48,336 | 69,950 |
Restricted cash | 43,176 | 20,552 |
Total | 91,512 | 90,502 |
Cash paid during the period for: | ||
Interest | 1,909 | 1,607 |
Income taxes | $ 2,272 | $ 1,455 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NOTE 1 Nature of Operations and Basis of Presentation Ever-Glory International Group, Inc. (the “Company” or “We” or “Ours”), 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”), Haian Tai Xin Garments Trading Company Limited (“Haian Tai Xin”), Ever-Glory International Group Apparel Inc. (“Ever-Glory Apparel”), Chuzhou Huirui Garments Co. Ltd. (“Huirui”), and Nanjing Rui Lian Technology Company Limited (“Nanjing Rui Lian”), and the Company’s wholly-owned Samoa subsidiary, Ever-Glory International Group (HK) Ltd. (“Ever-Glory HK”) and the Company’s wholly-owned Hong Kong subsidiary, 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 GO Fashion Company Limited (“Shanghai LA GO GO”), Jiangsu LA GO GO Fashion Company Limited (“Jiangsu LA GO GO”), Tianjin LA GO GO Fashion Company Limited (“Tianjin LA GO GO”), Shanghai Ya Lan Fashion Company Limited (“Ya Lan”) and Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”). Shanghai Yiduo Fashion Company Limited, the only then subsidiary with non-controlling interests, was deconsolidated from the financial statements as of December 31, 2020 as a result of bankruptcy liquidation. He Meida was closed in April 2021, which is not a strategic shift and does not have major effect on the Company’s operations or financial results and the disposal loss was immaterial to the financial statements. 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 September 30, 2021, the condensed consolidated statements of operations and comprehensive income (loss), condensed consolidated statements of equity, and condensed consolidated statements of cash flows for the three and nine months ended September 30, 2021 and 2020. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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 nine months ended September 30, 2021 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, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SIGNIFICANT ACCOUNTING POLICIES The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC (“2020 Form 10-K.”) Use of Estimates In preparing our condensed consolidated financial statements, we use estimates and assumptions that affect the reported amounts and disclosures. Our estimates are often based on complex judgments, probabilities and assumptions that we believe to be reasonable, but that are inherently uncertain and unpredictable. We are also subject to other risks and uncertainties that may cause actual results to differ from estimated amounts. Significant estimates include the assumptions used to value tax liabilities, derivative financial instruments, the estimates of the allowance for deferred tax assets, and the accounts receivable allowance, and impairment of long-lived assets and inventory write off. 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” The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 INVESTMENTS Trading securities Investments in equity securities of certain US and HK public companies are accounted for as trading securities and measured subsequently at fair value in the consolidated balance sheets. Net gains and losses recognized during the three and nine-month periods are summarized as follows (In thousands of U.S. Dollars). Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Net (loss) gains recognized during the period on equity securities (121) (14 ) 200 (14 ) Less: Net gains recognized during the period on equity securities sold during the period - (1 ) 54 (1 ) Unrealized (loss) gains recognized during the reporting period on equity securities still held at the reporting date $ (121) $ (13 ) $ 146 $ (13 ) Equity security investment In August 2020, Ever-Glory Apparel invested $2.9 million (RMB 20.0 million) for 2.38% ownership in a partnership (“Partnership”). In December 2020, the Partnership invested in a public company in China. As a limited partner, the Company does not have ability to exercise significant influence due to lack of kick-out rights through voting interests. In the meantime, the Company entered an agreement with the general partner of the Partnership (GP) and an individual that the Company has the privilege to sell the ownership interests in the Partnership to GP or the individual for the consideration of the average net asset value ten trading days prior to the closing date, if the Company is not able to withdraw any part of the original investment from the Partnership in the twelve months period beginning the third year of the initial investment (“optional withdrawal period”). If the Company opts to withdraw entire investment during the optional withdrawal period, the GP will compensate up to 8% of annual return on investment. If the return on investment is in excess of 8% for any portion of the investment withdrawn during the optional withdrawal period, then 20% of the return in excess of 8% will be shared with the individual. The Company may also continue to invest in the Partnership beyond the optional withdrawal period, but none of above agreement with the GP and the individual is in place. In December 2020, the Partnership invested in a public company in China. Since there is readily determinable fair value of the equity investment, the Company started to measure its equity investment at fair value using the public company’s stock price and the Company’s shares since December 31, 2020. Investment advances In September 2021, Goldenway signed an agreement and promised to invest $7.7 million (RMB 50.0 million) in a Chinese private company. Goldenway advanced $0.8 million (RMB 5.0 million) in September 2021 for 20% shares of the investee. The investee completed the registration in October 2021. As of September 30, 2021 the investment advances were recorded as the other non-current assets. Goldenway and the investee are in the process of finalizing the detail terms terms for the whole investment. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 INVENTORIES Inventories at September 30, 2021 and December 31, 2020 consisted of the following: September 30, December 31, (In thousands of Raw materials $ 1,832 $ 1,297 Work-in-progress 22,593 8,130 Finished goods 42,850 44,466 Total inventories $ 67,275 $ 53,893 |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
RESTRICTED CASH | NOTE 5 RESTRICTED CASH As of September 30, 2021, restricted cash of $43.2 million (RMB280.0 million) was cash on demand and time deposits pledged for loans to Shanghai Pudong Development Bank. Restricted cash $41.7 million (RMB 270.0 million) of time deposit was pledged for loans to Shanghai Pudong Development Bank. And $1.5 million (RMB10.0 million) was deposit for $7.7 million (RMB 50.0 million) loan received in July and September, 2021. |
Bank Loans
Bank Loans | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 6 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 September 30, 2021 and December 31, 2020. September 30, December 31, Bank (In thousands of Shanghai Pudong Development Bank $ 41,634 $ 42,157 Industrial and Commercial Bank of China 18,504 21,462 Nanjing Bank 7,710 2,300 $ 67,848 $ 65,919 From March 2020 to July 2020, Ever-Glory Apparel entered into a deposit certificate of $29.3 million (RMB190.0 million) with the Shanghai Pudong Development Bank with annual interest rates ranging from 3.75% to 3.99%. From October 2020 to September 2021, Ever-Glory Apparel pledged the deposit certificate to the Shanghai Pudong Development Bank and Ever-Glory Apparel had borrowed $24.7 million (RMB 160.0 million) under this line of certificate with an annual interest rate from 2.60% to 3.10% and due on between October 2021 and September 2022. In December 2020, Goldenway entered into a deposit certificate of $17.0 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. From December 2020 to September 2021, Goldenway pledged the deposit certificate to the Shanghai Pudong Development Bank and Goldenway had borrowed $17.0 million (RMB 110.0 million) under this line of certificate with annual interest rate from 2.60% to 3.4% and due on between December 2021 and June 2022. In April 2020, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $6.2 million (RMB40.0 million). These loans are collateralized by the Company’s property and equipment. As of September 30, 2021, Goldenway had borrowed $6.2 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2022. In July 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $15.4 million (RMB100.0 million) with Industrial and Commercial Bank of China, which is collateralized by assets of Nanjing Knitting, an equity investee of Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), under a collateral agreement executed among Ever-Glory Apparel, Nanjing Knitting and the bank. As of September 30, 2021, Ever-Glory Apparel had borrowed $12.3 million (RMB 80.0 million) under this line of credit with annual interest rates ranging from 3.92% to 4.35% and due between October 2021 to May 2022. As of September 30, 2021, approximately $3.1 million was unused and available under this line of credit. In April 2020, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $6.9 million (RMB45.0 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 September 30, 2021, approximately $6.9 million was unused and available under this line of credit. In June 2021, Goldenway entered into a margin contract with Nanjing Bank. Goldenway had borrowed $4.6 million (RMB 30.0 million) under this contract for $0.9 million (RMB 6.0 million) was restricted with an annual interest rate 3.36% and due on June 2022. In September 2021, Goldenway entered into another margin contract with Nanjing Bank. Goldenway had borrowed $3.1 million (RMB 20.0 million) under this contract for $0.6 million (RMB 4.0 million) was restricted with an annual interest rate 3.44% and due on September 2022. In September 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.3 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of September 30, 2021, approximately $9.3 million was unused and available under this line of credit. All bank loans are used to fund our daily operations. All loans have been repaid before or at maturity date. Total interest expense on bank loans amounted to $1.9 million and $1.6 million for the nine months ended September 30, 2021 and 2020, respectively, and $1.2 million and $0.7 million for the three months ended September 30, 2021 and 2020, respectively. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020. He Meida was closed in April 2021. 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 Hongkong, and under the current laws of Hongkong, its income tax rate is 8.25% when its profit is under HKD 2.0 million and its income tax rate is 16.5% when its profit is over HKD 2.0 million. 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 (loss) income for the three and nine months ended September 30, 2021 and 2020 was taxable in the following jurisdictions: Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Mainland China $ (1,923 ) $ 3,057 $ (2,390 ) $ (2,943 ) Hongkong, PRC 653 - (1 ) - Others (2 ) (11 ) (7 ) (16 ) $ (1,272 ) $ 3,046 $ (2,398 ) $ (2,959 ) The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and nine months ended September 30, 2021 and 2020: Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Valuation allowance against subsidiaries with pretax losses (98.4 ) 2.0 (100.1 ) (60.6 ) Timing difference between US GAAP and PRC tax accounting (117.9 ) - (103.0 ) - Provision of bad debt allowance unrecognized in PRC (4.3 ) - (7.0 ) - Changes in fair value of investment and trading securities 35.8 - 22.3 - Other not deductible expenses in PRC tax filing 7.0 - 6.0 (8.9 ) Effective income tax rate (152.8 )% 27.0 % (156.8 )% (44.5 )% Income tax expense for the three and nine months ended September 30, 2021 and 2020 is as follows: Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Current $ 1,903 $ 1,115 $ 3,121 $ 1,418 Deferred 42 (293 ) 638 (103 ) Income tax expense $ 1,945 $ 822 $ 3,759 $ 1,315 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 $105.2 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, there is no deferred tax expense (income) relating to the Tax Act changes for the year ended September 30, 2021. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 STOCKHOLDERS’ EQUITY On January 15, 2020, the Company issued 3,062 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 2019. The shares issued in 2020 were valued at $1.41 per share, which was the average market price of the common stock for the five days before the grant date. On February 9, 2021, the Company issued 1,500 shares of the 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 2020. The shares issued in 2021 were valued at $3.34 per share, which was the average market price of the common stock for the five days before the grant date. On September 8, 2021, the Company issued 1,652 shares of Company’s common stock to two of the Company’s independent directors as compensation for their services rendered during the first and second quarter of 2021. The shares issued in 2021were valued at $3 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 | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 RELATED PARTY TRANSACTIONS Mr. Kang is the Company’s Chairman and Chief Executive Officer. Ever-Glory Enterprises (HK) Ltd. (Ever-Glory Enterprises) is the Company’s major shareholder. Mr. Xiaodong Yan was Ever-Glory Enterprises’ sole shareholder and sole director. Mr. Huake Kang, Mr. Kang’s son, acquired 83% interest of Ever-Glory Enterprises and became its sole director in 2014. All transactions associated with the following companies controlled by Mr. Kang or his son are considered to be related party transactions, and it is possible that the terms of these transactions may not be the same as those that would result from transactions between unrelated parties. All related party outstanding balances are short-term in nature and are expected to be settled in cash. Other income from Related Parties Jiangsu Wubijia Trading Company Limited (“Wubijia”) is an entity engaged in high-grade home goods sales and is controlled by Mr. Kang. Wubijia has sold their home goods on consignment in some Company’s retail stores since the third quarter of 2014. Other income from Wubijia for the three and nine months ended at September 30, 2021 and 2020 are as follows: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 (In thousands of The Company received from the customers $ - $ 3 $ 3 $ 12 The Company paid to Wubijia - (3 ) (3 ) (12 ) The net income recorded as other income $ - $ - $ - $ - Included in other income for the nine months ended September 30, 2021 and 2020 is rental income from EsC’Lav, the entity controlled by Mr. Kang under operating lease agreement with term through 2021. The rental income is $6,378, $5,970, $19,135 and $17,711 for the three and nine months ended September 30, 2021 and 2020, respectively. Other expenses due to Related Parties Included in other expenses for the three and nine months ended September 30, 2021 and 2020 are rent costs due to entities controlled by Mr. Kang under operating lease agreements as follows: Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Chuzhou Huarui 56 51 166 153 Kunshan Enjin 23 22 70 65 Total $ 79 $ 73 $ 236 $ 218 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 $0.3 million, $0.6 million, $1.2 million and $1.0 million during the three and nine months ended September 30, 2021 and 2020, respectively. In addition, the Company sub-contracted certain manufacturing work to related companies totaled $6.9 million, $5.9 million, $17.0 million and $14.3 million for the three and nine months ended September 30, 2021 and 2020, respectively. The Company provided raw materials to the sub-contractors and charged a fixed fee for labor provided by the sub-contractors. Sub-contracts with related parties included in cost of sales for the three and nine months ended September 30, 2021 and 2020 are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands of U.S. Dollars) Chuzhou Huarui $ 449 $ 421 $ 1,310 $ 1,411 Fengyang Huarui 665 625 1,316 1,025 Nanjing Ever-Kyowa 392 166 1,102 608 Ever-Glory Vietnam 5,154 4,019 11,597 9,498 Nanjing Knitting 300 504 1,217 991 EsCeLav 0 9 37 33 Jiangsu Ever-Glory 0 144 464 771 $ 6,960 $ 5,888 $ 17,043 $ 14,337 Accounts Payable – Related Parties The accounts payable to related parties at September 30, 2021 and December 31, 2020 are as follows: 2021 2020 (In thousands of Ever-Glory Vietnam $ - 1,727 Fengyang Huarui 47 150 Nanjing Ever-Kyowa 57 384 Chuzhou Huarui 415 1,234 Nanjing Knitting 465 257 Jiangsu Ever-Glory 32 12 Total $ 1,016 $ 3,764 Amounts Due From Related Parties-current assets The amounts due from related parties at September 30, 2021 and December 31, 2020 are as follows: 2021 2020 (In thousands of Jiangsu Ever-Glory $ 1,630 $ 567 Ever-Glory Vietnam 364 - Total $ 1,994 $ 567 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 nine months ended September 30, 2021 and 2020, 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 $0.1 million, $0.7 million, $2.9 million and $0.8 million during the three and nine months period ended September 30, 2021 and 2020, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at a cost of nil 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 September 30, 2021 and December 31, 2020, Jiangsu Ever-Glory has provided guarantees for approximately $31.6 million (RMB 205 million) and $36.0 million (RMB 235.0 million) of lines of credit obtained by the Company, respectively. Jiangsu Ever-Glory and Nanjing Knitting have also provided their assets as collateral for certain of these lines of credit. The value of the collateral, as per appraisals obtained by the banks in connection with these lines of credit is approximately $18.5 million (RMB 120.2 million) and $31.5 million (RMB 205.5 million) as of September 30, 2021 and December 31, 2020 respectively. Mr. Kang has also provided a personal guarantee for $9.3 million (RMB 60.0 million) and $14.8 million (RMB 96.3 million) as of September 30, 2021 and December 31, 2020, respectively. At December 31, 2020, $3.1 million (RMB 20.0 million) was outstanding due from Jiangsu Ever-Glory under the counter guarantee agreement. During the nine months ended September 30, 2021, an additional $0.3 million (RMB 1.8 million) was provided to and repayment of $1.4million (RMB 9.3 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of September 30, 2021, the amount of the counter-guarantee was $2.0 million (RMB 12.6 million) (the difference represents currency exchange adjustment of $0.02 million), which was 6.13% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.3 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At September 30, 2021 and December 31, 2020, the amount classified as a reduction of equity was $2.3 million and $3.4 million, respectively. Interest of 0.5% was charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% charged at each month end as the bank benchmark interest rate decreased. Interest income for the three and nine months ended September 30, 2021 and 2020 was approximately $0.04 million, $0 million, $0.05 million and $0.05 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 COMMITMENTS AND CONTINGENCIES Operating Lease Commitment The Company recognized operating lease liabilities and operating lease right-of-use (ROU) 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 with fixed payments for land-use-rights, warehouses and logistics centers, flagship stores, and leases with variable payments for stores within shopping malls (“shopping mall stores”) in the PRC, which are classified as operating leases. 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. The weighted average remaining lease term excluding stores in the shopping malls is 30 years and the weighted average discount rate is 4.35%. The lease term for shopping mall stores is commonly one year with options to extend or renew, and the rent is predetermined with a percentage of sales. The Company estimates the next 12 months rent for the shopping mall stores by annualizing current period rent calculated with the percentage of sales. Thus, the ROU assets and lease liabilities may vary significantly at different period ends. For stores closed before the lease end, we would incur insignificant amounts in net of loss on impairment of ROU assets and gain on extinguishment of lease liabilities, which are recorded in the current period statement of income (loss) and comprehensive income (loss). In the nine months ended September 30, 2021, the costs of the leases recognized in cost of revenues and general administrative expenses are $22.5 million and $0.6 million, respectively. Cash paid for the operating leases including in the operating cash flows was $23.1 million. In the nine months ended September 30, 2020, the costs of the leases recognized in cost of revenues and general administrative expenses are $18.9 million and $0.6 million, respectively. Cash paid for the operating leases including in the operating cash flows was $19.5 million. The following table summarizes the maturity of operating lease liabilities: Year ending December 31, (In thousands of U.S. Dollars) 2021 $ 188 2022 751 2023 766 2024 432 2025 432 Thereafter 12,883 Total lease payment 15,452 Less: Interest 6,904 Total $ 8,548 Legal Proceedings We are not aware of any pending legal proceedings to which we are a party which is material or potentially material, either individually or in the aggregate. We are from time to time, during the normal course of our business operations, subject to various litigation claims and legal disputes. We do not believe that the ultimate disposition of any of these matters will have a material adverse effect on our financial position, results of operations or liquidity. Lawsuits against Client A In November 2020, the Company’s two subsidiaries, Ever-Glory International Group Apparel Inc. and Goldenway Nanjing Garments Company Limited filed a complaint against Client A (“Client A”) for unpaid goods worth RMB 70.15 million ($10.86 million) in the Tianjin No.1 Intermediate People’s Court based on processing contracts between the parties. The Company has applied for interim measures with the court and has frozen bank accounts of Client A for a total amount of RMB 68.12 million ($10.54 million). The Company has delivered goods worth RMB 62.06 million ($9.51 million) to Client A pursuant to the processing contracts. The Company also seeks Client A for the payment of the loss incurred from the cost of raw materials paid to suppliers in the amount of RMB 8.09 million ($1.25 million) in reliance on the processing contracts. The Company received RMB 71.4 million ($11.05 million) from Client A in April 2021 which settled the complaint amount. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE 11 RISKS AND UNCERTAINTIES Economic and Political Risks The Company’s results of operations could be adversely affected by general conditions in the global economy, including conditions that are outside of its control, such as the impact of health and safety concerns from the outbreak of COVID-19. The outbreak in China has resulted in the reduction of customer traffic and temporary closures of shopping malls as mandated by the provincial governments in various provinces of China from late January to March, which has adversely affected the company in the retail business with a decline in sales since February 2020. The Company’s wholesale business is also significantly affected as the Company is facing a sharp decline in its order quantities. Some of the Company’s wholesale clients have also cancelled or postponed existing orders. Due to the Chinese factories’ shutdowns and traffic restrictions during the outbreak in China and potential shutdowns and traffic restrictions in the countries where the Company’s suppliers are located, The Company’s supply chain and business operations of its suppliers may be affected. Disruptions from the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, or restrictions on the shipment of the Company’s or its suppliers’ or customers’ products, could have adverse ripple effects on the Company’s manufacturing output and delivery schedule. The Company could also face difficulties in collecting its accounts receivables due to the effects of COVID-19 on its customers and risk gaining a large amount of bad debt. Global health concerns, such as COVID-19, could also result in social, economic, and labor instability in the countries and localities in which the Company, its suppliers and customers operate. Although China has already begun to recover from the outbreak of COVID-19, the epidemic continues to spread on a global scale and there is the risk of the epidemic returning to China in the future, thereby causing further business interruption. While the potential economic impact brought by and the duration of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could in the future negatively affect the Company’s liquidity. In addition, a recession or market correction resulting from the spread of COVID-19 could materially affect the Company’s business and the value of its common stock. If the Company’s future sales continue to decline significantly, it may risk facing financial difficulties due to its recurring fixed expenses. The extent to which COVID-19 impacts the Company’s operating is uncertain and cannot be predicted at this time, and it will depend on many factors and future developments, including new information about COVID-19 and any new government regulations which may emerge to contain the virus, among others. The majority of the Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Credit risk 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. 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. Concentration risk For the three months ended September 30, 2021, the Company had one wholesale customer that represented approximately 17% of the Company’s revenues. For the nine months ended September 30, 2021, the Company had one wholesale customer that represented approximately 15% of the Company’s revenues. For the three months ended September 30, 2020, the Company had two wholesale customers that represented approximately 18.0% and 11.5% of the Company’s revenues. For the nine months ended September 30, 2020, the Company had two wholesale customers that represented approximately 12.2% and 10.3% of the Company’s wholesale 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 nine months ended September 30, 2021 and 2020. For the retail business, the Company relied on five raw material suppliers that represented approximately 30%, 24%, 19%,11% and 10% of raw material purchases during the nine months ended September 30, 2021. For the Company’s retail business, the Company had four suppliers that represented approximately 37%, 21%, 17% and 14% of raw materials purchases during the nine months ended September 30, 2020. For the wholesale business, the Company relied on one finished goods supplier which is a related-party that represented 29.7% of the total finished goods purchases during the nine months ended September 30, 2021. For the wholesale business, the Company had two suppliers that represented approximately 11% and 10% of finished goods purchases during the nine months ended September 30, 2020. 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 nine months ended September 30, 2021 and 2020. The Company’s revenues for the three and nine months ended September 30, 2021 and 2020 were earned in the following geographic areas: Three months ended Nine months ended 2021 2020 2021 2020 (In thousands of U.S. Dollars) The People’s Republic of China $ 16,376 $ 7,171 $ 28,222 $ 14,935 Hong Kong China 9,153 12,019 16,124 17,063 United Kingdom 2,020 7,116 5,558 8,425 Europe-Other 8,846 8,690 18,905 16,443 Japan 8,435 3,124 13,390 9,714 United States 17,373 6,945 29,650 22,823 Total wholesale business 62,202 45,065 111,849 89,403 Retail business 32,204 34,843 113,927 98,947 Total $ 94,406 $ 79,908 $ 225,776 $ 188,350 |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | NOTE 12 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) Nine months ended September 30, 2021 Segment profit or loss: Net revenue from external customers $ 111,849 113,927 225,776 Income (loss) from operations $ 199 (5,635 ) (5,437 ) Interest income $ 849 79 928 Interest expense $ 1,828 82 1,909 Depreciation and amortization $ 657 3,727 4,384 Income (loss) before income tax expense 2,135 (4,533 ) (2,398 ) Income tax expense $ 2,735 1,024 3,759 Segment assets: Additions to property, plant and equipment 1,406 3,703 5,109 Inventory 24,972 42,303 67,275 Total assets 186,276 151,458 337,734 Wholesale Retail Total (In thousands of U.S. Dollars) Nine months ended September 30, 2020 Segment profit or loss: Net revenue from external customers $ 89,403 98,947 188,350 Income (Loss) from operations $ 3,467 (7,985 ) (4,518 ) Interest income $ 865 65 930 Interest expense $ 1,382 225 1,607 Depreciation and amortization $ 841 3,273 4,114 Income (Loss) before income tax expense 4,143 (7,102 ) (2,959 ) Income tax expense $ 965 350 1,315 Segment assets: Additions to property, plant and equipment 2,494 275 2,769 Inventory 9,712 36,731 46,443 Total assets 126,755 164,258 291,013 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended September 30, 2021 Segment profit or loss: Net revenue from external customers $ 62,203 32,203 94,406 Income (loss) from operations $ 3,570 (4,270 ) (700 ) Interest income $ 150 26 176 Interest expense $ 1,189 29 1,218 Depreciation and amortization $ 347 825 1,172 Income (Loss)before income tax expense 2,575 (3,847 ) (1,272 ) Income tax expense $ 1,932 13 1,945 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended September 30, 2020 Segment profit or loss: Net revenue from external customers $ 45,065 34,843 79,908 Income from operations $ 2,466 393 2,859 Interest income $ 289 24 313 Interest expense $ 662 38 700 Depreciation and amortization $ 257 261 518 Income before income tax expense 2,417 629 3,046 Income tax expense $ 497 325 822 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2021 have been incorporated into these consolidated financial statements and there are no other significant subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates In preparing our condensed consolidated financial statements, we use estimates and assumptions that affect the reported amounts and disclosures. Our estimates are often based on complex judgments, probabilities and assumptions that we believe to be reasonable, but that are inherently uncertain and unpredictable. We are also subject to other risks and uncertainties that may cause actual results to differ from estimated amounts. Significant estimates include the assumptions used to value tax liabilities, derivative financial instruments, the estimates of the allowance for deferred tax assets, and the accounts receivable allowance, and impairment of long-lived assets and inventory write off. |
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” The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Schedule of net gains and losses | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Net (loss) gains recognized during the period on equity securities (121) (14 ) 200 (14 ) Less: Net gains recognized during the period on equity securities sold during the period - (1 ) 54 (1 ) Unrealized (loss) gains recognized during the reporting period on equity securities still held at the reporting date $ (121) $ (13 ) $ 146 $ (13 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, (In thousands of Raw materials $ 1,832 $ 1,297 Work-in-progress 22,593 8,130 Finished goods 42,850 44,466 Total inventories $ 67,275 $ 53,893 |
Bank Loans (Tables)
Bank Loans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | September 30, December 31, Bank (In thousands of Shanghai Pudong Development Bank $ 41,634 $ 42,157 Industrial and Commercial Bank of China 18,504 21,462 Nanjing Bank 7,710 2,300 $ 67,848 $ 65,919 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of pre-tax income in jurisdictions | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Mainland China $ (1,923 ) $ 3,057 $ (2,390 ) $ (2,943 ) Hongkong, PRC 653 - (1 ) - Others (2 ) (11 ) (7 ) (16 ) $ (1,272 ) $ 3,046 $ (2,398 ) $ (2,959 ) |
Schedule of reconciliation of PRC statutory rates to the Company's effective tax rate | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 PRC statutory rate 25.0 % 25.0 % 25.0 % 25.0 % Valuation allowance against subsidiaries with pretax losses (98.4 ) 2.0 (100.1 ) (60.6 ) Timing difference between US GAAP and PRC tax accounting (117.9 ) - (103.0 ) - Provision of bad debt allowance unrecognized in PRC (4.3 ) - (7.0 ) - Changes in fair value of investment and trading securities 35.8 - 22.3 - Other not deductible expenses in PRC tax filing 7.0 - 6.0 (8.9 ) Effective income tax rate (152.8 )% 27.0 % (156.8 )% (44.5 )% |
Schedule of income tax expense | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Current $ 1,903 $ 1,115 $ 3,121 $ 1,418 Deferred 42 (293 ) 638 (103 ) Income tax expense $ 1,945 $ 822 $ 3,759 $ 1,315 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of home goods on consignment | Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 (In thousands of The Company received from the customers $ - $ 3 $ 3 $ 12 The Company paid to Wubijia - (3 ) (3 ) (12 ) The net income recorded as other income $ - $ - $ - $ - |
Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements | Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 (In thousands of U.S. Dollars) Chuzhou Huarui 56 51 166 153 Kunshan Enjin 23 22 70 65 Total $ 79 $ 73 $ 236 $ 218 |
Schedule of sub-contracts with related parties | Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands of U.S. Dollars) Chuzhou Huarui $ 449 $ 421 $ 1,310 $ 1,411 Fengyang Huarui 665 625 1,316 1,025 Nanjing Ever-Kyowa 392 166 1,102 608 Ever-Glory Vietnam 5,154 4,019 11,597 9,498 Nanjing Knitting 300 504 1,217 991 EsCeLav 0 9 37 33 Jiangsu Ever-Glory 0 144 464 771 $ 6,960 $ 5,888 $ 17,043 $ 14,337 |
Schedule of accounts payable to related parties | 2021 2020 (In thousands of Ever-Glory Vietnam $ - 1,727 Fengyang Huarui 47 150 Nanjing Ever-Kyowa 57 384 Chuzhou Huarui 415 1,234 Nanjing Knitting 465 257 Jiangsu Ever-Glory 32 12 Total $ 1,016 $ 3,764 |
Schedule of amounts due from related party | 2021 2020 (In thousands of Jiangsu Ever-Glory $ 1,630 $ 567 Ever-Glory Vietnam 364 - Total $ 1,994 $ 567 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of maturity of operating lease liabilities | Year ending December 31, (In thousands of U.S. Dollars) 2021 $ 188 2022 751 2023 766 2024 432 2025 432 Thereafter 12,883 Total lease payment 15,452 Less: Interest 6,904 Total $ 8,548 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of Company's revenues as per geographic areas | Three months ended Nine months ended 2021 2020 2021 2020 (In thousands of U.S. Dollars) The People’s Republic of China $ 16,376 $ 7,171 $ 28,222 $ 14,935 Hong Kong China 9,153 12,019 16,124 17,063 United Kingdom 2,020 7,116 5,558 8,425 Europe-Other 8,846 8,690 18,905 16,443 Japan 8,435 3,124 13,390 9,714 United States 17,373 6,945 29,650 22,823 Total wholesale business 62,202 45,065 111,849 89,403 Retail business 32,204 34,843 113,927 98,947 Total $ 94,406 $ 79,908 $ 225,776 $ 188,350 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of retail segment | Wholesale Retail Total (In thousands of U.S. Dollars) Nine months ended September 30, 2021 Segment profit or loss: Net revenue from external customers $ 111,849 113,927 225,776 Income (loss) from operations $ 199 (5,635 ) (5,437 ) Interest income $ 849 79 928 Interest expense $ 1,828 82 1,909 Depreciation and amortization $ 657 3,727 4,384 Income (loss) before income tax expense 2,135 (4,533 ) (2,398 ) Income tax expense $ 2,735 1,024 3,759 Segment assets: Additions to property, plant and equipment 1,406 3,703 5,109 Inventory 24,972 42,303 67,275 Total assets 186,276 151,458 337,734 Wholesale Retail Total (In thousands of U.S. Dollars) Nine months ended September 30, 2020 Segment profit or loss: Net revenue from external customers $ 89,403 98,947 188,350 Income (Loss) from operations $ 3,467 (7,985 ) (4,518 ) Interest income $ 865 65 930 Interest expense $ 1,382 225 1,607 Depreciation and amortization $ 841 3,273 4,114 Income (Loss) before income tax expense 4,143 (7,102 ) (2,959 ) Income tax expense $ 965 350 1,315 Segment assets: Additions to property, plant and equipment 2,494 275 2,769 Inventory 9,712 36,731 46,443 Total assets 126,755 164,258 291,013 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended September 30, 2021 Segment profit or loss: Net revenue from external customers $ 62,203 32,203 94,406 Income (loss) from operations $ 3,570 (4,270 ) (700 ) Interest income $ 150 26 176 Interest expense $ 1,189 29 1,218 Depreciation and amortization $ 347 825 1,172 Income (Loss)before income tax expense 2,575 (3,847 ) (1,272 ) Income tax expense $ 1,932 13 1,945 Wholesale Retail Total (In thousands of U.S. Dollars) Three months ended September 30, 2020 Segment profit or loss: Net revenue from external customers $ 45,065 34,843 79,908 Income from operations $ 2,466 393 2,859 Interest income $ 289 24 313 Interest expense $ 662 38 700 Depreciation and amortization $ 257 261 518 Income before income tax expense 2,417 629 3,046 Income tax expense $ 497 325 822 |
Investments (Details)
Investments (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||
Aug. 30, 2020USD ($) | Aug. 30, 2020CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Sep. 30, 2021CNY (¥) | |
Schedule of Investments [Abstract] | |||||
Invested amount | $ 2.9 | ¥ 20 | |||
Partnership percentage | 2.38% | 2.38% | |||
General partner of the Partnership agreement, description | In the meantime, the Company entered an agreement with the general partner of the Partnership (GP) and an individual that the Company has the privilege to sell the ownership interests in the Partnership to GP or the individual for the consideration of the average net asset value ten trading days prior to the closing date, if the Company is not able to withdraw any part of the original investment from the Partnership in the twelve months period beginning the third year of the initial investment (“optional withdrawal period”). If the Company opts to withdraw entire investment during the optional withdrawal period, the GP will compensate up to 8% of annual return on investment. If the return on investment is in excess of 8% for any portion of the investment withdrawn during the optional withdrawal period, then 20% of the return in excess of 8% will be shared with the individual. The Company may also continue to invest in the Partnership beyond the optional withdrawal period, but none of above agreement with the GP and the individual is in place. | In the meantime, the Company entered an agreement with the general partner of the Partnership (GP) and an individual that the Company has the privilege to sell the ownership interests in the Partnership to GP or the individual for the consideration of the average net asset value ten trading days prior to the closing date, if the Company is not able to withdraw any part of the original investment from the Partnership in the twelve months period beginning the third year of the initial investment (“optional withdrawal period”). If the Company opts to withdraw entire investment during the optional withdrawal period, the GP will compensate up to 8% of annual return on investment. If the return on investment is in excess of 8% for any portion of the investment withdrawn during the optional withdrawal period, then 20% of the return in excess of 8% will be shared with the individual. The Company may also continue to invest in the Partnership beyond the optional withdrawal period, but none of above agreement with the GP and the individual is in place. | |||
Promised investment amount | $ 7.7 | ¥ 50 | |||
Advanced amount of invesment | $ 0.8 | ¥ 5 | |||
Invest percentage | 20.00% | 20.00% |
Investments (Details) - Schedul
Investments (Details) - Schedule of net gains and losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of net gains and losses [Abstract] | ||||
Net (loss) gains recognized during the period on equity securities | $ (121) | $ (14) | $ 200 | $ (14) |
Less: Net gains recognized during the period on equity securities sold during the period | (1) | 54 | (1) | |
Unrealized (loss) gains recognized during the reporting period on equity securities still held at the reporting date | $ (121) | $ (13) | $ 146 | $ (13) |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 1,832 | $ 1,297 |
Work-in-progress | 22,593 | 8,130 |
Finished goods | 42,850 | 44,466 |
Total inventories | $ 67,275 | $ 53,893 |
Restricted Cash (Details)
Restricted Cash (Details) - Sep. 30, 2021 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Restricted Cash (Details) [Line Items] | ||
Restricted Cash | $ 43.2 | ¥ 280 |
Amount deposit | 1.5 | 10 |
Loan received | 7.7 | 50 |
Shanghai Pudong Development Bank [Member] | ||
Restricted Cash (Details) [Line Items] | ||
Restricted Cash | $ 41.7 | ¥ 270 |
Bank Loans (Details)
Bank Loans (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | Apr. 30, 2020USD ($) | Apr. 30, 2020CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Jul. 31, 2019USD ($) | Jul. 31, 2019CNY (¥) | |
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.44% | 3.36% | |||||||||||||||||
Line of credit agreement amount | $ 0.9 | ¥ 6 | |||||||||||||||||
Line of credit amount | $ 3.1 | $ 3.1 | $ 3.1 | $ 3.1 | |||||||||||||||
Borrowed loans amount restricted | ¥ | ¥ 4 | ||||||||||||||||||
Interest expenses | 1.2 | $ 0.7 | 1.9 | $ 1.6 | |||||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Time deposit | 24.7 | 24.7 | $ 29.3 | 24.7 | 24.7 | 160 | ¥ 190 | ||||||||||||
Ever Glory Apparel [Member] | Industrial and Commercial Bank Of China [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit agreement amount | $ 15.4 | ¥ 100 | |||||||||||||||||
Ever Glory Apparel [Member] | Nanjing Knitting [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Borrowed loans amount | 12.3 | 12.3 | 12.3 | 12.3 | 80 | ||||||||||||||
Line of credit agreement amount | $ 9.3 | ¥ 60 | |||||||||||||||||
Unused line of credit | 9.3 | 9.3 | $ 9.3 | $ 9.3 | |||||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.75% | 2.60% | |||||||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | Nanjing Knitting [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.92% | ||||||||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.99% | 3.10% | |||||||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | Nanjing Knitting [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 4.35% | ||||||||||||||||||
Goldenway [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Time deposit | $ 17 | ¥ 110 | |||||||||||||||||
Line of credit annual interest rates | 3.85% | ||||||||||||||||||
Due date of revolving line of credit agreement | From December 2020 to September 2021, Goldenway pledged the deposit certificate to the Shanghai Pudong Development Bank and Goldenway had borrowed $17.0 million (RMB 110.0 million) under this line of certificate with annual interest rate from 2.60% to 3.4% and due on between December 2021 and June 2022. | ||||||||||||||||||
Goldenway [Member] | Industrial and Commercial Bank Of China [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Due date of revolving line of credit agreement | As of September 30, 2021, Goldenway had borrowed $6.2 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2022. | ||||||||||||||||||
Borrowed loans amount | $ 6.2 | ¥ 40 | |||||||||||||||||
Goldenway [Member] | Nanjing Knitting [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit agreement amount | $ 6.9 | ¥ 45 | |||||||||||||||||
Unused line of credit | 6.9 | 6.9 | $ 6.9 | $ 6.9 | |||||||||||||||
LA GO GO [Member] | Nanjing Knitting [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Borrowed loans amount | 3.1 | 3.1 | 3.1 | 3.1 | ¥ 20 | ||||||||||||||
Line of credit agreement amount | $ 4.6 | ¥ 30 | |||||||||||||||||
Borrowed loans amount restricted | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Bank loans | $ 67,848 | $ 65,919 |
Shanghai Pudong Development Bank [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | 41,634 | 42,157 |
Industrial and Commercial Bank of China [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | 18,504 | 21,462 |
Bank of Ningbo [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | $ 7,710 | $ 2,300 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax (Details) [Line Items] | ||||
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
He Meida [Member] | ||||
Income Tax (Details) [Line Items] | ||||
PRC statutory rate | 25.00% | |||
Xizang (Tibet) [Member] | ||||
Income Tax (Details) [Line Items] | ||||
PRC statutory rate | 15.00% | |||
Non-U.S. subsidiaries [Member] | ||||
Income Tax (Details) [Line Items] | ||||
U.S. deferred income taxes (in Dollars) | $ 105.2 | |||
Income tax, description | 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. | |||
Maximum [Member] | ||||
Income Tax (Details) [Line Items] | ||||
Effective income tax reduction, percent | 15.00% | |||
Minimum [Member] | ||||
Income Tax (Details) [Line Items] | ||||
Effective income tax reduction, percent | 9.00% | |||
Hongkong [Member] | ||||
Income Tax (Details) [Line Items] | ||||
PRC statutory rate | 8.25% | |||
HKD [Member] | ||||
Income Tax (Details) [Line Items] | ||||
Effective income tax reduction, percent | 16.50% | |||
Income tax (in Dollars) | $ 2 | |||
Profit (in Dollars) | $ 2 | |||
PRC [Member] | ||||
Income Tax (Details) [Line Items] | ||||
Income tax rate for dividends distribution | 10.00% |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of pre-tax income in jurisdictions - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax (Details) - Schedule of pre-tax income in jurisdictions [Line Items] | ||||
Pre-tax income | $ (1,272) | $ 3,046 | $ (2,398) | $ (2,959) |
Mainland China [Member] | ||||
Income Tax (Details) - Schedule of pre-tax income in jurisdictions [Line Items] | ||||
Pre-tax income | (1,923) | 3,057 | (2,390) | (2,943) |
Hongkong, PRC [Member] | ||||
Income Tax (Details) - Schedule of pre-tax income in jurisdictions [Line Items] | ||||
Pre-tax income | 653 | (1) | ||
Others [Member] | ||||
Income Tax (Details) - Schedule of pre-tax income in jurisdictions [Line Items] | ||||
Pre-tax income | $ (2) | $ (11) | $ (7) | $ (16) |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of reconciliation of PRC statutory rates to the Company's effective tax rate - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of reconciliation of PRC statutory rates to the Company's effective tax rate [Abstract] | ||||
PRC statutory rate | 25.00% | 25.00% | 25.00% | 25.00% |
Valuation allowance against subsidiaries with pretax losses | (98.40%) | 2.00% | (100.10%) | (60.60%) |
Timing difference between US GAAP and PRC tax accounting | (117.90%) | (103.00%) | ||
Provision of bad debt allowance unrecognized in PRC | (4.30%) | (7.00%) | ||
Changes in fair value of investment and trading securities (in Dollars per share) | $ 35,800 | $ 22,300 | ||
Other not deductible expenses in PRC tax filing (in Dollars per share) | $ 7,000 | $ 6,000 | $ (8,900) | |
Effective income tax rate | (152.80%) | 27.00% | (156.80%) | (44.50%) |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of income tax expense - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of income tax expense [Abstract] | ||||
Current | $ 1,903 | $ 1,115 | $ 3,121 | $ 1,418 |
Deferred | 42 | (293) | 638 | (103) |
Income tax expense | $ 1,945 | $ 822 | $ 3,759 | $ 1,315 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 08, 2021$ / sharesshares | Feb. 09, 2021$ / sharesshares | Jan. 15, 2020$ / sharesshares |
Stockholders' Equity (Details) [Line Items] | |||
Common stock shares issued to independent directors | shares | 1,652 | ||
Number of directors | 2 | ||
Number of days used to calculation average market price of common stock, description | The shares issued in 2021were valued at $3 per share, which was the average market price of the common stock for the five days before the grant date. | ||
Average market price of the common stock for the five days before the grant date | $ / shares | $ 3 | ||
Two Independent Directors [Member] | |||
Stockholders' Equity (Details) [Line Items] | |||
Common stock shares issued to independent directors | shares | 1,500 | 3,062 | |
Number of directors | 2 | 2 | |
Number of days used to calculation average market price of common stock, description | The shares issued in 2021 were valued at $3.34 per share, which was the average market price of the common stock for the five days before the grant date. | The shares issued in 2020 were valued at $1.41 per share, which was the average market price of the common stock for the five days before the grant date. | |
Average market price of the common stock for the five days before the grant date | $ / shares | $ 3.34 | $ 1.41 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2012 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | |
Related Party Transactions (Details) [Line Items] | |||||||||
Acquired interest | 6.00% | ||||||||
Rental income, description | The rental income is $6,378, $5,970, $19,135 and $17,711 for the three and nine months ended September 30, 2021 and 2020, respectively. | The rental income is $6,378, $5,970, $19,135 and $17,711 for the three and nine months ended September 30, 2021 and 2020, respectively. | |||||||
Sub-contracts with related parties, description | the Company sub-contracted certain manufacturing work to related companies totaled $6.9 million, $5.9 million, $17.0 million and $14.3 million for the three and nine months ended September 30, 2021 and 2020, respectively. The Company provided raw materials to the sub-contractors and charged a fixed fee for labor provided by the sub-contractors. | the Company sub-contracted certain manufacturing work to related companies totaled $6.9 million, $5.9 million, $17.0 million and $14.3 million for the three and nine months ended September 30, 2021 and 2020, respectively. The Company provided raw materials to the sub-contractors and charged a fixed fee for labor provided by the sub-contractors. | |||||||
Amounts due from related party under counter guarantee agreement, description | an additional $0.3 million (RMB 1.8 million) was provided to and repayment of $1.4million (RMB 9.3 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of September 30, 2021, the amount of the counter-guarantee was $2.0 million (RMB 12.6 million) (the difference represents currency exchange adjustment of $0.02 million), which was 6.13% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.3 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At September 30, 2021 and December 31, 2020, the amount classified as a reduction of equity was $2.3 million and $3.4 million, respectively. Interest of 0.5% was charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% charged at each month end as the bank benchmark interest rate decreased. Interest income for the three and nine months ended September 30, 2021 and 2020 was approximately $0.04 million, $0 million, $0.05 million and $0.05 million, respectively. | an additional $0.3 million (RMB 1.8 million) was provided to and repayment of $1.4million (RMB 9.3 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of September 30, 2021, the amount of the counter-guarantee was $2.0 million (RMB 12.6 million) (the difference represents currency exchange adjustment of $0.02 million), which was 6.13% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.3 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At September 30, 2021 and December 31, 2020, the amount classified as a reduction of equity was $2.3 million and $3.4 million, respectively. Interest of 0.5% was charged on net amounts due from Jiangsu Ever-Glory at each month end. Since January 1, 2019, interest rate has changed to 0.3625% charged at each month end as the bank benchmark interest rate decreased. Interest income for the three and nine months ended September 30, 2021 and 2020 was approximately $0.04 million, $0 million, $0.05 million and $0.05 million, respectively. | |||||||
Related Party [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Outstanding due from Jiangsu Ever-Glory | $ 3.1 | ¥ 20 | |||||||
Mr. Kang [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Acquired interest | 83.00% | 83.00% | |||||||
Guarantee on lines of credit | $ 9.3 | ¥ 60 | 14.8 | ¥ 96.3 | |||||
Nanjing Knitting [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Purchase of raw material | $ 0.3 | $ 0.6 | 1.2 | $ 1 | |||||
Jiangsu Ever-Glory[Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Acquired interest | 70.00% | ||||||||
Purchase of raw material | 0.1 | 0.7 | 2.9 | 0.8 | |||||
Sale of raw materials | $ 0.5 | 0 | $ 0.8 | ||||||
Guarantee on lines of credit | 31.6 | 205 | |||||||
Lines of credit | $ 18.5 | ¥ 120.2 | $ 31.5 | ¥ 205.5 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of home goods on consignment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of home goods on consignment [Abstract] | ||||
The Company received from the customers | $ 3 | $ 3 | $ 12 | |
The Company paid to Wubijia | (3) | (3) | (12) | |
The net income recorded as other income |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements [Line Items] | ||||
Total | $ 79 | $ 73 | $ 236 | $ 218 |
Chuzhou Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements [Line Items] | ||||
Total | 56 | 51 | 166 | 153 |
Kunshan Enjin [Member] | ||||
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements [Line Items] | ||||
Total | $ 23 | $ 22 | $ 70 | $ 65 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of sub-contracts with related parties - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | $ 6,960 | $ 5,888 | $ 17,043 | $ 14,337 |
Chuzhou Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 449 | 421 | 1,310 | 1,411 |
Fengyang Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 665 | 625 | 1,316 | 1,025 |
Nanjing Ever-Kyowa [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 392 | 166 | 1,102 | 608 |
Ever-Glory Vietnam [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 5,154 | 4,019 | 11,597 | 9,498 |
Nanjing Knitting [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 300 | 504 | 1,217 | 991 |
EsCeLav [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 0 | 9 | 37 | 33 |
Jiangsu Ever-Glory [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | $ 0 | $ 144 | $ 464 | $ 771 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of accounts payable to related parties - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Total [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 1,016 | $ 3,764 |
Accounts Payable [Member] | Ever-Glory Vietnam []Member | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 1,727 | |
Accounts Payable [Member] | Fengyang Huarui [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 47 | 150 |
Accounts Payable [Member] | Nanjing Ever-Kyowa [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 57 | 384 |
Accounts Payable [Member] | Chuzhou Huarui [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 415 | 1,234 |
Accounts Payable [Member] | Nanjing Knitting [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 465 | 257 |
Accounts Payable [Member] | Jiangsu Ever-Glory [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 32 | $ 12 |
Related Party Transactions (D_6
Related Party Transactions (Details) - Schedule of amounts due from related party - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Jiangsu Ever-Glory [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | $ 1,630 | $ 567 |
Esc’elav [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | 364 | |
Total [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | $ 1,994 | $ 567 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Apr. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | Nov. 30, 2020USD ($) | Nov. 30, 2020CNY (¥) | Sep. 30, 2021USD ($) | |
Commitments and Contingencies (Details) [Line Items] | |||||
Remaining lease term | 30 years | ||||
Weighted average discount rate | 4.35% | ||||
General administrative expenses | $ 600 | ||||
Cost of revenue | 18,900 | ||||
Cost of raw materials | 19,500 | ||||
Lawsuits against Client A [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Cost of raw materials | $ 1,250 | ¥ 8,090 | |||
Unpaid goods | 10,860 | 70,150 | |||
Interim measures amount | 10,540 | 68,120 | |||
Delivered goods cost | $ 9,510 | ¥ 62,060 | |||
Amount received for settled complaint | $ 11,050 | ¥ 71,400 | |||
Operating Lease Commitment [Member] | |||||
Commitments and Contingencies (Details) [Line Items] | |||||
Revenue | 22,500 | ||||
General administrative expenses | 600 | ||||
Cash paid for operating leases | $ 23,100 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of maturity of operating lease liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of maturity of operating lease liabilities [Abstract] | |
2021 | $ 188 |
2022 | 751 |
2023 | 766 |
2024 | 432 |
2025 | 432 |
Thereafter | 12,883 |
Total lease payment | 15,452 |
Less: Interest | 6,904 |
Total | $ 8,548 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 11.50% | |||
Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 10.00% | 9.00% | ||
Raw Materials [Member] | Wholesale business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 10.00% | 9.00% | ||
Customer One [Member] | Revenue Benchmark [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 17.00% | 18.00% | 15.00% | 12.20% |
Customer Two [Member] | Revenue Benchmark [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 10.30% | |||
Supplier One [Member] | Wholesale business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 29.70% | 10.00% | ||
Supplier One [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 30.00% | 37.00% | ||
Supplier Two [Member] | Wholesale business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 11.00% | |||
Supplier Two [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 24.00% | 21.00% | ||
Supplier Three [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 19.00% | 17.00% | ||
Supplier Four [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 11.00% | 14.00% | ||
Supplier Five [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Concentration risk customer percentage | 10.00% |
Risks and Uncertainties (Deta_2
Risks and Uncertainties (Details) - Schedule of Company's revenues as per geographic areas - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Mainland China [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 16,376 | $ 7,171 | $ 28,222 | $ 14,935 |
Hong Kong China [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 9,153 | 12,019 | 16,124 | 17,063 |
United Kingdom [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 2,020 | 7,116 | 5,558 | 8,425 |
Europe-Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 8,846 | 8,690 | 18,905 | 16,443 |
Japan [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 8,435 | 3,124 | 13,390 | 9,714 |
United States [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 17,373 | 6,945 | 29,650 | 22,823 |
Total wholesale business [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 62,202 | 45,065 | 111,849 | 89,403 |
Retail business [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 32,204 | 34,843 | 113,927 | 98,947 |
Total [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 94,406 | $ 79,908 | $ 225,776 | $ 188,350 |
Segments (Details) - Schedule o
Segments (Details) - Schedule of retail segment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment profit or loss: | ||||
Net revenue from external customers | $ 94,406 | $ 79,908 | $ 225,776 | $ 188,350 |
Income (loss) from operations | (700) | 2,859 | (5,437) | (4,518) |
Interest income | 176 | 313 | 928 | 930 |
Interest expense | 1,218 | 700 | 1,909 | 1,607 |
Depreciation and amortization | 1,172 | 518 | 4,384 | 4,114 |
Income (loss) before income tax expense | (1,272) | 3,046 | (2,398) | (2,959) |
Income tax expense | 1,945 | 822 | 3,759 | 1,315 |
Additions to property, plant and equipment | 5,109 | 2,769 | ||
Inventory | 67,275 | 46,443 | 67,275 | 46,443 |
Total assets | 337,734 | 291,013 | 337,734 | 291,013 |
Wholesale segment [Member] | ||||
Segment profit or loss: | ||||
Net revenue from external customers | 62,203 | 45,065 | 111,849 | 89,403 |
Income (loss) from operations | 3,570 | 2,466 | 199 | 3,467 |
Interest income | 150 | 289 | 849 | 865 |
Interest expense | 1,189 | 662 | 1,828 | 1,382 |
Depreciation and amortization | 347 | 257 | 657 | 841 |
Income (loss) before income tax expense | 2,575 | 2,417 | 2,135 | 4,143 |
Income tax expense | 1,932 | 497 | 2,735 | 965 |
Additions to property, plant and equipment | 1,406 | 2,494 | ||
Inventory | 24,972 | 9,712 | 24,972 | 9,712 |
Total assets | 186,276 | 126,755 | 186,276 | 126,755 |
Retail segment [Member] | ||||
Segment profit or loss: | ||||
Net revenue from external customers | 32,203 | 34,843 | 113,927 | 98,947 |
Income (loss) from operations | (4,270) | 393 | (5,635) | (7,985) |
Interest income | 26 | 24 | 79 | 65 |
Interest expense | 29 | 38 | 82 | 225 |
Depreciation and amortization | 825 | 261 | 3,727 | 3,273 |
Income (loss) before income tax expense | (3,847) | 629 | (4,533) | (7,102) |
Income tax expense | 13 | 325 | 1,024 | 350 |
Additions to property, plant and equipment | 3,703 | 275 | ||
Inventory | 42,303 | 36,731 | 42,303 | 36,731 |
Total assets | $ 151,458 | $ 164,258 | $ 151,458 | $ 164,258 |