Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
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 | 14,818,006 | |
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, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 | |
City Area Code | 86 | |
Local Phone Number | 25-5209-6831 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ | |
Entity Address, Postal Zip Code | 00000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 32,177 | $ 56,573 |
Restricted cash | 39,706 | 40,768 |
Trading securities | 2,189 | 3,251 |
Accounts receivable, net | 79,875 | 69,859 |
Inventories | 49,038 | 63,841 |
Advances on inventory purchases | 4,260 | 8,179 |
Value added tax receivable | 2,144 | 1,693 |
Other receivables and prepaid expenses | 6,049 | 6,345 |
Amounts due from related parties | 220 | |
Total Current Assets | 215,438 | 250,729 |
NON-CURRENT ASSETS | ||
Equity security investment | 4,566 | 5,682 |
Intangible assets, net | 4,211 | 4,794 |
Property and equipment, net | 31,148 | 36,340 |
Operating lease right-of-use assets | 38,905 | 50,077 |
Deferred tax assets | 768 | 899 |
Other non-current assets | 3,520 | 784 |
Total Non-Current Assets | 83,118 | 98,576 |
TOTAL ASSETS | 298,556 | 349,305 |
CURRENT LIABILITIES | ||
Bank loans | 63,360 | 68,992 |
Accounts payable | 59,894 | 67,930 |
Accounts payable and other payables – related parties | 2,907 | 1,332 |
Other payables and accrued liabilities | 14,166 | 18,531 |
Value added and other taxes payable | 842 | 999 |
Income tax payable | 1,107 | 334 |
Current operating lease liabilities | 31,538 | 41,633 |
Total Current Liabilities | 173,814 | 199,751 |
Non-current operating lease liabilities | 7,538 | 8,596 |
TOTAL LIABILITIES | 181,352 | 208,347 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,818,006 and 14,655,926 issued and outstanding as of September 30, 2022, respectively, 14,812,312 and 14,664,978 issued and outstanding as of December 31, 2021, respectively) | 15 | 15 |
Additional paid-in capital | 3,670 | 3,660 |
Retained earnings | 99,398 | 108,210 |
Statutory reserve | 21,245 | 21,245 |
Treasury stock (at cost,162,080 and 147,334 shares at September 30, 2022 and December 31, 2021, respectively) | (400) | (363) |
Accumulated other comprehensive (loss) income | (6,724) | 8,191 |
Total Equity | 117,204 | 140,958 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 298,556 | $ 349,305 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 14,818,006 | 14,812,312 |
Common stock, shares outstanding | 14,655,926 | 14,664,978 |
Treasury stock shares | 162,080 | 147,334 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
NET SALES | $ 106,437 | $ 94,406 | $ 235,022 | $ 225,776 |
COST OF SALES | 90,390 | 71,196 | 181,194 | 161,738 |
GROSS PROFIT | 16,047 | 23,210 | 53,828 | 64,038 |
OPERATING EXPENSES | ||||
Selling expenses | 12,792 | 14,443 | 38,153 | 44,495 |
General and administrative expenses | 9,306 | 9,467 | 21,821 | 24,980 |
Total Operating Expenses | 22,098 | 23,910 | 59,974 | 69,475 |
LOSS FROM OPERATIONS | (6,051) | (700) | (6,146) | (5,437) |
OTHER (EXPENSES) INCOME | ||||
Interest income | 22 | 176 | 299 | 928 |
Interest expense | (524) | (1,218) | (1,458) | (1,909) |
Government subsidy | 193 | 340 | 397 | 842 |
(Loss) gain from changes in fair values of investments | (915) | (123) | (1,587) | 2,151 |
Other income | 317 | 253 | 885 | 1,027 |
Total Other (Expenses) Income, Net | (907) | (572) | (1,464) | 3,039 |
LOSS BEFORE INCOME TAX EXPENSE | (6,958) | (1,272) | (7,610) | (2,398) |
Income tax benefit (expense) | 835 | (1,945) | (1,202) | (3,760) |
NET LOSS | (6,123) | (3,217) | (8,812) | (6,158) |
Foreign currency translation (loss) gain | (6,336) | (1,062) | (14,915) | 1,020 |
COMPREHENSIVE LOSS | $ (12,459) | $ (4,279) | $ (23,727) | $ (5,138) |
LOSS PER SHARE | ||||
Basic and diluted (in Dollars per share) | $ (0.41) | $ (0.22) | $ (0.59) | $ (0.42) |
Weighted average number of shares outstanding, basic and diluted (in Shares) | 14,817,053 | 14,811,073 | 14,815,077 | 14,810,585 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Basic and diluted (in Dollars per share) | $ (0.41) | $ (0.22) | $ (0.59) | $ (0.42) |
Weighted average number of shares outstanding Basic and diluted (in Shares) | 14,817,053 | 14,811,073 | 14,815,077 | 14,810,585 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Treasury stock | Retained Earnings Unrestricted | Retained Earnings Statutory reserve | Accumulated other comprehensive income | Amounts due from related party |
Balance at Dec. 31, 2020 | $ 134,449 | $ 15 | $ 3,650 | $ 109,171 | $ 20,376 | $ 4,590 | $ (3,353) | |
Balance (in Shares) at Dec. 31, 2020 | 14,809,160 | |||||||
Stock issued for compensation | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 1,500 | |||||||
Net Income (loss) | (1,170) | (1,170) | ||||||
Net cash received from related party under counter guarantee agreement | 379 | 379 | ||||||
Foreign currency translation adjustment | (1,352) | (1,352) | ||||||
Balance at Mar. 31, 2021 | 132,311 | $ 15 | 3,655 | 108,001 | 20,376 | 3,238 | (2,974) | |
Balance (in Shares) at Mar. 31, 2021 | 14,810,660 | |||||||
Balance at Dec. 31, 2020 | 134,449 | $ 15 | 3,650 | 109,171 | 20,376 | 4,590 | (3,353) | |
Balance (in Shares) at Dec. 31, 2020 | 14,809,160 | |||||||
Net Income (loss) | (6,158) | |||||||
Foreign currency translation adjustment | 1,020 | |||||||
Balance at Sep. 30, 2021 | 130,399 | $ 15 | 3,660 | 103,013 | 20,376 | 5,610 | (2,275) | |
Balance (in Shares) at Sep. 30, 2021 | 14,812,312 | |||||||
Balance at Mar. 31, 2021 | 132,311 | $ 15 | 3,655 | 108,001 | 20,376 | 3,238 | (2,974) | |
Balance (in Shares) at Mar. 31, 2021 | 14,810,660 | |||||||
Net Income (loss) | (1,771) | (1,771) | ||||||
Transfer to reserve | ||||||||
Net cash received from related party under counter guarantee agreement | 386 | 386 | ||||||
Foreign currency translation adjustment | 3,434 | 3,434 | ||||||
Balance at Jun. 30, 2021 | 134,360 | $ 15 | 3,655 | 106,230 | 20,376 | 6,672 | (2,588) | |
Balance (in Shares) at Jun. 30, 2021 | 14,810,660 | |||||||
Stock issued for compensation | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 1,652 | |||||||
Net Income (loss) | (3,217) | (3,217) | ||||||
Foreign currency translation adjustment | (1,062) | (1,062) | ||||||
Foreign currency translation loss | 313 | 313 | ||||||
Balance at Sep. 30, 2021 | 130,399 | $ 15 | 3,660 | 103,013 | 20,376 | 5,610 | (2,275) | |
Balance (in Shares) at Sep. 30, 2021 | 14,812,312 | |||||||
Balance at Dec. 31, 2021 | 140,958 | $ 15 | 3,660 | (363) | 108,210 | 21,245 | 8,191 | |
Balance (in Shares) at Dec. 31, 2021 | 14,812,312 | |||||||
Stock issued for compensation | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 2,042 | |||||||
Net Income (loss) | (5,089) | (5,089) | ||||||
Repurchase of 14,746 shares of common stock | (37) | (37) | ||||||
Foreign currency translation loss | (836) | (836) | ||||||
Balance at Mar. 31, 2022 | 135,001 | $ 15 | 3,665 | (400) | 103,121 | 21,245 | 7,355 | |
Balance (in Shares) at Mar. 31, 2022 | 14,814,354 | |||||||
Balance at Dec. 31, 2021 | 140,958 | $ 15 | 3,660 | (363) | 108,210 | 21,245 | 8,191 | |
Balance (in Shares) at Dec. 31, 2021 | 14,812,312 | |||||||
Net Income (loss) | (8,812) | |||||||
Foreign currency translation adjustment | (14,915) | |||||||
Balance at Sep. 30, 2022 | 117,204 | $ 15 | 3,670 | (400) | 99,398 | 21,245 | (6,724) | |
Balance (in Shares) at Sep. 30, 2022 | 14,818,006 | |||||||
Balance at Mar. 31, 2022 | 135,001 | $ 15 | 3,665 | (400) | 103,121 | 21,245 | 7,355 | |
Balance (in Shares) at Mar. 31, 2022 | 14,814,354 | |||||||
Net Income (loss) | 2,400 | 2,400 | ||||||
Foreign currency translation loss | (7,743) | (7,743) | ||||||
Balance at Jun. 30, 2022 | 129,658 | $ 15 | 3,665 | (400) | 105,521 | 21,245 | (388) | |
Balance (in Shares) at Jun. 30, 2022 | 14,814,354 | |||||||
Stock issued for compensation | 5 | 5 | ||||||
Stock issued for compensation (in Shares) | 3,652 | |||||||
Net Income (loss) | (6,123) | (6,123) | ||||||
Foreign currency translation adjustment | (6,336) | |||||||
Foreign currency translation loss | (6,336) | (6,336) | ||||||
Balance at Sep. 30, 2022 | $ 117,204 | $ 15 | $ 3,670 | $ (400) | $ 99,398 | $ 21,245 | $ (6,724) | |
Balance (in Shares) at Sep. 30, 2022 | 14,818,006 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (8,812) | $ (6,158) |
Depreciation and amortization | 5,256 | 4,384 |
Loss from sale of property and equipment | 141 | 590 |
Provision of bad debt allowance | 3,943 | 676 |
Provision for obsolete inventories | 5,296 | 842 |
Changes in fair value of trading securities | 1,010 | (200) |
Changes in fair value of investments | 577 | (1,951) |
Deferred income tax | 42 | 644 |
Stock-based compensation | 10 | 10 |
Accounts receivable | (20,335) | (8,613) |
Inventories | 4,353 | (13,949) |
Value added tax receivable | (671) | (1,235) |
Other receivables and prepaid expenses | (434) | (1,096) |
Advances on inventory purchases | 3,317 | 586 |
Amounts due from related parties | 211 | (1,514) |
Accounts payable | 229 | 5,930 |
Accounts payable and other payables- related parties | 1,779 | (3,204) |
Other payables and accrued liabilities | (5,124) | (3,332) |
Value added and other taxes payable | 891 | (360) |
Income tax payable | (81) | 831 |
Net cash used in operating activities | (8,402) | (27,119) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment and intangible asset | (3,645) | (5,109) |
Net proceeds from sale (purchase) of trading securities | 52 | (1,077) |
Investment payment of other non-current assets | (3,028) | (773) |
Net cash used in investing activities | (6,621) | (6,959) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 56,018 | 56,110 |
Repayment of bank loans | (54,504) | (54,565) |
Repurchase of common stock | (37) | |
Net collection of amounts due from related party (equity) | 1,630 | |
Net cash provided by financing activities | 1,477 | 3,175 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (11,912) | 692 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (25,458) | (30,211) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 97,341 | 121,723 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 71,883 | 91,512 |
Cash and Cash Equivalents | 32,177 | 48,336 |
Restricted cash | 39,706 | 43,176 |
Total | 71,883 | 91,512 |
Cash paid during the period for: | ||
Interest | 1,458 | 1,909 |
Income taxes | 1,175 | 2,272 |
SUPPLEMENTAL SCHEDULE OF NON-CASH ACTIVITIES: | ||
Common stock issued for compensation | $ 10 | $ 10 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Nature of Operations and Basis of Presentation [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”), Nanjing Rui Lian Technology Company Limited (“Nanjing Rui Lian”), and Shanghai Huarui Fashion Supply Chain Management Group Co. Ltd. (“Shanghai Supply Chain” ) 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. Nanjing Rui Lian was closed in April 2022, 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 August 2022, Shanghai Huarui Fashion Supply Chain Management Group Co. Ltd. (“Shanghai Supply Chain”) was incorporated, which is a Company’s wholly-owned PRC subsidiary. Shanghai Supply Chain is engaged in the business of garments trading. 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, 2022, the condensed consolidated statements of operations and comprehensive loss, condensed consolidated statements of equity, and condensed consolidated statements of cash flows for the three and nine months ended September 30, 2022 and 2021. 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 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, 2022 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Significant 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, 2021 filed with the SEC (“2021 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, the estimates of the allowance for deferred tax assets, the accounts receivable allowance, 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, 2022 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 INVESTMENTS Trading securities Investments in equity securities of certain U.S. and HK public companies are accounted for as trading securities and measured at fair value in the consolidated balance sheets. Net gains and losses recognized during the three and nine months are summarized as follows (In thousands of U.S. Dollars). Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands of U.S. Dollars) Net (loss) gain recognized during the period on equity securities (321 ) (121 ) (1,010 ) 200 Less: Net (loss) gain recognized during the period on equity securities sold during the period (96 ) - (84 ) 54 Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (225 ) $ (121 ) $ (926 ) $ 146 Equity security investment In August 2020, Ever-Glory Apparel invested approximately $2.8 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-month 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. At each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. There is no significant adverse change in the regulatory, economic, or technological environment of the investee. Therefore, the investment was not impaired on September 30, 2022. Investment advances In September 2021, Goldenway signed an agreement and promised to invest approximately $7.0 million (RMB 50.0 million) cash for 20% interest of a Chinese private company. Under the agreement, Goldenway has the liquidation privilege to receive its share of the investee’s residual of its liquidated assets. If Goldenway’s share is less than its original investment amount plus 8% of annual return on investment, all other shareholders who signed this agreement shall use their shares of the liquidated assets to compensate Goldenway. The investee also shall compensate Goldenway if the investee cannot make agreed upon profits and maintain the number of customers. As of September 30, 2022, Goldenway advanced approximately $3.5 million (RMB 25.0 million) to the investee. The investment advances were recorded as other non-current assets. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 INVENTORIES Inventories at September 30, 2022 and December 31, 2021 consisted of the following: September 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 1,222 $ 1,375 Work-in-progress 12,416 14,375 Finished goods 35,400 48,091 Total inventories $ 49,038 $ 63,841 |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2022 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | NOTE 5 RESTRICTED CASH As of September 30, 2022 and December 31, 2021, restricted cash of approximately $39.4 million (RMB280.0 million) and approximately $39.2 million (RMB250.0 million) were cash on demand and time deposits pledged to Shanghai Pudong Development Bank for loans. As of September 30, 2022 and December 31, 2021, restricted cash of approximately $0.3 million (RMB2.0 million) and approximately $1.6 million (RMB10.0 million) were cash on demand and time deposits pledged to Nanjing Bank (Note 6). |
Bank Loans
Bank Loans | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021. September 30, December 31, Bank (In thousands of U.S. Dollars) Shanghai Pudong Development Bank $ 39,424 $ 39,200 Industrial and Commercial Bank of China 19,712 21,952 Bank of China 2,816 - Nanjing Bank 1,408 7,840 $ 63,360 $ 68,992 From March 2020 to July 2020, Ever-Glory Apparel entered into a certificate of three-year time deposit of approximately $26.8 million (RMB190.0 million) with the Shanghai Pudong Development Bank with annual interest rates ranging from 3.75% to 3.99%. As of September 30, 2022, Ever-Glory Apparel pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Ever-Glory Apparel had borrowed approximately $23.9 million (RMB 170.0 million) under this line of certificate with an annual interest rate from 1.50% to 2.65% and due between October 2022 to July 2023. In December 2020, Goldenway entered into a certificate of three-year time deposit of approximately $15.5 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. As of September 30,2022, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Goldenway had borrowed approximately $15.5 million (RMB110.0 million) under this line of certificate with annual interest rate from 1.85% to 2.60%, due between February to April 2023. 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 $5.6 million (RMB40.0 million). These loans are collateralized by the Company’s property and equipment. As of September 30, 2022, Goldenway had borrowed approximately $5.6 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2022. In August 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $14.1 million (RMB100.0 million) with Industrial and Commercial Bank of China, which is collateralized by assets of Jiangsu LA GO GO, Tianjin LA GO GO and Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer, under a collateral agreement executed among Ever-Glory Apparel, Jiangsu LA GO GO , Tianjin LA GO GO, Jiangsu Ever-Glory and the bank. As of September 30, 2022, Ever-Glory Apparel had borrowed approximately $14.1 million (RMB 100.0 million) under this line of credit with annual interest rates ranging from 4.15% to 4.35% and due between October 2022 to June 2023. In April 2020, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $6.3 million (RMB45.0 million). In September 2022, Goldenway pledged $0.3 million (RMB2.0 million) to Nanjing Bank. These loans are collateralized by the Company’s property and equipment and guaranteed by Jiangsu Ever-Glory. In September 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 1.79% and due in August 2023. As of September 30, 2022, approximately $5.2 million (RMB 37.0 million) was unused and available under this line of credit. In July 2022, Catch-Luck entered into a line of credit agreement with Bank of China, which allows the Company to borrow up to approximately $1.4 million (RMB10.0 million). These loans are guaranteed by the Company’s credit. In July 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 3.65% and due in July 2023. In August 2022, Goldenway entered into a line of credit agreement with Bank of China, which allows the Company to borrow up to approximately $1.4 million (RMB10.0 million). These loans are guaranteed by the Company’s credit. In August 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 3.65% and due in August 2023. All bank loans are used to fund our daily operations. There were no loans in default as of September 30, 2022. Total interest expense on bank loans amounted to approximately $1.5 million and $1.9 million for the nine months ended September 30, 2022 and 2021, respectively, and approximately $0.6 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2022 | |
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 are subject to income tax at the 25% statutory rate. 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 income (loss) for the three and nine months ended September 30, 2022 and 2021 was taxable in the following jurisdictions: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands of U.S. Dollars) PRC (6,671 ) (1,270 ) (7,316 ) (2,390 ) Others (287 ) (2 ) (294 ) (8 ) $ (6,958 ) $ (1,272 ) $ (7,610 ) $ (2,398 ) The following table reconciles the U.S. statutory rates to the Company’s effective tax rate for the three and nine months ended September 30, 2022 and 2021: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 U.S. tax rate 21.0 % 21.0 % 21.0 % 21.0 % Valuation allowance recognized with respect to the loss (14.7 )% (27.8 )% (40.4 )% (102.2 )% Foreign tax rate differential 4.0 % 4.0 % 4.0 % 4.0 % Others (22.3 )% 155.6 % 31.2 % 234.0 % Effective income tax rate (12.0 )% 152.8 % 15.8 % 156.8 % Income tax expense for the three and nine months ended September 30, 2022 and 2021 is as follows: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Current U.S. Federal - - - - Foreign $ 176 $ 1,903 $ 1,072 $ 3,121 Total Current $ 176 $ 1,903 $ 1,072 $ 3,121 Deferred U.S. Federal - - - - Foreign $ (1,011 ) $ 42 $ 131 $ 638 Total Deferred $ (1,011 ) $ 42 $ 131 $ 638 Income tax expense $ (835 ) $ 1,945 $ 1,202 $ 3,760 Deferred tax assets net of valuation allowance as of: September 30, December 31, (In thousands of U.S. Dollars) Inventories, net $ 3,008 $ 1,684 Accounts receivable, net 1,634 624 Deferred income 1,022 2,387 Accrued expenses 1,814 2,464 Depreciation 185 108 Net operating loss carryforward 4,906 3,782 Deferred tax assets 12,569 11,049 Valuation allowance (11,801 ) (10,150 ) Deferred tax assets, net $ 768 $ 899 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 three and nine months ended September 30, 2022 and 2021. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8 STOCKHOLDERS’ EQUITY Common stock issued to independent directors 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. On January 26, 2022, the Company issued 2,042 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 2021. The shares issued in 2022 were valued at $2.47 per share, which was the average market price of the common stock for the five days before the grant date. On July 25, 2022, the Company issued 3,652 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 2022. The shares issued in 2021 were valued at $1.36 per share, which was the average market price of the common stock for the five days before the grant date. Treasury stock (after “stock issued to independent directors”) In December 2021, the Company’s Board of Directors authorized the Company to repurchase its outstanding common stock pursuant to a Rule 10b-18 plan. In December 2021, the Company repurchased 147,334 shares of its common stock through negotiated transactions. In January 2022, the Company repurchased additional 14,746 shares from public market. These 162,080 shares of Common Stock became treasury shares of the Company, which may be resold or canceled in the future. The treasury stock is carried at cost of $0.4 million as of September 30, 2022. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
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. During nine months ended September 30, 2021, The Company received approximately $3,000 from the customers and paid the same amount to Wubija. During nine months ended September 30, 2022,there was no such transactions. Included in other income for the nine months ended September 30, 2022 and 2021 is rental income from EsC’Lav, the entity controlled by Mr. Kang under operating lease agreement with term through 2022. The rental income is $0, $6,378, $6,502 and $19,135 for the three and nine months ended September 30, 2022 and 2021, respectively. The rent is exempted for three months ended September 30, 2022 due to outbreak of Covid-19 in China. Other expenses due to Related Parties Included in other expenses for the three and nine months ended September 30, 2022 and 2021 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, 2022 2021 2022 2021 (In thousands of U.S. Dollars) Chuzhou Huarui 52 56 162 166 Kunshan Enjin - 23 23 70 Total $ 52 $ 79 $ 185 $ 236 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 approximately $0.5 million, $0.3 million, $0.9 million and $1.2 million during the three and nine months ended September 30, 2022 and 2021, respectively. In addition, the Company sub-contracted certain manufacturing work to related companies totaled approximately $11.4 million, $6.9 million, $23.6 million and $17.0 million for the three and nine months ended September 30, 2022 and 2021, 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, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In thousands of U.S. Dollars) Chuzhou Huarui $ 249 $ 449 $ 1,188 $ 1,310 Fengyang Huarui 1,009 665 1,618 1,316 Nanjing Ever-Kyowa 324 392 1,105 1,102 Ever-Glory Vietnam 9,380 5,154 18,867 11,597 Nanjing Knitting 500 300 866 1,217 EsCeLav - - - 37 Jiangsu Ever-Glory - - - 464 $ 11,462 $ 6,960 $ 23,644 $ 17,043 Accounts Payable – Related Parties The accounts payable to related parties at September 30, 2022 and December 31, 2021 are as follows: 2022 2021 (In thousands of Ever-Glory Vietnam $ 534 395 Fengyang Huarui 369 161 Nanjing Ever-Kyowa 326 - Chuzhou Huarui 701 59 Nanjing Knitting 946 668 Jiangsu Ever-Glory 31 49 Total $ 2,907 $ 1,332 Amounts Due From Related Parties-current assets The amounts due from related parties at September 30, 2022 and December 31, 2021 are as follows: 2022 2021 (In thousands of Jiangsu Ever-Glory $ - $ 220 Total $ - $ 220 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, 2022 and 2021, 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, $0.1 million, $0.02 million and $2.9 million during the three and nine months ended September 30, 2022 and 2021, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at a cost of $0, $0, $0 and $0.5 million during the three and nine months ended September 30, 2022 and 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 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, 2022, the costs of the leases recognized in cost of revenues and general administrative expenses are $15.7 million and $0.6 million, respectively. Cash paid for the operating leases including in the operating cash flows was $15.9 million. 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 and $0.6 million, respectively. Cash paid for the operating leases including in the operating cash flows was $23.1 million. The following table summarizes the maturity of operating lease liabilities: Years ending , (In thousands of U.S. Dollars) 2022 $ 171 2023 789 2024 394 2025 394 2026 394 Thereafter 11,370 Total lease payment 13,512 Less: Interest 5,974 Total $ 7,538 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. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2022 | |
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. We are subject to risks and uncertainties because of the COVID-19 pandemic. We continue to evaluate the global risks and the slowdown in business activity related to COVID-19, including the potential impacts on our employees, customers, suppliers and financial results. Since January 1, 2022 to the date of this report, there have been outbreaks of the Omicron and other new variants of the COVID-19 in China, and the local governments have placed lockdown and mass testing policies in several cities in China, including Shanghai, where our customers and suppliers operate. The travel restrictions, mandatory COVID-19 tests, quarantine requirements and/or temporary closure of office buildings and facilities have been imposed by local governments. T 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. As the situation surrounding COVID-19 remains fluid, it is difficult to predict the duration of the pandemic and the impact on our business, operations, financial condition and cash flows. The severity of the impact on our business in the fiscal year ended December 31, 2022 will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic (including the advent of variants and the impact of vaccination on infection and hospitalization rates), the extent and severity of the impact on our customers and suppliers, the continued disruption to the manufacturing of and demand for our businesses’ products and services, the development of China’s policy of effecting closures to avoid infections; the effect of local regulations regarding safety measures to address the spread of COVID-19, and the impact of the global business and economic environment on liquidity and the availability of capital, all of which are uncertain and cannot be predicted. Due to the evolving and uncertain nature of this event, we cannot predict at this time the full extent to which the COVID-19 pandemic will adversely impact our business, results and financial condition, which will depend on many factors that are not known at this time. We are staying in close communication with our employees, customers and suppliers, and acting to mitigate the impact of this dynamic and evolving situation, but there is no guarantee we will be able to do so. 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, 2022, the Company had two wholesale customer that represented approximately 17% and 11% of the Company’s revenues. For the nine months ended September 30, 2022, the Company had two wholesale customer that represented approximately 17% and 12% of the Company’s revenues. 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 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, 2022 and 2021. For the retail business, the Company relied on three raw material suppliers that represented approximately 53%,17% and 16% of raw material purchases during the nine months ended September 30, 2022. For the Company’s 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 wholesale business, the Company relied on one finished goods supplier which is a related party that represented 35.1% of the total raw material purchases during the nine months ended September 30, 2022. 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 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, 2022 and 2021. The Company’s revenues for the three and nine months ended September 30, 2022 and 2021 were earned in the following geographic areas: Three months ended Nine months ended 2022 2021 2022 2021 (In thousands of U.S. Dollars) The People’s Republic of China $ 30,492 $ 16,376 $ 45,483 $ 28,222 Hong Kong China 14,950 9,153 22,902 16,124 United Kingdom 4,950 2,020 10,469 5,558 Europe-Other 11,616 8,846 24,528 18,905 Japan 5,198 8,435 11,836 13,390 United States 15,526 17,373 39,820 29,650 Total wholesale business 82,732 62,202 155,038 111,849 Retail business 23,705 32,204 79,984 113,927 Total $ 106,437 $ 94,406 $ 235,022 $ 225,776 |
Segments
Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTS | NOTE 12 SEGMENTS The Company reports financial and operating information in the following two segments: Wholesale Retail Total (In thousands of U.S. Dollars) Nine months ended September 30, 2022 Segment profit or loss: Net revenue from external customers $ 155,038 79,984 235,022 Income (loss) from operations $ 6,412 (12,558 ) (6,146 ) Interest income $ 278 21 299 Interest expense $ 1,458 - 1,458 Depreciation and amortization $ 1,090 4,166 5,256 Loss before income tax expense 4,334 (11,944 ) (7,610 ) Income tax expense $ 1,192 10 1,202 Segment assets: Additions to property, plant and equipment 2,305 1,340 3,645 Inventory 15,013 34,025 49,038 Total assets 180,755 117,801 298,556 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 $ 2,736 1,024 3,760 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) Three months ended September 30, 2022 Segment profit or loss: Net revenue from external customers $ 82,732 23,705 106,437 Income (loss) from operations $ 2,443 (8,494 ) (6,051 ) Interest income $ 18 4 22 Interest expense $ 524 - 524 Depreciation and amortization $ 296 1,104 1,400 Income (loss) before income tax expense 1,269 (8,227 ) (6,958 ) Income tax expense $ 274 (1,109 ) (835 ) 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 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS On October 31, 2022, we filed a preliminary proxy statement to solicit votes for, among other proposals, the proposed termination of the registration of our common stock under Section 12(g) of the Exchange Act the suspension of our duty to file periodic reports and other information with the SEC under Section 15(d) of the Exchange Act. On the same date, we announced that our Board of Directors has approved for us to repurchase up to $3.5 million of our outstanding common stock, which should end on the earlier of (i) the date that the aggregate value of the repurchased shares of common stock reaches $3.5 million; (ii) the date when the registration of our common stock is terminated under Section 12(g) of the Exchange Act; or (iii) the date when our duty to file periodic reports and other information with the SEC is suspended under Section 15(d) thereunder. For more information and detailed discussion about the background and effects of the deregistration and delisting of our common stock, please refer to Form PRE 14A filed on October 31, 2022. From October 1,2022 to the date of this report ,we have not repurchased any shares of common stock. The Company has evaluated subsequent events through the date these consolidated financial statements were issued. All subsequent events requiring recognition as of September 30, 2022 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, 2022 | |
Nature of Operations and Basis of Presentation [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, the estimates of the allowance for deferred tax assets, the accounts receivable allowance, 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, 2022 | |
Investments [Abstract] | |
Schedule of net gains and losses | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands of U.S. Dollars) Net (loss) gain recognized during the period on equity securities (321 ) (121 ) (1,010 ) 200 Less: Net (loss) gain recognized during the period on equity securities sold during the period (96 ) - (84 ) 54 Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (225 ) $ (121 ) $ (926 ) $ 146 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, (In thousands of U.S. Dollars) Raw materials $ 1,222 $ 1,375 Work-in-progress 12,416 14,375 Finished goods 35,400 48,091 Total inventories $ 49,038 $ 63,841 |
Bank Loans (Tables)
Bank Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | September 30, December 31, Bank (In thousands of U.S. Dollars) Shanghai Pudong Development Bank $ 39,424 $ 39,200 Industrial and Commercial Bank of China 19,712 21,952 Bank of China 2,816 - Nanjing Bank 1,408 7,840 $ 63,360 $ 68,992 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax liability adjustment resulted from the reevaluation of the company’s tax position | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands of U.S. Dollars) PRC (6,671 ) (1,270 ) (7,316 ) (2,390 ) Others (287 ) (2 ) (294 ) (8 ) $ (6,958 ) $ (1,272 ) $ (7,610 ) $ (2,398 ) |
Schedule of reconciles the U.S. statutory rates to the company’s effective tax rate | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 U.S. tax rate 21.0 % 21.0 % 21.0 % 21.0 % Valuation allowance recognized with respect to the loss (14.7 )% (27.8 )% (40.4 )% (102.2 )% Foreign tax rate differential 4.0 % 4.0 % 4.0 % 4.0 % Others (22.3 )% 155.6 % 31.2 % 234.0 % Effective income tax rate (12.0 )% 152.8 % 15.8 % 156.8 % |
Schedule of income tax expense | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Current U.S. Federal - - - - Foreign $ 176 $ 1,903 $ 1,072 $ 3,121 Total Current $ 176 $ 1,903 $ 1,072 $ 3,121 Deferred U.S. Federal - - - - Foreign $ (1,011 ) $ 42 $ 131 $ 638 Total Deferred $ (1,011 ) $ 42 $ 131 $ 638 Income tax expense $ (835 ) $ 1,945 $ 1,202 $ 3,760 |
Schedule of deferred tax assets net of valuation allowance | September 30, December 31, (In thousands of U.S. Dollars) Inventories, net $ 3,008 $ 1,684 Accounts receivable, net 1,634 624 Deferred income 1,022 2,387 Accrued expenses 1,814 2,464 Depreciation 185 108 Net operating loss carryforward 4,906 3,782 Deferred tax assets 12,569 11,049 Valuation allowance (11,801 ) (10,150 ) Deferred tax assets, net $ 768 $ 899 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of other expenses due to related parties | Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands of U.S. Dollars) Chuzhou Huarui 52 56 162 166 Kunshan Enjin - 23 23 70 Total $ 52 $ 79 $ 185 $ 236 |
Schedule of sub-contracts with related parties | Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In thousands of U.S. Dollars) Chuzhou Huarui $ 249 $ 449 $ 1,188 $ 1,310 Fengyang Huarui 1,009 665 1,618 1,316 Nanjing Ever-Kyowa 324 392 1,105 1,102 Ever-Glory Vietnam 9,380 5,154 18,867 11,597 Nanjing Knitting 500 300 866 1,217 EsCeLav - - - 37 Jiangsu Ever-Glory - - - 464 $ 11,462 $ 6,960 $ 23,644 $ 17,043 |
Schedule of accounts payable to related parties | 2022 2021 (In thousands of Ever-Glory Vietnam $ 534 395 Fengyang Huarui 369 161 Nanjing Ever-Kyowa 326 - Chuzhou Huarui 701 59 Nanjing Knitting 946 668 Jiangsu Ever-Glory 31 49 Total $ 2,907 $ 1,332 |
Schedule of amounts due from related party current assets | 2022 2021 (In thousands of Jiangsu Ever-Glory $ - $ 220 Total $ - $ 220 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of maturity of operating lease liabilities | Years ending , (In thousands of U.S. Dollars) 2022 $ 171 2023 789 2024 394 2025 394 2026 394 Thereafter 11,370 Total lease payment 13,512 Less: Interest 5,974 Total $ 7,538 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of revenues for geographic areas | Three months ended Nine months ended 2022 2021 2022 2021 (In thousands of U.S. Dollars) The People’s Republic of China $ 30,492 $ 16,376 $ 45,483 $ 28,222 Hong Kong China 14,950 9,153 22,902 16,124 United Kingdom 4,950 2,020 10,469 5,558 Europe-Other 11,616 8,846 24,528 18,905 Japan 5,198 8,435 11,836 13,390 United States 15,526 17,373 39,820 29,650 Total wholesale business 82,732 62,202 155,038 111,849 Retail business 23,705 32,204 79,984 113,927 Total $ 106,437 $ 94,406 $ 235,022 $ 225,776 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of financial and operating information | Wholesale Retail Total (In thousands of U.S. Dollars) Nine months ended September 30, 2022 Segment profit or loss: Net revenue from external customers $ 155,038 79,984 235,022 Income (loss) from operations $ 6,412 (12,558 ) (6,146 ) Interest income $ 278 21 299 Interest expense $ 1,458 - 1,458 Depreciation and amortization $ 1,090 4,166 5,256 Loss before income tax expense 4,334 (11,944 ) (7,610 ) Income tax expense $ 1,192 10 1,202 Segment assets: Additions to property, plant and equipment 2,305 1,340 3,645 Inventory 15,013 34,025 49,038 Total assets 180,755 117,801 298,556 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 $ 2,736 1,024 3,760 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) Three months ended September 30, 2022 Segment profit or loss: Net revenue from external customers $ 82,732 23,705 106,437 Income (loss) from operations $ 2,443 (8,494 ) (6,051 ) Interest income $ 18 4 22 Interest expense $ 524 - 524 Depreciation and amortization $ 296 1,104 1,400 Income (loss) before income tax expense 1,269 (8,227 ) (6,958 ) Income tax expense $ 274 (1,109 ) (835 ) 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 |
Investments (Details)
Investments (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 USD ($) | Aug. 31, 2020 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | |
Investments [Abstract] | ||||||
Invested amount | $ 2.8 | ¥ 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-month 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 | ¥ 50 | ||||
Cash interest percentage | 20% | 20% | ||||
Original investment amount percentage | 8% | 8% | ||||
Advanced amount of investment | $ 3.5 | ¥ 25 |
Investments (Details) - Schedul
Investments (Details) - Schedule of net gains and losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Net Gains And Losses Abstract | ||||
Net (loss) gain recognized during the period on equity securities | $ (321) | $ (121) | $ (1,010) | $ 200 |
Less: Net (loss) gain recognized during the period on equity securities sold during the period | (96) | (84) | 54 | |
Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date | $ (225) | $ (121) | $ (926) | $ 146 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Inventories Abstract | ||
Raw materials | $ 1,222 | $ 1,375 |
Work-in-progress | 12,416 | 14,375 |
Finished goods | 35,400 | 48,091 |
Total inventories | $ 49,038 | $ 63,841 |
Restricted Cash (Details)
Restricted Cash (Details) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) |
Shanghai Pudong Development Bank [Member] | ||||
Restricted Cash (Details) [Line Items] | ||||
Restricted cash | $ 39.4 | ¥ 280 | $ 39,200,000 | ¥ 250,000,000 |
Nanjing Bank [Member] | ||||
Restricted Cash (Details) [Line Items] | ||||
Restricted cash | $ 0.3 | ¥ 2 | $ 1,600,000 | ¥ 10,000,000 |
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 | ||||||||||||||
Aug. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) | Sep. 30, 2021 | Aug. 31, 2019 USD ($) | Aug. 31, 2019 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jul. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 CNY (¥) | Aug. 31, 2022 CNY (¥) | Jul. 31, 2022 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jul. 31, 2020 CNY (¥) | Apr. 30, 2020 USD ($) | Apr. 30, 2020 CNY (¥) | |
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.65% | 3.65% | |||||||||||||||||
Borrowed loans amount | $ 1.4 | $ 1.4 | ¥ 10 | ¥ 10 | |||||||||||||||
Line of credit agreement amount | $ 1.4 | $ 1.4 | ¥ 10 | ¥ 10 | |||||||||||||||
Total Interest expense | $ 0.6 | $ 1.2 | $ 1.5 | $ 1.9 | |||||||||||||||
Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Time deposit | $ 26.8 | ||||||||||||||||||
Ever Glory Apparel [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Borrowed loans amount | 14.1 | $ 14.1 | ¥ 100 | ||||||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 4.15% | 4.15% | |||||||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 4.35% | 4.35% | |||||||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Time deposit | 23.9 | $ 23.9 | 170 | ¥ 190 | |||||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | Minimum [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.75% | 1.50% | 1.50% | ||||||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | Maximum [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 3.99% | 2.65% | 2.65% | ||||||||||||||||
Ever Glory Apparel [Member] | Industrial and Commercial Bank of China [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit agreement amount | $ 14.1 | ¥ 100 | |||||||||||||||||
Goldenway [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Time deposit | $ 15.5 | ¥ 110 | |||||||||||||||||
Line of credit annual interest rates | 3.85% | ||||||||||||||||||
Due date of revolving line of credit agreement, description | As of September 30,2022, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Goldenway had borrowed approximately $15.5 million (RMB110.0 million) under this line of certificate with annual interest rate from 1.85% to 2.60%, due between February to April 2023. | As of September 30,2022, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Goldenway had borrowed approximately $15.5 million (RMB110.0 million) under this line of certificate with annual interest rate from 1.85% to 2.60%, due between February to April 2023. | |||||||||||||||||
Goldenway [Member] | Industrial and Commercial Bank of China [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Due date of revolving line of credit agreement, description | As of September 30, 2022, Goldenway had borrowed approximately $5.6 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2022. | As of September 30, 2022, Goldenway had borrowed approximately $5.6 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 | $ 5.6 | ¥ 40 | |||||||||||||||||
Goldenway [Member] | Nanjing Bank [Member] | |||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||
Line of credit annual interest rates | 1.79% | ||||||||||||||||||
Borrowed loans amount | 1.4 | $ 1.4 | 10 | ||||||||||||||||
Line of credit agreement amount | $ 6.3 | ¥ 45 | |||||||||||||||||
Goldenway pledged | 0.3 | ¥ 2 | |||||||||||||||||
Line of credit | $ 5.2 | $ 5.2 | ¥ 37 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Bank loans | $ 63,360 | $ 68,992 |
Shanghai Pudong Development Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Bank loans | 39,424 | 39,200 |
Industrial and Commercial Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Bank loans | 19,712 | 21,952 |
Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Bank loans | 2,816 | |
Nanjing Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Bank loans | $ 1,408 | $ 7,840 |
Income Tax (Details)
Income Tax (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 HKD ($) | |
Income Tax (Details) [Line Items] | |
PRC statutory rate | 25% |
Income tax rate, percentage | 16.50% |
Profit (in Dollars) | $ 2 |
U.S. tax reform, 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. |
Hongkong [Member] | |
Income Tax (Details) [Line Items] | |
Income tax rate, percentage | 8.25% |
Profit (in Dollars) | $ 2 |
PRC [Member] | |
Income Tax (Details) [Line Items] | |
Income tax rate for dividends distribution | 10% |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of tax liability adjustment resulted from the reevaluation of the company’s tax position - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax (Details) - Schedule of tax liability adjustment resulted from the reevaluation of the company’s tax position [Line Items] | ||||
Pre-tax income (loss) | $ (6,958) | $ (1,272) | $ (7,610) | $ (2,398) |
PRC [Member] | ||||
Income Tax (Details) - Schedule of tax liability adjustment resulted from the reevaluation of the company’s tax position [Line Items] | ||||
Pre-tax income (loss) | (6,671) | (1,270) | (7,316) | (2,390) |
Others [Member] | ||||
Income Tax (Details) - Schedule of tax liability adjustment resulted from the reevaluation of the company’s tax position [Line Items] | ||||
Pre-tax income (loss) | $ (287) | $ (2) | $ (294) | $ (8) |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of reconciles the U.S. statutory rates to the company’s effective tax rate | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Reconciles The USStatutory Rates To The Company SEffective Tax Rate Abstract | ||||
U.S. tax rate | 21% | 21% | 21% | 21% |
Valuation allowance recognized with respect to the loss | (14.70%) | (27.80%) | (40.40%) | (102.20%) |
Foreign tax rate differential | 4% | 4% | 4% | 4% |
Others | (22.30%) | 155.60% | 31.20% | 234% |
Effective income tax rate | (12.00%) | 152.80% | 15.80% | 156.80% |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of income tax expense - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current | ||||
U.S. Federal | ||||
Foreign | 176 | 1,903 | 1,072 | 3,121 |
Total Current | 176 | 1,903 | 1,072 | 3,121 |
Deferred | ||||
U.S. Federal | ||||
Foreign | (1,011) | 42 | 131 | 638 |
Total Deferred | (1,011) | 42 | 131 | 638 |
Income tax expense | $ (835) | $ 1,945 | $ 1,202 | $ 3,760 |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of deferred tax assets net of valuation allowance - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Deferred Tax Assets Net Of Valuation Allowance Abstract | ||
Inventories, net | $ 3,008 | $ 1,684 |
Accounts receivable, net | 1,634 | 624 |
Deferred income | 1,022 | 2,387 |
Accrued expenses | 1,814 | 2,464 |
Depreciation | 185 | 108 |
Net operating loss carryforward | 4,906 | 3,782 |
Deferred tax assets | 12,569 | 11,049 |
Valuation allowance | (11,801) | (10,150) |
Deferred tax assets, net | $ 768 | $ 899 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 1 Months Ended | ||||||
Jul. 25, 2022 $ / shares shares | Jan. 26, 2022 $ / shares shares | Dec. 31, 2021 shares | Feb. 09, 2021 $ / shares shares | Sep. 30, 2021 $ / shares shares | Sep. 30, 2022 USD ($) | Jan. 31, 2022 shares | |
Stockholders' Equity (Details) [Line Items] | |||||||
Common stock shares issued to independent directors | 3,652 | 1,652 | |||||
Number of directors | 2 | 2 | |||||
Average market price of the common stock for the five days before the grant date (in Dollars per share) | $ / shares | $ 1.36 | $ 3 | |||||
Repurchased shares | 147,334 | ||||||
Stock repurchased | 14,746 | ||||||
Treasury shares common stock | 162,080 | ||||||
Treasury stock carried cost (in Dollars) | $ | $ 0.4 | ||||||
Two Independent Directors [Member] | |||||||
Stockholders' Equity (Details) [Line Items] | |||||||
Common stock shares issued to independent directors | 2,042 | 1,500 | |||||
Number of directors | 2 | 2 | |||||
Average market price of the common stock for the five days before the grant date (in Dollars per share) | $ / shares | $ 2.47 | $ 3.34 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions (Details) [Line Items] | ||||
Customers paid | $ 3,000 | |||
Rental income | $ 0 | $ 6,502,000 | $ 6,378,000 | 19,135,000 |
Sub-contracts with related parties | 11,400,000 | 23,600,000 | $ 6,900,000 | 17,000,000 |
Mr. Kang [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Maximum aggregate percentage | 83% | |||
Nanjing Knitting [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Purchased raw materials | 500,000 | 900,000 | $ 300,000 | 1,200,000 |
Jiangsu Ever-Glory[Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Guarantees on lines of credit | 0 | 20,000 | 100,000 | 2,900,000 |
Lines of credit | $ 0 | $ 0 | $ 0 | $ 500,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of other expenses due to related parties - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions (Details) - Schedule of other expenses due to related parties [Line Items] | ||||
Total | $ 52 | $ 79 | $ 185 | $ 236 |
Chuzhou Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of other expenses due to related parties [Line Items] | ||||
Total | 52 | 56 | 162 | 166 |
Kunshan Enjin [Member] | ||||
Related Party Transactions (Details) - Schedule of other expenses due to related parties [Line Items] | ||||
Total | $ 23 | $ 23 | $ 70 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of sub-contracts with related parties - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | $ 11,462 | $ 6,960 | $ 23,644 | $ 17,043 |
Chuzhou Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 249 | 449 | 1,188 | 1,310 |
Fengyang Huarui [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 1,009 | 665 | 1,618 | 1,316 |
Nanjing Ever Kyowa [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 324 | 392 | 1,105 | 1,102 |
Ever Glory Vietnam [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 9,380 | 5,154 | 18,867 | 11,597 |
Nanjing Knitting [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 500 | $ 300 | 866 | 1,217 |
EsCeLav [Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | 37 | |||
JiangsuEverGlory[Member] | ||||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||||
Total | $ 464 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of accounts payable to related parties - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Ever Glory Vietnam [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 534 | $ 395 |
Fengyang Huarui [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 369 | 161 |
Nanjing Ever Kyowa [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 326 | |
Chuzhou Huarui [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 701 | 59 |
Nanjing Knitting [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 946 | 668 |
Jiangsu Ever-Glory [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 31 | 49 |
Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 2,907 | $ 1,332 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of amounts due from related party current assets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Total | $ 220 | |
JiangsuEverGlory[Member] | ||
Related Party Transaction [Line Items] | ||
Total | $ 220 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies (Details) [Line Items] | ||||
Weighted average remaining lease term | 30 years | 30 years | ||
Weighted average discount rate | 4.35% | 4.35% | ||
General administrative expenses | $ 9,306 | $ 9,467 | $ 21,821 | $ 24,980 |
Cash paid for operating leases | 13,512 | |||
Operating cash paid | 23,100 | |||
Operating Lease Commitment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Cost of revenue | 15,700 | 22,500 | ||
General administrative expenses | 600 | $ 600 | ||
Cash paid for operating leases | $ 15,900 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of maturity of operating lease liabilities $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Schedule Of Maturity Of Operating Lease Liabilities Abstract | |
2022 | $ 171 |
2023 | 789 |
2024 | 394 |
2025 | 394 |
2026 | 394 |
Thereafter | 11,370 |
Total lease payment | 13,512 |
Less: Interest | 5,974 |
Total | $ 7,538 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Risks and Uncertainties (Details) [Line Items] | ||||
Percentage of revenues | 11% | 12% | ||
Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Total finished goods purchases, percentage | 10% | 10% | ||
Wholesale business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Total raw material purchasesd percentage | 35.10% | 29.70% | ||
Number of suppliers | 1 | 1 | ||
Wholesale Customer [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Number of customer | 2 | 1 | 2 | 1 |
Percentage of revenues | 17% | 17% | 17% | 15% |
Wholesale business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Total raw material purchasesd percentage | 10% | 10% | 10% | |
Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Number of suppliers | 3 | 5 | ||
Supplier One [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Raw material purchases, percentage | 53% | 30% | ||
Supplier Two [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Raw material purchases, percentage | 17% | 24% | ||
Supplier three [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Raw material purchases, percentage | 19% | |||
Supplier Four [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Raw material purchases, percentage | 11% | |||
Supplier Five [Member] | Retail Business [Member] | ||||
Risks and Uncertainties (Details) [Line Items] | ||||
Raw material purchases, percentage | 10% |
Risks and Uncertainties (Deta_2
Risks and Uncertainties (Details) - Schedule of revenues for geographic areas - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Mainland China [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 30,492 | $ 16,376 | $ 45,483 | $ 28,222 |
Hong Kong China [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 14,950 | 9,153 | 22,902 | 16,124 |
United Kingdom [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 4,950 | 2,020 | 10,469 | 5,558 |
Europe-Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 11,616 | 8,846 | 24,528 | 18,905 |
Japan [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,198 | 8,435 | 11,836 | 13,390 |
United States [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 15,526 | 17,373 | 39,820 | 29,650 |
Total wholesale business [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 82,732 | 62,202 | 155,038 | 111,849 |
Retail business [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 23,705 | 32,204 | 79,984 | 113,927 |
Total [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 106,437 | $ 94,406 | $ 235,022 | $ 225,776 |
Segments (Details) - Schedule o
Segments (Details) - Schedule of financial and operating information - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment profit or loss: | ||||
Net revenue from external customers | $ 106,437 | $ 94,406 | $ 235,022 | $ 225,776 |
Income (loss) from operations | (6,051) | (700) | (6,146) | (5,437) |
Interest income | 22 | 176 | 299 | 928 |
Interest expense | 524 | 1,218 | 1,458 | 1,909 |
Depreciation and amortization | 1,400 | 1,172 | 5,256 | 4,384 |
Income (loss) before income tax expense | (6,958) | (1,272) | (7,610) | (2,398) |
Income tax expense | (835) | 1,945 | 1,202 | 3,760 |
Additions to property, plant and equipment | 3,645 | 5,109 | ||
Inventory | 49,038 | 67,275 | 49,038 | 67,275 |
Total assets | 298,556 | 337,734 | 298,556 | 337,734 |
Wholesale segment [Member] | ||||
Segment profit or loss: | ||||
Net revenue from external customers | 82,732 | 62,203 | 155,038 | 111,849 |
Income (loss) from operations | 2,443 | 3,570 | 6,412 | 199 |
Interest income | 18 | 150 | 278 | 849 |
Interest expense | 524 | 1,189 | 1,458 | 1,828 |
Depreciation and amortization | 296 | 347 | 1,090 | 657 |
Income (loss) before income tax expense | 1,269 | 2,575 | 4,334 | 2,135 |
Income tax expense | 274 | 1,932 | 1,192 | 2,736 |
Additions to property, plant and equipment | 2,305 | 1,406 | ||
Inventory | 15,013 | 24,972 | 15,013 | 24,972 |
Total assets | 180,755 | 186,276 | 180,755 | 186,276 |
Retail segment [Member] | ||||
Segment profit or loss: | ||||
Net revenue from external customers | 23,705 | 32,203 | 79,984 | 113,927 |
Income (loss) from operations | (8,494) | (4,270) | (12,558) | (5,635) |
Interest income | 4 | 26 | 21 | 79 |
Interest expense | 29 | 82 | ||
Depreciation and amortization | 1,104 | 825 | 4,166 | 3,727 |
Income (loss) before income tax expense | (8,227) | (3,847) | (11,944) | (4,533) |
Income tax expense | (1,109) | 13 | 10 | 1,024 |
Additions to property, plant and equipment | 1,340 | 3,703 | ||
Inventory | 34,025 | 42,303 | 34,025 | 42,303 |
Total assets | $ 117,801 | $ 151,458 | $ 117,801 | $ 151,458 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ in Millions | Oct. 31, 2022 USD ($) |
Subsequent Events (Details) [Line Items] | |
Common stock, outstanding | $ 3.5 |
Stock repurchased | $ 3.5 |