Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 08, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Ever-Glory International Group, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,810,660 | |
Amendment Flag | false | |
Entity Central Index Key | 0000943184 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 0-28806 | |
Entity Incorporation, State or Country Code | FL | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 78,056 | $ 81,865 |
Restricted cash | 45,660 | 39,858 |
Trading securities | 3,036 | 1,792 |
Accounts receivable, net | 46,719 | 53,285 |
Inventories | 43,342 | 53,893 |
Advances on inventory purchases | 7,802 | 10,261 |
Value added tax receivable | 1,183 | 1,244 |
Other receivables and prepaid expenses | 5,956 | 5,479 |
Amounts due from related parties | 674 | 567 |
Total Current Assets | 232,428 | 248,244 |
NON-CURRENT ASSETS | ||
Equity security investment | 3,877 | 3,932 |
Intangible assets, net | 4,712 | 4,794 |
Property and equipment, net | 31,881 | 32,164 |
Operating lease right-of-use assets | 55,839 | 41,690 |
Deferred tax assets | 879 | 902 |
Total Non-Current Assets | 97,188 | 83,482 |
TOTAL ASSETS | 329,616 | 331,726 |
CURRENT LIABILITIES | ||
Bank loans | 71,534 | 65,919 |
Accounts payable | 52,083 | 67,762 |
Accounts payable and other payables – related parties | 2,829 | 3,764 |
Other payables and accrued liabilities | 13,522 | 16,073 |
Value added and other taxes payable | 684 | 909 |
Income tax payable | 704 | 1,062 |
Current operating lease liabilities | 47,327 | 33,481 |
Total Current Liabilities | 188,683 | 188,970 |
NON-CURRENT LIABILITIES | ||
Non-current operating lease liabilities | 8,622 | 8,307 |
TOTAL LIABILITIES | 197,305 | 197,277 |
COMMITMENTS AND CONTINGENCIES (Note 9) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,810,660 and 14,809,160 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively) | 15 | 15 |
Additional paid-in capital | 3,655 | 3,650 |
Retained earnings | 108,001 | 109,171 |
Statutory reserve | 20,376 | 20,376 |
Accumulated other comprehensive income | 3,238 | 4,590 |
Amounts due from related party | (2,974) | (3,353) |
Total equity | 132,311 | 134,449 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 329,616 | $ 331,726 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 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 | 14,810,660 | 14,809,160 |
Common stock, shares outstanding | 14,810,660 | 14,809,160 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
SALES | $ 70,814 | $ 58,355 |
COST OF SALES | 48,379 | 42,317 |
GROSS PROFIT | 22,435 | 16,038 |
OPERATING EXPENSES | ||
Selling expenses | 15,548 | 13,478 |
General and administrative expenses | 7,851 | 5,785 |
Total operating expenses | 23,399 | 19,263 |
LOSS FROM OPERATIONS | (964) | (3,225) |
OTHER INCOME (EXPENSE) | ||
Interest income | 224 | 277 |
Interest expense | (492) | (341) |
Government subsidy | 259 | 460 |
Other income (expense), net | 532 | 358 |
Total other income (expense), net | 523 | 754 |
LOSS BEFORE INCOME TAX | (441) | (2,471) |
INCOME TAX EXPENSE | (729) | (227) |
NET LOSS | (1,170) | (2,698) |
Net income attributable to the non-controlling interest | (3) | |
NET LOSS ATTRIBUTABLE TO THE COMPANY | (1,170) | (2,701) |
NET LOSS | (1,170) | (2,698) |
Foreign currency translation loss | (1,352) | (1,437) |
COMPREHENSIVE LOSS | (2,522) | (4,135) |
Comprehensive loss attributable to the non-controlling interest | 6 | |
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY | $ (2,522) | $ (4,129) |
LOSS PER SHARE: | ||
Basic and diluted (in Dollars per share) | $ (0.08) | $ (0.18) |
Weighted average number of shares outstanding Basic and diluted (in Shares) | 14,810,001 | 14,804,832 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of changes in Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Retained Earnings Unrestricted | Retained Earnings Statutory reserve | Accumulated other Comprehensive Income (loss) | Amounts due from related party | Total equity attributable to stockholders of the Company | Non- controlling Interest | Total |
Balance at Dec. 31, 2019 | $ 15 | $ 3,640 | $ 106,328 | $ 19,939 | $ (4,330) | $ (4,932) | $ 120,660 | $ (1,510) | $ 119,150 |
Balance (in Shares) at Dec. 31, 2019 | 14,801,770 | ||||||||
Stock-based compensation | 5 | 5 | 5 | ||||||
Stock-based compensation (in Shares) | 3,062 | ||||||||
Net income (loss) | (2,701) | (2,701) | 3 | (2,698) | |||||
Net cash received from related party under counter guarantee agreement | 785 | 785 | 785 | ||||||
Foreign currency translation income (loss) | (1,440) | (1,440) | 3 | (1,437) | |||||
Balance at Mar. 31, 2020 | $ 15 | 3,645 | 103,627 | 19,939 | (5,770) | (4,147) | 117,309 | $ (1,504) | 115,805 |
Balance (in Shares) at Mar. 31, 2020 | 14,804,832 | ||||||||
Balance at Dec. 31, 2020 | $ 15 | 3,650 | 109,171 | 20,376 | 4,590 | (3,353) | 134,449 | 134,449 | |
Balance (in Shares) at Dec. 31, 2020 | 14,809,160 | ||||||||
Stock-based compensation | 5 | 5 | 5 | ||||||
Stock-based compensation (in Shares) | 1,500 | ||||||||
Net income (loss) | (1,170) | (1,170) | (1,170) | ||||||
Net cash received from related party under counter guarantee agreement | 379 | 379 | 379 | ||||||
Foreign currency translation income (loss) | (1,352) | (1,352) | (1,352) | ||||||
Balance at Mar. 31, 2021 | $ 15 | $ 3,655 | $ 108,001 | $ 20,376 | $ 3,238 | $ (2,974) | $ 132,311 | $ 132,311 | |
Balance (in Shares) at Mar. 31, 2021 | 14,810,660 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (1,170) | $ (2,698) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 1,377 | 1,587 |
Gain on disposal of intangible assets | (268) | |
Loss from sale of property and equipment | 102 | 102 |
(Recovering from) Provision of bad debt allowance | (196) | 278 |
Provision for obsolete inventories | 3,583 | 4,204 |
Changes in fair value of trading securities | (262) | |
Changes in fair value of investment | 28 | |
Deferred income tax | 17 | 104 |
Stock-based compensation | 5 | 5 |
Changes in operating assets and liabilities | ||
Accounts receivable | 6,509 | 34,906 |
Inventories | 6,805 | 10,303 |
Value added tax receivable | 52 | 210 |
Other receivables and prepaid expenses | (367) | 364 |
Advances on inventory purchases | 2,544 | 2,855 |
Amounts due from related parties | (71) | 142 |
Accounts payable | (14,690) | (19,864) |
Accounts payable and other payables- related parties | (769) | (1,038) |
Other payables and accrued liabilities | (3,221) | (5,587) |
Value added and other taxes payable | (220) | (31) |
Income tax payable | (358) | (1,019) |
Net cash (used in) provided by operating activities | (302) | 24,555 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,378) | (78) |
Disposal of intangible assets | 353 | |
Purchases of trading securities | (1,238) | |
Proceeds from trading securities | 255 | |
Net cash (used in) provided by investing activities | (2,361) | 275 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank loans | 12,336 | 11,464 |
Repayment of bank loans | (6,168) | (14,884) |
Net collection (advance) of amounts due from related party (equity) | 148 | 748 |
Net cash provided by (used in) financing activities | 6,316 | (2,672) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (1,659) | 1,497 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,993 | 23,655 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 121,723 | 48,551 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 123,716 | 72,206 |
Reconciliation of cash, cash equivalents and restricted cash reported within their consolidated balance sheets: | ||
Cash and Cash Equivalents | 78,056 | 70,036 |
Restricted cash | 45,660 | 2,170 |
Total | 123,716 | 72,206 |
Cash paid during the period for: | ||
Interest | 492 | 341 |
Income taxes | $ 729 | $ 1,218 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATION Ever-Glory International Group, Inc. (the “Company”), together with its subsidiaries, is an apparel manufacturer, supplier and retailer in The People’s Republic of China (“China or “PRC”), with a wholesale segment and a retail segment. The Company’s wholesale business consists of recognized brands for department and specialty stores located in China, Europe, Japan and the United States. The Company’s retail business consists of flagship stores and store-in-stores located in China 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”), Xizang He Meida Trading Company Limited (“He Meida”), 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. 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 March 31, 2021 the condensed consolidated statements of income (loss) and comprehensive income (loss), condensed consolidated statements of equity, and condensed consolidated statements of cash flows for the three months ended March 31, 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 (“GAAP”) for interim financial information and the instructions to Rule 8-03 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. Wholesale revenues are generally higher in the third and fourth fiscal quarters, while retail revenues are generally higher in the first and fourth fiscal quarters. The results of operations for the three months ended March 31, 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 | 3 Months Ended |
Mar. 31, 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 | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 INVESTMENTS Trading securities Investments in equity securities of certain US 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 months periods are summarized as follows (In thousands of U.S. Dollars). March 31, March 31, (In thousands of Net gains recognized during the period on equity securities $ 262 $ - Less: Net gains recognized during the period on equity securities sold during the period 54 - Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 208 $ - 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. 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. So the investment was not impaired at March 31, 2021. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 INVENTORIES Inventories at March 31, 2021 and December 31, 2020 consisted of the following: March 31, December 31, (In thousands of Raw materials $ 1,029 $ 1,297 Work-in-progress 11,211 8,130 Finished goods 31,102 44,466 Total inventories $ 43,342 $ 53,893 |
Bank Loans
Bank Loans | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
BANK LOANS | NOTE 5 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 March 31, 2021 and December 31, 2020. March 31, December 31, Bank (In thousands of Shanghai Pudong Development Bank $ 47,943 $ 42,157 Industrial and Commercial Bank of China 21,308 21,462 Nanjing Bank 2,283 2,300 $ 71,534 $ 65,919 In August 2020, Ever-Glory Apparel entered into a line of credit agreement for approximately $3.0 million (RMB20.0 million) with the Shanghai Pudong Development Bank and guaranteed by Goldenway. As of March 31, 2021, Ever-Glory Apparel had borrowed $2.3 million (RMB 15.0 million) under this line of credit with annual interest 3.01% and due on September 2021. As of March 31, 2021, approximately $0.7 million was unused and available under this line of credit. From March 2020 to July 2020, Ever-Glory Apparel entered into a certificate of three-year time deposit of $29.0 million (RMB190.0 million) with the Shanghai Pudong Development Bank with annual interest rates ranging from 3.75% to 3.99%. From July to November 2020, Ever-Glory Apparel pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Ever-Glory Apparel had borrowed $29.0 million (RMB 190.0 million) under this line of certificate with an annual interest rate from 2.50% to 3.10% and due on between May 2021 and October 2021. In December 2020, Goldenway entered into a certificate of three-year time deposit of $16.7 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. From November 2020 to February 2021, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Goldenway had borrowed $16.7 million (RMB 110.0 million) under this line of certificate with annual interest rate of 2.90% and 3.4%, due between May 2021 and February 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 $6.1 million (RMB40.0 million). These loans are collateralized by the Company’s property and equipment. As of March 31, 2021, Goldenway had borrowed $6.1 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2021. In July 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $15.2 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 March 31, 2021, Ever-Glory Apparel had borrowed $15.2 million (RMB 100.0 million) under this line of credit with annual interest rates ranging from 3.95% to 4.35% and due between May 2021 to March 2022. 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 March 31, 2021, approximately $6.9 million was unused and available under this line of credit. In June 2020, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.0 million (RMB20.0 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of March 31, 2021, LA GO GO had borrowed $2.3 million (RMB 15.0 million) under this line of credit with annual interest 4.55% and due in September 2021. As of March 31, 2021, approximately $0.7 million was unused and available under this line of credit. In September 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.1 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of March 31, 2021, approximately $9.1 million was unused and available under this line of credit. In March 2021, Ever-Glory Apparel entered into a line of credit agreement for approximately $4.6 million (RMB30.0 million) with Bank of China and guaranteed by Jiangsu Ever-Glory. These loans are also collateralized by assets of Jiangsu Ever-Glory’s equity investee, Chuzhou Huarui, under a collateral agreement executed by Ever-Glory Apparel, Chuzhou Huarui and Bank of China. As of March 31, 2021, approximately $4.6 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 $0.5 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 6 INCOME TAX The Company’s operating subsidiaries are governed by the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (“the Income Tax Laws”). All PRC subsidiaries, except for He Meida, are subject to income tax at the 25% statutory rate. He Meida incorporated in Xizang (Tibet) Autonomous Region is subject to income tax at 15% statutory rate. The local government has implemented an income tax reduction from 15% to 9% valid through December 31, 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 for the three months ended March 31, 2021 and 2020 was taxable in the following jurisdictions: 2021 2020 (In thousands of PRC $ (438 ) $ (1,748 ) BVI - (720 ) Others (3 ) (3 ) $ (441 ) $ (2,471 ) The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three months ended March 31, 2021 and 2020: 2021 2020 PRC statutory rate 25.0 % 25.0 % Temporary difference between US GAAP and PRC tax accounting (190.7 ) (34.2 ) Effective income tax rate (165.7 )% (9.2 )% Income tax expense for the three months ended March 31, 2021 and 2020 is as follows: 2021 2020 (In thousands of Current $ 706 $ 345 Deferred 23 (118 ) Income tax expense $ 729 $ 227 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 $110.2 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 March 31, 2021. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 7 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 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. 2021 2020 (In thousands of The Company received from the customers $ 3 3 The Company paid to Wubijia (3 ) (3 ) The net income recorded as other income $ - $ - Included in other income for the years ended March 31, 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 $6,366 and $5,916 for the three months ended March 31, 2021 and 2020, respectively. Other expenses due to Related Parties Included in other expenses for the three months ended March 31, 2021 and 2020 are rent due to entities controlled by Mr. Kang under operating lease agreements as follows: 2021 2020 (In thousands of Chuzhou Huarui 55 50 Kunshan Enjin 23 22 Total $ 78 $ 72 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 totaled $0.2 million and $0.1 million during the three months ended March 31, 2021 and 2020, respectively. In addition, the Company sub-contracted certain manufacturing work to related companies totaled $4.7 million and $3.1 million for the three months ended March 31, 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 months ended March 31, 2021 and 2020 are as follows: 2021 2020 (In thousands of Ever-Glory Vietnam $ 3,083 $ 1,884 Chuzhou Huarui 491 513 Fengyang Huarui 319 158 Nanjing Ever-Kyowa 391 254 EsC’eLav 6 10 Jiangsu Ever-Glory 457 246 Total $ 4,747 $ 3,065 Accounts Payable – Related Parties The accounts payable to related parties at March 31, 2021 and December 31, 2020 are as follows: 2021 2020 (In thousands of Ever-Glory Vietnam $ 2,211 1,727 Fengyang Huarui 2 150 Nanjing Ever-Kyowa - 384 Chuzhou Huarui 215 1,234 Nanjing Knitting 228 257 Jiangsu Ever-Glory 173 12 Total $ 2,829 $ 3,764 Amounts Due From Related Parties-current assets The amounts due from related parties at March 31, 2021 and December 31, 2020 are as follows: 2021 2020 (In thousands of Jiangsu Ever-Glory $ 660 $ 567 Esc’elav 14 - Total $ 674 $ 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 months ended March 31, 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 cost for $1.8 million and $0.2 million during the three month period ended March 31, 2021 and 2020, respectively. Jiangsu Ever-Glory purchased raw materials on the Company’s behalf and sold to the Company at cost for $0.5 million and $0.7 million during the three months ended March 31, 2021 and 2020, respectively. Amounts Due From Related Party under Counter Guarantee Agreement In March 2012, in consideration of the guarantees and collateral provided by Jiangsu Ever-Glory and Nanjing Knitting, the Company agreed to provide Jiangsu Ever-Glory a counter guarantee in the form of cash of not less than 70% of the maximum aggregate lines of credit obtained by the Company. Jiangsu Ever-Glory is obligated to return the full amount of the counter-guarantee funds provided upon expiration or termination of the underlying lines of credit and is to pay annual interest at the rate of 6.0% of amounts provided. As of March 31, 2021 and December 31, 2020, Jiangsu Ever-Glory has provided guarantees for approximately $35.8 million (RMB 235 million) and $36 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 $31.3 million (RMB 205.5 million) and $31.5 million (RMB 205.5 million) as of March 31, 2021 and December 31, 2020 respectively. Mr. Kang has also provided a personal guarantee for $12.2 million (RMB 80.0 million) and $14.8 million (RMB 96.3 million) as of March 31, 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 three months ended March 31, 2021, an additional $0.2 million (RMB 1.2 million) was provided to and repayment of $0.3 million (RMB 2.2 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of March 31, 2021, the amount of the counter-guarantee was $2.9 million (RMB 19.1 million) (the difference represents currency exchange adjustment of $0.02 million), which was 8.11% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.07 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At March 31, 2021 and December 31, 2020, the amount classified as a reduction of equity was $3.0 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 months ended March 31, 2021 and 2020 was approximately $0.3 thousands and $0.02 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 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 three months ended March 31, 2021, the costs of the leases recognized in cost of revenues and general administrative expenses are $9.9 million and $0.1 million, respectively. Cash paid for the operating leases including in the operating cash flows was $10.0 million. In the three months ended March 31, 2020, the costs of the leases recognized in cost of revenues and general administrative expenses are $6.0 million and $0.2 million, respectively. Cash paid for the operating leases including in the operating cash flows was $6.2 million. The following table summarizes the maturity of operating lease liabilities: Year ending December 31, (In thousands of U.S. Dollars) 2021 $ 563 2022 751 2023 766 2024 432 2025 432 Thereafter 12,883 Total lease payment 15,827 Less: Interest 7,092 Total $ 8,735 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 ($10.75 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 ($10.44 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 ($1.24 million) in reliance on the processing contracts. The Company received RMB 71.4 million ($10.9 million) from Client A in April 2021 which settled the complaint amount. |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE 10 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-month period ended March 31, 2021, the Company had only one wholesale customer that represented approximately 12.6% of the Company’s revenues. For the three-month period ended March 31, 2020, the Company had four wholesale customers that represented approximately 20%, 10%, 10% and 10% 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 months ended March 31, 2021. The Company relied on one raw material supplier that represented 11% of the total raw material purchases during the three months ended March 31, 2020. For the retail business, the Company relied on two raw material suppliers that represented approximately 46% and 38% of raw material purchases during the three months ended March 31, 2021. The Company relied on two raw material suppliers that represented approximately 60% and 34% of raw material purchases during the three months ended March 31, 2020. For the wholesale business, during the three months ended March 31, 2021, the Company relied on one manufacturer that represented 14.4% of finished goods purchases and during the three months ended March 31, 2020, the Company relied on one manufacturer that represented 11% of finished goods purchases. The Company’s revenues for the three months ended March 31, 2021 and 2020 were earned in the following geographic areas: 2021 2020 (In thousands of Mainland China $ 7,490 $ 4,653 Hong Kong China 4,056 2,992 United Kingdom 1,053 837 Europe-Other 4,146 4,093 Japan 3,405 4,385 United States 3,069 5,328 Total wholesale business 23,219 22,288 Retail business 47,595 36,067 Total $ 70,814 $ 58,355 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | NOTE 11 SEGMENTS The Company reports financial and operating information in the following two segments: (a) Wholesale segment (b) Retail segment Wholesale Retail Total (In thousands of U.S. Dollars) As of and for the period ended March 31, 2021 Segment profit or loss: Net revenue from external customers $ 23,219 47,595 70,814 Loss from operations $ (705 ) (259 ) (964 ) Interest income $ 196 28 224 Interest expense $ 466 26 492 Depreciation and amortization $ 261 1,116 1,377 Loss before income tax expense (387 ) (54 ) (441 ) Income tax expense $ 325 404 729 Segment assets: Additions to property, plant and equipment 734 644 1,378 Inventory 13,913 29,429 43,342 Total assets 181,535 148,081 329,616 Wholesale Retail Total (In thousands of U.S. Dollars) As of and for the period ended March 31, 2020 Segment profit or loss: Net revenue from external customers $ 22,288 36,067 58,355 Loss from operations $ (674 ) (2,551 ) (3,225 ) Interest income $ 262 15 277 Interest expense $ 218 123 341 Depreciation and amortization $ 254 1,333 1,587 Loss before income tax expense 64 (2,535 ) (2,471 ) Income tax expense $ 186 41 227 Segment assets: Additions to property, plant and equipment 419 (341 ) 78 Inventory 13,607 38,545 52,152 Total assets 82,846 171,517 254,363 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 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 March 31, 2021 have been incorporated into these consolidated financial statements and there are no significant subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.” |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 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) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Schedule of net gains and losses | March 31, March 31, (In thousands of Net gains recognized during the period on equity securities $ 262 $ - Less: Net gains recognized during the period on equity securities sold during the period 54 - Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 208 $ - |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, (In thousands of Raw materials $ 1,029 $ 1,297 Work-in-progress 11,211 8,130 Finished goods 31,102 44,466 Total inventories $ 43,342 $ 53,893 |
Bank Loans (Tables)
Bank Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | March 31, December 31, Bank (In thousands of Shanghai Pudong Development Bank $ 47,943 $ 42,157 Industrial and Commercial Bank of China 21,308 21,462 Nanjing Bank 2,283 2,300 $ 71,534 $ 65,919 |
Income Tax (Tables)
Income Tax (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of pre-tax income in jurisdictions | 2021 2020 (In thousands of PRC $ (438 ) $ (1,748 ) BVI - (720 ) Others (3 ) (3 ) $ (441 ) $ (2,471 ) |
Schedule of income tax expense | 2021 2020 PRC statutory rate 25.0 % 25.0 % Temporary difference between US GAAP and PRC tax accounting (190.7 ) (34.2 ) Effective income tax rate (165.7 )% (9.2 )% |
Schedule of income tax expense | 2021 2020 (In thousands of Current $ 706 $ 345 Deferred 23 (118 ) Income tax expense $ 729 $ 227 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of home goods on consignment | 2021 2020 (In thousands of The Company received from the customers $ 3 3 The Company paid to Wubijia (3 ) (3 ) The net income recorded as other income $ - $ - |
Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements | 2021 2020 (In thousands of Chuzhou Huarui 55 50 Kunshan Enjin 23 22 Total $ 78 $ 72 |
Schedule of sub-contracts with related parties | 2021 2020 (In thousands of Ever-Glory Vietnam $ 3,083 $ 1,884 Chuzhou Huarui 491 513 Fengyang Huarui 319 158 Nanjing Ever-Kyowa 391 254 EsC’eLav 6 10 Jiangsu Ever-Glory 457 246 Total $ 4,747 $ 3,065 |
Schedule of accounts payable to related parties | 2021 2020 (In thousands of Ever-Glory Vietnam $ 2,211 1,727 Fengyang Huarui 2 150 Nanjing Ever-Kyowa - 384 Chuzhou Huarui 215 1,234 Nanjing Knitting 228 257 Jiangsu Ever-Glory 173 12 Total $ 2,829 $ 3,764 |
Schedule of amounts due from related party | 2021 2020 (In thousands of Jiangsu Ever-Glory $ 660 $ 567 Esc’elav 14 - Total $ 674 $ 567 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of maturity of operating lease liabilities | Year ending December 31, (In thousands of U.S. Dollars) 2021 $ 563 2022 751 2023 766 2024 432 2025 432 Thereafter 12,883 Total lease payment 15,827 Less: Interest 7,092 Total $ 8,735 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of Company's revenues as per geographic areas | 2021 2020 (In thousands of Mainland China $ 7,490 $ 4,653 Hong Kong China 4,056 2,992 United Kingdom 1,053 837 Europe-Other 4,146 4,093 Japan 3,405 4,385 United States 3,069 5,328 Total wholesale business 23,219 22,288 Retail business 47,595 36,067 Total $ 70,814 $ 58,355 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of financial and operating information | Wholesale Retail Total (In thousands of U.S. Dollars) As of and for the period ended March 31, 2021 Segment profit or loss: Net revenue from external customers $ 23,219 47,595 70,814 Loss from operations $ (705 ) (259 ) (964 ) Interest income $ 196 28 224 Interest expense $ 466 26 492 Depreciation and amortization $ 261 1,116 1,377 Loss before income tax expense (387 ) (54 ) (441 ) Income tax expense $ 325 404 729 Segment assets: Additions to property, plant and equipment 734 644 1,378 Inventory 13,913 29,429 43,342 Total assets 181,535 148,081 329,616 Wholesale Retail Total (In thousands of U.S. Dollars) As of and for the period ended March 31, 2020 Segment profit or loss: Net revenue from external customers $ 22,288 36,067 58,355 Loss from operations $ (674 ) (2,551 ) (3,225 ) Interest income $ 262 15 277 Interest expense $ 218 123 341 Depreciation and amortization $ 254 1,333 1,587 Loss before income tax expense 64 (2,535 ) (2,471 ) Income tax expense $ 186 41 227 Segment assets: Additions to property, plant and equipment 419 (341 ) 78 Inventory 13,607 38,545 52,152 Total assets 82,846 171,517 254,363 |
Investments (Details)
Investments (Details) - 1 months ended Aug. 31, 2020 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
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. |
Investments (Details) - Schedul
Investments (Details) - Schedule of net gains and losses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of net gains and losses [Abstract] | ||
Net gains recognized during the period on equity securities | $ 262 | |
Less: Net gains recognized during the period on equity securities sold during the period | 54 | |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | $ 208 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 1,029 | $ 1,297 |
Work-in-progress | 11,211 | 8,130 |
Finished goods | 31,102 | 44,466 |
Total inventories | $ 43,342 | $ 53,893 |
Bank Loans (Details)
Bank Loans (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 5 Months Ended | |||||||||||||||||
Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Feb. 28, 2021USD ($) | Nov. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | Feb. 28, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Nov. 30, 2020CNY (¥) | Aug. 31, 2020USD ($) | Aug. 31, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Apr. 30, 2020USD ($) | Apr. 30, 2020CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Jul. 31, 2019USD ($) | Jul. 31, 2019CNY (¥) | |
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Interest expense on bank loans | $ 0.5 | $ 0.3 | |||||||||||||||||||
Goldenway [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | $ 3 | ||||||||||||||||||||
Line of credit annual interest rates | 3.85% | ||||||||||||||||||||
Time deposit | $ 16.7 | $ 16.7 | ¥ 110 | ¥ 110 | |||||||||||||||||
Due date of revolving line of credit agreement | From November 2020 to February 2021, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Goldenway had borrowed $16.7 million (RMB 110.0 million) under this line of certificate with annual interest rate of 2.90% and 3.4%, due between May 2021 and February 2022. | ||||||||||||||||||||
Goldenway [Member] | Industrial and Commercial Bank Of China [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Borrowed loans amount | $ 6.1 | ¥ 40 | $ 6.1 | ¥ 40 | |||||||||||||||||
Line of credit annual interest rates | 4.57% | ||||||||||||||||||||
Due date of revolving line of credit agreement | As of March 31, 2021, Goldenway had borrowed $6.1 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2021. | ||||||||||||||||||||
Goldenway [Member] | Nanjing Knitting [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | $ 6.9 | ¥ 45 | |||||||||||||||||||
Unused line of credit | $ 6.9 | ||||||||||||||||||||
Goldenway [Member] | Minimum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 2.90% | ||||||||||||||||||||
Goldenway [Member] | Maximum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 3.40% | ||||||||||||||||||||
Ever Glory Apparel [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | 4.6 | 30 | |||||||||||||||||||
Unused line of credit | 4.6 | ||||||||||||||||||||
Ever Glory Apparel [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | ¥ | ¥ 20 | ||||||||||||||||||||
Borrowed loans amount | $ 2.3 | 15 | |||||||||||||||||||
Line of credit annual interest rates | 3.01% | ||||||||||||||||||||
Unused line of credit | $ 0.7 | ||||||||||||||||||||
Time deposit | $ 29 | $ 29 | ¥ 190 | ¥ 190 | |||||||||||||||||
Ever Glory Apparel [Member] | Industrial and Commercial Bank Of China [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | $ 15.2 | ¥ 100 | |||||||||||||||||||
Ever Glory Apparel [Member] | Nanjing Knitting [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | $ 9.1 | ¥ 60 | |||||||||||||||||||
Borrowed loans amount | 15.2 | 100 | |||||||||||||||||||
Unused line of credit | $ 9.1 | ||||||||||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 2.50% | 3.75% | |||||||||||||||||||
Ever Glory Apparel [Member] | Minimum [Member] | Nanjing Knitting [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 3.95% | ||||||||||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | Shanghai Pudong Development Bank [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 3.10% | 3.99% | |||||||||||||||||||
Ever Glory Apparel [Member] | Maximum [Member] | Nanjing Knitting [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit annual interest rates | 4.35% | ||||||||||||||||||||
LA GO GO [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Unused line of credit | $ 0.7 | ||||||||||||||||||||
LA GO GO [Member] | Nanjing Knitting [Member] | |||||||||||||||||||||
Bank Loans (Details) [Line Items] | |||||||||||||||||||||
Line of credit agreement amount | $ 3 | ¥ 20 | |||||||||||||||||||
Borrowed loans amount | $ 2.3 | ¥ 15 | |||||||||||||||||||
Line of credit annual interest rates | 4.55% |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Bank loans | $ 71,534 | $ 65,919 |
Shanghai Pudong Development Bank [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | 47,943 | 42,157 |
Industrial and Commercial Bank of China [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | 21,308 | 21,462 |
Nanjing Bank [Member] | ||
Short-term Debt [Line Items] | ||
Bank loans | $ 2,283 | $ 2,300 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax (Details) [Line Items] | ||
PRC statutory rate | 25.00% | 25.00% |
Assets and liabilities translation rate, description | three | |
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% | |
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) | $ 110.2 | |
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. | |
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) - Summary
Income Tax (Details) - Summary of pre-tax income in jurisdictions - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax (Details) - Summary of pre-tax income in jurisdictions [Line Items] | ||
Pre-tax income | $ (441) | $ (2,471) |
PRC [Member] | ||
Income Tax (Details) - Summary of pre-tax income in jurisdictions [Line Items] | ||
Pre-tax income | (438) | (1,748) |
BVI [Member] | ||
Income Tax (Details) - Summary of pre-tax income in jurisdictions [Line Items] | ||
Pre-tax income | (720) | |
Others [Member] | ||
Income Tax (Details) - Summary of pre-tax income in jurisdictions [Line Items] | ||
Pre-tax income | $ (3) | $ (3) |
Income Tax (Details) - Summar_2
Income Tax (Details) - Summary of reconciliation of PRC statutory rates to the Company's effective tax rate | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of reconciliation of PRC statutory rates to the Company's effective tax rate [Abstract] | ||
PRC statutory rate | 25.00% | 25.00% |
Temporary difference between US GAAP and PRC tax accounting | (190.70%) | (34.20%) |
Effective income tax rate | (165.70%) | (9.20%) |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of income tax expense - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of income tax expense [Abstract] | ||
Current | $ 706 | $ 345 |
Deferred | 23 | (118) |
Income tax expense | $ 729 | $ 227 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Two Independent Directors [Member] | Feb. 09, 2021$ / sharesshares | Jan. 15, 2020$ / sharesshares |
Stockholders' Equity (Details) [Line Items] | ||
Common stock shares issued to independent directors | shares | 1,500 | 3,062 |
Number of directors | 2 | 2 |
Average market price of the common stock for the five days before the grant date | $ / shares | $ 3.34 | $ 1.41 |
Number of days used to calculation average market price of common stock, description | five days before the grant date. | five days before the grant date. |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2012 | Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | |
Related Party Transactions (Details) [Line Items] | |||||||
Acquired interest | 6.00% | ||||||
Company sold raw materials | $ 500,000 | $ 700,000 | |||||
Outstanding due from Jiangsu Ever-Glory | $ 2,974,000 | $ 3,353,000 | |||||
Amounts due from related party under counter guarantee agreement, description | an additional $0.2 million (RMB 1.2 million) was provided to and repayment of $0.3 million (RMB 2.2 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of March 31, 2021, the amount of the counter-guarantee was $2.9 million (RMB 19.1 million) (the difference represents currency exchange adjustment of $0.02 million), which was 8.11% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.07 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At March 31, 2021 and December 31, 2020, the amount classified as a reduction of equity was $3.0 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 months ended March 31, 2021 and 2020 was approximately $0.3 thousands and $0.02 million, respectively. | an additional $0.2 million (RMB 1.2 million) was provided to and repayment of $0.3 million (RMB 2.2 million) was received from Jiangsu Ever-Glory under the counter-guarantee. As of March 31, 2021, the amount of the counter-guarantee was $2.9 million (RMB 19.1 million) (the difference represents currency exchange adjustment of $0.02 million), which was 8.11% of the aggregate amount of lines of credit. This amount plus accrued interest of $0.07 million have been classified as a reduction of equity, consistent with the guidance of SEC Staff Accounting Bulletins 4E and 4G. At March 31, 2021 and December 31, 2020, the amount classified as a reduction of equity was $3.0 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 months ended March 31, 2021 and 2020 was approximately $0.3 thousands and $0.02 million, respectively. | |||||
Nanjing Knitting [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Purchase of raw material | $ 200,000 | 100,000 | |||||
Sub-contracts with related parties | $ 4,700,000 | 3,100,000 | |||||
Related Party [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Outstanding due from Jiangsu Ever-Glory | 3,100,000 | ¥ 20 | |||||
Mr. Kang [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Acquired interest | 83.00% | 83.00% | |||||
Rental income | $ 6,366 | 5,916 | |||||
Guarantee on lines of credit | 12,200,000 | ¥ 80 | 14,800,000 | ¥ 96.3 | |||
Jiangsu Ever-Glory[Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Acquired interest | 70.00% | ||||||
Purchase of raw material | 1,800,000 | $ 200,000 | |||||
Guarantee on lines of credit | 35,800,000 | 235 | 36,000,000 | 235 | |||
Lines of credit | $ 31,300,000 | ¥ 205.5 | $ 31,500,000 | ¥ 205.5 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of home goods on consignment - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of home goods on consignment [Abstract] | ||
The Company received from the customers | $ 3 | $ 3 |
The Company paid to Wubijia | (3) | (3) |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements [Line Items] | ||
Total | $ 78 | $ 72 |
Chuzhou Huarui [Member] | ||
Related Party Transactions (Details) - Schedule of rent due to entities controlled by Mr. Kang under operating lease agreements [Line Items] | ||
Total | 55 | 50 |
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 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of sub-contracts with related parties - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | $ 4,747 | $ 3,065 |
Ever-Glory Vietnam [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | 3,083 | 1,884 |
Chuzhou Huarui [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | 491 | 513 |
Fengyang Huarui [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | 319 | 158 |
Nanjing Ever-Kyowa [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | 391 | 254 |
EsC’eLav [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | 6 | 10 |
Jiangsu Ever-Glory [Member] | ||
Related Party Transactions (Details) - Schedule of sub-contracts with related parties [Line Items] | ||
Total | $ 457 | $ 246 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of accounts payable to related parties - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Ever-Glory Vietnam []Member | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 2,211 | $ 1,727 |
Fengyang Huarui [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 2 | 150 |
Nanjing Ever-Kyowa [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 384 | |
Chuzhou Huarui [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 215 | 1,234 |
Nanjing Knitting [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 228 | 257 |
Jiangsu Ever-Glory [Member] | Accounts Payable [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | 173 | 12 |
Total [Member] | ||
Related Party Transactions (Details) - Schedule of accounts payable to related parties [Line Items] | ||
Total | $ 2,829 | $ 3,764 |
Related Party Transactions (D_6
Related Party Transactions (Details) - Schedule of amounts due from related party - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Jiangsu Ever-Glory [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | $ 660 | $ 567 |
Esc’elav [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | 14 | |
Total [Member] | ||
Related Party Transactions (Details) - Schedule of amounts due from related party [Line Items] | ||
Total | $ 674 | $ 567 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2021CNY (¥) | |
Commitments and Contingencies (Details) [Line Items] | ||||
Remaining lease term | 30 years | 30 years | ||
Weighted average discount rate | 4.35% | 4.35% | ||
Revenues | $ 70,814 | $ 58,355 | ||
General administrative expenses | 7,851 | $ 5,785 | ||
Cost of revenue | 6,000 | |||
General administrative expenses | 200 | |||
Cost of raw materials | 6,200 | |||
Operating Lease Commitment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Revenues | 9,900 | |||
General administrative expenses | 100 | |||
Cash paid for operating leases | 10,000 | |||
Lawsuits against Client A [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Cost of raw materials | 1,240 | ¥ 8,090 | ||
Unpaid goods | 10,750 | ¥ 70,150 | ||
Interim measures amount | 10,440 | 68,120 | ||
Delivered goods cost | 9,510 | 62,060 | ||
Amount received for settled complaint | $ 10,900 | ¥ 71,400 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Summary of maturity of operating lease liabilities $ in Thousands | Mar. 31, 2021USD ($) |
Summary of maturity of operating lease liabilities [Abstract] | |
2021 | $ 563 |
2022 | 751 |
2023 | 766 |
2024 | 432 |
2025 | 432 |
Thereafter | 12,883 |
Total lease payment | 15,827 |
Less: Interest | 7,092 |
Total | $ 8,735 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Risks and Uncertainties (Details) [Line Items] | ||
Number of customer | 1 | 4 |
Number of suppliers | 2 | 2 |
Number of manufacturers | 1 | 1 |
Wholesale business [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Number of suppliers | 1 | |
Wholesale business [Member] | Supplier [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | 11.00% |
Manufacturer One [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 14.40% | 11.00% |
Customer One [Member] | Revenue Benchmark [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 12.60% | 20.00% |
Customer Two [Member] | Revenue Benchmark [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer Three [Member] | Revenue Benchmark [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer Four [Member] | Revenue Benchmark [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Supplier one [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 46.00% | 60.00% |
Supplier two [Member] | ||
Risks and Uncertainties (Details) [Line Items] | ||
Concentration risk, percentage | 38.00% | 34.00% |
Risks and Uncertainties (Deta_2
Risks and Uncertainties (Details) - Schedule of Company's revenues as per geographic areas - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mainland China [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 7,490 | $ 4,653 |
Hong Kong China [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,056 | 2,992 |
United Kingdom [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,053 | 837 |
Europe-Other [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,146 | 4,093 |
Japan [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,405 | 4,385 |
United States [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,069 | 5,328 |
Total wholesale business [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 23,219 | 22,288 |
Retail business [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 47,595 | 36,067 |
Total [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 70,814 | $ 58,355 |
Segments (Details)
Segments (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segments (Details) - Summary of
Segments (Details) - Summary of financial and operating information - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Wholesale Segment [Member] | ||
Segment profit or loss: | ||
Net revenue from external customers | $ 23,219 | $ 22,288 |
Loss from operations | (705) | (674) |
Interest income | 196 | 262 |
Interest expense | 466 | 218 |
Depreciation and amortization | 261 | 254 |
Loss before income tax expense | (387) | 64 |
Income tax expense | 325 | 186 |
Segment assets: | ||
Additions to property, plant and equipment | 734 | 419 |
Inventory | 13,913 | 13,607 |
Total assets | 181,535 | 82,846 |
Retail Segment [Member] | ||
Segment profit or loss: | ||
Net revenue from external customers | 47,595 | 36,067 |
Loss from operations | (259) | (2,551) |
Interest income | 28 | 15 |
Interest expense | 26 | 123 |
Depreciation and amortization | 1,116 | 1,333 |
Loss before income tax expense | (54) | (2,535) |
Income tax expense | 404 | 41 |
Segment assets: | ||
Additions to property, plant and equipment | 644 | (341) |
Inventory | 29,429 | 38,545 |
Total assets | 148,081 | 171,517 |
Total [Member] | ||
Segment profit or loss: | ||
Net revenue from external customers | 70,814 | 58,355 |
Loss from operations | (964) | (3,225) |
Interest income | 224 | 277 |
Interest expense | 492 | 341 |
Depreciation and amortization | 1,377 | 1,587 |
Loss before income tax expense | (441) | (2,471) |
Income tax expense | 729 | 227 |
Segment assets: | ||
Additions to property, plant and equipment | 1,378 | 78 |
Inventory | 43,342 | 52,152 |
Total assets | $ 329,616 | $ 254,363 |