0001213900-12-004926.txt : 20120827 0001213900-12-004926.hdr.sgml : 20120827 20120827101702 ACCESSION NUMBER: 0001213900-12-004926 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120630 FILED AS OF DATE: 20120827 DATE AS OF CHANGE: 20120827 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Ever-Glory International Group, Inc. CENTRAL INDEX KEY: 0000943184 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300] IRS NUMBER: 650548697 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-34124 FILM NUMBER: 121055861 BUSINESS ADDRESS: STREET 1: 100 N. BARRANCA AVE. STREET 2: #810 CITY: WEST COVINA STATE: CA ZIP: 91791 BUSINESS PHONE: 626-839-9116 MAIL ADDRESS: STREET 1: 100 N. BARRANCA AVE. STREET 2: #810 CITY: WEST COVINA STATE: CA ZIP: 91791 FORMER COMPANY: FORMER CONFORMED NAME: ever-glory international group, inc. DATE OF NAME CHANGE: 20051121 FORMER COMPANY: FORMER CONFORMED NAME: ANDEAN DEVELOPMENT CORP DATE OF NAME CHANGE: 19950329 10-Q/A 1 f10q0612a2_everglory.htm AMENDED QUARTERLY REPORT f10q0612a2_everglory.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q/A
Amendment No. 1
 
x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2012
 
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
 
For the transition period from ____________ to ____________
 
Commission file number:  0-28806
 
Ever-Glory International Group Inc.
(Exact name of registrant as specified in its charter)
 
Florida
 
65-0420146 
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
Ever-Glory Commercial Center,
509 Chengxin Road, Jiangning Development Zone,
Nanjing, Jiangsu Province,
People’s Republic of China
(Address of principal executive offices)
 
(8625) 5209-6875
 (Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x    No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes   o  No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  o
 
Large accelerated filer
o 
Accelerated filer
o 
Non-accelerated filer
o 
Smaller reporting company
x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o    No  x
 
As of August 7, 2012, 14,765,942  shares of the Company’s common stock, $0.001 par value, were issued and outstanding.
 
 

 
 
Explanatory Note

The purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q of Ever-Glory International Group, Inc. for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
 
Item 6.
Exhibits.
   
31.1
Certification of Chief Executive Officer pursuant to Section 302 of the SOX of 2002
   
31.2
Certification of Chief Financial Officer pursuant to Section 302 of the SOX of 2002
   
32.1
Certificate of Chief Executive Officer pursuant to 18 U.S.C.ss.1350
   
32.2
Certificate of Chief Financial Officer pursuant to 18 U.S.C.ss.1350
   
101.INS*
XBRL Instance Document
   
101.SCH*
XBRL Taxonomy Extension Schema Document
   
101.CAL*
XBRL Taxonomy Extension Calculation Linkbase Document
   
101.DEF*
XBRL Taxonomy Extension Definition Linkbase Document
   
101.LAB*
XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE*
XBRL Taxonomy Extension Presentation Linkbase Document
 
* XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these section.

 
 

 
SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
August 27, 2012
EVER-GLORY INTERNATIONAL GROUP, INC.
   
 
By:
/s/ Edward Yihua Kang
   
Edward Yihua Kang
   
Chief Executive Officer
   
(Principal Executive Officer)
     
 
By:
/s/ Jiansong Wang
   
Jiansong Wang
   
Chief Financial Officer
   
(Principal Financial and Accounting Officer)

EX-31.1 2 f10q0612a2ex31i_everglory.htm CERTIFICATION f10q0612a2ex31i_everglory.htm
EXHIBIT 31.1
 

 
I, Edward Yihua Kang, certify that:
 
1.  
I have reviewed this quarterly report on Form 10-Q for the period ending June 30, 2012 of Ever-Glory International Group, Inc.;
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a.  
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.  
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.  
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.  
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
5.  
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
a.  
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
b.  
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
     
Date:           August 27, 2012  
/s/ Edward Yihua Kang
 
 
Edward Yihua Kang
 
 
Chief Executive Officer
 
 
(Principal Executive Officer)
 
EX-31.2 3 f10q0612a2ex31ii_everglory.htm CERTIFICATION f10q0612a2ex31ii_everglory.htm
EXHIBIT 31.2

I, Jiansong Wang, certify that:
 
1.  
I have reviewed this quarterly report on Form 10-Q for the period ending June 30, 2012 of Ever-Glory International Group, Inc.;
 
2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.  
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a.  
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.  
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.  
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.  
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
5.  
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
a.  
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
b.  
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
 
     
Date:           August 27, 2012
/s/ Jiansong Wang    
 
 
Jiansong Wang
 
 
Chief Finance Officer
 
 
(Principal Financial Officer)
 
 
EX-32.1 4 f10q0612a2ex32i_everglory.htm CERTIFICATION f10q0612a2ex32i_everglory.htm
EXHIBIT 32.1

Certification Pursuant To
Section 906 of Sarbanes-Oxley Act of 2002

I, Edward Yihua Kang, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

 
1.
The Quarterly report on Form 10-Q of the Company for the quarter ended June 30, 2012 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and


 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 
Date:           August 27, 2012  
/s/ Edward Yihua Kang
 
 
Edward Yihua Kang
 
 
Chief Executive Officer
 
 
(Principal Executive Officer)
 


The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.
EX-32.2 5 f10q0612a2ex32ii_everglory.htm CERTIFICATION f10q0612a2ex32ii_everglory.htm
EXHIBIT 32.2

Certification Pursuant To
Section 906 of Sarbanes-Oxley Act of 2002

I, Jiansong Wang, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

 
1.
The Quarterly report on Form 10-Q of the Company for the quarter ended June 30, 2012 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and


 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 

Date:           August 27, 2012
/s/ Jiansong Wang    
 
 
Jiansong Wang
 
 
Chief Finance Officer
 
 
(Principal Financial Officer)
 

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.
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margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">As of June 30, 2012 and December 31, 2011, the Company has a derivative liability subject to recurring fair value measurement ( Level 3) with the change in fair value recognized in earnings (Note 5).</font></div> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-weight: bold; text-decoration: underline;"></font>&#160;</div> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-weight: bold; text-decoration: underline;">Reclassification</font></div> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">&#160;</font></div> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">Certain amounts reported in the June 30, 2011 financial statements have been reclassified to confirm to the June 30, 2012 financial statements presentation.</div> -13666 459213 0.049 0.044 0.0527 Five days before the grant date. Five days before the grant date. 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Concentrations and Risks (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Dec. 31, 2009
Concentrations and Risks (Textual)            
Allowance for doubtful accounts              
Number of wholesale customer 2 1 2 2    
Percentage of revenues hold by wholesale customer one 11.00% 26.00% 13.00% 23.00%    
Percentage of revenues hold by wholesale customer two 11.00%   12.00% 17.00%    
Number of major suppliers     0 0    
Percentage of purchases require for supplier to be major supplier     More than 10 More than 10    
Number of raw materials suppliers 2 1 1 1    
Percentage of raw materials supplied by suppliers one 11.00% 22.00% 14.00% 16.00%    
Percentage of raw materials supplied by suppliers two 14.00%          
Number of manufacturers 2 2 2 1    
Percentgae of purchased finished goods represented by manufacturer one 19.00% 15.00% 17.00% 10.00%    
Percentgae of purchased finished goods represented by manufacturer two 16.00% 11.00% 13.00%      
Number of major supplier for retail business 0 1 0 0    
Percentgae of purchased finished goods represented by major supplier   10.00%        
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Related Party Transactions (Details 1) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Summary of transation with related parties        
Sub-contracts with related parties $ 2,597,793 $ 2,458,327 $ 5,423,363 $ 3,998,745
Nanjing Knitting [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties 119,159 11,855 753,768 35,565
Nanjing Ever Kyowa [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties 246,417 297,973 411,634 535,613
Ever Glory Vietnam [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties 625,667 1,494,180 1,455,136 2,392,433
Ever Glory Cambodia [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties 1,594,778 653,436 2,781,291 1,023,255
Esc'Elav [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties 6,616 883 12,564 11,879
Jiangsu Ever Glory [Member]
       
Summary of transation with related parties        
Sub-contracts with related parties $ 5,156    $ 8,970   
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Bank Loans (Details Textual)
3 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Aug. 02, 2010
Nanjing Bank [Member]
Goldenway [Member]
USD ($)
Aug. 02, 2010
Nanjing Bank [Member]
Goldenway [Member]
CNY
Jun. 30, 2012
Nanjing Bank [Member]
Ever-Glory Apparel [Member]
USD ($)
Mar. 11, 2010
Nanjing Bank [Member]
Ever-Glory Apparel [Member]
USD ($)
Mar. 11, 2010
Nanjing Bank [Member]
Ever-Glory Apparel [Member]
CNY
Jun. 30, 2012
Nanjing Bank [Member]
Ever-Glory Apparel [Member]
Minimum [Member]
Jun. 30, 2012
Nanjing Bank [Member]
Ever-Glory Apparel [Member]
Maximum [Member]
Jun. 30, 2012
Nanjing Bank [Member]
La Go Go [Member]
USD ($)
Jun. 30, 2012
Nanjing Bank [Member]
La Go Go [Member]
CNY
Jun. 30, 2012
Shanghai Pudong Development Bank [Member]
Goldenway [Member]
USD ($)
Jun. 30, 2012
Shanghai Pudong Development Bank [Member]
Goldenway [Member]
CNY
Jan. 04, 2011
Shanghai Pudong Development Bank [Member]
Goldenway [Member]
USD ($)
Jan. 04, 2011
Shanghai Pudong Development Bank [Member]
Goldenway [Member]
CNY
Jun. 30, 2012
Bank Of Communications [Member]
Ever-Glory Apparel [Member]
USD ($)
Jun. 30, 2012
Bank Of Communications [Member]
La Go Go [Member]
USD ($)
Jun. 30, 2012
Bank Of Communications [Member]
La Go Go [Member]
CNY
Jul. 31, 2012
Bank Of China [Member]
Ever-Glory Apparel [Member]
USD ($)
Jun. 30, 2012
Bank Of China [Member]
Ever-Glory Apparel [Member]
USD ($)
Jun. 30, 2012
Bank Of China [Member]
Ever-Glory Apparel [Member]
Minimum [Member]
Jun. 30, 2012
Bank Of China [Member]
Ever-Glory Apparel [Member]
Maximum [Member]
Jul. 31, 2012
Hong Kong and Shanghai Bank [Member]
Ever-Glory Apparel [Member]
USD ($)
Jun. 30, 2012
Hong Kong and Shanghai Bank [Member]
Ever-Glory Apparel [Member]
USD ($)
Jun. 30, 2012
Hong Kong and Shanghai Bank [Member]
Ever-Glory Apparel [Member]
Minimum [Member]
Jun. 30, 2012
Hong Kong and Shanghai Bank [Member]
Ever-Glory Apparel [Member]
Maximum [Member]
Jul. 29, 2011
Hong Kong and Shanghai Bank [Member]
Ever-Glory Apparel and Perfect Dream [Member]
USD ($)
Bank Loans (Textual)                                                          
Term of revolving line of credit agreement         2 years 2 years   1 year 1 year             1 year 1 year                        
Revolving line of credit agreement, maximum borrowing capacity         $ 7,910,000 50,000,000   $ 7,910,000 50,000,000             $ 6,330,000 40,000,000                       $ 7,000,000
Revolving line of credit agreement, amount borrowed             2,370,000         1,580,000 10,000,000 6,330,000 40,000,000     5,060,000 790,000 5,000,000   1,900,000       1,220,000      
The effective interest rate during the period                   6.73% 6.89% 6.29% 6.29% 7.55% 7.55%     7.08% 6.37% 6.37%     5.90% 6.10%     5.85% 7.02%  
Revolving line of credit agreement, additional borrowings             1,640,000                     1,580,000                      
Line of credit interest rate on additional borrowing                   4.40% 4.90%             5.27%                      
Revolving line of credit agreement, collateral amount             2,200,000                     1,980,000       2,600,000       1,630,000      
Revolving line of credit agreement, unused capacity             3,900,000                                     5,780,000      
Revolving line of credit agreement, repaid amount                                   230,000     980,000       270,000        
Additional Bank Loans (Textual)                                                          
Interest Paid $ 458,703 $ 258,924 $ 1,004,744 $ 520,195                                                  
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Related Party Transactions (Details Textual)
3 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2011
CNY
Dec. 31, 2009
USD ($)
Related Party Transactions (Textual)            
Transaction cost related to sale and repurchase of raw material        $ 1,100,000 7,500,000  
Purchase of raw materials from Related Party 79,413 948,146 714,022 1,059,091    
Sub-contracts with related parties 2,597,793 2,458,327 5,423,363 3,998,745    
Service fee in percentage of export sales manufactured overseas     3.00%      
Service fee in percentage of export sales manufactured in China     1.00%      
Related party, account settlement period, minimum     60 days      
Related party, account settlement period, maximum     90 days      
Interest charged on net amounts due     0.50%      
Interest income, Related Party 290,559 120,379 563,295 139,495    
Percentage of receivables settled during period     20.80%      
Loan from related party           $ 1,000,000
Loan from Related Party, Interest rate     6.00%      
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Bank Loans
6 Months Ended
Jun. 30, 2012
Loans Payable [Abstract]  
Bank Loans
 
NOTE 4   BANK LOANS
 
Bank loans represent amounts due to various banks and are generally due on demand or within one year. These loans can be renewed with the banks. Bank loans consisted of the following at June 30, 2012 and December 31, 2011:
 
Bank
 
June 30,
2012
   
December 31,
2011
 
Nanjing Bank
 
$
5,599,399
   
$
11,731,223
 
Shanghai Pudong Development Bank
   
6,328,000
     
8,966,382
 
Industrial and Commercial Bank of China
   
-
     
5,294,270
 
Bank of Communications
   
7,432,103
     
2,660,562
 
The Hong Kong and Shanghai Bank
 
1,215,637 
     
532,944
 
Bank of China
   
1,898,400
     
-
 
   
$
22,473,539
   
$
29,185,381
 
 
On August 2, 2010, Goldenway entered into a two-year revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.91 million (RMB50 million). These loans are guaranteed by Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment. As of June 30, 2012, no amounts were outstanding  under this agreement.
 
On March 11, 2010, Ever-Glory Apparel entered into an one-year line of credit agreement for approximately $7.91 million (RMB50 million) with Nanjing Bank. The agreement has been extended until April 6, 2013. As of June 30, 2012, Ever-Glory Apparel had borrowed $2.37 million from Nanjing Bank with an annual interest rate from 6.73% to 6.89% due on various dates from November 2012 to May 2013. The loan is guaranteed by Jiangsu Ever-Glory and the Company's chairman and CEO, Mr. Kang. In addition, Ever-Glory Apparel had borrowed $1.64 million from Nanjing Bank with an annual interest rate from 4.4% to 4.9% due on various dates from August 2012 to September 2012, and collateralized by approximately $2.2 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. At June 30, 2012, approximately $3.9 million was unused and available.
 
As of June 30, 2012, LA GO GO had borrowed $1.58 million (RMB10.0 million) from Nanjing Bank with an annual interest rate of 6.29% and due on various dates from April 2013 to May 2013. This loan is guaranteed by Jiangsu Ever-Glory and Mr. Kang.
 
On January 4, 2011, Goldenway entered into a new one-year line of credit agreement for approximately $6.33 million (RMB40 million) with Shanghai Pudong Development Bank. As of June 30, 2012, Goldenway had borrowed the maximum amount available under the line of $6.33 million (RMB40 million), with an annual interest rate of 7.55%. These loans are collateralized by certain properties and land use rights of Goldenway, and are due in November 2012.
 
As of June 30, 2012, Ever-Glory Apparel had borrowed $5.06 million from the Bank of Communications with an annual interest rate of 7.08%, and due in February 2013. The loan is guaranteed by Jiangsu Ever-Glory and the Company's chairman and CEO, Mr. Kang. In addition, Ever-Glory Apparel had borrowed $1.58 million from the Bank of Communications with annual interest rate  of 5.27%, due on various dates from July 2012 to September 2012, guaranteed by Jiangsu Ever-Glory and Mr. Kang, and collateralized by approximately $1.98 million of accounts receivable from wholesale customers. Approximately $0.23 million was repaid in July 2012.
 
As of June 30, 2012, LA GO GO had borrowed $0.79 million (RMB5.0 million) from the Bank of Communications with an annual interest rate of 6.37% and due in June 2013. This loan is guaranteed by Jiangsu Ever-Glory and Mr. Kang.
 
As of June 30, 2012, Ever-Glory Apparel had borrowed $1.90 million from the Bank of China with an annual interest rate rom 5.9% to 6.1% due on various dates from July 2012 to August 2012. The loan is guaranteed by Goldenway, and collateralized by approximately $2.6 million of accounts receivable from wholesale customers. Approximately $0.98 million was repaid in July 2012.
 
On July 29, 2011, Ever-Glory Apparel and Perfect Dream collectively entered into a secured banking facility agreement for a combined revolving import facility, letter of credit, invoice financing facilities and a credit line for treasury products of up to $7.0 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of June 30, 2012, Ever-Glory Apparel had borrowed $1.22 million from HSBC with an annual interest rate from 5.85% to 7.02% due on various dates from July 2012 to September 2012, and collateralized by approximately $1.63 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. At June 30, 2012, approximately $5.78 million was unused and available. Approximately $0.27 million was repaid in July 2012.
 
Total interest expense on bank loans amounted to $458,703, $1,004,744, $258,924 and $521,175 for the three and six months ended June 30, 2012 and 2011, respectively.
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Income Tax (Details 2) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Components of income tax expense        
Current $ 121,988 $ 474,871 $ 265,092 $ 978,705
Deferred 199,022 (260,895) 563,191 (85,708)
Income tax expense $ 321,010 $ 213,976 $ 845,866 $ 892,997
XML 20 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax (Details 1) (PRC [Member])
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
PRC [Member]
       
Summary of the income tax rates for PRC subsidiaries        
PRC statutory rate 25.00% 25.00% 25.00% 25.00%
Non-taxable or non-deductible items (2.30%) (1.80%) (1.90%) (1.90%)
Effect of foreign income tax rates (8.50%) (16.50%) (7.90%) (7.60%)
Income tax exemption    (0.10%) 0.10% (0.10%)
Other (2.20%) 2.10% 0.60% 0.10%
Effective income tax rate 12.00% 8.70% 15.90% 15.50%
XML 21 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Income Tax (Textual)        
Samoa income tax liabilities          
PRC [Member]
       
Income Tax (Textual)        
PRC statutory rate 25.00% 25.00% 25.00% 25.00%
XML 22 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stockholders' Equity (Details) (USD $)
1 Months Ended 1 Months Ended
Mar. 31, 2012
Three Independent Directors [Member]
Mar. 14, 2012
Three Independent Directors [Member]
Mar. 31, 2012
One Independent Director [Member]
Mar. 21, 2012
One Independent Director [Member]
Stockholders' Equity (Textual)        
Common stock issued at five days average market price   $ 1.94   $ 1.94
Number of shares of common stock issued to independent directors   3,346   1,723
Number of days used to calculation average market price of common stock Five days before the grant date.   Five days before the grant date.  
XML 23 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Inventories
6 Months Ended
Jun. 30, 2012
Inventory Disclosure [Abstract]  
Inventories
 
NOTE 3   INVENTORIES
 
 Inventories at June 30, 2012 and December 31, 2011 consisted of the following:
 
   
June 30,
2012
   
December 31,
2011
 
Raw materials
 
$
7,974,309
   
$
5,606,073
 
Work-in-progress
   
8,996,610
     
7,919,403
 
Finished goods
   
22,930,130
     
23,916,206
 
     
39,901,049
     
37,441,682
 
Less: allowance for obsolete inventories
   
(1,030,351
)    
(566,878
)
  Total inventories
 
$
38,870,698
   
$
36,874,804
 
 
 
XML 24 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Other income from Related Parties        
Total rent revenue $ 6,921 $ 12,102 $ 13,838 $ 24,126
EsCeLav [Member]
       
Other income from Related Parties        
Total rent revenue 2,969 2,872 5,933 5,726
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd. [Member]
       
Other income from Related Parties        
Total rent revenue 3,952 3,830 7,905 7,635
Jiangsu Heng-rui [Member]
       
Other income from Related Parties        
Total rent revenue    $ 5,400    $ 10,765
XML 25 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segments (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Segment profit or loss:        
Net revenue from external customers $ 47,195,031 $ 42,923,640 $ 100,421,204 $ 96,131,877
Income (loss) from operations 2,422,116 2,472,664 5,185,636 5,783,729
Interest income 328,736 124,401 610,220 146,874
Interest expense 458,703 258,924 1,004,744 521,175
Depreciation and amortization 1,136,275 876,304 2,296,910 1,666,901
Income tax expense 321,010 213,976 845,866 892,997
Wholesale Segment [Member]
       
Segment profit or loss:        
Net revenue from external customers 28,807,928 33,663,153 59,468,451 74,272,509
Income (loss) from operations 1,967,832 2,227,029 4,494,836 5,226,517
Interest income 325,486 123,430 603,785 145,319
Interest expense 424,193 246,082 938,754 505,243
Depreciation and amortization 248,435 556,621 498,899 797,969
Income tax expense 215,057 155,371 687,462 756,939
Retail Segment [Member]
       
Segment profit or loss:        
Net revenue from external customers 18,387,103 9,260,487 40,952,753 21,859,368
Income (loss) from operations 454,284 245,635 690,800 557,212
Interest income 3,250 971 6,435 1,555
Interest expense 34,510 12,842 65,990 15,932
Depreciation and amortization 887,840 319,683 1,798,011 868,932
Income tax expense $ 105,953 $ 58,605 $ 158,404 $ 136,058
XML 26 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
CURRENT ASSETS    
Cash and cash equivalents $ 7,184,037 $ 8,822,581
Accounts receivable 36,638,369 50,634,388
Inventories 38,870,698 36,874,804
Value added tax receivable 3,514,667 1,908,436
Other receivables and prepaid expenses 1,424,516 1,122,570
Advances on inventory purchases 2,749,725 2,177,544
Amounts due from related party 18,672,420 17,623,712
Total Current Assets 109,054,432 119,164,035
LAND USE RIGHT, NET 3,082,466 2,845,552
PROPERTY AND EQUIPMENT, NET 12,934,685 13,210,628
TOTAL ASSETS 125,071,583 135,220,215
CURRENT LIABILITIES    
Bank loans 22,473,539 29,185,381
Accounts payable 33,066,119 41,466,844
Accounts payable and other payables - related parties 2,660,262 2,759,003
Other payables and accrued liabilities 6,191,050 5,996,434
Value added and other taxes payable 2,252,625 2,268,872
Income tax payable 280,852 368,714
Deferred tax liabilities 3,041,151 2,460,377
Derivative liability 100,000   
Total Current Liabilities 70,065,598 84,505,625
LONG-TERM LIABILITIES    
Derivative liability    390,800
Total Long-term Liabilities    390,800
TOTAL LIABILITIES 70,065,598 84,896,425
Stockholders' equity of the Company:    
Preferred stock ($.001 par value, authorized 5,000,000 shares, no shares issued and outstanding      
Common stock ($.001 par value, authorized 50,000,000 shares, 14,765,942 and 14,760,873 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively 14,766 14,761
Additional paid-in capital 3,542,200 3,532,369
Retained earnings 39,449,211 34,976,853
Statutory reserve 5,311,921 5,311,921
Accumulated other comprehensive income 6,687,887 6,487,886
Total Stockholders' Equity 55,005,985 50,323,790
TOTAL LIABILITIES AND EQUITY $ 125,071,583 $ 135,220,215
XML 27 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Basis of Presentation
6 Months Ended
Jun. 30, 2012
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Basis of Presentation
 
NOTE 1   BASIS OF PRESENTATION
 
Ever-Glory International Group, Inc. (the “Company”), together with its subsidiaries, is an apparel manufacturer, supplier and retailer in The People's Republic of China ("China or "PRC"), with a wholesale segment and a retail segment. The Company’s wholesale business consists of recognized brands for department and specialty stores located in China, Europe, Japan and the United States. The Company’s retail business consists of flagship stores and store-in-stores for the Company’s own-brand products.
 
The Company’s wholesale operations are provided primarily through the Company’s wholly-owned PRC subsidiaries, Goldenway Nanjing Garments Co. Ltd. (“Goldenway”), Nanjing Catch-Luck Garments Co. Ltd. (“Catch-Luck”), Nanjing New-Tailun Garments Co. Ltd (“New-Tailun”), Ever-Glory International Group Apparel Inc.(“Ever-Glory Apparel”) and Nanjing Tai Xin Garments Trading Company Limited (“Tai Xin”) (formed on March 19, 2012), and the Company’s wholly-owned Samoa subsidiary, Ever-Glory International Group (HK) Ltd. (“Ever-Glory HK”).  The Company’s retail operations are provided through its wholly- owned subsidiary, Shanghai LA GO GO Fashion Company Limited (“LA GO GO”).
 
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheet as of June 30, 2012, the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2012 and 2011, and the condensed consolidated statements of cash flows for the six months ended June 30, 2012 and 2011. 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 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. Wholesale revenues are generally higher in the third and fourth fiscal quarters, while retail revenues are generally higher in the first and fourth fiscal quarters. The results of operations for the six months ended June 30, 2012 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, 2011. 
 
XML 28 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions (Details 3) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Amounts due from related parties    
Amounts due from related party $ 18,672,420 $ 17,623,712
EsCeLav [Member]
   
Amounts due from related parties    
Amounts due from related party 5,932 23,565
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd. [Member]
   
Amounts due from related parties    
Amounts due from related party 7,910   
Jiangsu Ever Glory [Member]
   
Amounts due from related parties    
Amounts due from related party $ 18,658,578 $ 17,600,147
XML 29 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segments (Tables)
6 Months Ended
Jun. 30, 2012
Segment Reporting, Disclosure Of Entitys Reportable Segments [Abstract]  
Company financial and operating information
 
 
 
  
 
Wholesale segment
   
Retail segment
   
Total
 
Six months ended June 30, 2012
                 
Segment profit or loss:
                 
Net revenue from external customers
  $ 59,468,451     $ 40,952,753     $ 100,421,204  
Income from operations
  $ 4,494,836     $ 690,800     $ 5,185,636  
Interest income
  $ 603,785     $ 6,435     $ 610,220  
Interest expense
  $ 938,754     $ 65,990     $ 1,004,744  
Depreciation and amortization
  $ 498,899     $ 1,798,011     $ 2,296,910  
Income tax expense
  $ 687,462     $ 158,404     $ 845,866  
   
 
   
 
   
 
 
Six months ended June 30, 2011
 
 
   
 
   
 
 
Segment profit or loss:
 
 
   
 
   
 
 
Net revenue from external customers
  $ 74,272,509     $ 21,859,368     $ 96,131,877  
Income (loss) from operations
  $ 5,226,517     $ 557,212     $ 5,783,729  
Interest income
  $ 145,319     $ 1,555     $ 146,874  
Interest expense
  $ 505,243     $ 15,932     $ 521,175  
Depreciation and amortization
  $ 797,969     $ 868,932     $ 1,666,901  
Income tax expense
  $ 756,939     $ 136,058     $ 892,997  
 
   
Wholesale segment
   
Retail segment
   
Total
 
Three months ended June 30, 2012
                 
Segment profit or loss:
                 
Net revenue from external customers
  $ 28,807,928     $ 18,387,103     $ 47,195,031  
Income from operations
  $ 1,967,832     $ 454,284     $ 2,422,116  
Interest income
  $ 325,486     $ 3,250     $ 328,736  
Interest expense
  $ 424,193     $ 34,510     $ 458,703  
Depreciation and amortization
  $ 248,435     $ 887,840     $ 1,136,275  
Income tax expense
  $ 215,057     $ 105,953     $ 321,010  
   
 
   
 
   
 
 
Three months ended June 30, 2011
 
 
   
 
   
 
 
Segment profit or loss:
 
 
   
 
   
 
 
Net revenue from external customers
  $ 33,663,153     $ 9,260,487     $ 42,923,640  
Income (loss) from operations
  $ 2,227,029     $ 245,635     $ 2,472,664  
Interest income
  $ 123,430     $ 971     $ 124,401  
Interest expense
  $ 246,082     $ 12,842     $ 258,924  
Depreciation and amortization
  $ 556,621     $ 319,683     $ 876,304  
Income tax expense
  $ 155,371     $ 58,605     $ 213,976  
 
XML 30 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions (Details 4) (USD $)
6 Months Ended
Jun. 30, 2012
Summary of Import and Export Transactions  
Accounts Receivable, As of January 1, 2012 $ 19,999,373
Accounts Receivable, Sales 3,448,685
Accounts Receivable, Payments Received 822,392
Accounts Receivable, As of June 30,2012 22,625,666
Accounts Payable, As of January 1, 2012 2,399,226
Accounts Payable, Sales 5,297,030
Accounts Payable, Payments Made 3,729,168
Accounts Payable, As of June 30,2012 3,967,088
Net import and export, As of January 1, 2012 17,600,147
Net import and export, As of June 30,2012 $ 18,658,578
XML 31 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Bank Loans (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Bank loan due on demand    
Bank loans $ 22,473,539 $ 29,185,381
Nanjing Bank [Member]
   
Bank loan due on demand    
Bank loans 5,599,399 11,731,223
Shanghai Pudong Development Bank [Member]
   
Bank loan due on demand    
Bank loans 6,328,000 8,966,382
Industrial and Commercial Bank Of China [Member]
   
Bank loan due on demand    
Bank loans    5,294,270
Bank Of Communications [Member]
   
Bank loan due on demand    
Bank loans 7,432,103 2,660,562
The Hong Kong and Shanghai Bank [Member]
   
Bank loan due on demand    
Bank loans 1,215,637 532,944
Bank of China [Member]
   
Bank loan due on demand    
Bank loans $ 1,898,400   
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XML 33 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Significant Accounting Policies
6 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
Significant Accounting Policies
 
NOTE 2   SIGNIFICANT ACCOUNTING POLICIES
 
Financial Instruments
 
Management has estimated that the carrying amounts of non-related party financial instruments approximate their fair values due to their short-term maturities. The fair value of amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions.
 
Fair Value Accounting
 
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:
 
 
Level 1      
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
 
 
Level 2      
Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
 
 
Level 3      
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
At June 30, 2012, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality.
 
As of June 30, 2012 and December 31, 2011, the Company has a derivative liability subject to recurring fair value measurement ( Level 3) with the change in fair value recognized in earnings (Note 5).
 
Foreign Currency Translation and Other Comprehensive Income
 
The reporting currency of the Company is the U.S. dollar. The functional currency of the Company, Ever-Glory HK and Perfect Dream Limited, a British Virgin Islands incorporated subsidiary of the Company (“Perfect Dream”), is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Tai Xin and LA GO GO is the Chinese RMB.
 
For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Items in the cash flow statement are translated at the average exchange rate for the period. 
 
Reclassification
 
Certain amounts reported in the June 30, 2011 financial statements have been reclassified to confirm to the June 30, 2012 financial statements presentation.
XML 34 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Statement Of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued      
Preferred stock, shares outstanding      
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 14,765,942 14,760,873
Common stock, shares outstanding 14,765,942 14,760,873
XML 35 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Inventories (Tables)
6 Months Ended
Jun. 30, 2012
Inventory Disclosure [Abstract]  
Component of inventory
  
   
June 30,
2012
   
December 31,
2011
 
Raw materials
 
$
7,974,309
   
$
5,606,073
 
Work-in-progress
   
8,996,610
     
7,919,403
 
Finished goods
   
22,930,130
     
23,916,206
 
     
39,901,049
     
37,441,682
 
Less: allowance for obsolete inventories
   
(1,030,351
)    
(566,878
)
  Total inventories
 
$
38,870,698
   
$
36,874,804
 
XML 36 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Aug. 07, 2012
Document and Entity Information [Abstract]    
Entity Registrant Name Ever-Glory International Group, Inc.  
Entity Central Index Key 0000943184  
Amendment Flag false  
Document Type 10-Q  
Document Period End Date Jun. 30, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   14,765,942
XML 37 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Bank Loans (Tables)
6 Months Ended
Jun. 30, 2012
Loans Payable [Abstract]  
Bank loans due on demand
 
Bank
 
June 30,
2012
   
December 31,
2011
 
Nanjing Bank
 
$
5,599,399
   
$
11,731,223
 
Shanghai Pudong Development Bank
   
6,328,000
     
8,966,382
 
Industrial and Commercial Bank of China
   
-
     
5,294,270
 
Bank of Communications
   
7,432,103
     
2,660,562
 
The Hong Kong and Shanghai Bank
 
1,215,637 
     
532,944
 
Bank of China
   
1,898,400
     
-
 
   
$
22,473,539
   
$
29,185,381
XML 38 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
NET SALES $ 47,195,031 $ 42,923,640 $ 100,421,204 $ 96,131,877
COST OF SALES 33,608,450 32,566,893 75,231,635 76,663,118
GROSS PROFIT 13,586,581 10,356,747 25,189,569 19,468,759
OPERATING EXPENSES        
Selling expenses 6,966,335 3,766,770 12,800,527 7,355,875
General and administrative expenses 4,198,130 4,117,313 7,203,406 6,329,155
Total Operating Expenses 11,164,465 7,884,083 20,003,933 13,685,030
INCOME FROM OPERATIONS 2,422,116 2,472,664 5,185,636 5,783,729
OTHER INCOME (EXPENSES)        
Interest income 328,736 124,401 610,220 146,874
Interest expense (458,703) (258,924) (1,004,744) (521,175)
Change in fair value of derivative liability 180,000 134,500 290,800 330,300
Other income 200,010 204 236,313 24,134
Total Other Income (Expenses) 250,043 181 132,589 (19,867)
INCOME BEFORE INCOME TAX EXPENSE 2,672,159 2,472,845 5,318,225 5,763,862
INCOME TAX EXPENSE (321,010) (213,976) (845,866) (892,997)
NET INCOME 2,351,149 2,258,869 4,472,359 4,870,865
OTHER COMPERHENSIVE (LOSS) INCOME        
Foreign currency translation (loss) gain (196,365) 479,660 200,001 716,495
COMPREHENSIVE INCOME $ 2,154,784 $ 2,738,529 $ 4,672,360 $ 5,587,360
EARNINGS PER SHARE        
Basic and diluted $ 0.16 $ 0.15 $ 0.30 $ 0.33
Weighted average number of shares outstanding        
Basic and diluted 14,765,942 14,755,494 14,763,815 14,754,687
XML 39 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stockholders' Equity
6 Months Ended
Jun. 30, 2012
Stockholders Equity Note [Abstract]  
Stockholders’ Equity
 
NOTE 7   STOCKHOLDERS’ EQUITY
 
On March 14, 2012, the Company issued an aggregate of 3,346 shares of its common stock to the Company’s three independent directors as compensation for their services in the third and fourth quarters of 2011. The shares were valued at $1.94 per share, which was the average market price of the common stock for the five days before the grant date.
 
On March 21, 2012, the Company issued an aggregate of 1,723 shares of its common stock to one of the Company’s independent director as compensation for her services in the third and fourth quarters of 2011. The shares were valued at $1.94 per share, which was the average market price of the common stock for the five days before the grant date.
 
XML 40 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax
6 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Income Tax
 
NOTE 6   INCOME TAX
 
PRC pre-tax income for the three and six months ended June 30, 2012 and 2011, was taxable in the following jurisdictions.
 
  
 
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
PRC
 
$
1,582,335
   
$
712,029
   
$
3,350,278
   
$
3,691,090
 
Others
   
1,089,824
     
1,760,816
     
1,967,947
     
2,072,772
 
 
 
$
2,672,159
   
$
2,472,845
   
$
5,318,225
   
$
5,763,862
 
 
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 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 on September 15, 2009, and under the current laws of Samoa has no liabilities for income tax.
 
The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the three and six months ended June 30, 2012 and 2011, respectively:
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
PRC statutory rate
   
25.0
%
   
25.0
%
   
25.0
%
   
25.0
%
Non-taxable or non-deductible items
   
(2.3
)
   
(1.8
   
(1.9
)
   
(1.9
)
Effect of foreign income tax rates
   
(8.5
)
   
(16.5
)
   
(7.9
)
   
(7.6
)
Income tax exemption
   
-
     
(0.1
)
   
0.1
     
(0.1
)
Other
   
(2.2
)
   
2.1
     
0.6
     
0.1
 
Effective income tax rate
   
12.0
%
   
8.7
%
   
15.9
%
   
15.5
%
 
Income tax expense for the three and six months ended June 30, 2012 and 2011 is as follows:
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Current
 
$
121,988
   
$
474,871
   
$
265,092
   
$
978,705
 
Deferred
   
199,022
     
(260,895
   
580,774
     
(85,708
)
Income tax expense
 
$
321,010
   
$
213,976
   
$
845,866
   
$
892,997
 
XML 41 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Inventories (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Components of inventory    
Raw materials $ 7,974,309 $ 5,606,073
Work-in-progress 8,996,610 7,919,403
Finished goods 22,930,130 23,916,206
Inventory gross 39,901,049 37,441,682
Less: allowance for obsolete inventories (1,030,351) (566,878)
Total inventories $ 38,870,698 $ 36,874,804
XML 42 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax (Tables)
6 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Pre-tax income in jurisdictions
 
  
 
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
PRC
 
$
1,582,335
   
$
712,029
   
$
3,350,278
   
$
3,691,090
 
Others
   
1,089,824
     
1,760,816
     
1,967,947
     
2,072,772
 
 
 
$
2,672,159
   
$
2,472,845
   
$
5,318,225
   
$
5,763,862
 
Reconciliation of PRC statutory rates to the Company’s effective tax rate
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
PRC statutory rate
   
25.0
%
   
25.0
%
   
25.0
%
   
25.0
%
Non-taxable or non-deductible items
   
(2.3
)
   
(1.8
   
(1.9
)
   
(1.9
)
Effect of foreign income tax rates
   
(8.5
)
   
(16.5
)
   
(7.9
)
   
(7.6
)
Income tax exemption
   
-
     
(0.1
)
   
0.1
     
(0.1
)
Other
   
(2.2
)
   
2.1
     
0.6
     
0.1
 
Effective income tax rate
   
12.0
%
   
8.7
%
   
15.9
%
   
15.5
%
Components of income tax expense
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Current
 
$
121,988
   
$
474,871
   
$
265,092
   
$
978,705
 
Deferred
   
199,022
     
(260,895
   
580,774
     
(85,708
)
Income tax expense
 
$
321,010
   
$
213,976
   
$
845,866
   
$
892,997
 
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Segments
6 Months Ended
Jun. 30, 2012
Segment Reporting, Disclosure Of Entitys Reportable Segments [Abstract]  
Segments
 
NOTE 10   SEGMENTS
 
 The Company reports financial and operating information in the following two segments:
 
 (a)  Wholesale segment
 
 (b)  Retail segment
 
  
 
Wholesale segment
   
Retail segment
   
Total
 
Six months ended June 30, 2012
                 
Segment profit or loss:
                 
Net revenue from external customers
  $ 59,468,451     $ 40,952,753     $ 100,421,204  
Income from operations
  $ 4,494,836     $ 690,800     $ 5,185,636  
Interest income
  $ 603,785     $ 6,435     $ 610,220  
Interest expense
  $ 938,754     $ 65,990     $ 1,004,744  
Depreciation and amortization
  $ 498,899     $ 1,798,011     $ 2,296,910  
Income tax expense
  $ 687,462     $ 158,404     $ 845,866  
   
 
   
 
   
 
 
Six months ended June 30, 2011
 
 
   
 
   
 
 
Segment profit or loss:
 
 
   
 
   
 
 
Net revenue from external customers
  $ 74,272,509     $ 21,859,368     $ 96,131,877  
Income (loss) from operations
  $ 5,226,517     $ 557,212     $ 5,783,729  
Interest income
  $ 145,319     $ 1,555     $ 146,874  
Interest expense
  $ 505,243     $ 15,932     $ 521,175  
Depreciation and amortization
  $ 797,969     $ 868,932     $ 1,666,901  
Income tax expense
  $ 756,939     $ 136,058     $ 892,997  
 
   
Wholesale segment
   
Retail segment
   
Total
 
Three months ended June 30, 2012
                 
Segment profit or loss:
                 
Net revenue from external customers
  $ 28,807,928     $ 18,387,103     $ 47,195,031  
Income from operations
  $ 1,967,832     $ 454,284     $ 2,422,116  
Interest income
  $ 325,486     $ 3,250     $ 328,736  
Interest expense
  $ 424,193     $ 34,510     $ 458,703  
Depreciation and amortization
  $ 248,435     $ 887,840     $ 1,136,275  
Income tax expense
  $ 215,057     $ 105,953     $ 321,010  
   
 
   
 
   
 
 
Three months ended June 30, 2011
 
 
   
 
   
 
 
Segment profit or loss:
 
 
   
 
   
 
 
Net revenue from external customers
  $ 33,663,153     $ 9,260,487     $ 42,923,640  
Income (loss) from operations
  $ 2,227,029     $ 245,635     $ 2,472,664  
Interest income
  $ 123,430     $ 971     $ 124,401  
Interest expense
  $ 246,082     $ 12,842     $ 258,924  
Depreciation and amortization
  $ 556,621     $ 319,683     $ 876,304  
Income tax expense
  $ 155,371     $ 58,605     $ 213,976  
XML 45 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
6 Months Ended
Jun. 30, 2012
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 (H.K.) Ltd. (“Ever-Glory Enterprises”) is the Company’s major shareholder.  Mr. Xiaodong Yan is Ever-Glory Enterprises’ sole shareholder. All transactions associated with the following companies controlled by Mr. Kang or Mr. Yan 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-tem in nature and are expected to be settled in cash.
 
Other income from Related Parties
 
Included in other income for the three and six months ended June 30, 2012 and 2011 is rent revenue from entities controlled by Mr. Kang under operating lease agreements with various terms though 2015 as follows:
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
EsCeLav
 
$
2,969
   
$
2,872
   
$
5,933
   
$
5,726
 
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd.
 
$
3,952
   
$
3,830
   
$
7,905
   
$
7,635
 
Jiangsu Heng-Rui
 
$
-
   
$
5,400
   
-
   
10,765
 
Total 
 
$
6,921
   
$
12,102
   
$
13,838
   
$
24,126
 
 
Purchases from, and Sub-contracts with Related Parties
 
In connection with the Company’s tax planning strategies relating to value-added taxes, raw materials are sourced by the Company in the PRC and shipped to related party contract manufacturers in Vietnam and Cambodia. The raw materials were originally purchased by the Company, and, through a series of transactions, were sold at cost to, and repurchased at cost from, Jiangsu Ever-Glory. These transactions amounted to approximately $1.1 million (RMB7.5 million) during the six months ended June 30, 2011, and have been netted against each other for financial reporting purposes.  There were no such transactions in 2012.
 
For the three and six months ended June 30 2012 and 2011, the Company purchased raw materials of $79,413, $714,022, $948,146, $1,059,091, respectively, from Nanjing Knitting.
 
In addition, the Company sub-contracted certain manufacturing work to related parties totaling $2,597,793, $5,423,363, $2,458,327, $3,988,745 for the three and six months ended June 30, 2012 and 2011, respectively. The Company provided raw materials to the sub-contractors and was 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 six months ended June 30, 2012 and 2011 are as follows:
 
  
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Nanjing Knitting
 
$
119,159
   
$
11,855
   
$
753,768
   
$
35,565
 
Nanjing Ever-Kyowa
   
246,417
     
297,973
     
411,634
     
535,613
 
Ever-Glory Vietnam
   
625,667
     
1,494,180
     
1,455,136
     
2,392,433
 
Ever-Glory Cambodia
   
1,594,778
     
653,436
     
2,781,291
     
1,023,255
 
EsC'Lav
   
 6,616
     
883
     
12,564
     
11,879
 
Jiangsu Ever-Glory
   
  5,156
     
     
8,970
     
 
   
$
2,597,793
   
$
2,458,327
   
$
5,423,363
   
$
3,998,745
 
 
Accounts Payable – Related Parties
 
The Company purchases raw materials from and subcontracts some of its production to related parties. Accounts payable to related parties at June 30, 2012 and December 31, 2011 are as follows:
 
   
June 30,
2012
   
December 31,
2011
 
Nanjing Knitting
 
$
1,105,915
   
$
661,139
 
Nanjing Ever-Kyowa
   
288,720
     
436,030
 
Ever-Glory Vietnam
   
632,342
     
1,305,696
 
Ever-Glory Cambodia
   
633,285
     
330,047
 
Kunshan Enjin
   
-
     
26,091
 
  Total
 
$
2,660,262
   
$
2,759,003
 
 
Amounts Due From Related Party
 
The amounts due from related parties at June 30, 2012 and December 31, 2011 are as follows:
 
  
 
June 30,
2012
   
December 31,
2011
 
EsC'eLav
 
$
5,932
   
$
23,565
 
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd.
   
7,910
        -  
Jiangsu Ever-Glory
   
18,658,578
     
17,600,147
 
  Total
 
$
18,724,420
   
$
17,623,712
 
 
 
Jiangsu Ever-Glory engages in importing/exporting, apparel-manufacture, real-estate development, car sales and other activities. Jiangsu Ever-Glory is controlled by the Company’s Chief Executive Officer. Because of restrictions on its ability to directly import and export products, the Company utilizes Jiangsu Ever-Glory as its agent to assist the Company with its import and export transactions and its international transportation projects. Import transactions primarily consist of purchases of raw materials and accessories designated by the Company’s customers for use in garment manufacture. Export transactions consist of the Company’s sales to foreign markets such as Japan, Europe and the United States. As the Company’s agent, Jiangsu Ever-Glory’s responsibilities include managing customs, inspection, transportation, insurance and collections on behalf of the Company. Jiangsu Ever-Glory also manages transactions denominated in currencies other than the Chinese RMB at rates of exchange agreed between the Company and Jiangsu Ever-Glory and based upon rates of exchange quoted by the People’s Bank of China. In return for these services, Jiangsu Ever-Glory charged the Company a fee of approximately 3% of export sales manufactured in China and 1% of export sales manufactured overseas. For import transactions, the Company may make advance payments, through Jiangsu Ever-Glory, for the raw material purchases, or Jiangsu Ever-Glory may make advance payments on the Company’s behalf. For export transactions, accounts receivable for export sales are remitted by the Company’s customers through Jiangsu Ever-Glory, who forwards the payments to the Company. The Company and Jiangsu Ever-Glory have agreed that balances from import and export transactions may be offset. Amounts due to (from) Jiangsu Ever-Glory are typically settled within 60-90 days. Interest of 0.5% is charged on net amounts due at each month end. Interest income for the three and six months ended June 30, 2012 and 2011 was $290,559, $563,295, $120,379 and $139,495, respectively. Following is a summary of import and export transactions for the six months ended June 30, 2012:
 
   
Accounts Receivable
   
Accounts Payable
   
Net
 
As of January 1, 2012
 
$
19,999,373
   
$
2,399,226
   
$
17,600,147
 
Sales
 
$
3,448,685
     
5,297,030
     
-
 
Payments Received/Made
 
$
822,392
   
$
3,729,168
     
-
 
As of June 30,2012
 
$
22,625,666
   
$
3,967,088
   
$
18,658,578
 
 
Approximately  20.8 % of the receivable balance at June 30, 2012 was settled by August 7, 2012.
 
Loan from Related Party
 
As of January 1, 2010 the Company owed $1.0 million to Blue Power Holdings Limited, a company controlled by the Company’s Chief Executive Officer. Interest was charged at 6% per annum on the amounts due. The loans were paid in full in April 2011.
XML 46 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Concentrations and Risks
6 Months Ended
Jun. 30, 2012
Risks and Uncertainties [Abstract]  
Concentrations and Risks
 
NOTE 9   CONCENTRATIONS AND RISKS
 
The Company extends unsecured credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. Based on management’s assessment of the amount of probable credit losses, if any, in existing accounts receivable, management has concluded that no allowance for doubtful accounts is necessary at June 30, 2012 and December 31, 2011. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the credit worthiness of the customer, the economic conditions in the customer’s industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts.  If judgments regarding the collectability of accounts receivables are incorrect, adjustments to the allowance may be required, which would reduce profitability. 
 
For the six-month period ended June 30, 2012, the Company had two wholesale customers that represented approximately 13% and 12% of the Company’s revenues. For the three-month period ended June 30, 2012, the Company had two wholesale customers that each represented approximately 11% of the Company’s revenues. For the six-month period ended June 30, 2011, the Company had two wholesale customers that each represented approximately 23% and 17% of the Company’s revenues. For the three-month period ended June 30, 2011, the Company had one wholesale customer that represented approximately 26% of the Company’s revenues.
 
For the Company’s wholesale business during the three and six months ended June 30, 2012 and 2011, no supplier represented more than 10% of the total raw materials purchased.
 
For the Company’s retail business, the Company had one supplier that represented approximately 14% of raw materials purchases during the six months ended June 30, 2012. The Company purchased 11% and 14% of its raw materials from two suppliers during the three months ended June 30, 2012. The Company had one supplier that represented approximately 16% of raw materials purchases during the six months ended June 30, 2011. The Company purchased 22% of its raw materials from one supplier during the three months ended June 30, 2011.
 
For the wholesale business, during the six months ended June 30, 2012, the Company relied on two manufacturers for 17% and 13% of purchased finished goods. During the six months ended June 30, 2011, the Company relied on one manufacturer for 10% of purchased finished goods. During the three months ended June 30, 2012, the Company relied on two manufacturers for 19% and 16% of purchased finished goods. During the three months ended June 30, 2011, the Company relied on two manufacturers for 15% and 11% of purchased finished goods. 
 
For the retail business, during the three and six months ended June 30, 2012 , no supplier represented more than 10% of the total purchased finished goods.During the six months ended June 30, 2011 , no supplier represented more than 10% of the total purchased finished goods. During the three months ended June 30, 2011 , the Company relied on one manufacturer for 10% of purchased finished goods.
 
The Company’s revenues for the three and six months ended June 30, 2012 and 2011 were earned in the following geographic areas:
 
  
 
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
The People’s Republic of China
 
$
29,320,073
   
$
15,420,664
   
$
59,828,555
   
$
41,694,449
 
Germany
   
3,393,413
     
8,670,146
     
8,858,106
     
17,410,721
 
United Kingdom
   
4,588,231
     
5,403,112
     
7,953,390
     
7,741,270
 
Europe-Other
   
3,189,555
     
2,826,082
     
7,753,988
     
7,618,743
 
Japan
   
2,416,434
     
5,060,331
     
8,523,582
     
11,012,419
 
United States
   
4,287,325
     
5,543,305
     
7,503,583
     
10,654,275
 
Total
 
$
47,195,031
   
$
42,923,640
   
$
100,421,204
   
$
96,131,877
 
XML 47 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
Financial Instruments
 
Financial Instruments
 
Management has estimated that the carrying amounts of non-related party financial instruments approximate their fair values due to their short-term maturities. The fair value of amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions.
Fair Value Accounting
 
Fair Value Accounting
 
Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:
 
 
Level 1      
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
 
 
Level 2      
Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
 
 
Level 3      
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
At June 30, 2012, the Company’s financial assets (all Level 1) consist of cash placed with financial institutions that management considers to be of a high quality.
 
As of June 30, 2012 and December 31, 2011, the Company has a derivative liability subject to recurring fair value measurement ( Level 3) with the change in fair value recognized in earnings (Note 5).
Foreign currency translation and other comprehensive income
 
Foreign Currency Translation and Other Comprehensive Income
 
The reporting currency of the Company is the U.S. dollar. The functional currency of the Company, Ever-Glory HK and Perfect Dream Limited, a British Virgin Islands incorporated subsidiary of the Company (“Perfect Dream”), is the U.S. dollar. The functional currency of Goldenway, New Tailun, Catch-luck, Ever-Glory Apparel, Tai Xin and LA GO GO is the Chinese RMB.
 
For subsidiaries whose functional currency is the RMB, all assets and liabilities were translated at the exchange rate at the balance sheet date; equity was translated at historical rates and items in the statement of comprehensive income were translated at the average rate for the period. Translation adjustments resulting from this process are included in accumulated other comprehensive income. The resulting translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Items in the cash flow statement are translated at the average exchange rate for the period.
Reclassification
 
Reclassification
 
Certain amounts reported in the June 30, 2011 financial statements have been reclassified to confirm to the June 30, 2012 financial statements presentation.
XML 48 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions (Details 2) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Accounts payable - related parties    
Accounts payable - related parties, Total $ 2,660,262 $ 2,759,003
Nanjing Knitting [Member]
   
Accounts payable - related parties    
Accounts payable - related parties, Total 1,105,915 661,139
Nanjing Ever Kyowa [Member]
   
Accounts payable - related parties    
Accounts payable - related parties, Total 288,720 436,030
Ever Glory Vietnam [Member]
   
Accounts payable - related parties    
Accounts payable - related parties, Total 632,342 1,305,696
Ever Glory Cambodia [Member]
   
Accounts payable - related parties    
Accounts payable - related parties, Total 633,285 330,047
Kunshan Enjin [Member]
   
Accounts payable - related parties    
Accounts payable - related parties, Total    $ 26,091
XML 49 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Concentrations and Risks (Tables)
6 Months Ended
Jun. 30, 2012
Risks and Uncertainties [Abstract]  
Company's revenues as per geographic areas
 
 
  
 
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
The People’s Republic of China
 
$
29,320,073
   
$
15,420,664
   
$
59,828,555
   
$
41,694,449
 
Germany
   
3,393,413
     
8,670,146
     
8,858,106
     
17,410,721
 
United Kingdom
   
4,588,231
     
5,403,112
     
7,953,390
     
7,741,270
 
Europe-Other
   
3,189,555
     
2,826,082
     
7,753,988
     
7,618,743
 
Japan
   
2,416,434
     
5,060,331
     
8,523,582
     
11,012,419
 
United States
   
4,287,325
     
5,543,305
     
7,503,583
     
10,654,275
 
Total
 
$
47,195,031
   
$
42,923,640
   
$
100,421,204
   
$
96,131,877
 
XML 50 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivative Warrant Liability (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Derivative Warrant Liability (Textual)        
Number of common stock, shares purchasable by warrants outstanding 840,454   840,454  
Change in fair value of derivative liability $ 180,000 $ 134,500 $ 290,800 $ 330,300
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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 4,472,359 $ 4,870,865
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization 2,296,910 1,666,901
Provision (recovery) for obsolete inventories 459,213 (13,666)
Change in fair value of derivative liability (290,800) (330,300)
Deferred income tax 563,191 (85,708)
Interest on loans from related party    909
Stock-based compensation 9,836 10,077
Accounts receivable 14,295,016 9,413,419
Inventories (2,219,405) (37,484)
Value added tax receivable (1,591,861) (1,708,832)
Other receivables and prepaid expenses (295,199) 8,208
Advances on inventory purchases (555,284) 537,544
Amounts due from related parties (936,188) (6,019,433)
Accounts payable (8,594,380) (3,242,434)
Accounts payable and other payables- related parties (80,515) (138,168)
Other payables and accrued liabilities 36,570 975,521
Value added and other taxes payable (32,117) 447,390
Income tax payable (90,383) 559,150
Net cash provided by operating activities 7,446,963 6,913,959
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (2,147,918) (1,535,053)
Net cash used in investing activities (2,147,918) (1,535,053)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from bank loans 24,576,457 28,557,182
Repayment of bank loans (31,488,282) (26,167,763)
Repayment of loans from related party   (1,000,720)
Net cash (used in) provided by financing activities (6,911,825) 1,388,699
EFFECT OF EXCHANGE RATE CHANGES ON CASH (25,764) 253,305
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,638,544) 7,020,910
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8,822,581 3,691,653
CASH AND CASH EQUIVALENTS AT END OF PERIOD 7,184,037 10,712,563
Cash paid during the period for:    
Interest 1,004,744 520,195
Income taxes $ 373,221 $ 423,577
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Derivative Warrant Liability
6 Months Ended
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Warrant Liability
 
NOTE 5   DERIVATIVE WARRANT LIABILITY
 
The Company has warrants outstanding to purchase an aggregate of 840,454 shares of Company common stock, which warrants require liability classification because of certain provisions that may result in an adjustment to their exercise price. The liability has been adjusted to fair value as of June 30, 2012 and 2011, resulting in a decrease in the liability and increase in other income of $180,000, $290,800, $134,500 and $330,300 for the three and six months ended June 30, 2012 and 2011, respectively.
 
The warrants will expire in June 2013. For the three and six months ended June 30, 2012 and 2011, the Company excluded these warrants from diluted earnings per share as they were antidilutive.
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Income Tax (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Pre-tax income in jurisdictions        
Pre tax income $ 2,672,159 $ 2,472,845 $ 5,318,225 $ 5,763,862
PRC [Member]
       
Pre-tax income in jurisdictions        
Pre tax income 1,582,335 712,029 3,350,278 3,691,090
Others [Member]
       
Pre-tax income in jurisdictions        
Pre tax income $ 1,089,824 $ 1,760,816 $ 1,967,947 $ 2,072,772
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Concentrations and Risks (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Geographic Sales Concentration        
Net revenue from external customers $ 47,195,031 $ 42,923,640 $ 100,421,204 $ 96,131,877
The People’s Republic of China [Member]
       
Geographic Sales Concentration        
Net revenue from external customers 29,320,073 15,420,664 59,828,555 41,694,449
Germany [Member]
       
Geographic Sales Concentration        
Net revenue from external customers 3,393,413 8,670,146 8,858,106 17,410,721
United Kingdom [Member]
       
Geographic Sales Concentration        
Net revenue from external customers 4,588,231 5,403,112 7,953,390 7,741,270
Europe-Other [Member]
       
Geographic Sales Concentration        
Net revenue from external customers 3,189,555 2,826,082 7,753,988 7,618,743
Japan [Member]
       
Geographic Sales Concentration        
Net revenue from external customers 2,416,434 5,060,331 8,523,582 11,012,419
United States [Member]
       
Geographic Sales Concentration        
Net revenue from external customers $ 4,287,325 $ 5,543,305 $ 7,503,583 $ 10,654,275
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Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2012
Related Party Transactions [Abstract]  
Other income from related parties
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
EsCeLav
 
$
2,969
   
$
2,872
   
$
5,933
   
$
5,726
 
Nanjing Eight-One-Five Hi-Tech (M&E) Co.,Ltd.
 
$
3,952
   
$
3,830
   
$
7,905
   
$
7,635
 
Jiangsu Heng-Rui
 
$
-
   
$
5,400
   
-
   
10,765
 
Total 
 
$
6,921
   
$
12,102
   
$
13,838
   
$
24,126
 
 
Purchases from, and Sub-contracts with related parties
 
 
  
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Nanjing Knitting
 
$
119,159
   
$
11,855
   
$
753,768
   
$
35,565
 
Nanjing Ever-Kyowa
   
246,417
     
297,973
     
411,634
     
535,613
 
Ever-Glory Vietnam
   
625,667
     
1,494,180
     
1,455,136
     
2,392,433
 
Ever-Glory Cambodia
   
1,594,778
     
653,436
     
2,781,291
     
1,023,255
 
EsC'Lav
   
 6,616
     
883
     
12,564
     
11,879
 
Jiangsu Ever-Glory
   
  5,156
     
     
8,970
     
 
   
$
2,597,793
   
$
2,458,327
   
$
5,423,363
   
$
3,998,745
 
Accounts payable-related parties
 
 
   
June 30,
2012
   
December 31,
2011
 
Nanjing Knitting
 
$
1,105,915
   
$
661,139
 
Nanjing Ever-Kyowa
   
288,720
     
436,030
 
Ever-Glory Vietnam
   
632,342
     
1,305,696
 
Ever-Glory Cambodia
   
633,285
     
330,047
 
Kunshan Enjin
   
-
     
26,091
 
  Total
 
$
2,660,262
   
$
2,759,003
 
 
Amounts due from related party
 
 
  
 
June 30,
2012
   
December 31,
2011
 
EsC'eLav
 
$
5,932
   
$
23,565
 
Nanjing Eight-One-Five Hi-tech (M&E) Co.,Ltd.
   
7,910
        -  
Jiangsu Ever-Glory
   
18,658,578
     
17,600,147
 
  Total
 
$
18,724,420
   
$
17,623,712
 
 
Summary of import and export transactions
 
 
   
Accounts Receivable
   
Accounts Payable
   
Net
 
As of January 1, 2012
 
$
19,999,373
   
$
2,399,226
   
$
17,600,147
 
Sales
 
$
3,448,685
     
5,297,030
     
-
 
Payments Received/Made
 
$
822,392
   
$
3,729,168
     
-
 
As of June 30,2012
 
$
22,625,666
   
$
3,967,088
   
$
18,658,578