Concentrations and Risks

12 Months Ended

Dec. 31, 2012

Concentrations and Risks [Abstract]

CONCENTRATIONS AND RISKS

NOTE 15 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 December 31, 2012 and 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 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.

The Company had two wholesale customers that represented approximately 11% of the Company’s revenues each, for the year ended December 31, 2012, and had two wholesale customers that represented approximately 19% and 17.5% of the Company’s revenues, respectively, for the year ended December 31, 2011, respectively.

For the Company’s wholesale business during 2012 and 2011, no supplier represented more than 10% of the total raw materials purchased.

For the Company’s retail business during 2012 and 2011, no supplier represented more than 10% of the total raw materials purchased.

For the wholesale business, the Company relied on one manufacturer for 14% and 13% of purchased finished goods during 2012 and 2011, respectively.

For the retail business, the Company did not rely on any single manufacturer for more than 10% of total purchased finished goods during 2012 and 2011.

The Company’s revenues for the years ended December 31, 2012 and 2011 were earned in the following geographic areas:

	2012		2011
The People’s Republic of China	$	70,161,563	$	61,908,224
Germany		21,627,788		31,232,561
United Kingdom		22,885,131		14,042,858
Europe-Other		15,154,483		13,119,058
Japan		23,082,506		20,245,785
United States		18,129,628		21,687,984
Total wholesale business		171,041,099		162,236,470
Retail business		108,592,113		53,542,544
Total	$	279,633,212	$	215,779,014

Substantially all of the Company’s long-lived assets were attributable to the PRC as of December 31, 2012 and 2011.