Concentrations and Risks

3 Months Ended

Mar. 31, 2014

Concentrations and Risks [Abstract]

CONCENTRATIONS AND RISKS

NOTE 10 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 March 31, 2014 and December 31, 2013. 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 three-month period ended March 31, 2014, the Company had two wholesale customers that represented approximately 14% and 11% of the Company’s revenues. For the three-month period ended March 31, 2013, the Company had two wholesale customers that represented approximately 13% and 11% of the Company’s revenues.

For the wholesale business, the Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2014 and 2013.

For the retail business, The Company relied on one raw material supplier that represented approximately 12% of raw material purchases during the three months ended March 31, 2013. The Company did not rely on any one raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2013.

For the wholesale business, during the three months ended March 31, 2014, the Company relied on two manufacturers that represented 17% and 12% of finished goods purchases, and during the three months ended March 31, 2013, the Company relied on two manufacturers that represented 13% and 12% of finished goods purchases. The first two manufacturers are related party companies. Ever-Glory Vietnam and Ever-Glory Cambodia.

For the retail business, the Company did not rely on any one supplier that represented more than 10% of the total finished goods purchases during the three months ended March 31, 2014 and 2013.

The Company’s revenues for the three months ended March 31, 2014 and 2013 were earned in the following geographic areas:

	2014		2013
The People’s Republic of China(PRC)	$	14,598,025	$	13,031,064
Germany		6,298,160		4,371,333
United Kingdom		2,624,147		2,864,634
France		3,924,062		3,412,988
Europe-Other		2,531,860		554,627
Japan		6,242,892		3,698,834
United States		3,222,343		3,726,975
Total wholesale business		39,441,489		31,660,455
Retail business-PRC		66,573,680		46,651,035
Total	$	106,015,169	$	78,311,490