Bank Loans

3 Months Ended

Mar. 31, 2014

Bank Loans [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 March 31, 2014 and December 31, 2013:

Bank	March 31, 2014		December 31, 2013
Nanjing Bank	$	12,147,020	$	18,526,618
Industrial and Commercial Bank of China		10,250,586		1,799,600
Bank of Communications		8,591,572		9,245,108
Bank of China		6,546,924		8,210,699
HSBC		5,915,543		3,499,552
Bank of Everbright		3,244,000		3,272,000
China Minsheng Banking		3,244,000		4,953,069
Pin An Bank		1,520,197		2,196,102
Huaxia Bank		-		1,636,000
	$	51,459,842	$	53,338,748

On June 14, 2013, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.11 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 March 31, 2014, Goldenway had borrowed $5.68 (RMB35 million) under this line of credit from Nanjing Bank with an annual interest rate of 6.16% from April to August 2014. At March 31, 2014, approximately 2.43 million was unused and available under this line of credit. Approximately $1.62 million was repaid subsequent to March 31, 2014.

On June 14, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.73 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory. As of March 31, 2014, Ever-Glory Apparel had borrowed $1.62 million (RMB 10 million) under this line of credit with an annual interest rate of 6.6% and due on September 2014. Ever-Glory Apparel had also borrowed $2.42 million from Nanjing Bank with annual interest rates ranging from 1.67% to 2.78% and due on various dates from May to June 2014, and collateralized by approximately $3.86 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $5.69 million was unused and available under this line of credit.

On April 10, 2013, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.24 million (RMB20 million). The line of credit is guaranteed by Mr. Kang. As of March 31, 2014, LA GO GO had borrowed $2.43million (RMB15 million) under this line of credit with an annual interest rate of 6.16% and due on various dates from April and July 2014. At March 31, 2014, approximately $0.81 million (RMB5 million) was unused and available under this line of credit. Approximately $1.62 million was repaid subsequent to March 31, 2014.

On January 1, 2014, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $6.49 million (RMB40 million). These loans are collateralized by the Company’s property and equipment. As of March 31, 2014, Goldenway had borrowed $6.49 million (RMB40 million) under this line of credit with an annual interest rate of 5.77% and due one June 2014.

On January 1, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $4.87 million (RMB30 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of March 31, 2014, Ever-Glory Apparel had borrowed $3.76 million (RMB 20.5 million and USD 0.44 million) under this line of credit with an annual interest rate of 1.04% and due on various dates from June to July 2014, and collateralized by approximately $4.82 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $1.11 million was unused and available under this line of credit.

On January 29, 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.43 million (RMB52 million) with the Bank of Communications and collateralized by assets of Jiangsu Ever-Glory’s equity investee, Nanjing Knitting, under a collateral agreement executed among the Company, Jiangsu Ever-Glory, Nanjing Knitting and the bank. As of March 31, 2014, Ever-Glory Apparel had borrowed $4.06 million (RMB25 million) with an annual interest rate of 6.9% and due on various dates from February to March 2015. Ever-Glory Apparel had also borrowed $1.29 million from the Bank of Communications with an annual interest rate of 5.75% and due in February 2015, and collateralized by approximately $2.01 million of accounts receivable from wholesale customers. At March 31, 2014, approximately $3.08 million was unused and available under this line of credit.

On July 16, 2013, LA GO GO entered into a line of credit agreement for approximately $3.57 million (RMB22 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory and Mr. Kang. As of March 31, 2014, LA GO GO had borrowed $3.24 million (RMB20 million) from the Bank of Communications with an annual interest rate of 6.3% and due in July 2014. At March 31, 2014, approximately $0.33 million was unused and available under this line of credit.

On November 11, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.68 million (RMB35 million) with the Bank of China and guaranteed by Jiangsu Ever-Glory and Mr. Kang. As of March 31, 2014, Ever-Glory Apparel had borrowed $1.62 million (RMB10 million) with an annual interest rate of 6.05% and due in April 2014 under this line of credit. Ever-Glory Apparel had also borrowed $4.92 million ($1.2 million and RMB 23 million) from the Bank of China with annual interest rates ranging from 2.56% to 5.6%, due on various dates from May to June 2014, and collateralized by approximately $7.1 million of accounts receivable from wholesale customers. Approximately $1.62 million was repaid subsequent to March 31, 2014.

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 March 31, 2014, Ever-Glory Apparel had borrowed $5.92 million from HSBC with an annual interest rates ranging from 2.78% to 5.88%, due on various dates from April to June 2014, and collateralized by approximately $7.9 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of March 31, 2014, approximately $1.48 million was unused and available. Approximately $1.14 million was repaid subsequent to March 31, 2014.

On September 1, 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $11.35 million (RMB70 million) with Everbright Bank, and collateralized by assets of Jiangsu Ever-Glory , This loan is also guaranteed by Goldenway and Mr. Kang. As of March 31, 2014, Ever-Glory Apparel had borrowed $3.24 million (RMB20.0 million) from Everbright Bank, with an annual interest rate of 6.3% and due in October 2014. At March 31, 2014, approximately $8.11 million was unused and available under this line of credit.

As of March 31, 2014, LA GO GO had borrowed $3.24 million (RMB 20 million) from China Minsheng Bank, with annual interest rate of 6.3% and due in August 2014. This loan is guaranteed by Ever-Glory Apparel and Mr. Kang. 

As of March 31, 2014, Ever-Glory Apparel had borrowed $1.52 million from Ping An Bank, with annual interest rate of 3.25%, due on April 2014, and collateralized by approximately $2.1 million of accounts receivable from wholesale customers. Approximately $1.52 million was repaid subsequent to March 31, 2014.

Total interest expense on bank loans amounted to $707,115 and $791,529 for the three months ended March 31, 2014 and 2013, respectively.