Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 11 STOCKHOLDERS’ EQUITY

Stock Issued to Independent Directors

On August 15, 2014, the Company issued an aggregate of 2,055 shares of its common stock to three of the Company’s independent directors as compensation for their services in the third and fourth quarters of 2013. The shares were valued at $4.91 per share, which was the average market price of the common stock for the five days before the grant date.

On August 15, 2014, the Company issued an aggregate of 798 shares of its common stock to two of the Company’s independent directors as compensation for their services in the first and second quarters of 2014. The shares were valued at $6.22 per share, which was the average market price of the common stock for the five days before the grant date.

On July 29, 2015, the Company issued an aggregate of 854 shares of its common stock to three of the Company’s independent directors as compensation for their services in the third and fourth quarters of 2014. The shares were valued at $5.91 per share, which was the average market price of the common stock for the five days before the grant date.

On July 29, 2015, the Company issued an aggregate of 920 shares of its common stock to two of the Company’s independent directors as compensation for their services in the first and second quarters of 2015. The shares were valued at $5.39 per share, which was the average market price of the common stock for the five days before the grant date.

Statutory Reserve

Subsidiaries incorporated in China are required to make appropriations to reserve funds, comprising the statutory surplus reserve, statutory public welfare fund and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the People’s Republic of China ( “PRC GAAP”). Appropriations to the statutory surplus reserve are to be at least 10% of the after tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital.  Appropriations to the statutory public welfare fund are 10% of the after tax net income determined in accordance with PRC GAAP. The statutory public welfare fund is established for the purpose of providing employee facilities and other collective benefits to the employees and is non-distributable other than in liquidation. Appropriations to the surplus reserve are made at the discretion of the Board of Directors. Effective January 1, 2006, the Company is only required to contribute to one statutory reserve fund at 10% of net income after tax per annum, and any contributions are not to exceed 50% of the respective companies’ registered capital.

As of December 31, 2015, New-Tailun and Catch-Luck had fulfilled the 50% statutory reserve contribution requirement; therefore no further transfers are required for those entities. In 2015, Goldenway appropriated $0.2 million, Ever-Glory Apparel appropriated $0.6 million, Shanghai La GO GO appropriated $0.4 million, Jiangsu La GO GO appropriated $0.8 million, Tianjin La GO GO appropriated $0.8 million and Huirui appropriated $0.8 million to the statutory reserve.