Concentrations and Risks

12 Months Ended

Dec. 31, 2015

Concentrations and Risks [Abstract]

CONCENTRATIONS AND RISKS

NOTE 14 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, 2015 and 2014. 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 11.6% and 10.1% of the Company’s revenues, respectively for the year ended December 31, 2015 and had one customer that represented 11.7% of the Company’s revenues for the year ended December 31, 2014.

For the Company’s wholesale business during 2015 and 2014, no supplier represented more than 10% of the total raw materials purchased.

For the Company’s retail business, the Company had no supplier represented more than 10% of the total raw materials purchased during 2015 and 2014.

For the wholesale business, the Company relied on one manufacturer for 25% of total purchased finished goods during 2015. The Company relied on one manufacturer for 17% of total purchased finished goods during 2014.

For the retail business, the Company did not rely on any single manufacturer for more than 10% of total purchased finished goods during 2015 and 2014.

The Company’s revenues for the years ended December 31, 2015 and 2014 were earned in the following geographic areas:

	2015		2014
	(In thousands of  U.S. Dollars)
The People’s Republic of China	$	106,694	$	98,082
Germany		13,425		27,077
United Kingdom		16,098		22,109
Europe-Other		29,556		33,264
Japan		13,039		17,877
United States		17,777		17,063
Total wholesale business		196,589		215,472
Retail business		224,800		244,669
Total	$	421,389	$	460,141

Substantially all of the Company’s long-lived assets were attributable to the PRC as of December 31, 2015 and 2014.