Concentrations and Risks

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015. 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 no customer represented more than 10% of the total revenues for the year ended December 31, 2016 and 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.

For the Company’s wholesale business during 2016 and 2015, 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 2016 and 2015.

For the wholesale business, the Company relied on one manufacturer for 25% of total purchased finished goods during 2016 and 2015.

For the retail business, the Company did not rely on any single manufacturer for more than 10% of total purchased finished goods during 2016 and 2015.

The Company’s revenues for the years ended December 31, 2016 and 2015 were earned in the following geographic areas:

	2016		2015
	(In thousands of U.S. Dollars)
Mainland China	$	61,589	$	81,283
Hong Kong China		22,853		25,411
Germany		8,167		13,425
United Kingdom		14,865		16,098
Europe-Other		46,266		29,556
Japan		11,374		13,039
United States		23,118		17,777
Total wholesale business		188,232		196,589
Retail business		204,434		224,800
Total	$	392,666	$	421,389

Substantially all of the Company’s long-lived assets were attributable to the PRC as of December 31, 2016 and 2015.