Concentrations and Risks

12 Months Ended

Dec. 31, 2018

Risks and Uncertainties [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 $5.9 million and $5.5 million of doubtful accounts on December 31, 2018 and 2017. 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 one customer represented approximately 20.9% of the total revenues for the year ended December 31, 2018 and had one customer represented approximately 13.5% of the total revenues for the year ended December 31, 2017.

For the Company’s wholesale business during 2018 and 2017, no supplier represented more than 10% of the total raw materials purchased.

For the Company’s retail business, the Company had four suppliers represented approximately 24.0%, 18.2%, 15.1% and 13.9% of the total raw materials purchased, respectively during 2018. For the Company’s retail business, the Company had six suppliers represented approximately 11.7%, 12.0%, 13.3%, 13.9%, 15.7% and 17.1% of the total raw materials purchased, respectively during 2017.

For the wholesale business, the Company relied on one manufacturer for 18.1% and 24.0% of total purchased finished goods during 2018 and 2017, respectively.

For the retail business, the Company did not rely on any single manufacturer for more than 10% of total purchased finished goods during 2018 and 2017.

The Company’s revenues for the years ended December 31, 2018 and 2017 were earned in the following geographic areas:

	2018		2017
	(In thousands of U.S. Dollars)
Mainland China	$	89,269	$	65,811
Hong Kong China		38,106		39,738
Germany		6,748		8,901
United Kingdom		15,460		12,417
Europe-Other		30,747		34,804
Japan		7,583		3,515
United States		30,696		25,050
Total wholesale business		218,609		190,236
Retail business		229,899		225,345
Total	$	448,508	$	415,581

Substantially all of the Company’s long-lived assets are located in the PRC as of December 31, 2018 and 2017.