Concentrations and Risks

3 Months Ended

Mar. 31, 2019

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND RISKS

NOTE 10 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, the allowance for doubtful accounts at March 31, 2019 and December 31, 2018 was $4.5 million and $5.9 million, respectively. 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.  

For the three-month period ended March 31, 2019, the Company had two wholesale customers that represented approximately 26% and 11% of the Company’s revenues. For the three-month period ended March 31, 2018, the Company had one wholesale customer that represented approximately 18% of the Company’s revenues.

For the wholesale business, the Company did not rely on any raw material supplier that represented more than 10% of the total raw material purchases during the three months ended March 31, 2019 and 2018.

For the retail business, the Company relied on three raw material suppliers that represented approximately 36%, 35% and 23% of raw material purchases during the three months ended March 31, 2019.

For the retail business, the Company relied on two raw material suppliers that represented approximately 30% and 23% of raw material purchases during the three months ended March 31, 2018.

For the wholesale business, during the three months ended March 31, 2019, the Company relied on two manufacturers that represented 11% and 10% of finished goods purchases, and during the three months ended March 31, 2018, the Company relied on one manufacturer that represented 14% of finished goods purchases.

For the retail business, the Company did not rely on any supplier that represented more than 10% of the total finished goods purchases during the three months ended March 31, 2019 and 2018.

The Company’s revenues for the three months ended March 31, 2019 and 2018 were earned in the following geographic areas:

	2019		2018
	(In thousands of U.S. Dollars)
Mainland China	$	10,754	$	4,211
Hong Kong China		1,253		5,138
Germany		850		1,866
United Kingdom		800		2,218
Europe-Other		5,229		4,453
Japan		4,938		2,436
United States		4,278		4,934
Total wholesale business		28,102		25,256
Retail business		59,854		67,529
Total	$	87,956	$	92,785