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Ever-Glory to Restate Previously Issued Financial Statements

Add: 2010   Update: 2010/01/29

NANJING, China, Jan. 26 /PRNewswire-Asia-FirstCall/ -- Ever-Glory International Group, Inc. (the "Company," "Ever-Glory") (NYSE Amex: EVK) today announced that the Company's Board of Directors decided to restate its financial statements included in its Quarterly Reports for the period ended March 31, 2009, June 30, 2009 and September 30 2009 for the reason set forth below.

The Company did not properly calculate the derivative effect of certain warrants issued in connection with a 2007 private placement ("Warrants"). The Company intends to file an amendment to the Form 10Q for the period ended September 30, 2009 to make the necessary changes related to the Company's treatment of the Warrants. The Company will also include restated information regarding the quarters ended March 31, 2009 and June 30, 2009 in its Annual Report on Form 10-K for the year ended December 31, 2009. The quantitative impact of the adjustment would result in a decrease of net income and basic earnings per share from approximately $1.9 million to $1.8 million and $0.14 to $0.13, respectively for the three months ended September 30, 2009, and $4.7 million to $4.0 million, and $0.35 to $0.30, respectively for the nine months ended September 30, 2009. The issuance of the Warrants had no quantitative impact on the previously issued statements of cash flows or any discussion on liquidity in the Management's Discussion and Analysis section as this was a non-cash item. The Company believes it is important to note that the adjustment does not relate to the Company's revenues from operations.

As a result of the above, the Company concluded that its financial statements included in its Quarterly Reports on Form 10-Q for the periods ended March 31, 2009, June 30, 2009 and September 30 2009 should no longer be relied upon.

About Ever-Glory International Group, Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel company listed on the American Stock Exchange (now called NYSE Amex, and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. The Company maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as "LA GO GO."

Safe Harbor Statement

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's products and projects, the Company's continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company's latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.