Ever-Glory (EVK) – Domain registration + web footprint

EVK’s English/investor website is at everglorygroup.com.  The site’s domain registration shows the Registrant Organization as “JIANGSU EVER-GLORY INTERNATIONAL GROUP CORPORATION” and “JiangSu Ever-glory Group Co., Ltd.”.

According to EVK’s 10-K, this does not seem to correspond to any of EVK’s subsidiaries or the parent company (see the subsidiary diagram in the 10-K).

image21i subsidiary chartevk-domain-registration

It does seem to correspond to Jiangsu Ever-Glory International Group Corporation (“Jiangsu Ever-Glory”) [emphasis mine].  The 10-K describes this related-party entity as follows:

Jiangsu Ever-Glory International Group Corporation (“Jiangsu Ever-Glory”)

[…]

Jiangsu Ever-Glory is an entity engaged in importing/exporting, apparel-manufacture, real-estate development, car sales and other activities. Jiangsu Ever-Glory is controlled by Mr. Kang.

This is a little strange.  Normally companies put their own information in their own domain registrations.  (To be fair, you can put in whatever you want for a domain registration.  One benefit of accurate domain registration information is that following ICANN rules can help companies in ownership and trademark disputes over a domain name.)

Internet footprint

The following domains are (somewhat) related to EVK:

  1. everglory.com.cn – This is registered to “江苏华瑞国际实业集团有限公司”.  Google Translates translates this to “Jiangsu Ever-Glory International Industrial Group Co., Ltd.”  This seems to be the website for the related party Jiangsu Ever-Glory mentioned in the 10-K, as the website includes information about car sales.  The 10-K suggests that the publicly-traded EVK is not involved in car sales at all.
  2. everglory.com
  3. lagogo.cn – This is the website for the La Go Go apparel brand.
  4. eg-goldway.com
  5. everglory-dsxfields.com – I have not visited this site because Google Chrome reports that it may contain malware.

I would have liked to see the English-only investor website (everglorygroup.com) prominently link to lagogo.cn.  Normally, investor relations websites have prominent links to the websites for the operating business(es).

Employee email addresses

Angel Zhang is mentioned in multiple press releases and the 8-K filings of those press releases.  One 8-K filing for an August 4, 2008 earnings press release shows her email address “angelzhang [at] ever-glory.com.cn“.  Her email address is connected to the ever-glory.com.cn domain, so it is unclear to me whether or not she also works for the related party company Jiangsu Ever-Glory.  Angel Zhang is listed in the press release as “Vice President of Finance” (presumably of EVK, the publicly-traded company).

Similarly, the same press release shows that the CFO’s email address as “emily [at] ever-glory.com”.  A January 30, 2009 archive.org snapshot of a webpage on the ever-glory.com website talks about Sabaru and Honda car sales.  (The ever-glory.com page is a little weird as its current incarnation mentions its publicly-traded status.  As well, there is a webpage on the domain that mentions a news item related to car sales: “Ever-Glory Subaru Jiangsu 4S Automobile Shop opened to be the main sponsor of the 10th National Game.”)

Lagogo.cn

La Go Go’s About page can be found at https://web.archive.org/web/20150623215058/http://www.lagogo.cn/Brand.asp
Everglory.com.cn has a Group Profile page at https://web.archive.org/web/20150503020301/http://ever-glory.com.cn/corp.asp?col_id=900

Both of these pages contain the same first paragraph:

江苏华瑞国际集团创办于1993年11月17日,秉承“敬业创新、追求卓越、共同发展、回报社会”的华瑞信念,不断发展壮大,目前已成为拥有服装供应链管理、品牌零售连锁经营、电子商务、针纺织科技、汽车销售与服务、房地产、生态休闲养生、高科技新材料和创业投资等多个产业的多元化综合型投资控股集团。

Google Translate provides the following (low-quality) translation:

Jiangsu Ever-Glory International Group was founded in November 17, 1993, adhering to the “dedicated innovation, the pursuit of excellence and common development, social returns” Huarui faith, continue to grow and develop, has now become a clothing supply chain management, brand and retail chain operations , e-commerce, textile-technology, automotive sales and services, real estate, leisure and health ecology, new materials and high-tech venture capital industry and other diversified plurality of integrated investment holding group.

The About page at LaGoGo.cn seems to suggest that La Go Go is owned by the related party Jiangsu Ever-Glory International Group.

Auditor letter

The auditor letters in the YE2012, 2014, and 2014 10-Ks contain the following paragraph:

The Company has significant transactions and relationships with related parties, including entities controlled by the Company’s Chairman and Chief Executive Officer and by the Company’s major shareholder, which are described in Note 13 to the consolidated financial statements.  Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist.

*Disclosure:  No position.

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4 thoughts on “Ever-Glory (EVK) – Domain registration + web footprint

  1. My thought about this is before EVK’s IPO, it is a subsidiary of JiangSu Ever-Glory. After IPO, of course it has been removed from its parent. But they are still sharing the same management. In fact, I think it is still running as a subsidiary of JiangSu Ever-Glory. Thus you can see all the domains, emails are messed up. Which doesn’t look good. However, this itself does’t necessarily make it a fraud either. JiangSu Ever-Glory owns a higher-end women fashion brand and doing all the different things mentioned in its website. The CEO controls both companies I believe.

    • QUOTE: I think it is still running as a subsidiary of JiangSu Ever-Glory

      The SEC filings state that EVK is its own company (e.g. see the subsidiary diagram), isn’t involved in car sales, and that the other company is a related party.

      So I don’t find that explanation satisfying.

      • Don’t get me wrong, I am not a fun of this company :). My point is not that EVK belongs to JiangSu Ever-Glory. It is a fraud if that happens. But they probably just run it like that. They probably share human resources and offices and building etc I guess. Which is not good of course. On accounting basis, they definitely separated with each other. There are some other interesting aspect of the company you might notice: the CEO seems transferred/sold quite some shares(5.6m) to its partner Yan, Xiao Dong at 1998. Last year many of those shares(83%) were transferred/sold back to the CEO’s son. The price is not disclosed.

        Early this year I had a very small position of this company and later sold it when I found their same store sales is down in Q1 2015. I found I don’t really understand the quick changing fashion retail business. Also those transactions above doesn’t make feels comfortable. BTW, I really appreciate your hard work on the blog.

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