Boston, MA 03/12/2014 (wallstreetpr) – Ever-Glory International Group Inc (NYSEMKT:EVK) functions in the supply chain management, distribution and manufacture of apparel and it is based in China. The company focuses on sportswear, casual wear and outerwear brands for children, men and women. The $118.25 million market capped company operates mainly through subsidiaries and its markets span China, Japan, Europe and the U.S.
The excitement around Chinese stocks and the positive sentiments in the apparel industry are all having nice impact on the company.
Shares of Ever-Glory International Group Inc (NYSEMKT:EVK) rose to a new 52-week high at $8.05 in the last trading. It was a day characterized with high volume trading that ended with the shares gaining 8.99 percent to $8. The stock has generally been a compelling story and improvement in revenue and earnings are expected to continue pushing up the stock price.
NYSE Warning Letter
Ever-Glory International Group Inc (NYSEMKT:EVK) announced last month that it received a warning letter from New York Stock Exchange Regulations for violation of certain listing provisions. The company was found to be at fault in issuance of some common stock shares compensation to five independent directors without shareholder approval.
The company has acknowledged the violation and promised to rectify it. Thus, Ever-Glory International Group Inc (NYSEMKT:EVK) has agreed on shares lockup understanding with the five directors in which they will not sell or transfer shares that they received under the now controversial compensation. The shares will only be open for transaction once shareholder approval – which is expected to come in the next annual meeting later in the year – is secured. But if that approval fails, then the company will have to rescind the controversial compensation shares.
The compensation shares in question were issued between 2008 and 2013.
Bottom line
Following the listing regulation violation that has been pointed out, Ever-Glory International Group Inc (NYSEMKT:EVK) agreed that it will hold off give equity compensation until shareholders give their nod as required.
Business wise, the company is looking to a brighter future as it expands its apparel market globally.
