Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 20, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 000-32585 | |
Entity Registrant Name | SUNRISE REAL ESTATE GROUP, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-2713701 | |
Entity Address, Address Line One | No. 18, Panlong Road | |
Entity Address, City or Town | Shanghai | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 201702 | |
City Area Code | + 86-21 | |
Local Phone Number | 6067-3830 | |
Title of 12(b) Security | Common Stock, Par Value: $0.01 | |
Trading Symbol | srre | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 68,691,925 | |
Entity Central Index Key | 0001083490 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 17,841,207 | $ 40,369,612 |
Restricted cash (Note 3) | 31,310,574 | 56,051,055 |
Transactional financial assets (Note 4) | 29,383,315 | 25,012,736 |
Accounts receivable | 45,502 | 77,464 |
Real estate property under development (Note 5) | 183,090,858 | 166,236,339 |
Amount due from an unconsolidated affiliate | 17,992,544 | 549,986 |
Other receivables and deposits, net (Note 6) | 66,422,667 | 14,596,243 |
Total current assets | 346,086,667 | 302,893,435 |
Property and equipment, net (Note 7) | 1,279,952 | 1,384,776 |
Investment properties, net (Note 8) | 26,767,932 | 27,275,677 |
Deferred tax assets (Note 18) | 1,246,995 | 955,373 |
Investment in an unconsolidated affiliate (Note 9) | 13,744,299 | 13,610,330 |
Goodwill (Note 11) | 1,759,696 | 1,690,029 |
Other investments (Note 10) | 703,535 | 696,677 |
Total assets | 391,589,076 | 348,506,297 |
Current liabilities | ||
Promissory notes payable (Note12) | 1,547,676 | 1,532,591 |
Accounts payable (Note 15) | 17,205,345 | 20,448,001 |
Amounts due to directors (Note 13) | 517,507 | 23,409,364 |
Amount due to an affiliate (Note 16) | 32,373,610 | 31,438,576 |
Customer deposits (Note 17) | 159,840,214 | 116,163,946 |
Other payables and accrued expenses (Note 14) | 8,241,158 | 8,586,675 |
Other taxes payable | 184,748 | 452,528 |
Income taxes payable (Note 18) | 857,847 | 1,028,220 |
Total current liabilities | 220,768,105 | 203,059,901 |
Long-term income tax payable (Note 18) | 2,415,666 | 2,588,213 |
Deferred government subsidy (Note 19) | 5,129,837 | 5,079,835 |
Total liabilities | 228,313,608 | 210,727,949 |
Commitments and contingencies (Note 20) | ||
Shareholders' equity | ||
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 68,691,925 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 686,919 | 686,919 |
Additional paid-in capital | 7,570,008 | 7,570,008 |
Statutory reserve (Note 21) | 3,986,618 | 3,986,618 |
Retained Earnings | 124,285,908 | 100,291,529 |
Accumulated other comprehensive income | 22,650,016 | 22,981,737 |
Total Equity of Sunrise Real Estate Group, Inc. | 159,179,469 | 135,516,811 |
Non-controlling interests | 4,095,999 | 2,261,537 |
Total shareholders' equity | 163,275,468 | 137,778,348 |
Total liabilities and shareholders' equity | $ 391,589,076 | $ 348,506,297 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 68,691,925 | 68,691,925 |
Common stock, shares outstanding | 68,691,925 | 68,691,925 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
Net revenues | $ 5,912,564 | $ 388,298 | $ 8,366,933 | $ 721,983 |
Cost of revenues | (5,129,429) | (538,453) | (7,430,487) | (1,160,969) |
Gross profit (loss) | 783,135 | (150,155) | 936,446 | (438,986) |
Operating expenses | (813,429) | (1,153,284) | (1,912,086) | (2,348,025) |
General and administrative expenses | (748,504) | (733,384) | (1,615,702) | (1,256,803) |
Operating profit (loss) | (778,798) | (2,036,823) | (2,591,342) | (4,043,814) |
Other income (expenses) | ||||
Interest income | 252,810 | 99,860 | 523,474 | 159,777 |
Interest expense | 0 | 16 | 0 | 0 |
Equity in net gain (loss) of an affiliate | 33,578,636 | 131,814 | 33,109,692 | (61,988) |
Other income (loss), net | 356,327 | 244,532 | 502,985 | 428,937 |
Total other Income | 34,187,773 | 476,222 | 34,136,151 | 526,726 |
Income (loss) before income taxes | 33,408,975 | (1,560,601) | 31,544,809 | (3,517,088) |
Income tax benefit (expense) | (775,912) | 133,433 | (603,593) | 301,551 |
Net income (loss) | 32,633,063 | (1,427,168) | 30,941,216 | (3,215,537) |
Less: Net (income) loss attributable to non-controlling interests | (328,054) | 218,577 | (77,644) | 479,153 |
Net income attributable to shareholders of Sunrise Real Estate Group, Inc. | 32,305,009 | (1,208,591) | 30,863,572 | (2,736,384) |
Net income | 32,633,063 | (1,427,168) | 30,941,216 | (3,215,537) |
Other comprehensive income Foreign currency translation adjustment | 2,491,395 | (1,810,986) | 1,425,097 | (4,004,861) |
Discontinuation of the equity method for an investment | 0 | 0 | 0 | 0 |
Comprehensive income | 35,124,458 | (3,238,154) | 32,366,313 | (7,220,398) |
Less: Comprehensive income attributable to non-controlling interests | (392,605) | 64,890 | (1,834,462) | 2,120,392 |
Total comprehensive income attributable to shareholders | $ 34,731,853 | $ (3,173,264) | $ 30,531,851 | $ (5,100,006) |
Earnings per share - basic and fully diluted | $ 0.47 | $ (0.02) | $ 0.45 | $ (0.04) |
Weighted average common shares outstanding - Basic and fully diluted | 68,691,925 | 68,691,925 | 68,691,925 | 68,691,925 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserve | Retained Earnings (Deficits) | Accumulated Other Comprehensive Income | Non-controlling Interests | Total |
Balance at Dec. 31, 2019 | $ 686,919 | $ 7,570,008 | $ 3,194,604 | $ 105,326,252 | $ 13,676,579 | $ 3,732,290 | $ 134,186,652 |
Balance (in shares) at Dec. 31, 2019 | 68,691,925 | ||||||
Profit (loss) for the year | (2,736,384) | (479,153) | (3,215,537) | ||||
Discontinuation of the equity method for an investment | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital contribution from non-controlling interests of new consolidated subsidiaries | 0 | 0 | 0 | 0 | 0 | ||
Translation of foreign operations | 0 | 0 | 0 | 0 | (2,363,622) | (1,641,239) | (4,004,861) |
Balance at Jun. 30, 2020 | $ 686,919 | 7,570,008 | 3,194,604 | 102,589,868 | 11,312,957 | 1,611,898 | 126,966,254 |
Balance (in shares) at Jun. 30, 2020 | 68,691,925 | ||||||
Balance at Mar. 31, 2020 | $ 686,919 | 7,570,008 | 3,194,604 | 103,724,776 | 11,554,847 | 3,399,571 | 130,130,725 |
Balance (in shares) at Mar. 31, 2020 | 68,691,925 | ||||||
Profit (loss) for the year | (1,134,908) | (218,577) | (1,353,485) | ||||
Discontinuation of the equity method for an investment | 0 | ||||||
Translation of foreign operations | (241,890) | (1,569,096) | (1,810,986) | ||||
Balance at Jun. 30, 2020 | $ 686,919 | 7,570,008 | 3,194,604 | 102,589,868 | 11,312,957 | 1,611,898 | 126,966,254 |
Balance (in shares) at Jun. 30, 2020 | 68,691,925 | ||||||
Balance at Dec. 31, 2020 | $ 686,919 | 7,570,008 | 3,986,618 | 100,291,529 | 22,981,737 | 2,261,537 | 137,778,348 |
Balance (in shares) at Dec. 31, 2020 | 68,691,925 | ||||||
Profit (loss) for the year | 30,863,572 | 77,644 | 30,941,216 | ||||
Discontinuation of the equity method for an investment | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital contribution from non-controlling interests of new consolidated subsidiaries | 0 | 0 | 0 | 0 | 0 | ||
Dividend | (6,869,193) | (6,869,193) | |||||
Translation of foreign operations | 0 | 0 | 0 | 0 | (331,732) | 1,756,818 | 1,425,097 |
Balance at Jun. 30, 2021 | $ 686,919 | 7,570,008 | 3,986,618 | 124,285,908 | 22,650,016 | 4,095,999 | 163,275,468 |
Balance (in shares) at Jun. 30, 2021 | 68,691,925 | ||||||
Balance at Mar. 31, 2021 | $ 686,919 | 7,570,008 | 3,986,618 | 98,896,316 | 20,223,172 | 3,703,394 | 135,066,427 |
Balance (in shares) at Mar. 31, 2021 | 68,691,925 | ||||||
Profit (loss) for the year | 32,258,785 | 328,054 | 32,586,839 | ||||
Discontinuation of the equity method for an investment | 0 | 0 | |||||
Dividend | (6,869,193) | (6,869,193) | |||||
Translation of foreign operations | $ 0 | 0 | 0 | 0 | 2,426,844 | 64,551 | (6,869,193) |
Balance at Jun. 30, 2021 | $ 686,919 | $ 7,570,008 | $ 3,986,618 | $ 124,285,908 | $ 22,650,016 | $ 4,095,999 | $ 163,275,468 |
Balance (in shares) at Jun. 30, 2021 | 68,691,925 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 30,941,216 | $ (3,215,537) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 3,354,029 | 2,285,233 |
Loss (Gain) on disposal of property, plant and equipment | 6,577 | 2,506 |
Equity loss (gain) from investments in unconsolidated affiliate | (33,901,955) | |
Changes in assets and liabilities | ||
Accounts receivable | 32,662 | (2,544) |
Real estate property under development | (15,189,068) | (8,463,612) |
Customer Deposits | 42,451,371 | 58,645,675 |
Amount due from unconsolidated affiliates | 653,333 | (8,680) |
Other receivables and deposits | (51,583,755) | (1,496,603) |
Deferred tax assets | (281,677) | (302,139) |
Net cash from directors | (23,077,991) | (814,352) |
Accounts payable | (3,437,334) | 1,142,277 |
Other payables and accrued expenses | (429,214) | 393,087 |
Other taxes payable | (271,713) | 16,926 |
Income taxes payable | (352,695) | (338,827) |
Net cash provided by (used in) operating activities | (51,086,214) | 47,843,410 |
Cash flows from investing activities | ||
Purchases of property and equipment | (29,144) | (139,333) |
Net Cash from Transactional financial assets | (4,116,473) | 711,363 |
Acquisition of investment | 0 | (1,412,529) |
Dividend distribution of affiliate | 16,469,255 | |
Net cash provided by (used in) investing activities | 12,323,638 | (840,499) |
Cash flows from financing activities | ||
Restricted cash | 25,243,758 | (30,259,077) |
Dividends paid to noncontrolling interests | (6,869,193) | 0 |
Net cash provided (used in) financing activities | 18,374,565 | (30,259,077) |
Effect of exchange rate changes on cash and cash equivalents | (2,140,394) | (3,533,568) |
Net increase in cash and cash equivalents | (22,528,405) | 13,210,266 |
Cash and cash equivalents at beginning of period | 40,369,612 | 15,900,753 |
Cash and cash equivalents at end of period | 17,841,207 | 29,111,019 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 345,095 | 353,176 |
Interest paid | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Sunrise Real Estate Group, Inc. “SRRE” was incorporated in Texas on October 10, 1996 under the name of Parallax Entertainment, Inc. SRRE together with its subsidiaries and equity investment described below is collectively referred to as “the Company”, “we”, “our” or “us”. The Company is primarily engaged in the provision of property brokerage services, which include property marketing, leasing and management services; and real estate development in the People’s Republic of China (the “PRC”). As of June 30, 2021, the Company has the following major subsidiaries and equity investment. % of Ownership Relationship Date of Place of held by the with the Principal Company Name Incorporation Incorporation Company Company Activity Sunrise Real Estate Development Group, Inc. (CY-SRRE) April 30, 2004 Cayman Islands 100% Subsidiary Investment holding Lin Ray Yang Enterprise Limited (“LRY”) November 13, 2003 British Virgin Islands 100% Subsidiary Investment holding Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100% Subsidiary Property brokerage services Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”) February 5, 2004 PRC 100% Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25% 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75% Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34% 2 Subsidiary Real estate development Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”) November 10, 2010 PRC 60% Subsidiary Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100% Subsidiary Property brokerage services Shanghai Rui Jian Design Company Limited (“SHRJ”) August 15, 2011 PRC 100% Subsidiary Property brokerage services Linyi Rui Lin Construction and Design Company Limited (“LYRL”) March 6, 2012 PRC 100% Subsidiary Investment holding Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) December 28, 2009 PRC 49% Equity investment Real estate development Zhong Ji Pu Fa Real Estate Company Limited (SHGXL) March 13, 2012 PRC 100% Equity investment Real estate development. Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91% 3 Equity investment Import and export trading Shanghai Hui Tian (“SHHT”) July 25, 2014 PRC 100% Subsidiary Investment holding Huai’an Zhanbao Industrial Co., Ltd. (“HAZB”) December 6, 2018 PRC 78.46% 4 Subsidiary Investment holding Huai’an Tianxi Real Estate Development Co., Ltd (“HATX”) October, 2018 PRC 78.46% 4 Subsidiary Investment holding 1 After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY: 49% , SHXJY: 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE): 12.5%, totaling 75.25% equity interest in SZSY. 2 The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that entitles the Company to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase. 3 In December 2019, SHDEW issued an employee stock bonus where its employees received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% . 4 We established HATX for real estate development in Huai’an through HAZB, of which we have 78.46% ownership. The accompanying condensed consolidated balance sheet as of December 31, 2020, which has been derived from the audited consolidated financial statements and the accompanying unaudited condensed consolidated financial statements, has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations and the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, these condensed consolidated financial statements reflect all adjustments which are of a normal recurring nature and which are necessary to present fairly the financial position of Sunrise Real Estate as of June 30, 2021 and the results of operations for the six months ended June 30, 2021 and 2020, and the cash flows for the six months ended June 30, 2021 and 2020. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2020. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results which may be expected for the entire fiscal year. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Principles of Consolidation The condensed consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation. Investments in business entities, in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records and the financial statements are maintained and prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliate in China is Renminbi (“RMB”) and their financial records and statements are maintained and prepared in RMB. Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. Gains and losses resulting from foreign currency transactions are included in the consolidated statement of operations. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into each company’s denominated currency at period-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations. The financial statements of the Company’s operations based outside of the United States have been translated into U.S. dollars in accordance with ASC830. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into U.S. dollars, period-end exchange rates are applied to the condensed consolidated balance sheets, while average exchange rates as to revenues and expenses are applied to consolidated statements of operations. The effect of foreign currency translation adjustments is included as a component of accumulated other comprehensive income in shareholders’ equity. The exchange rates as of June 30, 2021 and December 31, 2020 are $1: RMB6.4601 and $1: RMB6.5249, respectively. The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation. Real Estate Property under Development Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs. Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters for the purpose of developing villa-style residential housing. The LYSY project has divided into three phases. Phase 1 has completed construction of 121 units in May 2015 and sold 119 units out of all 121 units at the end of July 25, 2021. Phase 2 was divided into north and south area and completed construction of 88 units at the end of 2020. 16 units and 71 units out of all 88 units have been sold and pre-sold during phase 2 by the end of July 25, 2021. Phase 3 began construction in first quarter of 2021. In September 2020, the Company expanded the Linyi project by purchasing additional 54,312 square meters in the amount of 228 million RMB for future development. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters (“sqm”). In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 25, 2021, the Company pre-sold 673 out of 679 units of the first phase and pre-sold 364 out of 873 of the second phase. Long Term Investments The Company accounts for long term investments in equities as follows: Investment in Unconsolidated Affiliates Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company did not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in the value of the investment that is not temporary. The Company did not record any impairment losses in any of the periods reported. Other Investments Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the measurement alternative which is measured at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the measurement alternative method in the case of the investment in SHDEW and any decline in value is included in impairment of cost of the investment. Government Subsidies Government subsidies include cash subsidies received by the Company’s subsidiaries from local governments in the People’s Republic of China (“PRC”). In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue. Government subsidy was received in 2012 and the company recorded it as deferred government subsidy in balance sheets. As of June 30, 2021, and December 31, 2020, the deferred government subsidy amounted to $5,129,837 and $5,079,835, respectively. The subsidy was used to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date. Revenue Recognition Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset. All revenues represent gross revenues less sales and business tax. ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. Net Earnings (Loss) per Common Share The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard since January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new accounting standard update which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The update eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and introduces a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted this new accounting standard on January 1, 2020, using the prospective method, and the adoption did not have a material impact on our consolidated financial statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018-18”). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606, “Revenue from Contracts with Customers” when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as customer revenue if the counterparty is not a customer for that transaction. On January 1, 2020, we adopted this standard and applied it retrospectively to January 1, 2018 when we initially adopted Topic 606. The adoption did not have an impact on our consolidated financial statements. New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2021 | |
RESTRICTED CASH | |
RESTRICTED CASH | NOTE 3 – RESTRICTED CASH The Company is required to maintain certain deposits with the bank for those home buyers that has applied for a housing loan from their bank. This deposit is a percentage to each home buyer’s bank loan for the purpose of purchasing in our project. Once we complete the handover to the buyer, these deposits become unrestricted. As of June 30, 2021, and December 31, 2020, the Company held cash deposits of $31,310,574 and $56,051,055, respectively. |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
TRANSACTIONAL FINANCIAL ASSETS | |
TRANSACTIONAL FINANCIAL ASSETS | NOTE 4 – TRANSACTIONAL FINANCIAL ASSETS As of June 30, 2021, we have $29,383,315 invested in bank wealth management investment products. The investments are short termed with maturity periods and can be rolled into a maturity date of our choosing or automatically rolled into subsequent maturity period. The annualized rate of return may range from 3.15% to 4.4% depending on the amount and time period invested. |
REAL ESTATE PROPERTY UNDER DEVE
REAL ESTATE PROPERTY UNDER DEVELOPMENT | 6 Months Ended |
Jun. 30, 2021 | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | NOTE 5 – REAL ESTATE PROPERTY UNDER DEVELOPMENT Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 square meters for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012. We sold 119 of 121 Phase 1 villas and sold 16 units and pre-sold 71 villas out of all 88 units in Phase 2 as of July 25, 2021. In the first quarter of 2019, we purchased the property of HATX with the land use rights. As of June 30, 2021, land use rights included in real estate property under development totaled $174,474,820. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters. In December 2018 we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and tis land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a GFA of 82,218 sqm totaling 679 units, and started its second phase in middle 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 25, 2021, the Company pre-sold 673 out of 679 units of first phase and pre-sold 364 out of 873 of second phase. |
OTHER RECEIVABLES AND DEPOSITS,
OTHER RECEIVABLES AND DEPOSITS, NET | 6 Months Ended |
Jun. 30, 2021 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
OTHER RECEIVABLES AND DEPOSITS, NET | NOTE 6 - OTHER RECEIVABLES AND DEPOSITS, NET June 30, December 31, 2021 2020 Advances to staff $ 28,577 37,573 Rental deposits 792,870 818,868 Prepaid expense 49,099,885 53,558 Prepaid tax 12,461,677 9,777,311 Other receivables 4,039,658 3,908,933 $ 66,422,667 $ 14,596,243 Other receivables and deposits as of June 30, 2021 and December 31, 2020 were stated net of allowance for doubtful accounts of $508,773 and $503,814, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 – PROPERTY AND EQUIPMENT , June 30, December 31, 2021 2020 Furniture and fixtures $ 275,564 $ 272,878 Computer and office equipment 246,252 210,961 Motor vehicles 727,257 819,945 Properties 2,341,552 2,318,728 3,590,625 3,622,512 Less: Accumulated depreciation (2,310,673) (2,237,736) $ 1,279,952 $ 1,384,776 Depreciation and amortization expense for property and equipment amounted to $104,824 and $78,408 for the six months ended June 30, 2021 and 2020, respectively. |
INVESTMENT PROPERTIES, NET
INVESTMENT PROPERTIES, NET | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT PROPERTIES, NET | |
INVESTMENT PROPERTIES, NET | NOTE 8 – INVESTMENT PROPERTIES, NET June 30, December 31, 2020 2019 Investment properties $ 35,967,063 $ 35,616,482 Less: Accumulated depreciation (9,199,131) (8,340,805) $ 26,767,932 $ 27,275,677 Depreciation and amortization expense for investment properties amounted to $3,212,964 and $2,172,415 for the six months ended June 30, 2021 and 2020, respectively. |
INVESTMENT IN AND AMOUNT DUE FR
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | |
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | NOTE 9 – INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE The investments in unconsolidated affiliates primarily consist of SHDEW (19.91%). As of June 30, 2021, the investment amount in SHDEW was $13,713,345. SHDEW was established in June 2013 as a skincare and cosmetic company. SHDEW’s online Wechat stores had a membership of over ten million members as of June 30, 2021. SHDEW is developing its own skincare products. SHDEW sells products under its own brands as well as the products of third parties. The products include skincare, cosmetics, personal care products such as soaps, shampoos, skin care devices and children’s apparel. SHDEW is improving its own online shopping platform where consumers can purchase its cosmetics and skincare products as well as products imported into China. The online shopping platform has been in operation since 2017. |
OTHER INVESTMENTS, NET
OTHER INVESTMENTS, NET | 6 Months Ended |
Jun. 30, 2021 | |
OTHER INVESTMENTS, NET | |
OTHER INVESTMENTS, NET | NOTE 10 - OTHER INVESTMENTS, NET According to ASU 2016-01, where the Company has no significant influence, the investment is classified as other investments in the balance sheet and is carried under the measurement alternative method. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of June 30, 2021 and December 31, 2020, the carrying amount of the Company’s measurement alternative investments was $703,535 and $696,677, respectively. The Company performs impairment assessment of its investments under the measurement alternative whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. Impairment charges in connection with the measurement alternative investments of nil were recorded in others, net in the Consolidated Statements of Operations and Comprehensive Income/(Loss) for the years ended June 30, 2021 and 2020, respectively. In June 2020, SHSY purchased 7.0915% of Taobuting Media Limited (“TBT”). TBT is a media company that provides content on live streaming platforms such as Douyin (China’s version of Tik Tok). On April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group for 22.17 million RMB ($3,398,213). |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2021 | |
GOODWILL | |
GOODWILL | NOTE 11 - GOODWILL On April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group for 22.17 million RMB (approximately $3,398,213). As of June 30, 2021, the amount of $1,759,696 of goodwill represents the difference between the investment cost and book value. |
PROMISSORY NOTES PAYABLE
PROMISSORY NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
PROMISSORY NOTES PAYABLE | |
PROMISSORY NOTES PAYABLE | NOTE 12– PROMISSORY NOTES PAYABLE The promissory notes payable consists of the following unsecured notes to unrelated parties. Included in the balances are promissory notes with outstanding principal and unpaid interest of an aggregate of $1,547,676 and $1,532,591 as of June 30, 2021 and December 31, 2020, respectively. The promissory note with a principal as of June 30, 2021 amounting to $773,838 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2021, and December 31, 2020, the outstanding principal and unpaid interest related to this promissory note amounted to $773,838 and $766,295, respectively. The promissory note with a principal as of June 30, 2021 amounting to $773,838 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2021, and December 31, 2020, the outstanding principal and unpaid interest related to this promissory note amounted to $773,838 and $766,295, respectively. For the six months ended June 30, 2021, the interest expense related to these promissory notes was $NIL. |
AMOUNTS DUE TO DIRECTORS
AMOUNTS DUE TO DIRECTORS | 6 Months Ended |
Jun. 30, 2021 | |
Directors [Member] | |
AMOUNTS DUE TO DIRECTORS | NOTE 13– AMOUNTS DUE TO DIRECTORS June 30, December 31, 2021 2020 Lin Chi-Jung $ 495,075 $ 23,387,151 Lin Hsin-Hung 22,432 22,213 $ 517,507 $ 23,409,364 (a) The balances due to Lin Chi-Jung consist of temporary advances. The balances are unsecured, interest-free and have no fixed term of repayment. (b) The balances due to Lin Hsin-Hung are unsecured, interest-free and have no fixed term of repayment. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2021 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 14- OTHER PAYABLES AND ACCRUED EXPENSES June 30, December 31, 2021 2020 Accrued staff commission and bonus $ 270,768 $ 241,718 Rental deposits received 120,915 92,700 Bid bond 92,861 209,965 Dividends payable to non-controlling interest 208,247 206,217 Other payables 7,548,368 7,836,075 $ 8,241,158 $ 8,586,675 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | NOTE 15 - ACCOUNT PAYABLE As of June 30, 2021, and December 31, 2020, the balances of accounts payable were $17,205,345 and $20,448,001 respectively. The balance of accounts payable as of June 30, 2021 included unpaid development fee of Linyi project of $2,021,108 and HATX project of $ 13,896,763. The remaining balance was due to agents of the operating business. |
AMOUNT DUE TO AFFILIATES
AMOUNT DUE TO AFFILIATES | 6 Months Ended |
Jun. 30, 2021 | |
Due To Affiliate [Member] | |
Related Party Transaction [Line Items] | |
AMOUNT DUE TO AFFILIATES | NOTE 16 – AMOUNT DUE TO AFFILIATES As of June 30, 2021, the amount due to Shanghai Shengji (“SHSJ”), a shareholder of HATX, was $31,829,416 and JXSY was $544,194, was an intercompany transfer for day-to-day operations. |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
CUSTOMER DEPOSITS | |
CUSTOMER DEPOSITS | NOTE 17 – CUSTOMER DEPOSITS Customer deposits consisted of the sales from real estate development project (the Linyi project and the HATX project) which cannot be recognized as revenue at the accounting period and deposits received for rental. The Linyi project started pre-sales in November 2013 and in 2019, the Project recognized its revenue along with customer deposit; as of June 30, 2021, the pre-sales amounted to $20,856,757. The HATX project started pre-sales in December 2019; as of June 30, 2021 the pre-sales amounted to $138,972,330. |
INCOME TAXES PAYABLE
INCOME TAXES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES PAYABLE | |
INCOME TAXES PAYABLE | NOTE 18 – INCOME TAX PAYABLE The 2017 Tax Act was enacted on December 22, 2017. Due to the complexities involved in the accounting for the 2017 Tax Act, the SEC issued SAB 118, which provides guidance on the application of US GAAP for income taxes in the period of enactment. SAB 118 requires companies to include in their financial statements a reasonable estimate of the impact of the 2017 Tax Act, to the extent such an estimate has been determined. As a result, our financial results reflect the income tax effects of the 2017 Tax Act for which the accounting is complete, as well as provisional amounts for those impacts for which the accounting is incomplete but a reasonable estimate could be determined. |
DEFERRED GOVERNMENT SUBSIDY
DEFERRED GOVERNMENT SUBSIDY | 6 Months Ended |
Jun. 30, 2021 | |
DEFERRED GOVERNMENT SUBSIDY | |
DEFERRED GOVERNMENT SUBSIDY | NOTE 19 – DEFERRED GOVERNMENT SUBSIDY Deferred government subsidy consists of the cash subsidy provided by the local government. Government subsidy was received in 2012, and as of June 30, 2021 and December 31, 2020, the Company’s deferred government subsidy amounted to $5,129,837 and $5,079,835, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project and is repayable if the Company fails to complete the subsidized property development project before the agreed date. The entire government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 - COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company leases certain of its office properties under non-cancellable operating lease arrangements. Payments under operating leases are expensed on a straight-line basis over the periods of their respective terms, and the terms of the leases do not contain rent escalation, or contingent rent, renewal, or purchase options. There are no restrictions placed upon the Company by entering into these leases. Rental expenses under operating leases for the six months ended June 30, 2021 and 2020 were $28,288 and $18,165, respectively. As of June 30, 2021, the Company had the following operating lease obligations. Amount Within one year $ 240,259 Two to five years — $ 240,259 |
STATUTORY RESERVE
STATUTORY RESERVE | 6 Months Ended |
Jun. 30, 2021 | |
STATUTORY RESERVE | |
STATUTORY RESERVE | NOTE 21 – STATUTORY RESERVE According to the relevant corporation laws in the PRC, a PRC company is required to transfer at least 10% of its profit after taxes, as determined under accounting principles generally accepted in the PRC, to the statutory reserve until the balance reaches 50% of its registered capital. The statutory reserve can be used to make good on losses or to increase the capital of the relevant company. According to the Law of the PRC on Enterprises with Wholly-Owned Foreign Investment, the Company PRC’s subsidiaries are required to make appropriations from after-tax profits as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion reserve and (iii) a staff bonus and welfare fund. A wholly-owned PRC subsidiary is not required to make appropriations to the enterprise expansion reserve but annual appropriations to the general reserve are required to be made at 10% of the profit after tax as determined under PRC GAAP at each year-end, until such fund has reached 50% of its respective registered capital. The staff welfare and bonus reserve are determined by the board of directors. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the stockholders, convert the general reserve into capital. The staff welfare and bonus reserve are used for the collective welfare of the employees of the subsidiary. The enterprise expansion reserve is for the expansion of the subsidiary operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiary are considered as restricted net assets and are not distributable as cash dividends. As of June 30, 2021, and December 31, 2020, the Company’s statutory reserve fund was $3,986,618 and $3,986,618, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 22 - SEGMENT INFORMATION The Company’s Chief Executive Officer and Chief Financial Officer have been identified as the chief operating decision makers. The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, and income from operations. The following tables show the operations of the Company’s operating segments: Three Months Ended June 30, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 134,213 $ 5,778,351 $ — $ — $ 5,912,564 Cost of revenues (184,496) (4,944,933) — — (5,129,429) Gross profit (50,283) 833,418 — — 783,135 Operating expenses 65,205 (878,634) — — (813,429) General and administrative expenses (433,751) (308,919) — (5,834) (748,504) Operating loss (418,829) (354,135) (5,834) (778,798) Other income (expenses) Interest income 22,082 229,212 — 1,516 252,810 Interest expense — — — — Other income, Net 33,737,237 6,481 191,245 33,934,963 Total other (expenses) income 33,759,319 235,693 191,245 1,516 34,187,773 Income (loss) before income taxes 33,340,490 (118,442) 191,245 (4,318) 33,408,975 Income tax (644,226) (131,686) — — (775,912) Net Income (loss) $ 32,696,264 $ (250,128) $ 191,245 $ (4,318) $ 32,633,063 Six Months Ended June 30, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 421,106 $ 7,945,827 $ — $ — $ 8,366,933 Cost of revenues (503,880) (6,926,607) — — (7,430,487) Gross profit (82,774) 1,019,220 — — 936,446 Operating expenses (42,789) (1,869,297) — — (1,912,086) General and administrative expenses (433,714) (781,944) — (400,044) (1,615,702) Operating loss (559,277) (1,632,021) — (400,044) (2,591,342) Other income (expenses) Interest income 51,746 463,633 — 8,095 523,474 Interest expense — — — — — Other income, Net 239,088 16,447 3,357,142 — 33,612,677 Total other (expenses) income 290,088 480,080 33,357,142 8,095 34,136,151 Income (loss) before income taxes (268,443) (1,151,941) 33,357,142 (391,949) 31,544,809 Income tax 279,231 (131,686) — (751,138) (603,593) Net Income (loss) $ 10,788 $ (1,283,627) $ 33,357,142 $ (1,143,087) $ 30,941,216 Three Months Ended June 30, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 318,713 $ 69,585 $ — $ — $ 388,298 Cost of revenues (287,097) (251,356) — — (538,453) Gross profit (31,616) (181,771) — — (150,155) Operating expenses 556,671 (596,613) — — (1,153,284) General and administrative expenses (384,325) (260,168) — (88,891) (733,384) Operating loss (909,380) (1,038,552) (88,891) (2,036,823) Other income (expenses) Interest income 19,631 78,799 — 1,430 99,860 Interest expense 16 — — 16 Other income, Net 8,327 2,405 365,614 376,346 Total other (expenses) income 27,974 81,204 365,614 1,430 476,222 Income (loss) before income taxes (881,406) (957,348) 365,614 (87,461) (1,560,601) Income tax 133,433 — — — 133,433 Net Income (loss) $ (747,973) $ (957,348) $ 365,614 $ (87,461) $ (1,427,168) Six Months Ended June 30, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 622,812 $ 99,171 $ — $ — $ 721,983 Cost of revenues (616,048) (544,921) — — (1,160,969) Gross profit 6,764 (445,750) — — (438,986) Operating expenses (1,070,730) (1,277,295) — — (2,348,025) General and administrative expenses (674,888) (487,190) — (94,725) (1,256,803) Operating loss (1,738,854) (2,210,235) — (94,725) (4,043,814) Other income (expenses) Interest income 32,932 123,899 — 2,946 159,777 Interest expense — — — — — Other income, Net 843 3,046 363,057 — 366,949 Total other (expenses) income 33,775 126,948 363,057 2,946 526,726 Income (loss) before income taxes (1,705,079) (2,083,287) 363,057 (91,779) (3,517,088) Income tax 301,551 — — — 301,551 Net Income (loss) $ (1,403,528) $ (2,083,287) $ 363,057 $ (91,779) $ (3,215,537) Property Brokerage Real Estate Investment Services Development Transaction Others Total As of June 30, 2021 Real estate property under development $ — $ 183,090,858 $ — $ — $ 93,071,511 Total assets 22,249,493 253,880,401 43,831,149 71,628,033 238,035,819 As of June 30, 2020 Real estate property under development — 93,071,511 — — 183,090,858 Total assets $ 5,466,658 $ 128,586,174 $ 39,436,077 $ 64,546,910 $ 391,589,076 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
AMOUNTS DUE TO DIRECTORS | |
RELATED PARTY TRANSACTIONS | NOTE 23 – RELATED PARTY TRANSACTIONS We rented an office of nearly 192 square meters in downtown Shanghai for displaying purpose from Mrs. Zhang Shuqing, our related party in the first quarter of 2021. On January 27 and March 3, 2021, the Company paid RMB150,000,000 in cash to Mr. Lin Chi-Jung (approximately USD21,167,305) authorized by the Board of Directors on April 27, 2020 for his contributions to the Company, including Mr. Lin’s initiation and supervision of the Company’s investment in Shanghai Da Er Wei Trading Company Limited (“SHDEW”). The Bonus is equivalent to 15% of the annual dividends received from SHDEW from 2016 through 2019. The Company received dividends from SHDEW of $16,472,315 in 2021 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 24 - SUBSEQUENT EVENT In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred from July 1, 2021, up through the date the Company issued the interim financial statements and identified no reportable events. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The condensed consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation. Investments in business entities, in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records and the financial statements are maintained and prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliate in China is Renminbi (“RMB”) and their financial records and statements are maintained and prepared in RMB. Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. Gains and losses resulting from foreign currency transactions are included in the consolidated statement of operations. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated into each company’s denominated currency at period-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations. The financial statements of the Company’s operations based outside of the United States have been translated into U.S. dollars in accordance with ASC830. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into U.S. dollars, period-end exchange rates are applied to the condensed consolidated balance sheets, while average exchange rates as to revenues and expenses are applied to consolidated statements of operations. The effect of foreign currency translation adjustments is included as a component of accumulated other comprehensive income in shareholders’ equity. The exchange rates as of June 30, 2021 and December 31, 2020 are $1: RMB6.4601 and $1: RMB6.5249, respectively. The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation. |
Real Estate Property under Development | Real Estate Property under Development Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs. Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters for the purpose of developing villa-style residential housing. The LYSY project has divided into three phases. Phase 1 has completed construction of 121 units in May 2015 and sold 119 units out of all 121 units at the end of July 25, 2021. Phase 2 was divided into north and south area and completed construction of 88 units at the end of 2020. 16 units and 71 units out of all 88 units have been sold and pre-sold during phase 2 by the end of July 25, 2021. Phase 3 began construction in first quarter of 2021. In September 2020, the Company expanded the Linyi project by purchasing additional 54,312 square meters in the amount of 228 million RMB for future development. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters (“sqm”). In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 25, 2021, the Company pre-sold 673 out of 679 units of the first phase and pre-sold 364 out of 873 of the second phase. |
Long Term Investments | Long Term Investments The Company accounts for long term investments in equities as follows: Investment in Unconsolidated Affiliates Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company did not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in the value of the investment that is not temporary. The Company did not record any impairment losses in any of the periods reported. Other Investments Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the measurement alternative which is measured at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the measurement alternative method in the case of the investment in SHDEW and any decline in value is included in impairment of cost of the investment. |
Government Subsidies | Government Subsidies Government subsidies include cash subsidies received by the Company’s subsidiaries from local governments in the People’s Republic of China (“PRC”). In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue. Government subsidy was received in 2012 and the company recorded it as deferred government subsidy in balance sheets. As of June 30, 2021, and December 31, 2020, the deferred government subsidy amounted to $5,129,837 and $5,079,835, respectively. The subsidy was used to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date. |
Revenue Recognition | Revenue Recognition Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset. All revenues represent gross revenues less sales and business tax. ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. |
Net Earnings (Loss) per Common Share | Net Earnings (Loss) per Common Share The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard since January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new accounting standard update which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The update eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and introduces a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted this new accounting standard on January 1, 2020, using the prospective method, and the adoption did not have a material impact on our consolidated financial statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018-18”). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606, “Revenue from Contracts with Customers” when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as customer revenue if the counterparty is not a customer for that transaction. On January 1, 2020, we adopted this standard and applied it retrospectively to January 1, 2018 when we initially adopted Topic 606. The adoption did not have an impact on our consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Schedule of consolidation entities nature of business | % of Ownership Relationship Date of Place of held by the with the Principal Company Name Incorporation Incorporation Company Company Activity Sunrise Real Estate Development Group, Inc. (CY-SRRE) April 30, 2004 Cayman Islands 100% Subsidiary Investment holding Lin Ray Yang Enterprise Limited (“LRY”) November 13, 2003 British Virgin Islands 100% Subsidiary Investment holding Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100% Subsidiary Property brokerage services Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”) February 5, 2004 PRC 100% Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25% 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75% Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34% 2 Subsidiary Real estate development Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”) November 10, 2010 PRC 60% Subsidiary Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100% Subsidiary Property brokerage services Shanghai Rui Jian Design Company Limited (“SHRJ”) August 15, 2011 PRC 100% Subsidiary Property brokerage services Linyi Rui Lin Construction and Design Company Limited (“LYRL”) March 6, 2012 PRC 100% Subsidiary Investment holding Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) December 28, 2009 PRC 49% Equity investment Real estate development Zhong Ji Pu Fa Real Estate Company Limited (SHGXL) March 13, 2012 PRC 100% Equity investment Real estate development. Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91% 3 Equity investment Import and export trading Shanghai Hui Tian (“SHHT”) July 25, 2014 PRC 100% Subsidiary Investment holding Huai’an Zhanbao Industrial Co., Ltd. (“HAZB”) December 6, 2018 PRC 78.46% 4 Subsidiary Investment holding Huai’an Tianxi Real Estate Development Co., Ltd (“HATX”) October, 2018 PRC 78.46% 4 Subsidiary Investment holding 1 After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY: 49% , SHXJY: 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE): 12.5%, totaling 75.25% equity interest in SZSY. 2 The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that entitles the Company to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase. 3 In December 2019, SHDEW issued an employee stock bonus where its employees received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% . 4 We established HATX for real estate development in Huai’an through HAZB, of which we have 78.46% ownership. |
OTHER RECEIVABLES AND DEPOSIT_2
OTHER RECEIVABLES AND DEPOSITS, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
Schedule of other receivables and deposit, net | June 30, December 31, 2021 2020 Advances to staff $ 28,577 37,573 Rental deposits 792,870 818,868 Prepaid expense 49,099,885 53,558 Prepaid tax 12,461,677 9,777,311 Other receivables 4,039,658 3,908,933 $ 66,422,667 $ 14,596,243 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | June 30, December 31, 2021 2020 Furniture and fixtures $ 275,564 $ 272,878 Computer and office equipment 246,252 210,961 Motor vehicles 727,257 819,945 Properties 2,341,552 2,318,728 3,590,625 3,622,512 Less: Accumulated depreciation (2,310,673) (2,237,736) $ 1,279,952 $ 1,384,776 |
INVESTMENT PROPERTIES, NET (Tab
INVESTMENT PROPERTIES, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT PROPERTIES, NET | |
Schedule of investment properties, net | June 30, December 31, 2020 2019 Investment properties $ 35,967,063 $ 35,616,482 Less: Accumulated depreciation (9,199,131) (8,340,805) $ 26,767,932 $ 27,275,677 |
AMOUNTS DUE TO DIRECTORS (Table
AMOUNTS DUE TO DIRECTORS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
AMOUNTS DUE TO DIRECTORS | |
Schedule of amount due to directors | June 30, December 31, 2021 2020 Lin Chi-Jung $ 495,075 $ 23,387,151 Lin Hsin-Hung 22,432 22,213 $ 517,507 $ 23,409,364 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | June 30, December 31, 2021 2020 Accrued staff commission and bonus $ 270,768 $ 241,718 Rental deposits received 120,915 92,700 Bid bond 92,861 209,965 Dividends payable to non-controlling interest 208,247 206,217 Other payables 7,548,368 7,836,075 $ 8,241,158 $ 8,586,675 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of operating lease obligations maturity | As of June 30, 2021, the Company had the following operating lease obligations. Amount Within one year $ 240,259 Two to five years — $ 240,259 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION | |
Schedule of the company's operating segments | The Company evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, and income from operations. The following tables show the operations of the Company’s operating segments: Three Months Ended June 30, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 134,213 $ 5,778,351 $ — $ — $ 5,912,564 Cost of revenues (184,496) (4,944,933) — — (5,129,429) Gross profit (50,283) 833,418 — — 783,135 Operating expenses 65,205 (878,634) — — (813,429) General and administrative expenses (433,751) (308,919) — (5,834) (748,504) Operating loss (418,829) (354,135) (5,834) (778,798) Other income (expenses) Interest income 22,082 229,212 — 1,516 252,810 Interest expense — — — — Other income, Net 33,737,237 6,481 191,245 33,934,963 Total other (expenses) income 33,759,319 235,693 191,245 1,516 34,187,773 Income (loss) before income taxes 33,340,490 (118,442) 191,245 (4,318) 33,408,975 Income tax (644,226) (131,686) — — (775,912) Net Income (loss) $ 32,696,264 $ (250,128) $ 191,245 $ (4,318) $ 32,633,063 Six Months Ended June 30, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 421,106 $ 7,945,827 $ — $ — $ 8,366,933 Cost of revenues (503,880) (6,926,607) — — (7,430,487) Gross profit (82,774) 1,019,220 — — 936,446 Operating expenses (42,789) (1,869,297) — — (1,912,086) General and administrative expenses (433,714) (781,944) — (400,044) (1,615,702) Operating loss (559,277) (1,632,021) — (400,044) (2,591,342) Other income (expenses) Interest income 51,746 463,633 — 8,095 523,474 Interest expense — — — — — Other income, Net 239,088 16,447 3,357,142 — 33,612,677 Total other (expenses) income 290,088 480,080 33,357,142 8,095 34,136,151 Income (loss) before income taxes (268,443) (1,151,941) 33,357,142 (391,949) 31,544,809 Income tax 279,231 (131,686) — (751,138) (603,593) Net Income (loss) $ 10,788 $ (1,283,627) $ 33,357,142 $ (1,143,087) $ 30,941,216 Three Months Ended June 30, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 318,713 $ 69,585 $ — $ — $ 388,298 Cost of revenues (287,097) (251,356) — — (538,453) Gross profit (31,616) (181,771) — — (150,155) Operating expenses 556,671 (596,613) — — (1,153,284) General and administrative expenses (384,325) (260,168) — (88,891) (733,384) Operating loss (909,380) (1,038,552) (88,891) (2,036,823) Other income (expenses) Interest income 19,631 78,799 — 1,430 99,860 Interest expense 16 — — 16 Other income, Net 8,327 2,405 365,614 376,346 Total other (expenses) income 27,974 81,204 365,614 1,430 476,222 Income (loss) before income taxes (881,406) (957,348) 365,614 (87,461) (1,560,601) Income tax 133,433 — — — 133,433 Net Income (loss) $ (747,973) $ (957,348) $ 365,614 $ (87,461) $ (1,427,168) Six Months Ended June 30, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 622,812 $ 99,171 $ — $ — $ 721,983 Cost of revenues (616,048) (544,921) — — (1,160,969) Gross profit 6,764 (445,750) — — (438,986) Operating expenses (1,070,730) (1,277,295) — — (2,348,025) General and administrative expenses (674,888) (487,190) — (94,725) (1,256,803) Operating loss (1,738,854) (2,210,235) — (94,725) (4,043,814) Other income (expenses) Interest income 32,932 123,899 — 2,946 159,777 Interest expense — — — — — Other income, Net 843 3,046 363,057 — 366,949 Total other (expenses) income 33,775 126,948 363,057 2,946 526,726 Income (loss) before income taxes (1,705,079) (2,083,287) 363,057 (91,779) (3,517,088) Income tax 301,551 — — — 301,551 Net Income (loss) $ (1,403,528) $ (2,083,287) $ 363,057 $ (91,779) $ (3,215,537) Property Brokerage Real Estate Investment Services Development Transaction Others Total As of June 30, 2021 Real estate property under development $ — $ 183,090,858 $ — $ — $ 93,071,511 Total assets 22,249,493 253,880,401 43,831,149 71,628,033 238,035,819 As of June 30, 2020 Real estate property under development — 93,071,511 — — 183,090,858 Total assets $ 5,466,658 $ 128,586,174 $ 39,436,077 $ 64,546,910 $ 391,589,076 |
ORGANIZATION AND DESCRIPTION _3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 6 Months Ended | ||
Jun. 30, 2021 | May 27, 2020 | Oct. 31, 2011 | |
Sunrise Real Estate Development Group Inc [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Apr. 30, 2004 | ||
Subsidiaries, Place of Incorporation | Cayman Islands | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Investment holding | ||
Lin Ray Yang Enterprise Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Nov. 13, 2003 | ||
Subsidiaries, Place of Incorporation | British Virgin Islands | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Investment holding | ||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Aug. 20, 2001 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
Shanghai Shang Yang Real Estate consultation Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Feb. 5, 2004 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Nov. 24, 2006 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, Principal activity | Property brokerage and management services | ||
Equity investment, % of Ownership held by the Company | 12.50% | ||
Suzhou Xi Ji Yang Real Estate Consultation Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Jun. 25, 2004 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 75.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
LYSY | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, % of Ownership held by the Company | 34.00% | 34.00% | |
Equity investment, Date of Incorporation | Oct. 13, 2011 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, Principal activity | Real estate development | ||
Suzhou Shang Yang Real Estate Consultation Company Limited (SZSY) [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, % of Ownership held by the Company | 75.25% | ||
WHGFH | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Nov. 10, 2010 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 60.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
Sanya Shang Yang Real Estate Consultation Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Sep. 18, 2008 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
Shanghai Rui Jian Design Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Aug. 15, 2011 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Property brokerage services | ||
Linyi Rui Lin Construction and Design Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Mar. 6, 2012 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | 34.00% | |
Subsidiaries, Principal activity | Investment holding | ||
Wuhan Yuan Yu Long Real Estate Development Company Limited [Member] | |||
Organization And Description Of Business [Line Items] | |||
Equity investment, Date of Incorporation | Dec. 28, 2009 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, % of Ownership held by the Company | 49.00% | ||
Equity investment, Principal activity | Real estate development | ||
Zhong Ji Pu Fa Real Estate Company Limited | |||
Organization And Description Of Business [Line Items] | |||
Equity investment, Date of Incorporation | Mar. 13, 2012 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, % of Ownership held by the Company | 100.00% | ||
Equity investment, Principal activity | Real estate development. | ||
Shanghai Hui Tian [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Jul. 25, 2014 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 100.00% | ||
Subsidiaries, Principal activity | Investment holding | ||
SHDEW | |||
Organization And Description Of Business [Line Items] | |||
Equity investment, Date of Incorporation | Jun. 6, 2013 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, % of Ownership held by the Company | 19.91% | ||
Equity investment, Principal activity | Import and export trading | ||
Huai'an Zhanbao Industrial Co., Ltd [Member] | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Dec. 6, 2018 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 78.46% | ||
Subsidiaries, Principal activity | Investment holding | ||
Huai'an Tianxi Real Estate Development Co., Ltd | |||
Organization And Description Of Business [Line Items] | |||
Subsidiaries, Date of Incorporation | Oct. 1, 2018 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, % of Ownership held by the Company | 78.46% | ||
Subsidiaries, Principal activity | Investment holding |
ORGANIZATION AND DESCRIPTION _4
ORGANIZATION AND DESCRIPTION OF BUSINESS - Additional Information (Details) | Jul. 25, 2021m²itemUSD ($) | May 27, 2020 | Jun. 30, 2015USD ($) | Jun. 30, 2021m²item | Dec. 31, 2020m²item | Dec. 31, 2019m²item | Nov. 30, 2019 | Mar. 31, 2019m² | Dec. 31, 2018 | Oct. 31, 2018m² | Mar. 31, 2012m² | Oct. 31, 2011 |
Phase 1 villas | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Area of real estate property | 673 | |||||||||||
Number of units | item | 679 | |||||||||||
Number of units pre sold | item | 673 | |||||||||||
Phase 2 North | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Number of units | item | 873 | |||||||||||
Number of units pre sold | item | 364 | |||||||||||
Linyi Project | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Area of Land | 103,385 | |||||||||||
Shareholder Of Szsy [Member] | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 49.00% | |||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 26.00% | |||||||||||
SHDEW | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 19.91% | 20.38% | ||||||||||
Shareholder Of Lysy [Member] | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 80.00% | |||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 46.00% | |||||||||||
Equity Method Investment, Ownership Percentage | 46.00% | |||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 12.50% | |||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 75.25% | |||||||||||
Equity Method Investment, Ownership Percentage | 12.50% | |||||||||||
Huai'an Zhanbao Industrial Co., Ltd [Member] | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | |||||||||||
Linyi Rui Lin Construction and Design Company Limited [Member] | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 34.00% | 100.00% | ||||||||||
Linyi Rui Lin Construction and Design Company Limited [Member] | Nanjing Longchang Real Estate Development Group | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Percentage of issued and outstanding shares received | 10.00% | |||||||||||
LYSY | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 34.00% | 34.00% | ||||||||||
Area of real estate property | 103,385 | |||||||||||
Number of units | $ | 121 | |||||||||||
LYSY | Phase 1 villas | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Number of units | $ | 121 | |||||||||||
HAZB | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||||||||
Area of real estate property | 99,123 | 82,218 | 78,030 | |||||||||
Number of units | item | 873 | 679 | ||||||||||
HAZB | Phase 1 villas | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Area of real estate property | 82,218 | |||||||||||
Number of units | item | 679 | |||||||||||
HAZB | Phase 2 North | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Area of real estate property | 99,123 | |||||||||||
Number of units | item | 873 | |||||||||||
HAZB | Huai'an Project | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | 78.46% | ||||||||||
Area of real estate property | 100 | |||||||||||
HATX | Huai'an Project | ||||||||||||
Organization And Description Of Business [Line Items] | ||||||||||||
Area of real estate property | 78,030 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jul. 25, 2021m²USD ($)item | Sep. 30, 2020USD ($)m² | Jun. 30, 2015USD ($) | Jun. 30, 2021USD ($)m²item | Dec. 31, 2020USD ($)m²item | Dec. 31, 2019m²item | Jun. 30, 2021CNY (¥)m² | Dec. 31, 2020CNY (¥)m² | Mar. 31, 2019m² | Dec. 31, 2018 | Oct. 31, 2018m² | Mar. 31, 2012m² | Oct. 31, 2011 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign Currency Exchange Rate Translation | $ 1 | $ 1 | ¥ 6.4601 | ¥ 6.5249 | |||||||||
Significant Influence Percentage Description | 20.00% | ||||||||||||
Proceeds From Government Subsidies | $ | $ 5,129,837 | $ 5,079,835 | |||||||||||
HAZB | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||
Area of real estate property | m² | 99,123 | 82,218 | 99,123 | 78,030 | |||||||||
Number of units | 873 | 679 | |||||||||||
LYSY | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 34.00% | 34.00% | 34.00% | ||||||||||
Number of Phases | 3 | ||||||||||||
Area of real estate property | m² | 103,385 | ||||||||||||
Number of units | $ | 121 | ||||||||||||
Phase 1 villas | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Area of real estate property | m² | 673 | ||||||||||||
Number of units | 679 | ||||||||||||
Number of units pre sold | 673 | ||||||||||||
Number of units sold | 16 | ||||||||||||
Phase 1 villas | HAZB | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Area of real estate property | m² | 82,218 | 82,218 | |||||||||||
Number of units | 679 | ||||||||||||
Phase 1 villas | LYSY | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of units | $ | 121 | ||||||||||||
Number of units sold | $ | 119 | ||||||||||||
Phase 2 North | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of units | 873 | ||||||||||||
Number of units pre sold | 364 | ||||||||||||
Phase 2 North | HAZB | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Area of real estate property | m² | 99,123 | 99,123 | |||||||||||
Number of units | 873 | ||||||||||||
Phase 2 | LYSY | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of units | 88 | ||||||||||||
Number of units pre sold | 71 | ||||||||||||
Number of units sold | 16 | ||||||||||||
Phase 3 | LYSY | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Purchase of land | $ | $ 228,000,000 | ||||||||||||
Area of real estate property | m² | 54,312 | ||||||||||||
Huai'an Project | HAZB | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | 78.46% | |||||||||||
Area of real estate property | m² | 100 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 31,310,574 | $ 56,051,055 |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities, Current | $ 29,383,315 | $ 25,012,736 |
Bank Wealth Management Investment Products [Member] | ||
Marketable Securities, Current | $ 29,383,315 | |
Minimum | Bank Wealth Management Investment Products [Member] | ||
Investment Holdings, Annualized Rate Of Return | 3.15% | |
Maximum | Bank Wealth Management Investment Products [Member] | ||
Investment Holdings, Annualized Rate Of Return | 4.40% |
REAL ESTATE PROPERTY UNDER DE_2
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details) | Jul. 25, 2021m²item | Jun. 30, 2021USD ($)m²item | Dec. 31, 2020m²item | Dec. 31, 2019m²item | Mar. 31, 2019m² | Dec. 31, 2018 | Oct. 31, 2018m² |
HAZB | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of real estate property | m² | 99,123 | 82,218 | 78,030 | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||
Number of units | 873 | 679 | |||||
Phase 1 villas | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Number of villas sold | 119 | ||||||
Total number of villas | 121 | ||||||
Area of real estate property | m² | 673 | ||||||
Number of units | 679 | ||||||
Number of units pre sold | 673 | ||||||
Number of units sold | 16 | ||||||
Phase 1 villas | HAZB | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of real estate property | m² | 82,218 | ||||||
Number of units | 679 | ||||||
Phase 2 North | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Number of villas sold | 71 | ||||||
Total number of villas | 88 | ||||||
Number of units | 873 | ||||||
Number of units pre sold | 364 | ||||||
Phase 2 North | HAZB | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of real estate property | m² | 99,123 | ||||||
Number of units | 873 | ||||||
Huai'an Project | HAZB | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of real estate property | m² | 100 | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | 78.46% | |||||
Huai'an Project | HATX | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of real estate property | m² | 78,030 | ||||||
Linyi Project | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Area of Land | m² | 103,385 | ||||||
Land use rights | |||||||
Real Estate Property Under Development [Line Items] | |||||||
Finite-Lived Intangible Assets, Net | $ | $ 174,474,820 |
OTHER RECEIVABLES AND DEPOSIT_3
OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
OTHER RECEIVABLES AND DEPOSITS, NET | ||
Advances to staff | $ 28,577 | $ 37,573 |
Rental deposits | 792,870 | 818,868 |
Prepaid expense | 49,099,885 | 53,558 |
Prepaid tax | 12,461,677 | 9,777,311 |
Other receivables | 4,039,658 | 3,908,933 |
Other Receivables and Deposit, Net | $ 66,422,667 | $ 14,596,243 |
OTHER RECEIVABLES AND DEPOSIT_4
OTHER RECEIVABLES AND DEPOSITS, NET - Additional Information (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
OTHER RECEIVABLES AND DEPOSITS, NET | ||
Allowance for Doubtful Other Receivables, Current | $ 508,773 | $ 503,814 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,590,625 | $ 3,622,512 |
Less: Accumulated depreciation | (2,310,673) | (2,237,736) |
Property, Plant and Equipment, Net | 1,279,952 | 1,384,776 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 275,564 | 272,878 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 246,252 | 210,961 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 727,257 | 819,945 |
Properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,341,552 | $ 2,318,728 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 3,354,029 | $ 2,285,233 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 104,824 | $ 78,408 |
INVESTMENT PROPERTIES, NET (Det
INVESTMENT PROPERTIES, NET (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
INVESTMENT PROPERTIES, NET | |||
Investment properties | $ 35,967,063 | $ 35,616,482 | |
Less: Accumulated depreciation | (9,199,131) | (8,340,805) | |
Investment Properties, Net | $ 26,767,932 | $ 27,275,677 | $ 27,275,677 |
INVESTMENT PROPERTIES, NET - Ad
INVESTMENT PROPERTIES, NET - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INVESTMENT PROPERTIES, NET | ||
Depreciation and amortization expense for investment properties | $ 3,212,964 | $ 2,172,415 |
INVESTMENT IN AND AMOUNT DUE _2
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | $ 13,744,299 | $ 13,610,330 |
SHDEW | ||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | $ 13,713,345 | |
SHDEW | ||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 19.91% |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) ¥ in Thousands | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Apr. 04, 2020USD ($) | Apr. 04, 2020CNY (¥) | |
Cost Method Investments | $ 703,535 | $ 696,677 | |||
Impairment loss on other investments | 0 | $ 0 | |||
Amount invested | 13,744,299 | 13,610,330 | |||
Accounting Standards Update 2016-01 [Member] | |||||
Cost Method Investments | $ 703,535 | $ 696,677 | |||
Taobuting | |||||
Equity investment, % of Ownership held by the Company | 7.0915% | ||||
LYSY | Nanjing Longchang Real Estate Development Group | |||||
Equity investment, % of Ownership held by the Company | 10.00% | 10.00% | |||
Amount invested | $ 3,398,213 | ¥ 22,170 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 04, 2020USD ($) | Apr. 04, 2020CNY (¥) |
Goodwill [Line Items] | ||||
Amount invested | $ 13,744,299 | $ 13,610,330 | ||
Goodwill | $ 1,759,696 | $ 1,690,029 | ||
Nanjing Longchang Real Estate Development Group | LYSY | ||||
Goodwill [Line Items] | ||||
Equity investment, % of Ownership held by the Company | 10.00% | 10.00% | ||
Amount invested | $ 3,398,213 | ¥ 22,170 |
PROMISSORY NOTES PAYABLE (Detai
PROMISSORY NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Unsecured Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,547,676 | $ 1,532,591 |
Unsecured Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 773,838 | $ 766,295 |
Debt Instrument, Face Amount | $ 773,838 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.00% |
AMOUNTS DUE TO DIRECTORS (Detai
AMOUNTS DUE TO DIRECTORS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | $ 517,507 | $ 23,409,364 |
Lin Chi-Jung | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | 495,075 | 23,387,151 |
Lin Hsin-Hung | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | $ 22,432 | $ 22,213 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Accrued staff commission and bonus | $ 270,768 | $ 241,718 |
Rental deposits received | 120,915 | 92,700 |
Bid bond | 92,861 | 209,965 |
Dividends payable to no controlling interest | 208,247 | 206,217 |
Other payables | 7,548,368 | 7,836,075 |
Other payables and accrued expenses | $ 8,241,158 | $ 8,586,675 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Other Payables And Accrued Expenses [Line Items] | ||
Accounts Payable, Current | $ 17,205,345 | $ 20,448,001 |
Linyi Project | ||
Other Payables And Accrued Expenses [Line Items] | ||
Unpaid Project Development Fees | 2,021,108 | |
HATX Project | ||
Other Payables And Accrued Expenses [Line Items] | ||
Unpaid Project Development Fees | $ 13,896,763 |
AMOUNT DUE TO AFFILIATES (Detai
AMOUNT DUE TO AFFILIATES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | $ 32,373,610 | $ 31,438,576 |
JXSY | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | 544,194 | |
SHSJ, a shareholder of HATX | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | $ 31,829,416 |
CUSTOMER DEPOSITS (Details)
CUSTOMER DEPOSITS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Customer Deposits, Current | $ 159,840,214 | $ 116,163,946 |
Linyi Project | ||
Customer Deposits, Current | 20,856,757 | |
HATX Project | ||
Customer Deposits, Current | $ 138,972,330 |
DEFERRED GOVERNMENT SUBSIDY (De
DEFERRED GOVERNMENT SUBSIDY (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
DEFERRED GOVERNMENT SUBSIDY | ||
Deferred government subsidy | $ 5,129,837 | $ 5,079,835 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of operating lease obligations falling due (Details) | Jun. 30, 2021USD ($) |
COMMITMENTS AND CONTINGENCIES | |
Within one year | $ 240,259 |
Two to five years | 0 |
Operating lease obligations | $ 240,259 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
Rental expenses under operating lease | $ 28,288 | $ 18,165 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | ||
Statutory reserve | $ 3,986,618 | $ 3,986,618 |
Prc Corporate [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve | 10.00% | |
Statutory Reserve Maintenance Required, Percentage On Registered Capital | 50.00% | |
Prc Subsidiary [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve | 10.00% | |
Statutory Reserve Maintenance Required, Percentage On Registered Capital | 50.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 5,912,564 | $ 388,298 | $ 8,366,933 | $ 721,983 | |
Cost of revenues | (5,129,429) | (538,453) | (7,430,487) | (1,160,969) | |
Gross profit | 783,135 | (150,155) | 936,446 | (438,986) | |
Operating expenses | (813,429) | (1,153,284) | (1,912,086) | (2,348,025) | |
General and administrative expenses | (748,504) | (733,384) | (1,615,702) | (1,256,803) | |
Operating loss | (778,798) | (2,036,823) | (2,591,342) | (4,043,814) | |
Other income (expenses) | |||||
Interest income | 252,810 | 99,860 | 523,474 | 159,777 | |
Other income, Net | 356,327 | 244,532 | 502,985 | 428,937 | |
Total other (expenses) income | 34,187,773 | 476,222 | 34,136,151 | 526,726 | |
Income tax | (775,912) | 133,433 | (603,593) | 301,551 | |
Net income (loss) | 32,633,063 | (1,427,168) | 30,941,216 | (3,215,537) | |
Total assets | 391,589,076 | 391,589,076 | $ 348,506,297 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 5,912,564 | 388,298 | 8,366,933 | 721,983 | |
Cost of revenues | (5,129,429) | (538,453) | (7,430,487) | (1,160,969) | |
Gross profit | 783,135 | (150,155) | 936,446 | (438,986) | |
Operating expenses | (813,429) | (1,153,284) | (1,912,086) | (2,348,025) | |
General and administrative expenses | (748,504) | (733,384) | |||
General and administrative expenses | (1,615,702) | (1,256,803) | |||
Operating loss | (778,798) | (2,036,823) | (2,591,342) | (4,043,814) | |
Other income (expenses) | |||||
Interest income | 252,810 | 99,860 | 523,474 | 159,777 | |
Interest expense | 0 | 16 | |||
Interest expense | 0 | 0 | |||
Other income, Net | 33,934,963 | 376,346 | 33,612,677 | 366,949 | |
Total other (expenses) income | 34,187,773 | 476,222 | 34,136,151 | 526,726 | |
Income (loss) before income taxes | 33,408,975 | (1,560,601) | 31,544,809 | (3,517,088) | |
Income tax | (775,912) | 133,433 | (603,593) | 301,551 | |
Net income (loss) | 32,633,063 | (1,427,168) | 30,941,216 | (3,215,537) | |
Real estate property under development | 93,071,511 | 183,090,858 | 93,071,511 | 183,090,858 | |
Total assets | 238,035,819 | 391,589,076 | 238,035,819 | 391,589,076 | |
Property Brokerage Services [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 134,213 | 318,713 | 421,106 | 622,812 | |
Cost of revenues | (184,496) | (287,097) | (503,880) | (616,048) | |
Gross profit | (50,283) | (31,616) | (82,774) | 6,764 | |
Operating expenses | 65,205 | 556,671 | (42,789) | (1,070,730) | |
General and administrative expenses | (433,751) | (384,325) | |||
General and administrative expenses | (433,714) | (674,888) | |||
Operating loss | (418,829) | (909,380) | (559,277) | (1,738,854) | |
Other income (expenses) | |||||
Interest income | 22,082 | 19,631 | 51,746 | 32,932 | |
Interest expense | 0 | 16 | |||
Interest expense | 0 | 0 | |||
Other income, Net | 33,737,237 | 8,327 | 239,088 | 843 | |
Total other (expenses) income | 33,759,319 | 27,974 | 290,088 | 33,775 | |
Income (loss) before income taxes | 33,340,490 | (881,406) | (268,443) | (1,705,079) | |
Income tax | (644,226) | 133,433 | 279,231 | 301,551 | |
Net income (loss) | 32,696,264 | (747,973) | 10,788 | (1,403,528) | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | 22,249,493 | 5,466,658 | 22,249,493 | 5,466,658 | |
Real Estate Development [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 5,778,351 | 69,585 | 7,945,827 | 99,171 | |
Cost of revenues | (4,944,933) | (251,356) | (6,926,607) | (544,921) | |
Gross profit | 833,418 | (181,771) | 1,019,220 | (445,750) | |
Operating expenses | (878,634) | (596,613) | (1,869,297) | (1,277,295) | |
General and administrative expenses | (308,919) | (260,168) | |||
General and administrative expenses | (781,944) | (487,190) | |||
Operating loss | (354,135) | (1,038,552) | (1,632,021) | (2,210,235) | |
Other income (expenses) | |||||
Interest income | 229,212 | 78,799 | 463,633 | 123,899 | |
Interest expense | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Other income, Net | 6,481 | 2,405 | 16,447 | 3,046 | |
Total other (expenses) income | 235,693 | 81,204 | 480,080 | 126,948 | |
Income (loss) before income taxes | (118,442) | (957,348) | (1,151,941) | (2,083,287) | |
Income tax | (131,686) | 0 | (131,686) | 0 | |
Net income (loss) | (250,128) | (957,348) | (1,283,627) | (2,083,287) | |
Real estate property under development | 183,090,858 | 93,071,511 | 183,090,858 | 93,071,511 | |
Total assets | 253,880,401 | 128,586,174 | 253,880,401 | 128,586,174 | |
Investment Transaction [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses | 0 | 0 | |||
General and administrative expenses | 0 | 0 | |||
Operating loss | 0 | 0 | |||
Other income (expenses) | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | |||
Other income, Net | 191,245 | 365,614 | 3,357,142 | 363,057 | |
Total other (expenses) income | 191,245 | 365,614 | 33,357,142 | 363,057 | |
Income (loss) before income taxes | 191,245 | 365,614 | 33,357,142 | 363,057 | |
Income tax | 0 | 0 | 0 | 0 | |
Net income (loss) | 191,245 | 365,614 | 33,357,142 | 363,057 | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | 43,831,149 | 39,436,077 | 43,831,149 | 39,436,077 | |
Other Segments [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Cost of revenues | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses | (5,834) | (88,891) | |||
General and administrative expenses | (400,044) | (94,725) | |||
Operating loss | (5,834) | (88,891) | (400,044) | (94,725) | |
Other income (expenses) | |||||
Interest income | 1,516 | 1,430 | 8,095 | 2,946 | |
Interest expense | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Other income, Net | 0 | 0 | |||
Total other (expenses) income | 1,516 | 1,430 | 8,095 | 2,946 | |
Income (loss) before income taxes | (4,318) | (87,461) | (391,949) | (91,779) | |
Income tax | 0 | 0 | (751,138) | 0 | |
Net income (loss) | (4,318) | (87,461) | (1,143,087) | (91,779) | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | $ 71,628,033 | $ 64,546,910 | $ 71,628,033 | $ 64,546,910 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Mar. 03, 2021CNY (¥) | Jan. 27, 2021CNY (¥) | Jun. 30, 2021USD ($) | Mar. 31, 2021m² | Mar. 03, 2021USD ($) | Jan. 27, 2021USD ($) |
SHDEW | ||||||
Related Party Transaction [Line Items] | ||||||
Bonus amount equivalent to percentage of annual dividend | 15 | 15 | ||||
Dividends received | $ | $ 16,472,315 | |||||
Lin Chi-Jung | ||||||
Related Party Transaction [Line Items] | ||||||
Bonus paid in cash | ¥ 150,000,000 | ¥ 150,000,000 | $ 21,167,305 | $ 21,167,305 | ||
Mrs. Zhang Shuqing | Rent expense | ||||||
Related Party Transaction [Line Items] | ||||||
Square meters rented | m² | 192 |