Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
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 | None | |
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 | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 18,359,017 | $ 33,201,354 |
Restricted cash | 45,789,248 | 43,869,156 |
Transactional financial assets | 10,282,449 | 10,960,511 |
Accounts receivable | 179,325 | 204,518 |
Real estate property under development | 117,569,883 | 120,302,022 |
Amount due from an unconsolidated affiliate | 15,882,006 | 16,502,409 |
Other receivables and deposits, net | 13,259,147 | 10,733,460 |
Total current assets | 221,321,075 | 235,773,430 |
Property and equipment, net | 819,133 | 1,001,077 |
Investment properties, net | 21,159,443 | 22,673,139 |
Investment in an unconsolidated affiliate | 12,290,133 | 12,751,061 |
Goodwill | 1,003,503 | 1,243,194 |
Other investments | 629,100 | 652,693 |
Total assets | 257,222,387 | 274,094,594 |
Current liabilities | ||
Promissory notes payable | 1,383,930 | 1,435,833 |
Accounts payable | 26,341,832 | 22,372,938 |
Customer deposits | 32,760,936 | 34,742,361 |
Other payables and accrued expenses | 7,214,997 | 7,587,515 |
Other taxes payable | 233,298 | 255,175 |
Income taxes payable | 1,387,499 | 1,848,666 |
Dividends payable | 10,303,789 | |
Total current liabilities | 118,958,157 | 128,277,659 |
Long-term income tax payable | 539,211 | 1,078,422 |
Total liabilities | 119,497,368 | 129,356,081 |
Commitments and contingencies | ||
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, 2023 and December 31, 2022, respectively | 686,919 | 686,919 |
Additional paid-in capital | 8,110,008 | 8,110,008 |
Statutory reserve | 3,986,618 | 3,986,618 |
Retained Earnings | 107,991,305 | 109,300,636 |
Accumulated other comprehensive income | 4,584,289 | 9,447,265 |
Total deficit of Sunrise Real Estate Group, Inc. | 125,359,139 | 131,531,446 |
Non-controlling interests | 12,365,880 | 13,207,067 |
Total shareholders' equity | 137,725,019 | 144,738,513 |
Total liabilities and shareholders' equity | 257,222,387 | 274,094,594 |
Affiliated Entity | ||
Current liabilities | ||
Amount due | 49,131,392 | 49,251,273 |
Shareholders | ||
Current liabilities | ||
Amount due | $ 504,273 | $ 480,109 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
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 - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net revenues | $ 7,042,904 | $ 34,639,531 | $ 12,776,666 | $ 45,879,936 |
Cost of revenues | (5,956,385) | (30,085,259) | (11,136,935) | (40,745,054) |
Gross profit (loss) | 1,086,519 | 4,554,272 | 1,639,731 | 5,134,882 |
Operating expenses | (490,120) | (223,156) | (940,599) | (952,585) |
General and administrative expenses | (728,734) | 113,603 | (1,540,592) | (1,788,700) |
Operating profit (loss) | (132,335) | 4,444,719 | (841,460) | 2,393,597 |
Other income (expenses) | ||||
Interest income | 248,416 | 211,659 | 495,420 | 467,131 |
Interest expense | (782,378) | (582,736) | (1,364,044) | (2,344,872) |
Equity in net gain (loss) of an affiliate | (434) | 22,079 | ||
Other income (loss), net | 1,117,937 | (1,805,235) | 384,796 | (1,776,436) |
Total other Income | 583,975 | (2,176,746) | (483,828) | (3,632,098) |
Income (loss) before income taxes | 451,640 | 2,267,973 | (1,325,288) | (1,238,501) |
Income tax benefit (expense) | (250,864) | (1,333,194) | (361,315) | (1,333,212) |
Net income (loss) | 200,776 | 934,779 | (1,686,603) | (2,571,713) |
Less: Net (income) loss attributable to non-controlling interests | (141,219) | (484,077) | (377,272) | (2,124,456) |
Net income attributable to shareholders of Sunrise Real Estate Group, Inc. | 341,995 | 1,418,856 | (1,309,331) | (447,257) |
Other comprehensive income (loss) Foreign currency translation adjustment | (7,240,930) | (10,412,132) | (5,326,891) | (9,569,069) |
Comprehensive income (loss) | (7,040,154) | (9,477,353) | (7,013,494) | (12,140,782) |
Less: Comprehensive income (loss) attributable to non-controlling interests | 782,428 | 1,248,496 | 841,187 | 2,805,277 |
Total comprehensive income (loss) attributable to shareholders | $ (6,257,726) | $ (8,228,857) | $ (6,172,307) | $ (9,335,505) |
Earnings per share - basic | $ 0 | $ 0.02 | $ (0.02) | $ (0.01) |
Earnings per share - diluted | $ 0 | $ 0.02 | $ (0.02) | $ (0.01) |
Weighted average common shares outstanding - Basic | 68,691,925 | 68,691,925 | 68,691,925 | 68,691,925 |
Weighted average common shares outstanding - Diluted | 68,691,925 | 68,691,925 | 68,691,925 | 68,691,925 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserve | Retained Earnings (Deficits) | Accumulated Other Comprehensive Income | Non-controlling Interests | Total |
Beginning Balance at Dec. 31, 2021 | $ 686,919 | $ 8,050,008 | $ 3,986,618 | $ 117,729,224 | $ 24,738,423 | $ 15,430,432 | $ 170,621,624 |
Beginning Balance (in shares) at Dec. 31, 2021 | 68,691,925 | ||||||
Profit (loss) for the year | (447,257) | (2,124,456) | (2,571,713) | ||||
Translation of foreign operations | $ 0 | 0 | 0 | 0 | (8,888,248) | (680,821) | (9,569,069) |
Ending Balance at Jun. 30, 2022 | $ 686,919 | 8,050,008 | 3,986,618 | 117,281,967 | 15,850,175 | 12,625,155 | 158,480,842 |
Ending Balance (in shares) at Jun. 30, 2022 | 68,691,925 | ||||||
Beginning Balance at Mar. 31, 2022 | $ 686,919 | 8,050,008 | 3,986,618 | 115,928,818 | 25,497,888 | 13,873,651 | 168,023,902 |
Beginning Balance (in shares) at Mar. 31, 2022 | 68,691,925 | ||||||
Profit (loss) for the year | 1,353,149 | (484,077) | 869,072 | ||||
Translation of foreign operations | (9,647,713) | (764,419) | (10,412,132) | ||||
Ending Balance at Jun. 30, 2022 | $ 686,919 | 8,050,008 | 3,986,618 | 117,281,967 | 15,850,175 | 12,625,155 | 158,480,842 |
Ending Balance (in shares) at Jun. 30, 2022 | 68,691,925 | ||||||
Beginning Balance at Dec. 31, 2022 | $ 686,919 | 8,110,008 | 3,986,618 | 109,300,636 | 9,447,265 | 13,207,067 | 144,738,513 |
Beginning Balance (in shares) at Dec. 31, 2022 | 68,691,925 | ||||||
Profit (loss) for the year | (1,309,331) | (377,272) | (1,686,603) | ||||
Translation of foreign operations | $ 0 | 0 | 0 | 0 | (4,862,976) | (463,915) | (5,326,891) |
Ending Balance at Jun. 30, 2023 | $ 686,919 | 8,110,008 | 3,986,618 | 107,991,305 | 4,584,289 | 12,365,880 | 137,725,019 |
Ending Balance (in shares) at Jun. 30, 2023 | 68,691,925 | ||||||
Beginning Balance at Mar. 31, 2023 | $ 686,919 | 8,110,008 | 3,986,618 | 107,649,310 | 11,184,010 | 13,148,308 | 144,765,173 |
Beginning Balance (in shares) at Mar. 31, 2023 | 68,691,925 | ||||||
Profit (loss) for the year | 341,995 | (141,219) | 200,776 | ||||
Translation of foreign operations | (6,599,721) | (641,209) | (7,240,930) | ||||
Ending Balance at Jun. 30, 2023 | $ 686,919 | $ 8,110,008 | $ 3,986,618 | $ 107,991,305 | $ 4,584,289 | $ 12,365,880 | $ 137,725,019 |
Ending Balance (in shares) at Jun. 30, 2023 | 68,691,925 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ (1,686,603) | $ (2,571,713) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 1,179,643 | 820,935 |
Loss (Gain) on disposal of property, plant and equipment | 32,902 | 16,660 |
Changes in assets and liabilities | ||
Accounts receivable | 18,513 | 12,768 |
Real estate property under development | (1,681,300) | 26,428,443 |
Customer Deposits | (754,602) | (49,525,305) |
Amount due from unconsolidated affiliates | 1,751,782 | 432,503 |
Other receivables and deposits | (3,030,354) | 38,807 |
Deferred tax assets | 839,914 | |
Net cash from directors | 43,182 | (47,150) |
Accounts payable | 4,968,945 | (740,128) |
Dividends | (10,329,001) | 533,975 |
Other payables and accrued expenses | (102,177) | (453,503) |
Other taxes payable | (13,160) | (138,609) |
Income taxes payable | (949,342) | 61,983 |
Net cash provided by (used in) operating activities | (10,551,572) | (24,290,420) |
Cash flows from investing activities | ||
Purchases of property and equipment | (4,164) | (85,166) |
Net Cash from Transactional financial assets | 293,145 | (1,070,930) |
Net cash provided by (used in) investing activities | 288,981 | (1,156,096) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,659,654) | (4,405,686) |
Net increase in cash, cash equivalents and restricted cash | (12,922,245) | (29,852,202) |
Cash, cash equivalents and restricted cash at beginning of period | 77,070,510 | 97,911,619 |
Cash, cash equivalents and restricted cash at end of period | 64,148,265 | 68,059,417 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 1,361,466 | 1,333,212 |
Interest paid | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023, the Company has the following major subsidiaries and equity investment. % of Ownership Relationship Date of Place of held by the with the Company Name Incorporation Incorporation Company Company Principal 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 Shangyang International Pte.Ltd (“SYSG”) August 19, 2022 Singapore 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 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 Shanghai Taobuting Media Co., Ltd (TBT) July 1, 2020 PRC 7.5% Subsidiary Streaming platform 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, 2022, 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, 2022 and the results of operations for the six months ended June 30, 2023 and 2022, and the cash flows for the six months ended June 30, 2023 and 2022. 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, 2022. The results of operations for the six months ended June 30, 2023 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, 2023 | |
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, 2023 and December 31, 2022 are $1: RMB7.2258 and $1: RMB6.9646, 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(“sqm”) for the purpose of developing villa-style residential housing. The LYSY project is divided into three phases. Phase 1 completed construction of 121 units in May 2015 and sold 119 units by the end of July 31, 2023. Phase 2 was divided into north and south areas and completed construction of 84 units as of the end of 2020. All In October 2018, HATX purchased property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. 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 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 units out of 873 units 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. 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 February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed 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, 2023 | |
RESTRICTED CASH | |
RESTRICTED CASH | NOTE 3 – RESTRICTED CASH The Company is required to maintain certain deposits with the bank for those home buyers that have 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, 2023, and December 31, 2022, the Company held cash deposits of $45,789,248 and $43,869,156, respectively. |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
TRANSACTIONAL FINANCIAL ASSETS | |
TRANSACTIONAL FINANCIAL ASSETS | NOTE 4 – TRANSACTIONAL FINANCIAL ASSETS As of June 30, 2023, we had $10,282,449 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 2.08% to 2.7% depending on the amount and time period invested. |
REAL ESTATE PROPERTY UNDER DEVE
REAL ESTATE PROPERTY UNDER DEVELOPMENT | 6 Months Ended |
Jun. 30, 2023 | |
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 (“Linyi Project”), which is located at 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 sqm 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 all 84 units in Phase 2 as of July 31, 2023. As to Phase 3, we pre-sold 21 units out of 51 units as of July 31, 2023. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. 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 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 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 out of 873 units of the second phase. As of June 30, 2022, land use rights included in real estate property under development totaled $117,569,883. |
OTHER RECEIVABLES AND DEPOSITS,
OTHER RECEIVABLES AND DEPOSITS, NET | 6 Months Ended |
Jun. 30, 2023 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
OTHER RECEIVABLES AND DEPOSITS, NET | NOTE 6 – OTHER RECEIVABLES AND DEPOSITS, NET June 30, December 31, 2023 2022 Advances to staff $ 320,856 372,262 Rental deposits 709,260 735,860 Prepaid expense 493,603 28,153 Prepaid tax 7,279,391 7,783,185 Other receivables 4,456,037 1,859,000 $ 13,259,147 $ 10,733,460 Other receivables and deposits as of June 30, 2023 and December 31, 2022 were stated net of allowance for doubtful accounts of $1,188,602 and $1,233,179, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 – PROPERTY AND EQUIPMENT , June 30, December 31, 2023 2022 Furniture and fixtures $ 255,329 $ 233,960 Computer and office equipment 63,679 135,163 Motor vehicles 720,176 747,185 Properties 2,093,812 2,172,338 3,132,996 3,278,646 Less: Accumulated depreciation (2,313,863) (2,277,569) $ 819,133 $ 1,001,077 Depreciation and amortization expense for property and equipment amounted to $1,179,643 and $820,935 for the six months ended June 30, 2023 and 2022, respectively. |
INVESTMENT PROPERTIES, NET
INVESTMENT PROPERTIES, NET | 6 Months Ended |
Jun. 30, 2023 | |
INVESTMENT PROPERTIES, NET | |
INVESTMENT PROPERTIES, NET | NOTE 8 – INVESTMENT PROPERTIES, NET June 30, December 31, 2023 2022 Investment properties $ 32,161,696 $ 33,367,887 Less: Accumulated depreciation (11,002,253) (10,694,748) $ 21,159,443 $ 22,673,139 Depreciation and amortization expense for investment properties amounted to $1,061,518 and $774,249 for the six months ended June 30, 2023 and 2022, respectively. |
INVESTMENT IN AND AMOUNT DUE FR
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | 6 Months Ended |
Jun. 30, 2023 | |
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | |
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | 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, 2023, the investment amount in SHDEW was $12,262,454 and SHTX was $27,679. SHDEW was established in June 2013 as a skincare and cosmetic company. 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, 2023 | |
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, 2023, and December 31, 2022, the carrying amount of the Company’s measurement alternative investments was $629,100 and $652,693, 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 periods ended June 30, 2023 and 2022, respectively. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023, the amount of $1,003,503 of goodwill represents the difference between the investment cost and book value, the company has not recorded any impairments of goodwill. |
PROMISSORY NOTES PAYABLE
PROMISSORY NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
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 $1,383,930 and $1,435,833 as of June 30, 2023 and December 31, 2022, respectively. The promissory note with a principal as of June 30, 2023 amounting to $691,965 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2023, and December 31, 2022, the outstanding principal and unpaid interest related to this promissory note amounted to $691,965 and $717,917, respectively. The promissory note with a principal as of June 30, 2023 amounting to $691,965 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2023, and December 31, 2022, the outstanding principal and unpaid interest related to this promissory note amounted to $691,965 and $717,917, respectively. For the six months ended June 30, 2023, the interest expense related to these promissory notes was $ NIL |
AMOUNTS DUE TO DIRECTORS
AMOUNTS DUE TO DIRECTORS | 6 Months Ended |
Jun. 30, 2023 | |
Directors | |
AMOUNTS DUE TO DIRECTORS | |
AMOUNTS DUE TO DIRECTORS | NOTE 13 – AMOUNTS DUE TO DIRECTORS June 30, December 31, 2023 2022 Lin Chi-Jung $ 484,213 $ 459,299 Lin Hsin-Hung 20,060 20,811 $ 504,273 $ 480,109 (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, 2023 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 14 – OTHER PAYABLES AND ACCRUED EXPENSES June 30, December 31, 2023 2022 Accrued staff commission and bonus $ 62,374 $ 185,124 Rental deposits received 152,799 164,566 Bid bond 87,188 90,457 Dividends payable to non-controlling interest 186,214 193,198 Other payables 6,726,422 6,954,170 $ 7,214,997 $ 7,587,515 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | NOTE 15 – ACCOUNT PAYABLE As of June 30, 2023, and December 31, 2022, the balances of accounts payable were $26,341,832 and $22,372,938 respectively. The balance of accounts payable as of June 30, 2023 included unpaid development fee of Linyi project of $4,588,476 and HATX project of $20,702,694. The remaining balance was due to agents of the operating business. |
AMOUNT DUE TO AFFILIATES
AMOUNT DUE TO AFFILIATES | 6 Months Ended |
Jun. 30, 2023 | |
Due To Affiliate | |
AMOUNT DUE TO AFFILIATES | |
AMOUNT DUE TO AFFILIATES | NOTE 16 – AMOUNT DUE TO AFFILIATES As of June 30, 2023, the amount due to Shanghai Shengji (“SHSJ”), a shareholder of HATX, was $48,641,031 and JXSY was $490,361, was an intercompany transfer for day-to-day operations. |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023, the pre-sales amounted to $7,085,740. The HATX project started pre-sales in December 2019; as of June 30, 2023, the pre-sales amounted to $25,638,714. |
INCOME TAX PAYABLE
INCOME TAX PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
INCOME TAX PAYABLE | |
INCOME TAX 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 – 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, 2023 and 2022 were $57,414 and $115,172, respectively. As of June 30, 2023, the Company had the following operating lease obligations. Amount Within one year $ 10,843 Two to five years — $ 10,843 |
STATUTORY RESERVE
STATUTORY RESERVE | 6 Months Ended |
Jun. 30, 2023 | |
STATUTORY RESERVE | |
STATUTORY RESERVE | NOTE 20 – 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, 2023, and December 31, 2022, the Company’s statutory reserve fund was $3,986,618 and $3,986,618, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 21 - 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, 2023 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ — $ 7,042,904 $ — $ — $ 7,042,904 Cost of revenues — (5,956,385) — — (5,956,385) Gross profit — 1,086,519 — — 1,086,519 Operating expenses — (493,861) — — (490,120) General and administrative expenses — (722,900) — (5,834) (728,734) Operating loss — (130,242) — (5,834) (132,335) Other income (expenses) Interest income 76,081 170,819 — 1,516 248,416 Interest expense (569,810) (212,568) — — (782,378) Other income, Net (188,615) (2,630) 1,309,182 — 1,117,937 Total other (expenses) income (682,344) (44,379) 1,309,182 1,516 583,975 Income (loss) before income taxes (682,344) (174,621) 1,309,182 (4,318) 451,640 Income tax (250,864) — — — (250,864) Net Income(loss) $ (933,208) $ (174,621) $ 1,309,182 $ (4,318) $ 200,776 Six Months Ended June 30, 2023 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 202,009 $ 12,574,657 $ — $ — $ 12,776,666 Cost of revenues (447,680) (10,689,255) — — (11,136,935) Gross profit (245,671) 1,885,402 — — 1,639,731 Operating expenses (86,428) (854,171) — — (940,599) General and administrative expenses (575,633) (598,159) — (366,800) (1,540,592) Operating loss (907,732) 433,072 — (366,800) (841,460) Other income (expenses) Interest income 16,853 300,334 — 178,234 495,420 Interest expense — (212,568) — (1,151,477) (1,364,044) Other income, Net 362,241 (2,913) 25,468 — 384,796 Total other (expenses) income 379,094 84,853 25,468 (973,243) (483,828) Income (loss) before income taxes (528,638) 517,925 25,468 (1,340,043) (1,325,288) Income tax (361,315) — — — (361,315) Net Income(loss) $ (889,953) $ 517,925 $ 25,468 $ (1,340,043) $ (1,686,603) Three Months Ended June 30, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 14,496 $ 34,625,035 $ — $ — $ 34,639,531 Cost of revenues 153,943 (30,239,202) — — (30,085,259) Gross profit 168,440 4,385,832 — — 4,554,272 Operating expenses (1,986) (221,170) — — (223,156) General and administrative expenses (410,539) (529,976) — (5,834) 113,603 Operating loss (244,085) 4,694,638 — (5,834) 4,444,719 Other income (expenses) Interest income (8,383) 218,526 — 1,516 211,659 Interest expense 678,941 (1,261,677) — — (582,736) Other income, Net (1,951,556) (45,358) 191,245 — (1,805,669) Total other (expenses) income (1,280,998) (1,088,509) 191,245 1,516 (2,176,746) Income (loss) before income taxes (1,525,084) 3,606,129 191,245 (4,318) 2,267,973 Income tax (1,333,194) — — — (1,333,194) Net Income(loss) $ (2,858,278) $ 3,606,129 $ 191,245 $ (4,318) $ 934,779 Six Months Ended June 30, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 202,264 $ 45,677,672 $ — $ — $ 45,879,936 Cost of revenues (520,197) (40,224,857) — — (40,745,054) Gross profit (317,933) 5,452,815 — — 5,134,882 Operating expenses (408,210) (544,375) — — (952,585) General and administrative expenses (593,154) (893,967) — (301,579) (1,788,700) Operating loss (1,319,297) 4,014,473 — (301,579) 2,393,597 Other income (expenses) Interest income 5,691 460,939 — 501 467,131 Interest expense 1,350,322 (3,695,194) — — (2,344,872) Other income, Net (1,782,544) (54,579) 82,766 — (1,754,357) Total other (expenses) income (426,531) (3,288,834) 82,766 501 (3,632,098) Income (loss) before income taxes (1,745,829) 725,639 82,766 (301,078) (1,238,501) Income tax (1,333,212) — — — (1,333,212) Net Income(loss) $ (3,079,041) $ 725,639 $ 82,766 $ (301,078) $ (2,571,713) Property Brokerage Real Estate Investment Services Development Transaction Others Total As of June 30, 2023 Real estate property under development $ — $ 117,569,883 $ — $ — $ 117,569,883 Total assets 14,376,766 145,225,314 23,201,682 74,418,625 257,222,387 As of June 30, 2022 Real estate property under development — 144,238,751 — — 144,238,751 Total assets $ 20,470,992 $ 182,241,498 $ 28,139,219 $ 68,245,158 $ 299,096,867 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 22 – RELATED PARTY TRANSACTIONS None. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2023 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | NOTE 23 - 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, 2023, 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, 2023 | |
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, 2023 and December 31, 2022 are $1: RMB7.2258 and $1: RMB6.9646, 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(“sqm”) for the purpose of developing villa-style residential housing. The LYSY project is divided into three phases. Phase 1 completed construction of 121 units in May 2015 and sold 119 units by the end of July 31, 2023. Phase 2 was divided into north and south areas and completed construction of 84 units as of the end of 2020. All In October 2018, HATX purchased property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. 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 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 units out of 873 units 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. |
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 February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed 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, 2023 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Schedule of major subsidiaries and equity investments | % of Ownership Relationship Date of Place of held by the with the Company Name Incorporation Incorporation Company Company Principal 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 Shangyang International Pte.Ltd (“SYSG”) August 19, 2022 Singapore 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 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 Shanghai Taobuting Media Co., Ltd (TBT) July 1, 2020 PRC 7.5% Subsidiary Streaming platform 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, 2023 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
Schedule of other receivables and deposit | June 30, December 31, 2023 2022 Advances to staff $ 320,856 372,262 Rental deposits 709,260 735,860 Prepaid expense 493,603 28,153 Prepaid tax 7,279,391 7,783,185 Other receivables 4,456,037 1,859,000 $ 13,259,147 $ 10,733,460 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | June 30, December 31, 2023 2022 Furniture and fixtures $ 255,329 $ 233,960 Computer and office equipment 63,679 135,163 Motor vehicles 720,176 747,185 Properties 2,093,812 2,172,338 3,132,996 3,278,646 Less: Accumulated depreciation (2,313,863) (2,277,569) $ 819,133 $ 1,001,077 |
INVESTMENT PROPERTIES, NET (Tab
INVESTMENT PROPERTIES, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INVESTMENT PROPERTIES, NET | |
Schedule of investment properties, net | June 30, December 31, 2023 2022 Investment properties $ 32,161,696 $ 33,367,887 Less: Accumulated depreciation (11,002,253) (10,694,748) $ 21,159,443 $ 22,673,139 |
AMOUNTS DUE TO DIRECTORS (Table
AMOUNTS DUE TO DIRECTORS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
AMOUNTS DUE TO DIRECTORS | |
Schedule of amounts due to directors | June 30, December 31, 2023 2022 Lin Chi-Jung $ 484,213 $ 459,299 Lin Hsin-Hung 20,060 20,811 $ 504,273 $ 480,109 (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 EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | June 30, December 31, 2023 2022 Accrued staff commission and bonus $ 62,374 $ 185,124 Rental deposits received 152,799 164,566 Bid bond 87,188 90,457 Dividends payable to non-controlling interest 186,214 193,198 Other payables 6,726,422 6,954,170 $ 7,214,997 $ 7,587,515 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of operating lease obligations maturity | Amount Within one year $ 10,843 Two to five years — $ 10,843 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of the company's operating segments | Three Months Ended June 30, 2023 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ — $ 7,042,904 $ — $ — $ 7,042,904 Cost of revenues — (5,956,385) — — (5,956,385) Gross profit — 1,086,519 — — 1,086,519 Operating expenses — (493,861) — — (490,120) General and administrative expenses — (722,900) — (5,834) (728,734) Operating loss — (130,242) — (5,834) (132,335) Other income (expenses) Interest income 76,081 170,819 — 1,516 248,416 Interest expense (569,810) (212,568) — — (782,378) Other income, Net (188,615) (2,630) 1,309,182 — 1,117,937 Total other (expenses) income (682,344) (44,379) 1,309,182 1,516 583,975 Income (loss) before income taxes (682,344) (174,621) 1,309,182 (4,318) 451,640 Income tax (250,864) — — — (250,864) Net Income(loss) $ (933,208) $ (174,621) $ 1,309,182 $ (4,318) $ 200,776 Six Months Ended June 30, 2023 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 202,009 $ 12,574,657 $ — $ — $ 12,776,666 Cost of revenues (447,680) (10,689,255) — — (11,136,935) Gross profit (245,671) 1,885,402 — — 1,639,731 Operating expenses (86,428) (854,171) — — (940,599) General and administrative expenses (575,633) (598,159) — (366,800) (1,540,592) Operating loss (907,732) 433,072 — (366,800) (841,460) Other income (expenses) Interest income 16,853 300,334 — 178,234 495,420 Interest expense — (212,568) — (1,151,477) (1,364,044) Other income, Net 362,241 (2,913) 25,468 — 384,796 Total other (expenses) income 379,094 84,853 25,468 (973,243) (483,828) Income (loss) before income taxes (528,638) 517,925 25,468 (1,340,043) (1,325,288) Income tax (361,315) — — — (361,315) Net Income(loss) $ (889,953) $ 517,925 $ 25,468 $ (1,340,043) $ (1,686,603) Three Months Ended June 30, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 14,496 $ 34,625,035 $ — $ — $ 34,639,531 Cost of revenues 153,943 (30,239,202) — — (30,085,259) Gross profit 168,440 4,385,832 — — 4,554,272 Operating expenses (1,986) (221,170) — — (223,156) General and administrative expenses (410,539) (529,976) — (5,834) 113,603 Operating loss (244,085) 4,694,638 — (5,834) 4,444,719 Other income (expenses) Interest income (8,383) 218,526 — 1,516 211,659 Interest expense 678,941 (1,261,677) — — (582,736) Other income, Net (1,951,556) (45,358) 191,245 — (1,805,669) Total other (expenses) income (1,280,998) (1,088,509) 191,245 1,516 (2,176,746) Income (loss) before income taxes (1,525,084) 3,606,129 191,245 (4,318) 2,267,973 Income tax (1,333,194) — — — (1,333,194) Net Income(loss) $ (2,858,278) $ 3,606,129 $ 191,245 $ (4,318) $ 934,779 Six Months Ended June 30, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 202,264 $ 45,677,672 $ — $ — $ 45,879,936 Cost of revenues (520,197) (40,224,857) — — (40,745,054) Gross profit (317,933) 5,452,815 — — 5,134,882 Operating expenses (408,210) (544,375) — — (952,585) General and administrative expenses (593,154) (893,967) — (301,579) (1,788,700) Operating loss (1,319,297) 4,014,473 — (301,579) 2,393,597 Other income (expenses) Interest income 5,691 460,939 — 501 467,131 Interest expense 1,350,322 (3,695,194) — — (2,344,872) Other income, Net (1,782,544) (54,579) 82,766 — (1,754,357) Total other (expenses) income (426,531) (3,288,834) 82,766 501 (3,632,098) Income (loss) before income taxes (1,745,829) 725,639 82,766 (301,078) (1,238,501) Income tax (1,333,212) — — — (1,333,212) Net Income(loss) $ (3,079,041) $ 725,639 $ 82,766 $ (301,078) $ (2,571,713) Property Brokerage Real Estate Investment Services Development Transaction Others Total As of June 30, 2023 Real estate property under development $ — $ 117,569,883 $ — $ — $ 117,569,883 Total assets 14,376,766 145,225,314 23,201,682 74,418,625 257,222,387 As of June 30, 2022 Real estate property under development — 144,238,751 — — 144,238,751 Total assets $ 20,470,992 $ 182,241,498 $ 28,139,219 $ 68,245,158 $ 299,096,867 |
ORGANIZATION AND DESCRIPTION _3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 6 Months Ended | ||
Jun. 30, 2023 | May 27, 2020 | Oct. 31, 2011 | |
Wuhan Yuan Yu Long Real Estate Development Company Limited ("WHYYL") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Equity investment, Date of Incorporation | Dec. 28, 2009 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, % of Ownership held by the Company | 49% | ||
Equity investment, Principal Activity | Real estate development | ||
Shanghai Da Er Wei Trading Company Limited ("SHDEW") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Equity investment, Date of Incorporation | Jun. 06, 2013 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, Principal Activity | Import and export trading | ||
Zhong Ji Pu Fa Real Estate Company Limited (SHGXL) | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Equity investment, Date of Incorporation | Mar. 13, 2012 | ||
Equity investment, Place of Incorporation | PRC | ||
Equity investment, % of Ownership held by the Company | 100% | ||
Equity investment, Principal Activity | Real estate development. | ||
Sunrise Real Estate Development Group, Inc. (CY-SRRE) | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Apr. 30, 2004 | ||
Subsidiaries, Place of Incorporation | Cayman Islands | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Investment holding | ||
Lin Ray Yang Enterprise Limited ("LRY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Nov. 13, 2003 | ||
Subsidiaries, Place of Incorporation | British Virgin Islands | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Investment holding | ||
Shangyang International Pte.Ltd ("SYSG") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Aug. 19, 2022 | ||
Subsidiaries, Place of Incorporation | Singapore | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Investment holding | ||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited ("SHXJY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Aug. 20, 2001 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Property brokerage services | ||
Shanghai Shang Yang Real Estate consultation Company Limited ("SHSY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Feb. 05, 2004 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Property brokerage services | ||
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Nov. 24, 2006 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 75.25% | ||
Subsidiaries, Principal Activity | Property brokerage and management services | ||
Suzhou Xi Ji Yang Real Estate Consultation Company Limited ("SZXJY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Jun. 25, 2004 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 75% | ||
Subsidiaries, Principal Activity | Property brokerage services | ||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Oct. 13, 2011 | ||
Subsidiaries, percentage of Ownership held by the Company | 34% | 34% | |
Equity investment, Place of Incorporation | PRC | ||
Equity investment, Principal Activity | Real estate development | ||
Sanya Shang Yang Real Estate Consultation Company Limited ("SYSY") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Sep. 18, 2008 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Property brokerage services | ||
Shanghai Rui Jian Design Company Limited ("SHRJ") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Aug. 15, 2011 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Property brokerage services | ||
Linyi Rui Lin Construction and Design Company Limited ("LYRL") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Mar. 06, 2012 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | 34% | |
Subsidiaries, Principal Activity | Investment holding | ||
Shanghai Da Er Wei Trading Company Limited ("SHDEW") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, percentage of Ownership held by the Company | 19.91% | ||
Shanghai Hui Tian ("SHHT") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Jul. 25, 2014 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 100% | ||
Subsidiaries, Principal Activity | Investment holding | ||
Shanghai Taobuting MediaCo., Ltd. ("TBT") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Jul. 01, 2020 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 7.50% | ||
Subsidiaries, Principal Activity | Streaming platform | ||
Huaian Zhanbao Industrial Co., Ltd. ("HAZB") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Dec. 06, 2018 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage of Ownership held by the Company | 78.46% | ||
Equity investment, Principal Activity | Investment holding | ||
Huaian Tianxi Real Estate Development Co., Ltd ("HATX") | |||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||
Subsidiaries, Date of Incorporation | Oct. 31, 2018 | ||
Subsidiaries, Place of Incorporation | PRC | ||
Subsidiaries, percentage 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) | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2023 item | May 27, 2020 | Jun. 30, 2023 | Dec. 31, 2019 m² item | Nov. 30, 2019 | |
Shareholder Of Szsy | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Equity interest | 75.25% | ||||
SHDEW | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Percentage of ownership held by the company | 19.91% | 19.91% | 20.38% | ||
Shareholder Of Lysy | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Percentage of ownership held by the company | 46% | ||||
Shareholder Of Lysy | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Percentage of equity interest in subsidiary transferred to parent | 80% | ||||
Owners non controlling interest, ownership percentage | 46% | ||||
SHXJY | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Subsidiaries, percentage of Ownership held by the Company | 26% | ||||
Linyi Rui Lin Construction and Design Company Limited ("LYRL") | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Subsidiaries, percentage of Ownership held by the Company | 34% | 100% | |||
Linyi Rui Lin Construction and Design Company Limited ("LYRL") | Nanjing Longchang Real Estate Development Group | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Percentage of issued and outstanding shares received | 10% | ||||
HAZB | Phase 1 | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Number of Units | 679 | ||||
Area of Real Estate Property | m² | 82,218 | ||||
HAZB | Subsequent event | Phase 1 | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Number of Units | 679 | ||||
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Subsidiaries, percentage of Ownership held by the Company | 75.25% | ||||
SZSY | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Percentage of equity interest in subsidiary transferred to parent | 12.50% | ||||
SZXJY [Member] | |||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | |||||
Owners non controlling interest, ownership percentage | 49% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2023 item | Sep. 30, 2020 CNY (¥) m² | May 31, 2015 item | Mar. 31, 2021 item | Jun. 30, 2023 USD ($) item | Dec. 31, 2020 m² item | Dec. 31, 2019 m² item | Jun. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 m² | Mar. 31, 2012 m² | Oct. 31, 2011 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Foreign currency exchange rate translation | $ 1 | ¥ 7.2258 | $ 1 | ¥ 6.9646 | |||||||||||
Significant influence ownership interest (as of percentage) | 20% | ||||||||||||||
Phase 3 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of Units Pre Sold | 21 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Subsidiaries, percentage of Ownership held by the Company | 34% | 34% | 34% | ||||||||||||
Area of Real Estate Property | m² | 54,312 | 103,385 | |||||||||||||
Number of Phases | 3 | ||||||||||||||
Purchase of land | ¥ | ¥ 228,000,000 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 1 | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units | 121 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 1 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units sold | 119 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 2 | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units | 84 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 2 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units sold | 84 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 3 | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of Units Pre Sold | 21 | ||||||||||||||
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | Phase 3 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units | 51 | ||||||||||||||
Shanghai Da Er Wei Trading Company Limited ("SHDEW") | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Subsidiaries, percentage of Ownership held by the Company | 19.91% | 19.91% | |||||||||||||
HAZB | Phase 1 | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Area of Real Estate Property | m² | 82,218 | ||||||||||||||
Number of units | 679 | ||||||||||||||
HAZB | Phase 1 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units | 679 | ||||||||||||||
Number of units sold | 665 | ||||||||||||||
HAZB | Phase 2 | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Area of Real Estate Property | m² | 99,123 | ||||||||||||||
Number of units | 873 | ||||||||||||||
HAZB | Phase 2 | Subsequent event | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Number of units | 873 | ||||||||||||||
Number of units sold | 453 | ||||||||||||||
HAZB | Huai'an Project | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Subsidiaries, percentage of Ownership held by the Company | 100% | 78.46% | |||||||||||||
HATX | Huai'an Project | |||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Area of Real Estate Property | m² | 78,030 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
RESTRICTED CASH | ||
Restricted cash deposits | $ 45,789,248 | $ 43,869,156 |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Transactional Financial Assets | ||
Transactional financial assets | $ 10,282,449 | $ 10,960,511 |
Bank wealth management investment products | ||
Transactional Financial Assets | ||
Transactional financial assets | $ 10,282,449 | |
Minimum | Bank wealth management investment products | ||
Transactional Financial Assets | ||
Investment holdings, annualized rate of return | 2.08% | |
Maximum | Bank wealth management investment products | ||
Transactional Financial Assets | ||
Investment holdings, annualized rate of return | 2.70% |
REAL ESTATE PROPERTY UNDER DE_2
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details) | 12 Months Ended | ||||||
Jul. 31, 2023 item | Dec. 31, 2020 m² item | Dec. 31, 2019 m² item | Jun. 30, 2023 USD ($) m² | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 m² | |
Phase 1 | Subsequent event | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Number of villas sold | 119 | ||||||
Total number of villas | 121 | ||||||
Phase 1 | HAZB | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Number of units | 679 | ||||||
Area of real estate property | m² | 82,218 | ||||||
Phase 1 | HAZB | Subsequent event | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Number of units sold | 665 | ||||||
Number of units | 679 | ||||||
Phase 2 | Subsequent event | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Total number of villas | 84 | ||||||
Phase 2 | HAZB | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Number of units | 873 | ||||||
Area of real estate property | m² | 99,123 | ||||||
Phase 2 | HAZB | Subsequent event | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Number of units sold | 453 | ||||||
Number of units | 873 | ||||||
Phase 3 | Subsequent event | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Total number of villas | 51 | ||||||
Number of units pre sold | 21 | ||||||
Huai'an Project | HAZB | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Noncontrolling interest, ownership percentage by parent | 100% | 78.46% | |||||
Huai'an Project | HATX | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Area of real estate property | m² | 78,030 | ||||||
Linyi project | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Site area | m² | 103,385 | ||||||
Land use rights | |||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||
Real estate property under development totaled | $ | $ 117,569,883 |
OTHER RECEIVABLES AND DEPOSIT_3
OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
OTHER RECEIVABLES AND DEPOSITS, NET | ||
Advances to staff | $ 4,456,037 | $ 1,859,000 |
Rental deposits | 709,260 | 735,860 |
Prepaid expense | 493,603 | 28,153 |
Prepaid tax | 7,279,391 | 7,783,185 |
Other receivables and deposits, net | 13,259,147 | 10,733,460 |
Allowance for doubtful other receivables and deposits | 1,188,602 | 1,233,179 |
Employees [Member] | ||
OTHER RECEIVABLES AND DEPOSITS, NET | ||
Advances to staff | $ 320,856 | $ 372,262 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | $ 3,132,996 | $ 3,278,646 |
Less: Accumulated depreciation | (2,313,863) | (2,277,569) |
Property and equipment, net | 819,133 | 1,001,077 |
Furniture and fixtures | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 255,329 | 233,960 |
Computer and office equipment | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 63,679 | 135,163 |
Motor vehicles | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 720,176 | 747,185 |
Properties | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | $ 2,093,812 | $ 2,172,338 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
PROPERTY AND EQUIPMENT, NET | |||
Depreciation and amortization expense | $ 1,179,643 | $ 820,935 | |
Property and Equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Depreciation and amortization expense | $ 820,935 | $ 1,179,643 |
INVESTMENT PROPERTIES, NET (Det
INVESTMENT PROPERTIES, NET (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
INVESTMENT PROPERTIES, NET | ||
Investment properties | $ 32,161,696 | $ 33,367,887 |
Less: Accumulated depreciation | (11,002,253) | (10,694,748) |
Investment properties, net | $ 21,159,443 | $ 22,673,139 |
INVESTMENT PROPERTIES, NET - Ad
INVESTMENT PROPERTIES, NET - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
INVESTMENT PROPERTIES, NET | ||
Depreciation and amortization expense for investment properties | $ 1,061,518 | $ 774,249 |
INVESTMENT IN AND AMOUNT DUE _2
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2019 | Nov. 30, 2019 |
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | ||||
Investment in an unconsolidated affiliate | $ 12,290,133 | $ 12,751,061 | ||
SHDEW | ||||
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | ||||
Equity investment, % of Ownership held by the Company | 19.91% | 19.91% | 20.38% | |
Investment in an unconsolidated affiliate | $ 12,262,454 | |||
SHTX | ||||
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE | ||||
Investment in an unconsolidated affiliate | $ 27,679 |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
OTHER INVESTMENTS, NET | ||
Other investments | $ 629,100 | $ 652,693 |
Impairment charges on other investments | 0 | 0 |
ASU 2016-01 | ||
OTHER INVESTMENTS, NET | ||
Other investments | $ 629,100 | $ 652,693 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands | Apr. 04, 2020 USD ($) | Apr. 04, 2020 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
GOODWILL | ||||
Goodwill | $ 1,003,503 | $ 1,243,194 | ||
Nanjing Longchang | ||||
GOODWILL | ||||
Business combination, step acquisition, equity interest in acquiree, percentage | 10% | 10% | ||
Business combination, consideration transferred, other | $ 3,398,213 | ¥ 22,170 |
PROMISSORY NOTES PAYABLE (Detai
PROMISSORY NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
PROMISSORY NOTES PAYABLE | ||
Interest expenses related to promissory notes | $ 0 | |
Unsecured Notes Payable One | ||
PROMISSORY NOTES PAYABLE | ||
Outstanding principal and unpaid interest | 1,383,930 | $ 1,435,833 |
Unsecured Notes Payable Two | ||
PROMISSORY NOTES PAYABLE | ||
Outstanding principal and unpaid interest | 691,965 | $ 717,917 |
Principal amount | $ 691,965 | |
Interest rate | 0% |
AMOUNTS DUE TO DIRECTORS (Detai
AMOUNTS DUE TO DIRECTORS (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | $ 504,273 | $ 480,109 |
Lin Chi-Jung | ||
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | 484,213 | 459,299 |
Lin Hsin-Hung | ||
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | $ 20,060 | $ 20,811 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Accrued staff commission and bonus | $ 62,374 | $ 185,124 |
Rental deposits received | 152,799 | 164,566 |
Bid bond | 87,188 | 90,457 |
Dividends payable to non-controlling interest | 186,214 | 193,198 |
Other payables | 6,726,422 | 6,954,170 |
Other payables | $ 7,214,997 | $ 7,587,515 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
ACCOUNTS PAYABLE | ||
Accounts payable | $ 26,341,832 | $ 22,372,938 |
Linyi project | ||
ACCOUNTS PAYABLE | ||
Unpaid project development fees | 4,588,476 | |
HATX project | ||
ACCOUNTS PAYABLE | ||
Unpaid project development fees | $ 20,702,694 |
AMOUNT DUE TO AFFILIATES (Detai
AMOUNT DUE TO AFFILIATES (Details) | Jun. 30, 2023 USD ($) |
JXSY | |
AMOUNT DUE TO AFFILIATES | |
Amount due | $ 490,361 |
SHSJ, a shareholder of HATX | |
AMOUNT DUE TO AFFILIATES | |
Amount due | $ 48,641,031 |
CUSTOMER DEPOSITS (Details)
CUSTOMER DEPOSITS (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
CUSTOMER DEPOSITS | ||
Customer deposits | $ 32,760,936 | $ 34,742,361 |
Linyi project | ||
CUSTOMER DEPOSITS | ||
Customer deposits | 7,085,740 | |
HATX project | ||
CUSTOMER DEPOSITS | ||
Customer deposits | $ 25,638,714 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | ||
Rental expenses under operating leases | $ 57,414 | $ 115,172 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of operating lease obligations falling due (Details) | Jun. 30, 2023 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
Within one year | $ 10,843 |
Two to five years | 0 |
Operating lease obligations | $ 10,843 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
STATUTORY RESERVE | ||
Statutory reserve | $ 3,986,618 | $ 3,986,618 |
PRC corporate | ||
STATUTORY RESERVE | ||
Minimum percentage of profits after tax to be transferred to statutory reserve | 10% | |
Percentage on registered capital of statutory reserve maintenance | 50% | |
PRC subsidiary | ||
STATUTORY RESERVE | ||
Minimum percentage of profits after tax to be transferred to statutory reserve | 10% | |
Percentage on registered capital of statutory reserve maintenance | 50% | |
Statutory reserve | $ 3,986,618 | $ 3,986,618 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
SEGMENT INFORMATION | |||||
Net revenues | $ 7,042,904 | $ 34,639,531 | $ 12,776,666 | $ 45,879,936 | |
Cost of revenues | (5,956,385) | (30,085,259) | (11,136,935) | (40,745,054) | |
Gross profit | 1,086,519 | 4,554,272 | 1,639,731 | 5,134,882 | |
Operating expenses | (490,120) | (223,156) | (940,599) | (952,585) | |
General and administrative expenses | (728,734) | 113,603 | (1,540,592) | (1,788,700) | |
Operating loss | (132,335) | 4,444,719 | (841,460) | 2,393,597 | |
Other income (expenses) | |||||
Interest income | 248,416 | 211,659 | 495,420 | 467,131 | |
Interest expense | (782,378) | (582,736) | (1,364,044) | (2,344,872) | |
Other income, Net | 1,117,937 | (1,805,235) | 384,796 | (1,776,436) | |
Total other (expenses) income | 583,975 | (2,176,746) | (483,828) | (3,632,098) | |
Income (loss) before income taxes | 451,640 | 2,267,973 | (1,325,288) | (1,238,501) | |
Income tax | 250,864 | 1,333,194 | 361,315 | 1,333,212 | |
Net Income (loss) | 200,776 | 934,779 | (1,686,603) | (2,571,713) | |
Total assets | 257,222,387 | 257,222,387 | $ 274,094,594 | ||
Operating Segments | |||||
SEGMENT INFORMATION | |||||
Net revenues | 7,042,904 | 34,639,531 | 12,776,666 | 45,879,936 | |
Cost of revenues | (5,956,385) | (30,085,259) | (11,136,935) | (40,745,054) | |
Gross profit | 1,086,519 | 4,554,272 | 1,639,731 | 5,134,882 | |
Operating expenses | (490,120) | (223,156) | (940,599) | (952,585) | |
General and administrative expenses | (728,734) | 113,603 | (1,540,592) | (1,788,700) | |
Operating loss | (132,335) | 4,444,719 | (841,460) | 2,393,597 | |
Other income (expenses) | |||||
Interest income | 248,416 | 211,659 | 495,420 | 467,131 | |
Interest expense | (782,378) | (582,736) | (1,364,044) | (2,344,872) | |
Other income, Net | 1,117,937 | (1,805,669) | 384,796 | (1,754,357) | |
Total other (expenses) income | 583,975 | (2,176,746) | (483,828) | (3,632,098) | |
Income (loss) before income taxes | 451,640 | 2,267,973 | (1,325,288) | (1,238,501) | |
Income tax | 250,864 | 1,333,194 | 361,315 | 1,333,212 | |
Net Income (loss) | 200,776 | 934,779 | (1,686,603) | (2,571,713) | |
Real estate property under development | 117,569,883 | 144,238,751 | 117,569,883 | 144,238,751 | |
Total assets | 257,222,387 | 299,096,867 | 257,222,387 | 299,096,867 | |
Property Management | Operating Segments | |||||
SEGMENT INFORMATION | |||||
Net revenues | 0 | 14,496 | 202,009 | 202,264 | |
Cost of revenues | 0 | 153,943 | (447,680) | (520,197) | |
Gross profit | 0 | 168,440 | (245,671) | (317,933) | |
Operating expenses | 0 | (1,986) | (86,428) | (408,210) | |
General and administrative expenses | 0 | (410,539) | (575,633) | (593,154) | |
Operating loss | 0 | (244,085) | (907,732) | (1,319,297) | |
Other income (expenses) | |||||
Interest income | 76,081 | (8,383) | 16,853 | 5,691 | |
Interest expense | (569,810) | 678,941 | 1,350,322 | ||
Other income, Net | (188,615) | (1,951,556) | 362,241 | (1,782,544) | |
Total other (expenses) income | (682,344) | (1,280,998) | 379,094 | (426,531) | |
Income (loss) before income taxes | (682,344) | (1,525,084) | (528,638) | (1,745,829) | |
Income tax | 250,864 | 1,333,194 | 361,315 | 1,333,212 | |
Net Income (loss) | (933,208) | (2,858,278) | (889,953) | (3,079,041) | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | 14,376,766 | 20,470,992 | 14,376,766 | 20,470,992 | |
Real Estate Development | Operating Segments | |||||
SEGMENT INFORMATION | |||||
Net revenues | 7,042,904 | 34,625,035 | 12,574,657 | 45,677,672 | |
Cost of revenues | (5,956,385) | (30,239,202) | (10,689,255) | (40,224,857) | |
Gross profit | 1,086,519 | 4,385,832 | 1,885,402 | 5,452,815 | |
Operating expenses | (493,861) | (221,170) | (854,171) | (544,375) | |
General and administrative expenses | (722,900) | (529,976) | (598,159) | (893,967) | |
Operating loss | (130,242) | 4,694,638 | 433,072 | 4,014,473 | |
Other income (expenses) | |||||
Interest income | 170,819 | 218,526 | 300,334 | 460,939 | |
Interest expense | (212,568) | (1,261,677) | (212,568) | (3,695,194) | |
Other income, Net | (2,630) | (45,358) | (2,913) | (54,579) | |
Total other (expenses) income | (44,379) | (1,088,509) | 84,853 | (3,288,834) | |
Income (loss) before income taxes | (174,621) | 3,606,129 | 517,925 | 725,639 | |
Income tax | 0 | 0 | |||
Net Income (loss) | (174,621) | 3,606,129 | 517,925 | 725,639 | |
Real estate property under development | 117,569,883 | 144,238,751 | 117,569,883 | 144,238,751 | |
Total assets | 145,225,314 | 182,241,498 | 145,225,314 | 182,241,498 | |
Investment Transaction | Operating Segments | |||||
SEGMENT INFORMATION | |||||
Net revenues | 0 | 0 | |||
Cost of revenues | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Operating expenses | 0 | 0 | |||
General and administrative expenses | 0 | 0 | |||
Operating loss | 0 | 0 | |||
Other income (expenses) | |||||
Interest income | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Other income, Net | 1,309,182 | 191,245 | 25,468 | 82,766 | |
Total other (expenses) income | 1,309,182 | 191,245 | 25,468 | 82,766 | |
Income (loss) before income taxes | 1,309,182 | 191,245 | 25,468 | 82,766 | |
Income tax | 0 | 0 | |||
Net Income (loss) | 1,309,182 | 191,245 | 25,468 | 82,766 | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | 23,201,682 | 28,139,219 | 23,201,682 | 28,139,219 | |
Others | Operating Segments | |||||
SEGMENT INFORMATION | |||||
Net revenues | 0 | 0 | |||
Cost of revenues | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Operating expenses | 0 | 0 | |||
General and administrative expenses | (5,834) | (5,834) | (366,800) | (301,579) | |
Operating loss | (5,834) | (5,834) | (366,800) | (301,579) | |
Other income (expenses) | |||||
Interest income | 1,516 | 1,516 | 178,234 | 501 | |
Interest expense | 0 | 0 | (1,151,477) | ||
Other income, Net | 0 | 0 | |||
Total other (expenses) income | 1,516 | 1,516 | (973,243) | 501 | |
Income (loss) before income taxes | (4,318) | (4,318) | (1,340,043) | (301,078) | |
Income tax | 0 | 0 | |||
Net Income (loss) | (4,318) | (4,318) | (1,340,043) | (301,078) | |
Real estate property under development | 0 | 0 | 0 | 0 | |
Total assets | $ 74,418,625 | $ 68,245,158 | $ 74,418,625 | $ 68,245,158 |