Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 30, 2021 | Jun. 24, 2020 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | SUNRISE REAL ESTATE GROUP INC | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | No | ||
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 | 2020 | ||
Amendment Flag | false | ||
Trading Symbol | SRRE | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NONE | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 8,434,141.65 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 40,369,612 | $ 15,900,753 |
Restricted cash (Note 3) | 56,051,055 | 8,383,359 |
Transactional financial assets (Note 4) | 25,012,736 | 27,818,996 |
Accounts receivable | 77,464 | 24,407 |
Real estate property under development (Note 5) | 166,236,339 | 85,909,986 |
Amount due from unconsolidated affiliates (Note 9) | 549,986 | 257,633 |
Other receivables and deposits, net (Note 6) | 14,596,243 | 7,535,801 |
Total current assets | 302,893,435 | 145,830,935 |
Property and equipment, net (Note 7) | 1,384,776 | 1,203,850 |
Investment properties, net (Note 8) | 27,275,677 | 26,949,046 |
Deferred tax assets | 955,373 | 380,627 |
Investments in unconsolidated affiliates (Note 9) | 13,610,330 | 12,775,441 |
Other investments, net (Note 10) | 696,677 | 143,345 |
Goodwill (Note 11) | 1,690,029 | 0 |
Total assets | 348,506,297 | 187,283,244 |
Current liabilities | ||
Promissory notes payable (Note 12) | 1,532,591 | 1,433,445 |
Amounts due to directors (Note 13) | 23,409,364 | 1,472,995 |
Accounts payable (Note 14) | 20,448,001 | 4,347,678 |
Customer deposits (Note 15) | 116,163,946 | 21,702,494 |
Amount due to an affiliate (Note 16) | 31,438,576 | 504,802 |
Other payables and accrued expenses (Note 17) | 8,586,675 | 14,531,098 |
Other taxes payable | 452,528 | 382,209 |
Income Taxes payable (Note 18) | 1,028,220 | 1,037,349 |
Total current liabilities | 203,059,901 | 45,412,070 |
Long-term income tax payable (Note 18) | 2,588,213 | 2,933,308 |
Deferred government subsidy (Note 19) | 5,079,835 | 4,751,214 |
Total liabilities | 210,727,949 | 53,096,592 |
Commitments and contingencies (Note 21) | ||
Stockholders' equity | ||
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 68,691,925 and 68,691,925 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 686,919 | 686,919 |
Additional paid-in capital | 7,570,008 | 7,570,008 |
Statutory reserve (Note 20) | 3,986,618 | 3,194,604 |
Retained Earnings | 100,291,529 | 105,326,252 |
Accumulated other comprehensive income | 22,981,737 | 13,676,579 |
Total equity of Sunrise Real Estate Group, Inc. | 135,516,811 | 130,454,362 |
Non-controlling interests | 2,261,537 | 3,732,290 |
Total stockholders' equity | 137,778,348 | 134,186,652 |
Total liabilities and stockholders' equity | $ 348,506,297 | $ 187,283,244 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $ 5,891,567 | $ 32,989,778 |
Cost of revenues | (5,352,210) | (26,811,115) |
Gross profit | 539,357 | 6,178,663 |
Operating expenses | (3,699,065) | (3,080,061) |
General and administrative expenses | (24,624,930) | (10,047,005) |
Operating profit (loss) | (27,784,638) | (6,948,403) |
Other income (expenses) | ||
Interest income | 582,788 | 151,760 |
Interest expense | 48 | 0 |
Other income (loss) | 25,186,060 | 1,892,762 |
Total Other Income (Expenses) | 25,768,800 | 2,044,522 |
Income (loss) before income taxes | (2,015,838) | (4,903,881) |
Income taxes (Note 18) | (2,226,871) | 384,046 |
Net income | (4,242,709) | (4,519,835) |
Less: Net (income) loss attributable to non-controlling interests | 141,651 | 2,765,035 |
Net income attributable to shareholders of Sunrise Real Estate Group, Inc. | $ (4,242,709) | $ (1,754,800) |
Earnings per share - basic and fully diluted | $ (0.06) | $ (0.03) |
Weighted average common shares outstanding - Basic and fully diluted | 68,691,925 | 68,691,925 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income (loss) | $ (4,242,709) | $ (4,519,835) |
Foreign currency translation adjustment | 7,834,405 | 72,714 |
Discontinuation of the equity method for an investment | 0 | 21,003,196 |
Total comprehensive income (loss) | 3,591,696 | 16,556,075 |
Less: Comprehensive income attributable to non-controlling interests | 1,470,753 | (1,844,096) |
Total comprehensive income attributable to stockholders of Sunrise Real Estate Group, Inc. | $ 5,062,449 | $ 14,711,979 |
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 |
Balance at Dec. 31, 2018 | $ 686,919 | $ 7,570,008 | $ 3,194,604 | $ 106,727,897 | $ (2,790,200) | $ 1,888,194 | $ 117,277,423 |
Balance (in shares) at Dec. 31, 2018 | 68,691,925 | ||||||
Profit (loss) for the year | $ 0 | 0 | 0 | (1,754,800) | 0 | (2,765,035) | (4,519,835) |
Company purchase | 353,155 | 353,155 | |||||
Discontinuation of the equity method for an investment | 21,003,196 | 21,003,196 | |||||
Capital contribution from non-controlling interests of new consolidated subsidiaries | 0 | ||||||
Translation of foreign operations | (4,536,417) | 4,609,131 | 72,714 | ||||
Balance at Dec. 31, 2019 | $ 686,919 | 7,570,008 | 3,194,604 | 105,326,252 | 13,676,579 | 3,732,290 | 134,186,652 |
Balance (in shares) at Dec. 31, 2019 | 68,691,925 | ||||||
Profit (loss) for the year | $ 0 | 0 | 0 | (4,242,709) | 0 | 0 | (4,242,709) |
Company purchase | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Discontinuation of the equity method for an investment | 0 | ||||||
Capital contribution from non-controlling interests of new consolidated subsidiaries | 792,014 | (792,014) | 0 | ||||
Translation of foreign operations | 9,305,158 | (1,470,753) | 7,834,405 | ||||
Balance at Dec. 31, 2020 | $ 686,919 | $ 7,570,008 | $ 3,986,618 | $ 100,291,529 | $ 22,981,737 | $ 2,261,537 | $ 137,778,348 |
Balance (in shares) at Dec. 31, 2020 | 68,691,925 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (4,242,709) | $ (4,519,835) |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 2,546,065 | 1,674,980 |
Loss (gain) on disposal of property and equipment | 14,892 | 19,961 |
Bad debts | 0 | 2,516,286 |
Equity in net loss (gain) of unconsolidated affiliates | (23,869,057) | 0 |
Changes in assets and liabilities | ||
Accounts receivable | (48,464) | 208,780 |
Net cash from directors | 20,599,747 | (269,369) |
Real estate property under development | (70,177,884) | (47,252,768) |
Customer Deposits | 87,703,469 | (18,570,712) |
Amount due from unconsolidated affiliates | 4,785,080 | 3,019,435 |
Other receivables and deposits | (6,169,429) | 1,111,182 |
Deferred tax assets | (517,406) | (385,473) |
Accounts payable | 14,906,144 | (846,057) |
Other payables and accrued expenses | (6,556,485) | 13,789,573 |
Taxes payable | (421,399) | (21,909) |
Other taxes payable | 41,402 | 173,361 |
Net cash provided by (used in) operating activities | 18,593,966 | (49,352,565) |
Cash flows from investing activities | ||
Acquisition of property, plant and equipment | (355,886) | (288,496) |
Proceeds from disposal of property and equipment | 45,980 | 0 |
Capital injection to unconsolidated affiliates, net | (543,418) | 0 |
Acquisition of investment | (1,412,529) | 0 |
Transactional financial assets | 4,462,880 | 21,096,379 |
Dividend distribution of affiliates | 23,869,057 | 39,151,920 |
Net cash provided by investing activities | 26,066,084 | 59,959,803 |
Cash flows from financing activities | ||
Advances from an affiliate | 24,107,439 | 0 |
Dividends paid | 0 | (6,869,193) |
Restricted cash | (44,425,035) | (6,944,799) |
Net cash (used in) financing activities | (20,317,596) | (13,813,992) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 126,405 | 1,451,342 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 24,468,859 | (1,755,412) |
Cash, cash equivalents, and restricted cash at beginning of year | 15,900,753 | 17,656,165 |
Cash, cash equivalents, and restricted cash at end of year | 40,369,612 | 15,900,753 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 3,096,666 | 7,593 |
Interest paid | $ 0 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Sunrise Real Estate Group, Inc. (“ SRRE ”) and its subsidiaries (collectively referred to as “the Company”, “our” or “us”) was incorporated in Texas on October 10, 1996, under the name of Parallax Entertainment, Inc. (“ Parallax ”). On December 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc. filed Articles of Amendment with the Texas Secretary of State, changing its name to Sunrise Real Estate Group, Inc., effective May 23, 2006. As of December 31, 2020, the Company has the following 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 Shanghai XinJi Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100 % Subsidiary Property brokerage services Shanghai Shang Yang Investment Management Consultation Company Limited (“SHSY”) February 5, 2004 PRC 100 % Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25 % 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75 % Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34 % 2 Subsidiary Real estate development Wuhan GaoFengHui Consultation Company Limited (“WHGFH”) November 10, 2010 PRC 60 % Subsidiary Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100 % Subsidiary Property brokerage services Shanghai RuiJian 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 Shanghai XinJi Yang Real Estate Brokerage Company Limited (“SHXJYB”) January 28, 2013 PRC 75 % 3 Subsidiary Property brokerage services 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, 2014 PRC 100 % Property development, leasing Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91 % 4 Equity investment Import and export trading Shanghai HuiTian (“SHHT”) July 25, 2014 PRC 100 % Subsidiary Investment holding Huai’an Zhanbao Industrial Co., Ltd December 6, 2018 PRC 78.46 % Subsidiary Investment holding Huai’an Tianxi Real Estate Development Co., Ltd October 17, 2018 PRC 78.46 % Subsidiary Real estate development 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 the Company is entitled 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. On January 28, 2013, CY-SRRE, SZXJY and an unrelated party established a subsidiary in the PRC, SHXJYB, with CY-SRRE holding 15% equity interest and SZXJY holding 60% equity interest in SHXYJB. 4. In December 2019, SHDEW had an employee stock bonus where its employees received their issued shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91%. CY-SRRE was established in the Cayman Islands on April 30, 2004 as a limited liability company. CY-SRRE was wholly owned by Ace Develop Properties Limited (“Ace Develop”), a corporation, of which Lin Chi-Jung, an individual, is the principal and controlling shareholder. SHXJY was established in the People’s Republic of China (“PRC”) on August 20, 2001 as a limited liability company. SHXJY was originally owned by a Taiwanese company, of which the principal and controlling shareholder was Lin Chi-Jung. On June 8, 2004, all the fully paid up capital of SHXJY was transferred to CY-SRRE. On June 25, 2004, SHXJY and two individuals established a subsidiary, SZXJY in the PRC, at which point in time, SHXJY held a 90% equity interest in SZXJY. On August 9, 2005, SHXJY sold 10% equity interest in SZXJY to a company owned by a director of SZXJY and transferred 5% equity interest in SZXJY to CY-SRRE. Following the disposal and the transfer, CY-SRRE effectively held 80% equity interest in SZXJY. LRY was established in the British Virgin Islands on November 13, 2003 as a limited liability company. LRY was owned by Ace Develop, Planet Technology Corporation (“Planet Tech”) and Systems & Technology Corporation (“Systems Tech”). On February 5, 2004, LRY established a wholly owned subsidiary, SHSY in the PRC as a limited liability company. On August 31, 2004, SRRE, CY-SRRE and Lin Chi-Jung, an individual and agent for the beneficial shareholder of CY-SRRE, i.e., Ace Develop, entered into an exchange agreement under which SRRE issued 5,000,000 shares of common stock to the beneficial shareholder or its designees, in exchange for all outstanding capital stock of CY-SRRE. The transaction was closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of CY-SRRE and the principal and controlling shareholder of Ace Develop. Also on August 31, 2004, SRRE, LRY and Lin Chi-Jung, an individual and agent for beneficial shareholders of LRY, i.e., Ace Develop, Planet Tech and SystemsTech, entered into an exchange agreement under which SRRE issued 10,000,000 shares of common stock to the beneficial shareholders, or their designees, in exchange for all outstanding capital stock of LRY. The transaction was closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of LRY and the principal and controlling shareholder of Ace Develop. Regarding the 10,000,000 shares of common stock of SRRE issued in this transaction, SRRE issued 8,500,000 shares to Ace Develop, 750,000 shares to Planet Tech and 750,000 shares to Systems Tech. As a result of the acquisition, the former owners of CY-SRRE and LRY hold a majority interest in the combined entity. Generally accepted accounting principles require in certain circumstances that a company whose shareholders retain the majority voting interest in the combined business be treated as the acquirer for financial reporting purposes. Accordingly, the acquisition has been accounted for as a “reverse acquisition” arrangement whereby CY-SRRE and LRY are deemed to have purchased SRRE. However, SRRE remains the legal entity and the Registrant for Securities and Exchange Commission reporting purposes. All shares and per share data prior to the acquisition have been restated to reflect the stock issuance as a recapitalization of CY-SRRE and LRY. On January 10, 2005, LRY and a PRC third party established a subsidiary, SZGFH, a limited liability company in the PRC, with LRY holding 80% of the equity interest in SZGFH. On May 8, 2006, LRY acquired 20% of the equity interest in SZGFH from the third party. Following the acquisition, LRY effectively held 100% of the equity interest in SZGFH. The Company sold SZGFH in 2017. On November 24, 2006, CY-SRRE, SHXJY, a shareholder of SZXJY and a third party established a subsidiary, SZSY in the PRC, with CY-SRRE holding 12.5% equity interest, SHXJY holding 26% equity interest and the shareholder of SZXJY holding 12.5% equity interest in SZSY. At the date of incorporation, SRRE and the shareholder of SZXJY entered into a voting agreement that SRRE is entitled to exercise the voting right in respect of its 12.5% equity interest in SZSY. Following that, SRRE effectively holds 51% of the voting rights in SZSY. On September 24, 2007, CY-SRRE sold 5% equity interest in SZXJY to a company owned by a director of SZXJY. Following the disposal, CY-SRRE effectively holds 75% equity interest in SZXJY. In October 2011, SHXJY purchased 24% interest in Linyi Shang Yang Real Estate Consultation Company Limited (“ LYSY ”) and acquired approximately 103,385 square meters of land for the purpose of developing the land into villa-style residential housing. On March 6, 2012, SHXJY established a wholly-owned subsidiary, namely Linyi Rui Lin Construction and Design Company Limited (" LYRL "). SHXJY's 24% equity interest in LYSY was then transferred to LYRL. 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. The Company and a shareholder of LYSY, Zhang Shu Qin, who holds 46% equity interest in LYSY, entered into a voting agreement that the Company is entitled 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 March 6, 2012, SHXJY established a subsidiary in the PRC - LYRL. The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY. At the date of its incorporation, SHXJY transferred its 24% equity interest in LYSY to LYRL. On August 2014, all the equity interest in LYRL was transferred to SHRJ. On June 6, 2013, SHSY and LYRL together with 4 investors established a company, Shanghai Daerwei (“SHDEW”), in the PRC focusing on the cosmetics and skincare business. SHSY holds 12.6% equity interest and LYRL holds 7.3% equity interest in SHDEW. As the Company does not have significant influence in SHDEW , we adopted the alternative measurement accounting method for the SHDEW investment. On July 25, August 19 and October 15, 2014 respectively, the Company established three investment holding company separately, namely SHHT, SHSYTX and SZSYHT. These three companies were wholly owned subsidiary to the Company and have not commenced their operations. In the year 2017, SHSYTX has transferred its shares of 76.92% to other shareholders and has 19.9% as of 2020. SZSYHT has transferred all of its shares to other shareholders. In October 2018, HATX purchased the property in Huai'an, Qingjiang Pu district with an area of 78,030 square meters. In December 2018 we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and tis land usage rights to the Huaian property. The Huaian project, named Tianxi Times, started its first phase development in early 2019 with a GFA of 82,218 sqm totaling 679 units, and started its second phase in middle 2020 with a GFA of 99,123 sqm totaling 873 units. As of March 31, 2021, the Company pre-sold 673 out of 679 units of first phase and pre-sold 258 out of 873 of second phase. The principal activities of the Company are real estate development, including property marketing, leasing and management services in the PRC. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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 Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ U.S. GAAP ”). The 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 can exercise significant influence over operating and financial policies, are accounted for using the equity method. Use of Estimates The preparation of financial statements in accordance with U.S GAAP requires management 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification (“ ASC ”) 820, Fair Value Measurements and Disclosures (“ ASC 820 ”). It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1‑Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2‑Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3‑Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The Company values its investments in wealth management products using alternative pricing sources and models utilizing market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, promissory deposits, amount due from an unconsolidated affiliate, other receivables and deposits, deferred tax assets, bank loans, promissory notes payable, accounts payable, customer deposits, amounts due to directors, other payables and accrued expenses, other taxes payable and income taxes payable approximate their fair value based on the short-term maturity of these instruments. Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, other receivables and deposits, and amount due from an unconsolidated affiliate. The Company places its cash and cash equivalents with reputable financial institutions with high credit ratings. The Company conducts credit evaluations of customers and generally does not require collateral or other security from customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors relevant to determining the credit risk of specific customers. The amount of receivables ultimately not collected by the Company has generally been consistent with management’s expectations and the allowance established for doubtful accounts. Major Customers During the year ended December 31, 2020 and 2019, there was no single customer that represented more than 10% of our net revenues. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all high liquidity investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various banks in the PRC which are not insured or otherwise protected. Should any of these banks holding the Company’s cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds for any reason, the Company could lose the cash on deposit with that particular bank. Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“ $ ”) and their financial records are maintained and the financial statements prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliates in China is Renminbi (“ RMB ”) and their financial records and statements are maintained and prepared in RMB. Foreign currency transactions during the year are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. Gain and loss 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 year-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, year-end exchange rates are applied to the 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 are included as a component of accumulated other comprehensive income in shareholders’ equity. The exchange rates as of December 31, 2020 and December 31, 2019 were $1: RMB6.5249 and $1: RMB6.9762 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. Expenditures for land development, including cost of land use rights, deed tax, and 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. For the years ended December 31, 2020 and 2019, the Company had not recognized any impairment for real estate property under development. Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over the estimated useful lives of the assets as follows: Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 Maintenance, repairs and minor renewals are charged directly to the statement of operations as incurred. Additions and improvements are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations. Investment Properties, Net Investment properties are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over their respective estimated useful lives of 20 years. Significant additions that extend property lives are capitalized and are depreciated over their respective estimated useful lives. Routine maintenance and repair costs are expensed as incurred. Impairment of Long-lived Assets In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets" (“ ASC 360 ”), the Company is required to review its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment, investment properties and other assets, for recoverability when events or circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset’s expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There is no impairment of long-lived assets during the years ended December 31, 2020 and 2019. Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company's brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists. Customer Deposits Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized. Long Term Investments The Company accounts for long term investments in equities as follows. Investments 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 does 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 value of the investment that is other than temporary. During the years ended December 31, 2020 and 2019, the Company provided no allowance for impairment loss on investments in unconsolidated affiliates. Other Investments 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. During the year ended December 31, 2020 and 2019, the Company provided no allowance for impairment loss on other investments. Government Subsidies Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments. In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue. During 2012, the Company received no refundable government subsidy amount of $4,829,440 (RMB33, 175,416). The subsidy is given to reimburse the land acquisition costs and certain construction cost incurred for the Company’s property development project in Linyi, and is repayable if the Company fails to complete the subsidized property development project before the agreed date. The Company recorded the subsidy received as a deferred government subsidy. As of December 31, 2020, the Company’s deferred government subsidy amounted to $5,079,835 (2019: $4,751,214). 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. Comprehensive Income (Loss) In accordance with ASC 220‑10‑55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive loss during the years ended December 31, 2020 and 2019 were net loss and foreign currency translation adjustments. 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. Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ ASC 740 ”), which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company recognizes tax benefits that satisfy a greater than 50% probability threshold and provides for the estimated impact of interest and penalties for such tax benefits. The Company did not incur any interest or penalties related to potential underpaid income tax expenses during the years ended December 31, 2020 and 2019. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new accounting standard update which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The update eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and introduces a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted this new accounting standard on January 1, 2020, using the prospective method, and the adoption did not have a material impact on our consolidated financial statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" ("ASU 2018-18"). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606, "Revenue from Contracts with Customers" when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as customer revenue if the counterparty is not a customer for that transaction. On January 1, 2020, we adopted this standard and applied it retrospectively to January 1, 2018 when we initially adopted Topic 606. The adoption did not have an impact on our consolidated financial statements. New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED CASH | |
RESTRICTED CASH | NOTE 3 - RESTRICTED CASH The Company is required to maintain certain deposits with the bank for those home buyers that has applied for a housing loan from their bank. This deposit is a percentage to each home buyer’s bank loan for the purpose of purchasing in our project. Once we complete the handover to the buyer, these deposits become unrestricted. As of December 31, 2020 and December 31, 2019, the Company held cash deposits of $56,051,055 and $8,383,359, respectively. |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
TRANSACTIONAL FINANCIAL ASSETS | |
TRANSACTIONAL FINANCIAL ASSETS | NOTE 4 - TRANSACTIONAL FINANCIAL ASSETS As of December 31, 2020, we have $25,012,736 invested in bank wealth management investment products. The investments have short maturity periods and can be rolled into a maturity date of our choosing or automatically rolled into subsequent maturity period. The annualized rate of return may range from 3.15% to 4.4% depending on the amount and time period invested. |
REAL ESTATE PROPERTY UNDER DEVE
REAL ESTATE PROPERTY UNDER DEVELOPMENT | 12 Months Ended |
Dec. 31, 2020 | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | NOTE 5 - REAL ESTATE PROPERTY UNDER DEVELOPMENT Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 square meters for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012. We sold 119 of 121 Phase 1 villas and sold 16 units and pre-sold 71 villas out of all 88 units in Phase 2 as of March 31, 2021. In the first quarter of 2019, we purchased the property of HATX with the land use rights. As of December 31, 2020, land use rights included in real estate property under development totaled $166,236,339. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters. In December 2018 we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and tis land usage rights to the Huaian property. The Huaian project, named Tianxi Times, started its first phase development in early 2019 with a GFA of 82,218 sqm totaling 679 units, and started its second phase in middle 2020 with a GFA of 99,123 sqm totaling 873 units. As of March 31, 2021, the Company pre-sold 673 out of 679 units of first phase and pre-sold 258 out of 873 of second phase. |
OTHER RECEIVABLES AND DEPOSITS,
OTHER RECEIVABLES AND DEPOSITS, NET | 12 Months Ended |
Dec. 31, 2020 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
OTHER RECEIVABLES AND DEPOSITS, NET | NOTE 6 - OTHER RECEIVABLES AND DEPOSITS December 31, December 31, 2020 2019 Advances to staff $ 37,573 $ 19,172 Rental deposits 818,868 40,575 Prepaid expense 53,558 318,424 Prepaid tax 9,777,311 2,378,199 Other receivables 3,908,933 4,779,431 $ 14,596,243 $ 7,535,801 Other receivables and deposits as of December 31, 2020 are stated net of allowance for doubtful accounts of $503,814 (2019: $327,739). Other receivables of $3,462,504 mainly consists of $2,604,254 from Zhongji Pufa for our GXL project and $858,250 from Shanghai Wu Zhao Hao. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 - PROPERTY AND EQUIPMENT, NET December 31, December 31, 2020 2019 Furniture and fixtures $ 272,878 $ 175,150 Computer and office equipment 210,961 203,581 Motor vehicles 819,945 588,532 Properties 2,318,728 2,168,726 3,622,512 3,135,990 Less: Accumulated depreciation 2,237,736 1,932,140 $ 1,384,776 $ 1,203,850 During the year ended December 31, 2020, depreciation and amortization expense for property and equipment amounted to $3,199,986. |
INVESTMENT PROPERTIES, NET
INVESTMENT PROPERTIES, NET | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES, NET | |
INVESTMENT PROPERTIES, NET | NOTE 8 - INVESTMENT PROPERTIES, NET December 31, December 31, 2020 2019 Investment properties $ 35,616,482 $ 33,312,403 Less: Accumulated depreciation (8,340,805) (6,363,357) $ 27,275,677 $ 26,949,046 During the year ended December 31, 2020, depreciation and amortization expense for investment properties amounted to $2,936,213. |
INVESTMENT IN AND AMOUNT DUE FR
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | |
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | NOTE 9 - INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES The investments in unconsolidated affiliates primarily consist of SHDEW (19.91)%. As of December 31, 2020, the investment amount in SHDEW was $13,579,678. SHDEW was established in June 2013 with its business as a skincare and cosmetic company. SHDEW’s online Wechat stores had a membership of over ten million members as of March 31, 2021. SHDEW is developing its own skincare products as well as improving its online ecommerce platform. 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 developing its own online shopping platform where consumers can purchase its n cosmetics and skincare products as well as products imported into China. The online shopping platform has been in operation since 2017. In December 2019, SHDEW issued an employee stock bonus where many of its employee received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% thereby changing out accounting method for the SHDEW investment from the equity method to measurement alternative method going forward. |
OTHER INVESTMENTS, NET
OTHER INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and December 31, 2019, the carrying amount of the Company’s measurement alternative investments was $696,677 and $143,345, respectively. The Company performs impairment assessment of its investments under the measurement alternative whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. Impairment charges in connection with the measurement alternative investments of nil were recorded in others, net in the Consolidated Statements of Operations and Comprehensive Income/(Loss) for the years ended December 31, 2019 and 2020, respectively. In June of 2020, SHSY invested 7.0915% in Taobuting ("TBT"). TBT is a media company that provide content on live streaming platforms such as Douyin (China version of Tik Tok). On April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group in the amount of 22.17 million RMB ($3,398,213). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL | |
GOODWILL | NOTE 11 - GOODWILL In April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group in the amount of 22.17 million RMB ($3,398,213). The amount of $1,690,029 of goodwill is from the difference between the investment cost and book value. |
PROMISSORY NOTES PAYABLE
PROMISSORY NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
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 $1,532,591 and $1,433,445 as of December 31, 2020 and December 31, 2019, respectively. The promissory note with a principal as of December 31, 2020 amounting to $766,295 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2020, and December 31, 2019, the outstanding principal and unpaid interest related to this promissory note amounted to $766,295 and $716,723, respectively. The promissory note with a principal as of December 31, 2020 amounting to $766,295 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2020, and December 31, 2019, the outstanding principal and unpaid interest related to this promissory note amounted to $766,295 and $716,723, respectively. During the year ended December 31, 2020 and 2019, there were no interest expenses related to these promissory notes. |
AMOUNTS DUE TO DIRECTORS
AMOUNTS DUE TO DIRECTORS | 12 Months Ended |
Dec. 31, 2020 | |
Directors [Member] | |
AMOUNTS DUE TO DIRECTORS | NOTE 13 - AMOUNTS DUE TO DIRECTORS December 31, December 31, 2020 2019 Lin Chi-Jung $ 23,387,151 $ 1,469,315 Pan Yu-Jen — (28,669) Lin Hsin-Hung 22,213 32,349 $ 23,409,364 $ 1,472,995 (a) The balance due to Lin Chi-Jung consists of temporary advances. The balances are unsecured, interest-free and have no fixed term of repayment. (b) The balances due to Lin Hsin-Hung was unsecured, interest-free and have no fixed term of repayment. |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | NOTE 14 - ACCOUNTS PAYABLE As of December 31, 2020, and 2019, the balances of accounts payable were $20,448,001 and $4,347,678 respectively. The balance of accounts payable as of December 31, 2020 included unpaid development fee of Linyi project of $1,608,872 and HATX project of $17,466,356. The remaining balance was due to agents of the operating business. |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
CUSTOMER DEPOSITS | |
CUSTOMER DEPOSITS | NOTE 15 - 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 has started pre-sales in November 2013 and in the year of 2019, the Project has recognized its revenue along with customer deposit, as of December 31, 2020, the pre-sales amounted to $27,157,760. The HATX project has started pre-sales in December 2019, as of December 31, 2020 the pre-sales amounted to $88,897,550. |
AMOUNT DUE TO AFFILIATES
AMOUNT DUE TO AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
Due To Affiliate [Member] | |
Related Party Transaction [Line Items] | |
AMOUNT DUE TO AFFILIATES | NOTE 16 - AMOUNT DUE TO AFFILIATES As of December 31, 2020, the amount due to JXSY, in the amount of $539,165 was intercompany transfers for day-to-day operations. As of December 31, 2020, the amount due to Shanghai Shengji ("SHSJ") a shareholder of HATX, $30,899,411 and JXSY, $539,165, was an intercompany transfer for day-to- day operations. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 17 - OTHER PAYABLES AND ACCRUED EXPENSES December 31, December 31, 2020 2019 Accrued staff commission and bonus $ 241,718 $ 221,674 Rental deposits received 92,700 117,328 Bid bond 209,965 222,184 Other payables 7,836,075 13,777,035 Dividends payable to non-controlling interest 206,217 192,877 $ 8,586,675 $ 14,531,098 Other payables are advances from unrelated parties are unsecured, interest-free and have no fixed term of repayment. |
INCOME TAXES PAYABLE
INCOME TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES PAYABLE | |
INCOME TAXES PAYABLE | NOTE 18 - INCOME TAXES 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. The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering the corporate income tax rate to 21%, implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Toll Charge). As a fiscal-year taxpayer, certain provisions of the Tax Legislation impacted the Company in fiscal 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions will be effective starting at the beginning of fiscal 2019, including the implementation of a modified territorial tax system. The U.S. federal income tax rate reduction was effective as of January 1, 2018. Year Ended December 31, 2020 2019 Income /(loss) before income tax expense Income /(loss) from China operations $ 913,264 $ (4,541,266) Income /(loss) from non-China operations (456,468) (362,615) Total income /(loss) before income tax expense 456,797 (4,903,881) Income tax expense applicable to China operations Current tax 710 1,427 Deferred tax (517,407) (385,472) Subtotal income tax expense applicable to China operations (516,697) (384,046) Non-China income tax expense/(benefit) 2,743,568 — Total income tax expense $ 2,226,871 $ (384,046) In 2020, of the $456,468 income tax benefit, was for PRC tax, mainly attributable to the non-U.S. subsidiaries of the Company’s business operations and $0 was for U.S. corporate income tax, resulting primarily from a one-time transition tax recognized in the fourth quarter of 2017 that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company may make an election to pay the one-time transition tax over eight years commencing in April 2021 or pay in a single lump sum. Effective Tax Rate The following is reconciliation between the U.S. federal statutory rate and the Company’s effective tax rate: 2020 2019 PRC Statutory rate 25 % 25 % Effect of the U.S. Transition Tax under the 2017 TCJA — % — % Effect of income not taxable for PRC tax purposes 0.08 % (17.2) % Under (Over)-provision for income taxes in prior years 0.0 % — % Effective income tax rate 487.50 % 7.83 % Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities consist of the following: As of December 31, 2020 2019 Deferred tax assets: Net operating loss from operations $ 955,373 $ 380,627 Total deferred tax assets 955,373 380,627 Less: Valuation allowance — — Net deferred tax assets $ 955,373 $ 380,627 In assessing the reliability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or are utilized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are tested whether they are deductible or can be utilized, the Company recorded the deferred tax assets resulting from net operating loss carry forwards of $955,373 as of December 31, 2020 (2019: $380,627). The Company adopted ASC 740‑10‑25 Accounting for Uncertainty in Income Taxes and such adoption did not have any material impact on the accompanying consolidated financial statements. The Company is subject to income taxes in the PRC. Tax regulations are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. All tax positions taken, or expected to be taken, continue to be more likely than not ultimately settled at the full amount claimed. The Company’s tax filings are subject to the PRC tax bureau’s examination for a period up to five years. The Company is not currently under any examination by the PRC tax bureau. |
DEFERRED GOVERNMENT SUBSIDY
DEFERRED GOVERNMENT SUBSIDY | 12 Months Ended |
Dec. 31, 2020 | |
DEFERRED GOVERNMENT SUBSIDY | |
DEFERRED GOVERNMENT SUBSIDY | NOTE 19‑ DEFERRED GOVERNMENT SUBSIDY Deferred government subsidy consists of the cash subsidy provided by the local government. Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments. In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and are recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue. The Company has received refundable government subsidy of $5,079,835 as of December 31, 2020. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project according to the agreed schedules. The Company recorded the subsidy received as a deferred government subsidy. |
STATUTORY RESERVE
STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2020 | |
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 is 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 December 31, 2020, the Company’s statutory reserve fund was $3,986,618. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 21‑ 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 year ended December 31, 2020 and 2019 were $225,008 and$460,617, respectively. As of December 31, 2020, the Company had the following operating lease obligations falling due. Amount Year Ending Within one year $ — Two to five years — $ — |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 22‑ SEGMENT INFORMATION The Company’s Chief Executive Officer and Chief Operating 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: Year Ended December 31, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 750,101 $ 5,141,466 $ — $ — $ 5,891,567 Cost of revenues (1,137,718) (4,214,492) — — (5,352,210) Gross profit (387,617) 926,974 — — 539,357 Operating expenses (872,067) (2,826,998) — — (3,699,065) General and administrative expenses (22,856,012) (1,308,665) — (460,253) (24,624,930) Operating loss (24,115,696) (3,208,689) — (460,253) (27,784,638) Other income (expenses) Interest income 71,813 504,427 — 6,548 582,788 Interest expense (48) — — — (48) Other income, Net 883,416 16,021 24,286,623 — 25,186,060 Total other (expenses) income 955,181 520,448 24,286,623 6,548 25,768,800 Income (loss) before income taxes (23,160,515) (2,688,241) 24,286,623 (453,705) (2,015,838) Income tax 516,697 — — (2,743,568) (2,226,871) Net Income (loss) $ (22,643,818) $ (2,688,241) $ 24,286,623 $ (3,197,273) $ (4,242,709) Year Ended December 31, 2019 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 721,491 $ 32,268,287 $ — $ — $ 32,989,778 Cost of revenues (695,952) (26,115,163) — — (26,811,115) Gross profit 25,539 6,153,124 — — 6,178,663 Operating expenses (1,215,372) (1,864,438) — (251) (3,080,061) General and administrative expenses (3,867,873) (5,798,119) — (381,013) (10,047,005) Operating loss (5,057,706) (1,509,433) — (381,264) (6,948,403) Other income (expenses) Interest income 41,269 99,224 — 11,267 151,760 Interest expense — — — — Other income, Net 128,338 (45,978) 1,810,402 — 1,892,762 Total other (expenses) income 169,607 53,246 1,810,402 11,267 2,044,522 Income (loss) before income taxes (4,888,100) (1,456,187) 1,810,402 (369,997) (4,519,835) Income tax 384,046 — — — 384,046 Net Income (loss) $ (4,504,054) $ (1,456,187) $ 1,810,402 $ (369,997) $ (4,519,835) Property Brokerage Real Estate Investment* Services Development Transaction Others Total As of December 31, 2020 Real estate property under development $ — $ 166,236,339 $ — $ — $ 166,236,339 Total assets 6,360,885 208,385,676 39,319,743 94,439,993 348,506,297 As of December 31, 2019 Real estate property under development $ — $ 85,909,986 $ — $ — $ 85,909,986 Total assets 9,756,530 70,345,062 40,737,782 66,443,870 187,283,244 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 23 - RELATED PARTY TRANSACTIONS A related party is an entity that can control or significantly influence the management or operating policies of another entity to the extent one of the entities may be prevented from pursuing its own interests. A related party may also be any party the entity deals with that can exercise that control. The Company has received dividends from SHDEW in an amount of $24,244,813 in 2020. We rented an office of nearly 192 square meters in downtown Shanghai for displaying purpose from Mrs. Zhang Shuqing, our related party, for $183,910 in 2020. WHGFH has received revenue of sales service fee from WHYYL of $5,783 in 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 24 - SUBSEQUENT EVENTS On January 27 and March 3, 2021, the Company paid RMB150,000,000 in cash to Mr. Lin Chi-Jung (approximately USD21,167,305) authorized by the Board of Directors on April 27, 2020 for his contributions to the Company, including Mr. Lin's initiation and supervision of the Company's investment in Shanghai Da Er Wei Trading Company Limited ("SHDEW"). The Bonus is equivalent to 15% of the annual dividends received from SHDEW from 2016 through 2019. According to the Board Resolution of April 10, 2021, we plan to pay a cash dividend of $0.10 per share on June 10,2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ U.S. GAAP ”). The 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 can exercise significant influence over operating and financial policies, are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S GAAP requires management 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification (“ ASC ”) 820, Fair Value Measurements and Disclosures (“ ASC 820 ”). It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1‑Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2‑Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3‑Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The Company values its investments in wealth management products using alternative pricing sources and models utilizing market observable inputs, and accordingly the Company classifies the valuation techniques that use these inputs as Level 2. The carrying amounts reported in the accompanying consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, promissory deposits, amount due from an unconsolidated affiliate, other receivables and deposits, deferred tax assets, bank loans, promissory notes payable, accounts payable, customer deposits, amounts due to directors, other payables and accrued expenses, other taxes payable and income taxes payable approximate their fair value based on the short-term maturity of these instruments. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, other receivables and deposits, and amount due from an unconsolidated affiliate. The Company places its cash and cash equivalents with reputable financial institutions with high credit ratings. The Company conducts credit evaluations of customers and generally does not require collateral or other security from customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors relevant to determining the credit risk of specific customers. The amount of receivables ultimately not collected by the Company has generally been consistent with management’s expectations and the allowance established for doubtful accounts. |
Major Customers | Major Customers During the year ended December 31, 2020 and 2019, there was no single customer that represented more than 10% of our net revenues. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all high liquidity investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various banks in the PRC which are not insured or otherwise protected. Should any of these banks holding the Company’s cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds for any reason, the Company could lose the cash on deposit with that particular bank. |
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 are maintained and the financial statements prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliates in China is Renminbi (“ RMB ”) and their financial records and statements are maintained and prepared in RMB. Foreign currency transactions during the year are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. Gain and loss 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 year-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, year-end exchange rates are applied to the 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 are included as a component of accumulated other comprehensive income in shareholders’ equity. The exchange rates as of December 31, 2020 and December 31, 2019 were $1: RMB6.5249 and $1: RMB6.9762 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. Expenditures for land development, including cost of land use rights, deed tax, and 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. For the years ended December 31, 2020 and 2019, the Company had not recognized any impairment for real estate property under development. |
Capitalization of Interest | Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over the estimated useful lives of the assets as follows: Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 Maintenance, repairs and minor renewals are charged directly to the statement of operations as incurred. Additions and improvements are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations. |
Investment Properties, Net | Investment Properties, Net Investment properties are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over their respective estimated useful lives of 20 years. Significant additions that extend property lives are capitalized and are depreciated over their respective estimated useful lives. Routine maintenance and repair costs are expensed as incurred. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets" (“ ASC 360 ”), the Company is required to review its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment, investment properties and other assets, for recoverability when events or circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset’s expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There is no impairment of long-lived assets during the years ended December 31, 2020 and 2019. |
Goodwill | Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company's brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists. |
Customer Deposits | Customer Deposits Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized. |
Long Term Investments | Long Term Investments The Company accounts for long term investments in equities as follows. Investments 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 does 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 value of the investment that is other than temporary. During the years ended December 31, 2020 and 2019, the Company provided no allowance for impairment loss on investments in unconsolidated affiliates. Other Investments 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. During the year ended December 31, 2020 and 2019, the Company provided no allowance for impairment loss on other investments. |
Government Subsidies | Government Subsidies Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments. In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue. During 2012, the Company received no refundable government subsidy amount of $4,829,440 (RMB33, 175,416). The subsidy is given to reimburse the land acquisition costs and certain construction cost incurred for the Company’s property development project in Linyi, and is repayable if the Company fails to complete the subsidized property development project before the agreed date. The Company recorded the subsidy received as a deferred government subsidy. As of December 31, 2020, the Company’s deferred government subsidy amounted to $ |
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. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) In accordance with ASC 220‑10‑55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive loss during the years ended December 31, 2020 and 2019 were net loss and foreign currency translation adjustments. |
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. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ ASC 740 ”), which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company recognizes tax benefits that satisfy a greater than 50% probability threshold and provides for the estimated impact of interest and penalties for such tax benefits. The Company did not incur any interest or penalties related to potential underpaid income tax expenses during the years ended December 31, 2020 and 2019. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model. Accordingly, these financial assets are now presented at the net amount expected to be collected. This new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model. We adopted this standard as of January 1, 2020, using a modified-retrospective approach. Adoption of the standard did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued a new accounting standard update which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The update eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and introduces a requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted this new accounting standard on January 1, 2020, using the prospective method, and the adoption did not have a material impact on our consolidated financial statements. In November 2018, the FASB issued Accounting Standards Update No. 2018-18 "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" ("ASU 2018-18"). ASU 2018-18 clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606, "Revenue from Contracts with Customers" when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as customer revenue if the counterparty is not a customer for that transaction. On January 1, 2020, we adopted this standard and applied it retrospectively to January 1, 2018 when we initially adopted Topic 606. The adoption did not have an impact on our consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Schedule of consolidation entities nature of business | As of December 31, 2020, the Company has the following 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 Shanghai XinJi Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100 % Subsidiary Property brokerage services Shanghai Shang Yang Investment Management Consultation Company Limited (“SHSY”) February 5, 2004 PRC 100 % Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25 % 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75 % Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34 % 2 Subsidiary Real estate development Wuhan GaoFengHui Consultation Company Limited (“WHGFH”) November 10, 2010 PRC 60 % Subsidiary Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100 % Subsidiary Property brokerage services Shanghai RuiJian 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 Shanghai XinJi Yang Real Estate Brokerage Company Limited (“SHXJYB”) January 28, 2013 PRC 75 % 3 Subsidiary Property brokerage services 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, 2014 PRC 100 % Property development, leasing Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91 % 4 Equity investment Import and export trading Shanghai HuiTian (“SHHT”) July 25, 2014 PRC 100 % Subsidiary Investment holding Huai’an Zhanbao Industrial Co., Ltd December 6, 2018 PRC 78.46 % Subsidiary Investment holding Huai’an Tianxi Real Estate Development Co., Ltd October 17, 2018 PRC 78.46 % Subsidiary Real estate development 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 the Company is entitled 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. On January 28, 2013, CY-SRRE, SZXJY and an unrelated party established a subsidiary in the PRC, SHXJYB, with CY-SRRE holding 15% equity interest and SZXJY holding 60% equity interest in SHXYJB. 4. In December 2019, SHDEW had an employee stock bonus where its employees received their issued shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91%. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Property and Equipment Estimated useful lives | Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 |
OTHER RECEIVABLES AND DEPOSIT_2
OTHER RECEIVABLES AND DEPOSITS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER RECEIVABLES AND DEPOSITS, NET | |
Schedule of other receivables and deposit, net | December 31, December 31, 2020 2019 Advances to staff $ 37,573 $ 19,172 Rental deposits 818,868 40,575 Prepaid expense 53,558 318,424 Prepaid tax 9,777,311 2,378,199 Other receivables 3,908,933 4,779,431 $ 14,596,243 $ 7,535,801 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | December 31, December 31, 2020 2019 Furniture and fixtures $ 272,878 $ 175,150 Computer and office equipment 210,961 203,581 Motor vehicles 819,945 588,532 Properties 2,318,728 2,168,726 3,622,512 3,135,990 Less: Accumulated depreciation 2,237,736 1,932,140 $ 1,384,776 $ 1,203,850 |
INVESTMENT PROPERTIES, NET (Tab
INVESTMENT PROPERTIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES, NET | |
Schedule of investment properties, net | December 31, December 31, 2020 2019 Investment properties $ 35,616,482 $ 33,312,403 Less: Accumulated depreciation (8,340,805) (6,363,357) $ 27,275,677 $ 26,949,046 |
AMOUNTS DUE TO DIRECTORS (Table
AMOUNTS DUE TO DIRECTORS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of amount due to directors | December 31, December 31, 2020 2019 Lin Chi-Jung $ 23,387,151 $ 1,469,315 Pan Yu-Jen — (28,669) Lin Hsin-Hung 22,213 32,349 $ 23,409,364 $ 1,472,995 (a) The balance due to Lin Chi-Jung consists of temporary advances. The balances are unsecured, interest-free and have no fixed term of repayment. (b) The balances due to Lin Hsin-Hung was unsecured, interest-free and have no fixed term of repayment. |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | December 31, December 31, 2020 2019 Accrued staff commission and bonus $ 241,718 $ 221,674 Rental deposits received 92,700 117,328 Bid bond 209,965 222,184 Other payables 7,836,075 13,777,035 Dividends payable to non-controlling interest 206,217 192,877 $ 8,586,675 $ 14,531,098 |
INCOME TAXES PAYABLE (Tables)
INCOME TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES PAYABLE | |
Schedule of income tax rate reduction | Year Ended December 31, 2020 2019 Income /(loss) before income tax expense Income /(loss) from China operations $ 913,264 $ (4,541,266) Income /(loss) from non-China operations (456,468) (362,615) Total income /(loss) before income tax expense 456,797 (4,903,881) Income tax expense applicable to China operations Current tax 710 1,427 Deferred tax (517,407) (385,472) Subtotal income tax expense applicable to China operations (516,697) (384,046) Non-China income tax expense/(benefit) 2,743,568 — Total income tax expense $ 2,226,871 $ (384,046) |
Schedule of Effective Tax Rate | Effective Tax Rate The following is reconciliation between the U.S. federal statutory rate and the Company’s effective tax rate: 2020 2019 PRC Statutory rate 25 % 25 % Effect of the U.S. Transition Tax under the 2017 TCJA — % — % Effect of income not taxable for PRC tax purposes 0.08 % (17.2) % Under (Over)-provision for income taxes in prior years 0.0 % — % Effective income tax rate 487.50 % 7.83 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities consist of the following: As of December 31, 2020 2019 Deferred tax assets: Net operating loss from operations $ 955,373 $ 380,627 Total deferred tax assets 955,373 380,627 Less: Valuation allowance — — Net deferred tax assets $ 955,373 $ 380,627 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of operating lease obligations maturity | As of December 31, 2020, the Company had the following operating lease obligations falling due. Amount Year Ending Within one year $ — Two to five years — $ — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of the company's operating segments | The following tables show the operations of the Company’s operating segments: Year Ended December 31, 2020 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 750,101 $ 5,141,466 $ — $ — $ 5,891,567 Cost of revenues (1,137,718) (4,214,492) — — (5,352,210) Gross profit (387,617) 926,974 — — 539,357 Operating expenses (872,067) (2,826,998) — — (3,699,065) General and administrative expenses (22,856,012) (1,308,665) — (460,253) (24,624,930) Operating loss (24,115,696) (3,208,689) — (460,253) (27,784,638) Other income (expenses) Interest income 71,813 504,427 — 6,548 582,788 Interest expense (48) — — — (48) Other income, Net 883,416 16,021 24,286,623 — 25,186,060 Total other (expenses) income 955,181 520,448 24,286,623 6,548 25,768,800 Income (loss) before income taxes (23,160,515) (2,688,241) 24,286,623 (453,705) (2,015,838) Income tax 516,697 — — (2,743,568) (2,226,871) Net Income (loss) $ (22,643,818) $ (2,688,241) $ 24,286,623 $ (3,197,273) $ (4,242,709) Year Ended December 31, 2019 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 721,491 $ 32,268,287 $ — $ — $ 32,989,778 Cost of revenues (695,952) (26,115,163) — — (26,811,115) Gross profit 25,539 6,153,124 — — 6,178,663 Operating expenses (1,215,372) (1,864,438) — (251) (3,080,061) General and administrative expenses (3,867,873) (5,798,119) — (381,013) (10,047,005) Operating loss (5,057,706) (1,509,433) — (381,264) (6,948,403) Other income (expenses) Interest income 41,269 99,224 — 11,267 151,760 Interest expense — — — — Other income, Net 128,338 (45,978) 1,810,402 — 1,892,762 Total other (expenses) income 169,607 53,246 1,810,402 11,267 2,044,522 Income (loss) before income taxes (4,888,100) (1,456,187) 1,810,402 (369,997) (4,519,835) Income tax 384,046 — — — 384,046 Net Income (loss) $ (4,504,054) $ (1,456,187) $ 1,810,402 $ (369,997) $ (4,519,835) Property Brokerage Real Estate Investment* Services Development Transaction Others Total As of December 31, 2020 Real estate property under development $ — $ 166,236,339 $ — $ — $ 166,236,339 Total assets 6,360,885 208,385,676 39,319,743 94,439,993 348,506,297 As of December 31, 2019 Real estate property under development $ — $ 85,909,986 $ — $ — $ 85,909,986 Total assets 9,756,530 70,345,062 40,737,782 66,443,870 187,283,244 |
ORGANIZATION AND DESCRIPTION _3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Sunrise Real Estate Development Group Inc [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Apr. 30, 2004 |
Subsidiaries, Place of Incorporation | Cayman Islands |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Investment holding |
Lin Ray Yang Enterprise Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Nov. 13, 2003 |
Subsidiaries, Place of Incorporation | British Virgin Islands |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Investment holding |
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Aug. 20, 2001 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Property brokerage services |
Shanghai Shang Yang Real Estate consultation Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Feb. 5, 2004 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Property brokerage services |
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Nov. 24, 2006 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % 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 [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Jun. 25, 2004 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 75.00% |
Subsidiaries, Principal activity | Property brokerage services |
Linyi Shangyang Real Estate Development Company Limited | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Oct. 13, 2011 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 34.00% |
Subsidiaries, Principal activity | Real estate development |
WHGFH | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Nov. 10, 2010 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 60.00% |
Subsidiaries, Principal activity | Property brokerage services |
Sanya Shang Yang Real Estate Consultation Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Sep. 18, 2008 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Property brokerage services |
Shanghai Rui Jian Design Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Aug. 15, 2011 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Property brokerage services |
Linyi Rui Lin Construction and Design Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Mar. 6, 2012 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100.00% |
Subsidiaries, Principal activity | Investment holding |
Shanghai XinJi Yang Real Estate Brokerage Company Limited | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Jan. 28, 2013 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 75.00% |
Subsidiaries, Principal activity | Property brokerage services |
Wuhan Yuan Yu Long Real Estate Development Company Limited [Member] | |
Organization And Description Of Business [Line Items] | |
Equity investment, Date of Incorporation | Dec. 28, 2009 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 49.00% |
Equity investment, Principal activity | Real estate development |
Zhong Ji Pu Fa Real Estate Company Limited | |
Organization And Description Of Business [Line Items] | |
Equity investment, Date of Incorporation | Mar. 13, 2014 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 100.00% |
Equity investment, Principal activity | Property development, leasing |
Shanghai Hui Tian [Member] | |
Organization And Description Of Business [Line Items] | |
Equity investment, Date of Incorporation | Jul. 25, 2014 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 100.00% |
Equity investment, Principal activity | Investment holding |
SHDEW | |
Organization And Description Of Business [Line Items] | |
Equity investment, Date of Incorporation | Jun. 6, 2013 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 19.91% |
Equity investment, Principal activity | Import and export trading |
Huai'an Zhanbao Industrial Co., Ltd [Member] | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Dec. 6, 2018 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 78.46% |
Subsidiaries, Principal activity | Investment holding |
Huai'an Tianxi Real Estate Development Co., Ltd | |
Organization And Description Of Business [Line Items] | |
Subsidiaries, Date of Incorporation | Oct. 17, 2018 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 78.46% |
Subsidiaries, Principal activity | Real estate development |
ORGANIZATION AND DESCRIPTION _4
ORGANIZATION AND DESCRIPTION OF BUSINESS - Additional Information (Details) | Mar. 31, 2021item | May 27, 2020 | Mar. 06, 2012 | Oct. 13, 2011 | May 08, 2006 | Aug. 09, 2005 | Oct. 05, 2004shares | Aug. 31, 2004shares | Dec. 31, 2020m²item | Dec. 31, 2019 | Nov. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018m² | Oct. 31, 2018m² | Jun. 06, 2013 | Jan. 28, 2013 | Oct. 31, 2011m² | Sep. 24, 2007 | Nov. 24, 2006 | Jan. 10, 2005 | Jun. 25, 2004 |
Linyi Project | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 24.00% | ||||||||||||||||||||
Area of Land | 103,385 | 103,385 | |||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 24.00% | ||||||||||||||||||||
Shareholder Of Szsy [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 49.00% | ||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 26.00% | ||||||||||||||||||||
Ownership interest acquired | 12.50% | 12.50% | |||||||||||||||||||
Business Combination Transferred Equity Interest In Acquiree To Other Subsidiary | 75.25% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 12.50% | 12.50% | |||||||||||||||||||
Shareholder Of Lysy [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 46.00% | ||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 80.00% | 80.00% | |||||||||||||||||||
Ownership interest acquired | 46.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 46.00% | ||||||||||||||||||||
Subsequent event [Member] | Phase 1 villas | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Number of units | item | 679 | ||||||||||||||||||||
Number of units pre sold | item | 673 | ||||||||||||||||||||
Subsequent event [Member] | Phase 2 North | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Number of units | item | 873 | ||||||||||||||||||||
Number of units pre sold | item | 258 | ||||||||||||||||||||
SHDEW | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 19.91% | 20.38% | |||||||||||||||||||
Shareholder of SZXJY [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 80.00% | 90.00% | |||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 60.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 80.00% | 90.00% | |||||||||||||||||||
Shareholder of SHXJY [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 26.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 26.00% | ||||||||||||||||||||
Shareholder of CY SRRE [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15.00% | ||||||||||||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | ||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 75.25% | ||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Other Shareholder | 76.92% | ||||||||||||||||||||
Huai'an Zhanbao Industrial Co., Ltd [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | ||||||||||||||||||||
Linyi Rui Lin Construction and Design Company Limited [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||||||||||
Linyi Rui Lin Construction and Design Company Limited [Member] | Nanjing Longchang Real Estate Development Group | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 34.00% | ||||||||||||||||||||
Percentage of issued and outstanding shares received | 10.00% | ||||||||||||||||||||
Linyi Shangyang Real Estate Development Company Limited | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 34.00% | ||||||||||||||||||||
Linyi Shangyang Real Estate Development Company Limited | SHDEW | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 7.30% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 7.30% | ||||||||||||||||||||
SHSY | SHDEW | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 12.60% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 12.60% | ||||||||||||||||||||
HAZB | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 78.46% | ||||||||||||||||||||
HAZB | Phase 1 villas | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Area of real estate property | 82,218 | ||||||||||||||||||||
Number of units | item | 679 | ||||||||||||||||||||
HAZB | Phase 2 North | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Area of real estate property | 99,123 | ||||||||||||||||||||
Number of units | item | 873 | ||||||||||||||||||||
HAZB | Huai'an Project | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | ||||||||||||||||||||
Area of real estate property | 78,030 | ||||||||||||||||||||
HATX | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 100.00% | ||||||||||||||||||||
HATX | Huai'an Project | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||||||||||
Area of real estate property | 78,030 | ||||||||||||||||||||
SZXJY [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 10.00% | ||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 5.00% | ||||||||||||||||||||
Ownership interest acquired | 75.00% | ||||||||||||||||||||
Percentage Of Equity Interest Sold | 5.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 75.00% | ||||||||||||||||||||
SZXJY [Member] | Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 12.50% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 12.50% | ||||||||||||||||||||
SHXJY | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 24.00% | ||||||||||||||||||||
HAZB | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Area of real estate property | 78,030 | ||||||||||||||||||||
HATX | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Area of real estate property | 78,030 | ||||||||||||||||||||
SRRE [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 5,000,000 | ||||||||||||||||||||
SZSY [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 51.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 51.00% | ||||||||||||||||||||
Ace Develop Properties Limited [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 8,500,000 | ||||||||||||||||||||
System Tech [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 750,000 | ||||||||||||||||||||
Planet Tech [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 750,000 | 10,000,000 | |||||||||||||||||||
SZGFH [Member] | |||||||||||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||||||||||
Ownership interest acquired | 20.00% | 80.00% | |||||||||||||||||||
Percentage of voting rights acquired during the period | 100.00% | ||||||||||||||||||||
Percentage of additional equity interest acquired (as a percent) | 20.00% | 80.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2012CNY (¥) | Dec. 31, 2012USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||||||
Foreign Currency Exchange Rate Translation | ¥ 6.5249 | $ 1 | ¥ 6.9762 | $ 1 | ||||
Real Estate Investment Property Estimated Useful Lives | 20 years | |||||||
Impairment of long-lived assets | $ 0 | $ 0 | ||||||
Significant Influence Percentage Description | 20.00% | |||||||
Government Subsidies | ¥ 33,175,416 | $ 4,829,440 | ||||||
Proceeds From Government Subsidies | $ 5,079,835 | $ 4,751,214 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Furniture and fixtures | Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and fixtures | Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer and office equipment | Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer and office equipment | Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Motor vehicles | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Properties | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 56,051,055 | $ 8,383,359 |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities, Current | $ 25,012,736 | $ 27,818,996 |
Bank Wealth Management Investment Products [Member] | ||
Marketable Securities, Current | $ 25,012,736 | |
Maximum | Bank Wealth Management Investment Products [Member] | ||
Investment Holdings, Annualized Rate Of Return | 4.40% | |
Minimum | Bank Wealth Management Investment Products [Member] | ||
Investment Holdings, Annualized Rate Of Return | 3.15% |
REAL ESTATE PROPERTY UNDER DE_2
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details) | Mar. 31, 2021item | Dec. 31, 2020USD ($)m²item | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018m² | Oct. 31, 2011m² |
Phase 1 villas | Subsequent event [Member] | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Number of villas sold | 119 | |||||
Total number of villas | 121 | |||||
Number of units | 679 | |||||
Number of units pre sold | 673 | |||||
Phase 1 villas | HAZB | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Area of real estate property | m² | 82,218 | |||||
Number of units | 679 | |||||
Phase 2 North | Subsequent event [Member] | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Number of villas sold | 71 | |||||
Total number of villas | 88 | |||||
Number of units | 873 | |||||
Number of units pre sold | 258 | |||||
Phase 2 North | HAZB | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Area of real estate property | m² | 99,123 | |||||
Number of units | 873 | |||||
Huai'an Project | HAZB | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Area of real estate property | m² | 78,030 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.46% | |||||
Huai'an Project | HATX | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Area of real estate property | m² | 78,030 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |||||
Linyi Project | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Area of Land | m² | 103,385 | 103,385 | ||||
Land use rights | ||||||
Real Estate Property Under Development [Line Items] | ||||||
Finite-Lived Intangible Assets, Net | $ | $ 166,236,339 |
OTHER RECEIVABLES AND DEPOSIT_3
OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER RECEIVABLES AND DEPOSITS, NET | ||
Advances to staff | $ 37,573 | $ 19,172 |
Rental deposits | 818,868 | 40,575 |
Prepaid expense | 53,558 | 318,424 |
Prepaid tax | 9,777,311 | 2,378,199 |
Other receivables | 3,908,933 | 4,779,431 |
Other Receivables and Deposit, Net | $ 14,596,243 | $ 7,535,801 |
OTHER RECEIVABLES AND DEPOSIT_4
OTHER RECEIVABLES AND DEPOSITS, NET - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Receivables And Deposits [Line Items] | ||
Allowance for Doubtful Other Receivables, Current | $ 503,814 | $ 327,739 |
Other Receivables, Net, Current | 3,908,933 | $ 4,779,431 |
Shanghai Wu Zhao Hao | ||
Other Receivables And Deposits [Line Items] | ||
Other Receivables, Net, Current | 3,462,504 | |
Shanghai Wu Zhao Hao | GXL Project | ||
Other Receivables And Deposits [Line Items] | ||
Other Receivables, Net, Current | 858,250 | |
Shanghai Wu Zhao Hao and Zhongji Pufa | ||
Other Receivables And Deposits [Line Items] | ||
Other Receivables, Net, Current | $ 2,604,254 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,622,512 | $ 3,135,990 |
Less: Accumulated depreciation | (2,237,736) | (1,932,140) |
Property, Plant and Equipment, Net | 1,384,776 | 1,203,850 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 272,878 | 175,150 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 210,961 | 203,581 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 819,945 | 588,532 |
Properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,318,728 | $ 2,168,726 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2,546,065 | $ 1,674,980 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 3,199,986 |
INVESTMENT PROPERTIES, NET (Det
INVESTMENT PROPERTIES, NET (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
INVESTMENT PROPERTIES, NET | ||
Investment properties | $ 35,616,482 | $ 33,312,403 |
Less: Accumulated depreciation | (8,340,805) | (6,363,357) |
Investment Properties, Net | $ 27,275,677 | $ 26,949,046 |
INVESTMENT PROPERTIES, NET - Ad
INVESTMENT PROPERTIES, NET - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
INVESTMENT PROPERTIES, NET | |
Depreciation and amortization expense for investment properties | $ 2,936,213 |
INVESTMENT IN AND AMOUNT DUE _2
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 |
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | |||
Investments in unconsolidated affiliates (Note 9) | $ 13,610,330 | $ 12,775,441 | |
SHDEW | |||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 19.91% | ||
SHDEW | |||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | |||
Investments in unconsolidated affiliates (Note 9) | $ 13,579,678 | ||
Equity investment, % of Ownership held by the Company | 19.91% | 20.38% |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020 | Apr. 04, 2020CNY (¥) | Apr. 04, 2020USD ($) | |
Cost Method Investments | $ 696,677 | $ 143,345 | |||
Impairment loss on other investments | 0 | 0 | |||
Amount invested | 13,610,330 | 12,775,441 | |||
Accounting Standards Update 2016-01 [Member] | |||||
Cost Method Investments | $ 696,677 | $ 143,345 | |||
Taobuting | |||||
Equity investment, % of Ownership held by the Company | 7.0915% | ||||
Linyi Shangyang Real Estate Development Company Limited | Nanjing Longchang Real Estate Development Group | |||||
Equity investment, % of Ownership held by the Company | 10.00% | 10.00% | |||
Amount invested | ¥ 22,170 | $ 3,398,213 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands | Dec. 31, 2020USD ($) | Jun. 30, 2020 | Apr. 04, 2020CNY (¥) | Apr. 04, 2020USD ($) | Dec. 31, 2019USD ($) |
Goodwill [Line Items] | |||||
Amount invested | $ 13,610,330 | $ 12,775,441 | |||
Goodwill | $ 1,690,029 | $ 0 | |||
Taobuting | |||||
Goodwill [Line Items] | |||||
Equity investment, % of Ownership held by the Company | 7.0915% | ||||
Nanjing Longchang Real Estate Development Group | Linyi Shangyang Real Estate Development Company Limited | |||||
Goodwill [Line Items] | |||||
Equity investment, % of Ownership held by the Company | 10.00% | 10.00% | |||
Amount invested | ¥ 22,170 | $ 3,398,213 |
PROMISSORY NOTES PAYABLE (Detai
PROMISSORY NOTES PAYABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Interest expenses related to promissory notes | $ 0 | $ 0 |
Unsecured Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,532,591 | 1,433,445 |
Unsecured Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 766,295 | $ 716,723 |
Debt Instrument, Face Amount | $ 766,295 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.00% |
AMOUNTS DUE TO DIRECTORS (Detai
AMOUNTS DUE TO DIRECTORS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | $ 23,409,364 | $ 1,472,995 |
Lin Chi-Jung | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | 23,387,151 | 1,469,315 |
Pan Yu-Jen | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | (28,669) | |
Lin Hsin-Hung | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors | $ 22,213 | $ 32,349 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Payables And Accrued Expenses [Line Items] | ||
Accounts Payable, Current | $ 20,448,001 | $ 4,347,678 |
Linyi Project | ||
Other Payables And Accrued Expenses [Line Items] | ||
Unpaid Project Development Fees | 1,608,872 | |
HATX Project | ||
Other Payables And Accrued Expenses [Line Items] | ||
Unpaid Project Development Fees | $ 17,466,356 |
CUSTOMER DEPOSITS (Details)
CUSTOMER DEPOSITS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Customer Deposits, Current | $ 116,163,946 | $ 21,702,494 |
Linyi Project | ||
Customer Deposits, Current | 27,157,760 | |
HATX Project | ||
Customer Deposits, Current | $ 88,897,550 |
AMOUNT DUE TO AFFILIATES (Detai
AMOUNT DUE TO AFFILIATES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | $ 31,438,576 | $ 504,802 |
JXSY | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | 539,165 | |
SHSJ, a shareholder of HATX | ||
Related Party Transaction [Line Items] | ||
Due to Affiliate, Current | $ 30,899,411 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Accrued staff commission and bonus | $ 241,718 | $ 221,674 |
Rental deposits received | 92,700 | 117,328 |
Bid bond | 209,965 | 222,184 |
Other payables | 7,836,075 | 13,777,035 |
Dividends payable to non-controlling interest | 206,217 | 192,877 |
Other payables and accrued expenses | $ 8,586,675 | $ 14,531,098 |
INCOME TAXES PAYABLE (Details)
INCOME TAXES PAYABLE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax expense applicable to China operations | |||
Current tax | $ 456,797 | $ (4,903,881) | |
Income tax expense | $ 0 | 2,226,871 | (384,046) |
Prc Corporate [Member] | |||
Income /(loss) before income tax expense | |||
Income /(loss) before income tax expense | 913,264 | (4,541,266) | |
Income tax expense applicable to China operations | |||
Current tax | 710 | 1,427 | |
Deferred tax | (517,407) | (385,472) | |
Income tax expense | (516,697) | (384,046) | |
Non-China Operations [Member] | |||
Income /(loss) before income tax expense | |||
Income /(loss) before income tax expense | (456,468) | (362,615) | |
Income tax expense applicable to China operations | |||
Income tax expense | $ 2,743,568 | $ 0 |
INCOME TAXES PAYABLE - Effectiv
INCOME TAXES PAYABLE - Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES PAYABLE | ||
PRC Statutory rate | 25.00% | 25.00% |
Effect of income not taxable for PRC tax purposes | 0.08% | (17.20%) |
Under (Over)-provision for income taxes in prior years | 0.00% | |
Effective income tax rate | 487.50% | 7.83% |
INCOME TAXES PAYABLE - Deferred
INCOME TAXES PAYABLE - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss from operations | $ 955,373 | $ 380,627 |
Total deferred tax assets | 955,373 | 380,627 |
Less: Valuation allowance | 0 | 0 |
Net deferred tax assets | $ 955,373 | $ 380,627 |
INCOME TAXES PAYABLE - Addition
INCOME TAXES PAYABLE - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Payable [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | |
Income Tax Expense (Benefit) | $ 0 | $ 2,226,871 | $ (384,046) |
Operating Loss Carryforwards, Valuation Allowance | $ 0 | 955,373 | $ 380,627 |
CHINA | |||
Income Tax Payable [Line Items] | |||
Income Tax Expense (Benefit) | $ 456,468 |
DEFERRED GOVERNMENT SUBSIDY (De
DEFERRED GOVERNMENT SUBSIDY (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
DEFERRED GOVERNMENT SUBSIDY | ||
Deferred government subsidy | $ 5,079,835 | $ 4,751,214 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | ||
Statutory reserve | $ 3,986,618 | $ 3,194,604 |
Prc Corporate [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve | 10.00% | |
Statutory Reserve Maintenance Required, Percentage On Registered Capital | 50.00% | |
Prc Subsidiary [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve | 10.00% | |
Statutory Reserve Maintenance Required, Percentage On Registered Capital | 50.00% | |
Statutory reserve | $ 3,986,618 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2020USD ($) |
COMMITMENTS AND CONTINGENCIES | |
Within one year | $ 0 |
Two to five years | 0 |
Operating lease obligations | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | ||
Rental expenses under operating lease | $ 225,008 | $ 460,617 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 5,891,567 | $ 32,989,778 | |
Cost of revenues | (5,352,210) | (26,811,115) | |
Gross profit | 539,357 | 6,178,663 | |
Operating expenses | (3,699,065) | (3,080,061) | |
General and administrative expenses | (24,624,930) | (10,047,005) | |
Operating loss | (27,784,638) | (6,948,403) | |
Other income (expenses) | |||
Interest income | 582,788 | 151,760 | |
Other income, Net | 25,186,060 | 1,892,762 | |
Total other (expenses) income | 25,768,800 | 2,044,522 | |
Income tax | $ 0 | (2,226,871) | 384,046 |
Net Income( loss) | (4,242,709) | (4,519,835) | |
Total assets | 348,506,297 | 187,283,244 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 5,891,567 | 32,989,778 | |
Cost of revenues | (5,352,210) | (26,811,115) | |
Gross profit | 539,357 | 6,178,663 | |
Operating expenses | (3,699,065) | (3,080,061) | |
General and administrative expenses | (24,624,930) | (10,047,005) | |
Operating loss | 27,784,638 | 6,948,403 | |
Other income (expenses) | |||
Interest income | 582,788 | 151,760 | |
Interest expense | 48 | 0 | |
Other income, Net | (25,186,060) | (1,892,762) | |
Total other (expenses) income | 25,768,800 | 2,044,522 | |
Income (loss) before income taxes | (2,015,838) | (4,519,835) | |
Income tax | (2,226,871) | 384,046 | |
Net Income( loss) | (4,242,709) | (4,519,835) | |
Real estate property under development | 166,236,339 | 85,909,986 | |
Total assets | 348,506,297 | 187,283,244 | |
Property Brokerage Services [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 750,101 | 721,491 | |
Cost of revenues | (1,137,718) | (695,952) | |
Gross profit | (387,617) | 25,539 | |
Operating expenses | (872,067) | (1,215,372) | |
General and administrative expenses | (22,856,012) | (3,867,873) | |
Operating loss | 24,115,696 | 5,057,706 | |
Other income (expenses) | |||
Interest income | 71,813 | 41,269 | |
Interest expense | 48 | 0 | |
Other income, Net | (883,416) | (128,338) | |
Total other (expenses) income | 955,181 | 169,607 | |
Income (loss) before income taxes | (23,160,515) | (4,888,100) | |
Income tax | 516,697 | 384,046 | |
Net Income( loss) | (22,643,818) | (4,504,054) | |
Real estate property under development | 0 | 0 | |
Total assets | 6,360,885 | 9,756,530 | |
Real Estate Development [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 5,141,466 | 32,268,287 | |
Cost of revenues | (4,214,492) | (26,115,163) | |
Gross profit | 926,974 | 6,153,124 | |
Operating expenses | (2,826,998) | (1,864,438) | |
General and administrative expenses | (1,308,665) | (5,798,119) | |
Operating loss | 3,208,689 | 1,509,433 | |
Other income (expenses) | |||
Interest income | 504,427 | 99,224 | |
Interest expense | 0 | 0 | |
Other income, Net | (16,021) | 45,978 | |
Total other (expenses) income | 520,448 | 53,246 | |
Income (loss) before income taxes | (2,688,241) | (1,456,187) | |
Income tax | 0 | 0 | |
Net Income( loss) | (2,688,241) | (1,456,187) | |
Real estate property under development | 166,236,339 | 85,909,986 | |
Total assets | 208,385,676 | 70,345,062 | |
Investment Transaction [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
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 | (24,286,623) | (1,810,402) | |
Total other (expenses) income | 24,286,623 | 1,810,402 | |
Income (loss) before income taxes | 24,286,623 | 1,810,402 | |
Income tax | 0 | 0 | |
Net Income( loss) | 24,286,623 | 1,810,402 | |
Real estate property under development | 0 | 0 | |
Total assets | 39,319,743 | 40,737,782 | |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 0 | 0 | |
Cost of revenues | 0 | 0 | |
Gross profit | 0 | 0 | |
Operating expenses | 0 | (251) | |
General and administrative expenses | (460,253) | (381,013) | |
Operating loss | 460,253 | 381,264 | |
Other income (expenses) | |||
Interest income | 6,548 | 11,267 | |
Interest expense | 0 | 0 | |
Other income, Net | 0 | 0 | |
Total other (expenses) income | 6,548 | 11,267 | |
Income (loss) before income taxes | (453,705) | (369,997) | |
Income tax | (2,743,568) | 0 | |
Net Income( loss) | (3,197,273) | (369,997) | |
Real estate property under development | 0 | 0 | |
Total assets | $ 94,439,993 | $ 66,443,870 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)m² | |
SHDEW | |
Related Party Transaction [Line Items] | |
Dividends received | $ 24,244,813 |
Mrs. Zhang Shuqing | Rent expense | |
Related Party Transaction [Line Items] | |
Square meters rented | m² | 192 |
Related party transaction | $ 183,910 |
WHYYL | WHGFH | Revenue of sales service fee | |
Related Party Transaction [Line Items] | |
Related party transaction | $ 5,783 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent event [Member] | Mar. 03, 2021CNY (¥) | Jan. 27, 2021CNY (¥) | Jun. 10, 2021$ / shares | Mar. 03, 2021USD ($) | Jan. 27, 2021USD ($) |
Subsequent Event [Line Items] | |||||
Dividends Payable, Amount Per Share | $ 0.10 | ||||
SHDEW | |||||
Subsequent Event [Line Items] | |||||
Bonus Amount Equivalent To Percentage Of Annual Dividend | 15 | 15 | |||
Lin Chi-Jung | |||||
Subsequent Event [Line Items] | |||||
Bonus Paid In Cash | ¥ 150,000,000 | ¥ 150,000,000 | $ 21,167,305 | $ 21,167,305 |