Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Oct. 20, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | |||
Entity Registrant Name | SUNRISE REAL ESTATE GROUP INC | ||
Entity Central Index Key | 1083490 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | SRRE | ||
Entity Common Stock, Shares Outstanding | 48,691,925 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-13 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2013 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $2,453,568 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ||
Cash and cash equivalents | $3,503,510 | $934,123 |
Restricted cash (Note 3) | 246,895 | 1,352,319 |
Accounts receivable, net | 1,289,469 | 1,883,162 |
Promissory deposits (Note 4) | 754,482 | 1,038,899 |
Real estate property under development (Note 5) | 31,119,043 | 20,493,851 |
Amount due from an unconsolidated affiliate (Note 9) | 3,086,185 | 4,316,031 |
Other receivables and deposits, net (Note 6) | 204,557 | 353,775 |
Total current assets | 40,204,141 | 30,372,160 |
Property and equipment, net (Note 7) | 9,139,734 | 9,303,261 |
Investment properties, net (Note 8) | 6,137,819 | 6,401,469 |
Deferred tax assets (Note 15) | 469,400 | 189,375 |
Investment in an unconsolidated affiliate (Note 9) | 5,642,909 | 3,925,770 |
Other investments, net (Note 10) | 104,315 | 0 |
Total assets | 61,698,318 | 50,192,035 |
Current liabilities | ||
Short term borrowings (Note 11) | 18,616,018 | 17,627,874 |
Current portion of long term borrowings (Note 16 ) | 8,036,871 | 0 |
Promissory notes payable (Note 12) | 5,076,547 | 6,154,095 |
Amounts due to directors (Note 13) | 10,440,238 | 7,707,172 |
Accounts payable | 489,582 | 586,935 |
Customer deposits | 3,168,369 | 1,217,087 |
Other payables and accrued expenses (Note 14) | 3,001,581 | 4,129,155 |
Other taxes payable | 190,036 | 138,277 |
Income taxes payable (Note 15) | 190,152 | 150,614 |
Total current liabilities | 49,209,394 | 37,711,209 |
Long term borrowings (Note 16) | 3,444,374 | 0 |
Deferred government subsidy (Note 17) | 5,441,360 | 5,273,314 |
Deposits received from underwriting sales (Note 18) | 0 | 1,915,229 |
Total liabilities | 58,095,128 | 44,899,752 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity | ||
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 28,691,925 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 286,919 | 286,919 |
Additional paid-in capital | 4,570,008 | 4,570,008 |
Statutory reserve (Note 19) | 782,987 | 782,987 |
Accumulated losses | -14,668,376 | -13,500,082 |
Accumulated other comprehensive income | 172,214 | 359,183 |
Total deficit of Sunrise Real Estate Group, Inc. | -8,856,248 | -7,500,985 |
Non-controlling interests | 12,459,438 | 12,793,268 |
Total stockholders’ equity | 3,603,190 | 5,292,283 |
Total liabilities and stockholders’ equity | $61,698,318 | $50,192,035 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 28,691,925 | 28,691,925 |
Common stock, shares outstanding | 28,691,925 | 28,691,925 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenues | $12,763,447 | $8,529,990 |
Cost of revenues | -4,841,337 | -4,894,833 |
Gross income | 7,922,110 | 3,635,157 |
Operating expenses | -2,148,198 | -1,401,659 |
General and administrative expenses | -3,585,121 | -3,345,635 |
Operating income (loss) | 2,188,791 | -1,112,137 |
Other income (expenses) | ||
Interest income | 394,201 | 239,079 |
Interest expense | -3,763,555 | -2,420,375 |
Miscellaneous | 8,294 | 39,156 |
Total other expenses | -3,361,060 | -2,142,140 |
Loss before income taxes and equity in net loss of an unconsolidated affiliates | -1,172,269 | -3,254,277 |
Income taxes (Note 15) | 63,227 | 13,518 |
Equity in net loss of an unconsolidated affiliates, net of income taxes | -822,267 | -230,490 |
Net loss | -1,931,309 | -3,471,249 |
Less: Net loss attributable to non-controlling interests | 763,015 | 377,965 |
Net loss attributable to stockholders of Sunrise Real Estate Group, Inc. | ($1,168,294) | ($3,093,284) |
Loss per share - basic and fully diluted (in dollars per share) | ($0.04) | ($0.11) |
Weighted average common shares outstanding - Basic and fully diluted (in shares) | 28,691,925 | 28,691,925 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ($1,931,309) | ($3,471,249) |
Other comprehensive income - Foreign currency translation adjustment | 202,088 | 91,484 |
Total comprehensive loss | -1,729,221 | -3,379,765 |
Less: Comprehensive loss attributable to non-controlling interests | 373,958 | 156,205 |
Total comprehensive loss attributable to stockholders of Sunrise Real Estate Group, Inc. | ($1,355,263) | ($3,223,560) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Accumulated losses [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2011 | ($3,291,721) | $286,919 | $4,570,008 | $782,987 | ($10,406,798) | $489,459 | $985,704 |
Balance (in shares) at Dec. 31, 2011 | 28,691,925 | ||||||
Net loss | -3,471,249 | 0 | 0 | 0 | -3,093,284 | 0 | -377,965 |
Cash dividends paid to Non-controlling interests | -57,206 | 0 | 0 | 0 | 0 | 0 | -57,206 |
Capital contribution from non-controlling interests of new consolidated subsidiaries | 12,020,975 | 0 | 0 | 0 | 0 | 0 | 12,020,975 |
Translation of foreign Operations | 91,484 | 0 | 0 | 0 | 0 | -130,276 | 221,760 |
Balance at Dec. 31, 2012 | 5,292,283 | 286,919 | 4,570,008 | 782,987 | -13,500,082 | 359,183 | 12,793,268 |
Balance (in shares) at Dec. 31, 2012 | 28,691,925 | ||||||
Net loss | -1,931,309 | 0 | 0 | 0 | -1,168,294 | 0 | -763,015 |
Capital contribution from non-controlling interests of new consolidated subsidiaries | 40,128 | 0 | 0 | 0 | 0 | 0 | 40,128 |
Translation of foreign Operations | 202,088 | 0 | 0 | 0 | 0 | -186,969 | 389,057 |
Balance at Dec. 31, 2013 | $3,603,190 | $286,919 | $4,570,008 | $782,987 | ($14,668,376) | $172,214 | $12,459,438 |
Balance (in shares) at Dec. 31, 2013 | 28,691,925 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | ||
Net loss | ($1,931,309) | ($3,471,249) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 1,100,170 | 990,401 |
Gain on disposal of property and equipment | 5,377 | 16,541 |
Impairment loss on investments | 0 | 136,060 |
Impairment loss on receivables | 168,487 | 110,512 |
Equity in net loss of unconsolidated affiliates | 822,267 | 230,490 |
Changes in assets and liabilities | ||
Accounts receivable | 573,824 | -737,557 |
Promissory deposits | 312,150 | 2,503,644 |
Real estate property under development | -9,852,229 | -20,411,691 |
Other receivables and deposits | 58,497 | 429,589 |
Deferred tax assets | -270,351 | -188,616 |
Accounts payable | -113,903 | 103,597 |
Customer deposits | 1,887,008 | 0 |
Other payables and accrued expenses | -1,915,229 | 1,777,523 |
Deposits received from underwriting sales | -1,092,737 | -1,179,216 |
Deferred government subsidy | 0 | 5,252,173 |
Interest payable on promissory notes | 234,169 | 199,531 |
Interest payable on amounts due to directors | 561,714 | 629,223 |
Other taxes payable | 46,819 | 68,430 |
Income taxes payable | 34,394 | -73,957 |
Net cash used in operating activities | -9,370,882 | -13,614,572 |
Cash flows from investing activities | ||
Purchase of other investments | -102,864 | -60,000 |
Purchases of property and equipment | -188,611 | -7,309,816 |
Proceeds from disposal of property and equipment | 0 | 66,315 |
Capital contribution to unconsolidated affiliates | -2,418,004 | 0 |
Advances to an unconsolidated affiliate | -1,773,230 | -3,981,811 |
Repayment of advances to unconsolidated affiliates | 2,760,378 | 0 |
Net cash used in investing activities | -1,722,331 | -11,285,312 |
Cash flows from financing activities | ||
Restricted cash | 1,131,294 | 0 |
Capital contribution from non-controlling interests of new consolidated subsidiaries | 40,128 | 12,020,975 |
New bank loans | 12,575,416 | 17,557,204 |
Repayments of bank loans | -854,483 | -11,092,096 |
Advances from directors | 9,675,873 | 3,275,746 |
Repayments of advances from directors | -7,782,605 | -1,406,188 |
Proceeds from new promissory notes | 1,132,151 | 7,599,132 |
Repayments of promissory notes | -2,607,596 | -3,390,857 |
Dividends paid to non-controlling interests | -145,101 | -79,233 |
Net cash provided by financing activities | 13,165,077 | 24,484,683 |
Effect of exchange rate changes on cash and cash equivalents | 497,523 | -27,769 |
Net increase (decrease) in cash and cash equivalents | 2,569,387 | -442,970 |
Cash and cash equivalents at beginning of year | 934,123 | 1,377,093 |
Cash and cash equivalents at end of year | 3,503,510 | 934,123 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 171,103 | 259,039 |
Interest, net of capitalized interest | $3,349,335 | $1,601,207 |
ORGANIZATION_AND_DESCRIPTION_O
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization and Description Of Business [Abstract] | ||||||||||||
Business Description and Basis of Presentation [Text Block] | 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 the name of Sunrise Real Estate Development Group, Inc. to Sunrise Real Estate Group, Inc., effective from May 23, 2006. | ||||||||||||
As of December 31, 2013, 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”) | 30-Apr-04 | Cayman Islands | 100% | Subsidiary | Investment holding | |||||||
Lin Ray Yang Enterprise Limited (“LRY”) | 13-Nov-03 | British Virgin Islands | 100% | Subsidiary | Investment holding | |||||||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) | 20-Aug-01 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Shanghai Shang Yang Investment Management and Consulting Company Limited (“SHSY”) *** | 5-Feb-04 | PRC | 100% | Subsidiary | Property brokerage services, investment management and consulting | |||||||
Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”) | 10-Jan-05 | PRC | 100% | Subsidiary | Property management and leasing services | |||||||
Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) | 24-Nov-06 | PRC | 38.5%* | Subsidiary | Property brokerage and management services | |||||||
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) | 25-Jun-04 | PRC | 75% | Subsidiary | Property brokerage services | |||||||
Linyi Shangyang Real Estate Development Company Limited (“LYSY”) | 13-Oct-11 | PRC | 24%** | Subsidiary | Real estate development | |||||||
Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”) | 20-Oct-10 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”) | 10-Nov-10 | PRC | 60% | Subsidiary | Property brokerage services | |||||||
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) | 18-Sep-08 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Shanghai Rui Jian Design Company Limited (“SHRJ”) | 15-Aug-11 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Linyi Rui Lin Construction and Design Company Limited (“LYRL”) | 6-Mar-12 | PRC | 100% | Subsidiary | Investment holding | |||||||
Putian Xin Ji Yang Real Estate Consultation Company Limited (“PTXJY”) | 5-Jun-12 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) | 28-Dec-09 | PRC | 49% | Equity investment | Real estate development | |||||||
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”) | 28-Sep-11 | PRC | 40% | Equity investment | Property brokerage services | |||||||
Xin Guang Investment Management and Consulting Company Limited (“XG”) | 17-Dec-12 | PRC | 49% | Equity investment | Investment management and consulting | |||||||
* | The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. | |||||||||||
** | The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. | |||||||||||
*** | It was formerly known as Shanghai Shang Yang Real Estate Consultation Co., Limited. The company changed its name to Shanghai Shang Yang Investment Management and Consulting Company Limited and extended its principal activities to investment management and consulting on May 28, 2013. | |||||||||||
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 a 10% equity interest in SZXJY to a company owned by a director of SZXJY, and transferred a 5% equity interest in SZXJY to CY-SRRE. Following the disposal and the transfer, CY-SRRE effectively held an 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 closed on October 5, 2004. Lin Chi-Jung is 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 Systems Tech, 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 is 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 holds 100% of the equity interest in SZGFH. | ||||||||||||
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 a 12.5% equity interest, SHXJY holding a 26% equity interest and the shareholder of SZXJY holding a 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% voting rights in SZSY. | ||||||||||||
On September 24, 2007, CY-SRRE sold a 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 January 2011, SYSY acquired 49% equity interest in a project company in the PRC, WHYYL to expand its operations to real estate development business. WHYYL is developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with an estimated construction period of 3 years. The Company accounts for this investment using the equity method. | ||||||||||||
On September 28, 2011, SRRE and four individual investors established a company, SHXXY, in the PRC to provide real estate brokerage services. SRRE holds 40% equity interest in SHXXY. | ||||||||||||
On October 13, 2011, SHXJY, four individual investors and an unrelated company established a project company in the PRC, namely LYSY to develop villa-style residential housing buildings with an estimated construction period of 4 years. SHXJY holds 24% equity interest in LYSY. At the date of its incorporation, SRRE and an individual shareholder holding 51% equity interest in LYSY entered into a voting agreement that the Company is entitled to exercise the voting right of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and 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 its incorporation, SHXJY transferred its 24% equity interest in LYSY to LYRL. | ||||||||||||
On December 17, 2012, LRY together with two corporate investors established a company, namely XG, in the PRC to provide investment management and consulting services. LRY holds 49% equity interest XG. XG has not commenced its operations. | ||||||||||||
The principal activities of the Company are property brokerage services, including property marketing, leasing and management services; and real estate development in the PRC. | ||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 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 has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. | ||||
Going Concern | ||||
The Company’s consolidated financial statements have been prepared on a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As of December 31, 2013, the Company has a working capital deficiency, accumulated deficit from recurring net losses for the current and prior years, and significant short-term debt obligations currently in default or maturing in less than one year. These factors raise substantial doubts about the Company’s ability to continue as a going concern. | ||||
Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on timely basis for the next twelve months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing, the Company may be required to suspend operations or cease business entirely. | ||||
The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. | ||||
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 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. The fair value of the deposits received from underwriting sales approximate their carrying amounts because the deposits were received in cash. | ||||
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, 2013, there was one customer that accounted for 19% of our net revenues, and no accounts receivable from this customer as of December 31, 2013. | ||||
During the year ended December 31, 2012, there was no customer that accounted for more than 10% of our net revenues. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents include cash on hand and all highly liquid 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, 2013 and December 31, 2012 are $1: RMB6.0969 and $1: RMB6.2855, respectively. | ||||
The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation. | ||||
Real Estate Property under Development | ||||
Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs. | ||||
Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. | ||||
Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. | ||||
In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. | ||||
For the years ended December 31, 2013 and 2012, 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 | 10-May | |||
Computer and office equipment | 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, 2013 and 2012. | ||||
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 year ended December 31, 2013, the Company provided an allowance for impairment loss on investments in unconsolidated affiliates of $256,000 (2012: $60,000). As of December 31, 2013, the allowance for impairment loss on investments in unconsolidated affiliates amounted to $316,000 (2012: $60,000). | ||||
Other Investments | ||||
Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the cost method. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the cost method and any decline in value is included in impairment of cost of the investment. | ||||
During the year ended December 31, 2013, the Company provided an allowance for impairment loss on other investments of $Nil (2012: $76,060). As of December 31, 2013, the allowance for impairment loss on other investments amounted to $78,729 (2012: $76,060). | ||||
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 the year ended December 31, 2013, the Company received no refundable government subsidy (2012: $5,252,173). 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 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, 2013, the Company’s deferred government subsidy amounted to $5,441,360 (2012: $5,273,314). | ||||
Revenue Recognition | ||||
Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer. | ||||
Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured. | ||||
Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements. | ||||
The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred. | ||||
All revenues represent gross revenues less sales and business tax. | ||||
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, 2013 and 2012 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. | ||||
Advertising Expenses | ||||
Advertising costs are expensed as incurred. For the year ended December 31, 2013, the Company recorded advertising expenses totaling $500,515 (2012: $60,480). | ||||
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, 2013 and 2012. | ||||
Recently Adopted Accounting Standards | ||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In February 2013, the FASB issued ASU No. 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the company on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
New Accounting Pronouncements Not Yet Adopted | ||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). The objective of ASU 2013-04 is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation (within the scope of this guidance) is fixed at the reporting date. Examples of obligations within the scope of ASU 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU 2013-04 is effective for the Group for interim reporting periods beginning July 1, 2014, however, early adoption is permitted. We do not expect that the adoption of ASU 2013-04 will have a material impact on the Company’s consolidated financial statements. | ||||
In March 2013, the FASB issued ASU No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”),, which specifies that a cumulative translation adjustment (“CTA”) should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of CTA attributable to the investment would be recognized in earnings when the investment is sold. When an entity sells either a part or all of its investment in a consolidated foreign entity, CTA would be recognized in earnings only if the sale results in the parent no longer having a controlling financial interest in the foreign entity. In addition, CTA should be recognized in earnings in a business combination achieved in stages. For public entities, ASU 2013-05 is effective for reporting periods beginning after December 15, 2013, with early adoption permitted. We do not expect that the adoption of ASU 2013-05 will have a material impact on the Company’s consolidated financial statements. | ||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) (“ASU 2013-11”) to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carry forward, similar tax loss, or tax credit carry forward exists. This ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, with certain exceptions. The modifications to ASC Topic 740 resulting from the issuance of ASU 2013-11 are effective for fiscal years beginning after December 15, 2013 and interim periods within those years. Early adoption is permitted. We do not expect that the adoption of ASU 2013-11 will have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). This update requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). When conditions or events raise substantial doubts about an entity’s ability to continue as a going concern, management shall disclose: i) the principal conditions or events that raise substantial doubt about the entity's ability to continue as a going concern; ii) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations; and iii) management's plans that are intended to mitigate the conditions or events - and whether or not those plans alleviate the substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and early application is permitted. We are currently evaluating the impact of adopting ASU 2014-15 on our results of operations or financial condition. | ||||
RESTRICTED_CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Cash [Abstract] | |
Cash And Cash Equivalents Restricted Cash And Cash Equivalents [Text Block] | NOTE 3 - RESTRICTED CASH |
The Company is required to maintain certain deposits with the bank that provide mortgage loans to the Company. As of December 31, 2013, the Company held cash deposits of $Nil (2012:$1,352,319) as security for its short term borrowings (see Note 11) and cash deposits of $246,895 (2012: $Nil) as security for its long term borrowings (see Note 16). These balances are subject to withdrawal restrictions and are not covered by insurance. | |
PROMISSORY_DEPOSITS
PROMISSORY DEPOSITS | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 4 - PROMISSORY DEPOSITS |
Promissory deposits are paid to property developers in respect of the real estate projects where the Company has been appointed as sales agent. The balances are unsecured, interest free and recoverable on completion of the respective projects. | |
REAL_ESTATE_PROPERTY_UNDER_DEV
REAL ESTATE PROPERTY UNDER DEVELOPMENT | 12 Months Ended |
Dec. 31, 2013 | |
Real Estate Held For Development and Sale [Abstract] | |
Real Estate Held For Development and Sale [Text Block] | 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 Honking 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. | |
As of December 31, 2013, land use rights included in real estate property under development totaled $12,092,558 (2012: $11,531,286). | |
OTHER_RECEIVABLES_AND_DEPOSITS
OTHER RECEIVABLES AND DEPOSITS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 6 - OTHER RECEIVABLES AND DEPOSITS | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Advances to staff | $ | 56,161 | $ | 40,477 | ||||
Rental deposits | 7,483 | 44,154 | ||||||
Other receivables | 140,913 | 269,144 | ||||||
$ | 204,557 | $ | 353,775 | |||||
Other receivables and deposits as of December 31, 2013 are stated net of allowance for doubtful accounts of $99,437 (2012: $73,864). | ||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7 - PROPERTY AND EQUIPMENT, NET | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 423,461 | $ | 354,446 | ||||
Computer and office equipment | 293,100 | 281,975 | ||||||
Motor vehicles | 878,732 | 761,702 | ||||||
Properties | 9,657,427 | 9,367,650 | ||||||
11,252,720 | 10,765,773 | |||||||
Less: Accumulated depreciation | -2,112,986 | -1,462,512 | ||||||
$ | 9,139,734 | $ | 9,303,261 | |||||
During the year ended December 31, 2013, depreciation and amortization expense for property and equipment amounted to $647,116 (2012: $454,382). | ||||||||
All properties as of December 31, 2013 and 2012 were pledged as collateral for the Company’s bank loans (See Note 11). | ||||||||
INVESTMENT_PROPERTIES_NET
INVESTMENT PROPERTIES, NET | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Real Estate [Abstract] | ||||||||
Real Estate Disclosure [Text Block] | NOTE 8 - INVESTMENT PROPERTIES, NET | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Investment properties | $ | 10,156,116 | $ | 9,851,376 | ||||
Less: Accumulated depreciation | -4,018,297 | -3,449,907 | ||||||
$ | 6,137,819 | $ | 6,401,469 | |||||
During the year ended December 31, 2013, depreciation and amortization expense for investment properties amounted to $453,054 (2012:$536,019). | ||||||||
All investment properties as of December 31, 2013 and 2012 were pledged as collateral for the Company’s bank loans (See Note 11). | ||||||||
INVESTMENT_IN_AND_AMOUNT_DUE_F
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 9 - INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | |||||||
The investments in unconsolidated affiliates primarily consist of WHYYL (49%), SHXXY(40%) and XG(49%). WHYYL is primarily developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with a 3-year planned construction period. SHXXY and XG have not generated any income since their establishments. The Company has accounted for these investments using the equity method as the Company has the ability to exercise significant influence over their activities. | ||||||||
As of December 31, 2013, the carrying amount of the Company’s investment in WHYYL was $5,747,224 (2012: $4,316,031), which included its equity in loss of WHYYL, net of income taxes, totaling $566,267 (2012: $230,490) for the year. The following table sets forth the financial information of WHYYL. | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues | $ | - | $ | - | ||||
Net loss | $ | 1,171,948 | $ | 470,387 | ||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Current assets | $ | 56,344,599 | $ | 19,387,419 | ||||
Non-current assets | 794,446 | 298,872 | ||||||
Total assets | 57,139,045 | 19,686,291 | ||||||
Current liabilities | 45,581,987 | 11,674,515 | ||||||
Total equity | $ | 11,557,058 | $ | 8,011,776 | ||||
As of December 31, 2013, the Company has a balance of $3,086,185 (2012: $4,316,031)due from WHYYL, which bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. During the year ended December 31, 2013, the Company recorded interest income of $377,069 (2012: $177,295) from WHYYL. | ||||||||
As of December 31, 2013, the carrying amounts of the Company’s investments in SHXXY and XG are $Nil (2012: $Nil) after deduction of impairment losses of $316,000 (2012: $60,000). | ||||||||
OTHER_INVESTMENTS_NET
OTHER INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2013 | |
Other Investments [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | NOTE 10 - OTHER INVESTMENTS, NET |
As of December 31, 2013 and 2012, investments accounted using the cost method consist of various companies engaging in real estate agency or property related services. | |
During the years ended December 31, 2013 and 2012, the Company recorded no income from other investments. The Company provided an allowance of impairment loss on other investments for the year ended December 31, 2013 of $Nil (2012: $76,060). As of December 31, 2013, the Company’s allowance for impairment loss on other investments amounted to $78,730 (2012: $76,060). | |
SHORT_TERM_BORROWINGS
SHORT TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE 11 - SHORT TERM BORROWINGS |
In August 2012, the Company entered into a 3-year revolving facility line of credit agreement with First Sino Bank. Under the terms of the supplementary agreement dated September 27, 2013 in connection with this facility, the Company could borrow a maximum amount of $5,002,543 (RMB30,500,000) as of December 31, 2013. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by the People’s Bank of China (“PBOC”). The average interest rate for the year ended December 31, 2013 was 7.6875% per annum. The facility of credit is secured by all of the Company’s properties included in property and equipment (See Note 7) and the restricted cash of $Nil (See Note 3), and is guaranteed by Lin Chi-Jung, the Company’s CEO, President and Chairman, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period not longer than 12 months and are due not later than March 31, 2015. As of December 31, 2013, the Company had an outstanding loan balance of $5,002,543 (RMB30,500,000) (2012: $5,695,649 (RMB35,800,000)) under this facility line of credit. | |
In April 2012, the Company entered into a 3-year non-revolving facility line of credit agreement with First Sino Bank. Under the terms of the agreement, the Company could borrow a maximum amount of $12,301,332 (RMB75,000,000) as of December 31, 2013. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC. The average interest rate for the year ended December 31, 2013 was 7.6875% per annum. The facility of credit is secured by all of the Company’s investment properties (See Note 8) and guaranteed by Lin Chi-Jung, the Company’s CEO, President and Chairman, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period not longer than 36 months and are due not later than March 31, 2015. As of December 31, 2013, the Company had an outstanding loan balance of $12,301,332 (RMB75,000,000) (2012: $11,932,225 (RMB75,000,000)) under this facility line of credit. | |
In January 2013, the Company obtained three bank loans with an aggregate principal amount of $1,312,143 (RMB8,000,000) from Bank of China. The borrowings under these agreements have 1-year term, bearing interest at a rate of 7.5% per annum, and are secured by the properties of two unrelated parties and personally guaranteed by Lin Chi-Jung, the Company’s CEO, President and Chairman, and his wife. The total outstanding balance of these loans was $1,312,143 as of December 31, 2013. In January 2014, the Company renewed and extended the maturity of these loans for a 1-year period by entering into two new loan agreements with Bank of China under the same terms of the previous three loan agreements. | |
PROMISSORY_NOTES_PAYABLE
PROMISSORY NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |
Notes Payable Disclosure [Text Block] | NOTE 12 - PROMISSORY NOTES PAYABLE |
The promissory notes payable consist of the following unsecured notes. As of December 31, 2013, one of these promissory notes with an outstanding balance of $2,308,974 (2012: $3,853,052) has matured and is currently in default. | |
During the year ended December 31, 2013, the promissory note with a management member of the Company has a principal of $161,736 (RMB1,000,000). This promissory note bears an interest rate of 36% per annum and no fixed term of repayment. As of December 31, 2013, the outstanding principal and accrued interest related to this promissory note amounted to $178,779. | |
The promissory note with a principal of $6,730,779 (RMB42,476,600), which issued to an unrelated third party to finance the Company’s acquisition of real estate properties for the use as our headquarter, is unsecured and interest bearing at a rate of 7% per annum. This promissory note is currently in default. As of December 31, 2013, the principal in default and unpaid interest related to this promissory note amounted to $2,308,974 (2012: $3,853,052). | |
The promissory note with an unrelated third party has a principal of $300,000. This promissory note bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $280,176 (2012:$307,500). | |
The promissory notes with a non-controlling interest of a consolidated subsidiary have an aggregate principal of $948,023 (RMB5,780,000). These promissory notes bear interest at a rate of 15% per annum, are unsecured and have no fixed term of repayment. As of December 31, 2013, the outstanding principals and unpaid interest related to these promissory notes amounted to $1,252,276 (2012: $1,088,219). | |
The promissory note with a non-controlling interest of a consolidated subsidiary has a principal of $820,089 (RMB8,000,000). This promissory note bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2013, the outstanding principal and accrued interest related to this promissory note amounted to $1,056,342 (2012: $905,324). | |
During the year ended December 31, 2013, the interest expense related to these promissory notes was $765,171 (2012: $643,711). | |
AMOUNTS_DUE_TO_DIRECTORS
AMOUNTS DUE TO DIRECTORS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | NOTE 13 – AMOUNTS DUE TO DIRECTORS | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Lin Chi-Jung | $ | 10,398,904 | $ | 7,683,507 | ||||
Lin Chao-Chin | 1,484 | 1,440 | ||||||
Lin Hsin-Hung | 39,850 | 22,225 | ||||||
$ | 10,440,238 | $ | 7,707,172 | |||||
(a) | The balance due to Lin Chi-Jung, the Company’s CEO, President and Chairman, consists of a balance of unpaid salaries and reimbursements totaling $60,679 (2012: $35,797) and advances together with unpaid interest totaling $10,338,225 (2012: $7,647,710). | |||||||
The balance of unpaid salaries and reimbursements is unsecured, interest-free and has no fixed term of repayment. | ||||||||
The advances from Lin Chi-Jung bear interest at rates ranging from 9.6% to 36.5%per annum. During the year ended December 31, 2013, the interest expense related to these advances amounted to $1,915,510 (2012: $737,767). Included in the outstanding amounts with Lin Chi-Jung are advances of $4,591,206 that are currently in default. | ||||||||
(b) | The balances due to Lin Chao-Chin and Lin Hsin-Hung are unsecured, interest-free and have no fixed term of repayment. | |||||||
OTHER_PAYABLES_AND_ACCRUED_EXP
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 14 - OTHER PAYABLES AND ACCRUED EXPENSES | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Accrued staff commission and bonus | $ | 1,058,882 | $ | 890,419 | ||||
Rental deposits received | 687,700 | 945,309 | ||||||
Rental receipts in advance | 151,243 | - | ||||||
Advances from unrelated parties | - | 1,288,680 | ||||||
Dividend payable to noncontrolling interests | - | 237,582 | ||||||
Accrued expenses | 597,453 | 346,861 | ||||||
Other payables | 506,303 | 420,304 | ||||||
$ | 3,001,581 | $ | 4,129,155 | |||||
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, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | NOTE 15 - INCOME TAXES PAYABLE | |||||||
SRRE, CY-SRRE and LRY do not generate any income and therefore are not subject to income taxes in the U.S., the British Virgin Islands or the Cayman Islands. The Company conducts substantially all of its business through its PRC operating subsidiaries and they are subject to PRC income taxes. The Company’s subsidiaries in the PRC are subject to the standard 25% tax rate in the years ended December 31, 2013 and 2012. | ||||||||
Income tax benefit consists of | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
PRC | ||||||||
Current tax | $ | 207,125 | $ | 175,458 | ||||
Deferred tax benefit | -270,352 | -188,616 | ||||||
Total income tax benefit | $ | -63,227 | $ | -13,158 | ||||
Income taxes represent current PRC income taxes, which are calculated at the applicable statutory income tax rate on the assessable income for the years ended December 31, 2013 and 2012. A reconciliation of the provision for income taxes, with amounts determined by applying the PRC statutory income tax rate to loss before income taxes, is as follows: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Provision for income tax benefit at PRC statutory tax rate of 25% | $ | -498,634 | $ | -813,569 | ||||
Permanent differences | -12,473 | 55,274 | ||||||
Under (Over)-provision for income taxes in prior years | 14,018 | 7,168 | ||||||
Change in valuation allowance | 433,862 | 737,609 | ||||||
Total income tax benefit | $ | -63,227 | $ | -13,158 | ||||
In assessing the realizability 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 carryforwards of $469,400 as of December 31, 2013 (2012: $189,375). | ||||||||
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 5 years. The Company is not currently under any examination by the PRC tax bureau. | ||||||||
LONG_TERM_BORROWINGS
LONG TERM BORROWINGS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt [Text Block] | NOTE 16 – LONG TERM BORROWINGS | |||||||
On May 16, 2013, the Company entered into a project finance loan agreement with China CITIC Bank to finance the development of the Company’s Linyi Project. The loan has a 2-year term in the principal amount of $11,481,245 (RMB70,000,000) at an interest rate of 14.21% per annum, which is 8.06% over the benchmark lending rate from PBOC. | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Outstanding borrowings | $ | 11,481,245 | $ | - | ||||
Less: Current portion of long term borrowings | 8,036,871 | - | ||||||
$ | 3,444,374 | $ | - | |||||
For the year ended December 31, 2013, total loan interest was approximately $897,000, which was capitalized in the development cost of the Linyi project. | ||||||||
The Company pledged its real estate properties in the Linyi project with carrying value of $31,119,043 as of December 31, 2013. The loan is also subject to certain covenants including floating mortgage ratio not more than 50%. Floating mortgage rate is calculated as the outstanding principal and unpaid interest after deduction of guaranteed funds kept in the stipulated bank account divided by the value of pledged properties. In addition, the Company is required to maintain all monies received from sales of any properties relating to the Linyi project in a stipulated bank account as guaranteed funds, which will be classified as restricted cash. As of December 31, 2013, the cash restricted in relation to the borrowings from China CITIC Bank was $246,895 (2012: $Nil). | ||||||||
DEFERRED_GOVERNEMNET_SUBSIDY
DEFERRED GOVERNEMNET SUBSIDY | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Government Subsidy [Abstract] | |
Deferred Government Subsidy [Text Block] | NOTE 17 - DEFERRED GOVERNEMNET SUBSIDY |
Deferred government subsidy consists of the cash subsidy provided by the local government. | |
During the year ended December 31, 2013, the Company received refundable government subsidies of $Nil (2012: $5,252,173). The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project, and is repayable if the Company fails to complete the subsidized property development project before the agreed date. All of the government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets. | |
DEPOSITS_RECEIVED_FROM_UNDERWR
DEPOSITS RECEIVED FROM UNDERWRITING SALES | 12 Months Ended |
Dec. 31, 2013 | |
Real Estate [Abstract] | |
Real Estate Deposit Received Disclosure [Text Block] | NOTE 18 - DEPOSITS RECEIVED FROM UNDERWRTING SALES |
The Company accounts for its underwriting sales revenue with underwriting rent guarantees using the deposit method in accordance with ASC 976-605 (formerly SFAS No.66). Revenue from the sales of floor space with underwriting rent guarantees until the revenues generated by sub-leasing properties exceed the guaranteed rental amount due to the purchasers. | |
STATUTORY_RESERVE
STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2013 | |
Statutory Reserve [Abstract] | |
Statutory Reserve Disclosure [Text Block] | NOTE 19 - 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, 2013, the Company’s statutory reserve fund was $782,987 (2012: 782,987). | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 20- COMMITMENTS AND CONTINGENCIES | ||||
Operating Lease Commitments | |||||
The Company leases certain of its office properties under non-cancellable operating lease arrangements. Payments under operating leases are expensed on a straight-line basis over the periods of their respective terms, and the terms of the leases do not contain rent escalation, or contingent rent, renewal, or purchase options. There are no restrictions placed upon the Company by entering into these leases. Rental expenses under operating leases for the year ended December 31, 2013 were $254,559 (2012: $188,393). | |||||
As of December 31, 2013, the Company had the following operating lease obligations falling due. | |||||
Amount | |||||
Year Ending | |||||
2014 | $ | 16,425 | |||
2015 | 35,454 | ||||
2016 | 16,425 | ||||
$ | 68,304 | ||||
During 2005 and 2006, SZGFH entered into leasing agreements with certain buyers of the Sovereign Building underwriting project to lease the properties for them. These leasing agreements on these properties are for 62% of the floor space that was sold to third party buyers. In accordance with the leasing agreements, the owners of the properties can have a rental return of 8.5% and 8.8% per annum for a period of 5 years and 8 years, respectively. The leasing period started in the second quarter of 2006 and the Company had the right to sublease these properties to cover these lease commitments in the leasing periods. In 2009, we agreed with certain buyers to amend the agreed 5-year annual return rate from 8.5% to 5.8% and the agreed 8-year annual return rate from 8.8% to 6% for the remaining lease, or to terminate their lease agreements early. | |||||
As of December 31, 2013, the Company has the following leasing commitment related to these properties. | |||||
Year Ending | Amount | ||||
2014 | $ | 809,255 | |||
2015 | 596,866 | ||||
2016 | 392,755 | ||||
$ | 1,798,876 | ||||
An accrual for onerous contracts was recognized which is equal to the difference between the present value of the sublease income and the present value of the associated lease expense at the appropriate discount rate. During the years ended December 31, 2013 and 2012, the Company had no significant provision for onerous contracts. | |||||
Other commitments | |||||
As of December 31, 2013, the Company had outstanding commitments of $25,200,666 with respect to non-cancellable construction contracts for real estate development. | |||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 21 - 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, 2013 | ||||||||||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
Net revenues | $ | 12,763,447 | $ | - | $ | - | $ | 12,763,447 | ||||||
Cost of revenues | -4,841,337 | - | - | -4,841,337 | ||||||||||
Gross income | 7,922,110 | - | - | 7,922,110 | ||||||||||
Operating expenses | -1,328,781 | -819,417 | - | -2,148,198 | ||||||||||
General and administrative expenses | -2,709,255 | -464,510 | -411,356 | -3,585,121 | ||||||||||
Operating income (loss) | 3,884,074 | -1,283,927 | -411,356 | 2,188,791 | ||||||||||
Other income (expenses) | ||||||||||||||
Interest income | 17,115 | 377,069 | 17 | 394,201 | ||||||||||
Interest expense | -3,698,726 | - | -64,829 | -3,763,555 | ||||||||||
Miscellaneous | 8,294 | - | - | 8,294 | ||||||||||
Total other (expenses) income | -3,673,317 | 377,069 | -64,812 | -3,361,060 | ||||||||||
Loss before income taxes and equity in net loss of unconsolidated affiliates | 210,757 | -906,858 | -476,168 | -1,172,269 | ||||||||||
Income tax (expense) benefit | -207,125 | 270,352 | - | 63,227 | ||||||||||
Equity in net loss of unconsolidated affiliates | - | -566,267 | -256,000 | -822,267 | ||||||||||
Net income(loss) | $ | 3,632 | $ | -1,202,773 | $ | -732,168 | $ | -1,931,309 | ||||||
Year ended December 31, 2012 | ||||||||||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
Net revenues | $ | 8,529,990 | $ | - | $ | - | $ | 8,529,990 | ||||||
Cost of revenues | -4,894,833 | - | - | -4,894,833 | ||||||||||
Gross income | 3,635,157 | - | - | 3,635,157 | ||||||||||
Operating expenses | -1,288,604 | -113,055 | - | -1,401,659 | ||||||||||
General and administrative expenses | -2,407,600 | -720,091 | -217,944 | -3,345,635 | ||||||||||
Operating loss | -61,047 | -833,146 | -217,944 | -1,112,137 | ||||||||||
Other income (expenses) | ||||||||||||||
Interest income | 185,696 | 53,303 | 80 | 239,079 | ||||||||||
Interest expense | -2,371,218 | - | -49,157 | -2,420,375 | ||||||||||
Miscellaneous | 13,777 | 25,379 | - | 39,156 | ||||||||||
Total other (expenses) income | -2,171,745 | 78,682 | -49,077 | -2,142,140 | ||||||||||
Loss before income taxes and equity in net loss of an unconsolidated affiliate | -2,232,792 | -754,464 | -267,021 | -3,254,277 | ||||||||||
Income tax (expense) benefit | -175,098 | 188,616 | - | 13,518 | ||||||||||
Equity in net loss of an unconsolidated affiliate | - | -230,490 | - | -230,490 | ||||||||||
Net loss | $ | -2,407,890 | $ | -796,338 | $ | -267,021 | $ | -3,471,249 | ||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
As of December 31, 2013 | ||||||||||||||
Real estate property under development | $ | - | $ | 31,119,043 | $ | - | $ | 31,119,043 | ||||||
Total assets | 19,282,576 | 42,400,822 | 14,920 | 61,698,318 | ||||||||||
As of December 31, 2012 | ||||||||||||||
Real estate property under development | $ | - | $ | 20,493,851 | $ | - | $ | - | ||||||
Total assets | 24,322,419 | 25,813,935 | 55,681 | 50,192,035 | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 22-SUBSEQUENT EVENTS |
On March 13, 2014, the Company entered into a development agreement with Zhongji Pufa Real Estate Company Limited. Pursuant to the agreement, the Company will pay a sum of $22,142,400 (RMB135,000,000) to acquire the development right of the parcel of land with estimated gross floor area of approximately 8,934 square meter for the development of high-rise commercial buildings. The Company has made payments totaling $16,401,778 (RMB100,000,000) in relation to this project. | |
In March and May, 2014, the Company and five unrelated individuals entered into investment agreements with a terms of 18 months whereby these individuals through the Company invested $10,825,173 (RMB66,000,000) in the above-mentioned project with guaranteed rates of return ranging from 15% to 25% per annum. Pursuant to the agreements, either party has the right to terminate the agreement early after the first 12 months following the date of investment, and the returns of these individuals are guaranteed by the Company’s investment return in the project. Under the agreement terms, each of these individual investors can receive 5% discount on their purchases of up to two units of properties under the project. | |
On August 7, 2014, the Company obtained a bank loan with a principal amount of $16,401,778 (RMB100,000,000) from China Everbright Bank. The borrowings under these agreements have 1-year term, bear interest at a rate of 14% per annum, and are unsecured. | |
In August and November 2014, the Company entered into two share purchase agreements with Ace Develop, of which Lin Chi-Jung, the Company’s CEO, President and Chairman, is the sole shareholder, to issue Ace Develop 40,000,000 in aggregate shares of the Company’s Common Stock in aggregate for approximately $3,400,000 in cash. After these transactions were consummated, Ace Develop holds 44,511,400 shares or 64.80% equity interest in the Company. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ||||
Basis Of Accounting, Policy [Policy Text Block] | 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 has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. | ||||
Going Concern, Policy [Policy Text Block] | Going Concern | |||
The Company’s consolidated financial statements have been prepared on a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As of December 31, 2013, the Company has a working capital deficiency, accumulated deficit from recurring net losses for the current and prior years, and significant short-term debt obligations currently in default or maturing in less than one year. These factors raise substantial doubts about the Company’s ability to continue as a going concern. | ||||
Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on timely basis for the next twelve months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing, the Company may be required to suspend operations or cease business entirely. | ||||
The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. | ||||
Use of Estimates, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | 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 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. The fair value of the deposits received from underwriting sales approximate their carrying amounts because the deposits were received in cash. | ||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | Major Customers | |||
During the year ended December 31, 2013, there was one customer that accounted for 19% of our net revenues, and no accounts receivable from this customer as of December 31, 2013. | ||||
During the year ended December 31, 2012, there was no customer that accounted for more than 10% of our net revenues. | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | |||
Cash and cash equivalents include cash on hand and all highly liquid 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 Transactions and Translations Policy [Policy Text Block] | 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, 2013 and December 31, 2012 are $1: RMB6.0969 and $1: RMB6.2855, 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 Held for Development and Sale, Policy [Policy Text Block] | Real Estate Property under Development | |||
Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs. | ||||
Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. | ||||
Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. | ||||
In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. | ||||
For the years ended December 31, 2013 and 2012, the Company had not recognized any impairment for real estate property under development. | ||||
Interest Capitalization, Policy [Policy Text Block] | 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, Plant and Equipment, Policy [Policy Text Block] | 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 | 10-May | |||
Computer and office equipment | 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. | ||||
Real Estate, Policy [Policy Text Block] | 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 or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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, 2013 and 2012. | ||||
Customer Deposits [Policy Text Block] | 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. | ||||
Equity Method Investments, Policy [Policy Text Block] | 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 year ended December 31, 2013, the Company provided an allowance for impairment loss on investments in unconsolidated affiliates of $256,000 (2012: $60,000). As of December 31, 2013, the allowance for impairment loss on investments in unconsolidated affiliates amounted to $316,000 (2012: $60,000). | ||||
Other Investments | ||||
Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the cost method. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the cost method and any decline in value is included in impairment of cost of the investment. | ||||
During the year ended December 31, 2013, the Company provided an allowance for impairment loss on other investments of $Nil (2012: $76,060). As of December 31, 2013, the allowance for impairment loss on other investments amounted to $78,729 (2012: $76,060). | ||||
Government Subsidies Policy [Policy Text Block] | 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 the year ended December 31, 2013, the Company received no refundable government subsidy (2012: $5,252,173). 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 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, 2013, the Company’s deferred government subsidy amounted to $5,441,360 (2012: $5,273,314). | ||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||
Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer. | ||||
Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured. | ||||
Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements. | ||||
The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred. | ||||
All revenues represent gross revenues less sales and business tax. | ||||
Comprehensive Income, Policy [Policy Text Block] | 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, 2013 and 2012 were net loss and foreign currency translation adjustments. | ||||
Earnings Per Share, Policy [Policy Text Block] | 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. | ||||
Advertising Costs, Policy [Policy Text Block] | Advertising Expenses | |||
Advertising costs are expensed as incurred. For the year ended December 31, 2013, the Company recorded advertising expenses totaling $500,515 (2012: $60,480). | ||||
Income Tax, Policy [Policy Text Block] | 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, 2013 and 2012. | ||||
Adoption Of New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards | |||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In February 2013, the FASB issued ASU No. 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the company on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
New Accounting Pronouncements [Policy Text Block] | New Accounting Pronouncements Not Yet Adopted | |||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). The objective of ASU 2013-04 is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation (within the scope of this guidance) is fixed at the reporting date. Examples of obligations within the scope of ASU 2013-04 include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. ASU 2013-04 is effective for the Group for interim reporting periods beginning July 1, 2014, however, early adoption is permitted. We do not expect that the adoption of ASU 2013-04 will have a material impact on the Company’s consolidated financial statements. | ||||
In March 2013, the FASB issued ASU No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”),, which specifies that a cumulative translation adjustment (“CTA”) should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of CTA attributable to the investment would be recognized in earnings when the investment is sold. When an entity sells either a part or all of its investment in a consolidated foreign entity, CTA would be recognized in earnings only if the sale results in the parent no longer having a controlling financial interest in the foreign entity. In addition, CTA should be recognized in earnings in a business combination achieved in stages. For public entities, ASU 2013-05 is effective for reporting periods beginning after December 15, 2013, with early adoption permitted. We do not expect that the adoption of ASU 2013-05 will have a material impact on the Company’s consolidated financial statements. | ||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) (“ASU 2013-11”) to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carry forward, similar tax loss, or tax credit carry forward exists. This ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward, with certain exceptions. The modifications to ASC Topic 740 resulting from the issuance of ASU 2013-11 are effective for fiscal years beginning after December 15, 2013 and interim periods within those years. Early adoption is permitted. We do not expect that the adoption of ASU 2013-11 will have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). This update requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). When conditions or events raise substantial doubts about an entity’s ability to continue as a going concern, management shall disclose: i) the principal conditions or events that raise substantial doubt about the entity's ability to continue as a going concern; ii) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations; and iii) management's plans that are intended to mitigate the conditions or events - and whether or not those plans alleviate the substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and early application is permitted. We are currently evaluating the impact of adopting ASU 2014-15 on our results of operations or financial condition. | ||||
ORGANIZATION_AND_DESCRIPTION_O1
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization and Description Of Business [Abstract] | ||||||||||||
Consolidation Entities Nature Of Business [Table Text Block] | As of December 31, 2013, 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”) | 30-Apr-04 | Cayman Islands | 100% | Subsidiary | Investment holding | |||||||
Lin Ray Yang Enterprise Limited (“LRY”) | 13-Nov-03 | British Virgin Islands | 100% | Subsidiary | Investment holding | |||||||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) | 20-Aug-01 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Shanghai Shang Yang Investment Management and Consulting Company Limited (“SHSY”) *** | 5-Feb-04 | PRC | 100% | Subsidiary | Property brokerage services, investment management and consulting | |||||||
Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”) | 10-Jan-05 | PRC | 100% | Subsidiary | Property management and leasing services | |||||||
Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) | 24-Nov-06 | PRC | 38.5%* | Subsidiary | Property brokerage and management services | |||||||
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) | 25-Jun-04 | PRC | 75% | Subsidiary | Property brokerage services | |||||||
Linyi Shangyang Real Estate Development Company Limited (“LYSY”) | 13-Oct-11 | PRC | 24%** | Subsidiary | Real estate development | |||||||
Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”) | 20-Oct-10 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”) | 10-Nov-10 | PRC | 60% | Subsidiary | Property brokerage services | |||||||
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) | 18-Sep-08 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Shanghai Rui Jian Design Company Limited (“SHRJ”) | 15-Aug-11 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Linyi Rui Lin Construction and Design Company Limited (“LYRL”) | 6-Mar-12 | PRC | 100% | Subsidiary | Investment holding | |||||||
Putian Xin Ji Yang Real Estate Consultation Company Limited (“PTXJY”) | 5-Jun-12 | PRC | 100% | Subsidiary | Property brokerage services | |||||||
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) | 28-Dec-09 | PRC | 49% | Equity investment | Real estate development | |||||||
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”) | 28-Sep-11 | PRC | 40% | Equity investment | Property brokerage services | |||||||
Xin Guang Investment Management and Consulting Company Limited (“XG”) | 17-Dec-12 | PRC | 49% | Equity investment | Investment management and consulting | |||||||
* | The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. | |||||||||||
** | The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. | |||||||||||
*** | It was formerly known as Shanghai Shang Yang Real Estate Consultation Co., Limited. The company changed its name to Shanghai Shang Yang Investment Management and Consulting Company Limited and extended its principal activities to investment management and consulting on May 28, 2013. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Property, Plant and Equipment [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives [Table Text Block] | 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 | 10-May | |||
Computer and office equipment | 5 | |||
Motor vehicles | 5 | |||
Properties | 20 | |||
OTHER_RECEIVABLES_AND_DEPOSITS1
OTHER RECEIVABLES AND DEPOSITS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ||||||||
Schedule Of Other Receivables and Deposit [Table Text Block] | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Advances to staff | $ | 56,161 | $ | 40,477 | ||||
Rental deposits | 7,483 | 44,154 | ||||||
Other receivables | 140,913 | 269,144 | ||||||
$ | 204,557 | $ | 353,775 | |||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 423,461 | $ | 354,446 | ||||
Computer and office equipment | 293,100 | 281,975 | ||||||
Motor vehicles | 878,732 | 761,702 | ||||||
Properties | 9,657,427 | 9,367,650 | ||||||
11,252,720 | 10,765,773 | |||||||
Less: Accumulated depreciation | -2,112,986 | -1,462,512 | ||||||
$ | 9,139,734 | $ | 9,303,261 | |||||
INVESTMENT_PROPERTIES_NET_Tabl
INVESTMENT PROPERTIES, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Real Estate [Abstract] | ||||||||
Schedule of Real Estate Properties [Table Text Block] | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Investment properties | $ | 10,156,116 | $ | 9,851,376 | ||||
Less: Accumulated depreciation | -4,018,297 | -3,449,907 | ||||||
$ | 6,137,819 | $ | 6,401,469 | |||||
INVESTMENT_IN_AND_AMOUNT_DUE_F1
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Schedule of Equity Method Investments [Table Text Block] | The following table sets forth the financial information of WHYYL. | |||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues | $ | - | $ | - | ||||
Net loss | $ | 1,171,948 | $ | 470,387 | ||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Current assets | $ | 56,344,599 | $ | 19,387,419 | ||||
Non-current assets | 794,446 | 298,872 | ||||||
Total assets | 57,139,045 | 19,686,291 | ||||||
Current liabilities | 45,581,987 | 11,674,515 | ||||||
Total equity | $ | 11,557,058 | $ | 8,011,776 | ||||
AMOUNTS_DUE_TO_DIRECTORS_Table
AMOUNTS DUE TO DIRECTORS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Lin Chi-Jung | $ | 10,398,904 | $ | 7,683,507 | ||||
Lin Chao-Chin | 1,484 | 1,440 | ||||||
Lin Hsin-Hung | 39,850 | 22,225 | ||||||
$ | 10,440,238 | $ | 7,707,172 | |||||
OTHER_PAYABLES_AND_ACCRUED_EXP1
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Other Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, | December 31, | ||||||
2013 | 2012 | |||||||
Accrued staff commission and bonus | $ | 1,058,882 | $ | 890,419 | ||||
Rental deposits received | 687,700 | 945,309 | ||||||
Rental receipts in advance | 151,243 | - | ||||||
Advances from unrelated parties | - | 1,288,680 | ||||||
Dividend payable to noncontrolling interests | - | 237,582 | ||||||
Accrued expenses | 597,453 | 346,861 | ||||||
Other payables | 506,303 | 420,304 | ||||||
$ | 3,001,581 | $ | 4,129,155 | |||||
INCOME_TAXES_PAYABLE_Tables
INCOME TAXES PAYABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company’s subsidiaries in the PRC are subject to the standard 25% tax rate in the years ended December 31, 2013 and 2012. | |||||||
Income tax benefit consists of | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
PRC | ||||||||
Current tax | $ | 207,125 | $ | 175,458 | ||||
Deferred tax benefit | -270,352 | -188,616 | ||||||
Total income tax benefit | $ | -63,227 | $ | -13,158 | ||||
Schedule Of Income Tax Reconciliation [Table Text Block] | A reconciliation of the provision for income taxes, with amounts determined by applying the PRC statutory income tax rate to loss before income taxes, is as follows: | |||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Provision for income tax benefit at PRC statutory tax rate of 25% | $ | -498,634 | $ | -813,569 | ||||
Permanent differences | -12,473 | 55,274 | ||||||
Under (Over)-provision for income taxes in prior years | 14,018 | 7,168 | ||||||
Change in valuation allowance | 433,862 | 737,609 | ||||||
Total income tax benefit | $ | -63,227 | $ | -13,158 | ||||
LONG_TERM_BORROWINGS_Tables
LONG TERM BORROWINGS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The loan has a 2-year term in the principal amount of $11,481,245 (RMB70,000,000) at an interest rate of 14.21% per annum, which is 8.06% over the benchmark lending rate from PBOC. | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Outstanding borrowings | $ | 11,481,245 | $ | - | ||||
Less: Current portion of long term borrowings | 8,036,871 | - | ||||||
$ | 3,444,374 | $ | - | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Office Equipment [Member] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2013, the Company had the following operating lease obligations falling due. | ||||
Amount | |||||
Year Ending | |||||
2014 | $ | 16,425 | |||
2015 | 35,454 | ||||
2016 | 16,425 | ||||
$ | 68,304 | ||||
SZGFH Properties [Member] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2013, the Company has the following leasing commitment related to these properties. | ||||
Year Ending | Amount | ||||
2014 | $ | 809,255 | |||
2015 | 596,866 | ||||
2016 | 392,755 | ||||
$ | 1,798,876 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 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, 2013 | ||||||||||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
Net revenues | $ | 12,763,447 | $ | - | $ | - | $ | 12,763,447 | ||||||
Cost of revenues | -4,841,337 | - | - | -4,841,337 | ||||||||||
Gross income | 7,922,110 | - | - | 7,922,110 | ||||||||||
Operating expenses | -1,328,781 | -819,417 | - | -2,148,198 | ||||||||||
General and administrative expenses | -2,709,255 | -464,510 | -411,356 | -3,585,121 | ||||||||||
Operating income (loss) | 3,884,074 | -1,283,927 | -411,356 | 2,188,791 | ||||||||||
Other income (expenses) | ||||||||||||||
Interest income | 17,115 | 377,069 | 17 | 394,201 | ||||||||||
Interest expense | -3,698,726 | - | -64,829 | -3,763,555 | ||||||||||
Miscellaneous | 8,294 | - | - | 8,294 | ||||||||||
Total other (expenses) income | -3,673,317 | 377,069 | -64,812 | -3,361,060 | ||||||||||
Loss before income taxes and equity in net loss of unconsolidated affiliates | 210,757 | -906,858 | -476,168 | -1,172,269 | ||||||||||
Income tax (expense) benefit | -207,125 | 270,352 | - | 63,227 | ||||||||||
Equity in net loss of unconsolidated affiliates | - | -566,267 | -256,000 | -822,267 | ||||||||||
Net income(loss) | $ | 3,632 | $ | -1,202,773 | $ | -732,168 | $ | -1,931,309 | ||||||
Year ended December 31, 2012 | ||||||||||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
Net revenues | $ | 8,529,990 | $ | - | $ | - | $ | 8,529,990 | ||||||
Cost of revenues | -4,894,833 | - | - | -4,894,833 | ||||||||||
Gross income | 3,635,157 | - | - | 3,635,157 | ||||||||||
Operating expenses | -1,288,604 | -113,055 | - | -1,401,659 | ||||||||||
General and administrative expenses | -2,407,600 | -720,091 | -217,944 | -3,345,635 | ||||||||||
Operating loss | -61,047 | -833,146 | -217,944 | -1,112,137 | ||||||||||
Other income (expenses) | ||||||||||||||
Interest income | 185,696 | 53,303 | 80 | 239,079 | ||||||||||
Interest expense | -2,371,218 | - | -49,157 | -2,420,375 | ||||||||||
Miscellaneous | 13,777 | 25,379 | - | 39,156 | ||||||||||
Total other (expenses) income | -2,171,745 | 78,682 | -49,077 | -2,142,140 | ||||||||||
Loss before income taxes and equity in net loss of an unconsolidated affiliate | -2,232,792 | -754,464 | -267,021 | -3,254,277 | ||||||||||
Income tax (expense) benefit | -175,098 | 188,616 | - | 13,518 | ||||||||||
Equity in net loss of an unconsolidated affiliate | - | -230,490 | - | -230,490 | ||||||||||
Net loss | $ | -2,407,890 | $ | -796,338 | $ | -267,021 | $ | -3,471,249 | ||||||
Property | ||||||||||||||
Brokerage | Real Estate | |||||||||||||
Services | Development | Corporate | Total | |||||||||||
As of December 31, 2013 | ||||||||||||||
Real estate property under development | $ | - | $ | 31,119,043 | $ | - | $ | 31,119,043 | ||||||
Total assets | 19,282,576 | 42,400,822 | 14,920 | 61,698,318 | ||||||||||
As of December 31, 2012 | ||||||||||||||
Real estate property under development | $ | - | $ | 20,493,851 | $ | - | $ | - | ||||||
Total assets | 24,322,419 | 25,813,935 | 55,681 | 50,192,035 | ||||||||||
ORGANIZATION_AND_DESCRIPTION_O2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 12 Months Ended | |
Dec. 31, 2013 | ||
Sunrise Real Estate Development Group Inc [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 30-Apr-04 | |
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 | 13-Nov-03 | |
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 | 20-Aug-01 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 100.00% | |
Subsidiaries, Principal activity | Property brokerage services | |
Shanghai Shang Yang Investment Management and Consulting Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 5-Feb-04 | [1] |
Subsidiaries, Place of Incorporation | PRC | [1] |
Subsidiaries, % of Ownership held by the Company | 100.00% | [1] |
Subsidiaries, Principal activity | Property brokerage services, investment management and consulting | [1] |
Suzhou Gao Feng Hui Property Management Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 10-Jan-05 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 100.00% | |
Subsidiaries, Principal activity | Property management and leasing services | |
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 24-Nov-06 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 38.50% | [2] |
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 | 25-Jun-04 | |
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 [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 13-Oct-11 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 24.00% | [3] |
Subsidiaries, Principal activity | Real estate development | |
Shangqiu Shang Yang Real Estate Consultation Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 20-Oct-10 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 100.00% | |
Subsidiaries, Principal activity | Property brokerage services | |
Wuhan Gao Feng Hui Consultation Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 10-Nov-10 | |
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 | 18-Sep-08 | |
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 | 15-Aug-11 | |
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 | 6-Mar-12 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 100.00% | |
Subsidiaries, Principal activity | Investment holding | |
Putian Xin Ji Yang Real Estate Consultation Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Subsidiaries, Date of Incorporation | 5-Jun-12 | |
Subsidiaries, Place of Incorporation | PRC | |
Subsidiaries, % of Ownership held by the Company | 100.00% | |
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 | 28-Dec-09 | |
Equity investment, Place of Incorporation | PRC | |
Equity investment, % of Ownership held by the Company | 49.00% | |
Equity investment, Principal activity | Real estate development | |
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Equity investment, Date of Incorporation | 28-Sep-11 | |
Equity investment, Place of Incorporation | PRC | |
Equity investment, % of Ownership held by the Company | 40.00% | |
Equity investment, Principal activity | Property brokerage services | |
Xin Guang Investment Management and Consulting Company Limited [Member] | ||
Organization And Description Of Business [Line Items] | ||
Equity investment, Date of Incorporation | 17-Dec-12 | |
Equity investment, Place of Incorporation | PRC | |
Equity investment, % of Ownership held by the Company | 49.00% | |
Equity investment, Principal activity | Investment management and consulting | |
[1] | It was formerly known as Shanghai Shang Yang Real Estate Consultation Co., Limited. The company changed its name to Shanghai Shang Yang Investment Management and Consulting Company Limited and extended its principal activities to investment management and consulting on May 28, 2013. | |
[2] | The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholderbs 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. | |
[3] | The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. |
ORGANIZATION_AND_DESCRIPTION_O3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) | 0 Months Ended | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Oct. 13, 2011 | Jan. 31, 2011 | Nov. 24, 2006 | Aug. 09, 2005 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2004 | Dec. 31, 2013 | Sep. 24, 2007 | Jun. 25, 2004 | 8-May-06 | Sep. 28, 2011 | Dec. 17, 2012 | |
sqm | |||||||||||||
Linyi Shangyang Real Estate Development Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Real Estate Project Land Of Developing Estimated Construction Period | 4 years | ||||||||||||
Wuhan Yuan Yu Long Real Estate Development Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Real Estate Project Land Of Developing Square Meters | 27,950 | ||||||||||||
Real Estate Project Land Of Developing Estimated Construction Period | 3 years | ||||||||||||
Shareholder Of Szsy [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 12.50% | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 12.50% | ||||||||||||
Shareholder Of Lysy [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 75.00% | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 51.00% | ||||||||||||
SZXJY [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 75.00% | 90.00% | ||||||||||
Percentage Of Equity Interest In Subsidiary Sold To Related Party | 10.00% | ||||||||||||
Percentage Of Equity Interest In Subsidiary Transferred To Parent | 5.00% | ||||||||||||
Percentage Of Equity Interest Sold | 5.00% | ||||||||||||
SZXJY [Member] | Held By Parent [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 12.50% | ||||||||||||
SZXJY [Member] | Held By SHXJY [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 26.00% | ||||||||||||
SZXJY [Member] | Held By Director Of Szxjy [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 12.50% | ||||||||||||
SZSY [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||||||||||||
SZGFH [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||||
Percentage Of Voting Interests Acquired During Period | 20.00% | 80.00% | |||||||||||
SRRE [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 5,000,000 | ||||||||||||
LRY [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 10,000,000 | ||||||||||||
Ace Develop [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 8,500,000 | ||||||||||||
Planet Tech [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 750,000 | ||||||||||||
System Tech [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 750,000 | ||||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited [Member] | Wuhan Yuan Yu Long Real Estate Development Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | ||||||||||||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Combination Transferred Equity Interest In Acquire To Other Subsidiary | 24.00% | ||||||||||||
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member] | Linyi Shangyang Real Estate Development Company Limited [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 24.00% | ||||||||||||
Sunrise Real Estate Development Group Inc [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 75.00% | ||||||||||||
Sunrise Real Estate Development Group Inc [Member] | Shareholder Of Lysy [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 51.00% | ||||||||||||
SHXXY [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | ||||||||||||
XG [Member] | |||||||||||||
Organization And Description Of Business [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Furniture and Fixtures [Member] | Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Equipment [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Capitalized Property Plant and Equipment [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | CNY | CNY | Other Investments [Member] | Other Investments [Member] | Other Investments [Member] | Affiliates [Member] | Affiliates [Member] | |
USD ($) | USD ($) | CNY | USD ($) | USD ($) | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration Risk, Percentage | 19.00% | ||||||||
Foreign Currency Exchange Rate Translation | $1 | $1 | 6.0969 | 6.2855 | |||||
Property, Plant and Equipment, Depreciation Methods | straight-line method | ||||||||
Income Tax Position More Likely Than Not Recognition Threshold Limit Percentage | 50.00% | 50.00% | |||||||
Real Estate Investment Property, Depreciation Methods | straight-line method | ||||||||
Real Estate Investment Property, Estimated Useful Lives | 20 | ||||||||
Significant Influence Percentage Description | 20.00% | ||||||||
Other than Temporary Impairment Losses, Investments | $0 | $136,060 | $0 | $76,060 | $256,000 | $60,000 | |||
Equity Method Investments | 5,642,909 | 3,925,770 | 78,729 | 76,060 | 76,060 | 316,000 | 60,000 | ||
Proceeds From Government Subsidies | 0 | 5,252,173 | |||||||
Deferred Government Subsidies | 5,441,360 | 5,273,314 | |||||||
Advertising Expense | $500,515 | $60,480 |
RESTRICTED_CASH_Details_Textua
RESTRICTED CASH (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $0 | $1,352,319 |
Long-term Debt [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $246,895 | $0 |
REAL_ESTATE_PROPERTY_UNDER_DEV1
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Linyi Project [Member] | ||
Real Estate Property Under Development [Line Items] | ||
Area Of Land | 103,385 | |
Use Rights [Member] | ||
Real Estate Property Under Development [Line Items] | ||
Finite-Lived Intangible Assets, Net | $12,092,558 | $11,531,286 |
OTHER_RECEIVABLES_AND_DEPOSITS2
OTHER RECEIVABLES AND DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Receivables And Deposits [Line Items] | ||
Advances to staff | $56,161 | $40,477 |
Rental deposits | 7,483 | 44,154 |
Other receivables | 140,913 | 269,144 |
Other Receivables And Deposit, Net | $204,557 | $353,775 |
OTHER_RECEIVABLES_AND_DEPOSITS3
OTHER RECEIVABLES AND DEPOSITS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Receivables And Deposits [Line Items] | ||
Allowance for Doubtful Other Receivables, Current | $99,437 | $73,864 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $11,252,720 | $10,765,773 |
Less: Accumulated depreciation | -2,112,986 | -1,462,512 |
Property, Plant and Equipment, Net | 9,139,734 | 9,303,261 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 423,461 | 354,446 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 293,100 | 281,975 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 878,732 | 761,702 |
Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $9,657,427 | $9,367,650 |
PROPERTY_AND_EQUIPMENT_NET_Det1
PROPERTY AND EQUIPMENT, NET (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation, Depletion and Amortization, Total | $1,100,170 | $990,401 |
Property And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation, Depletion and Amortization, Total | $647,116 | $454,382 |
INVESTMENT_PROPERTIES_NET_Deta
INVESTMENT PROPERTIES, NET (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Properties [Line Items] | ||
Investment properties | $10,156,116 | $9,851,376 |
Less: Accumulated depreciation | -4,018,297 | -3,449,907 |
Real Estate Investment Property, Net | $6,137,819 | $6,401,469 |
INVESTMENT_PROPERTIES_NET_Deta1
INVESTMENT PROPERTIES, NET (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Investment Properties [Line Items] | ||
Depreciation, Depletion and Amortization, Nonproduction | $453,054 | $536,019 |
INVESTMENT_IN_AND_AMOUNT_DUE_F2
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Revenues | $0 | $0 |
Net loss | 1,171,948 | 470,387 |
Current assets | 56,344,599 | 19,387,419 |
Non-current assets | 794,446 | 298,872 |
Total assets | 57,139,045 | 19,686,291 |
Current liabilities | 45,581,987 | 11,674,515 |
Total equity | $11,557,058 | $8,011,776 |
INVESTMENT_IN_AND_AMOUNT_DUE_F3
INVESTMENT IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATE (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | $5,642,909 | $3,925,770 |
Amount due from an unconsolidated affiliate (Note 9) | 3,086,185 | 4,316,031 |
Due From Related Parties Percentage Of Interest | 15.00% | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 1,171,948 | 470,387 |
Equity Method Investments | 5,642,909 | 3,925,770 |
WHYYL [Member] | ||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | 5,747,224 | 4,316,031 |
Area of Land | 27,950 | |
Equity Method Investment Summarized Financial Information Interest Income | 377,069 | 177,295 |
Amount due from an unconsolidated affiliate (Note 9) | 3,086,185 | 4,316,031 |
Equity Method Investment, Ownership Percentage | 49.00% | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 566,267 | 230,490 |
Equity Method Investments | 5,747,224 | 4,316,031 |
SHXXY [Member] | ||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | 0 | |
Equity Method Investment, Ownership Percentage | 40.00% | |
Equity Method Investments | 0 | |
Impairment Losses Related to Real Estate Partnerships | 316,000 | 60,000 |
XG [Member] | ||
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items] | ||
Investment in an unconsolidated affiliate (Note 9) | 0 | |
Equity Method Investment, Ownership Percentage | 49.00% | |
Equity Method Investments | $0 |
OTHER_INVESTMENTS_NET_Details_
OTHER INVESTMENTS, NET (Details Textual) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | Other Investments [Member] | Other Investments [Member] | Other Investments [Member] | |
USD ($) | USD ($) | CNY | |||
Investment [Line Items] | |||||
Impairment loss on other investments | $0 | $136,060 | $0 | $76,060 | |
Equity Method Investments | $5,642,909 | $3,925,770 | $78,729 | $76,060 | 76,060 |
SHORT_TERM_BORROWINGS_Details_
SHORT TERM BORROWINGS (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
First Sino Bank Loan August 2012 [Member] | First Sino Bank Loan August 2012 [Member] | First Sino Bank Loan August 2012 [Member] | First Sino Bank Loan August 2012 [Member] | First Sino Bank Loan April 2012 [Member] | First Sino Bank Loan April 2012 [Member] | First Sino Bank Loan April 2012 [Member] | First Sino Bank Loan April 2012 [Member] | Bank Of China Loan January 2013 [Member] | Bank Of China Loan January 2013 [Member] | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Non Revolving Credit Facility [Member] | Non Revolving Credit Facility [Member] | Non Revolving Credit Facility [Member] | Non Revolving Credit Facility [Member] | USD ($) | CNY | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $5,002,543 | 30,500,000 | $12,301,332 | 75,000,000 | $1,312,143 | 8,000,000 | ||||
Line of Credit Facility, Interest Rate Description | 1,312,143 | 1,312,143 | this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC | this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC | these agreements have 1-year term, bearing interest at a rate of 7.5% per annum, and are secured by the properties of two unrelated parties and personally guaranteed by Lin Chi-Jung, the Companys CEO, President and Chairman, and his wife. | these agreements have 1-year term, bearing interest at a rate of 7.5% per annum, and are secured by the properties of two unrelated parties and personally guaranteed by Lin Chi-Jung, the Companys CEO, President and Chairman, and his wife. | ||||
Line of Credit Facility, Interest Rate at Period End | 7.69% | 7.69% | 7.69% | 7.69% | ||||||
Restricted Cash and Cash Equivalents | 0 | |||||||||
Long-term Line of Credit | $5,002,543 | 30,500,000 | $5,695,649 | 35,800,000 | $12,301,332 | 75,000,000 | $11,932,225 | 75,000,000 | $1,312,143 | |
Line of Credit Facility, Expiration Date | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 | 31-Mar-15 |
PROMISSORY_NOTES_PAYABLE_Detai
PROMISSORY NOTES PAYABLE (Details Textual) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | Management [Member] | Management [Member] | Unsecured Notes Payable One [Member] | Unsecured Notes Payable One [Member] | Unsecured Notes Payable Two [Member] | Unsecured Notes Payable Two [Member] | Unsecured Notes Payable Two [Member] | Unsecured Notes Payable Three [Member] | Unsecured Notes Payable Three [Member] | Unsecured Notes Payable Four [Member] | Unsecured Notes Payable Four [Member] | Unsecured Notes Payable Four [Member] | Unsecured Notes Payable Five [Member] | Unsecured Notes Payable Five [Member] | Unsecured Notes Payable Five [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | |||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $161,736 | 1,000,000 | $2,308,974 | $3,853,052 | $6,730,779 | 42,476,600 | $300,000 | $948,023 | 5,780,000 | $820,089 | 8,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 36.00% | 36.00% | 7.00% | 7.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Long-term Debt, Gross | 178,779 | 2,308,974 | 3,853,052 | 280,176 | 307,500 | 1,252,276 | 1,088,219 | 1,056,342 | 905,324 | ||||||||
Interest Expense, Debt | $765,171 | $643,711 |
AMOUNTS_DUE_TO_DIRECTORS_Detai
AMOUNTS DUE TO DIRECTORS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors (Note 13) | $10,440,238 | $7,707,172 |
Lin Chi Jung [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors (Note 13) | 10,398,904 | 7,683,507 |
Lin Chao Chin [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors (Note 13) | 1,484 | 1,440 |
Lin Hsin Hung [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Amounts due to directors (Note 13) | $39,850 | $22,225 |
AMOUNTS_DUE_TO_DIRECTORS_Detai1
AMOUNTS DUE TO DIRECTORS (Details Textual) (Lin Chi Jung [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Accrued Salaries | $60,679 | $35,797 |
Officers Or Stockholders Advances | 10,338,225 | 7,647,710 |
Interest Expense, Related Party | 1,915,510 | 737,767 |
Debt Instrument, Debt Default, Amount | $4,591,206 | |
Minimum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Related Party Transaction, Rate | 9.60% | |
Maximum [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Related Party Transaction, Rate | 36.50% |
OTHER_PAYABLES_AND_ACCRUED_EXP2
OTHER PAYABLES AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Payables And Accrued Expenses [Line Items] | ||
Accrued staff commission and bonus | $1,058,882 | $890,419 |
Rental deposits received | 687,700 | 945,309 |
Rental receipts in advance | 151,243 | 0 |
Advances from unrelated parties | 0 | 1,288,680 |
Dividend payable to noncontrolling interests | 0 | 237,582 |
Accrued expenses | 597,453 | 346,861 |
Other payables | 506,303 | 420,304 |
Accrued Liabilities and Other Liabilities | $3,001,581 | $4,129,155 |
INCOME_TAXES_PAYABLE_Details
INCOME TAXES PAYABLE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Payable [Line Items] | ||
Total income tax benefit | ($63,227) | ($13,518) |
Prc Corparate [Member] | ||
Income Tax Payable [Line Items] | ||
Current tax | 207,125 | 175,458 |
Deferred tax debit | ($270,352) | ($188,616) |
INCOME_TAXES_PAYABLE_Details_1
INCOME TAXES PAYABLE (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Payable [Line Items] | ||
Provision for income tax benefit at PRC statutory tax rate of 25% | ($498,634) | ($813,569) |
Permanent differences | -12,473 | 55,274 |
Under (Over)-provision for income tax in prior years | 14,018 | 7,168 |
Change in valuation allowance | 433,862 | 737,609 |
Total income tax benefit | ($63,227) | ($13,518) |
INCOME_TAXES_PAYABLE_Details_T
INCOME TAXES PAYABLE (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Payable [Line Items] | ||
Effective Income Tax Rate, Continuing Operations | 25.00% | 25.00% |
Less: Valuation allowance | $469,400 | $189,375 |
LONG_TERM_BORROWINGS_Details
LONG TERM BORROWINGS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ||
Outstanding borrowings | $11,481,245 | $0 |
Less: Current portion of long term borrowings | 8,036,871 | 0 |
Long-term Debt, Excluding Current Maturities | $3,444,374 | $0 |
LONG_TERM_BORROWINGS_Details_T
LONG TERM BORROWINGS (Details Textual) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||
16-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | 16-May-13 | 16-May-13 | |
USD ($) | China CITIC Bank [Member] | China CITIC Bank [Member] | Loan Payable To Bank [Member] | Loan Payable To Bank [Member] | Loan Payable To Bank [Member] | ||
USD ($) | USD ($) | USD ($) | CNY | ||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $11,481,245 | 70,000,000 | |||||
Accumulated Capitalized Interest Costs | 897,000 | ||||||
Pledged Assets, Not Separately Reported, Real Estate | 31,119,043 | ||||||
Floating Mortgage Ratio | 50.00% | ||||||
Restricted Cash and Cash Equivalents | $246,895 | $0 | |||||
Debt Instrument, Interest Rate During Period | 8.06% | 14.21% | 14.21% | ||||
Debt Instrument, Maturity Date, Description | Two year |
DEFERRED_GOVERNEMNET_SUBSIDY_D
DEFERRED GOVERNEMNET SUBSIDY (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Government Subsidy [Line Items] | ||
Proceeds From Government Subsidies | $0 | $5,252,173 |
STATUTORY_RESERVE_Details_Text
STATUTORY RESERVE (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statutory Accounting Practices [Line Items] | ||
Statutory reserve (Note 19) | 782,987 | $782,987 |
Prc Corparate [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% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 |
Office Equipment [Member] | |
Operating Leased Assets [Line Items] | |
2014 | $16,425 |
2015 | 35,454 |
2016 | 16,425 |
Operating Leases, Future Minimum Payments Due | 68,304 |
SZGFH Properties [Member] | |
Operating Leased Assets [Line Items] | |
2014 | 809,255 |
2015 | 596,866 |
2016 | 392,755 |
Operating Leases, Future Minimum Payments Due | $1,798,876 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments And Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $254,559 | $188,393 |
Percentage Of Rental Return Minimum | 8.50% | |
Percentage Of Rental Return Maximum | 8.80% | |
Operating Lease Period Minimum | 5 years | |
Operating Lease Period Maximum | 8 years | |
Operating Lease Negotiated Description | In 2009, we agreed with certain buyers to amend the agreed 5-year annual return rate from 8.5% to 5.8% and the agreed 8-year annual return rate from 8.8% to 6% for the remaining lease, or to terminate their lease agreements early. | |
Operating Lease Sold To Third Party Description | These leasing agreements on these properties are for 62% of the floor space that was sold to third party buyers | |
Construction Contracts [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating Leases Termination Compensation | $25,200,666 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $12,763,447 | $8,529,990 |
Cost of revenues | -4,841,337 | -4,894,833 |
Gross income | 7,922,110 | 3,635,157 |
Operating expenses | -2,148,198 | -1,401,659 |
General and administrative expenses | -3,585,121 | -3,345,635 |
Operating income (loss) | 2,188,791 | -1,112,137 |
Other income (expenses) | ||
Interest income | 394,201 | 239,079 |
Interest expense | -3,763,555 | -2,420,375 |
Miscellaneous | 8,294 | 39,156 |
Total other (expenses) income | -3,361,060 | -2,142,140 |
Loss before income taxes and equity in net loss of an unconsolidated affiliates | -1,172,269 | -3,254,277 |
Income tax (expense) benefit | 63,227 | 13,518 |
Equity in net loss of an unconsolidated affiliate | -822,267 | -230,490 |
Net income(loss) | -1,931,309 | -3,471,249 |
Real estate property under development | 31,119,043 | 0 |
Total assets | 61,698,318 | 50,192,035 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Cost of revenues | 0 | 0 |
Gross income | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | -411,356 | -217,944 |
Operating income (loss) | -411,356 | -217,944 |
Other income (expenses) | ||
Interest income | 17 | 80 |
Interest expense | -64,829 | -49,157 |
Miscellaneous | 0 | 0 |
Total other (expenses) income | -64,812 | -49,077 |
Loss before income taxes and equity in net loss of an unconsolidated affiliates | -476,168 | -267,021 |
Income tax (expense) benefit | 0 | 0 |
Equity in net loss of an unconsolidated affiliate | -256,000 | 0 |
Net income(loss) | -732,168 | -267,021 |
Real estate property under development | 0 | 0 |
Total assets | 14,920 | 55,681 |
Property Brokerage Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 12,763,447 | 8,529,990 |
Cost of revenues | -4,841,337 | -4,894,833 |
Gross income | 7,922,110 | 3,635,157 |
Operating expenses | -1,328,781 | -1,288,604 |
General and administrative expenses | -2,709,255 | -2,407,600 |
Operating income (loss) | 3,884,074 | -61,047 |
Other income (expenses) | ||
Interest income | 17,115 | 185,696 |
Interest expense | -3,698,726 | -2,371,218 |
Miscellaneous | 8,294 | 13,777 |
Total other (expenses) income | -3,673,317 | -2,171,745 |
Loss before income taxes and equity in net loss of an unconsolidated affiliates | 210,757 | -2,232,792 |
Income tax (expense) benefit | -207,125 | -175,098 |
Equity in net loss of an unconsolidated affiliate | 0 | 0 |
Net income(loss) | 3,632 | -2,407,890 |
Real estate property under development | 0 | 0 |
Total assets | 19,282,576 | 24,322,419 |
Real Estate Development [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Cost of revenues | 0 | 0 |
Gross income | 0 | 0 |
Operating expenses | -819,417 | -113,055 |
General and administrative expenses | -464,510 | -720,091 |
Operating income (loss) | -1,283,927 | -833,146 |
Other income (expenses) | ||
Interest income | 377,069 | 53,303 |
Interest expense | 0 | 0 |
Miscellaneous | 0 | 25,379 |
Total other (expenses) income | 377,069 | 78,682 |
Loss before income taxes and equity in net loss of an unconsolidated affiliates | -906,858 | -754,464 |
Income tax (expense) benefit | 270,352 | 188,616 |
Equity in net loss of an unconsolidated affiliate | -566,267 | -230,490 |
Net income(loss) | -1,202,773 | -796,338 |
Real estate property under development | 31,119,043 | 20,493,851 |
Total assets | $42,400,822 | $25,813,935 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2014 | Nov. 30, 2014 | Mar. 13, 2014 | Mar. 13, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Aug. 07, 2014 | Aug. 07, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Ace Develop [Member] | Ace Develop [Member] | Development Agreement [Member] | Development Agreement [Member] | Investment Agreement [Member] | Investment Agreement [Member] | Investment Agreement [Member] | Investment Agreement [Member] | China Everbright Bank [Member] | China Everbright Bank [Member] | |||
Common Stock [Member] | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | USD ($) | CNY | ||||
USD ($) | sqm | sqm | ||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $16,401,778 | 100,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 14.00% | 14.00% | ||||||||||
Business Combination, Consideration Transferred | 22,142,400 | 135,000,000 | ||||||||||
Area Of Land | 8,934 | 8,934 | ||||||||||
Payments to Acquire Land | 16,401,778 | 100,000,000 | ||||||||||
Investment Agreement Term | 18 months | 18 months | ||||||||||
Real Estate Investments, Joint Ventures | 10,825,173 | 66,000,000 | ||||||||||
Estimated Return Percentage On Investment | 15.00% | 25.00% | ||||||||||
Purchase Options, Discount Percentage | 5.00% | 5.00% | ||||||||||
Debt Instrument, Term | 1 year | 1 year | ||||||||||
Stock Issued During Period, Value, Issued for Services | $3,400,000 | |||||||||||
Stock Issued During Period, Shares, Issued for Services | 40,000,000 | |||||||||||
Common Stock, Shares Outstanding | 28,691,925 | 28,691,925 | 44,511,400 | |||||||||
Noncontrolling Interest, Ownership Percentage By Noncontrolling Owners | 64.80% |