Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 25, 2023 | Jun. 30, 2022 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-32585 | ||
Entity Registrant Name | SUNRISE REAL ESTATE GROUP INC | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 75-2713701 | ||
Entity Address, Address Line One | No. 18, Panlong Road | ||
Entity Address, City or Town | Shanghai | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 201702 | ||
City Area Code | 86-21 | ||
Local Phone Number | 6139-8018 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | SRRE | ||
Security Exchange Name | NONE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,204,973.85 | ||
Entity Common Stock, Shares Outstanding | 68,691,925 | ||
Entity Central Index Key | 0001083490 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | RH CPA | ||
Auditor Firm ID | 6389 | ||
Auditor Location | Bayside, NY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 33,201,354 | $ 24,901,044 |
Restricted cash | 43,869,156 | 73,010,575 |
Transactional financial assets | 10,960,511 | 13,890,946 |
Accounts receivable, net | 204,518 | 65,850 |
Real estate property under development | 120,302,022 | 178,685,026 |
Amount due from unconsolidated affiliates | 16,502,409 | 15,837,851 |
Other receivables and deposits, net | 10,733,460 | 15,241,563 |
Total current assets | 235,773,430 | 321,632,855 |
Property and equipment, net | 1,001,077 | 1,238,416 |
Investment properties, net | 22,673,139 | 26,340,669 |
Deferred tax assets | 0 | 853,364 |
Investments in unconsolidated affiliates | 12,751,061 | 14,320,943 |
Other investments, net | 652,693 | 712,981 |
Goodwill | 1,243,194 | 1,855,655 |
Total assets | 274,094,594 | 366,954,883 |
Current liabilities | ||
Promissory notes payable | 1,435,833 | 1,568,455 |
Amounts due to directors | 480,109 | 525,396 |
Accounts payable | 22,372,938 | 25,120,074 |
Customer deposits | 34,742,361 | 126,175,201 |
Amount due to an affiliate | 49,251,273 | 20,489,304 |
Other payables and accrued expenses | 7,587,515 | 8,819,132 |
Other taxes payable | 255,175 | 404,833 |
Dividends payables | 10,303,789 | 10,303,789 |
Income Taxes payable | 1,848,666 | 683,957 |
Total current liabilities | 128,277,659 | 194,090,141 |
Long-term income tax payable | 1,078,422 | 2,243,118 |
Total liabilities | 129,356,081 | 196,333,259 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 68,691,925 and 68,691,925 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 686,919 | 686,919 |
Additional paid-in capital | 8,110,008 | 8,050,008 |
Statutory reserve | 3,986,618 | 3,986,618 |
Retained earnings | 109,300,636 | 117,729,224 |
Accumulated other comprehensive income | 9,447,265 | 24,738,423 |
Total equity of Sunrise Real Estate Group, Inc. | 131,531,446 | 155,191,192 |
Non-controlling interests | 13,207,067 | 15,430,432 |
Total stockholders' equity | 144,738,513 | 170,621,624 |
Total liabilities and stockholders' equity | $ 274,094,594 | $ 366,954,883 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 68,691,925 | 68,691,925 |
Common stock, shares outstanding | 68,691,925 | 68,691,925 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $ 80,020,189 | $ 54,140,409 |
Cost of revenues | (70,563,802) | (41,233,057) |
Gross profit | 9,456,387 | 12,907,352 |
Operating expenses | (3,029,088) | (3,417,862) |
General and administrative expenses | (8,550,561) | (3,299,319) |
Operating profit (loss) | (2,123,262) | 6,190,171 |
Other income (expenses) | ||
Interest income | 691,096 | 936,108 |
Interest expense | (651,085) | 0 |
Other income (loss) | (2,770,136) | 41,298,243 |
Total Other Income (Expenses) | (2,730,125) | 42,234,351 |
Income (Loss) before income taxes | (4,853,387) | 48,424,522 |
Income taxes | (4,542,509) | (2,140,466) |
Net income /(loss) | (9,395,896) | 46,284,056 |
Less: Net (income) loss attributable to non-controlling interests | 967,308 | (11,238,667) |
Net income (loss) attributable to stockholders of Sunrise Real Estate Group, Inc. | $ (8,428,588) | $ 35,045,389 |
Earnings per share - basic | $ (0.12) | $ 0.51 |
Earnings per share - diluted | $ (0.12) | $ 0.51 |
Weighted average common shares outstanding - Basic | 68,691,925 | 68,691,925 |
Weighted average common shares outstanding - Diluted | 68,691,925 | 68,691,925 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income /(loss) | $ (9,395,896) | $ 46,284,056 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Foreign currency translation adjustment | (16,547,215) | 3,680,999 |
Total comprehensive income (loss) | (25,943,111) | 49,965,055 |
Less: Comprehensive loss attributable to non-controlling interests | 2,223,365 | (13,164,962) |
Total comprehensive income (loss) attributable to stockholders of Sunrise Real Estate Group, Inc. | $ (23,719,746) | $ 36,800,093 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserve | Retained Earnings (Deficits) | Accumulated Other Comprehensive Income | Non-controlling Interests | Total |
Beginning Balance at Dec. 31, 2020 | $ 686,919 | $ 7,570,008 | $ 3,986,618 | $ 100,291,529 | $ 22,918,737 | $ 2,261,537 | $ 137,778,348 |
Beginning Balance (in shares) at Dec. 31, 2020 | 68,691,925 | ||||||
Profit (loss) for the year | $ 0 | 0 | 0 | 34,565,389 | 0 | 11,238,667 | 45,804,056 |
Company Cancellation | 45,288 | 45,288 | |||||
Common stock issued to employees and consultants for services | 480,000 | 480,000 | |||||
Dividend distributions | (17,172,983) | (17,172,983) | |||||
Translation of foreign operations | 1,756,686 | 1,930,228 | 3,686,914 | ||||
Ending Balance at Dec. 31, 2021 | $ 686,919 | 8,050,008 | 3,986,618 | 117,729,224 | 24,738,423 | 15,430,432 | 170,621,624 |
Ending Balance (in shares) at Dec. 31, 2021 | 68,691,925 | ||||||
Profit (loss) for the year | $ 0 | 0 | 0 | (8,428,588) | 0 | (967,308) | (9,395,896) |
Common stock issued to employees and consultants for services | 60,000 | 60,000 | |||||
Translation of foreign operations | (15,291,158) | (1,256,057) | (16,547,215) | ||||
Ending Balance at Dec. 31, 2022 | $ 686,919 | $ 8,110,008 | $ 3,986,618 | $ 109,300,636 | $ 9,447,265 | $ 13,207,067 | $ 144,738,513 |
Ending Balance (in shares) at Dec. 31, 2022 | 68,691,925 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (9,395,896) | $ 46,284,056 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 1,779,670 | 4,281,324 |
Loss (gain) on disposal of property and equipment | 27,559 | 7,666 |
Changes in assets and liabilities | ||
Accounts receivable | (149,204) | 13,264 |
Net Cash from directors | (891) | (23,148,580) |
Real estate property under development | 44,764,605 | (8,455,093) |
Customer deposits | (83,545,766) | 7,204,719 |
Amount due from unconsolidated affiliates | 29,472,050 | (43,324,502) |
Other receivables and deposits | 3,330,221 | (300,077) |
Deferred tax assets | 808,115 | 122,863 |
Dividends | 901,258 | 0 |
Accounts payable | (644,540) | 4,142,878 |
Other payables and accrued expenses | (502,641) | 31,136 |
Taxes payable | 99,955 | (708,968) |
Other Tax payable | (119,403) | (57,580) |
Deferred government subsidy | 0 | (5,135,878) |
Net cash provided by (used in) operating activities | (13,174,908) | (19,042,772) |
Cash flows from investing activities | ||
Acquisition of property, plant and equipment | 190,148 | 109,047 |
Proceeds from disposal of plant and equipment | 0 | 0 |
Capital injection to unconsolidated affiliates, net | 0 | 0 |
Acquisition of investment | 0 | 0 |
Transactional financial assets | 1,816,348 | 11,565,629 |
Dividend distribution of affiliates | 0 | 16,690,371 |
Net cash provided by investing activities | 1,626,200 | 28,146,953 |
Cash flows from financing activities | ||
Advances from an affiliate | 0 | 0 |
Dividends paid | 0 | 6,869,193 |
Restricted cash | 23,759,027 | (15,458,728) |
Net cash (used in) financing activities | 23,759,027 | (22,327,921) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,910,009) | (2,244,828) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (8,300,310) | (15,468,568) |
Cash, cash equivalents, and restricted cash at beginning of year | 24,901,044 | 40,369,612 |
Cash, cash equivalents, and restricted cash at end of year | 33,201,354 | 24,901,044 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 4,542,509 | 345,095 |
Interest paid | $ 1,485,288 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS Sunrise Real Estate Group, Inc. (“ SRRE Parallax As of December 31, 2022, the Company has the following major subsidiaries and equity investments. % of Ownership Relationship Date of Place of held by the with the Company Name Incorporation Incorporation Company Company Principal Activity Sunrise Real Estate Development Group, Inc. (CY-SRRE) April 30, 2004 Cayman Islands 100 % Subsidiary Investment holding Lin Ray Yang Enterprise Limited (“LRY”) November 13, 2003 British Virgin Islands 100 % Subsidiary Investment holding Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100 % Subsidiary Property brokerage services Shanghai Shang Yang Investment Management and consultation Company Limited (“SHSY”) February 5, 2004 PRC 100 % Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25 % 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75 % Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34 % 2 Subsidiary Real estate development Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100 % Subsidiary Property brokerage services Shanghai Rui Jian Design Company Limited (“SHRJ”) August 15, 2011 PRC 100 % Subsidiary Property brokerage services Linyi Rui Lin Construction and Design Company Limited (“LYRL”) March 6, 2012 PRC 100 % Subsidiary Investment holding Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) December 28, 2009 PRC 49 % Equity investment Real estate development Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”) September 28, 2011 PRC 20 % Equity investment Property brokerage services Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91 % 3 Equity investment Import and export trading Shanghai Hui Tian (“SHHT”) July 25, 2014 PRC 100 % Subsidiary Investment holding Shanghai Shangyang T July 25, 2014 PRC 19.91 % Subsidiary Investment holding Huaian Zhanbao Industrial Co., Ltd. (“HAZB”) December 6, 2018 PRC 78.46 % 4 Subsidiary Investment holding Huaian Tianxi Real Estate Development Co., Ltd (“HATX”) October, 2018 PRC 78.46 % 4 Subsidiary Investment holding Shanghai Taobuting Media Co., Ltd. (“TBT”) July 1, 2020 PRC 7.5 % Subsidiary Streaming platform 1. After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY 49% , SHXJY 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE) 12.5% , totaling 75.25% equity interest in SZSY. 2. The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase. 3. On January 28, 2013, CY-SRRE, SZXJY and an unrelated party established a subsidiary in the PRC, SHXJYB, with CY-SRRE holding 15% equity interest and SZXJY holding 60% equity interest in SHXYJB. 4. In December 2019, SHDEW had an employee stock bonus where its employees received their issued shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% . CY-SRRE was established in the Cayman Islands on April 30, 2004 as a limited liability company. CY-SRRE was wholly owned by Ace Develop Properties Limited (“Ace Develop”), a corporation, of which Lin Chi-Jung, an individual, is the principal and controlling shareholder. SHXJY was established in the People’s Republic of China (“PRC”) on August 20, 2001 as a limited liability company. SHXJY was originally owned by a Taiwanese company, of which the principal and controlling shareholder was Lin Chi-Jung. On June 8, 2004, all the fully paid up capital of SHXJY was transferred to CY-SRRE. On June 25, 2004, SHXJY and two individuals established a subsidiary, SZXJY in the PRC, at which point in time, SHXJY held a 90% equity interest in SZXJY. On August 9, 2005, SHXJY sold 10% equity interest in SZXJY to a company owned by a director of SZXJY and transferred 5% equity interest in SZXJY to CY-SRRE. Following the disposal and the transfer, CY-SRRE effectively held 80% equity interest in SZXJY. LRY was established in the British Virgin Islands on November 13, 2003 as a limited liability company. LRY was owned by Ace Develop, Planet Technology Corporation (“Planet Tech”) and Systems & Technology Corporation (“Systems Tech”). On February 5, 2004, LRY established a wholly owned subsidiary, SHSY in the PRC as a limited liability company. On August 31, 2004, SRRE, CY-SRRE and Lin Chi-Jung, an individual and agent for the beneficial shareholder of CY-SRRE, i.e., Ace Develop, entered into an exchange agreement under which SRRE issued 5,000,000 shares of common stock to the beneficial shareholder or its designees, in exchange for all outstanding capital stock of CY-SRRE. The transaction was closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of CY-SRRE and the principal and controlling shareholder of Ace Develop. Also on August 31, 2004, SRRE, LRY and Lin Chi-Jung, an individual and agent for beneficial shareholders of LRY, i.e., Ace Develop, Planet Tech and SystemsTech, entered into an exchange agreement under which SRRE issued 10,000,000 shares of common stock to the beneficial shareholders, or their designees, in exchange for all outstanding capital stock of LRY. The transaction was closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of LRY and the principal and controlling shareholder of Ace Develop. Regarding the 10,000,000 shares of common stock of SRRE issued in this transaction, SRRE issued 8,500,000 shares to Ace Develop, 750,000 shares to Planet Tech and 750,000 shares to Systems Tech. As a result of the acquisition, the former owners of CY-SRRE and LRY hold a majority interest in the combined entity. Generally accepted accounting principles require in certain circumstances that a company whose shareholders retain the majority voting interest in the combined business be treated as the acquirer for financial reporting purposes. Accordingly, the acquisition has been accounted for as a “reverse acquisition” arrangement whereby CY-SRRE and LRY are deemed to have purchased SRRE. However, SRRE remains the legal entity and the Registrant for Securities and Exchange Commission reporting purposes. All shares and per share data prior to the acquisition have been restated to reflect the stock issuance as a recapitalization of CY-SRRE and LRY. On January 10, 2005, LRY and a PRC third party established a subsidiary, SZGFH, a limited liability company in the PRC, with LRY holding 80% of the equity interest in SZGFH. On May 8, 2006, LRY acquired 20% of the equity interest in SZGFH from the third party. Following the acquisition, LRY effectively held 100% of the equity interest in SZGFH. The Company sold SZGFH in 2017. On November 24, 2006, CY-SRRE, SHXJY, a shareholder of SZXJY and a third party established a subsidiary, SZSY in the PRC, with CY-SRRE holding 12.5% equity interest, SHXJY holding 26% equity interest and the shareholder of SZXJY holding 12.5% equity interest in SZSY. At the date of incorporation, SRRE and the shareholder of SZXJY entered into a voting agreement that SRRE is entitled to exercise the voting right in respect of its 12.5% equity interest in SZSY. Following that, SRRE effectively holds 51% of the voting rights in SZSY. On September 24, 2007, CY-SRRE sold 5% equity interest in SZXJY to a company owned by a director of SZXJY. Following the disposal, CY-SRRE effectively holds 75% equity interest in SZXJY. In October 2011, SHXJY purchased 24% interest in Linyi Shang Yang Real Estate Consultation Company Limited (“ LYSY LYRL On March 6, 2012, SHXJY established a subsidiary in the PRC — LYRL. The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY. At the date of its incorporation, SHXJY transferred its 24% equity interest in LYSY to LYRL. On August 2014, all the equity interest in LYRL was transferred to SHRJ. On June 6, 2013, SHSY and LYRL together with 4 investors established a company, Shanghai Daerwei (“SHDEW”), in the PRC focusing on the cosmetics and skincare business. SHSY holds 12.6% equity interest and LYRL holds 7.3% equity interest in SHDEW. As the Company does not have significant influence in SHDEW , we adopted the alternative measurement accounting method for the SHDEW investment. On July 25, August 19 and October 15, 2014 respectively, the Company established three investment holding company separately, namely SHHT, SHSYTX and SZSYHT. These three companies were wholly owned subsidiary to the Company and have not commenced their operations. In the year 2017, SHSYTX has transferred its shares of 76.92% to other shareholders and has 19.9% as of 2020. SZSYHT has transferred all of its shares to other shareholders. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters. In December 2018 we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and tis land usage rights to the Huaian property. The Huaian project, named Tianxi Times, started its first phase development in early 2019 with a GFA of 82,218 sqm totaling 679 units, and started its second phase in middle 2020 with a GFA of 99,123 sqm totaling 873 units. As of March 31, 2023, the Company sold and pre-sold 343 units and 327 units, respectively, out of 679 units of first phase and pre-sold 364 out of 873 of second phase. The principal activities of the Company are real estate development, including property marketing, leasing and management services in the PRC. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Principles of Consolidation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ U.S. GAAP The consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation. Investments in business entities, in which the Company does not have control but can exercise significant influence over operating and financial policies, are accounted for using the equity method. Use of Estimates The preparation of financial statements in accordance with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification (“ ASC ASC 820 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 following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022. Description Level 1 Level 2 Level 3 Total 4,795,862 4,795,862 Wealth management investment products 6,164,649 6,164,649 Investment in transactional equity securites — — Total $ 10,960,511 $ — $ — $ 10,960,511 The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021. Description Level 1 Level 2 Level 3 Total 4,603,522 4,603,522 Wealth management investment products 9,287,424 9,287,424 Investment in transactional equity securites — — Total $ 13,890,946 $ — $ — $ 13,890,946 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, 2022 and 2021, there was no single customer that represented more than 10% of our net revenues. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all high liquidity investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various banks in the PRC which are not insured or otherwise protected. Should any of these banks holding the Company’s cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds for any reason, the Company could lose the cash on deposit with that particular bank. Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“ $ 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, 2022 and December 31, 2021 were $1: RMB6.9646 and $1: RMB6.3757 respectively. The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation. Real Estate Property under Development Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value. Expenditures for land development, including cost of land use rights, deed tax, and pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. In accordance with ASC 360, “Property, Plant and Equipment” (“ ASC 360 For the years ended December 31, 2022 and 2021, the Company had not recognized any impairment for real estate property under development. Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over the estimated useful lives of the assets as follows: Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 Maintenance, repairs and minor renewals are charged directly to the statement of operations as incurred. Additions and improvements are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations. Investment Properties, Net Investment properties are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over their respective estimated useful lives of 20 years. Significant additions that extend property lives are capitalized and are depreciated over their respective estimated useful lives. Routine maintenance and repair costs are expensed as incurred. Impairment of Long-lived Assets In accordance with ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“ ASC 360 The Company 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, 2022 and 2021. Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists. Customer Deposits Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized. Long Term Investments The Company accounts for long term investments in equities as follows. Investments in Unconsolidated Affiliates Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. During the years ended December 31, 2022 and 2021, the Company provided no allowance for impairment loss on investments in unconsolidated affiliates. Other Investments Where the Company has no significant influence, the investment is classified as other investments in the balance sheet and is carried under the measurement alternative method. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. During the year ended December 31, 2022 and 2021, the Company provided no allowance for impairment loss on other investments. Revenue Recognition Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized at a point in time when the customer obtains control of the asset. All revenues represent gross revenues less sales and business tax. ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. Comprehensive Income (Loss) In accordance with ASC 220-10-55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive loss during the years ended December 31, 2022 and 2021 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 Stock-Based Compensation The Company accounts for equity instruments issued to employees in accordance with the provisions of ASC 718 Stock Compensation (ASC 718) and Equity-Based Payments to Non-employees pursuant to ASC 2018-07 (ASC 2018-07). The fair values of stock options were determined using the Black-Scholes options pricing model. Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ ASC 740 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, 2022 and 2021. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed consolidated financial statements. New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTED CASH | |
RESTRICTED CASH | NOTE 3 — RESTRICTED CASH The Company is required to maintain certain deposits with the bank for those home buyers that has applied for a housing loan from their bank. This deposit is a percentage to each home buyer’s bank loan for the purpose of purchasing in our project. Once we complete the handover to the buyer, these deposits become unrestricted. As of December 31, 2022 and December 31, 2021, the Company held cash deposits of $43,869,156 and $73,010,575, respectively. |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
TRANSACTIONAL FINANCIAL ASSETS | |
TRANSACTIONAL FINANCIAL ASSETS | NOTE 4 — TRANSACTIONAL FINANCIAL ASSETS As of December 31, 2022, we have $10,960,511 invested in bank wealth management investment products. The investments have short maturity periods and can be rolled into a maturity date of our choosing or automatically rolled into subsequent maturity period. The annualized rate of return may range from 2.08% to 2.70% depending on the amount and time period invested. |
REAL ESTATE PROPERTY UNDER DEVE
REAL ESTATE PROPERTY UNDER DEVELOPMENT | 12 Months Ended |
Dec. 31, 2022 | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |
REAL ESTATE PROPERTY UNDER DEVELOPMENT | NOTE 5 — REAL ESTATE PROPERTY UNDER DEVELOPMENT Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 square meters for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012. We sold 119 of 121 Phase 1 villas, sold all 84 units in Phase 2, and pre-sold 23 units out of 51 units in Phase 3 as of March 15, 2023. In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters (“sqm”). In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of March 15, 2023, the Company sold 669 units, respectively, out of 679 units of the first phase and sold and pre-sold 177 and 266 units out of 873 of the second phase. As of December 31, 2022, land use rights included in real estate property under development totaled $120,302,022. |
OTHER RECEIVABLES AND DEPOSITS
OTHER RECEIVABLES AND DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER RECEIVABLES AND DEPOSITS | |
OTHER RECEIVABLES AND DEPOSITS | NOTE 6 — OTHER RECEIVABLES AND DEPOSITS December 31, December 31, 2022 2021 Advances to staff $ 327,262 $ 37,383 Rental deposits 735,860 803,515 Prepaid expense 28,153 21,332 Prepaid tax 7,783,185 12,610,075 Other receivables 1,859,000 1,769,259 $ 10,733,460 $ 15,241,563 Prepaid tax is taxes prepaid from the apartment sold but have not delivered to the owner of HATX project with the amount of $6,043,994 and Linyi project with te amount of $1,739,191. Other receivables and deposits as of December 31, 2022 are stated net of allowance for doubtful accounts of $1,233,179 (2021: $515,604). Other receivables of $1,859,000 mainly consists of $799,759 from Shanghai Wu Zhao Hao and $717,916 from Shanxi Guoguang. The allowance for doubtful account is mostly come from the consulting fee for the investigation of Administration of Market Regulation of Yuhua District, Hebei Province in the year of 2022. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 — PROPERTY AND EQUIPMENT, NET December 31, December 31, 2022 2021 Furniture and fixtures $ 223,960 $ 233,678 Computer and office equipment 135,163 368,165 Motor vehicles 747,185 737,987 Properties 2,172,338 2,372,989 3,278,646 3,712,820 Less: Accumulated depreciation 2,277,569 2,474,404 $ 1,001,077 $ 1,238,416 During the year ended December 31, 2022, depreciation and amortization expense for property and equipment amounted to $196,835. |
INVESTMENT PROPERTIES, NET
INVESTMENT PROPERTIES, NET | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT PROPERTIES, NET | |
INVESTMENT PROPERTIES, NET | NOTE 8 – INVESTMENT PROPERTIES, NET December 31, December 31, 2022 2021 Investment properties $ 33,367,887 $ 36,449,956 Less: Accumulated depreciation (10,694,748) (10,109,287) $ 22,673,139 $ 26,340,669 During the year ended December 31, 2022, depreciation and amortization expense for investment properties amounted to $1,489,873. |
INVESTMENTS IN AND AMOUNT DUE F
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | |
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | NOTE 9 — INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES The investments in unconsolidated affiliates primarily consist of SHDEW (19.91%) and SHTX (19.9%). As of December 31, 2022, the investment amount in SHDEW was $12,722,344 and in SHTX was $28,717. SHDEW was established in June 2013 as a skincare and cosmetic company which developing its own skincare products. SHDEW sells products under its own brands as well as the products of third parties. The products include skincare, cosmetics, personal care products such as soaps, shampoos, skin care devices and children’s apparel. SHDEW is improving its own online shopping platform where consumers can purchase its cosmetics and skincare products as well as products imported into China. The online shopping platform has been in operation since 2017. |
OTHER INVESTMENTS, NET
OTHER INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2022 | |
OTHER INVESTMENTS, NET | |
OTHER INVESTMENTS, NET | NOTE 10 — OTHER INVESTMENTS, NET According to ASU 2016-01, where the Company has no significant influence, the investment is classified as other investments in the balance sheet and is carried under the measurement alternative method. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of December 31, 2022 and December 31, 2021, the carrying amount of the Company’s measurement alternative investments was $652,693 and $712,981, respectively. The Company performs Impairment assessment of its investments under the measurement alternative whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. Impairment charges in connection with the measurement alternative investments of nil were recorded in others, net in the Consolidated Statements of Operations and Comprehensive Income/(Loss) for the years ended December 31, 2022 and 2021, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
GOODWILL | NOTE 11 — GOODWILL In April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group in the amount of 22.17 million RMB ($3,398,213). The amount of $1,243,194 of goodwill is from the difference between the investment cost and book value. The Company has not recorded any impairments of goodwill. |
PROMISSORY NOTES PAYABLE
PROMISSORY NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
PROMISSORY NOTES PAYABLE | |
PROMISSORY NOTES PAYABLE | NOTE 12 — PROMISSORY NOTES PAYABLE The promissory notes payable consists of the following unsecured notes to unrelated parties. Included in the balances are promissory notes with outstanding principal and unpaid interest of an aggregate of $1,435,833 and $1,568,455 as of December 31, 2022 and December 31, 2021, respectively. The promissory note with a principal as of December 31, 2022 amounting to $717,916 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2022, and December 31, 2021, the outstanding principal and unpaid interest related to this promissory note amounted to $717,916 and $784,228, respectively. The promissory note with a principal as of December 31, 2022 amounting to $717,916 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2022, and December 31, 2021, the outstanding principal and unpaid interest related to this promissory note amounted to $717,916 and $784,228, respectively. During the year ended December 31, 2022 and 2021, there were no interest expenses related to these promissory notes. |
AMOUNTS DUE TO DIRECTORS
AMOUNTS DUE TO DIRECTORS | 12 Months Ended |
Dec. 31, 2022 | |
Directors | |
AMOUNTS DUE TO DIRECTORS | |
AMOUNTS DUE TO DIRECTORS | NOTE 13 — AMOUNTS DUE TO DIRECTORS December 31, December 31, 2022 2021 Lin Chi-Jung $ 459,299 $ 50,663 Lin Hsin-Hung 20,811 22,733 $ 480,109 $ 525,396 (a) The balance due to Lin Chi-Jung consists of temporary advances. The balances are unsecured, interest-free and have no fixed term of repayment. (b) The balances due to Lin Hsin-Hung was unsecured, interest-free and have no fixed term of repayment . |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | NOTE 14 — ACCOUNTS PAYABLE As of December 31, 2022, and 2021, the balances of accounts payable were $22,372,938 and $225,120,074 |
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
CUSTOMER DEPOSITS | |
CUSTOMER DEPOSITS | NOTE 15 — CUSTOMER DEPOSITS Customer deposits consisted of the sales from real estate development project (the Linyi project and the HATX project) which cannot be recognized as revenue at the accounting period and deposits received for rental. The Linyi project started pre-sales in November 2013 and in 2019, the Linyi project has recognized its revenue along with customer deposits. As of December 31, 2022, the pre-sales amounted to $6,067,204. The HATX project started pre-sales in December 2019, and as of December 31, 2022 the pre-sales amounted to $30,015,726. |
AMOUNT DUE TO AFFILIATES
AMOUNT DUE TO AFFILIATES | 12 Months Ended |
Dec. 31, 2022 | |
Due To Affiliate | |
AMOUNT DUE TO AFFILIATES | |
AMOUNT DUE TO AFFILIATES | NOTE 16 — AMOUNT DUE TO AFFILIATES As of December 31, 2022, the amounts due to Shanghai Shengji (“SHSJ”) a shareholder of HATX, $48,742,263 and to JXSY, $509,010, were an intercompany transfer for day-to- day operations. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 17 — OTHER PAYABLES AND ACCRUED EXPENSES December 31, December 31, 2022 2021 Accrued staff commission and bonus $ 185,124 $ 272,025 Rental deposits received 164,566 110,171 Bid bond 90,457 103,518 Other payables 6,954,170 8,122,375 Dividends payable to non-controlling interest 193,198 211,043 $ 7,587,515 $ 8,819,132 Other payables are advances from unrelated parties and are unsecured, interest-free and have no fixed term of repayment. Other payables are mainly from the advance from SHSJ, our related party, in the amount of $6,760,876 for the benefit of HATX project. |
INCOME TAXES PAYABLE
INCOME TAXES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES PAYABLE | |
INCOME TAXES PAYABLE | NOTE 18 — INCOME TAXES PAYABLE The 2017 Tax Act was enacted on December 22, 2017. Due to the complexities involved in the accounting for the 2017 Tax Act, the SEC issued SAB 118, which provides guidance on the application of US GAAP for income taxes in the period of enactment. SAB 118 requires companies to include in their financial statements a reasonable estimate of the impact of the 2017 Tax Act, to the extent such an estimate has been determined. As a result, our financial results reflect the income tax effects of the 2017 Tax Act for which the accounting is complete, as well as provisional amounts for those impacts for which the accounting is incomplete but a reasonable estimate could be determined. The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering the corporate income tax rate to 21%, implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Toll Charge). As a fiscal-year taxpayer, certain provisions of the Tax Legislation impacted the Company in fiscal 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions will be effective starting at the beginning of fiscal 2019, including the implementation of a modified territorial tax system. The U.S. federal income tax rate reduction was effective as of January 1, 2018. Year Ended December 31, 2022 2021 Income /(loss) before income tax expense Income /(loss) from China operations $ 7,783,154 $ 14,146,527 Income /(loss) from non-China operations 27,726,545 7,019,495 Total income /(loss) before income tax expense 35,509,699 21,166,021 Income tax expense applicable to China operations Current tax 2,599,250 1,389,328 Deferred tax — — Subtotal income tax expense applicable to China operations 2,599,250 1,389,328 Non-China income tax expense/(benefit) 2,970,576 751,138 Total income tax expense $ 5,569,826 $ 2,140,466 In 2022, of the $27,726,545 income tax expense, was for PRC tax, mainly attributable to the non-U.S. subsidiaries of the Company’s business operations and $0 was for U.S. corporate income tax, resulting primarily from a one-time transition tax recognized in the fourth quarter of 2017 that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries of the Company mandated by the U.S. Tax Reform. The Company may make an election to pay the one-time transition tax over eight years commencing in April 2021 or pay in a single lump sum. Effective Tax Rate The following is reconciliation between the U.S. federal statutory rate and the Company’s effective tax rate: 2022 2021 PRC Statutory rate 25 % 25 % Effect of the U.S. Transition Tax under the 2017 TCJA 0 % — % Effect of income not taxable for PRC tax purposes 33.4 % 9.8 % Under (Over)-provision for income taxes in prior years 0.0 % — % Effective income tax rate 15.69 % 10.1 % Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities consist of the following: As of December 31, 2022 2021 Deferred tax assets: Net operating loss from operations $ — $ — Total deferred tax assets — — Less: Valuation allowance — — Net deferred tax assets $ — $ — In assessing the reliability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or are utilized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are tested whether they are deductible or can be utilized, the Company recorded the deferred tax assets resulting from net operating loss carry forwards of $ NIL NIL The Company adopted ASC 740-10-25 Accounting for Uncertainty in Income Taxes and such adoption did not have any material impact on the accompanying consolidated financial statements. The Company is subject to income taxes in the PRC. Tax regulations are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. All tax positions taken, or expected to be taken, continue to be more likely than not ultimately settled at the full amount claimed. The Company’s tax filings are subject to the PRC tax bureau’s examination for a period up to five years. The Company is not currently under any examination by the PRC tax bureau. |
STATUTORY RESERVE
STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2022 | |
STATUTORY RESERVE | |
STATUTORY RESERVE | 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 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, 2022, the Company’s statutory reserve fund was $3,986,618. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 — COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company leases certain of its office properties under non-cancellable operating lease arrangements. Payments under operating leases are expensed on a straight-line basis over the periods of their respective terms, and the terms of the leases do not contain rent escalation, or contingent rent, renewal, or purchase options. There are no restrictions placed upon the Company by entering into these leases. Rental expenses under operating leases for the year ended December 31, 2022 and 2021 were $178,251 and $194,372, respectively. As of December 31, 2022, the Company had the following operating lease obligations falling due. Amount Year Ending Within one year $ 122,999 Two to five years — $ 122,999 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 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, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 668,452 $ 79,351,737 $ — $ — $ 80,020,189 Cost of revenues (954,553) (69,609,249) — — (70,563,802) Gross profit (286,101) 9,742,488 — — 945,637 Operating expenses (1,901,469) (1,127,619) — — (3,029,088) General and administrative expenses (1,200,913) (6,644,703) — (704,945) (8,550,561) Operating loss (3,388,483) 1,970,166 — (704,945) (2,123,262) Other income (expenses) Interest income 30,275 598,140 — 62,681 691,096 Interest expense 438,705 (438,705) — (651,085) (651,085) Other income, Net (2,807,313) (55,064) 192,241 (100,000) (2,770,136) Total other (expenses) income (2,338,333) 104,371 192,241 (688,404) (2,730,125) Income (loss) before income taxes (5,726,816) 2,074,537 192,241 (1,393,349) (4,853,387) Income tax (1,571,933) — — (2,970,576) (4,542,509) Net Income (loss) $ (7,298,749) $ 2,074,537 $ 192,241 $ (4,363,925) $ (9,395,896) Year Ended December 31, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 814,142 $ 53,326,267 $ — $ — $ 54,140,409 Cost of revenues (1,102,304) (40,130,753) — — (41,233,057) Gross profit (288,162) 13,195,514 — — 12,907,352 Operating expenses (148,989) (3,268,873) — — (3,417,862) General and administrative expenses (1,066,130) (1,524,915) — (708,274) (3,299,319) Operating loss (1,503,281) 8,401,726 — (708,274) 6,190,171 Other income (expenses) Interest income (11,199) 942,807 — 4,500 936,108 Interest expense — — — — — Other income, Net 25,917,799 2,175,486 36,220,836 (23,015,878) 41,298,243 Total other (expenses) income 25,906,600 3,118,293 36,220,836 (23,011,378) 42,234,351 Income (loss) before income taxes 24,403,320 11,520,019 36,220,836 (23,719,652) 48,424,522 Income tax (127,027) (1,262,301) — (751,138) (2,140,466) Net Income (loss) $ 24,276,293 $ 10,257,718 $ 36,220,836 $ (24,470,790) $ 46,284,056 Property Brokerage Real Estate Investment* Services Development Transaction Others Total As of December 31, 2022 Real estate property under development $ — $ 120,302,022 $ — $ — $ 120,302,022 Total assets (16,964,879) 144,727,138 24,364,265 88,038,312 274,094,594 As of December 31, 2021 Real estate property under development $ — $ 178,685,026 $ — $ — $ 178,685,026 Total assets 26,587,257 239,423,176 28,924,870 72,019,580 366,954,883 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 22 — RELATED PARTY TRANSACTIONS A related party is an entity that can control or significantly influence the management or operating policies of another entity to the extent one of the entities may be prevented from pursuing its own interests. A related party may also be any party the entity deals with that can exercise that control. We rented an office in downtown Shanghai for displaying purpose from Mrs. Zhang Shuqing, our related party, for $86,150 in 2022. We rented an office about 71sqm in Pudong, Shanghai from SHDEW, our related party for $3,709 per month for one year period. We have reached a loan agreement with SHSJ, our related party of $28,716,652 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 23 — SUBSEQUENT EVENTS On January 16, 2023, the Company’s Board of Directors declared a cash dividend of $0.15 per share payable April 5, 2023 to shareholders of record as of January 30, 2023. The ex-dividend date will be January 27, 2023. In March,2023, we purchased a Singapore company 100% shares with the cost of USD$ NIL |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“ U.S. GAAP The consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation. Investments in business entities, in which the Company does not have control but can exercise significant influence over operating and financial policies, are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the provisions of Accounting Standards Codification (“ ASC ASC 820 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 following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022. Description Level 1 Level 2 Level 3 Total 4,795,862 4,795,862 Wealth management investment products 6,164,649 6,164,649 Investment in transactional equity securites — — Total $ 10,960,511 $ — $ — $ 10,960,511 The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021. Description Level 1 Level 2 Level 3 Total 4,603,522 4,603,522 Wealth management investment products 9,287,424 9,287,424 Investment in transactional equity securites — — Total $ 13,890,946 $ — $ — $ 13,890,946 |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, other receivables and deposits, and amount due from an unconsolidated affiliate. The Company places its cash and cash equivalents with reputable financial institutions with high credit ratings. The Company conducts credit evaluations of customers and generally does not require collateral or other security from customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors relevant to determining the credit risk of specific customers. The amount of receivables ultimately not collected by the Company has generally been consistent with management’s expectations and the allowance established for doubtful accounts. |
Major Customers | Major Customers During the year ended December 31, 2022 and 2021, there was no single customer that represented more than 10% of our net revenues. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all high liquidity investments with an original maturity of three months or less. The Company maintains cash and cash equivalents with various banks in the PRC which are not insured or otherwise protected. Should any of these banks holding the Company’s cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds for any reason, the Company could lose the cash on deposit with that particular bank. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“ $ 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, 2022 and December 31, 2021 were $1: RMB6.9646 and $1: RMB6.3757 respectively. The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation. |
Real Estate Property under Development | Real Estate Property under Development Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value. Expenditures for land development, including cost of land use rights, deed tax, and pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs. Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results. In accordance with ASC 360, “Property, Plant and Equipment” (“ ASC 360 For the years ended December 31, 2022 and 2021, the Company had not recognized any impairment for real estate property under development. |
Capitalization of Interest | Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over the estimated useful lives of the assets as follows: Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 Maintenance, repairs and minor renewals are charged directly to the statement of operations as incurred. Additions and improvements are capitalized. When assets are disposed of, the related cost and accumulated depreciation thereon are removed from the accounts and any resulting gain or loss is included in the statement of operations. |
Investment Properties, Net | Investment Properties, Net Investment properties are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method to allocate the cost of depreciable assets over their respective estimated useful lives of 20 years. Significant additions that extend property lives are capitalized and are depreciated over their respective estimated useful lives. Routine maintenance and repair costs are expensed as incurred. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“ ASC 360 The Company 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, 2022 and 2021. |
Goodwill | Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists. |
Customer Deposits | Customer Deposits Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized. |
Long Term Investments | Long Term Investments The Company accounts for long term investments in equities as follows. Investments in Unconsolidated Affiliates Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. During the years ended December 31, 2022 and 2021, the Company provided no allowance for impairment loss on investments in unconsolidated affiliates. Other Investments Where the Company has no significant influence, the investment is classified as other investments in the balance sheet and is carried under the measurement alternative method. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. During the year ended December 31, 2022 and 2021, the Company provided no allowance for impairment loss on other investments. |
Revenue Recognition | Revenue Recognition Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized at a point in time when the customer obtains control of the asset. All revenues represent gross revenues less sales and business tax. ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) In accordance with ASC 220-10-55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive loss during the years ended December 31, 2022 and 2021 were net loss and foreign currency translation adjustments. |
Net Earnings (Loss) per Common Share | Net Earnings (Loss) per Common Share The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ ASC 260 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for equity instruments issued to employees in accordance with the provisions of ASC 718 Stock Compensation (ASC 718) and Equity-Based Payments to Non-employees pursuant to ASC 2018-07 (ASC 2018-07). The fair values of stock options were determined using the Black-Scholes options pricing model. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ ASC 740 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, 2022 and 2021. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Schedule of major subsidiaries and equity investments | As of December 31, 2022, the Company has the following major subsidiaries and equity investments. % of Ownership Relationship Date of Place of held by the with the Company Name Incorporation Incorporation Company Company Principal Activity Sunrise Real Estate Development Group, Inc. (CY-SRRE) April 30, 2004 Cayman Islands 100 % Subsidiary Investment holding Lin Ray Yang Enterprise Limited (“LRY”) November 13, 2003 British Virgin Islands 100 % Subsidiary Investment holding Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) August 20, 2001 PRC 100 % Subsidiary Property brokerage services Shanghai Shang Yang Investment Management and consultation Company Limited (“SHSY”) February 5, 2004 PRC 100 % Subsidiary Property brokerage services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) November 24, 2006 PRC 75.25 % 1 Subsidiary Property brokerage and management services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) June 25, 2004 PRC 75 % Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) October 13, 2011 PRC 34 % 2 Subsidiary Real estate development Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) September 18, 2008 PRC 100 % Subsidiary Property brokerage services Shanghai Rui Jian Design Company Limited (“SHRJ”) August 15, 2011 PRC 100 % Subsidiary Property brokerage services Linyi Rui Lin Construction and Design Company Limited (“LYRL”) March 6, 2012 PRC 100 % Subsidiary Investment holding Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) December 28, 2009 PRC 49 % Equity investment Real estate development Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”) September 28, 2011 PRC 20 % Equity investment Property brokerage services Shanghai Da Er Wei Trading Company Limited (“SHDEW”) June 6, 2013 PRC 19.91 % 3 Equity investment Import and export trading Shanghai Hui Tian (“SHHT”) July 25, 2014 PRC 100 % Subsidiary Investment holding Shanghai Shangyang T July 25, 2014 PRC 19.91 % Subsidiary Investment holding Huaian Zhanbao Industrial Co., Ltd. (“HAZB”) December 6, 2018 PRC 78.46 % 4 Subsidiary Investment holding Huaian Tianxi Real Estate Development Co., Ltd (“HATX”) October, 2018 PRC 78.46 % 4 Subsidiary Investment holding Shanghai Taobuting Media Co., Ltd. (“TBT”) July 1, 2020 PRC 7.5 % Subsidiary Streaming platform 1. After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY 49% , SHXJY 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE) 12.5% , totaling 75.25% equity interest in SZSY. 2. The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase. 3. On January 28, 2013, CY-SRRE, SZXJY and an unrelated party established a subsidiary in the PRC, SHXJYB, with CY-SRRE holding 15% equity interest and SZXJY holding 60% equity interest in SHXYJB. 4. In December 2019, SHDEW had an employee stock bonus where its employees received their issued shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of major categories of assets and liabilities measured at fair value on a recurring basis | The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022. Description Level 1 Level 2 Level 3 Total 4,795,862 4,795,862 Wealth management investment products 6,164,649 6,164,649 Investment in transactional equity securites — — Total $ 10,960,511 $ — $ — $ 10,960,511 The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2021. Description Level 1 Level 2 Level 3 Total 4,603,522 4,603,522 Wealth management investment products 9,287,424 9,287,424 Investment in transactional equity securites — — Total $ 13,890,946 $ — $ — $ 13,890,946 |
Schedule of property and equipment estimated useful lives | Estimated Useful Life (in years) Furniture and fixtures 5‑10 Computer and office equipment 3‑5 Motor vehicles 5 Properties 20 |
OTHER RECEIVABLES AND DEPOSITS
OTHER RECEIVABLES AND DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER RECEIVABLES AND DEPOSITS | |
Schedule of other receivables and deposit | December 31, December 31, 2022 2021 Advances to staff $ 327,262 $ 37,383 Rental deposits 735,860 803,515 Prepaid expense 28,153 21,332 Prepaid tax 7,783,185 12,610,075 Other receivables 1,859,000 1,769,259 $ 10,733,460 $ 15,241,563 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | December 31, December 31, 2022 2021 Furniture and fixtures $ 223,960 $ 233,678 Computer and office equipment 135,163 368,165 Motor vehicles 747,185 737,987 Properties 2,172,338 2,372,989 3,278,646 3,712,820 Less: Accumulated depreciation 2,277,569 2,474,404 $ 1,001,077 $ 1,238,416 |
INVESTMENT PROPERTIES, NET (Tab
INVESTMENT PROPERTIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT PROPERTIES, NET | |
Schedule of investment properties, net | December 31, December 31, 2022 2021 Investment properties $ 33,367,887 $ 36,449,956 Less: Accumulated depreciation (10,694,748) (10,109,287) $ 22,673,139 $ 26,340,669 |
AMOUNTS DUE TO DIRECTORS (Table
AMOUNTS DUE TO DIRECTORS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
AMOUNTS DUE TO DIRECTORS | |
Schedule of amounts due to directors | December 31, December 31, 2022 2021 Lin Chi-Jung $ 459,299 $ 50,663 Lin Hsin-Hung 20,811 22,733 $ 480,109 $ 525,396 (a) The balance due to Lin Chi-Jung consists of temporary advances. The balances are unsecured, interest-free and have no fixed term of repayment. (b) The balances due to Lin Hsin-Hung was unsecured, interest-free and have no fixed term of repayment . |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | December 31, December 31, 2022 2021 Accrued staff commission and bonus $ 185,124 $ 272,025 Rental deposits received 164,566 110,171 Bid bond 90,457 103,518 Other payables 6,954,170 8,122,375 Dividends payable to non-controlling interest 193,198 211,043 $ 7,587,515 $ 8,819,132 |
INCOME TAXES PAYABLE (Tables)
INCOME TAXES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES PAYABLE | |
Schedule of income tax rate reduction | Year Ended December 31, 2022 2021 Income /(loss) before income tax expense Income /(loss) from China operations $ 7,783,154 $ 14,146,527 Income /(loss) from non-China operations 27,726,545 7,019,495 Total income /(loss) before income tax expense 35,509,699 21,166,021 Income tax expense applicable to China operations Current tax 2,599,250 1,389,328 Deferred tax — — Subtotal income tax expense applicable to China operations 2,599,250 1,389,328 Non-China income tax expense/(benefit) 2,970,576 751,138 Total income tax expense $ 5,569,826 $ 2,140,466 |
Schedule of Effective Tax Rate | 2022 2021 PRC Statutory rate 25 % 25 % Effect of the U.S. Transition Tax under the 2017 TCJA 0 % — % Effect of income not taxable for PRC tax purposes 33.4 % 9.8 % Under (Over)-provision for income taxes in prior years 0.0 % — % Effective income tax rate 15.69 % 10.1 % |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2022 2021 Deferred tax assets: Net operating loss from operations $ — $ — Total deferred tax assets — — Less: Valuation allowance — — Net deferred tax assets $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of operating lease obligations maturity | Amount Year Ending Within one year $ 122,999 Two to five years — $ 122,999 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT INFORMATION | |
Schedule of the company's operating segments | Year Ended December 31, 2022 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 668,452 $ 79,351,737 $ — $ — $ 80,020,189 Cost of revenues (954,553) (69,609,249) — — (70,563,802) Gross profit (286,101) 9,742,488 — — 945,637 Operating expenses (1,901,469) (1,127,619) — — (3,029,088) General and administrative expenses (1,200,913) (6,644,703) — (704,945) (8,550,561) Operating loss (3,388,483) 1,970,166 — (704,945) (2,123,262) Other income (expenses) Interest income 30,275 598,140 — 62,681 691,096 Interest expense 438,705 (438,705) — (651,085) (651,085) Other income, Net (2,807,313) (55,064) 192,241 (100,000) (2,770,136) Total other (expenses) income (2,338,333) 104,371 192,241 (688,404) (2,730,125) Income (loss) before income taxes (5,726,816) 2,074,537 192,241 (1,393,349) (4,853,387) Income tax (1,571,933) — — (2,970,576) (4,542,509) Net Income (loss) $ (7,298,749) $ 2,074,537 $ 192,241 $ (4,363,925) $ (9,395,896) Year Ended December 31, 2021 Property Brokerage Real Estate Investment Services Development Transaction Others Total Net revenues $ 814,142 $ 53,326,267 $ — $ — $ 54,140,409 Cost of revenues (1,102,304) (40,130,753) — — (41,233,057) Gross profit (288,162) 13,195,514 — — 12,907,352 Operating expenses (148,989) (3,268,873) — — (3,417,862) General and administrative expenses (1,066,130) (1,524,915) — (708,274) (3,299,319) Operating loss (1,503,281) 8,401,726 — (708,274) 6,190,171 Other income (expenses) Interest income (11,199) 942,807 — 4,500 936,108 Interest expense — — — — — Other income, Net 25,917,799 2,175,486 36,220,836 (23,015,878) 41,298,243 Total other (expenses) income 25,906,600 3,118,293 36,220,836 (23,011,378) 42,234,351 Income (loss) before income taxes 24,403,320 11,520,019 36,220,836 (23,719,652) 48,424,522 Income tax (127,027) (1,262,301) — (751,138) (2,140,466) Net Income (loss) $ 24,276,293 $ 10,257,718 $ 36,220,836 $ (24,470,790) $ 46,284,056 Property Brokerage Real Estate Investment* Services Development Transaction Others Total As of December 31, 2022 Real estate property under development $ — $ 120,302,022 $ — $ — $ 120,302,022 Total assets (16,964,879) 144,727,138 24,364,265 88,038,312 274,094,594 As of December 31, 2021 Real estate property under development $ — $ 178,685,026 $ — $ — $ 178,685,026 Total assets 26,587,257 239,423,176 28,924,870 72,019,580 366,954,883 |
ORGANIZATION AND DESCRIPTION _3
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Wuhan Yuan Yu Long Real Estate Development Company Limited ("WHYYL") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Equity investment, Date of Incorporation | Dec. 28, 2009 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 49% |
Equity investment, Principal Activity | Real estate development |
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited ("SHXXY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Equity investment, Date of Incorporation | Sep. 28, 2011 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 20% |
Equity investment, Principal Activity | Property brokerage services |
Shanghai Da Er Wei Trading Company Limited ("SHDEW") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Equity investment, Date of Incorporation | Jun. 06, 2013 |
Equity investment, Place of Incorporation | PRC |
Equity investment, % of Ownership held by the Company | 19.91% |
Equity investment, Principal Activity | Import and export trading |
Sunrise Real Estate Development Group, Inc. (CY-SRRE) | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Apr. 30, 2004 |
Subsidiaries, Place of Incorporation | Cayman Islands |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Investment holding |
Lin Ray Yang Enterprise Limited ("LRY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Nov. 13, 2003 |
Subsidiaries, Place of Incorporation | British Virgin Islands |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Investment holding |
Shanghai Xin Ji Yang Real Estate Consultation Company Limited ("SHXJY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Aug. 20, 2001 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Property brokerage services |
Shanghai Shang Yang Investment Management and consultation Company Limited ("SHSY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Feb. 05, 2004 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Property brokerage services |
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Nov. 24, 2006 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 75.25% |
Subsidiaries, Principal Activity | Property brokerage and management services |
Suzhou Xi Ji Yang Real Estate Consultation Company Limited ("SZXJY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Jun. 25, 2004 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 75% |
Subsidiaries, Principal Activity | Property brokerage services |
Linyi Shangyang Real Estate Development Company Limited ("LYSY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Oct. 13, 2011 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 34% |
Subsidiaries, Principal Activity | Real estate development |
Sanya Shang Yang Real Estate Consultation Company Limited ("SYSY") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Sep. 18, 2008 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Property brokerage services |
Shanghai Rui Jian Design Company Limited ("SHRJ") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Aug. 15, 2011 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Property brokerage services |
Linyi Rui Lin Construction and Design Company Limited ("LYRL") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Mar. 06, 2012 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Investment holding |
Shanghai Hui Tian ("SHHT") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Jul. 25, 2014 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 100% |
Subsidiaries, Principal Activity | Investment holding |
Shanghai Shangyang Tianxi | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Jul. 25, 2014 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 19.91% |
Subsidiaries, Principal Activity | Investment holding |
Huaian Zhanbao Industrial Co., Ltd. ("HAZB") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Dec. 06, 2018 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 78.46% |
Subsidiaries, Principal Activity | Investment holding |
Huaian Tianxi Real Estate Development Co., Ltd ("HATX") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Oct. 01, 2018 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 78.46% |
Subsidiaries, Principal Activity | Investment holding |
Shanghai Taobuting MediaCo., Ltd. ("TBT") | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Subsidiaries, Date of Incorporation | Jul. 01, 2020 |
Subsidiaries, Place of Incorporation | PRC |
Subsidiaries, % of Ownership held by the Company | 7.50% |
Subsidiaries, Principal Activity | Streaming platform |
ORGANIZATION AND DESCRIPTION _4
ORGANIZATION AND DESCRIPTION OF BUSINESS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Mar. 20, 2023 item | Mar. 15, 2023 item | May 27, 2020 | Mar. 06, 2012 | Oct. 13, 2011 | May 08, 2006 | Aug. 09, 2005 | Oct. 05, 2004 shares | Aug. 31, 2004 shares | Dec. 31, 2022 m² item | Dec. 31, 2019 m² item | Dec. 31, 2017 | Dec. 31, 2020 | Nov. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 m² | Jun. 06, 2013 | Jan. 28, 2013 | Oct. 31, 2011 | Sep. 24, 2007 | Nov. 24, 2006 | Jan. 10, 2005 | Jun. 25, 2004 | |
Shareholder Of Szsy | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 12.50% | 12.50% | ||||||||||||||||||||||
Shareholder LYSY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 46% | |||||||||||||||||||||||
Shareholder of SZXJY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 90% | |||||||||||||||||||||||
Shareholder SZXJY Member | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 80% | 75% | ||||||||||||||||||||||
SZGFH | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 20% | 80% | ||||||||||||||||||||||
Shareholder SHXJY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 26% | |||||||||||||||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
percentage of equity interest in subsidiary transferred to other shareholder | 76.92% | |||||||||||||||||||||||
SZSY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 51% | |||||||||||||||||||||||
Linyi project | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 24% | |||||||||||||||||||||||
Shareholder Of Szsy | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of equity interest in subsidiary sold to related party | 49% | |||||||||||||||||||||||
Percentage of equity interest in subsidiary transferred to parent | 26% | |||||||||||||||||||||||
Equity interest | 75.25% | |||||||||||||||||||||||
Shareholder Of Lysy | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of equity interest in subsidiary sold to related party | 46% | |||||||||||||||||||||||
Percentage of equity interest in subsidiary transferred to parent | 80% | 80% | ||||||||||||||||||||||
Shanghai Daerwei Trading Company Limited | Shareholder LYSY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 7.30% | |||||||||||||||||||||||
Shanghai Daerwei Trading Company Limited | SHSY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 12.60% | |||||||||||||||||||||||
Subsequent event | Phase 1 villas | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 679 | |||||||||||||||||||||||
Number of units sold | 343 | |||||||||||||||||||||||
Number of units pre sold | 327 | |||||||||||||||||||||||
Subsequent event | Phase 2 north | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 873 | |||||||||||||||||||||||
Number of units pre sold | 364 | |||||||||||||||||||||||
SHDEW | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of ownership held by the company | 19.91% | 20.38% | ||||||||||||||||||||||
Shareholder of SZXJY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 60% | |||||||||||||||||||||||
Shareholder of SZXJY | Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Ownership interest acquired | 12.50% | |||||||||||||||||||||||
Shareholder of CY SRRE | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 15% | |||||||||||||||||||||||
Linyi Rui Lin Construction and Design Company Limited ("LYRL") | Nanjing Longchang Real Estate Development Group | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 34% | |||||||||||||||||||||||
Percentage of issued and outstanding shares received | 10% | |||||||||||||||||||||||
HATX | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 100% | |||||||||||||||||||||||
HAZB | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 78.46% | |||||||||||||||||||||||
HAZB | Phase 1 villas | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 679 | |||||||||||||||||||||||
Area of real estate property | m² | 82,218 | |||||||||||||||||||||||
HAZB | Subsequent event | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 266 | |||||||||||||||||||||||
HAZB | Subsequent event | Phase 1 villas | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 679 | |||||||||||||||||||||||
Number of units pre sold | 669 | |||||||||||||||||||||||
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY") | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Owners non controlling interest, ownership percentage | 19.90% | |||||||||||||||||||||||
SZXJY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of equity interest in subsidiary sold to related party | 10% | |||||||||||||||||||||||
Percentage of equity interest in subsidiary transferred to parent | 5% | |||||||||||||||||||||||
Percentage of equity interest sold | 5% | |||||||||||||||||||||||
SHXJY | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of equity interest in subsidiary transferred to parent | 24% | |||||||||||||||||||||||
HAZB | Phase 1 villas | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 679 | |||||||||||||||||||||||
Area of real estate property | m² | 82,218 | |||||||||||||||||||||||
HAZB | Phase 2 north | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Number of units | 873 | |||||||||||||||||||||||
Area of real estate property | m² | 99,123 | |||||||||||||||||||||||
HATX | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Area of real estate property | m² | 78,030 | |||||||||||||||||||||||
SRRE | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Common stock issued to the beneficial shareholder | shares | 5,000,000 | |||||||||||||||||||||||
Ace Develop Properties Limited | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Common stock issued to the beneficial shareholder | shares | 8,500,000 | |||||||||||||||||||||||
System Tech | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Common stock issued to the beneficial shareholder | shares | 750,000 | |||||||||||||||||||||||
Planet Tech | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Common stock issued to the beneficial shareholder | shares | 750,000 | 10,000,000 | ||||||||||||||||||||||
SZGFH | ||||||||||||||||||||||||
ORGANIZATION AND DESCRIPTION OF BUSINESS | ||||||||||||||||||||||||
Percentage of voting rights acquired during the period | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | Dec. 31, 2022 CNY (¥) customer | Dec. 31, 2021 CNY (¥) customer | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Number of customer | customer | 0 | 0 | 0 | 0 |
Concentration risk threshold percentage | 10% | 10% | ||
Foreign currency exchange rate translation | $ 1 | $ 1 | ¥ 6.9646 | ¥ 6.3757 |
Real estate investment property estimated useful lives | 20 years | |||
Impairment of long-lived assets | $ 0 | 0 | ||
Significant influence ownership interest (as of percentage) | 20% | |||
Impairment loss of investments in unconsolidated affiliates | $ 0 | 0 | ||
Impairment loss on other investments | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Total | $ 10,960,511 | $ 13,890,946 |
Recurring | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Total | 10,960,511 | 13,890,946 |
Recurring | Wealth management investment products | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Total | 6,164,649 | 9,287,424 |
Level 1 | Recurring | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Total | 10,960,511 | 13,890,946 |
Level 1 | Recurring | Wealth management investment products | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Total | $ 6,164,649 | $ 9,287,424 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Furniture and fixtures | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 5 years |
Furniture and fixtures | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 10 years |
Computer and office equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 3 years |
Computer and office equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 5 years |
Motor vehicles | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 5 years |
Properties | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Estimated Useful Life (in years) | 20 years |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
RESTRICTED CASH | ||
Restricted cash deposits | $ 43,869,156 | $ 73,010,575 |
TRANSACTIONAL FINANCIAL ASSETS
TRANSACTIONAL FINANCIAL ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Transactional Financial Assets | ||
Transactional financial assets | $ 10,960,511 | $ 13,890,946 |
Bank wealth management investment products | ||
Transactional Financial Assets | ||
Transactional financial assets | $ 10,960,511 | |
Minimum | Bank wealth management investment products | ||
Transactional Financial Assets | ||
Investment holdings, annualized rate of return | 2.08% | |
Maximum | Bank wealth management investment products | ||
Transactional Financial Assets | ||
Investment holdings, annualized rate of return | 2.70% |
REAL ESTATE PROPERTY UNDER DE_2
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details) | 12 Months Ended | ||||||||
Mar. 20, 2023 item | Mar. 15, 2023 item | Dec. 31, 2020 m² item | Dec. 31, 2019 m² item | Dec. 31, 2022 USD ($) m² | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 m² | Oct. 31, 2011 m² | |
HAZB | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units | 266 | ||||||||
Phase 1 villas | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of villas sold | 119 | ||||||||
Total number of villas | 121 | ||||||||
Number of units pre sold | 327 | ||||||||
Number of units | 679 | ||||||||
Phase 1 villas | HAZB | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units | 679 | ||||||||
Area of real estate property | m² | 82,218 | ||||||||
Phase 1 villas | HAZB | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units pre sold | 669 | ||||||||
Number of units | 679 | ||||||||
Phase 2 | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of villas sold | 84 | ||||||||
Phase 2 | HAZB | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units | 873 | ||||||||
Area of real estate property | m² | 99,123 | ||||||||
Phase 2 | HAZB | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units pre sold | 177 | ||||||||
Number of units | 873 | ||||||||
Phase 3 | Subsequent event | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Number of units pre sold | 23 | ||||||||
Number of units | 51 | ||||||||
Huai'an Project | HAZB | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Noncontrolling interest, ownership percentage by parent | 78.46% | ||||||||
Huai'an Project | HATX | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Area of real estate property | m² | 78,030 | ||||||||
Noncontrolling interest, ownership percentage by parent | 100% | ||||||||
Linyi project | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Site area | m² | 103,385 | 103,385 | |||||||
Land use rights | |||||||||
REAL ESTATE PROPERTY UNDER DEVELOPMENT | |||||||||
Real estate property under development totaled | $ | $ 120,302,022 |
OTHER RECEIVABLES AND DEPOSIT_2
OTHER RECEIVABLES AND DEPOSITS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER RECEIVABLES AND DEPOSITS | ||
Advances to staff | $ 327,262 | $ 37,383 |
Rental deposits | 735,860 | 803,515 |
Prepaid expense | 28,153 | 21,332 |
Prepaid tax | 7,783,185 | 12,610,075 |
Other receivables | 1,859,000 | 1,769,259 |
Other receivables and deposit, net | $ 10,733,460 | $ 15,241,563 |
OTHER RECEIVABLES AND DEPOSIT_3
OTHER RECEIVABLES AND DEPOSITS - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER RECEIVABLES AND DEPOSITS | ||
Prepaid tax | $ 7,783,185 | $ 12,610,075 |
Allowance for doubtful other receivables and deposits | 1,233,179 | 515,604 |
Other receivables | 1,859,000 | $ 1,769,259 |
Shanghai Wu Zhao Hao | ||
OTHER RECEIVABLES AND DEPOSITS | ||
Other receivables | 799,759 | |
Panjian | ||
OTHER RECEIVABLES AND DEPOSITS | ||
Other receivables | 717,916 | |
HATX project | ||
OTHER RECEIVABLES AND DEPOSITS | ||
Prepaid tax | 6,043,994 | |
Linyi project | ||
OTHER RECEIVABLES AND DEPOSITS | ||
Prepaid tax | $ 1,739,191 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | $ 3,278,646 | $ 3,712,820 |
Less: Accumulated depreciation | (2,277,569) | (2,474,404) |
Property and equipment, net | 1,001,077 | 1,238,416 |
Furniture and fixtures | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 223,960 | 233,678 |
Computer and office equipment | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 135,163 | 368,165 |
Motor vehicles | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | 747,185 | 737,987 |
Properties | ||
PROPERTY AND EQUIPMENT, NET | ||
Property and equipment, gross | $ 2,172,338 | $ 2,372,989 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | ||
Depreciation and amortization expense | $ 1,779,670 | $ 4,281,324 |
Property and Equipment | ||
PROPERTY AND EQUIPMENT, NET | ||
Depreciation and amortization expense | $ 196,835 |
INVESTMENT PROPERTIES, NET (Det
INVESTMENT PROPERTIES, NET (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
INVESTMENT PROPERTIES, NET | ||
Investment properties | $ 33,367,887 | $ 36,449,956 |
Less: Accumulated depreciation | (10,694,748) | (10,109,287) |
Investment properties, net | $ 22,673,139 | $ 26,340,669 |
INVESTMENT PROPERTIES, NET - Ad
INVESTMENT PROPERTIES, NET - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
INVESTMENT PROPERTIES, NET | |
Depreciation and amortization expense for investment properties | $ 1,489,873 |
INVESTMENTS IN AND AMOUNT DUE_2
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | ||
Investments in unconsolidated affiliates | $ 12,751,061 | $ 14,320,943 |
SHTX | ||
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | ||
Noncontrolling interest, ownership percentage by parent | 19.90% | |
Investments in unconsolidated affiliates | $ 28,717 | |
SHDEW | ||
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | ||
Noncontrolling interest, ownership percentage by parent | 19.91% | |
SHDEW | ||
INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES | ||
Investments in unconsolidated affiliates | $ 12,722,344 |
OTHER INVESTMENTS, NET (Details
OTHER INVESTMENTS, NET (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER INVESTMENTS, NET | ||
Other investments | $ 652,693 | $ 712,981 |
Impairment charges on other investments | 0 | 0 |
ASU 2016-01 | ||
OTHER INVESTMENTS, NET | ||
Other investments | $ 652,693 | $ 712,981 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands | Apr. 04, 2020 USD ($) | Apr. 04, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
GOODWILL | ||||
Goodwill | $ 1,243,194 | $ 1,855,655 | ||
Nanjing Longchang | ||||
GOODWILL | ||||
Business combination, step acquisition, equity interest in acquiree, percentage | 10% | |||
Business combination, consideration transferred, other | $ 3,398,213 | ¥ 22,170 | ||
Goodwill | $ 1,243,194 |
PROMISSORY NOTES PAYABLE (Detai
PROMISSORY NOTES PAYABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROMISSORY NOTES PAYABLE | ||
Interest expenses related to promissory notes | $ 0 | $ 0 |
Unsecured Notes Payable One | ||
PROMISSORY NOTES PAYABLE | ||
Outstanding principal and unpaid interest | 1,435,833 | 1,568,455 |
Unsecured Notes Payable Two | ||
PROMISSORY NOTES PAYABLE | ||
Outstanding principal and unpaid interest | 717,916 | $ 784,228 |
Principal amount | $ 717,916 | |
Interest rate | 0% |
AMOUNTS DUE TO DIRECTORS (Detai
AMOUNTS DUE TO DIRECTORS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | $ 480,109 | $ 525,396 |
Lin Chi-Jung | ||
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | 459,299 | 50,663 |
Lin Hsin-Hung | ||
AMOUNTS DUE TO DIRECTORS | ||
Amounts due to directors | $ 20,811 | $ 22,733 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ACCOUNTS PAYABLE | ||
Accounts payable | $ 22,372,938 | $ 25,120,074 |
Linyi project | ||
ACCOUNTS PAYABLE | ||
Unpaid project development fees | 2,086,369 | |
HATX project | ||
ACCOUNTS PAYABLE | ||
Unpaid project development fees | $ 19,153,427 |
CUSTOMER DEPOSITS (Details)
CUSTOMER DEPOSITS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CUSTOMER DEPOSITS | ||
Customer deposits | $ 34,742,361 | $ 126,175,201 |
Linyi project | ||
CUSTOMER DEPOSITS | ||
Customer deposits | 6,067,204 | |
HATX project | ||
CUSTOMER DEPOSITS | ||
Customer deposits | $ 30,015,726 |
AMOUNT DUE TO AFFILIATES (Detai
AMOUNT DUE TO AFFILIATES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
AMOUNT DUE TO AFFILIATES | ||
Advance from related party | $ 49,251,273 | $ 20,489,304 |
HATX | ||
AMOUNT DUE TO AFFILIATES | ||
Advance from related party | 48,742,263 | |
JXSY | ||
AMOUNT DUE TO AFFILIATES | ||
Advance from related party | $ 509,010 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Accrued staff commission and bonus | $ 185,124 | $ 272,025 |
Rental deposits received | 164,566 | 110,171 |
Bid bond | 90,457 | 103,518 |
Other payables | 6,954,170 | 8,122,375 |
Dividends payable to non-controlling interest | 193,198 | 211,043 |
Other payables and accrued expenses | $ 7,587,515 | $ 8,819,132 |
OTHER PAYABLES AND ACCRUED EX_4
OTHER PAYABLES AND ACCRUED EXPENSES - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Advance from related party | $ 49,251,273 | $ 20,489,304 |
SHSJ | ||
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Advance from related party | $ 6,760,876 |
INCOME TAXES PAYABLE (Details)
INCOME TAXES PAYABLE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income /(loss) before income tax expense | |||
Income /(loss) before income tax expense | $ (4,853,387) | $ 48,424,522 | |
Income tax expense applicable to China operations | |||
Current tax | 35,509,699 | 21,166,021 | |
Income tax expense | $ 0 | 5,569,826 | 2,140,466 |
CHINA | |||
Income tax expense applicable to China operations | |||
Income tax expense | 27,726,545 | ||
PRC corporate | |||
Income /(loss) before income tax expense | |||
Income /(loss) before income tax expense | 7,783,154 | 14,146,527 | |
Income tax expense applicable to China operations | |||
Current tax | 2,599,250 | 1,389,328 | |
Deferred tax | 0 | 0 | |
Income tax expense | 2,599,250 | 1,389,328 | |
Non-China Operations | |||
Income /(loss) before income tax expense | |||
Income /(loss) before income tax expense | 27,726,545 | 7,019,495 | |
Income tax expense applicable to China operations | |||
Income tax expense | $ 2,970,576 | $ 751,138 |
INCOME TAXES PAYABLE - Effectiv
INCOME TAXES PAYABLE - Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES PAYABLE | ||
PRC Statutory rate | 25% | 25% |
Effect of the U.S. Transition Tax under the 2017 TCJA | 0% | |
Effect of income not taxable for PRC tax purposes | 33.40% | 9.80% |
Under (Over)-provision for income taxes in prior years | 0% | |
Effective income tax rate | 15.69% | 10.10% |
INCOME TAXES PAYABLE - Deferred
INCOME TAXES PAYABLE - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss from operations | $ 0 | $ 0 |
Total deferred tax assets | 0 | 0 |
Less: Valuation allowance | 0 | 0 |
Net deferred tax assets | $ 0 | $ 0 |
INCOME TAXES PAYABLE - Addition
INCOME TAXES PAYABLE - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
INCOME TAXES PAYABLE | ||
Operating Loss Carryforwards, Valuation Allowance | $ 0 | $ 0 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STATUTORY RESERVE | ||
Statutory reserve | $ 3,986,618 | $ 3,986,618 |
PRC corporate | ||
STATUTORY RESERVE | ||
Minimum percentage of profits after tax to be transferred to statutory reserve | 10% | |
Percentage on registered capital of statutory reserve maintenance | 50% | |
PRC subsidiary | ||
STATUTORY RESERVE | ||
Minimum percentage of profits after tax to be transferred to statutory reserve | 10% | |
Percentage on registered capital of statutory reserve maintenance | 50% | |
Statutory reserve | $ 3,986,618 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | ||
Rental expenses under operating leases | $ 178,251 | $ 194,372 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2022 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
Within one year | $ 122,999 |
Two to five years | 0 |
Operating lease obligations | $ 122,999 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEGMENT INFORMATION | ||
Net revenues | $ 80,020,189 | $ 54,140,409 |
Cost of revenues | (70,563,802) | (41,233,057) |
Gross profit | 9,456,387 | 12,907,352 |
Operating expenses | (3,029,088) | (3,417,862) |
General and administrative expenses | (8,550,561) | (3,299,319) |
Operating loss | (2,123,262) | 6,190,171 |
Other income (expenses) | ||
Interest income | 691,096 | 936,108 |
Interest expense | (651,085) | 0 |
Other income, Net | (2,770,136) | 41,298,243 |
Total other (expenses) income | (2,730,125) | 42,234,351 |
Income (Loss) before income taxes | (4,853,387) | 48,424,522 |
Income taxes | (4,542,509) | (2,140,466) |
Net income (loss) | (9,395,896) | 46,284,056 |
Total assets | 274,094,594 | 366,954,883 |
Operating Segments | ||
SEGMENT INFORMATION | ||
Net revenues | 80,020,189 | 54,140,409 |
Cost of revenues | (70,563,802) | (41,233,057) |
Gross profit | 945,637 | 12,907,352 |
Operating expenses | (3,029,088) | (3,417,862) |
General and administrative expenses | (8,550,561) | (3,299,319) |
Operating loss | (2,123,262) | 6,190,171 |
Other income (expenses) | ||
Interest income | 691,096 | 936,108 |
Interest expense | (651,085) | 0 |
Other income, Net | (2,770,136) | 41,298,243 |
Total other (expenses) income | (2,730,125) | 42,234,351 |
Income (Loss) before income taxes | (4,853,387) | 48,424,522 |
Income taxes | (4,542,509) | (2,140,466) |
Net income (loss) | (9,395,896) | 46,284,056 |
Real estate property under development | 120,302,022 | 178,685,026 |
Total assets | 274,094,594 | 366,954,883 |
Property Brokerage Services | Operating Segments | ||
SEGMENT INFORMATION | ||
Net revenues | 668,452 | 814,142 |
Cost of revenues | (954,553) | (1,102,304) |
Gross profit | (286,101) | (288,162) |
Operating expenses | (1,901,469) | (148,989) |
General and administrative expenses | (1,200,913) | (1,066,130) |
Operating loss | (3,388,483) | (1,503,281) |
Other income (expenses) | ||
Interest income | 30,275 | (11,199) |
Interest expense | 438,705 | 0 |
Other income, Net | (2,807,313) | 25,917,799 |
Total other (expenses) income | (2,338,333) | 25,906,600 |
Income (Loss) before income taxes | (5,726,816) | 24,403,320 |
Income taxes | (1,571,933) | (127,027) |
Net income (loss) | (7,298,749) | 24,276,293 |
Real estate property under development | 0 | 0 |
Total assets | (16,964,879) | 26,587,257 |
Real Estate Development | Operating Segments | ||
SEGMENT INFORMATION | ||
Net revenues | 79,351,737 | 53,326,267 |
Cost of revenues | (69,609,249) | (40,130,753) |
Gross profit | 9,742,488 | 13,195,514 |
Operating expenses | (1,127,619) | (3,268,873) |
General and administrative expenses | (6,644,703) | (1,524,915) |
Operating loss | 1,970,166 | 8,401,726 |
Other income (expenses) | ||
Interest income | 598,140 | 942,807 |
Interest expense | (438,705) | 0 |
Other income, Net | (55,064) | 2,175,486 |
Total other (expenses) income | 104,371 | 3,118,293 |
Income (Loss) before income taxes | 2,074,537 | 11,520,019 |
Income taxes | 0 | (1,262,301) |
Net income (loss) | 2,074,537 | 10,257,718 |
Real estate property under development | 120,302,022 | 178,685,026 |
Total assets | 144,727,138 | 239,423,176 |
Investment Transaction | Operating Segments | ||
SEGMENT INFORMATION | ||
Net revenues | 0 | 0 |
Cost of revenues | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | 0 | 0 |
Operating loss | 0 | 0 |
Other income (expenses) | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Other income, Net | 192,241 | 36,220,836 |
Total other (expenses) income | 192,241 | 36,220,836 |
Income (Loss) before income taxes | 192,241 | 36,220,836 |
Income taxes | 0 | 0 |
Net income (loss) | 192,241 | 36,220,836 |
Real estate property under development | 0 | 0 |
Total assets | 24,364,265 | 28,924,870 |
Others | Operating Segments | ||
SEGMENT INFORMATION | ||
Net revenues | 0 | 0 |
Cost of revenues | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | (704,945) | (708,274) |
Operating loss | (704,945) | (708,274) |
Other income (expenses) | ||
Interest income | 62,681 | 4,500 |
Interest expense | (651,085) | 0 |
Other income, Net | (100,000) | (23,015,878) |
Total other (expenses) income | (688,404) | (23,011,378) |
Income (Loss) before income taxes | (1,393,349) | (23,719,652) |
Income taxes | (2,970,576) | (751,138) |
Net income (loss) | (4,363,925) | (24,470,790) |
Real estate property under development | 0 | 0 |
Total assets | $ 88,038,312 | $ 72,019,580 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Mrs. Zhang Shuqing | Rent expense | |
RELATED PARTY TRANSACTIONS | |
Related party transaction, amounts of transaction | $ 86,150 |
SHSJ | |
RELATED PARTY TRANSACTIONS | |
Related party transaction, amounts of transaction | $ 28,716,652 |
SHDEW | |
RELATED PARTY TRANSACTIONS | |
Period of rent agreement | 1 year |
SHDEW | Rent expense | |
RELATED PARTY TRANSACTIONS | |
Related party transaction, amounts of transaction | $ 3,709 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event - USD ($) | 1 Months Ended | |
Mar. 31, 2023 | Jan. 16, 2023 | |
SUBSEQUENT EVENTS | ||
Cash dividend payable per share | $ 0.15 | |
Singapore company | ||
SUBSEQUENT EVENTS | ||
Ownership interest acquired | 100% | |
Purchase consideration | $ 0 |