WEB NEWS Regular Dividend News
SHANGHAI, Nov. 5, 2018 /PRNewswire / -- Sunrise Real Estate Group Inc. (OTCQB: SRRE) ("the Company") announced on Friday, November 2 that it appointed Mr. Lin Hsin Hung to be the Chairman of the Board of Directors of the Company to replace Mr. Lin Chi Jung, who had resigned as Chairman of the Board of Directors. Mr. Lin Chi Jung shall remain as a Director of the Company.
The Company also announced that its Board of Directors declared a cash dividend of $0.10 per share payable January 28, 2019 to shareholders of record as of December 28, 2018. The ex-dividend date will be December 26, 2018.
Investor Alert
Item 8.01 Other Events.
The Company’s Form 10-K for the fiscal year ended December 31, 2014 is delayed. The Company’s prior accounting firm, Finesse CPA, P.C. has ceased operation, is no longer registered with the PCAOB and is no longer able to provide its consent to the use of its audit report for 2013, which must accompany the Form 10K for the fiscal year ended December 31, 2014. Therefore, the Company is required by the Securities and Exchange Act of 1934 to conduct a new audit of its financial statements for 2013, even though there would otherwise be no requirement to do so and there are no outstanding comments to the financial statements for 2013 included in the Form 10-K for the fiscal year ended December 31, 2013 from the Securities and Exchange Commission. Such new audit is currently in process.
Comments & Business Outlook
SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in U.S. Dollars)
Three Months Ended June 30,
Six Months Ended 30 June,
2014
2013
2014
2013
Net revenues
$
1,481,098
$
4,487,385
$
4,202,251
$
6,600,814
Cost of revenues
(929,877
)
(1,216,265
)
(2,251,795
)
(2,380,204
)
Gross income
551,221
3,271,120
1,950,456
4,220,610
Operating expenses
(313,745
)
(372,891
)
(944,818
)
(685,815
)
General and administrative expenses
(839,885
)
(771,099
)
(1,673,524
)
(1,822,858
)
Operating income (loss)
(602,409
)
2,127,130
(667,887
)
1,711,937
Other income (expenses)
Interest income
100,686
221,270
200,954
379,218
Interest expense
(835,184
)
(957,045
)
(1,665,943
)
(1,872,192
)
Other income (loss), net
224
932
(12,702
)
16,243
Total other expenses
(734,275
)
(734,843
)
(1,477,691
)
(1,476,731
)
Income (Loss) before income taxes
(1,336,683
)
1,392,287
(2,145,578
)
235,206
Income tax benefit (expense)
88,536
(35,419
)
293,263
(19,638
)
Equity in net loss of unconsolidated affiliates, net of income taxes
(117,071
)
(79,765
)
(229,450
)
(272,787
)
Net loss
(1,365,219
)
1,277,103
(2,081,766
)
(57,219
)
Less: Net income (loss) attributable to non-controlling interests
200,125
(54,716
)
534,544
75,353
Net income (loss) attributable to shareholders of Sunrise Real Estate Group, Inc.
$
(1,165,094
)
$
1,222,387
$
(1,547,221
)
$
18,134
Loss per share – basic and fully diluted
$
(0.04
)
$
(0.04
)
$
(0.06
)
(0.00
)
Weighted average common shares outstanding
- Basic and fully diluted
28,691,925
28,691,925
28,691,925
28,691,925
Comments & Business Outlook
SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in U.S. Dollars)
Three Months Ended September 30, Nine Months Ended September 30,
2014 2013 2014 2013
Net revenues $ 2,568,886 $ 2,673,046 $ 6,771,137 $ 9,273,860
Cost of revenues (862,626 ) (1,264,443 ) (3,114,421 ) (3,644,647 )
Gross income 1,706,261 1,408,603 3,656,717 5,629,213
Operating expenses (575,617 ) (451,132 ) (1,520,435 ) (1,136,947 )
General and administrative expenses (797,976 ) (870,165 ) (2,471,501 ) (2,693,023 )
Operating income (loss) 332,667 87,306 (335,219 ) 1,799,243
Other income (expenses)
Interest income 70,490 196,741 271,445 575,959
Interest expense, net of amount (989,540 ) (1,146,811 ) (2,655,483 ) (3,019,003 )
Other income, net 14,844 2,238 2,141 18,481
Total other expenses (904,206 ) (947,832 ) (2,381,897 ) (2,424,563 )
Loss before income taxes and equity in net losses of unconsolidated affiliates (571,538 ) (860,526 ) (2,717,116 ) (625,320 )
Income tax expense (benefit) 25,749 78,987 319,012 59,349
Equity in losses of unconsolidated affiliates, net of income taxes (110,241 ) (184,889 ) (339,691 ) (457,676 )
Net loss (656,030 ) (966,428 ) (2,737,796 ) (1,023,647 )
Less: Net loss attributable to non-controlling interests 79,296 70,038 613,840 145,391
Net loss attributable to Shareholders of Sunrise Real Estate Group, Inc. $ (576,734 ) $ (896,390 ) $ (2,123,956 ) $ (878,256 )
Loss per share – basic and fully diluted $ (0.04 ) $ (0.03 ) $ (0.07 ) $ (0.03 )
Weighted average common shares Outstanding
- Basic and fully diluted 31,329,288 28,691,925 31,329,288 28,691,925
Comments & Business Outlook
Item 1.01 Entry into a Material Definitive Agreement.
SHSY is a wholly-owned subsidiary of the Registrant. Daerwei is owned 58% by an entity that is majority-owned by the wife of the Chief Executive Officer of the Registrant, 19% by SHSY and 11% by LinyiRui Lin Construction and Design Company Limited, which is also a wholly-owned subsidiary of the Registrant.
The purchase price for the Office Space was RMB 51,820,480 (approximately USD $7,978,273.19 using the 12/31/2015 exchange rate of RMB 6.4951 per USD $1). This Office Space was initially purchased for RMB 42,476,600 (approximately USD $6,539,791.53 using the 12/31/2015 exchange rate of RMB 6.4951 per USD $1). Prior to the sale, SHSY obtained an independent appraisal which concluded that thevalue of the Office Space less than the ultimate sale price. On February 16, 2016, Daerwei and SHSY entered into a supplementary agreement to the Asset Purchase Agreement, pursuant to which Daerwei agreed to pay SHSY RMB 8,096,950 (approximately USD $1,236,037.82) as a reimbursement for fixtures previously installed in the Office Space.
Auditor trail
Item 4.01. Changes in Registrant's Certifying Accountant.
None of the reports of Finesse on the Registrant’s financial statements for either of the past two fiscal years contained an adverse opinion or disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope or accounting principles, except that the reports did contain a going concern paragraph. During the Registrant’s past two fiscal years and through March 13, 2015 there have been no disagreements or reportable events (as defined in Regulation S-K Item 304(a)(1)(v)) with Finesse on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of the former accountant, would have caused it to make reference to the subject matter of the disagreement in connection with its report. .
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
Years Ended December 31,
2013
2012
Net revenues
$
12,763,447
$
8,529,990
Cost of revenues
(4,841,337
)
(4,894,833
)
Gross income
7,922,110
3,635,157
Operating expenses
(2,148,198
)
(1,401,659
)
General and administrative expenses
(3,585,121
)
(3,345,635
)
Operating income (loss)
2,188,791
(1,112,137
)
Other income (expenses)
Interest income
394,201
239,079
Interest expense
(3,763,555
)
(2,420,375
)
Miscellaneous
8,294
39,156
Total other expenses
(3,361,060
)
(2,142,140
)
Loss before income taxes and equity in net loss of
unconsolidated affiliates
(1,172,269
)
(3,254,277
)
Income taxes (Note 15)
63,227
13,518
Equity in loss of unconsolidated affiliates, net of
income taxes
(822,267
)
(230,490
)
Net loss
(1,931,309
)
(3,471,249
)
Less: Net loss attributable to non-controlling
interests
763,015
377,965
Net loss attributable to stockholders of Sunrise Real
Estate Group, Inc.
$
(1,168,294
)
$
(3,093,284
)
Loss per share - basic and fully diluted
$
(0.04
)
$
(0.11
)
Weighted average common shares outstanding
- Basic and fully diluted
28,691,925
28,691,925
Management Discussion and Analysis
The net revenue for 2013 was $12,763,447, an increase of 49.63% from $8,529,990 for 2012. In 2013, agency sales represented 62.34% of the total net revenue, property management represented 17.75%, and underwriting sales represented 19.91%. The increase in 2013 was mainly due to the increases in the revenue from our agency sales and underwriting sales.
Agency Sales
In 2013, 62.34% of our net revenue was derived from agency sales, which was primarily from the business activities of SHXJY, SHSY and their subsidiaries and branches. As compared with 2012, net revenue of agency sales in 2013 increased by 61.45%. This increase is primarily attributable to the receipt of revenues approximately $2,021,705 upon completion of a real estate agency project in the year.
Government policies enacted in 2011 aiming to stabilize real estate prices affected many businesses in the real estate industry. Despite these restrictive policies, we were able to increase our agency sales revenue. We are continually seeking stable growth in our agency sales business in 2014. However, there can be no assurance that we will be able to do so.
Property Management
During the year of 2005 and 2006, SZGFH entered into leasing agreements with certain buyers of the Sovereign Building underwriting project to lease the properties for them. These leasing agreements on these properties are for 62% of the floor space that was sold to third party buyers. In accordance with the leasing agreements, the owners of the properties can have a rental return of 8.5% and 8.8% per annum for a period of 5 years and 8 years, respectively. The leasing period started in the second quarter, 2006, and the Company has the right to sublease the leased properties to cover these lease commitments in the leasing period. In regards to the leasing agreements, we have agreed with certain buyers and have lowered the annual rental return rate for the remaining leasing period from 8.5% for 5 years to 5.8%, and from 8.8% for 8 years to 6%. These sub-leasing agreements related to the underwriting project have been expired in mid-2014. Any sub-leasing agreements entered will not be related to the 2005/2006 leasing agreements but on a case by case basis.
We expect that the income from the sub-leasing business will be on a stable growth trend in 2014 and that it can cover the lease commitments in the leasing period as a whole. However there can be no assurance that we will achieve these objectives.
Underwriting Sales
In February 2004, SHSY entered into an agreement to underwrite an office building in Suzhou, known as Suzhou Sovereign Building. Being the sole distribution agent for this office building, SHSY committed to a sales target. Property underwriting sales are comparatively a higher risk business model compared to our pure commission based agency business. Under this higher risk business model, the Underwriting Model, our commission is not calculated as a percentage of the selling price; instead, our commission revenue is equivalent to the price difference between the final selling price and underwriting price. We negotiate with a developer for an underwriting price that is as low as possible, with the guarantee that all or a majority of the units will be sold by a specific date. In return, we are given the flexibility to establish the final selling price and earn the price difference between the final selling price and the underwriting price. The risk of this kind of arrangement is that if there is any unsold unit on the expiration date of the agreement, we may have to absorb the unsold property units from developers at the underwriting price and hold them in our inventory or as investments.
The Company accounts for its underwriting sales revenue with underwriting rent guarantees in accordance with ASC 967-605, “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66, “Accounting for Sales of Real Estate”. The deposit method has been used for the revenue from the sales of floor space with underwriting rent guarantees until the revenues generated by sub-leasing properties exceed the guaranteed rental amount due to the purchasers.
Notable Share Transactions
SHANGHAI, Nov. 27, 2014 /PRNewswire / -- Sunrise Real Estate Group, Inc. (OTC.QB: SRRE; website: www.sunrise.sh) announces that effective on November 27, 2014 the registrant, Sunrise Real Estate Group, Inc. ("Sunrise"), closed the Share Purchase Agreement entered on November 10, 2014 and issued 20 million shares to Ace for RMB 10,460,000 (US $1,700,000 equivalent) to Ace Develop Properties Limited ("Ace").
Deal Flow
Item 1.01 Entry into a Material Definitive Agreement.
On November 10, 2014, the registrant, Sunrise Real Estate Group, Inc. ("Sunrise"), entered into a Share Purchase Agreement with Ace Develop Properties Limited (“Ace”) to issue 20 million shares to Ace for RMB 10,460,000 (US $1,700,000 equivalent). This agreement, subject to standard closing terms and conditions, is scheduled to close on or before November 28, 2014. Ace is wholly-owned by Lin Chi-Jung, our Chief Executive Officer, President and Chairman of the Board. On November 27, 2014 Sunrise received the RMB 10,460,000 and issued 20 million shares to Ace, thereby closing the Share Purchase Agreement.
As set forth in above Item 1.01, upon the closing of the Share Purchase Agreement, Sunrise will issued 20 million shares to Ace and received RMB 10,460,000 (US $1,700,000 equivalent).
Reverse Merger Activity
Item 1.01 Entry into a Material Definitive Agreement.
On November 10, 2014, the registrant, Sunrise Real Estate Group, Inc. ("Sunrise"), entered into a Share Purchase Agreement with Ace Develop Properties Limited (“Ace”) to issue 20 million shares to Ace for RMB 10,460,000 (US $1,700,000 equivalent). This agreement, subject to standard closing terms and conditions, is scheduled to close on or before November 28, 2014. Ace is wholly-owned by Lin Chi-Jung, our Chief Executive Officer, President and Chairman of the Board.
Item 3.02. Unregistered Sales of Equity Securities.
As set forth in above Item 1.01, Sunrise, upon the closing of the Share Purchase Agreement, will issue 20 million shares to Ace for RMB 10,460,000 (US $1,700,000 equivalent).
In connection with the issue of its shares to Ace, Sunrise will rely on Regulation S as its exemption from the registration requirements of the Securities Act of 1933. The purchaser is a non-US person and has agreed that the shares may not be transferred or sold except in accordance with the provisions of Regulation S and/or compliance with the registration requirements of the Securities Act of 1933 or in reliance upon an applicable exemption therefrom. The certificates representing the Sunrise shares shall bear a legend reflecting such transfer restrictions and stop transfer orders will be placed with the transfer agent against these shares.
Reverse Merger Activity
Item 1.01 Entry into a Material Definitive Agreement.
entered into a Share Purchase Agreement with Ace Develop Properties Limited (“Ace”) to issue 20 million shares to Ace for RMB 10,472,000, US $1,700,000 equivalent, (“funds”). This agreement, subject to standard closing terms and conditions, is scheduled to close on or before August 31, 2014. Ace is wholly-owned by Lin Chi-Jung, our Chief Executive Officer, President and Chairman of the Board.
Item 3.02. Unregistered Sales of Equity Securities.
In connection with the issue of its shares to Ace or their designees, Sunrise will rely on Regulation S as its exemption from the registration requirements of the Securities Act of 1933. All of such persons are non-US persons and agree that the shares may not be transferred or sold except in accordance with the provisions of Regulation S and/or compliance with the registration requirements of the Securities Act of 1933 or in reliance upon an applicable exemption therefrom. The certificates representing the Sunrise shares shall bear a legend reflecting such transfer restrictions and stop transfer orders will be placed with the transfer agent against these shares.
Deal Flow
Item 1.01 Entry into a Material Definitive Agreement.
Item 3.02. Unregistered Sales of Equity Securities.
Sunrise, upon the closing of the Share Purchase Agreement, will issue 20 million shares to Ace for RMB 10,472,000 (US $1,700,000 equivalent).
In connection with the issue of its shares to Ace, Sunrise will rely on Regulation S as its exemption from the registration requirements of the Securities Act of 1933. The purchaser is a non-US person and has agreed that the shares may not be transferred or sold except in accordance with the provisions of Regulation S and/or compliance with the registration requirements of the Securities Act of 1933 or in reliance upon an applicable exemption therefrom. The certificates representing the Sunrise shares shall bear a legend reflecting such transfer restrictions and stop transfer orders will be placed with the transfer agent against these shares.
Comments & Business Outlook
SUNRISE REAL ESTATE GROUP, INC. AND SUBSID IARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in U.S. Dollars)
Three Months Ended September 30,
Nine Months Ended September 30,
2013
2012
2013
2012
(Restated)
(Restated)
Net revenues
$
2,673,046
$
1,877,851
$
9,273,860
$
5,433,174
Cost of revenues
(1,264,443)
(1,000,045)
(3,644,647)
(3,069,720)
Gross income
1,408,603
877,806
5,629,213
2,363,454
Operating expenses
(451,132)
(468,213)
(1,136,947)
(1,078,923)
General and administrative expenses
(870,165)
(907,222)
(2,693,023)
(2,765,542)
Operating income (loss)
87,306
(497,629)
1,799,243
(1,481,011)
Other income (expenses)
Interest income
196,741
5,372
575,959
9,162
Interest expense, net of amount capitalized
(1,146,811)
(289,977)
(3,019,003)
(1,274,583)
Miscellaneous, net
2,238
(4,652)
18,481
(6,613)
Total other expenses
(947,832)
(289,257)
(2,424,563)
(1,272,034)
Loss before income taxes and equity in net
(860,526)
(786,886)
(625,320)
(2,753,045)
Income tax expense (benefit)
78,987
692
59,349
(40,788)
Equity in losses of unconsolidated affiliates,
(184,889)
(107,476)
(457,676)
(309,319)
Net loss
(966,428)
(893,670)
(1,023,647)
(3,103,152)
Less: Net loss attributable to non-controlling
70,038
49,565
145,391
526,450
Net loss attributable to shareholders of
$
(896,390)
$
(844,105)
$
(878,256)
$
(2,576,702)
Loss per share – basic and fully diluted
$
(0.03)
$
(0.03)
$
(0.03)
$
(0.09)
Weighted average common shares
- Basic and fully diluted
28,691,925
28,691,925
28,691,925
28,691,925
See accompanying notes to unaudited condensed consolidated financial statements .
CFO Trail
SHANGHAI , June 24, 2013 /PRNewswire / -- Sunrise Real Estate Group, Inc. (OTC.QB: SRRE; website: www.sunrise.sh) announced that effective June 24, 2013, Mr. Wang Wen Yan resigned as Chief Financial Officer of Sunrise Real Estate Group, Inc. (the "Company"). His resignation was not due to any disagreement with the Company or its management regarding any matter relating to the Company's operations, policies or practices. At the same day, Mr. Mi Yong Jun is appointed as CFO of Sunrise.
Mr. Mi, 39 years old, was the Chief Financial Officer of Wanbang from 2010 until his appointment as our CFO. From 2009 to 2010, he worked for the Company as the financial controller. Prior to 2009, he worked for Macquarie Banking Limited, as a senior finance manager. Mr. Mi graduated from East China Normal University in 2012 with an MBA degree.
Comments & Business Outlook
SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in U.S. Dollars)
Three Months Ended March 31,
2013
2012
(Restated)
Net revenues
$
2,113,429
$
1,719,535
Cost of revenues
(1,163,939
)
(1,148,887
)
Gross profit
949,490
570,648
Operating expenses
(312,924
)
(284,220
)
General and administrative expenses
(1,051,759
)
(1,035,876
)
Operating loss
(415,193
)
(749,448
)
Other income (expenses)
Interest income
157,948
3,398
Interest expense
(915,147
)
(491,451
)
Miscellaneous
15,311
34,014
Total other expenses
(741,888
)
(454,039
)
Loss before income taxes and equity in net loss of
an unconsolidated affiliate
(1,157,081
)
(1,203,487
)
Income tax benefit (expense)
15,781
(15,675
)
Equity in net loss of an unconsolidated affiliate, net of
income taxes
(193,022
)
(165,042
)
Net loss
(1,334,322
)
(1,384,204
)
Less: Net loss attributable to non-controlling
interests
130,069
294,514
Net loss attributable to shareholders of Sunrise Real
Estate Group, Inc.
$
(1,204,253
)
$
(1,089,690
)
Loss per share – basic and fully diluted
$
(0.04
)
$
(0.04
)
Weighted average common shares outstanding
- Basic and fully diluted
28,691,925
28,691,925
Comments & Business Outlook
SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
Years Ended December 31,
2012
2011
Net revenues
$
8,529,990
$
8,972,536
Cost of revenues
(4,894,833
)
(6,231,262
)
Gross profit
3,635,157
2,741,274
Operating expenses
(1,401,659
)
(1,042,241
)
General and administrative expenses
(3,345,635
)
(2,524,221
)
Operating loss
(1,112,137
)
(825,188
)
Other income (expenses)
Interest income
239,079
13,775
Interest expense
(2,420,375
)
(1,514,782
)
Reversal of overprovided sales taxes in prior years
-
222,487
Miscellaneous
39,156
19,405
Total other expenses
(2,142,140
)
(1,259,115
)
Loss before income taxes and equity in net loss of an unconsolidated affiliate
(3,254,277
)
(2,084,303
)
Income tax benefit (Note 15)
13,518
930,154
Equity in net loss of an unconsolidated affiliate, net of income taxes
(230,490
)
-
Net loss
(3,471,249
)
(1,154,149
)
Less: Net loss (profit) attributable to non-controlling Interests
377,965
(262,673
)
Net loss attributable to shareholders of Sunrise Real Estate Group, Inc.
$
(3,093,284
)
$
(1,416,822
)
Loss per share – basic and fully diluted
$
(0.11
)
$
(0.05
)
Weighted average common shares outstanding - Basic and fully diluted
28,691,925
26,191,925
Comments & Business Outlook
Sunrise Real Estate Group, Inc.
Unaudited Condensed Consolidated Statements of Operations
(Expressed in US Dollars)
Three Months Ending June 30,
Six Months Ending June 30,
2012
2011
2012
2011
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net Revenues
$
1,835,788
$
2,120,724
$
3,555,323
$
4,725,348
Cost of Revenues
$
(729,166
)
(1,545,481
)
(1,878,053
)
(3,284,822
)
Gross Profit
1,106,662
575,243
1,677,270
1,440,526
Operating Expenses
(326,490
)
(322,402
)
(610,710
)
(661,306
)
General and Administrative Expenses
(1,090,673
)
(438,869
)
(2,126,550
)
(1,131,059
)
Operating Profit/(Loss)
$
(310,542
)
$
(186,028
)
$
(1,059,990
)
$
(351,839
)
Loss on Investment
(49,653
)
-
(622,096
)
-
Interest Income
391
3,668
3,790
7,425
Other Income, Net
$
830,701
114
2,697,470
(5,318
)
Interest Expenses
(493,155
)
(467,822
)
(984,606
)
(660,797
)
Profit/(Loss) Before Income Tax and Non-controlling Interest
(22,258
)
(650,068
)
34,568
(1,010,529
)
Income Tax
(25,805
)
(124,302
)
(41,480
)
(132,630
)
Profit/(Loss) Before Non-controlling Interest
(48,063
)
(774,370
)
(6,912
)
(1,143,159
)
Non-controlling Interest
(391,850
)
(70,511
)
(1,490,232
)
(194,025
)
Net Profit/(Loss)
$
(439,913
)
$
(844,881
)
$
(1,497,144
)
$
(1,337,184
)
Profit/(Loss) Per Share – Basic and Fully Diluted
$
(0.02
)
$
(0.03
)
$
(0.05
)
$
(0.05
)
Weighted average common shares outstanding
– Basic and Fully Diluted
28,691,925
26,191,925
28,691,925
26,191,925
Comments & Business Outlook
Years Ended December 31,
2011
2010
(Audited)
(Audited)
Net Revenues
$
9,278,031
$
12,821,257
Cost of Revenues
(6,338,290
)
(7,064,152
)
Gross Profit
2,939,741
5,757,105
Operating Expenses
(1,042,241
)
(1,380,081
)
General and Administrative Expenses
(2,524,221
)
(2,600,936
)
Operating Profit/(Loss)
(626,721
)
1,776,088
Other Income, Net (Note 20)
1,198,935
53,560
Interest Income
13,775
9,964
Interest Expenses
(1,514,782
)
(613,155
)
Profit/(Loss) Before Income Tax and Non-controlling Interest
(928,793
)
1,226,457
Income Tax (Note 15)
(26,889
)
(664,187
)
Profit/(Loss) Before Non-controlling Interest
(955,682
)
562,270
Non-controlling Interest of Consolidated Subsidiaries
(262,673
)
(587,757
)
Net Profit/(Loss)
$
(1,218,355
)
$
(25,487
)
Profit/(Loss) Per Share – Basic and Fully Diluted
$
(0.05
)
$
0.00
Weighted average common shares outstanding
26,191,925
23,691,925
The following table shows the detail for net revenues by line of business:
Years ended December 31,
2011
% to total
2010
% to total
% change
Agency sales
5,955,431
64
9,243,762
72
(36
)
Underwriting sales
946,273
10
1,270,999
10
(26
)
Property management
2,376,327
26
2,306,496
18
3
Net revenue
9,278,031
100
12,821,257
100
(28
)
The macro policies in 2011 aiming to cool real estate prices has affected many business in the real estate industry. This effect is evident in our decrease in our agency sales. We are continually seeking stable growth in our agency sales business in 2012. However, there can be no assurance that we will be able to do so.
Financials
Sunrise Real Estate Group, Inc.
Unaudited Condensed Consolidated Statements of Operations
(Expressed in US Dollars)
Three Months Ended March 31,
2012
2011
(Unaudited)
(Unaudited)
Net Revenues
$1,719,535
$2,604,624
Cost of Revenues
($1,148,887)
($1,739,341)
Gross Profit
570,648
865,283
Operating Expenses
(284,220)
(338,904)
General and Administrative Expenses
(1,035,876)
(692,190)
Operating Profit/(Loss)
(749,448)
(165,811)
Other Income, Net (Note 19)
1,866,770
-
Interest Income
$3,398
$3,757
Interest Expenses
(491,451)
(198,407)
Profit/(Loss) Before Income Tax and Non-controlling Interest
629,269
(360,461)
Income Tax
(15,675)
(8,328)
Profit/(Loss) Before Non-controlling Interest
613,594
(368,789)
Return on Investment
(572,443)
-
Non-controlling Interest of Consolidated Subsidiaries
(1,098,382)
(123,514)
Net Profit/(Loss)
($1,057,231)
($492,303)
Profit/(Loss) Per Share – Basic and Fully Diluted
($0.04)
($0.02)
Weighted average common shares outstanding
28,691,925
23,691,925
CFO Trail
SHANGHAI , April 18, 2012 /PRNewswire-Asia / -- Sunrise Real Estate Group, Inc. (OTC.QB: SRRE; website: www.sunrise.sh) announced that on April 16, 2012 , Mr. Wang Wen Yan was appointed as Chief Financial Officer of Sunrise Real Estate Group, Inc. (the "Company"). On the same day, Mrs. Wang Wen Hua resigned as interim CFO of Sunrise and remains as the Group's senior comptroller.
Mr. Wang, 32 years old, was previously the financial controller and CFO of the Company. Mr. Wang had been with the Company since May 2005 and left on March 17, 2011 . He worked in a real estate development company for 4 years before joining the Company. He graduated from Shanghai University with a Bachelor's degree in accounting and has a Master's degree at the Shanghai University of Finance and Economics.
Comments & Business Outlook
Nine Months Ended September 30,
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net Revenues
$ 1,830,438
$ 3,099,068
$ 6,555,786
$ 10,741,502
Cost of Revenues
$ (1,481,513 )
(1,389,320 )
(4,766,335 )
(5,512,388 )
Gross Profit
348,925
1,709,748
1,789,451
5,229,114
Operating Expenses
(290,726 )
(431,990 )
(952,032 )
(1,093,597 )
General and Administrative Expenses
(619,907 )
(698,275 )
(1,750,966 )
(1,813,618 )
Operating Profit/(Loss)
(561,708 )
579,483
(913,547 )
2,321,899
Other Income, (Net)
7,576
2,750
2,258
7,865
Interest Income
2,516
44,961
9,941
39,364
Interest Expenses
(310,935 )
(142,348 )
(971,732 )
(448,455 )
Loss Before Income Tax and Minority Interest
(862,551 )
484,846
(1,873,080 )
1,920,673
Income Tax
59,324
(58,478 )
(73,306 )
(608,776 )
Profit/(Loss) Before Minority Interest
(803,227 )
426,368
(1,946,386 )
1,311,897
Non-controlling Interest
97,103
(451,245 )
(96,922 )
(819,577 )
Net Profit/(Loss)
$ (706,124 )
$ (24,877 )
$ (2,043,308 )
$ 492,320
Profit/(Loss) Per Share – Basic and Fully Diluted
$ (0.02 )
$ 0.00
$ (0.08 )
$ 0.02
Weighted average common shares outstanding – Basic and Fully Diluted
28,691,925
23,691,925
28,691,925
23,691,925
Because current macro economic policies on the real estate market has put a downward pressure on housing prices, real estate industry are being adversely affected including our company
Liquidity Requirements
We plan to raise funds through the issuance of additional shares of our equity securities in one or more public or private offerings. We will also consider raising funds through credit facilities obtained with lending institutions.
Deal Flow
SHANGHAI ,
October 4, 2011 /
PRNewswire-Asia / -- Sunrise Real Estate Group, Inc. (Other OTC: SRRE; website:
www.sunrise.sh ) announced that on
September 30, 2011 , Sunrise has received the $500,000 from Better Time International ("Better Time") and has issued 2,500,000 shares of common stock to Better Time pursuant to the share purchase agreement signed on January 22, 2011 .
Comments & Business Outlook
Unaudited Condensed Consolidated Statements of Operations
(Expressed in US Dollars)
Three Months Ending June 30,
Six Months Ending June 30,
2011
2010
2011
2010
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net Revenues
$ 2,120,724 $ $ 4,725,348 $
Cost of Revenues
$ (1,545,481 ) (2,106,356 ) (3,284,822 ) (4,123,068 )
Gross Profit
575,243 836,559 1,440,526 3,519,366
Operating Expenses
(322,402 ) (293,090 ) (661,306 ) (661,607 )
General and Administrative Expenses
(438,869 ) (532,981 ) (1,131,059 ) (1,115,343 )
Operating Profit/(Loss)
$ (186,028 ) $ 10,488 $ (351,839 ) $ 1,742,416
Interest Income
$ 3,668 2,132 7,425 5,115
Other Income, Net
$ 114 (22,531 ) (5,318 ) (5,597 )
Interest Expenses
(467,822 ) (157,604 ) (660,797 ) (306,107 )
Profit/(Loss) Before Income Tax and Minority Interest
(650,068 ) (167,515 ) (1,010,529 ) 1,435,827
Income Tax
(124,302 ) (527,169 ) (132,630 ) (550,298 )
Profit/(Loss) Before Minority Interest
(774,370 ) (694,684 ) (1,143,159 ) 885,529
Minority Interest
(70,511 ) 187,764 (194,025 ) (368,332 )
Net Profit/(Loss)
$ (844,881 ) $ (506,920 ) $ (1,337,184 ) $ 517,197
Profit/(Loss) Per Share – Basic and Fully Diluted
$ ($0.03 ) $ (0.02 ) $ (0.05 ) $ 0.02
Weighted average common shares outstanding
– Basic and Fully Diluted
26,191,925 23,691,925 26,191,925 23,691,925
Notable Share Transactions
SHANGHAI, June 29, 2011 /PRNewswire-Asia / -- Sunrise Real Estate Group, Inc. (Other OTC: SRRE; website:www.sunrise.sh) announced that on June 24, 2011, Sunrise has received the $500,000 from Good Speed and has issued 2,500,000 shares of common stock to Good Speed pursuant to the share purchase agreement signed on January 22, 2011.
Comments & Business Outlook
Consolidated Statements of Operations
(Expressed in US Dollars)
Years Ended December 31,
2010
2009
(Audited)
(Audited)
Net Revenues
$ 12,821,257 $ 13,110,591
Cost of Revenues
(7,064,152 ) (5,995,769 )
Gross Profit
5,757,105 ) 7,114,822
Operating Expenses
(1,380,081 ) (968,520 )
General and Administrative Expenses
(2,600,936 ) (2,355,278 )
Operating Profit/(Loss)
1,776,088 3,791,024
Other Income, Net
53,560 480,618
Interest Income
9,964 3,557
Impairment loss on goodwill (Note 7)
- (13,307 )
Interest Expenses
(613,155 ) (555,282 )
Profit/(Loss) Before Income Tax and Minority Interest
1,226,457 3,706,610
Income Tax (Note 13)
(664,187 ) (201,057 )
Profit/(Loss) Before Minority Interest
562,270 3,505,553
Non-controlling Interest of Consolidated Subsidiaries
(587,757 ) (230,169 )
Net Profit/(Loss)
$ ( 25,487 ) $ 3,275,384
Profit/(Loss) Per Share – Basic and Fully Diluted
$ 0.00 $ 0.14
Weighted average common shares outstanding
– Basic and Fully Diluted
23,691,925 23,691,925
CFO Trail
Effective March 17, 2011, Mr. Wang Wen Yan resigned as Chief Financial Officer of Sunrise Real Estate Group, Inc. His resignation was not due to any disagreement with the Company or its management regarding any matter relating to the Company’s operations, policies or practices.
On the same date, we appoint Mr. Liu Zhen Yu as our Chief Financial Officer. The Company also issued a press release announcing Mr. Liu’s appointment, a copy of which is attached hereto as Exhibit 99.1.
Deal Flow
On January 22, 2011 , the registrant, Sunrise Real Estate Development Group, Inc. ("Sunrise"), entered into a Share Purchase Agreement with Good Speed Services Limited (“Good Speed”) to issue 2,500,000 shares to Good Speed for US $500,000. This agreement, subject to standard closing terms and conditions, was scheduled to close on or before March 20, 2011.
On March 18, 2011, Sunrise and Good Speed agreed to extend the scheduled closing date of the Share Purchase Agreement, subject to standard closing terms and conditions, to on or before July 5, 2011. All other terms and conditions of the Share Purchase Agreement remain unchanged and in full force and effect.
Deal Flow
On January 21, 2011 the registrant, Sunrise Real Estate Development Group, Inc, entered into a Share Purchase Agreement with Good Speed Services Limited (“Good Speed”) to issue 2.5 million shares to Good Speed for US $500,000. This transaction is subject to standard closing terms and conditions and is scheduled to close on or before March 20, 2011.
On January 22, 2011, the registrant, Sunrise Real Estate Development Group, Inc., entered into a Share Purchase Agreement with Better Times International Limited (“Better Time”) to issue 2.5 million shares to Better Time for US $500,000. This transaction is subject to standard closing terms and conditions and is scheduled to close on or before March 20, 2011.
Liquidity Requirements
If our business otherwise grows more rapidly than we currently predict,
we plan to raise funds through the issuance of additional shares of our equity securities in one or more public or private offerings. We will also consider raising funds through credit facilities obtained with lending institutions.
Research
The Company’s financial statements are prepared according to the accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has incurred losses of $2,612,920 for the first three quarters of 2008 and had a net working capital deficiency of $1,930,788 as of September 30, 2008 . The Company’s net working capital deficiency, recurring losses and negative cash flows from operations raise substantial doubt about its ability to continue as a going concern .
However , management believes that the Company is able to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain successful operations in respect of the agency sales and building management operations. Accordingly, the accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
Source: SEC Form ( For the quarterly period ended September 30, 2008. page 8)
