SRRE Sunrise Real Estate Group Inc (PK)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q/A

Amendment No. 1

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

 

Commission File Number 000-32585

 

SUNRISE REAL ESTATE GROUP, INC.

 

(Exact name of registrant as specified in its charter)

 

Texas		75-2713701
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

No. 638, Hengfeng Road 25th Fl, Building A

Shanghai, PRC 200070

(Address of Principal Executive Offices) (Zip Code)

 

Issuer's telephone number: + 86-21-6167-2800

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ¨   No x

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files).

Yes x   No¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x

 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ¨ No x

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: February 26, 2016–68,691,925 shares of Common Stock

 

 

EXPLANATORY NOTE

 

Sunrise Real Estate Group, Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment No. 1”) to amend and restate the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 (the “Quarterly Report”), as originally filed with the Securities and Exchange Commission (the “Commission”) on January 13, 2016 (the “Original Filing Date”). This Amendment No. 1 is being filed to correct typographic errors and inaccurate information contained in the financial statements, including notes number 1, 9 to 12 and 18, and Results of Operations under Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Except as described above, no other changes have been made to the Quarterly Report. This Form 10-Q/A does not reflect events occurring after the filing of the Quarterly Report or modify or update those disclosures. Accordingly, this Form 10-Q/A should be read in conjunction with our filings made with the SEC subsequent to the filing of the Quarterly Report, including any amendments to those filings.

FORM 10-Q/A

 

For the Quarter Ended March 31, 2014

 

INDEX

			Page
PART I.	FINANCIAL INFORMATION		4
Item 1.	Financial Statements (Unaudited)		4
	Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013		4
	Condensed Consolidated Statements of Operations for The Three Months Ended March 31, 2014 and 2013		5
	Condensed Consolidated Statements of Comprehensive Loss for The Three Months Ended March 31, 2014 and 2013		6
	Condensed Consolidated Statements of Cash Flows for The Three Months Ended March 31, 2014 and 2013		7
	Notes to Condensed Consolidated Financial Statements		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		29
Item 4.	Controls and Procedures		29
PART II.	OTHER INFORMATION		30
Item 1.	Legal Proceedings		30
Item 1A	Risk Factors		30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 3.	Defaults Upon Senior Securities		30
Item 4.	Mine Safety Disclosures		30
Item 5.	Other Information		30
Item 6.	Exhibits		30
SIGNATURES			31

 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Expressed in U.S. Dollars)

		March 31,				December 31,
		2014				2013
ASSETS
Current assets
Cash and cash equivalents		$	3,227,632			$	3,503,510
Restricted cash (Note 3)			23,461				246,895
Accounts receivable			1,190,598				1,289,469
Promissory deposits (Note 4)			747,712				754,482
Real estate property under development (Note 5)			32,766,496				31,119,043
Amount due from an unconsolidated affiliate (Note 9)			2,211,185				3,086,185
Other receivables and deposits, net (Note 6)			8,558,308				204,557
Total current assets			48,725,392				40,204,141
Property and equipment, net (Note 7)			8,875,067				9,139,734
Investment properties, net (Note 8)			5,998,986				6,137,819
Deferred tax assets (Note 15)			679,423				469,400
Investment in an unconsolidated affiliate (Note 9)			5,480,505				5,642,909
Other investments			146,292				104,315
Total assets		$	69,905,665			$	61,698,318
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Bank loans (Note 10)		$	18,448,985			$	18,616,018
Current portion of long-term borrowings (Note 11)			7,964,760				8,036,871
Promissory notes payable (Note 12)			15,198,449				5,076,547
Accounts payable			748,125				489,582
Amounts due to directors (Note 13)			8,501,057				10,440,238
Amount due to an affiliate			69,641				-
Customer deposits			5,016,220				3,168,369
Other payables and accrued expenses (Note 14)			2,285,966				3,001,581
Other taxes payable			174,895				190,036
Dividends payables			355,924				-
Income taxes payable			135,093				190,152
Total current liabilities			58,899,115				49,209,394
Long term bank loan (Note 11)			3,413,469				3,444,374
Deferred government subsidy (Note 15)			5,392,535				5,441,360
Total liabilities			67,705,119				58,095,128
Commitments and contingencies (Note 16)
Shareholders’ equity
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 28,691,925 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively			286,919				286,919
Additional paid-in capital			4,570,008				4,570,008
Statutory reserve (Note 17)			783,101				782,987
Accumulated losses			(15,410,688	)			(14,668,376	)
Accumulated other comprehensive income			120,242				172,214
Total deficit of Sunrise Real Estate Group, Inc.			(9,650,418	)			(8,856,248	)
Non-controlling interests			11,850,964				12,459,438
Total shareholders’ equity			2,200,546				3,603,190
Total liabilities and shareholders’ equity		$	69,905,665			$	61,698,318

 

See accompanying notes to consolidated financial statements.

 

 

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Expressed in U.S. Dollars)

 

		Three Months Ended March 31,
		2014				2013
Net revenues		$	2,721,154			$	2,113,429
Cost of revenues			(1,321,918	)			(1,163,939	)
Gross profit			1,399,236				949,490
Operating expenses			(631,074	)			(312,924	)
General and administrative expenses			(833,640	)			(1,051,759	)
Operating loss			(65,478	)			(415,193	)
Other income (expenses)
Interest income			100,269				157,948
Interest expense			(830,759	)			(915,147	)
Other income, net			(12,926	)			15,311
Total other expenses			(743,416	)			(741,888	)
Income (loss) before income taxes and equity in net loss of an unconsolidated affiliate			(808,894	)			(1,157,081	)
Income tax benefit (expense)			204,726				15,781
Equity in net gain (loss) of an unconsolidated affiliate, net of  income taxes			(112,379	)			(193,022	)
Net loss			(716,547	)			(1,334,322	)
Less: Net income (loss) attributable to non-controlling interests			334,420				130,069
Net loss attributable to shareholders of Sunrise Real Estate Group, Inc.		$	(382,127	)		$	(1,204,253	)
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

 

See accompanying notes to consolidated financial statements.

 

 

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED)

(Expressed in U.S. Dollars)

 

		Three Months Ended March 31,
		2014				2013
Net Loss		$	(716,547	)		$	(1,334,322	)
Other comprehensive income (loss)
-   Foreign currency translation adjustment			(326,027	)			26,866
Total comprehensive loss			(1,042,574	)			(1,307,456	)
Less: Comprehensive loss (income) attributable to non-controlling interests			608,475				98,752
Total comprehensive loss attributable to stockholders of Sunrise Real Estate Group, Inc.		$	(434,099	)		$	(1,208,704	)

 

See accompanying notes to consolidated financial statements.

 

 

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Expressed in U.S. Dollars)

 

		Three Months Ended March 31,
		2014				2013
Cash flows from operating activities
Net loss		$	(716,547	)		$	(1,334,322	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization			299,740				284,450
Bad debts			(1,459	)			-
Loss (Gain) on disposal of property, plant and equipment			14,133				-
Equity in net loss of an unconsolidated affiliate			112,379				193,022
Changes in assets and liabilities
Accounts receivable			87,774				992,564
Promissory deposits			-				(11,155	)
Real estate property under development			(1,937,124	)			(1,822,566	)
Customer Deposits			1,886,459				-
Amount due from unconsolidated affiliates			851,906				-
Other receivables and deposits			(8,399,463	)			(359,839	)
Deferred tax assets			(215,398	)			(15,781	)
Accounts payable			264,363				(77,759	)
Amount due to an affiliate			70,018				-
Other payables and accrued expenses			(692,420	)			(1,374,024	)
Deposits received from underwriting sales			-				(551,625	)
Interest payable on promissory notes			142,187				114,734
Interest payable on amounts due to directors			312,399				(665,718	)
Other taxes payable			(13,509	)			(59,843	)
Income taxes payable			(53,641	)			(144,829	)
Net cash used in operating activities			(7,988,203	)			(4,832,691	)
Cash flows from investing activities
Purchases of property and equipment			(42,978	)			(50,748	)
Decrease in restricted cash			-				478,057
Repayment of advances to an unconsolidated affiliate			-				318,884
Net cash used in investing activities			(42,978	)			746,193
Cash flows from financing activities
Restricted cash			222,419				-
Bank loan repayments			(1,666,966	)			-
New bank loans			1,676,011				1,274,819
Advances from directors			46,389				4,345,689
Repayments of advances from directors			(2,297,969	)			(1,950,536	)
Proceeds from new promissory notes			10,579,673				956,114
Repayments of promissory notes			(599,958	)			-
Dividend paid to non-controlling interests			-				(79,233	)
Net cash provided by financing activities			7,959,599				4,546,853
Effect of exchange rate changes on cash and cash equivalents			(204,296	)			71,822
Net decrease in cash and cash equivalents			(275,878	)			532,177
Cash and cash equivalents at beginning of year			3,503,510				934,123
Cash and cash equivalents at end of year		$	3,227,632			$	1,466,300
Supplemental disclosure of cash flow information
Income taxes paid		$	56,842			$	144,830
Interest paid			933,498				1,429,348

 

See accompanying notes to consolidated financial statements.

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Sunrise Real Estate Group, Inc. “SRRE” was incorporated in Texas on October 10, 1996 under the name of Parallax Entertainment, Inc. SRRE together with its subsidiaries and equity investment described below is collectively referred to as “the Company”, “our” or “us”. The Company is primarily engaged in the provision of property brokerage services, which include property marketing, leasing and management services; and real estate development in the People’s Republic of China (the “PRC”).

 

As of March 31, 2014, the Company has the following major subsidiaries and equity investments.

 

Company Name

Date of Incorporation

Place of Incorporation

% of Ownership held by the Company

Relationship with the 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 Real Estate consultation Company Limited (“SHSY”)

February 5, 2004

PRC

100

%

Subsidiary

Property brokerage services

Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”)

January 10, 2005

PRC

100

%

Subsidiary

Property management and leasing services

Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)

November 24, 2006

PRC

38.5

%*

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

24

%**

Subsidiary

Real estate development

Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)

October 20, 2010

PRC

100

%

Subsidiary

Property brokerage services

Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)

November 10, 2010

PRC

60

%

Subsidiary

Property brokerage services

Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)

September 18, 2008

PRC

100

%

Subsidiary

Property brokerage services

Shanghai 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

Putian Xin Ji Yang Real Estate Consultation Company Limited (“PTXJY”)

June 5, 2012

PRC

55

%

Subsidiary

Property brokerage services

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

40

%

Equity investment

Property brokerage services

Xin Guang Investment Management and Consulting Company Limited (“XG”)

December 17, 2012

PRC

49

%

Equity investment

Investment management and consulting

Shanghai Daerweiei Trading Company Limited (“SHDEW”)

June 6, 2013

PRC

30

%

Equity investment

Import and export trading

 

 

*

The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company.

**

The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company.

***

The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY.

 

The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from the audited consolidated financial statements and the accompanying unaudited condensed consolidated financial statements, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations and the Company believes that the disclosures made are adequate to make the information not misleading.

 

In the opinion of management, these condensed consolidated financial statements reflect all adjustments which are of a normal recurring nature and which are necessary to present fairly the financial position of Sunrise Real Estate as of March 31, 2014 and the results of operations for the three months ended March 31, 2014 and 2013, and the cash flows for the three months ended March 31, 2014 and 2013. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results which may be expected for the entire fiscal year.

 

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

 

NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Accounting and Principles of Consolidation

 

The condensed consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation.

 

Investments in business entities, in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method.

 

Going Concern

 

The Company’s condensed consolidated financial statements have been prepared on a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As of March 31, 2014, the Company had a working capital deficiency, accumulated deficit from recurring net losses, and significant short-term debt obligations currently in default or maturing in less than one year. These factors raise substantial doubts about the Company’s ability to continue as a going concern.

 

 

Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on timely basis for the next twelve months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed. There is no assurance that the Company will be able to obtain additional financing on acceptable terms and any financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our shareholders in the case of equity financing. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing, or incurs significant unplanned cash outlays, the Company may be required to suspend operations or cease business entirely.

 

The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

Foreign Currency Translation and Transactions

 

The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records are maintained and the financial statements prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliate in China is Renminbi (“RMB”) and their financial records and statements are maintained and prepared in RMB.

 

Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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 period-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations.

 

The financial statements of the Company’s operations based outside of the United States have been translated into U.S. dollars in accordance with ASC830. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into U.S. dollars, period-end exchange rates are applied to the condensed consolidated balance sheets, while average exchange rates as to revenues and expenses are applied to consolidated statements of operations. The effect of foreign currency translation adjustments is included as a component of accumulated other comprehensive income in shareholders’ equity.

 

The exchange rates as of March 31, 2014 and December 31, 2013 are $1: RMB 6.1521 and $1: RMB 6.0969, respectively.

 

The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation.

 

Real Estate Property under Development

 

Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs.

 

Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs.

 

Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results.

 

In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets.

 

For the three months ended March 31, 2014 and 2013, the Company had not recognized any impairment for real estate property under development.

 

Long Term Investments

 

The Company accounts for long term investments in equities as follows.

 

Investment in Unconsolidated Affiliates

 

Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

 

When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company 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. The Company recorded any impairment losses in any of the periods reported.

 

Other Investments

 

Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the cost method. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the cost method and any decline in value is included in impairment of cost of the investment.

 

Government Subsidies

 

Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments.

 

In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue.

 

Government subsidy was received in 2012 and as of March 31, 2014 and December 31, 2013, the Company received $5,392,535 and $5,441,360, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date. The Company recorded the subsidy received as a deferred government subsidy in consolidated balance sheets.

 

Revenue Recognition

 

Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer.

 

Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured.

 

Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements.

 

 

The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred.

 

All revenues represent gross revenues less sales and business taxes.

 

Net Earnings (Loss) per Common Share

 

The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive.

 

Recently Adopted Accounting Standards

 

In December 2011, the FASB issued ASU No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

 

In February 2013, the FASB issued ASU 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the company on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

 

New Accounting Pronouncements

 

In March 2013, the FASB issued ASU 2013-05 Topic 830 – Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-02 became effective for the company prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material effect on the Company’s condensed consolidated financial statements.

 

The FASB has issued ASU 2013-04 Topic 405 - Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company’s condensed consolidated financial statements.

 

 

NOTE 3– RESTRICTED CASH

 

The Company is required to maintain certain deposits with the bank that provides secured loans to the Company. As of March 31, 2014 and December 31, 2013, the Company held cash deposits of $23,461 and $246,895, respectively, as security for its bank loans (see Note 11). These balances are subject to withdrawal restrictions and are not covered by insurance.

 

NOTE 4- PROMISSORY DEPOSITS

 

Promissory deposits are paid to property developers in respect of the real estate projects where the Company has been appointed as sales agent. The balances are unsecured, interest free and recoverable on completion of the respective projects.

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 Xiemen 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.

 

On March 13, 2014, the Company has signed a joint development agreement with Zhongji Pufa Real Estate Co. According to this agreement, the Company has obtained a right to develop the Guangxinglu Project, which located on 182 lane Guangxinglu, Putuo district, Shanghai, PRC. This project covers a site area of approximately 2,502 square meters for the development of one building of apartment.

 

As of March 31, 2014, land use rights included in real estate property under development totaled $32,766,496.

 

NOTE 6 - OTHER RECEIVABLES AND DEPOSITS, NET

 

		March 31,				December 31,
		2014				2013
Advances to staff		$	16,999				56,161
Rental deposits			169,244				7,483
Prepaid expense			60,956				-
Prepaid tax			55,445				-
GuangXinlu Project			8,127,306				-
Other receivables			128,358				140,913
		$	8,558,308			$	204,557

 

Other receivables and deposits as of March 31, 2014 and December 31, 2013 are stated net of allowance for doubtful accounts of $109,235 and $99,437, respectively.

 

NOTE 7 – PROPERTY AND EQUIPMENT, NET

 

		March 31,				December 31,
		2014				2013
Furniture and fixtures		$	245,793			$	423,461
Computer and office equipment			269,873				293,100
Motor vehicles			747,655				878,732
Properties			9,795,377				9,657,427
			11,058,699				11,252,720
Less: Accumulated depreciation			(2,183,632	)			(2,112,986	)
		$	8,875,067			$	9,139,734

 

Depreciation and amortization expense for property and equipment amounted to$215,524 and $152,350 for the three months ended March 31, 2014 and 2013, respectively.

 

 

All properties as of March 31, 2014 and December 31, 2013 were pledged as collateral for the Company’s bank loans (See Note 10).

 

NOTE 8 – INVESTMENT PROPERTIES, NET

 

		March 31,				December 31,
		2014				2013
Investment properties		$	10,064,990			$	10,156,116
Less: Accumulated depreciation			(4,066,004	)			(4,018,297	)
		$	5,998,986			$	6,137,819

 

Depreciation and amortization expense for investment properties amounted to$84,216 and $132,100 for the three months ended March 31, 2014 and 2013, respectively.

 

All investment properties as of March 31, 2014 and December 31, 2013 were pledged as collateral for the Company’s bank loans (See Note 10).

 

NOTE 9 – INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE 

In 2011, the Company invested $4,697,686 to acquire a 49% equity interest in WHYYL to expand its operations to the real estate development business. WHYYL is developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with a 3-year planned construction period. The Company has accounted for this investment using the equity method as the Company has the ability to exercise significant influence over their activities.

 

As of March 31, 2014, the investment in WHYYL was $5,480,505, which included its equity in the net loss of WHYYL, net of income taxes, totaling $229,345 as of March 31, 2014. The following table sets forth the financial information of WHYYL.

 

		Three Months ended March 31,
		2014				2013
Revenues		$	-			$	-
Net loss		$	229,345			$	393,922

 

		March 31,				December 31,
		2014				2013
Current assets		$	57,329,182			$	56,344,599
Non-current assets			853,887				794,446
Total assets			58,183,069				57,139,045
Current liabilities			46,997,800				45,581,987
Total equity		$	11,185,269			$	11,557,058

 

As of March 31, 2014 and December 31, 2013, the Company has a balance of $2,202,783 and $33,086,185 due from WHYYL, which bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. During the three months ended March 31, 2014 and 2013, the Company recorded interest income of $97,318 and $132,063 from WHYYL, respectively.

 

During the three months ended March 31, 2014 and 2013, the Company had no impairment loss for investment in an unconsolidated affiliate.

 

 

NOTE 10 – BANK LOANS

 

In January 2013, the Company obtained a bank loan of $1,300,369 (RMB 8,000,000) from the Bank of China, bearing interest at a rate of 7.56% per annum. The loan is secured by the properties of two unrelated parties and matured on March 1, 2014. As of March 31, 2014 and December 31, 2013, the outstanding balance of this loan was $1,300,369 (RMB 8, 000,000) and $1,312,142. This loan is renewed automatically every year. This loan will mature on March 1, 2015.

 

In August 2012, the Company entered into a 3-year revolving facility line of credit agreement with First Sino Bank. Under the terms of the agreement, the Company could borrow a maximum amount of $5,819,151 (RMB 35,800,000) as of March 31, 2014. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by the People’s Bank of China (“PBOC”). The average interest rate for the three months ended March 31, 2014 was 7.6875% per annum. The facility of credit is secured by all of the Company’s properties included in property and equipment (See Note 7) and the restricted cash of $Nil (See Note 3), guaranteed by a director of the Company, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period not longer than 12 months and are due not later than March 31, 2015. In September 2013, the Company paid $861,494 (RMB 5,300,000) to the bank. As of March 31, 2014 and December 31, 2013, the Company had outstanding loan balances of $4,957,657 (RMB 30,500,000) and $5,002,543 (RMB 30,500,000), respectively, under this facility line of credit.

 

In April 2012, the Company entered into a 3-year non-revolving facility line of credit agreement with First Sino Bank. Under the terms of the agreement, the Company could borrow a maximum amount of $12,190,959 (RMB 75,000,000) as of March 31, 2014. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC. The average interest rate for three months ended March 31, 2014 was 7.6875% per annum. The facility of credit is secured by all of the Company’s investment properties (See Note 8) and guaranteed by a director of the Company, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period no longer than 36 months and are due no later than March 31, 2015. As of March 31, 2014 and December 31, 2013, the Company had outstanding loan balances of $12,190,959 (RMB 75,000,000) and $12,301,332 (RMB 75,000,000), respectively, under this facility line of credit.

 

NOTE 11- LONG TERM BORROWINGS

 

On May 16, 2013, the Company entered into a project finance loan agreement with China CITIC Bank to finance the development of the Company’s Linyi Project. The loan has a 2-year term in the principal amount of $11,379,229 (RMB 70,000,000) at an interest rate of 14.21% per annum, which is 8.06% over the benchmark lending rate from PBOC.

 

		March 31,				December 31,
		2014				2013
Outstanding borrowings		$	11,378,229			$	11,481,245
Less: Current portion of long term borrowings			7,965,760				8,036,871
			3,413,469				3,444,374

 

For the period ended March 31, 2014, total loan interest was approximately $404,212, which was capitalized in the development cost of the Linyi project.

 

The Company pledged its real estate properties in the Linyi project with carrying value of $32,766,496 as of March 31, 2014. The loan is also subject to certain covenants including floating mortgage ratio not more than 50%. Floating mortgage rate is calculated as the outstanding principal and unpaid interest after deduction of guaranteed funds kept in the stipulated bank account divided by the value of pledged properties. In addition, the Company is required to maintain all monies received from sales of any properties relating to the Linyi project in a stipulated bank account as guaranteed funds, which will be classified as restricted cash. As of March 31, 2014, the cash restricted in relation to the borrowings from China CITIC Bank was $23,461 (2013: $246,895).

 

NOTE 12– PROMISSORY NOTES PAYABLE

 

The promissory notes payable consist 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 $15,198,449 and $5,076,547 as of March 31, 2014 and December 31, 2013, respectively.

 

 

The promissory note with a principal of $3,783,681 bearing interest at a rate of 12% per annum, is unsecured and, is unsecured and had a maturity date of January 31, 2013 and is currently in default. The new terms of repayment had not been determined with the debtor and therefore have no fixed term of repayment. As of March 31, 2014 and December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $1,961,565 and $2,308,974, respectively.

 

The promissory note with a principal of $865,292 bearing interest at a rate of 15% per annum, is unsecured. . As of March 31, 2014 and December 31, 2013, the outstanding principal in default and unpaid interest related to this promissory note amounted to $1,193,077 and $1,252,276, respectively.

 

The promissory note with a principal of $816,313bearing interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2013 and December 31, 2012, the outstanding principal and unpaid interest related to this promissory note amounted to $1,076,924 and $1,056,342, respectively.

 

The promissory note with a principal of $1,625,461 bearing interest at a rate of 20% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $1,638,821.

 

The promissory note with a principal of $4,876,384bearing interest at a rate of 26.7% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $4,883,510.

 

The promissory note with a principal of $162,546 bearing interest at a rate of 20% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $162,813.

 

The promissory note with a principal of up to $1,324,751bearing interest at a rate of 36% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $674,566.

 

The promissory note with a principal of $3,250,922 bearing no interest, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $3,250,922.

 

The promissory note with a principal of $300,000 bearing interest at a rate of 15% per annum, is unsecured and has no fixed terms of repayment. As of March 31, 2014 and December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $356,250 and $280,176.

 

At December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $178,779, which has been paid in the first quarter of 2014.

 

During the three months ended March 31, 2014 and 2013, the interest expenses related to these promissory notes were $177,412 and $231,165, respectively.

 

NOTE 13– AMOUNTS DUE TO DIRECTORS

 

		March 31,				December 31,
		2014				2013
Lin Chi-Jung		$	8,457,417			$	10,398,904
Lin Hsin-Hung			43,640				1,484
Lin Chao-Chin			-				39,850
		$	8,501,057			$	10,440,238

 

	(a)	The balance due to Lin Chi-Jung consists of unpaid salaries and reimbursements and advances together with unpaid interest.
		The balances are unsecured, interest-free and have no fixed term of repayment.

The advances together with unpaid interest as of March 31, 2014 and December 31, 2013 were $8,457,417 and $10,398,904, respectively. The balances are unsecured and interest bearing at rates ranging from 18% to 30% per annum.

(b)

The balances due to Lin Chao-Chin and Lin Hsin-Hung are unsecured, interest-free and have no fixed term of repayment.

 

NOTE 14- OTHER PAYABLES AND ACCRUED EXPENSES

 

		March 31,				December 31,
		2014				2013
Accrued staff commission and bonus		$	488,063			$	1,058,882
Rental deposits received			603,515				687,700
Customer deposits			88,708				151,243
Accrued expenses			-				597,453
Guang Xin Lu Project			670,974				-
Other payables			434,706				506,303
		$	2,285,966			$	3,001,581

  

NOTE 15– DEFERRED GOVERNMENT SUBSIDY

 

Deferred government subsidy consists of the cash subsidy provided by the local government.

 

Government subsidy was received in 2012 and as of March 31, 2014 and December 31, 2013, the Company received $5,392,535 and $5,441,360, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project, and are repayable if the Company fails to complete the subsidized property development project before the agreed date. The entire government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets.

 

NOTE 16- 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 three months ended March 31, 2014 and 2013 were $61,494 and $49,858, respectively.

 

As of March 31, 2014, the Company had the following operating lease obligations.

 

		Amount
Within one year		$	90,231
Two to five years			16,753
		$	106,984

 

NOTE 17– STATUTORY RESERVE

 

According to the relevant corporation laws in the PRC, a PRC company is required to transfer at least 10% of its profit after taxes, as determined under accounting principles generally accepted in the PRC, to the statutory reserve until the balance reaches 50% of its registered capital. The statutory reserve can be used to make good on losses or to increase the capital of the relevant company.

 

 

According to the Law of the PRC on Enterprises with Wholly-Owned Foreign Investment, the Company PRC’s subsidiaries are required to make appropriations from after-tax profits as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion reserve and (iii) a staff bonus and welfare fund. A wholly-owned PRC subsidiary is not required to make appropriations to the enterprise expansion reserve but annual appropriations to the general reserve are required to be made at 10% of the profit after tax as determined under PRC GAAP at each year-end, until such fund has reached 50% of its respective registered capital. The staff welfare and bonus reserve is determined by the board of directors. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the stockholders, convert the general reserve into capital. The staff welfare and bonus reserve are used for the collective welfare of the employees of the subsidiary. The enterprise expansion reserve is for the expansion of the subsidiary operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law.

 

In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiary are considered as restricted net assets and are not distributable as cash dividends. As of March 31, 2014 and December 31, 2013, the Company’s statutory reserve fund was $783,101 and $782,987, respectively.

 

NOTE 18 - 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:

 

		Three Months Ended March 31, 2014
		Property
		Brokerage				Real Estate
		Services				Development				Corporate				Total
Net revenues		$	2,721,154			$	-			$	-			$	2,721,154
Cost of revenues			(1,321,918	)			-				-				(1,321,918	)
Gross profit			1,399,236				-				-				1,399,236
Operating expenses			(275,579	)			(355,495	)			-				(631,074	)
General and administrative expenses			(663,011	)			(136,059	)			(34,570	)			(833,640	)
Operating loss			460,646				(491,554	)			(34,570	)			(65,478	)
Other income (expenses)
Interest income			99,704				564				-				100,269
Interest expense			(819,509	)			-				(11,250	)			(830,759	)
Other income, Net			(12,416	)			(511	)			-				(12,926	)
Total other (expenses) income			(732,220	)			54				(11,250	)			(743,416	)
Loss before income taxes and equity in net loss of an unconsolidated affiliate			(271,574	)			(491,500	)			(45,820	)			(808,894	)
Income tax			89,209				121,222				(5,705	)			204,727
Equity in net loss of an unconsolidated affiliate, net of income taxes			(112,379	)			-				-				(112,379	)
Net loss		$	(294,744	)		$	(370,278	)		$	(51,524	)		$	(716,547	)

 

 

		Three Months ended March 31, 2013
		Property
		Brokerage				Real Estate
		Services				Development				Corporate				Total
Net revenues		$	2,113,429			$	-			$	-			$	2,113,429
Cost of revenues			(1,163,939	)			-				-				(1,163,939	)
Gross profit			949,490				-				-				949,490
Operating expenses			(301,433	)			(11,491	)			-				(312,924	)
General and administrative expenses			(811,314	)			(72,436	)			(168,009	)			(1,051,759	)
Operating loss			(163,257	)			(83,927	)			(168,009	)			(415,193	)
Other income (expenses)
Interest income			133,959				23,989				-				157,948
Interest expense			(890,631	)			-				(24,516	)			(915,147	)
Miscellaneous			15,311				-				-				15,311
Total other (expenses) income			(741,361	)			23,989				(24,516	)			(741,888	)
Loss before income taxes and equity in net loss of an unconsolidated affiliate			(904,618	)			(59,938	)			(192,525	)			(1,157,081	)
Income tax benefit			-				15,781				-				15,781
Equity in net loss of an unconsolidated affiliate, net of income taxes			-				(193,022	)			-				(193,022	)
Net loss		$	(904,618	)		$	(237,179	)		$	(192,525	)		$	(1,334,322	)

 

		Property
		Brokerage				Real Estate
		Services				Development				Corporate				Total
As of March 31, 2014
Real estate property under development		$	-			$	32,766,496			$	-			$	32,766,496
Total assets			31,202,802				38,697,292				5,571				69,905,665
As of December 31, 2013
Real estate property under development		$	-			$	31,119,043			$	-			$	31,119,043
Total assets			19,282,576				42,400,822				14,920				61,698,318

 

NOTE 19 - SUBSEQUENT EVENTS

 

Effective April 14, 2014, Mr. Zhang Xi had resigned as an independent director of Sunrise Real Estate Group, Inc. for personal reasons.

 

On August 20, 2014, the Company 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). 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. On August 30, 2014 the Company received the funds from Ace and has issued 20 million shares of common stock to Ace.

 

On November 10, 2014, the Company 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 March 13, 2015, our Board of Directors engaged Kenne Ruan, CPA, P.C. (“Kenne Ruan”) as the Registrant’s certifying accountant to audit the registrant's financial statements, replacing its former certifying accountant, Finesse CPA, P.C. (“Finesse”). Upon receipt of the notice that the Registrant’s acceptance of the proposal from Kenne Ruan to audit its consolidated financial statements for the fiscal year ending December 31, 2014, Finesse resigned as the Registrant’s certifying accountant on March 13, 2015.

 

ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANICAL CONDITION AND RESULTS OF OPERATIONS

 

RISKS ASSOCIATED WITH FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-Q

 

In addition to historical information, this Form 10-Q contains forward-looking statements. Forward-looking statements are based on our current beliefs and expectations, information currently available to us, estimates and projections about our industry, and certain assumptions made by our management. These statements are not historical facts. We use words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", and similar expressions to identify our forward-looking statements, which include, among other things, our anticipated revenue and cost of our agency and investment business.

 

Because we are unable to control or predict many of the factors that will determine our future performance and financial results, including future economic, competitive, and market conditions, our forward-looking statements are not guarantees of future performance. They are subject to risks, uncertainties, and errors in assumptions that could cause our actual results to differ materially from those reflected in our forward-looking statements. We believe that the assumptions underlying our forward-looking statements are reasonable. However, the investor should not place undue reliance on these forward-looking statements. They only reflect our view and expectations as of the date of this Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement in light of new information, future events, or other occurrences.

 

There are several risks and uncertainties, including those relating to our ability to raise money and grow our business and potential difficulties in integrating new acquisitions with our current operations, especially as they pertain to foreign markets and market conditions. These risks and uncertainties can materially affect the results predicted. The Company’s future operating results over both the short and long term will be subject to annual and quarterly fluctuations due to several factors, some of which are outside our control. These factors include but are not limited to fluctuating market demand for our services, and general economic conditions.

 

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Sunrise Real Estate Group, Inc. (“SRRE”). MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying notes.

 

OVERVIEW

 

In October 2004, the former shareholders of Sunrise Real Estate Development Group, Inc. (Cayman Islands) (“CY-SRRE”) and LIN RAY YANG Enterprise Ltd. (“LRY”) acquired a majority of our voting interests in share exchange. Before the completion of the share exchange, SRRE had no continuing operations, and its historical results would not be meaningful if combined with the historical results of CY-SRRE, LRY and their subsidiaries.

 

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 (“GAAP”) 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. The historical financial statements prior to October 5, 2004 are those of CY-SRRE and LRY and their subsidiaries. All equity information and per share data prior to the acquisition have been restated to reflect the stock issuance as a recapitalization of CY-SRRE and LRY.

 

SRRE and its subsidiaries, namely, CY-SRRE, LRY, Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”), Shanghai Shang Yang Real Estate Consultation Company, Ltd. (“SHSY”), Suzhou Gao Feng Hui Property Management Company, Ltd, (“SZGFH”), Suzhou Shang Yang Real Estate Consultation Company (“SZSY”), Suzhou Xin Ji Yang Real Estate Consultation Company, Ltd. (“SZXJY”), Linyi Shang Yang Real Estate Development Company Ltd (“LYSY”), Shangqiu Shang Yang Real Estate Consultation Company, Ltd., (“SQSY”), Wuhan Gao Feng Hui Consultation Company Ltd.(WHGFH), Sanya Shang Yang Real Estate Consultation Company, Ltd. (“SYSH”), Shanghai Rui Jian Design Company, Ltd., (“SHRJ”), and Wuhan Yuan Yu Long Real Estate Development Company, Ltd. (“WHYYL”) are sometimes hereinafter collectively referred to as “the Company,” “our,” or “us”.

 

The principal activities of the Company are real estate agency sales, real estate marketing services, real estate investments, property leasing services, property management services, and real estate development in the PRC.

 

 

RECENT DEVELOPMENTS

 

Our major business was agency sales, whereby our Chinese subsidiaries contracted with property developers to market and sell their newly developed property units. For these services we earned a commission fee calculated as a percentage of the sales prices. We have focused our sales on the whole China market, especially in secondary cities. To expand our agency business, we have established subsidiaries and branches in Shanghai, Suzhou, Yangzhou, Chongqing, Quanjiao, Hainan, Shangqiu, Chengdu, Wuhan, Kunshan and Linyi.

 

In mid-2011, we established a project company in Wuhan in which we have a 49% ownership. . The Wuhan project was supposed to be transferred from the construction contractor, Hubei Fifth Constructions Co. (“HFCC”), on December 31, 2014, but because of a dispute between the Company and HFCC, the transfer was delayed and is currently under court review. We commenced the construction of Phase 1 of the project in the third quarter of 2012 and the pre-sale of Phase 1 in the first quarter of 2013. We began Phase 2 construction of the project in the second quarter of 2013 and the pre-sale of Phase 2 was started in mid-August. The Wuhan project is planned to include seven residential buildings with three buildings being part of Phase 1 and four buildings in Phase 2.

 

In January 2012, we established Linyi Shang Yang Real Estate Development (“LYSY”) in which we have a 24% ownership. During the first quarter of 2012, we acquired approximately 103,385 square meters for the purpose of developing villa-style residential housing. We began construction in mid-2012 and to date have constructed 98 units which encompasses approximately one-third of the gross sales area. Proceeds from sales will be used to finance the construction of the subsequent phases of the project. We are applying for bank loans and other forms of funding, however, there are no assurances we will be able to obtain future financings.

 

In March 13, 2014, the Company has signed a joint development agreement with Zhongji Pufa Real Estate Co. According to this agreement, the Company has the right to develop the Guangxinglu Project, located in the Putuo district, Shanghai, PRC. This project covers a site area of approximately 2,502 square meters for the development of one apartment building.

 

RECENTLY ADOPTED ACCOUNTING STANDARDS

 

In December 2011, the FASB issued ASU No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s financial statements.

 

In February 2013, the FASB issued ASU 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the Company for fiscal years beginning January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

 

NEW ACCOUNTING PRONOUNCEMENTS

 

In March 2013, the FASB issued ASU 2013-05 Topic 830 – Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-02 became effective for the company prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material effect on the Company’s condensed consolidated financial statements.

 

 

The FASB has issued ASU 2013-04 Topic 405 - Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company’s condensed consolidated financial statements.

 

In July 2013, the FASB issued ASU 2013-11 Topic 740 – Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless otherwise provided in the update. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial statements.

 

APPLICATION OF CRITICAL ACCOUNTING POLICIES

 

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements. These financial statements are prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of our assets and liabilities and revenues and expenses, to disclose contingent assets and liabilities on the date of the consolidated financial statements, and to disclose the reported amounts of revenues and expenses incurred during the financial reporting period. The most significant estimates and assumptions include revenue recognition, and the useful lives and impairment of property and equipment, and investment properties, the valuation of real estate property under development, the recognition of government subsidies, and the provisions for income taxes. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe critical accounting policies as disclosed in this Form 10-Q reflect the more significant judgments and estimates used in preparation of our consolidated financial statements. We believe there have been no material changes to our critical accounting policies and estimates.

 

The following critical accounting policies rely upon assumptions and estimates and were used in the preparation of our condensed consolidated financial statements.

 

Revenue Recognition

 

Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer.

 

Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured.

 

Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements.

 

 

The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred.

 

All revenues represent gross revenues less sales and business taxes.

 

Real Estate Property under Development

 

Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs.

 

Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs.

 

Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results.

 

In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets.

 

Government Subsidies

 

Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments.

 

In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue.

 

The government subsidy received by the Company is given to reimburse the land acquisition costs and certain construction costs incurred for its property development project in Linyi. The subsidy is repayable if the Company fails to complete the subsidized property development project by the agreed date. The Company recorded the subsidy received as a deferred government subsidy in consolidated balance sheets.

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

 

The Company recognizes tax benefits that satisfy a greater than 50% probability threshold and provides for the estimated impact of interest and penalties for such tax benefits. The Company did not incur any interest or penalties related to potential underpaid income tax expenses during the three months ended March 31, 2014 and 2013

 

RESULTS OF OPERATIONS

 

We provide the following discussion and analyses of our changes in financial condition and results of operations for the period ended March 31, 2014 with comparisons to the period ended March 31, 2013.

 

Revenue

 

The following table shows the net revenue detail by line of business:

 

		Three months ended March 31
		2014				% to total				2013				% to total				% change
Agency sales			1,670,875				61				953,920				45				75
Property management			1,050,279				39				439,559				21				139
Underwriting sales			0				0				719,950				34				(100	)
Net revenue			2,721,154				100				2,113,429				100				29

 

The net revenue in the first quarter of 2014 was $2,721,154, which was increased by 29% from $2,113,429 in the first quarter of 2013. In the first quarter of 2014, agency sales represented 61% of net revenue, underwriting sales represented 0% and property management represented 39%.The increase in net revenue in the first quarter of 2014 was mainly due to the increase in our agency sales and property management

 

Agency sales

 

Agency sales represented 61% of our net revenue in the first quarter of 2014 and revenue from agency sales increased by 75% compared with same period in 2013. The increase in agency sales was due to taking in more projects.

 

Because of our diverse market locations, the risk of market fluctuations has been decreased on our business operations in agency sales in 2014, and 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.

 

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 of $56.53 million. 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 negotiated 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.

 

We started selling units in the Sovereign Building in January 2005. As of March 1, 2007, we had sold or acquired all of the units in the building, and we achieved the sales target by selling 47,093 square meters with a total sales price of $75.96 million.

 

The Company accounts for its underwriting sales revenue with underwriting rent guarantees in accordance with SFAS No. 66 “Accounting for Sales of Real Estate” (SFAS 66). Under SFAS 66, the deposit method should be 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. Based on this accounting principle, a significant portion of underwriting revenue was deferred. As of March 31, 2014, our entire underwriting obligation has been completed.

 

 

Property Management

 

During 2005 and 2006, SZGFH entered into leasing agreements with certain buyers of the Sovereign Building underwriting project to lease the properties for them. These leasing agreements on these properties are for 62% of the floor space that was sold to third party buyers. In accordance with the leasing agreements, the owners of the properties can have a rental return of 8.5% and 8.8% per annum for a period of 5 years and 8 years, respectively. In regards to the leasing agreements, we have negotiated with the 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%. As of March 31, 2014, 55% of the buyers agreed upon the lowered rate, 3% of the buyers did not agree to a lowered rate and 42% of the buyers agreed to cancel the leasing agreements. 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. As of March 31, 2014, there are no lease commitments.

 

Cost of Revenue

 

The following table shows the cost of revenue detail by line of business:

 

		Three months ended March 31,
		2014				% to total				2013				% to total				% change
Agency sales			670,296				51				538,803				46				24
Property management			651,622				49				460,810				40				41
Underwriting sales			0				0				164,326				14				(100	)
Cost of revenue			1,321,918				100				1,163,939				100				14

 

The cost of revenue in the first quarter of 2014 was $1,321,918, an increase of 14% from $1,163,939 in the same period in 2013. In the first quarter of 2014, cost of agency sales represented 51% of cost of revenue, cost of underwriting sales represented 0% and cost of property management represented 49%. The increase in cost of revenue in first quarter of 2014 was mainly due to the increase in our agency sales.

 

Agency sales

 

The cost of revenue for agency sales in the first quarter, 2014 was $670,296, an increase of 24% from $538,803 in the same period in 2013. This increase was mainly due to the increase in our commissions from the increase in sales of agency sales in the first quarter of 2014.

 

Underwriting Sales

 

There is no underwriting sales business in the first quarter of 2014; also there are no costs of underwriting sales either.

 

Property management

 

The cost of revenue for property management in the first quarter of 2014 was $651,622, increased by 41% from $460,810 in the same period in 2013. This was mainly due to higher business for the property management as a whole.

 

Operating Expenses

 

The following table shows operating expenses detail by line of business:

 

		Three months ended March 31,
		2014				% to total				2013				% to total				% change
Agency sales			259,887				41				279,407				89				(7	)
Property management			15,692				2				22,026				7				(29	)
Property development			355,495				57				11,491				4				2,994
Operating expenses			631,074				100				312,942				100				102

 

 

The operating expenses in the first quarter of 2014 were $631,074, an increase of 102% from $312,942 in the same period of 2013. This was mainly due to the promotion activity of Linyi project. In the first quarter of 2014, agency sales represented 41% of operating expenses, property management represented 2% and property development represented 57% of operating expenses.

 

Agency sales

 

The operating expenses for agency sales in the first quarter of 2014 were $259,887 which decreased by 7% from $279,407 in the same period in 2013.

 

Property management

 

The operating expenses for property management in the first quarter of 2014 were $15,692 which decreased 29% from $22,026 in the same period in 2013.

 

Real estate development

 

The operating expenses for real estate development in the first quarter of 2014 were $355,495 which increased 2,994% from $11,491 in the same period in 2013. This was mainly due to the promotion activity of Linyi project.

 

General and Administrative Expenses

 

The general and administrative expenses in the first quarter of 2014 were $833,640, decreased by 21% from $1,051,759 in the same period in 2013. This decrease was mainly due to a decrease in staff cost, office expense and so on.

 

Operating loss

 

The operating loss in the first quarter of 2014 was$65,478, decreased by 84% from $415,193 in the same period in 2013. This decrease was mainly due to the increase of revenue and decrease in general and administrative expenses.

 

Interest income

 

The interest income in the first quarter of 2014 was $100,269, decreased by 37% from $157,948 in the same period in 2013. This decrease was mainly due to the decrease in lending to WHYYL.

 

Interest Expenses

 

Interest expenses in the first quarter of 2014 were $830,759 decreased by 9% from $915,147 in the same period in 2013. The interest expenses were mainly incurred for bank loans, promissory notes payable and amount due to directors. This decrease was mainly due to the capitalized interest expenses of Linyi project.

 

Major Related Party Transaction

 

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.

Amount due to directors

 

The total amount due to directors for March 31, 2014 was $8,501,057. The amounts due are as follows:

 

Amount due to Lin Chi-Jung 

The balances are unsecured, interest-free and have no fixed term of repayment.

The advances together with unpaid interest as of March 31, 2014 and December 31, 2013 were $8,501,057 and $10,440,238, respectively. The balances are unsecured and interest bearing at rates ranging from 18% to 36% per annum.

Amount due to Lin Hsin Hung

 

The amount of $43,640 represents the salary payable to Lin Hsin Hung.

 

Amount due from related company

 

The amount of $2,202,783 is due from WHYYL, our Wuhan project development company and $8,402 is due from SHDEW, Shanghai Daerwei.

 

Amount due to affiliate

 

A balance of $45,513, $3,972 and $20,156 is due to SZBFND, SHXXY and SHXG, respectively.

 

LIQUIDITY AND CAPITAL RESOURCES

 

In the first quarter of 2014, our principal sources of cash were revenues from our agency sales and property management business. Most of our cash resources were used to fund our property development investment and revenue related expenses, such as salaries and commissions paid to the sales force, daily administrative expenses and the maintenance of regional offices.

 

We ended the period with a cash position of $3,227,632.

 

The Company’s operating activities used cash in the amount of $7,988,203, which was primarily attributable to the other receivables and deposits.

 

The Company’s investing activities used cash resources of $42,978, which was primarily attributable to the acquisition of property, plant and equipment and long-term investments.

 

The Company’s financing activities obtained cash resources of $7,959,599, which was primarily attributable to funds received from promissory notes..

 

The potential cash needs for 2014 will be the repayments of our bank loans and promissory notes, the rental guarantee payments and promissory deposits for various property projects as well as our development projects in Wuhan and Linyi. 

Capital Resources 

We currently have four bank loans payable, including an $1,300,369 (RMB 8,000,000) loan and$11,379,229 (RMB 70,000,000) loan. Both of the loans were due on March 1, 2015 and May 25, 2015, and can be extended automatically for another years and both have been extended for another year to 2016. Another two loan (RMB 30,500,000) and (RMB 75,000,000) , both were due on March 11, 2015 and have been extended for another year to 2016.

As of March 31, 2014, the Company had a working capital deficit of $10,173,723, an accumulated deficit from recurring net losses of $15,410,688 and short-term debt obligations of $50,182,892. These factors raise substantial doubts about the Company’s ability to continue as a going concern.

Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on a timely basis for the next 12 months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed, including advances from affiliates. We have been able to secure new bank lines of credit and secure additional loans from affiliates to fund our operations to date. However, there is no assurance that the Company will be able to obtain additional financing on acceptable terms and any financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our shareholders in the case of equity financing. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing or incurs significant unplanned cash outlays, the Company may be required to suspend operations or cease business entirely.

 

 

OFF BALANCE SHEET ARRANGEMENTS

 

The Company has no off-balance sheet arrangements.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

A smaller reporting company is not required to provide the information required by this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

A.	Material weaknesses

 

As discussed in Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2013, we identified one material weakness in the design and operation of our internal controls. The material weakness is related to the Company’s accounting department personnel having limited knowledge and experience in U.S. GAAP. In response to the above identified material weakness and to continue strengthening the Company’s internal control over financial reporting, we are going to undertake the following remediation initiatives:

 

·

hiring additional personnel with sufficient knowledge and experience in U.S. GAAP; and

·

providing ongoing training course in U.S. GAAP to existing personnel, including our Chief Financial Officer and Financial Controller.

 

Since the first quarter of 2014, additional qualified accounting personnel have been hired and put into place to assist preparation of financial information, as required for interim and annual reporting, in accordance with generally accepted accounting principles in the U.S. As the newly implemented remediation activities have not operated for a sufficient period of time to demonstrate operating effectiveness, we will continue to monitor and assess our remediation activities to ensure that the aforementioned material weakness is remediated.

 

B.	Evaluation of Disclosure Controls and Procedures

 

The Company maintains disclosure controls and procedures and internal controls designed to ensure that information required to be disclosed in the Company’s filings under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. The Company’s management, with the participation of its principal executive and financial officers, has evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation and solely due to the unremediated material weakness  described above, the Company’s principal executive and financial officers have concluded that such disclosure controls and procedures were ineffective for the purpose for which they were designed as of the end of such period. As a result of this conclusion, the financial statements for the period covered by this report were prepared with particular attention to the unremediated material weakness previously disclosed. Accordingly, management believes that the condensed consolidated financial statements included in this report fairly present, in all material respects, the Company’s financial condition, results of operations and cash flows as of and for the periods presented, in accordance with generally accepted accounting principles, notwithstanding the unremediated weaknesses.

 

C.	Changes in Internal Control over Financial Reporting

 

Since the first quarter of 2014, we put into place additional qualified accounting personnel to address the aforementioned material weakness. This action strengthened our internal controls over financial reporting.

 

 

Except for the above, there was no change in the Company’s internal control over financial reporting that was identified in connection with such evaluation that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There have been no material developments in any legal proceedings since the disclosures contained in the Registrant’s Form 10-K for the year ended December 31, 2013.

 

ITEM 1A. RISK FACTORS

 

Not applicable.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit
Number		Description
31.1*		Section 302 Certification by the Corporation's Chief Executive Officer.
31.2*		Section 302 Certification by the Corporation's Chief Financial Officer.
32.1 and 32.2*		Section 1350 Certification by the Corporation's Chief Executive Officer and Corporation's Chief Financial Officer.
101		XBRL data files of Financial Statements and Notes contained in this Quarterly Report on Form 10-Q.

 

* Filed herewith

 

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

SUNRISE REAL ESTATE GROUP, INC.
	Date: March 17, 2016
	By:	/s/ Lin, Chi-Jung
	Lin, Chi-Jung, Chief Executive Officer
	Date: March 17, 2016
	By:	/s/ Mi, Yong Jun
	Mi, Yong Jun, Chief Financial Officer

 

 

EXHIBIT 31.1

Rules 13a−15(e) and 15d−15(e) and Rules 13a−15(f) Certification of Chief Executive Officer

 

I, Lin Chi−Jung, certify that:

 

1. I have reviewed this Quarterly Report for the period ended March 31, 2014 on Form 10−Q/A of SUNRISE REAL ESTATE GROUP, INC.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

 

4. The small business issuer's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a−15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the small business issuer and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of theperiod covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

 

5. The small business issuer's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

 

	Date: March 17, 2016
	By:	/s/ Lin, Chi-Jung
	Lin, Chi-Jung, Chief Executive Officer

 

 

EXHIBIT 31.2

Rules 13a−15(e) and 15d−15(e) and Rules 13a−15(f) Certification of Chief Financial Officer

 

I, Mi, Yong Jun, certify that:

 

1. I have reviewed this Quarterly Report for the period ended March 31, 2014 on Form 10-Q/Aof SUNRISE REAL ESTATE GROUP, INC.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statement were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

 

4. The small business issuer other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a−15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the small business issuer and have:

 

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter that materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

 

5. The small business issuer's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's I board of directors (or persons performing the equivalent functions):

 

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

 

	Date: March 17, 2016
	By:	/s/ Mi, Yong Jun
	Mi, Yong Jun, Chief Financial Officer

 

EXHIBIT 32.1 and 32.2

Section 1350 Certification

 

In connection with this Quarterly Report of SUNRISE REAL ESTATE GROUP, INC. (the "Company") on Form 10−Q/A for the three months ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the"Report"), the undersigned Chief Executive Officer and Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes−Oxley Act of 2002 that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request and for the periods indicated.

 

	Date: March 17, 2016
	By:	/s/ Lin, Chi-Jung
	Lin, Chi-Jung, Chief Executive Officer
	Date: March 17, 2016
	By:	/s/ Mi, Yong Jun
	Mi, Yong Jun, Chief Financial Officer

  

 

v3.3.1.900

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2014	Feb. 26, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	true
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	SUNRISE REAL ESTATE GROUP INC
Entity Central Index Key	0001083490
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	SRRE
Entity Common Stock, Shares Outstanding		68,691,925
Amendment Description	Sunrise Real Estate Group, Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Amendment No. 1”) to amend and restate the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 (the “Quarterly Report”), as originally filed with the Securities and Exchange Commission (the “Commission”) on January 13, 2016 (the “Original Filing Date”). This Amendment No. 1 is being filed to correct typographic errors and inaccurate information contained in the financial statements, including notes number 1, 9 to 12 and 18, and Results of Operations under Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations. Except as described above, no other changes have been made to the Quarterly Report. This Form 10-Q/A does not reflect events occurring after the filing of the Quarterly Report or modify or update those disclosures. Accordingly, this Form 10-Q/A should be read in conjunction with our filings made with the SEC subsequent to the filing of the Quarterly Report, including any amendments to those filings.

v3.3.1.900

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 3,227,632	$ 3,503,510
Restricted cash (Note 3)	23,461	246,895
Accounts receivable	1,190,598	1,289,469
Promissory deposits (Note 4)	747,712	754,482
Real estate property under development (Note 5)	32,766,496	31,119,043
Amount due from an unconsolidated affiliate (Note 9)	2,211,185	3,086,185
Other receivables and deposits, net (Note 6)	8,558,308	204,557
Total current assets	48,725,392	40,204,141
Property and equipment, net (Note 7)	8,875,067	9,139,734
Investment properties, net (Note 8)	5,998,986	6,137,819
Deferred tax assets (Note 15)	679,423	469,400
Investment in an unconsolidated affiliate (Note 9)	5,480,505	5,642,909
Other investments	146,292	104,315
Total assets	69,905,665	61,698,318
Current liabilities
Bank loans (Note 10)	18,448,985	18,616,018
Current portion of long-term borrowings (Note 11)	7,964,760	8,036,871
Promissory notes payable (Note 12)	15,198,449	5,076,547
Accounts payable	748,125	489,582
Amounts due to directors (Note 13)	8,501,057	10,440,238
Amount due to an affiliate	69,641	0
Customer deposits	5,016,220	3,168,369
Other payables and accrued expenses (Note 14)	2,285,966	3,001,581
Other taxes payable	174,895	190,036
Dividends payables	355,924	0
Income taxes payable	135,093	190,152
Total current liabilities	58,899,115	49,209,394
Long term bank loan (Note 11)	3,413,469	3,444,374
Deferred government subsidy (Note 15)	5,392,535	5,441,360
Total liabilities	$ 67,705,119	$ 58,095,128
Commitments and contingencies (Note 16)
Shareholders' equity
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 28,691,925 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	$ 286,919	$ 286,919
Additional paid-in capital	4,570,008	4,570,008
Statutory reserve (Note 17)	783,101	782,987
Accumulated losses	(15,410,688)	(14,668,376)
Accumulated other comprehensive income	120,242	172,214
Total deficit of Sunrise Real Estate Group, Inc.	(9,650,418)	(8,856,248)
Non-controlling interests	11,850,964	12,459,438
Total shareholders’ equity	2,200,546	3,603,190
Total liabilities and shareholders’ equity	$ 69,905,665	$ 61,698,318

v3.3.1.900

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Mar. 31, 2014	Dec. 31, 2013
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	28,691,925	28,691,925
Common stock, shares outstanding	28,691,925	28,691,925

v3.3.1.900

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net revenues	$ 2,721,154	$ 2,113,429
Cost of revenues	(1,321,918)	(1,163,939)
Gross profit	1,399,236	949,490
Operating expenses	(631,074)	(312,924)
General and administrative expenses	(833,640)	(1,051,759)
Operating loss	(65,478)	(415,193)
Other income (expenses)
Interest income	100,269	157,948
Interest expense	(830,759)	(915,147)
Other income, net	(12,926)	15,311
Total other expenses	(743,416)	(741,888)
Income (loss) before income taxes and equity in net loss of an unconsolidated affiliate	(808,894)	(1,157,081)
Income tax benefit (expense)	204,726	15,781
Equity in net gain (loss) of an unconsolidated affiliate, net of income taxes	(112,379)	(193,022)
Net loss	(716,547)	(1,334,322)
Less: Net income (loss) attributable to non-controlling interests	334,420	130,069
Net loss attributable to shareholders of Sunrise Real Estate Group, Inc.	$ (382,127)	$ (1,204,253)
Loss per share - basic and fully diluted (in dollars per share)	$ (0.04)	$ (0.04)
Weighted average common shares outstanding - Basic and fully diluted (in shares)	28,691,925	28,691,925

v3.3.1.900

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net loss	$ (716,547)	$ (1,334,322)
Other comprehensive income (loss) - Foreign currency translation adjustment	(326,027)	26,866
Total comprehensive loss	(1,042,574)	(1,307,456)
Less: Comprehensive loss (income) attributable to non-controlling interests	608,475	98,752
Total comprehensive loss attributable to stockholders of Sunrise Real Estate Group, Inc.	$ (434,099)	$ (1,208,704)

v3.3.1.900

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities
Net loss	$ (716,547)	$ (1,334,322)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	299,740	284,450
Bad debts	(1,459)	0
Loss (Gain) on disposal of property, plant and equipment	14,133	0
Equity in net loss of an unconsolidated affiliate	112,379	193,022
Changes in assets and liabilities
Accounts receivable	87,774	992,564
Promissory deposits	0	(11,155)
Real estate property under development	(1,937,124)	(1,822,566)
Customer Deposits	1,886,459	0
Amount due from unconsolidated affiliates	851,906	0
Other receivables and deposits	(8,399,463)	(359,839)
Deferred tax assets	(215,398)	(15,781)
Accounts payable	264,363	(77,759)
Amount due to an affiliate	70,018	0
Other payables and accrued expenses	(692,420)	(1,374,024)
Deposits received from underwriting sales	0	(551,625)
Interest payable on promissory notes	142,187	114,734
Interest payable on amounts due to directors	312,399	(665,718)
Other taxes payable	(13,509)	(59,843)
Income taxes payable	(53,641)	(144,829)
Net cash used in operating activities	(7,988,203)	(4,832,691)
Cash flows from investing activities
Purchases of property and equipment	(42,978)	(50,748)
Decrease in restricted cash	0	478,057
Repayment of advances to an unconsolidated affiliate	0	318,884
Net cash used in investing activities	(42,978)	746,193
Cash flows from financing activities
Restricted cash	222,419	0
Bank loan repayments	(1,666,966)	0
New bank loans	1,676,011	1,274,819
Advances from directors	46,389	4,345,689
Repayments of advances from directors	(2,297,969)	(1,950,536)
Proceeds from new promissory notes	10,579,673	956,114
Repayments of promissory notes	(599,958)	0
Dividend paid to non-controlling interests	0	(79,233)
Net cash provided by financing activities	7,959,599	4,546,853
Effect of exchange rate changes on cash and cash equivalents	(204,296)	71,822
Net decrease in cash and cash equivalents	(275,878)	532,177
Cash and cash equivalents at beginning of year	3,503,510	934,123
Cash and cash equivalents at end of year	3,227,632	1,466,300
Supplemental disclosure of cash flow information
Income taxes paid	56,842	144,830
Interest paid	$ 933,498	$ 1,429,348

v3.3.1.900

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2014
Organization and Description Of Business [Abstract]
Business Description and Basis of Presentation [Text Block]	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS   Sunrise Real Estate Group, Inc. “SRRE” was incorporated in Texas on October 10, 1996 under the name of Parallax Entertainment, Inc. SRRE together with its subsidiaries and equity investment described below is collectively referred to as “the Company”, “our” or “us”. The Company is primarily engaged in the provision of property brokerage services, which include property marketing, leasing and management services; and real estate development in the People’s Republic of China (the “PRC”).   As of March 31, 2014, the Company has the following major subsidiaries and equity investments.     Company Name     Date of Incorporation     Place of Incorporation   % of Ownership held by the Company     Relationship with the 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 Real Estate consultation Company Limited (“SHSY”)   February 5, 2004   PRC   100%   Subsidiary   Property brokerage services Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”)   January 10, 2005   PRC   100%   Subsidiary   Property management and leasing services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)   November 24, 2006   PRC   38.5% *  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   24% **  Subsidiary   Real estate development Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)   October 20, 2010   PRC   100%   Subsidiary   Property brokerage services Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)   November 10, 2010   PRC   60%   Subsidiary   Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)   September 18, 2008   PRC   100%   Subsidiary   Property brokerage services Shanghai 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 Putian Xin Ji Yang Real Estate Consultation Company Limited (“PTXJY”)   June 5, 2012   PRC   55%   Subsidiary   Property brokerage services 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   40%   Equity investment   Property brokerage services Xin Guang Investment Management and Consulting Company Limited (“XG”)   December 17, 2012   PRC   49%   Equity investment   Investment management and consulting Shanghai Daerweiei Trading Company Limited (“SHDEW”)   June 6, 2013   PRC   30%   Equity investment   Import and export trading   * The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. ** The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. *** The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY.   The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from the audited consolidated financial statements and the accompanying unaudited condensed consolidated financial statements, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations and the Company believes that the disclosures made are adequate to make the information not misleading.   In the opinion of management, these condensed consolidated financial statements reflect all adjustments which are of a normal recurring nature and which are necessary to present fairly the financial position of Sunrise Real Estate as of March 31, 2014 and the results of operations for the three months ended March 31, 2014 and 2013, and the cash flows for the three months ended March 31, 2014 and 2013. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results which may be expected for the entire fiscal year.   The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

v3.3.1.900

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of Accounting and Principles of Consolidation   The condensed consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation.   Investments in business entities, in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method.   Going Concern   The Company’s condensed consolidated financial statements have been prepared on a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As of March 31, 2014, the Company had a working capital deficiency, accumulated deficit from recurring net losses, and significant short-term debt obligations currently in default or maturing in less than one year. These factors raise substantial doubts about the Company’s ability to continue as a going concern.   Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on timely basis for the next twelve months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed. There is no assurance that the Company will be able to obtain additional financing on acceptable terms and any financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our shareholders in the case of equity financing. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing, or incurs significant unplanned cash outlays, the Company may be required to suspend operations or cease business entirely.   The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.   Foreign Currency Translation and Transactions   The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records are maintained and the financial statements prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliate in China is Renminbi (“RMB”) and their financial records and statements are maintained and prepared in RMB.   Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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 period-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations.   The financial statements of the Company’s operations based outside of the United States have been translated into U.S. dollars in accordance with ASC830. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into U.S. dollars, period-end exchange rates are applied to the condensed consolidated balance sheets, while average exchange rates as to revenues and expenses are applied to consolidated statements of operations. The effect of foreign currency translation adjustments is included as a component of accumulated other comprehensive income in shareholders’ equity.   The exchange rates as of March 31, 2014 and December 31, 2013 are $1: RMB 6.1521 and $1: RMB 6.0969, respectively.   The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation.   Real Estate Property under Development   Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs.   Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs.   Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results.   In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets.   For the three months ended March 31, 2014 and 2013, the Company had not recognized any impairment for real estate property under development.   Long Term Investments   The Company accounts for long term investments in equities as follows.   Investment in Unconsolidated Affiliates   Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.   When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company 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. The Company recorded any impairment losses in any of the periods reported.   Other Investments   Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the cost method. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the cost method and any decline in value is included in impairment of cost of the investment.   Government Subsidies   Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments.   In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue.   Government subsidy was received in 2012 and as of March 31, 2014 and December 31, 2013, the Company received $5,392,535 and $5,441,360, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date. The Company recorded the subsidy received as a deferred government subsidy in consolidated balance sheets.   Revenue Recognition   Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer.   Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured.   Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements.   The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred.   All revenues represent gross revenues less sales and business taxes.   Net Earnings (Loss) per Common Share   The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive.   Recently Adopted Accounting Standards   In December 2011, the FASB issued ASU No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.   In February 2013, the FASB issued ASU 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the company on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.   New Accounting Pronouncements   In March 2013, the FASB issued ASU 2013-05 Topic 830 – Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-02 became effective for the company prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material effect on the Company’s condensed consolidated financial statements.   The FASB has issued ASU 2013-04 Topic 405 - Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company’s condensed consolidated financial statements.

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RESTRICTED CASH	3 Months Ended
	Mar. 31, 2014
Restricted Cash [Abstract]
Cash And Cash Equivalents Restricted Cash And Cash Equivalents [Text Block]	NOTE 3– RESTRICTED CASH   The Company is required to maintain certain deposits with the bank that provides secured loans to the Company. As of March 31, 2014 and December 31, 2013, the Company held cash deposits of $23,461 and $246,895, respectively, as security for its bank loans (see Note 11). These balances are subject to withdrawal restrictions and are not covered by insurance.

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PROMISSORY DEPOSITS	3 Months Ended
	Mar. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets Disclosure [Text Block]	NOTE 4- PROMISSORY DEPOSITS   Promissory deposits are paid to property developers in respect of the real estate projects where the Company has been appointed as sales agent. The balances are unsecured, interest free and recoverable on completion of the respective projects.

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REAL ESTATE PROPERTY UNDER DEVELOPMENT	3 Months Ended
	Mar. 31, 2014
Real Estate Held For Development and Sale [Abstract]
Real Estate Held For Development and Sale [Text Block]	NOTE 5 – REAL ESTATE PROPERTY UNDER DEVELOPMENT   Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiemen 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.   On March 13, 2014, the Company has signed a joint development agreement with Zhongji Pufa Real Estate Co. According to this agreement, the Company has obtained a right to develop the Guangxinglu Project, which located on 182 lane Guangxinglu, Putuo district, Shanghai, PRC. This project covers a site area of approximately 2,502 square meters for the development of one building of apartment.   As of March 31, 2014, land use rights included in real estate property under development totaled $32,766,496.

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OTHER RECEIVABLES AND DEPOSITS, NET	3 Months Ended
	Mar. 31, 2014
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	NOTE 6 - OTHER RECEIVABLES AND DEPOSITS, NET       March 31,   December 31,       2014   2013                   Advances to staff   $ 16,999     56,161   Rental deposits     169,244     7,483   Prepaid expense     60,956     -   Prepaid tax     55,445     -   GuangXinlu Project     8,127,306     -   Other receivables     128,358     140,913       $ 8,558,308   $ 204,557     Other receivables and deposits as of March 31, 2014 and December 31, 2013 are stated net of allowance for doubtful accounts of $109,235 and $99,437, respectively.

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PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 7 – PROPERTY AND EQUIPMENT, NET       March 31,   December 31,       2014   2013                   Furniture and fixtures   $ 245,793   $ 423,461   Computer and office equipment     269,873     293,100   Motor vehicles     747,655     878,732   Properties     9,795,377     9,657,427         11,058,699     11,252,720   Less: Accumulated depreciation     (2,183,632)     (2,112,986)       $ 8,875,067   $ 9,139,734     Depreciation and amortization expense for property and equipment amounted to$215,524 and $152,350 for the three months ended March 31, 2014 and 2013, respectively.   All properties as of March 31, 2014 and December 31, 2013 were pledged as collateral for the Company’s bank loans (See Note 10).

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INVESTMENT PROPERTIES, NET	3 Months Ended
	Mar. 31, 2014
Real Estate [Abstract]
Real Estate Disclosure [Text Block]	NOTE 8 – INVESTMENT PROPERTIES, NET       March 31,   December 31,       2014   2013                   Investment properties   $ 10,064,990   $ 10,156,116   Less: Accumulated depreciation     (4,066,004)     (4,018,297)       $ 5,998,986   $ 6,137,819     Depreciation and amortization expense for investment properties amounted to$84,216 and $132,100 for the three months ended March 31, 2014 and 2013, respectively.   All investment properties as of March 31, 2014 and December 31, 2013 were pledged as collateral for the Company’s bank loans (See Note 10).

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INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE	3 Months Ended
	Mar. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	NOTE 9 – INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE   In 2011, the Company invested $4,697,686 to acquire a  49% equity interest in WHYYL to expand its operations to the real estate development business. WHYYL is developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with a 3-year planned construction period. The Company has accounted for this investment using the equity method as the Company has the ability to exercise significant influence over their activities.   As of March 31, 2014, the investment in WHYYL was $5,480,505, which included its equity in the net loss of WHYYL, net of income taxes, totaling $229,345 as of March 31, 2014. The following table sets forth the financial information of WHYYL.       Three Months ended March 31,       2014   2013                   Revenues   $ -   $ -                   Net loss   $ 229,345   $ 393,922         March 31,   December 31,       2014   2013                   Current assets   $ 57,329,182   $ 56,344,599   Non-current assets     853,887     794,446   Total assets     58,183,069     57,139,045                   Current liabilities     46,997,800     45,581,987   Total equity   $ 11,185,269   $ 11,557,058     As of March 31, 2014 and December 31, 2013, the Company has a balance of $2,202,783 and $33,086,185 due from WHYYL, which bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. During the three months ended March 31, 2014 and 2013, the Company recorded interest income of $97,318 and $132,063 from WHYYL, respectively.   During the three months ended March 31, 2014 and 2013, the Company had no impairment loss for investment in an unconsolidated affiliate.

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BANK LOANS	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 10 – BANK LOANS   In January 2013, the Company obtained a bank loan of $1,300,369 (RMB 8,000,000) from the Bank of China, bearing interest at a rate of 7.56% per annum. The loan is secured by the properties of two unrelated parties and matured on March 1, 2014. As of March 31, 2014 and December 31, 2013, the outstanding balance of this loan was $1,300,369 (RMB 8, 000,000) and $1,312,142. This loan is renewed automatically every year. This loan will mature on March 1, 2015.   In August 2012, the Company entered into a 3-year revolving facility line of credit agreement with First Sino Bank. Under the terms of the agreement, the Company could borrow a maximum amount of $5,819,151 (RMB 35,800,000) as of March 31, 2014. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by the People’s Bank of China (“PBOC”). The average interest rate for the three months ended March 31, 2014 was 7.6875% per annum. The facility of credit is secured by all of the Company’s properties included in property and equipment (See Note 7) and the restricted cash of $Nil (See Note 3), guaranteed by a director of the Company, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period not longer than 12 months and are due not later than March 31, 2015. In September 2013, the Company paid $861,494 (RMB 5,300,000) to the bank. As of March 31, 2014 and December 31, 2013, the Company had outstanding loan balances of $4,957,657 (RMB 30,500,000) and $5,002,543 (RMB 30,500,000), respectively, under this facility line of credit.   In April 2012, the Company entered into a 3-year non-revolving facility line of credit agreement with First Sino Bank. Under the terms of the agreement, the Company could borrow a maximum amount of $12,190,959 (RMB 75,000,000) as of March 31, 2014. The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC. The average interest rate for three months ended March 31, 2014 was 7.6875% per annum. The facility of credit is secured by all of the Company’s investment properties (See Note 8) and guaranteed by a director of the Company, and matures on March 31, 2015. Borrowings under this facility are renewable for an additional period no longer than 36 months and are due no later than March 31, 2015. As of March 31, 2014 and December 31, 2013, the Company had outstanding loan balances of $12,190,959 (RMB 75,000,000) and $12,301,332 (RMB 75,000,000), respectively, under this facility line of credit.

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LONG TERM BORROWINGS	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	NOTE 11- LONG TERM BORROWINGS   On May 16, 2013, the Company entered into a project finance loan agreement with China CITIC Bank to finance the development of the Company’s Linyi Project. The loan has a 2-year term in the principal amount of $11,379,229 (RMB 70,000,000) at an interest rate of 14.21% per annum, which is 8.06% over the benchmark lending rate from PBOC.       March 31,   December 31,       2014   2013                   Outstanding borrowings   $ 11,378,229   $ 11,481,245   Less: Current portion of long term borrowings     7,965,760     8,036,871         3,413,469     3,444,374     For the period ended March 31, 2014, total loan interest was approximately $404,212, which was capitalized in the development cost of the Linyi project.   The Company pledged its real estate properties in the Linyi project with carrying value of $32,766,496 as of March 31, 2014. The loan is also subject to certain covenants including floating mortgage ratio not more than 50%. Floating mortgage rate is calculated as the outstanding principal and unpaid interest after deduction of guaranteed funds kept in the stipulated bank account divided by the value of pledged properties. In addition, the Company is required to maintain all monies received from sales of any properties relating to the Linyi project in a stipulated bank account as guaranteed funds, which will be classified as restricted cash. As of March 31, 2014, the cash restricted in relation to the borrowings from China CITIC Bank was $23,461 (2013: $246,895).

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PROMISSORY NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]
Notes Payable Disclosure [Text Block]	NOTE 12– PROMISSORY NOTES PAYABLE   The promissory notes payable consist 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 $15,198,449 and $5,076,547 as of March 31, 2014 and December 31, 2013, respectively.   The promissory note with a principal of $3,783,681 bearing interest at a rate of 12% per annum, is unsecured and, is unsecured and had a maturity date of January 31, 2013 and is currently in default. The new terms of repayment had not been determined with the debtor and therefore have  no fixed term of repayment. As of March 31, 2014 and December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $1,961,565 and $2,308,974, respectively.   The promissory note with a principal of $865,292 bearing interest at a rate of 15% per annum, is unsecured. . As of March 31, 2014 and December 31, 2013, the outstanding principal in default and unpaid interest related to this promissory note amounted to $1,193,077 and $1,252,276, respectively.   The promissory note with a principal of $816,313bearing interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2013 and December 31, 2012, the outstanding principal and unpaid interest related to this promissory note amounted to $1,076,924 and $1,056,342, respectively.   The promissory note with a principal of $1,625,461 bearing interest at a rate of 20% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $1,638,821.   The promissory note with a principal of $4,876,384bearing interest at a rate of 26.7% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $4,883,510.   The promissory note with a principal of $162,546 bearing interest at a rate of 20% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $162,813.   The promissory note with a principal of up to $1,324,751bearing interest at a rate of 36% per annum, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $674,566.   The promissory note with a principal  of $3,250,922 bearing no interest, is unsecured and has no fixed term of repayment. As of March 31, 2014, the outstanding principal and unpaid interest related to this promissory note amounted to $3,250,922.   The promissory note with a principal of $300,000 bearing interest at a rate of 15% per annum, is unsecured and has no fixed terms of repayment. As of March 31, 2014 and December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $356,250 and $280,176.   At December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $178,779, which has been paid in the first quarter of 2014.   During the three months ended March 31, 2014 and 2013, the interest expenses related to these promissory notes were $177,412 and $231,165, respectively.

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AMOUNTS DUE TO DIRECTORS	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 13– AMOUNTS DUE TO DIRECTORS       March 31,   December 31,       2014   2013                   Lin Chi-Jung   $ 8,457,417   $ 10,398,904   Lin Hsin-Hung     43,640     1,484   Lin Chao-Chin     -     39,850       $ 8,501,057   $ 10,440,238     (a) The balance due to Lin Chi-Jung consists of unpaid salaries and reimbursements and advances together with unpaid interest.   The balances are unsecured, interest-free and have no fixed term of repayment.   The advances together with unpaid interest as of March 31, 2014 and December 31, 2013 were $8,457,417 and $10,398,904, respectively. The balances are unsecured and interest bearing at rates ranging from 18% to 30% per annum.    (b) The balances due to Lin Chao-Chin and Lin Hsin-Hung are unsecured, interest-free and have no fixed term of repayment.

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OTHER PAYABLES AND ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2014
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	NOTE 14- OTHER PAYABLES AND ACCRUED EXPENSES       March 31,   December 31,       2014   2013                   Accrued staff commission and bonus   $ 488,063   $ 1,058,882   Rental deposits received     603,515     687,700   Customer deposits     88,708     151,243   Accrued expenses     -     597,453   Guang Xin Lu Project     670,974     -   Other payables     434,706     506,303       $ 2,285,966   $ 3,001,581

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DEFERRED GOVERNMENT SUBSIDY	3 Months Ended
	Mar. 31, 2014
Deferred Government Subsidy [Abstract]
Deferred Government Subsidy [Text Block]	NOTE 15– DEFERRED GOVERNMENT SUBSIDY   Deferred government subsidy consists of the cash subsidy provided by the local government.   Government subsidy was received in 2012 and as of March 31, 2014 and December 31, 2013, the Company received $5,392,535 and $5,441,360, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project, and are repayable if the Company fails to complete the subsidized property development project before the agreed date. The entire government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets.

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COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 16- 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 three months ended March 31, 2014 and 2013 were $61,494 and $49,858, respectively.   As of March 31, 2014, the Company had the following operating lease obligations.       Amount             Within one year   $ 90,231   Two to five years     16,753       $ 106,984

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STATUTORY RESERVE	3 Months Ended
	Mar. 31, 2014
Statutory Reserve [Abstract]
Statutory Reserve Disclosure [Text Block]	NOTE 17– STATUTORY RESERVE   According to the relevant corporation laws in the PRC, a PRC company is required to transfer at least 10% of its profit after taxes, as determined under accounting principles generally accepted in the PRC, to the statutory reserve until the balance reaches 50% of its registered capital. The statutory reserve can be used to make good on losses or to increase the capital of the relevant company.   According to the Law of the PRC on Enterprises with Wholly-Owned Foreign Investment, the Company PRC’s subsidiaries are required to make appropriations from after-tax profits as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion reserve and (iii) a staff bonus and welfare fund. A wholly-owned PRC subsidiary is not required to make appropriations to the enterprise expansion reserve but annual appropriations to the general reserve are required to be made at 10% of the profit after tax as determined under PRC GAAP at each year-end, until such fund has reached 50% of its respective registered capital. The staff welfare and bonus reserve is determined by the board of directors. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the stockholders, convert the general reserve into capital. The staff welfare and bonus reserve are used for the collective welfare of the employees of the subsidiary. The enterprise expansion reserve is for the expansion of the subsidiary operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law.   In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiary are considered as restricted net assets and are not distributable as cash dividends. As of March 31, 2014 and December 31, 2013, the Company’s statutory reserve fund was $783,101 and $782,987, respectively.

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SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 18 - 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:       Three Months Ended March 31, 2014       Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   Net revenues   $ 2,721,154   $ -   $ -   $ 2,721,154   Cost of revenues     (1,321,918)     -     -     (1,321,918)   Gross profit     1,399,236     -     -     1,399,236                               Operating expenses     (275,579)     (355,495)     -     (631,074)   General and administrative expenses     (663,011)     (136,059)     (34,570)     (833,640)   Operating loss     460,646     (491,554)     (34,570)     (65,478)                               Other income (expenses)                           Interest income     99,704     564     -     100,269   Interest expense     (819,509)     -     (11,250)     (830,759)   Other income, Net     (12,416)     (511)     -     (12,926)   Total other (expenses) income     (732,220)     54     (11,250)     (743,416)                               Loss before income taxes and equity in net loss of an unconsolidated affiliate     (271,574)     (491,500)     (45,820)     (808,894)                               Income tax     89,209     121,222     (5,705)     204,727   Equity in net loss of an unconsolidated affiliate, net of income taxes     (112,379)     -     -     (112,379)   Net loss   $ (294,744)   $ (370,278)   $ (51,524)   $ (716,547)         Three Months ended March 31, 2013       Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   Net revenues   $ 2,113,429   $ -   $ -   $ 2,113,429   Cost of revenues     (1,163,939)     -     -     (1,163,939)   Gross profit     949,490     -     -     949,490                               Operating expenses     (301,433)     (11,491)     -     (312,924)   General and administrative expenses     (811,314)     (72,436)     (168,009)     (1,051,759)   Operating loss     (163,257)     (83,927)     (168,009)     (415,193)                               Other income (expenses)                           Interest income     133,959     23,989     -     157,948   Interest expense     (890,631)     -     (24,516)     (915,147)   Miscellaneous     15,311     -     -     15,311   Total other (expenses) income     (741,361)     23,989     (24,516)     (741,888)                               Loss before income taxes and equity in net loss of an unconsolidated affiliate     (904,618)     (59,938)     (192,525)     (1,157,081)                               Income tax benefit     -     15,781     -     15,781   Equity in net loss of an unconsolidated affiliate, net of income taxes     -     (193,022)     -     (193,022)   Net loss   $ (904,618)   $ (237,179)   $ (192,525)   $ (1,334,322)          Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   As of March 31, 2014                           Real estate property under development   $ -   $ 32,766,496   $ -   $ 32,766,496   Total assets     31,202,802     38,697,292     5,571     69,905,665                               As of December 31, 2013                           Real estate property under development   $ -   $ 31,119,043   $ -   $ 31,119,043   Total assets     19,282,576     42,400,822     14,920     61,698,318

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SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 19 - SUBSEQUENT EVENTS   Effective April 14, 2014, Mr. Zhang Xi had resigned as an independent director of Sunrise Real Estate Group, Inc. for personal reasons.   On August 20, 2014, the Company 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). 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. On August 30, 2014 the Company received the funds from Ace and has issued 20 million shares of common stock to Ace.   On November 10, 2014, the Company 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 March 13, 2015, our Board of Directors engaged Kenne Ruan, CPA, P.C. (“Kenne Ruan”) as the Registrant’s certifying accountant to audit the registrant's financial statements, replacing its former certifying accountant, Finesse CPA, P.C. (“Finesse”). Upon receipt of the notice that the Registrant’s acceptance of the proposal from Kenne Ruan to audit its consolidated financial statements for the fiscal year ending December 31, 2014, Finesse resigned as the Registrant’s certifying accountant on March 13, 2015.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]
Basis Of Accounting, Policy [Policy Text Block]	Basis of Accounting and Principles of Consolidation   The condensed consolidated financial statements include the financial statements of Sunrise Real Estate Group, Inc. and its subsidiaries. All significant inter-company accounts and transactions have been eliminated on consolidation.   Investments in business entities, in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method.
Going Concern, Policy [Policy Text Block]	Going Concern   The Company’s condensed consolidated financial statements have been prepared on a going concern, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. As of March 31, 2014, the Company had a working capital deficiency, accumulated deficit from recurring net losses, and significant short-term debt obligations currently in default or maturing in less than one year. These factors raise substantial doubts about the Company’s ability to continue as a going concern.   Management believes that the Company will generate sufficient cash flows to fund its operations and to meet its obligations on timely basis for the next twelve months by successful implementation of its business plans, obtaining continued support from its lenders to rollover debts when they became due, and securing additional financing as needed. There is no assurance that the Company will be able to obtain additional financing on acceptable terms and any financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our shareholders in the case of equity financing. If events or circumstances occur that the Company is unable to successfully implement its business plans, fails to obtain continued supports from its lenders or to secure additional financing, or incurs significant unplanned cash outlays, the Company may be required to suspend operations or cease business entirely.   The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation and Transactions   The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records are maintained and the financial statements prepared in U.S. dollars. The functional currency of the Company’s subsidiaries and affiliate in China is Renminbi (“RMB”) and their financial records and statements are maintained and prepared in RMB.   Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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 period-end exchange rates. All exchange differences are dealt with in the consolidated statements of operations.   The financial statements of the Company’s operations based outside of the United States have been translated into U.S. dollars in accordance with ASC830. Management has determined that the functional currency for each of the Company’s foreign operations is its applicable local currency. When translating functional currency financial statements into U.S. dollars, period-end exchange rates are applied to the condensed consolidated balance sheets, while average exchange rates as to revenues and expenses are applied to consolidated statements of operations. The effect of foreign currency translation adjustments is included as a component of accumulated other comprehensive income in shareholders’ equity.   The exchange rates as of March 31, 2014 and December 31, 2013 are $1: RMB 6.1521 and $1: RMB 6.0969, respectively.   The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation.
Real Estate Held for Development and Sale, Policy [Policy Text Block]	Real Estate Property under Development   Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value less selling costs.   Expenditures for land development, including cost of land use rights, deed tax, pre-development costs and engineering costs, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales value of units to the estimated total sales value times the total project costs.   Costs of amenities transferred to buyers are allocated as common costs of the project that are allocated to specific units as a component of total construction costs. For amenities retained by the Company, costs in excess of the related fair value of the amenity are also treated as common costs. Results of operations of amenities retained by the Company are included in current operating results.   In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), real estate property under development is subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets.   For the three months ended March 31, 2014 and 2013, the Company had not recognized any impairment for real estate property under development.
Equity Method Investments, Policy [Policy Text Block]	Long Term Investments   The Company accounts for long term investments in equities as follows.   Investment in Unconsolidated Affiliates   Affiliates are entities over which the Company has significant influence, but which it does not control. The Company generally considers an ownership interest of 20% or higher to represent significant influence. Investments in unconsolidated affiliates are accounted for by the equity method of accounting. Under this method, the Company’s share of the post-acquisition profits or losses of affiliates is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Company and its affiliates are eliminated to the extent of the Company’s interest in the affiliates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.   When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company 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. The Company recorded any impairment losses in any of the periods reported.   Other Investments   Where the Company has no significant influence, the investment is classified as other assets in the balance sheet and is carried under the cost method. Investment income is recognized by the Company when the investee declares a dividend and the Company believes it is collectible. The Company periodically evaluates the carrying value of its investment under the cost method and any decline in value is included in impairment of cost of the investment.
Government Subsidies Policy [Policy Text Block]	Government Subsidies   Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments.   In recognizing the benefit of government subsidies in accordance with U.S. GAAP, the Company considers intended use of and restrictions of the subsidy, the requirements for the receipt of funds, and whether or not the incentive is given for immediate financial support, or to encourage activities such as land development in specified area. Each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets. Those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs. Those benefits that are more general in nature or driven by business performance measures are classified as revenue.   Government subsidy was received in 2012 and as of March 31, 2014 and December 31, 2013, the Company received $5,392,535 and $5,441,360, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date. The Company recorded the subsidy received as a deferred government subsidy in consolidated balance sheets.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition   Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions nor act as an escrow intermediary between the developer and the buyer.   Revenue from marketing consultancy services is recognized when services are provided to clients, fees associated to services are fixed or determinable, and collection of the fees is assured.   Rental revenue from property management and rental business is recognized on a straight-line basis according to the time pattern of the leasing agreements.   The Company accounts for underwriting sales in accordance with ASC 976-605 “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). The commission revenue on underwriting sales is recognized when sales have been consummated, generally when title is transferred and the Company no longer has substantial continuing involvement with the real estate asset sold. If the Company provides certain rent guarantees or other forms of support where the maximum exposure to loss exceeds the gain, it defers the related commission income and expenses by applying the deposit method. In future periods, the commission income and related expenses are recognized when the remaining maximum exposure to loss is reduced below the amount of income deferred.   All revenues represent gross revenues less sales and business taxes.
Earnings Per Share, Policy [Policy Text Block]	Net Earnings (Loss) per Common Share   The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive.
Adoption Of New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Standards   In December 2011, the FASB issued ASU No. 2011-11, Topic 210 - Balance Sheet: Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 became effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.   In February 2013, the FASB issued ASU 2013-12, Topic 220 - Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 changes the presentation requirements of significant reclassifications out of accumulated other comprehensive income in their entirety and their corresponding effect on net income. For other significant amounts that are not required to be reclassified in their entirety, the standard requires the company to cross-reference to related footnote disclosures. ASU 2013-02 became effective for the company on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.
New Accounting Pronouncements [Policy Text Block]	New Accounting Pronouncements   In March 2013, the FASB issued ASU 2013-05 Topic 830 – Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-02 became effective for the company prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material effect on the Company’s condensed consolidated financial statements.   The FASB has issued ASU 2013-04 Topic 405 - Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company’s condensed consolidated financial statements.

v3.3.1.900

ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables)	3 Months Ended
	Mar. 31, 2014
Organization and Description Of Business [Abstract]
Consolidation Entities Nature Of Business [Table Text Block]	As of March 31, 2014, the Company has the following major subsidiaries and equity investments.     Company Name     Date of Incorporation     Place of Incorporation   % of Ownership held by the Company     Relationship with the 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 Real Estate consultation Company Limited (“SHSY”)   February 5, 2004   PRC   100%   Subsidiary   Property brokerage services Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”)   January 10, 2005   PRC   100%   Subsidiary   Property management and leasing services Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)   November 24, 2006   PRC   38.5% *  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   24% **  Subsidiary   Real estate development Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)   October 20, 2010   PRC   100%   Subsidiary   Property brokerage services Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)   November 10, 2010   PRC   60%   Subsidiary   Property brokerage services Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)   September 18, 2008   PRC   100%   Subsidiary   Property brokerage services Shanghai 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 Putian Xin Ji Yang Real Estate Consultation Company Limited (“PTXJY”)   June 5, 2012   PRC   55%   Subsidiary   Property brokerage services 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   40%   Equity investment   Property brokerage services Xin Guang Investment Management and Consulting Company Limited (“XG”)   December 17, 2012   PRC   49%   Equity investment   Investment management and consulting Shanghai Daerweiei Trading Company Limited (“SHDEW”)   June 6, 2013   PRC   30%   Equity investment   Import and export trading   * The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. ** The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. *** The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY.

v3.3.1.900

OTHER RECEIVABLES AND DEPOSITS, NET (Tables)	3 Months Ended
	Mar. 31, 2014
Receivables [Abstract]
Schedule Of Other Receivables and Deposit [Table Text Block]	March 31,   December 31,       2014   2013                   Advances to staff   $ 16,999     56,161   Rental deposits     169,244     7,483   Prepaid expense     60,956     -   Prepaid tax     55,445     -   GuangXinlu Project     8,127,306     -   Other receivables     128,358     140,913       $ 8,558,308   $ 204,557

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PROPERTY AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	March 31,   December 31,       2014   2013                   Furniture and fixtures   $ 245,793   $ 423,461   Computer and office equipment     269,873     293,100   Motor vehicles     747,655     878,732   Properties     9,795,377     9,657,427         11,058,699     11,252,720   Less: Accumulated depreciation     (2,183,632)     (2,112,986)       $ 8,875,067   $ 9,139,734

v3.3.1.900

INVESTMENT PROPERTIES, NET (Tables)	3 Months Ended
	Mar. 31, 2014
Real Estate [Abstract]
Schedule of Real Estate Properties [Table Text Block]	March 31,   December 31,       2014   2013                   Investment properties   $ 10,064,990   $ 10,156,116   Less: Accumulated depreciation     (4,066,004)     (4,018,297)       $ 5,998,986   $ 6,137,819

v3.3.1.900

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Tables)	3 Months Ended
	Mar. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Method Investments [Table Text Block]	The following table sets forth the financial information of WHYYL.       Three Months ended March 31,       2014   2013                   Revenues   $ -   $ -                   Net loss   $ 229,345   $ 393,922         March 31,   December 31,       2014   2013                   Current assets   $ 57,329,182   $ 56,344,599   Non-current assets     853,887     794,446   Total assets     58,183,069     57,139,045                   Current liabilities     46,997,800     45,581,987   Total equity   $ 11,185,269   $ 11,557,058

v3.3.1.900

LONG TERM BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	The loan has a 2-year term in the principal amount of $11,379,229 (RMB 70,000,000) at an interest rate of 14.21% per annum, which is 8.06% over the benchmark lending rate from PBOC.       March 31,   December 31,       2014   2013                   Outstanding borrowings   $ 11,378,229   $ 11,481,245   Less: Current portion of long term borrowings     7,965,760     8,036,871         3,413,469     3,444,374

v3.3.1.900

AMOUNTS DUE TO DIRECTORS (Tables)	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]
Schedule of Related Party Transactions [Table Text Block]	March 31,   December 31,       2014   2013                   Lin Chi-Jung   $ 8,457,417   $ 10,398,904   Lin Hsin-Hung     43,640     1,484   Lin Chao-Chin     -     39,850       $ 8,501,057   $ 10,440,238

v3.3.1.900

OTHER PAYABLES AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2014
Payables and Accruals [Abstract]
Schedule of Other Accounts Payable and Accrued Liabilities [Table Text Block]	March 31,   December 31,       2014   2013                   Accrued staff commission and bonus   $ 488,063   $ 1,058,882   Rental deposits received     603,515     687,700   Customer deposits     88,708     151,243   Accrued expenses     -     597,453   Guang Xin Lu Project     670,974     -   Other payables     434,706     506,303       $ 2,285,966   $ 3,001,581

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COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	As of March 31, 2014, the Company had the following operating lease obligations.       Amount             Within one year   $ 90,231   Two to five years     16,753       $ 106,984

v3.3.1.900

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables show the operations of the Company's operating segments:       Three Months Ended March 31, 2014       Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   Net revenues   $ 2,721,154   $ -   $ -   $ 2,721,154   Cost of revenues     (1,321,918)     -     -     (1,321,918)   Gross profit     1,399,236     -     -     1,399,236                               Operating expenses     (275,579)     (355,495)     -     (631,074)   General and administrative expenses     (663,011)     (136,059)     (34,570)     (833,640)   Operating loss     460,646     (491,554)     (34,570)     (65,478)                               Other income (expenses)                           Interest income     99,704     564     -     100,269   Interest expense     (819,509)     -     (11,250)     (830,759)   Other income, Net     (12,416)     (511)     -     (12,926)   Total other (expenses) income     (732,220)     54     (11,250)     (743,416)                               Loss before income taxes and equity in net loss of an unconsolidated affiliate     (271,574)     (491,500)     (45,820)     (808,894)                               Income tax     89,209     121,222     (5,705)     204,727   Equity in net loss of an unconsolidated affiliate, net of income taxes     (112,379)     -     -     (112,379)   Net loss   $ (294,744)   $ (370,278)   $ (51,524)   $ (716,547)         Three Months ended March 31, 2013       Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   Net revenues   $ 2,113,429   $ -   $ -   $ 2,113,429   Cost of revenues     (1,163,939)     -     -     (1,163,939)   Gross profit     949,490     -     -     949,490                               Operating expenses     (301,433)     (11,491)     -     (312,924)   General and administrative expenses     (811,314)     (72,436)     (168,009)     (1,051,759)   Operating loss     (163,257)     (83,927)     (168,009)     (415,193)                               Other income (expenses)                           Interest income     133,959     23,989     -     157,948   Interest expense     (890,631)     -     (24,516)     (915,147)   Miscellaneous     15,311     -     -     15,311   Total other (expenses) income     (741,361)     23,989     (24,516)     (741,888)                               Loss before income taxes and equity in net loss of an unconsolidated affiliate     (904,618)     (59,938)     (192,525)     (1,157,081)                               Income tax benefit     -     15,781     -     15,781   Equity in net loss of an unconsolidated affiliate, net of income taxes     -     (193,022)     -     (193,022)   Net loss   $ (904,618)   $ (237,179)   $ (192,525)   $ (1,334,322)          Property                         Brokerage   Real Estate                   Services   Development   Corporate   Total   As of March 31, 2014                           Real estate property under development   $ -   $ 32,766,496   $ -   $ 32,766,496   Total assets     31,202,802     38,697,292     5,571     69,905,665                               As of December 31, 2013                           Real estate property under development   $ -   $ 31,119,043   $ -   $ 31,119,043   Total assets     19,282,576     42,400,822     14,920     61,698,318

v3.3.1.900

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	3 Months Ended
	Mar. 31, 2014
Sunrise Real Estate Development Group Inc [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Apr. 30, 2004
Subsidiaries, Place of Incorporation	Cayman Islands
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding
Lin Ray Yang Enterprise Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 13, 2003
Subsidiaries, Place of Incorporation	British Virgin Islands
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Aug. 20, 2001
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Shanghai Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Feb. 05, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Suzhou Gao Feng Hui Property Management Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jan. 10, 2005
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property management and leasing services
Suzhou Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 24, 2006
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	38.50%	[1]
Subsidiaries, Principal activity	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jun. 25, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	75.00%
Subsidiaries, Principal activity	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Oct. 13, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	24.00%	[2]
Subsidiaries, Principal activity	Real estate development
Shangqiu Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Oct. 20, 2010
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Wuhan Gao Feng Hui Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 10, 2010
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	60.00%
Subsidiaries, Principal activity	Property brokerage services
Sanya Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Sep. 18, 2008
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Shanghai Rui Jian Design Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Aug. 15, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Mar. 06, 2012
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%	[3]
Subsidiaries, Principal activity	Investment holding
Putian Xin Ji Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jun. 05, 2012
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	55.00%
Subsidiaries, Principal activity	Property brokerage services
Wuhan Yuan Yu Long Real Estate Development Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Dec. 28, 2009
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	49.00%
Subsidiaries, Principal activity	Real estate development
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Sep. 28, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	40.00%
Subsidiaries, Principal activity	Property brokerage services
Xin Guang Investment Management and Consulting Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Dec. 17, 2012
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	49.00%
Subsidiaries, Principal activity	Investment management and consulting
Shanghai Daerweiei Trading Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jun. 06, 2013
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	30.00%
Subsidiaries, Principal activity	Import and export trading
[1] The Company and a shareholder of SZSY, which holds 12.5% equity interest in SZSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of the shareholder’s 12.5% equity interest in SZSY. The Company effectively holds 51% voting rights in SZSY and therefore considers SZSY as a subsidiary of the Company. [2] The Company and a shareholder of LYSY, which holds 51% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 51% equity interest in LYSY. The Company effectively holds 75% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. [3] The equity interest in LYRL is held by three Chinese individuals in trust for SHXJY.

v3.3.1.900

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual)		1 Months Ended
	Oct. 13, 2011	Nov. 24, 2006
Shareholder Of Lysy [Member]
Organization And Description Of Business [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	51.00%
Percentage Of Equity Interest In Subsidiary Transferred To Parent	75.00%	12.50%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	51.00%	12.50%
SZSY [Member]
Organization And Description Of Business [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		51.00%

v3.3.1.900

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended	12 Months Ended
	Mar. 31, 2014 USD ($) $ / shares	Dec. 31, 2013 USD ($) $ / shares	Mar. 31, 2014 ¥ / shares	Dec. 31, 2013 ¥ / shares
Summary Of Significant Accounting Policies [Line Items]
Foreign Currency Exchange Rate Translation | (per share)	$ 1	$ 1	¥ 6.1521	¥ 6.0969
Significant Influence Percentage Description	20.00%
Proceeds From Government Subsidies	$ 5,392,535	$ 5,441,360

v3.3.1.900

RESTRICTED CASH (Details Textual)	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2013 CNY (¥)
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash and Cash Equivalents	$ 23,461	$ 246,895	$ 861,494	¥ 5,300,000

v3.3.1.900

REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details Textual)	Mar. 31, 2014 USD ($) m²	Mar. 13, 2014 m²
Linyi Project [Member]
Real Estate Property Under Development [Line Items]
Area Of Land | m²	103,385	2,502
Use Rights [Member]
Real Estate Property Under Development [Line Items]
Finite-Lived Intangible Assets, Net | $	$ 32,766,496

v3.3.1.900

OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Other Receivables And Deposits [Line Items]
Advances to staff	$ 16,999	$ 56,161
Rental deposits	169,244	7,483
Prepaid expense	60,956	0
Prepaid tax	55,445	0
GuangXinlu Project	8,127,306	0
Other receivables	128,358	140,913
Other Receivables And Deposit, Net	$ 8,558,308	$ 204,557

v3.3.1.900

OTHER RECEIVABLES AND DEPOSITS, NET (Details Textual) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Other Receivables And Deposits [Line Items]
Allowance for Doubtful Other Receivables, Current	$ 109,235	$ 99,437

v3.3.1.900

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 11,058,699	$ 11,252,720
Less: Accumulated depreciation	(2,183,632)	(2,112,986)
Property, Plant and Equipment, Net	8,875,067	9,139,734
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	245,793	423,461
Computer and office equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	269,873	293,100
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	747,655	878,732
Properties [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 9,795,377	$ 9,657,427

v3.3.1.900

PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization, Total	$ 299,740	$ 284,450
Property And Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization, Total	$ 215,524	$ 152,350

v3.3.1.900

INVESTMENT PROPERTIES, NET (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Investment Properties [Line Items]
Investment properties	$ 10,064,990	$ 10,156,116
Less: Accumulated depreciation	(4,066,004)	(4,018,297)
Real Estate Investment Property, Net	$ 5,998,986	$ 6,137,819

v3.3.1.900

INVESTMENT PROPERTIES, NET (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Investment Properties [Line Items]
Depreciation, Depletion and Amortization, Nonproduction	$ 84,216	$ 132,100

v3.3.1.900

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Revenues	$ 0	$ 0
Net loss	229,345	$ 393,922
Current assets	57,329,182		$ 56,344,599
Non-current assets	853,887		794,446
Total assets	58,183,069		57,139,045
Current liabilities	46,997,800		45,581,987
Total equity	$ 11,185,269		$ 11,557,058

v3.3.1.900

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details Textual)	3 Months Ended
	Mar. 31, 2014 USD ($) m²	Mar. 31, 2013 USD ($)	Dec. 31, 2013 USD ($)	Jan. 31, 2011 USD ($)
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Investment in an unconsolidated affiliate (Note 9)	$ 5,480,505		$ 5,642,909
Amount due from an unconsolidated affiliate (Note 9)	2,211,185		3,086,185
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	229,345	$ 393,922
WHYYL [Member]
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Investment in an unconsolidated affiliate (Note 9)	$ 5,480,505			$ 4,697,686
Area of Land | m²	27,950
Equity Method Investment Summarized Financial Information Interest Income	$ 97,318	$ 132,063
Amount due from an unconsolidated affiliate (Note 9)	$ 2,202,783		$ 33,086,185
Due From Related Parties Percentage Of Interest	15.00%
Equity Method Investment, Ownership Percentage	49.00%
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 229,345

v3.3.1.900

BANK LOANS (Details Textual)	3 Months Ended
	Mar. 31, 2014 USD ($)	Mar. 31, 2014 CNY (¥)	Dec. 31, 2013 USD ($)	Dec. 31, 2013 CNY (¥)	Sep. 30, 2013 USD ($)	Sep. 30, 2013 CNY (¥)
Long-Term Debt, Gross	$ 178,779
Restricted Cash and Cash Equivalents	23,461		$ 246,895		$ 861,494	¥ 5,300,000
First Sino Bank Loan August 2012 [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,819,151	¥ 35,800,000
First Sino Bank Loan August 2012 [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Interest Rate Description	The borrowings under this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by the Peoples Bank of China (PBOC).
Line of Credit Facility, Interest Rate at Period End	7.6875%	7.6875%
Long-term Line of Credit	$ 4,957,657	¥ 30,500,000	5,002,543	¥ 30,500,000
Line of Credit Facility, Expiration Date	Mar. 31, 2015
First Sino Bank Loan April 2012 [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 12,190,959	¥ 75,000,000
First Sino Bank Loan April 2012 [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Interest Rate Description	this facility bear interest at a rate per annum equal to 125% of the prevailing base lending rate for periods ranging from 1 year to 3 years as announced by PBOC.
Line of Credit Facility, Interest Rate at Period End	7.6875%	7.6875%
Long-term Line of Credit	$ 12,190,959	¥ 75,000,000	12,301,332	¥ 75,000,000
Line of Credit Facility, Expiration Date	Mar. 31, 2015
Bank Of China [Member]
Debt Instrument, Face Amount	$ 1,300,369	¥ 8,000,000
Debt Instrument, Interest Rate, Stated Percentage	7.56%	7.56%
Long-Term Debt, Gross	$ 1,300,369	¥ 8,000,000	$ 1,312,142

v3.3.1.900

LONG TERM BORROWINGS (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Outstanding borrowings	$ 11,378,229	$ 11,481,245
Less: Current portion of long term borrowings	7,964,760	8,036,871
Long-term Debt, Excluding Current Maturities	$ 3,413,469	$ 3,444,374

v3.3.1.900

LONG TERM BORROWINGS (Details Textual)	1 Months Ended	3 Months Ended
	May. 16, 2013 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2013 CNY (¥)	May. 16, 2013 CNY (¥)
Debt Instrument [Line Items]
Accumulated Capitalized Interest Costs		$ 404,212
Pledged Assets, Not Separately Reported, Real Estate		$ 32,766,496
Floating Mortgage Ratio		50.00%
Restricted Cash and Cash Equivalents		$ 23,461	$ 246,895	$ 861,494	¥ 5,300,000
Benchmark Lending Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period	8.06%
China CITIC Bank [Member]
Debt Instrument [Line Items]
Restricted Cash and Cash Equivalents		$ 23,461	$ 246,895
Loan Payable To Bank [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 11,379,229					¥ 70,000,000
Debt Instrument, Interest Rate During Period	14.21%
Debt Instrument, Maturity Date, Description	2 year

v3.3.1.900

PROMISSORY NOTES PAYABLE (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 178,779
Interest Expense, Debt	177,412	$ 231,165
Unsecured Notes Payable One [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	15,198,449		$ 5,076,547
Unsecured Notes Payable Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 3,783,681
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Long-term Debt, Gross	$ 1,961,565		2,308,974
Unsecured Notes Payable Three [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 865,292
Debt Instrument, Interest Rate, Stated Percentage	15.00%
Long-term Debt, Gross	$ 1,193,077		1,252,276
Unsecured Notes Payable Four [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 816,313
Debt Instrument, Interest Rate, Stated Percentage	15.00%
Long-term Debt, Gross	$ 1,076,924		1,056,342
Unsecured Notes Payable Five [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 1,625,461
Debt Instrument, Interest Rate, Stated Percentage	20.00%
Long-term Debt, Gross	$ 1,638,821
Unsecured Notes Payable Six [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 4,876,384
Debt Instrument, Interest Rate, Stated Percentage	26.70%
Long-term Debt, Gross	$ 4,883,510
Unsecured Notes Payable Seven [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 162,546
Debt Instrument, Interest Rate, Stated Percentage	20.00%
Long-term Debt, Gross	$ 162,813
Unsecured Notes Payable Eight [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 1,324,751
Debt Instrument, Interest Rate, Stated Percentage	36.00%
Long-term Debt, Gross	$ 674,566
Unsecured Notes Payable Nine [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	3,250,922
Long-term Debt, Gross	3,250,922
Unsecured Notes Payable Ten [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 300,000
Debt Instrument, Interest Rate, Stated Percentage	15.00%
Long-term Debt, Gross	$ 356,250		$ 280,176

v3.3.1.900

AMOUNTS DUE TO DIRECTORS (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors (Note 13)	$ 8,501,057	$ 10,440,238
Lin Chi Jung [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors (Note 13)	8,457,417	10,398,904
Lin Chao Chin [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors (Note 13)	0	39,850
Lin Hsin Hung [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors (Note 13)	$ 43,640	$ 1,484

v3.3.1.900

AMOUNTS DUE TO DIRECTORS (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Debt Instrument, Debt Default, Amount	$ 8,457,417	$ 10,398,904
Minimum [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Related Party Transaction, Rate	18.00%
Maximum [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Related Party Transaction, Rate		30.00%

v3.3.1.900

OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Other Payables And Accrued Expenses [Line Items]
Accrued staff commission and bonus	$ 488,063	$ 1,058,882
Rental deposits received	603,515	687,700
Customer deposits	88,708	151,243
Accrued expenses	0	597,453
Guang Xin Lu Project	670,974	0
Other payables	434,706	506,303
Accrued Liabilities and Other Liabilities	$ 2,285,966	$ 3,001,581

v3.3.1.900

DEFERRED GOVERNMENT SUBSIDY (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Deferred Government Subsidy [Line Items]
Proceeds From Government Subsidies	$ 5,392,535	$ 5,441,360

v3.3.1.900

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2014 USD ($)
Operating Leased Assets [Line Items]
Operating Leases, Future Minimum Payments Due	$ 106,984
Office Equipment [Member]
Operating Leased Assets [Line Items]
Within one year	90,231
Two to five years	$ 16,753

v3.3.1.900

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense	$ 61,494	$ 49,858

v3.3.1.900

STATUTORY RESERVE (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Statutory Accounting Practices [Line Items]
Statutory reserve (Note 17)	$ 783,101	$ 782,987
Prc Corparate [Member]
Statutory Accounting Practices [Line Items]
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve	10.00%
Statutory Reserve Maintenance Required, Percentage On Registered Capital	50.00%
Prc Subsidiary [Member]
Statutory Accounting Practices [Line Items]
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve	10.00%
Statutory Reserve Maintenance Required, Percentage On Registered Capital	50.00%

v3.3.1.900

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net revenues	$ 2,721,154	$ 2,113,429
Cost of revenues	(1,321,918)	(1,163,939)
Gross profit	1,399,236	949,490
Operating expenses	(631,074)	(312,924)
General and administrative expenses	(833,640)	(1,051,759)
Operating loss	(65,478)	(415,193)
Other income (expenses)
Interest income	100,269	157,948
Interest expense	(830,759)	(915,147)
Other income, Net	(12,926)	15,311
Total other (expenses) income	(743,416)	(741,888)
Loss before income taxes and equity in net loss of an unconsolidated affiliates	(808,894)	(1,157,081)
Income tax	204,726	15,781
Equity in net loss of an unconsolidated affiliate, net of income taxes	(112,379)	(193,022)
Net loss	(716,547)	(1,334,322)
Real estate property under development	32,766,496		$ 31,119,043
Total assets	69,905,665		61,698,318
Corporate [Member]
Segment Reporting Information [Line Items]
Net revenues	0	0
Cost of revenues	0	0
Gross profit	0	0
Operating expenses	0	0
General and administrative expenses	(34,570)	(168,009)
Operating loss	(34,570)	(168,009)
Other income (expenses)
Interest income	0	0
Interest expense	(11,250)	(24,516)
Other income, Net	0	0
Total other (expenses) income	(11,250)	(24,516)
Loss before income taxes and equity in net loss of an unconsolidated affiliates	(45,820)	(192,525)
Income tax	(5,705)	0
Equity in net loss of an unconsolidated affiliate, net of income taxes	0	0
Net loss	(51,524)	(192,525)
Real estate property under development	0		0
Total assets	5,571		14,920
Property Brokerage Services [Member]
Segment Reporting Information [Line Items]
Net revenues	2,721,154	2,113,429
Cost of revenues	(1,321,918)	(1,163,939)
Gross profit	1,399,236	949,490
Operating expenses	(275,579)	(301,433)
General and administrative expenses	(663,011)	(811,314)
Operating loss	460,646	(163,257)
Other income (expenses)
Interest income	99,704	133,959
Interest expense	(819,509)	(890,631)
Other income, Net	(12,416)	15,311
Total other (expenses) income	(732,220)	(741,361)
Loss before income taxes and equity in net loss of an unconsolidated affiliates	(271,574)	(904,618)
Income tax	89,209	0
Equity in net loss of an unconsolidated affiliate, net of income taxes	(112,379)	0
Net loss	(294,744)	(904,618)
Real estate property under development	0		0
Total assets	31,202,802		19,282,576
Real Estate Development [Member]
Segment Reporting Information [Line Items]
Net revenues	0	0
Cost of revenues	0	0
Gross profit	0	0
Operating expenses	(355,495)	(11,491)
General and administrative expenses	(136,059)	(72,436)
Operating loss	(491,554)	(83,927)
Other income (expenses)
Interest income	564	23,989
Interest expense	0	0
Other income, Net	(511)	0
Total other (expenses) income	54	23,989
Loss before income taxes and equity in net loss of an unconsolidated affiliates	(491,500)	(59,938)
Income tax	121,222	15,781
Equity in net loss of an unconsolidated affiliate, net of income taxes	0	(193,022)
Net loss	(370,278)	$ (237,179)
Real estate property under development	32,766,496		31,119,043
Total assets	$ 38,697,292		$ 42,400,822

v3.3.1.900

SUBSEQUENT EVENTS (Details Textual) - Ace Develop Properties Limited [Member] - Scenario, Forecast [Member] shares in Millions			1 Months Ended
	Nov. 10, 2014 USD ($) shares	Nov. 10, 2014 CNY (¥) shares	Aug. 20, 2014 USD ($) shares	Aug. 20, 2014 CNY (¥) shares
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	20	20	20	20
Stock Issued During Period, Value, New Issues	$ 1,700,000	¥ 10,460,000	$ 1,700,000	¥ 10,472,000