Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

☐ 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. 18, Panlong Road

Shanghai, PRC 201702

(Address of Principal Executive Offices) (Zip Code)

Issuer’s telephone number: + 86-21-6067-3830

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

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 ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

Yes ☒ No ☐

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


Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: July 31, 2023 –68,691,925 shares of Common Stock

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FORM 10-Q

For the Quarter Ended June 30, 2023

INDEX


		Page
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3
	Condensed Consolidated Statements of Operations for The Six Months Ended June 30, 2023 and 2022	4
	Condensed Consolidated Statements of Stockholders’ Equity for The Six Months and Three Months Ended June 30, 2023 and 2022	5
	Condensed Consolidated Statements of Stockholders’ Equity for The Six Months and Three Months Ended June 30, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows for The Six Months Ended June 30, 2023 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27

PART II.	OTHER INFORMATION	29
Item 1.	Legal Proceedings	29
Item 1A	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30

SIGNATURES		31

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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)


	June 30,		December 31,
	2023		2022
ASSETS

Current assets
Cash and cash equivalents	$	18,359,017	$	33,201,354
Restricted cash (Note 3)		45,789,248		43,869,156
Transactional financial assets (Note 4)		10,282,449		10,960,511
Accounts receivable		179,325		204,518
Real estate property under development (Note 5)		117,569,883		120,302,022
Amount due from an unconsolidated affiliate		15,882,006		16,502,409
Other receivables and deposits, net (Note 6)		13,259,147		10,733,460
Total current assets		221,321,075		235,773,430

Property and equipment, net (Note 7)		819,133		1,001,077
Investment properties, net (Note 8)		21,159,443		22,673,139
Deferred tax assets (Note 18)		—		—
Investment in an unconsolidated affiliate (Note 9)		12,290,133		12,751,061
Goodwill (Note 11)		1,003,503		1,243,194
Other investments (Note 10)		629,100		652,693
Total assets	$	257,222,387	$	274,094,594

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

Current liabilities
Promissory notes payable (Note12)		1,383,930		1,435,833
Accounts payable (Note 15)		26,341,832		22,372,938
Amounts due to directors (Note 13)		504,273		480,109
Amount due to an affiliate (Note 16)		49,131,392		49,251,273
Customer deposits (Note 17)		32,760,936		34,742,361
Other payables and accrued expenses (Note 14)		7,214,997		7,587,515
Other taxes payable		233,298		255,175
Income taxes payable (Note 18)		1,387,499		1,848,666
Dividends payable		—		10,303,789
Total current liabilities		118,958,157		128,277,659

Long-term income tax payable (Note 18)		539,211		1,078,422
Total liabilities		119,497,368		129,356,081

Commitments and contingencies (Note 19)

Shareholders’ equity
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 68,691,925 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		686,919		686,919
Additional paid-in capital		8,110,008		8,110,008
Statutory reserve (Note 20)		3,986,618		3,986,618
Retained Earnings		107,991,305		109,300,636
Accumulated other comprehensive income		4,584,289		9,447,265
Total deficit of Sunrise Real Estate Group, Inc.		125,359,139		131,531,446
Non-controlling interests		12,365,880		13,207,067
Total shareholders’ equity		137,725,019		144,738,513
Total liabilities and shareholders’ equity	$	257,222,387	$	274,094,594

See accompanying notes to consolidated financial statements.

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SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Expressed in U.S. Dollars)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net revenues	$	7,042,904	$	34,639,531	$	12,776,666	$	45,879,936
Cost of revenues		(5,956,385)		(30,085,259)		(11,136,935)		(40,745,054)
Gross profit (loss)		1,086,519		4,554,272		1,639,731		5,134,882

Operating expenses		(490,120)		(223,156)		(940,599)		(952,585)
General and administrative expenses		(728,734)		113,603		(1,540,592)		(1,788,700)
Operating profit (loss)		(132,335)		4,444,719		(841,460)		2,393,597

Other income (expenses)
Interest income		248,416		211,659		495,420		467,131
Interest expense		(782,378)		(582,736)		(1,364,044)		(2,344,872)
Equity in net gain (loss) of an affiliate		—		(434)		—		22,079
Other income (loss), net		1,117,937		(1,805,235)		384,796		(1,776,436)
Total other Income		583,975		(2,176,746)		(483,828)		(3,632,098)

Income (loss) before income taxes		451,640		2,267,973		(1,325,288)		(1,238,501)
Income tax benefit (expense)		(250,864)		(1,333,194)		(361,315)		(1,333,212)
Net income (loss)		200,776		934,779		(1,686,603)		(2,571,713)
Less: Net (income) loss attributable to non-controlling interests		141,219		484,077		377,272		2,124,456
Net income attributable to shareholders of Sunrise Real Estate Group, Inc.	$	341,995	$	1,418,856	$	(1,309,331)	$	(447,257)
Net income (loss)		200,776		934,779		(1,686,603)		(2,571,713)
Other comprehensive income (loss) Foreign currency translation adjustment		(7,240,930)		(10,412,132)		(5,326,891)		(9,569,069)
Discontinuation of the equity method for an investment		—		—		—		—
Comprehensive income (loss)		(7,040,154)		(9,477,353)		(7,013,494)		(12,140,782)

Less: Comprehensive income (loss) attributable to non-controlling interests		782,428		1,248,496		841,187		2,805,277
Total comprehensive income (loss) attributable to shareholders		(6,257,726)		(8,228,857)		(6,172,307)		(9,335,505)
Earnings per share – basic and fully diluted	$	0.00	$	0.02	$	(0.02)	$	(0.01)

Weighted average common shares outstanding
Basic and fully diluted		68,691,925		68,691,925		68,691,925		68,691,925

See accompanying notes to unaudited condensed consolidated financial statements.

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SUNRISE REAL ESTATE GROUP, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(Expressed in U.S. Dollars)


											Accumulated				Total
	Common Stock				Additional				Retained		Other				Stockholders’
	Number of				Paid-in		Statutory		Earnings		Comprehensive		Non-controlling		(Deficit)
	shares issued		Amount		Capital		Reserve		(Deficits)		Income		Interests		Equity
Balance, December 31, 2022		68,691,925	$	686,919	$	8,110,008	$	3,986,618	$	109,300,636	$	9,447,265	$	13,207,067	$	144,738,513
Profit (loss) for the year										(1,309,331)				(377,272)		(1,686,603)
Discontinuation of the equity method for an investment		—		—		—		—		—		—		—		—
Capital contribution from non-controlling interests of new consolidated subsidiaries		—		—		—		—		—		—		—		—
Dividend
Translation of foreign operations		—		—		—		—		—		(4,862,976)		(463,915)		(5,326,891)
Balance, June 30, 2023		68,691,925		686,919		8,110,008		3,986,618		107,991,305		4,584,289		12,365,880		137,725,019


										Accumulated				Total
	Common Stock			Additional				Retained		Other				Stockholders’
	Number of			Paid-in		Statutory		Earnings		Comprehensive		Non-controlling		(Deficit)
	shares issued	Amount		Capital		Reserve		(Deficits)		Income		Interests		Equity
Balance, March 31, 2023	68,691,925	$	686,919	$	8,110,008	$	3,986,618	$	107,649,310	$	11,184,010	$	13,148,308	$	144,765,173
Profit (loss) for the year									341,995				(141,219)		200,776
Translation of foreign operations	—		—		—		—		—		(6,599,721)		(641,209)		(7,240,930)
Discontinuation of the equity method for an investment	—		—		—		—		—		—		—		—
Dividend	—		—		—		—		—		—		—		—
Capital contribution to a new consolidated subsidiary	—		—		—		—		—		—		—		—
Balance,June 30, 2023	68,691,925		686,919		8,110,008		3,986,618		107,991,305		4,584,289		12,365,880		137,725,019

See accompanying notes to consolidated financial statements.

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SUNRISE REAL ESTATE GROUP, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(Expressed in U.S. Dollars)


										Accumulated				Total
	Common Stock			Additional				Retained		Other				Stockholders’
	Number of			Paid-in		Statutory		Earnings		Comprehensive		Non-controlling		(Deficit)
	shares issued	Amount		Capital		Reserve		(Deficits)		Income		Interests		Equity
Balance, December 31, 2021	68,691,925	$	686,919	$	8,050,008	$	3,986,618	$	117,729,224	$	24,738,423	$	15,430,432	$	170,621,624
Profit (loss) for the year									(447,257)				(2,124,456)		(2,571,713)
Discontinuation of the equity method for an investment	—		—		—		—		—		—		—		—
Capital contribution from non-controlling interests of new consolidated subsidiaries	—		—		—		—		—		—		—		—
Dividend
Translation of foreign operations	—		—		—		—		—		(8,888,248)		(680,821)		(9,569,069)
Balance, June 30, 2022	68,691,925		686,919		8,050,008		3,986,618		117,281,967		15,850,175		12,625,155		158,480,842


											Accumulated				Total
	Common Stock				Additional				Retained		Other				Stockholders’
	Number of				Paid-in		Statutory		Earnings		Comprehensive		Non-controlling		(Deficit)
	shares issued		Amount		Capital		Reserve		(Deficits)		Income		Interests		Equity
Balance, March 31, 2022		68,691,925	$	686,919	$	8,050,008	$	3,986,618	$	115,928,818	$	25,497,888	$	13,873,651	$	168,023,902
Profit (loss) for the year		—		—		—		—		1,353,149		—		(484,077)		869,072
Translation of foreign operations		—		—		—		—		—		(9,647,713)		(764,419)		(10,412,132)
Discontinuation of the equity method for an investment		—		—		—		—		—		—		—		—
Dividend
Capital contribution to a new consolidated subsidiary		—		—		—		—		—		—		—		—
Balance, June 30, 2022		68,691,925		686,919		8,050,008		3,986,618		117,281,967		15,850,175		12,625,155		158,480,842

See accompanying notes to consolidated financial statements.

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SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Expressed in U.S. Dollars)


	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities
Net income (loss)	$	(1,686,603)	$	(2,571,713)

Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization		1,179,643		820,935
Loss (Gain) on disposal of property, plant and equipment		32,902		16,660
Equity loss (gain) from investments in unconsolidated affiliate		—		—
Changes in assets and liabilities
Accounts receivable		18,513		12,768
Real estate property under development		(1,681,300)		26,428,443
Customer Deposits		(754,602)		(49,525,305)
Amount due from unconsolidated affiliates		1,751,782		432,503
Other receivables and deposits		(3,030,354)		38,807
Deferred tax assets		—		839,914
Net cash from directors		43,182		(47,150)
Accounts payable		4,968,945		(740,128)
Dividends		(10,329,001)		533,975
Other payables and accrued expenses		(102,177)		(453,503)
Other taxes payable		(13,160)		(138,609)
Income taxes payable		(949,342)		61,983
Net cash provided by (used in) operating activities		(10,551,572)		(24,290,420)

Cash flows from investing activities
Purchases of property and equipment		(4,164)		(85,166)
Net Cash from Transactional financial assets		293,145		(1,070,930)
Acquisition of investment		—		—
Dividend distribution of affiliate		—		—
Net cash provided by (used in) investing activities		288,981		(1,156,096)

Cash flows from financing activities
Restricted cash		—		—
Dividends paid to noncontrolling interests		—		—
Net cash provided (used in) financing activities		—		—

Effect of exchange rate changes on cash, cash equivalents and restricted cash		(2,659,654)		(4,405,686)

Net increase in cash, cash equivalents and restricted cash		(12,922,245)		(29,852,202)
Cash, cash equivalents and restricted cash at beginning of period		77,070,510		97,911,619
Cash, cash equivalents and restricted cash at end of period	$	64,148,265	$	68,059,417

Supplemental disclosure of cash flow information
Income taxes paid	$	1,361,466	$	1,333,212
Interest paid		—		—

See accompanying notes to consolidated financial statements.

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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”, “we”, “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 June 30, 2023, the Company has the following major subsidiaries and equity investment.


			% of Ownership	Relationship
	Date of	Place of	held by the	with the
Company Name	Incorporation	Incorporation	Company	Company	Principal Activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands	100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands	100%	Subsidiary	Investment holding
Shangyang International Pte.Ltd (“SYSG”)	August 19, 2022	Singapore	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 Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC	75.25%¹	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC	75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC	34%²	Subsidiary	Real estate development
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC	100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC	100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC	100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC	49%	Equity investment	Real estate development
Zhong Ji Pu Fa Real Estate Company Limited (SHGXL)	March 13, 2012	PRC	100%	Equity investment	Real estate development.
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC	19.91%³	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC	100%	Subsidiary	Investment holding
Shanghai Taobuting Media Co., Ltd (TBT)	July 1, 2020	PRC	7.5%	Subsidiary	Streaming platform
Huai’an Zhanbao Industrial Co., Ltd. (“HAZB”)	December 6, 2018	PRC	78.46%⁴	Subsidiary	Investment holding
Huai’an Tianxi Real Estate Development Co., Ltd (“HATX”)	October, 2018	PRC	78.46%⁴	Subsidiary	Investment holding

1	After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY: 49%, SHXJY: 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE): 12.5%, totaling 75.25% equity interest in SZSY.

The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that entitles the Company to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase.

3	In December 2019, SHDEW issued an employee stock bonus where its employees received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91%.

4	We established HATX for real estate development in Huai’an through HAZB, of which we have 78.46% ownership.

The accompanying condensed consolidated balance sheet as of December 31, 2022, which has been derived from the audited consolidated financial statements and the accompanying unaudited condensed consolidated financial statements, has 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

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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 June 30, 2022 and the results of operations for the six months ended June 30, 2023 and 2022, and the cash flows for the six months ended June 30, 2023 and 2022. 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, 2022. The results of operations for the six months ended June 30, 2023 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.

Foreign Currency Translation and Transactions

The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records and the financial statements are maintained and 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. Gains and losses 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 June 30, 2023 and December 31, 2022 are $1: RMB7.2258 and $1: RMB6.9646, 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.

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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.

In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters(“sqm”) for the purpose of developing villa-style residential housing. The LYSY project is divided into three phases. Phase 1 completed construction of 121 units in May 2015 and sold 119 units by the end of July 31, 2023. Phase 2 was divided into north and south areas and completed construction of 84 units as of the end of 2020. All units were sold during phase 2 by the end of July 31, 2023. Phase 3 began construction in the first quarter of 2021 and pre-sold 21 units out of 51 units as of the end of July 31, 2023. In September 2020, the Company expanded the Linyi project by purchasing an additional 54,312 sqm for 228 million RMB for future development.

In October 2018, HATX purchased property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 units out of 873 units of the second phase.

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 did 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 the value of the investment that is not temporary. The Company did not record 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 measurement alternative which is measured at cost less impairment, adjusted for observable price changes in orderly transactions

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for an identical or similar investment of the same issuer. 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 measurement alternative method in the case of the investment in SHDEW and any decline in value is included in impairment of cost of the investment.

Revenue Recognition

Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset.

All revenues represent gross revenues less sales and business tax.

ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures.

The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements.

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 February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements.

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In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed consolidated financial statements.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

NOTE 3 – RESTRICTED CASH

The Company is required to maintain certain deposits with the bank for those home buyers that have applied for a housing loan from their bank. This deposit is a percentage to each home buyer’s bank loan for the purpose of purchasing in our project. Once we complete the handover to the buyer, these deposits become unrestricted. As of June 30, 2023, and December 31, 2022, the Company held cash deposits of $45,789,248 and $43,869,156, respectively.

NOTE 4 – TRANSACTIONAL FINANCIAL ASSETS

As of June 30, 2023, we had $10,282,449 invested in bank wealth management investment products. The investments are short termed with maturity periods and can be rolled into a maturity date of our choosing or automatically rolled into subsequent maturity period. The annualized rate of return may range from 2.08% to 2.7% depending on the amount and time period invested.

NOTE 5 – REAL ESTATE PROPERTY UNDER DEVELOPMENT

Real estate property under development represents the Company’s real estate development project in Linyi (“Linyi Project”), which is located at the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 sqm for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012. We sold 119 of 121 Phase 1 villas and sold all 84 units in Phase 2 as of July 31, 2023. As to Phase 3, we pre-sold 21 units out of 51 units as of July 31, 2023.

In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. In December 2018 we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and tis land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 out of 873 units of the second phase.

As of June 30, 2022, land use rights included in real estate property under development totaled $117,569,883.

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NOTE 6 – OTHER RECEIVABLES AND DEPOSITS, NET


	June 30,		December 31,
	2023		2022
Advances to staff	$	320,856		372,262
Rental deposits		709,260		735,860
Prepaid expense		493,603		28,153
Prepaid tax		7,279,391		7,783,185
Other receivables		4,456,037		1,859,000
	$	13,259,147	$	10,733,460

Other receivables and deposits as of June 30, 2023 and December 31, 2022 were stated net of allowance for doubtful accounts of $1,188,602 and $1,233,179, respectively.

NOTE 7 – PROPERTY AND EQUIPMENT, NET


	June 30,		December 31,
	2023		2022
Furniture and fixtures	$	255,329	$	233,960
Computer and office equipment		63,679		135,163
Motor vehicles		720,176		747,185
Properties		2,093,812		2,172,338
		3,132,996		3,278,646
Less: Accumulated depreciation		(2,313,863)		(2,277,569)
	$	819,133	$	1,001,077

Depreciation and amortization expense for property and equipment amounted to $1,179,643 and $820,935 for the six months ended June 30, 2023 and 2022, respectively.

NOTE 8 – INVESTMENT PROPERTIES, NET


	June 30,		December 31,
	2023		2022
Investment properties	$	32,161,696	$	33,367,887
Less: Accumulated depreciation		(11,002,253)		(10,694,748)
	$	21,159,443	$	22,673,139

Depreciation and amortization expense for investment properties amounted to $1,061,518 and $774,249 for the six months ended June 30, 2023 and 2022, respectively.

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

The investments in unconsolidated affiliates primarily consist of SHDEW (19.91)%. As of June 30, 2023, the investment amount in SHDEW was $12,262,454 and SHTX was $27,679.

SHDEW was established in June 2013 as a skincare and cosmetic company. SHDEW is developing its own skincare products. SHDEW sells products under its own brands as well as the products of third parties. The products include skincare, cosmetics, personal care products such as soaps, shampoos, skin care devices and children’s apparel. SHDEW is improving its own online shopping platform where consumers can purchase its cosmetics and skincare products as well as products imported into China. The online shopping platform has been in operation since 2017.

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NOTE 10 – OTHER INVESTMENTS, NET

According to ASU 2016-01, where the Company has no significant influence, the investment is classified as other investments in the balance sheet and is carried under the measurement alternative method. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. As of June 30, 2023, and December 31, 2022, the carrying amount of the Company’s measurement alternative investments was $629,100 and $652,693, respectively.

The Company performs impairment assessment of its investments under the measurement alternative whenever events or changes in circumstances indicate that the carrying value of the investment may not be fully recoverable. Impairment charges in connection with the measurement alternative investments of nil were recorded in others, net in the Consolidated Statements of Operations and Comprehensive Income/(Loss) for the periods ended June 30, 2023 and 2022, respectively.

NOTE 11 – GOODWILL

On April 4, 2020, the Company purchased 10% of LYSY from Nanjing Longchang Real Estate Development Group for 22.17 million RMB (approximately $3,398,213). As of June 30, 2023, the amount of $1,003,503 of goodwill represents the difference between the investment cost and book value, the company has not recorded any impairments of goodwill.

NOTE 12 – PROMISSORY NOTES PAYABLE

The promissory notes payable consists of the following unsecured notes to unrelated parties. Included in the balances are promissory notes with outstanding principal and unpaid interest of an aggregate of $1,383,930 and $1,435,833 as of June 30, 2023 and December 31, 2022, respectively.

The promissory note with a principal as of June 30, 2023 amounting to $691,965 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2023, and December 31, 2022, the outstanding principal and unpaid interest related to this promissory note amounted to $691,965 and $717,917, respectively.

For the six months ended June 30, 2023, the interest expense related to these promissory notes was $NIL.

NOTE 13 – AMOUNTS DUE TO DIRECTORS


	June 30,		December 31,
	2023		2022
Lin Chi-Jung	$	484,213	$	459,299
Lin Hsin-Hung		20,060		20,811
	$	504,273	$	480,109

(a)	The balances due to Lin Chi-Jung consist of temporary advances.

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

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

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NOTE 14 – OTHER PAYABLES AND ACCRUED EXPENSES


	June 30,		December 31,
	2023		2022
Accrued staff commission and bonus	$	62,374	$	185,124
Rental deposits received		152,799		164,566
Bid bond		87,188		90,457
Dividends payable to non-controlling interest		186,214		193,198
Other payables		6,726,422		6,954,170
	$	7,214,997	$	7,587,515

NOTE 15 – ACCOUNT PAYABLE

As of June 30, 2023, and December 31, 2022, the balances of accounts payable were $26,341,832 and $22,372,938 respectively. The balance of accounts payable as of June 30, 2023 included unpaid development fee of Linyi project of $4,588,476 and HATX project of $20,702,694. The remaining balance was due to agents of the operating business.

NOTE 16 – AMOUNT DUE TO AFFILIATES

As of June 30, 2023, the amount due to Shanghai Shengji (“SHSJ”), a shareholder of HATX, was $48,641,031 and JXSY was $490,361, was an intercompany transfer for day-to-day operations.

NOTE 17 – CUSTOMER DEPOSITS

Customer deposits consisted of the sales from real estate development project (the Linyi project and the HATX project) which cannot be recognized as revenue at the accounting period and deposits received for rental.

The Linyi project started pre-sales in November 2013 and in 2019, the Project recognized its revenue along with customer deposit; as of June 30, 2023, the pre-sales amounted to $7,085,740. The HATX project started pre-sales in December 2019; as of June 30, 2023, the pre-sales amounted to $25,638,714.

NOTE 18 – INCOME TAX PAYABLE

The 2017 Tax Act was enacted on December 22, 2017. Due to the complexities involved in the accounting for the 2017 Tax Act, the SEC issued SAB 118, which provides guidance on the application of US GAAP for income taxes in the period of enactment. SAB 118 requires companies to include in their financial statements a reasonable estimate of the impact of the 2017 Tax Act, to the extent such an estimate has been determined. As a result, our financial results reflect the income tax effects of the 2017 Tax Act for which the accounting is complete, as well as provisional amounts for those impacts for which the accounting is incomplete but a reasonable estimate could be determined.

NOTE 19 – 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 six months ended June 30, 2023 and 2022 were $57,414 and $115,172, respectively.

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As of June 30, 2023, the Company had the following operating lease obligations.


	Amount
Within one year	$	10,843
Two to five years		—
	$	10,843

NOTE 20 – STATUTORY RESERVE

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

According to the Law of the PRC on Enterprises with Wholly-Owned Foreign Investment, the Company PRC’s subsidiaries are required to make appropriations from after-tax profits as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion reserve and (iii) a staff bonus and welfare fund. A wholly-owned PRC subsidiary is not required to make appropriations to the enterprise expansion reserve but annual appropriations to the general reserve are required to be made at 10% of the profit after tax as determined under PRC GAAP at each year-end, until such fund has reached 50% of its respective registered capital. The staff welfare and bonus reserve are 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 June 30, 2023, and December 31, 2022, the Company’s statutory reserve fund was $3,986,618 and $3,986,618, respectively.

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NOTE 21 - SEGMENT INFORMATION

The Company’s Chief Executive Officer and Chief Financial 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 June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	—	$	7,042,904	$	—	$	—	$	7,042,904
Cost of revenues		—		(5,956,385)		—		—		(5,956,385)
Gross profit		—		1,086,519		—		—		1,086,519

Operating expenses		—		(493,861)		—		—		(490,120)
General and administrative expenses		—		(722,900)		—		(5,834)		(728,734)
Operating loss		—		(130,242)		—		(5,834)		(132,335)

Other income (expenses)
Interest income		76,081		170,819		—		1,516		248,416
Interest expense		(569,810)		(212,568)		—		—		(782,378)
Other income, Net		(188,615)		(2,630)		1,309,182		—		1,117,937
Total other (expenses) income		(682,344)		(44,379)		1,309,182		1,516		583,975

Income (loss) before income taxes		(682,344)		(174,621)		1,309,182		(4,318)		451,640
Income tax		(250,864)		—		—		—		(250,864)
Net Income(loss)	$	(933,208)	$	(174,621)	$	1,309,182	$	(4,318)	$	200,776


	Six Months Ended June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,009	$	12,574,657	$	—	$	—	$	12,776,666
Cost of revenues		(447,680)		(10,689,255)		—		—		(11,136,935)
Gross profit		(245,671)		1,885,402		—		—		1,639,731

Operating expenses		(86,428)		(854,171)		—		—		(940,599)
General and administrative expenses		(575,633)		(598,159)		—		(366,800)		(1,540,592)
Operating loss		(907,732)		433,072		—		(366,800)		(841,460)

Other income (expenses)
Interest income		16,853		300,334		—		178,234		495,420
Interest expense		—		(212,568)		—		(1,151,477)		(1,364,044)
Other income, Net		362,241		(2,913)		25,468		—		384,796
Total other (expenses) income		379,094		84,853		25,468		(973,243)		(483,828)

Income (loss) before income taxes		(528,638)		517,925		25,468		(1,340,043)		(1,325,288)
Income tax		(361,315)		—		—		—		(361,315)
Net Income(loss)	$	(889,953)	$	517,925	$	25,468	$	(1,340,043)	$	(1,686,603)

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	Three Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	14,496	$	34,625,035	$	—	$	—	$	34,639,531
Cost of revenues		153,943		(30,239,202)		—		—		(30,085,259)
Gross profit		168,440		4,385,832		—		—		4,554,272

Operating expenses		(1,986)		(221,170)		—		—		(223,156)
General and administrative expenses		(410,539)		(529,976)		—		(5,834)		113,603
Operating loss		(244,085)		4,694,638		—		(5,834)		4,444,719

Other income (expenses)
Interest income		(8,383)		218,526		—		1,516		211,659
Interest expense		678,941		(1,261,677)		—		—		(582,736)
Other income, Net		(1,951,556)		(45,358)		191,245		—		(1,805,669)
Total other (expenses) income		(1,280,998)		(1,088,509)		191,245		1,516		(2,176,746)

Income (loss) before income taxes		(1,525,084)		3,606,129		191,245		(4,318)		2,267,973
Income tax		(1,333,194)		—		—		—		(1,333,194)
Net Income(loss)	$	(2,858,278)	$	3,606,129	$	191,245	$	(4,318)	$	934,779


	Six Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,264	$	45,677,672	$	—	$	—	$	45,879,936
Cost of revenues		(520,197)		(40,224,857)		—		—		(40,745,054)
Gross profit		(317,933)		5,452,815		—		—		5,134,882

Operating expenses		(408,210)		(544,375)		—		—		(952,585)
General and administrative expenses		(593,154)		(893,967)		—		(301,579)		(1,788,700)
Operating loss		(1,319,297)		4,014,473		—		(301,579)		2,393,597

Other income (expenses)
Interest income		5,691		460,939		—		501		467,131
Interest expense		1,350,322		(3,695,194)		—		—		(2,344,872)
Other income, Net		(1,782,544)		(54,579)		82,766		—		(1,754,357)
Total other (expenses) income		(426,531)		(3,288,834)		82,766		501		(3,632,098)

Income (loss) before income taxes		(1,745,829)		725,639		82,766		(301,078)		(1,238,501)
Income tax		(1,333,212)		—		—		—		(1,333,212)
Net Income(loss)	$	(3,079,041)	$	725,639	$	82,766	$	(301,078)	$	(2,571,713)

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	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
As of June 30, 2023
Real estate property under development	$	—	$	117,569,883	$	—	$	—	$	117,569,883
Total assets		14,376,766		145,225,314		23,201,682		74,418,625		257,222,387

As of June 30, 2022
Real estate property under development		—		144,238,751		—		—		144,238,751
Total assets	$	20,470,992	$	182,241,498	$	28,139,219	$	68,245,158	$	299,096,867

NOTE 22 – RELATED PARTY TRANSACTIONS

None.

NOTE 23 - SUBSEQUENT EVENT

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred from July 1, 2023, up through the date the Company issued the interim financial statements and identified no reportable events.

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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 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 (“LYSH”), 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”, “we”, “our” or “us”.

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

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RECENT DEVELOPMENTS

Our major business is real estate development and sales, real estate marketing services, real estate investments, property leasing services, property management services, and real estate development in the PRC. Additionally, we expand our business to investment activities such as entity investments.

Since we started our agency sales operations in 2001, we have established a reputation as a sales and marketing agency for new projects. With our accumulated expertise and experience, we intend to take a more aggressive role by participating in property investments. We plan to select property developers with outstanding qualifications as our strategic partners, and continue to build strength in design, planning, positioning and marketing services.

In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters for the purpose of developing villa-style residential housing. The LYSY project has divided into three phases. Phase 1 has completed construction of 121 units in May 2015 and sold 119 units out of all 121 units as of July 31, 2023. Phase 2 was divided into north and south area and completed construction of 84 units at the end of 2020. All 84 units have been sold during phase 2 by July 31, 2023. Phase 3 began construction in first quarter of 2021and sold 21 units out of 51units as of July 31,2023. In September 2020, the Company expanded the Linyi project by purchasing additional 54,312 square meters in the amount of 228 million RMB for future development.

On March 13, 2014, the Company signed a joint development agreement with Zhongji Pufa Real Estate Co. (“SHGXL”). According to this agreement, the Company has obtained a right to develop the Guangxinglu (“GXL”) project, located at 182 lane Guangxinglu, Putuo district, Shanghai, PRC. This project covers a site area of approximately 2,502 square meters for the development of one apartment building. In 2016, the government issued a regulation prohibiting the by-unit sale of commercial-use buildings. The apartment unit sale for the GXL project was put on hold until the government reviewed our project’s status. During that time, we rented any unsold apartment units while not recognizing the units previously sold before the regulation. In March 2019, we received government confirmation that our project cannot be sold on a unit-by-unit basis going forward. The Company decided to continue operating the project by renting the units. These unsold units are recognized as investment in properties in Note 8. We also recognized all the units that were sold before the regulation in our financial statement for the fiscal year ended December 31, 2019.

SHDEW was established in June 2013 with its business as a skincare and cosmetic company. SHDEW develops its own skincare products as well as improving its online ecommerce platform. SHDEW sells products under its own brands as well as the products from third parties. The products include skincare, cosmetics, personal care products such as soaps, shampoos, skin care devices and children’s apparel. SHDEW has an online shopping app, “庭秘密,” where consumers can purchase its cosmetics and skincare products as well as products imported into China.

In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters. In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a GFA of 82,218 square meters totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 square meters totaling 873 units. As of July 31, 2023, the Company sold 665 units out of 679 units of the first phase and sold 453 out of 873 units of the second phase.

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RECENTLY ADOPTED ACCOUNTING STANDARDS

NEW ACCOUNTING PRONOUNCEMENTS

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.

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Revenue Recognition

All revenues represent gross revenues less sales and business tax.

Real Estate Property under Development

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Income Taxes

The Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. Deferred tax assets or liabilities were off-set by a 100% valuation allowance; therefore there has been no recognized benefit as of June 30, 2023 and December 31, 2022.

RESULTS OF OPERATIONS

We provide the following discussion and analyses of our changes in financial condition and results of operations for the three months and six months periods ended June 30, 2023 with comparisons to the same periods ended June 30, 2022.

Revenue

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


	Three Months Ended June 30,					Six Months Ended June 30,
	2023	% to total	2022	% to total	% change	2023	% to total	2022	% to total	% change
Agency sales	—	—	—	—	—	—	—	—	—	—
Property management	132,174	1.9	108,966	0.3	21	485,878	3.8	432,635	0.9	12
House sales	6,910,729	98.1	34,948,572	99.7	(80)	12,290,788	96.2	45,447,301	99.1	(73)
Net revenues	7,042,903	100	35,057,538	100	(80)	12,776,666	100	45,879,936	100	(72)

The net revenue in the second quarter of 2023 was $7,042,903, which decreased 80% from $35,057,538 in the second quarter of 2022. The net revenue in the first two quarters of 2023 was $12,776,666, which represented a decrease of 72% from $45,879,936, in the first two quarter of 2022. In the second quarter of 2023, property management, and house sales represented 1.9%, and 98.1% of our net revenues, respectively. For the first two quarters of 2023, property management, and house sales represented 3.8%, and 96.2% of our net revenues, respectively. The decrease in net revenue in the first two quarter of 2023 was mainly due to less recognized sales revenue of the Huaian project in the first quarter of 2023. Property management and house sales are both part of our real estate development industry segment.

Property Management

Property management represented 3.8% of our revenue for the first two quarters of 2023 and revenue from property management increased by 12% compared with the same period in 2022.

House sales

For the first two quarters of 2023, the Company recognized revenue of house sales of Huaian project. House sales represented 96.2% of our revenue for the first two quarters of 2023.

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Cost of Revenue

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


	Three Months Ended June 30,					Six Months Ended June 30,
	2023	% to total	2022	% to total	% change	2023	% to total	2022	% to total	% change
Agency sales	—	—	—	—	—	—	—	—	—	—
Property management	351,395	5.9	392,400	1.3	(10)	773,154	6.9	792,132	1.9	(2)
House sales	5,604,991	94.1	30,089,273	98.7	(81)	10,363,781	93.1	39,952,922	98.1	(74)
Cost of revenues	5,956,386	100	30,481,673	100	(80)	11,136,935	100	40,745,054	100	(73)

The cost of revenues for the second quarter of 2023 was $5,956,386, which decreased 80% from $30,481,673 during the second quarter of 2022. The cost of revenues for the first two quarters of 2023 was $11,136,935, which decreased 73% from $40,745,054 during the first two quarters of 2022. For the second quarter of 2023, property management, and house sales represented 5.9%, and 94.1% of our cost of revenues, respectively. For the first two quarters of 2023, property management, and house sales represented 6.9%, and 93.1% of our cost of revenues, respectively. The decrease in the cost of revenue in the second quarter and first two quarters of 2023 was mainly because the cost of revenue declined due to less house sales in the Huaian project Property management.

The cost of revenue for property management for the first two quarters of 2023 was $773,154, a decrease of 2% from $792,132 for the same period in 2022. This was mainly due to less business for the property management.

House sales

For the first two quarters of 2023, the Company recognized cost of revenue for house sales of the Huaian project. House sales represented 93.1% of our cost of revenue for the first two quarters of 2023.

Operating Expenses

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


	Three Months Ended June 30,					Six Months Ended June 30,
	2023	% to total	2022	% to total	% change	2023	% to total	2022	% to total	% change
Agency sales	—	—	—	—	—	—	—	—	—	—
Property management	169,230	34.5	14,611	5.8	1,058	402,265	42.8	436,929	45.9	(8)
House sales	320,891	65.5	235,672	94.2	36	538,335	57.2	515,656	54.1	4
Operating expenses	490,121	100	250,283	100	96	940,599	100	952,585	100	(1)

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The operating expenses for the second quarter of 2023 were $490,121, which increased 96% from $250,283 for the same period in 2022. The total operating expenses for the first two quarters of 2023 were $940,599, which decreased 1% from $952,585 for the same period in 2022. In the second quarter of 2023, property management, and house sales represented 34.5%, and 65.5% of the total operating expenses, respectively. For the first two quarters of 2023, property management, and house sales represented 42.8%, 57.2% of the total operating expenses, respectively. The decrease in the overall operating expense resulted from the decrease in house sales for the second quarter and the first two quarters of 2023.

Property management

The operating expenses for property management for the first two quarters of 2023 were $402,265, a decrease of 8% from $436,929 in the same period in 2022. The decrease is mainly due to consulting expenses relating to the business in the period in 2023.

House sales

The operating expenses for house sales for the first two quarters of 2023 were $538,335, which increased 4% from $515,656 for the same period in 2022.

General and Administrative Expenses

General and administrative expenses for the first two quarters of 2023 were $1,540,592, which decreased by 13.9% from $1,788,700 for same period in 2022.

Other income, net

Other income, net for the first two quarters of 2023 was the gain of $384,796, an increase of 122% from the loss $1,776,436 for the same period in 2022. The income increased mainly due to the paper loss of our stock market investment.

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 as of June 30, 2023 was $4504,273. The amounts due are as follows:

Amount due to Lin Chi-Jung

The balances due to Lin Chi-Jung consist of temporary advances in the amount of $484,213 and are unsecured, interest-free and have no fixed term of repayment.

Amount due to Lin Hsin Hung

The amount of $20,060 represents the salary payable to Lin Hsin Hung.

Amount due to affiliate

The amounts due to SHSJ and JXSY, in the amounts of $48,641,031 and $490,361 were intercompany transfers for day to day operation.

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LIQUIDITY AND CAPITAL RESOURCES

For the first two quarters of 2023, our principal sources of cash were revenues from our house sales collection and property management business, as well as the dividend receipt from the affiliates. 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 $18,359,017.

The Company’s operating activities used cash in the amount of $10,551,572, which was primarily attributable to the dividends distribution.

The Company’s investing activities provided cash resources of $288,981, which was primarily attributable to the net cash from transaction financial assets.

The potential cash needs for 2023 include the investment in transactional financial assets, the rental guarantee payments and promissory deposits for various property projects as well as our development of the Linyi project and the Huai’an project.

Capital Resources

Considering our cash position, available credit facilities and cash generated from operating activities, we believe that we have sufficient funds to operate our existing business for the next twelve months. If our business otherwise grows more rapidly than we currently predict, we plan to raise funds through the issuance of additional shares of our equity securities in one or more public or private offerings. We will also consider raising funds through credit facilities obtained with lending institutions. There can be no guarantee that we will be able to obtain such funds through the issuance of debt or equity or obtain funds that are with terms satisfactory to management and our board of directors.

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, 2022, 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 2015, 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

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U.S. 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 2015, 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.

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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, 2022.

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.

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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*		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.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Filed herewith

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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: August 17, 2023
By: /s/ Zhang, Jian
Zhang, Jian, Chief Executive Officer, Principal Executive Officer

Date: August 17, 2023
By: /s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer, Principal Financial Officer

EXHIBIT 31.1

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

I, Zhang, Jian, certify that:

1. I have reviewed this Quarterly Report for the six months ended June 30, 2023 on Form 10−Q 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 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 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: August 17, 2023
By:	/s/ Zhang, Jian
Zhang, Jian, 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 on Form 10-Q of SUNRISE REAL ESTATE GROUP, INC.;

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:

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):

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: August 17, 2023
By:	/s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer, Principal Financial Officer

EXHIBIT 32.1

Section 1350 Certification

In connection with this Quarterly Report of SUNRISE REAL ESTATE GROUP, INC. (the “Company”) on Form 10−Q for the six months ended June 30, 2023 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: August 17, 2023
By:	/s/ Zhang, Jian
Zhang, Jian Chief Executive Officer

Date: August 17, 2023
By:	/s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2023	Jul. 31, 2023
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	000-32585
Entity Registrant Name	SUNRISE REAL ESTATE GROUP, INC.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-2713701
Entity Address, Address Line One	No. 18, Panlong Road
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Entity Address, Postal Zip Code	201702
City Area Code	+ 86-21
Local Phone Number	6067-3830
Title of 12(b) Security	None
Trading Symbol	srre
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		68,691,925
Entity Central Index Key	0001083490
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 18,359,017	$ 33,201,354
Restricted cash	45,789,248	43,869,156
Transactional financial assets	10,282,449	10,960,511
Accounts receivable	179,325	204,518
Real estate property under development	117,569,883	120,302,022
Amount due from an unconsolidated affiliate	15,882,006	16,502,409
Other receivables and deposits, net	13,259,147	10,733,460
Total current assets	221,321,075	235,773,430
Property and equipment, net	819,133	1,001,077
Investment properties, net	21,159,443	22,673,139
Investment in an unconsolidated affiliate	12,290,133	12,751,061
Goodwill	1,003,503	1,243,194
Other investments	629,100	652,693
Total assets	257,222,387	274,094,594
Current liabilities
Promissory notes payable	1,383,930	1,435,833
Accounts payable	26,341,832	22,372,938
Customer deposits	32,760,936	34,742,361
Other payables and accrued expenses	7,214,997	7,587,515
Other taxes payable	233,298	255,175
Income taxes payable	1,387,499	1,848,666
Dividends payable		10,303,789
Total current liabilities	118,958,157	128,277,659
Long-term income tax payable	539,211	1,078,422
Total liabilities	119,497,368	129,356,081
Commitments and contingencies
Shareholders' equity
Common stock, par value $0.01 per share; 200,000,000 shares Authorized; 68,691,925 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	686,919	686,919
Additional paid-in capital	8,110,008	8,110,008
Statutory reserve	3,986,618	3,986,618
Retained Earnings	107,991,305	109,300,636
Accumulated other comprehensive income	4,584,289	9,447,265
Total deficit of Sunrise Real Estate Group, Inc.	125,359,139	131,531,446
Non-controlling interests	12,365,880	13,207,067
Total shareholders' equity	137,725,019	144,738,513
Total liabilities and shareholders' equity	257,222,387	274,094,594
Affiliated Entity
Current liabilities
Amount due	49,131,392	49,251,273
Shareholders
Current liabilities
Amount due	$ 504,273	$ 480,109

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	68,691,925	68,691,925
Common stock, shares outstanding	68,691,925	68,691,925

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 7,042,904	$ 34,639,531	$ 12,776,666	$ 45,879,936
Cost of revenues	(5,956,385)	(30,085,259)	(11,136,935)	(40,745,054)
Gross profit (loss)	1,086,519	4,554,272	1,639,731	5,134,882
Operating expenses	(490,120)	(223,156)	(940,599)	(952,585)
General and administrative expenses	(728,734)	113,603	(1,540,592)	(1,788,700)
Operating profit (loss)	(132,335)	4,444,719	(841,460)	2,393,597
Other income (expenses)
Interest income	248,416	211,659	495,420	467,131
Interest expense	(782,378)	(582,736)	(1,364,044)	(2,344,872)
Equity in net gain (loss) of an affiliate		(434)		22,079
Other income (loss), net	1,117,937	(1,805,235)	384,796	(1,776,436)
Total other Income	583,975	(2,176,746)	(483,828)	(3,632,098)
Income (loss) before income taxes	451,640	2,267,973	(1,325,288)	(1,238,501)
Income tax benefit (expense)	(250,864)	(1,333,194)	(361,315)	(1,333,212)
Net income (loss)	200,776	934,779	(1,686,603)	(2,571,713)
Less: Net (income) loss attributable to non-controlling interests	(141,219)	(484,077)	(377,272)	(2,124,456)
Net income attributable to shareholders of Sunrise Real Estate Group, Inc.	341,995	1,418,856	(1,309,331)	(447,257)
Other comprehensive income (loss) Foreign currency translation adjustment	(7,240,930)	(10,412,132)	(5,326,891)	(9,569,069)
Comprehensive income (loss)	(7,040,154)	(9,477,353)	(7,013,494)	(12,140,782)
Less: Comprehensive income (loss) attributable to non-controlling interests	782,428	1,248,496	841,187	2,805,277
Total comprehensive income (loss) attributable to shareholders	$ (6,257,726)	$ (8,228,857)	$ (6,172,307)	$ (9,335,505)
Earnings per share - basic	$ 0.00	$ 0.02	$ (0.02)	$ (0.01)
Earnings per share - diluted	$ 0.00	$ 0.02	$ (0.02)	$ (0.01)
Weighted average common shares outstanding - Basic	68,691,925	68,691,925	68,691,925	68,691,925
Weighted average common shares outstanding - Diluted	68,691,925	68,691,925	68,691,925	68,691,925

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Statutory Reserve	Retained Earnings (Deficits)	Accumulated Other Comprehensive Income	Non-controlling Interests	Total
Beginning Balance at Dec. 31, 2021	$ 686,919	$ 8,050,008	$ 3,986,618	$ 117,729,224	$ 24,738,423	$ 15,430,432	$ 170,621,624
Beginning Balance (in shares) at Dec. 31, 2021	68,691,925
Profit (loss) for the year				(447,257)		(2,124,456)	(2,571,713)
Translation of foreign operations	$ 0	0	0	0	(8,888,248)	(680,821)	(9,569,069)
Ending Balance at Jun. 30, 2022	$ 686,919	8,050,008	3,986,618	117,281,967	15,850,175	12,625,155	158,480,842
Ending Balance (in shares) at Jun. 30, 2022	68,691,925
Beginning Balance at Mar. 31, 2022	$ 686,919	8,050,008	3,986,618	115,928,818	25,497,888	13,873,651	168,023,902
Beginning Balance (in shares) at Mar. 31, 2022	68,691,925
Profit (loss) for the year				1,353,149		(484,077)	869,072
Translation of foreign operations					(9,647,713)	(764,419)	(10,412,132)
Ending Balance at Jun. 30, 2022	$ 686,919	8,050,008	3,986,618	117,281,967	15,850,175	12,625,155	158,480,842
Ending Balance (in shares) at Jun. 30, 2022	68,691,925
Beginning Balance at Dec. 31, 2022	$ 686,919	8,110,008	3,986,618	109,300,636	9,447,265	13,207,067	144,738,513
Beginning Balance (in shares) at Dec. 31, 2022	68,691,925
Profit (loss) for the year				(1,309,331)		(377,272)	(1,686,603)
Translation of foreign operations	$ 0	0	0	0	(4,862,976)	(463,915)	(5,326,891)
Ending Balance at Jun. 30, 2023	$ 686,919	8,110,008	3,986,618	107,991,305	4,584,289	12,365,880	137,725,019
Ending Balance (in shares) at Jun. 30, 2023	68,691,925
Beginning Balance at Mar. 31, 2023	$ 686,919	8,110,008	3,986,618	107,649,310	11,184,010	13,148,308	144,765,173
Beginning Balance (in shares) at Mar. 31, 2023	68,691,925
Profit (loss) for the year				341,995		(141,219)	200,776
Translation of foreign operations					(6,599,721)	(641,209)	(7,240,930)
Ending Balance at Jun. 30, 2023	$ 686,919	$ 8,110,008	$ 3,986,618	$ 107,991,305	$ 4,584,289	$ 12,365,880	$ 137,725,019
Ending Balance (in shares) at Jun. 30, 2023	68,691,925

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income (loss)	$ (1,686,603)	$ (2,571,713)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	1,179,643	820,935
Loss (Gain) on disposal of property, plant and equipment	32,902	16,660
Changes in assets and liabilities
Accounts receivable	18,513	12,768
Real estate property under development	(1,681,300)	26,428,443
Customer Deposits	(754,602)	(49,525,305)
Amount due from unconsolidated affiliates	1,751,782	432,503
Other receivables and deposits	(3,030,354)	38,807
Deferred tax assets		839,914
Net cash from directors	43,182	(47,150)
Accounts payable	4,968,945	(740,128)
Dividends	(10,329,001)	533,975
Other payables and accrued expenses	(102,177)	(453,503)
Other taxes payable	(13,160)	(138,609)
Income taxes payable	(949,342)	61,983
Net cash provided by (used in) operating activities	(10,551,572)	(24,290,420)
Cash flows from investing activities
Purchases of property and equipment	(4,164)	(85,166)
Net Cash from Transactional financial assets	293,145	(1,070,930)
Net cash provided by (used in) investing activities	288,981	(1,156,096)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,659,654)	(4,405,686)
Net increase in cash, cash equivalents and restricted cash	(12,922,245)	(29,852,202)
Cash, cash equivalents and restricted cash at beginning of period	77,070,510	97,911,619
Cash, cash equivalents and restricted cash at end of period	64,148,265	68,059,417
Supplemental disclosure of cash flow information
Income taxes paid	1,361,466	1,333,212
Interest paid	$ 0	$ 0

ORGANIZATION AND DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND DESCRIPTION OF BUSINESS

ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

As of June 30, 2023, the Company has the following major subsidiaries and equity investment.


			% of Ownership	Relationship
	Date of	Place of	held by the	with the
Company Name	Incorporation	Incorporation	Company	Company	Principal Activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands	100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands	100%	Subsidiary	Investment holding
Shangyang International Pte.Ltd (“SYSG”)	August 19, 2022	Singapore	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 Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC	75.25%¹	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC	75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC	34%²	Subsidiary	Real estate development
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC	100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC	100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC	100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC	49%	Equity investment	Real estate development
Zhong Ji Pu Fa Real Estate Company Limited (SHGXL)	March 13, 2012	PRC	100%	Equity investment	Real estate development.
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC	19.91%³	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC	100%	Subsidiary	Investment holding
Shanghai Taobuting Media Co., Ltd (TBT)	July 1, 2020	PRC	7.5%	Subsidiary	Streaming platform
Huai’an Zhanbao Industrial Co., Ltd. (“HAZB”)	December 6, 2018	PRC	78.46%⁴	Subsidiary	Investment holding
Huai’an Tianxi Real Estate Development Co., Ltd (“HATX”)	October, 2018	PRC	78.46%⁴	Subsidiary	Investment holding

1	After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY: 49%, SHXJY: 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE): 12.5%, totaling 75.25% equity interest in SZSY.

3	In December 2019, SHDEW issued an employee stock bonus where its employees received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91%.

4	We established HATX for real estate development in Huai’an through HAZB, of which we have 78.46% ownership.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Principles of Consolidation

Foreign Currency Translation and Transactions

The exchange rates as of June 30, 2023 and December 31, 2022 are $1: RMB7.2258 and $1: RMB6.9646, respectively.

Real Estate Property under Development

Long Term Investments

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

Investment in Unconsolidated Affiliates

Other Investments

Revenue Recognition

All revenues represent gross revenues less sales and business tax.

Net Earnings (Loss) per Common Share

Recently Adopted Accounting Standards

New Accounting Pronouncements

RESTRICTED CASH

6 Months Ended

Jun. 30, 2023

RESTRICTED CASH

RESTRICTED CASH

NOTE 3 – RESTRICTED CASH

TRANSACTIONAL FINANCIAL ASSETS

6 Months Ended

Jun. 30, 2023

TRANSACTIONAL FINANCIAL ASSETS

TRANSACTIONAL FINANCIAL ASSETS

NOTE 4 – TRANSACTIONAL FINANCIAL ASSETS

REAL ESTATE PROPERTY UNDER DEVELOPMENT

6 Months Ended

Jun. 30, 2023

REAL ESTATE PROPERTY UNDER DEVELOPMENT

REAL ESTATE PROPERTY UNDER DEVELOPMENT

NOTE 5 – REAL ESTATE PROPERTY UNDER DEVELOPMENT

As of June 30, 2022, land use rights included in real estate property under development totaled $117,569,883.

OTHER RECEIVABLES AND DEPOSITS, NET

6 Months Ended

Jun. 30, 2023

OTHER RECEIVABLES AND DEPOSITS, NET

OTHER RECEIVABLES AND DEPOSITS, NET

NOTE 6 – OTHER RECEIVABLES AND DEPOSITS, NET


	June 30,		December 31,
	2023		2022
Advances to staff	$	320,856		372,262
Rental deposits		709,260		735,860
Prepaid expense		493,603		28,153
Prepaid tax		7,279,391		7,783,185
Other receivables		4,456,037		1,859,000
	$	13,259,147	$	10,733,460

Other receivables and deposits as of June 30, 2023 and December 31, 2022 were stated net of allowance for doubtful accounts of $1,188,602 and $1,233,179, respectively.

PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2023

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

NOTE 7 – PROPERTY AND EQUIPMENT, NET


	June 30,		December 31,
	2023		2022
Furniture and fixtures	$	255,329	$	233,960
Computer and office equipment		63,679		135,163
Motor vehicles		720,176		747,185
Properties		2,093,812		2,172,338
		3,132,996		3,278,646
Less: Accumulated depreciation		(2,313,863)		(2,277,569)
	$	819,133	$	1,001,077

Depreciation and amortization expense for property and equipment amounted to $1,179,643 and $820,935 for the six months ended June 30, 2023 and 2022, respectively.

INVESTMENT PROPERTIES, NET

6 Months Ended

Jun. 30, 2023

INVESTMENT PROPERTIES, NET

INVESTMENT PROPERTIES, NET

NOTE 8 – INVESTMENT PROPERTIES, NET


	June 30,		December 31,
	2023		2022
Investment properties	$	32,161,696	$	33,367,887
Less: Accumulated depreciation		(11,002,253)		(10,694,748)
	$	21,159,443	$	22,673,139

Depreciation and amortization expense for investment properties amounted to $1,061,518 and $774,249 for the six months ended June 30, 2023 and 2022, respectively.

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE

6 Months Ended

Jun. 30, 2023

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE

INVESTMENTS IN AND AMOUNT DUE FROM UNCONSOLIDATED AFFILIATES

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

The investments in unconsolidated affiliates primarily consist of SHDEW (19.91)%. As of June 30, 2023, the investment amount in SHDEW was $12,262,454 and SHTX was $27,679.

OTHER INVESTMENTS, NET

6 Months Ended

Jun. 30, 2023

OTHER INVESTMENTS, NET

OTHER INVESTMENTS, NET

NOTE 10 – OTHER INVESTMENTS, NET

GOODWILL

6 Months Ended

Jun. 30, 2023

GOODWILL

GOODWILL

NOTE 11 – GOODWILL

PROMISSORY NOTES PAYABLE

6 Months Ended

Jun. 30, 2023

PROMISSORY NOTES PAYABLE

PROMISSORY NOTES PAYABLE

NOTE 12 – PROMISSORY NOTES PAYABLE

For the six months ended June 30, 2023, the interest expense related to these promissory notes was $NIL.

AMOUNTS DUE TO DIRECTORS

6 Months Ended

Jun. 30, 2023

Directors

AMOUNTS DUE TO DIRECTORS

AMOUNTS DUE TO DIRECTORS

NOTE 13 – AMOUNTS DUE TO DIRECTORS


	June 30,		December 31,
	2023		2022
Lin Chi-Jung	$	484,213	$	459,299
Lin Hsin-Hung		20,060		20,811
	$	504,273	$	480,109

(a)	The balances due to Lin Chi-Jung consist of temporary advances.

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

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

OTHER PAYABLES AND ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2023

OTHER PAYABLES AND ACCRUED EXPENSES

OTHER PAYABLES AND ACCRUED EXPENSES

NOTE 14 – OTHER PAYABLES AND ACCRUED EXPENSES


	June 30,		December 31,
	2023		2022
Accrued staff commission and bonus	$	62,374	$	185,124
Rental deposits received		152,799		164,566
Bid bond		87,188		90,457
Dividends payable to non-controlling interest		186,214		193,198
Other payables		6,726,422		6,954,170
	$	7,214,997	$	7,587,515

ACCOUNTS PAYABLE

6 Months Ended

Jun. 30, 2023

ACCOUNTS PAYABLE

ACCOUNTS PAYABLE

NOTE 15 – ACCOUNT PAYABLE

AMOUNT DUE TO AFFILIATES	6 Months Ended
AMOUNT DUE TO AFFILIATES	Jun. 30, 2023
Due To Affiliate
AMOUNT DUE TO AFFILIATES
AMOUNT DUE TO AFFILIATES	NOTE 16 – AMOUNT DUE TO AFFILIATES As of June 30, 2023, the amount due to Shanghai Shengji (“SHSJ”), a shareholder of HATX, was $48,641,031 and JXSY was $490,361, was an intercompany transfer for day-to-day operations.

CUSTOMER DEPOSITS

6 Months Ended

Jun. 30, 2023

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS

NOTE 17 – CUSTOMER DEPOSITS

INCOME TAX PAYABLE

6 Months Ended

Jun. 30, 2023

INCOME TAX PAYABLE

INCOME TAX PAYABLE

NOTE 18 – INCOME TAX PAYABLE

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 19 – COMMITMENTS AND CONTINGENCIES

Operating Lease Commitments

As of June 30, 2023, the Company had the following operating lease obligations.


	Amount
Within one year	$	10,843
Two to five years		—
	$	10,843

STATUTORY RESERVE

6 Months Ended

Jun. 30, 2023

STATUTORY RESERVE

STATUTORY RESERVE

NOTE 20 – STATUTORY RESERVE

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 21 - SEGMENT INFORMATION


	Three Months Ended June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	—	$	7,042,904	$	—	$	—	$	7,042,904
Cost of revenues		—		(5,956,385)		—		—		(5,956,385)
Gross profit		—		1,086,519		—		—		1,086,519

Operating expenses		—		(493,861)		—		—		(490,120)
General and administrative expenses		—		(722,900)		—		(5,834)		(728,734)
Operating loss		—		(130,242)		—		(5,834)		(132,335)

Other income (expenses)
Interest income		76,081		170,819		—		1,516		248,416
Interest expense		(569,810)		(212,568)		—		—		(782,378)
Other income, Net		(188,615)		(2,630)		1,309,182		—		1,117,937
Total other (expenses) income		(682,344)		(44,379)		1,309,182		1,516		583,975

Income (loss) before income taxes		(682,344)		(174,621)		1,309,182		(4,318)		451,640
Income tax		(250,864)		—		—		—		(250,864)
Net Income(loss)	$	(933,208)	$	(174,621)	$	1,309,182	$	(4,318)	$	200,776


	Six Months Ended June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,009	$	12,574,657	$	—	$	—	$	12,776,666
Cost of revenues		(447,680)		(10,689,255)		—		—		(11,136,935)
Gross profit		(245,671)		1,885,402		—		—		1,639,731

Operating expenses		(86,428)		(854,171)		—		—		(940,599)
General and administrative expenses		(575,633)		(598,159)		—		(366,800)		(1,540,592)
Operating loss		(907,732)		433,072		—		(366,800)		(841,460)

Other income (expenses)
Interest income		16,853		300,334		—		178,234		495,420
Interest expense		—		(212,568)		—		(1,151,477)		(1,364,044)
Other income, Net		362,241		(2,913)		25,468		—		384,796
Total other (expenses) income		379,094		84,853		25,468		(973,243)		(483,828)

Income (loss) before income taxes		(528,638)		517,925		25,468		(1,340,043)		(1,325,288)
Income tax		(361,315)		—		—		—		(361,315)
Net Income(loss)	$	(889,953)	$	517,925	$	25,468	$	(1,340,043)	$	(1,686,603)


	Three Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	14,496	$	34,625,035	$	—	$	—	$	34,639,531
Cost of revenues		153,943		(30,239,202)		—		—		(30,085,259)
Gross profit		168,440		4,385,832		—		—		4,554,272

Operating expenses		(1,986)		(221,170)		—		—		(223,156)
General and administrative expenses		(410,539)		(529,976)		—		(5,834)		113,603
Operating loss		(244,085)		4,694,638		—		(5,834)		4,444,719

Other income (expenses)
Interest income		(8,383)		218,526		—		1,516		211,659
Interest expense		678,941		(1,261,677)		—		—		(582,736)
Other income, Net		(1,951,556)		(45,358)		191,245		—		(1,805,669)
Total other (expenses) income		(1,280,998)		(1,088,509)		191,245		1,516		(2,176,746)

Income (loss) before income taxes		(1,525,084)		3,606,129		191,245		(4,318)		2,267,973
Income tax		(1,333,194)		—		—		—		(1,333,194)
Net Income(loss)	$	(2,858,278)	$	3,606,129	$	191,245	$	(4,318)	$	934,779


	Six Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,264	$	45,677,672	$	—	$	—	$	45,879,936
Cost of revenues		(520,197)		(40,224,857)		—		—		(40,745,054)
Gross profit		(317,933)		5,452,815		—		—		5,134,882

Operating expenses		(408,210)		(544,375)		—		—		(952,585)
General and administrative expenses		(593,154)		(893,967)		—		(301,579)		(1,788,700)
Operating loss		(1,319,297)		4,014,473		—		(301,579)		2,393,597

Other income (expenses)
Interest income		5,691		460,939		—		501		467,131
Interest expense		1,350,322		(3,695,194)		—		—		(2,344,872)
Other income, Net		(1,782,544)		(54,579)		82,766		—		(1,754,357)
Total other (expenses) income		(426,531)		(3,288,834)		82,766		501		(3,632,098)

Income (loss) before income taxes		(1,745,829)		725,639		82,766		(301,078)		(1,238,501)
Income tax		(1,333,212)		—		—		—		(1,333,212)
Net Income(loss)	$	(3,079,041)	$	725,639	$	82,766	$	(301,078)	$	(2,571,713)


	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
As of June 30, 2023
Real estate property under development	$	—	$	117,569,883	$	—	$	—	$	117,569,883
Total assets		14,376,766		145,225,314		23,201,682		74,418,625		257,222,387

As of June 30, 2022
Real estate property under development		—		144,238,751		—		—		144,238,751
Total assets	$	20,470,992	$	182,241,498	$	28,139,219	$	68,245,158	$	299,096,867

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 22 – RELATED PARTY TRANSACTIONS

None.

SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2023

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 23 - SUBSEQUENT EVENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting and Principles of Consolidation	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.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of SRRE, CY-SRRE and LRY is U.S. dollars (“$”) and their financial records and the financial statements are maintained and 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. Gains and losses 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 June 30, 2023 and December 31, 2022 are $1: RMB7.2258 and $1: RMB6.9646, respectively. The RMB is not freely convertible into foreign currency and all foreign exchange transaction must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rate used in translation.
Real Estate Property under Development	Real Estate Property under Development Real estate property under development, which consists of residential unit sites and commercial and residential unit sites under development, is stated at the lower of carrying amounts or fair value 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. In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters(“sqm”) for the purpose of developing villa-style residential housing. The LYSY project is divided into three phases. Phase 1 completed construction of 121 units in May 2015 and sold 119 units by the end of July 31, 2023. Phase 2 was divided into north and south areas and completed construction of 84 units as of the end of 2020. All units were sold during phase 2 by the end of July 31, 2023. Phase 3 began construction in the first quarter of 2021 and pre-sold 21 units out of 51 units as of the end of July 31, 2023. In September 2020, the Company expanded the Linyi project by purchasing an additional 54,312 sqm for 228 million RMB for future development. In October 2018, HATX purchased property in Huai’an, Qingjiang Pu district with an area of 78,030sqm. In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of July 31, 2023, the Company sold 665 units, respectively, out of 679 units of the first phase and sold 453 units out of 873 units of the second phase.
Long Term Investments	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 did 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 the value of the investment that is not temporary. The Company did not record 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 measurement alternative which is measured at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. 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 measurement alternative method in the case of the investment in SHDEW and any decline in value is included in impairment of cost of the investment.
Revenue Recognition	Revenue Recognition Most of the Company’s revenue is derived from real estate sales in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset. All revenues represent gross revenues less sales and business tax. ASC 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASC 606 also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, ASC 606 requires extensive disclosures. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach with no restatement of comparative periods and no cumulative-effect adjustment to retained earnings recognized as of the date of adoption. A significant portion of the Company’s revenue is derived from development and sales of condominium real estate property in the PRC, with revenue previously recognized using the percentage of completion method. Under the new standard, to recognize revenue over time similar to the percentage of completion method, contractual provisions need to provide the Company with an enforceable right to payment and the Company has no alternative use of the asset. Historically, all contracts executed contained an enforceable right to home purchase payments and the Company had no alternative use of assets, therefore, the adoption of ASC 606 did not have a material impact on the Company’s consolidated financial statements.
Net Earnings (Loss) per Common Share	Net Earnings (Loss) per Common Share The Company computes net earnings (loss) per share in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Under the provisions of ASC 260, basic net earnings (loss) per share is computed by dividing net earnings (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net earnings (loss) per share recognizes common stock equivalents, however; potential common stock in the diluted EPS computation is excluded in net loss periods, as their effect is anti-dilutive.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02 which establishes new accounting and disclosure requirements for leases. ASU No. 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASU 2016-02 in the first quarter of 2022 using the effective date approach to recognize and measure leases as of the adoption date. The Company has elected to utilize the available practical expedient to not separate lease components from non-lease components as well as the package of practical expedients that allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. At the date of adoption on January 1, 2022, this guidance had no impact to the Company’s condensed consolidated financial statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, this ASU modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendments in this ASU are effective for the public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted this standard on January 1, 2022, which had no material impact to the Company’s condensed consolidated financial statements.
New Accounting Pronouncements	New Accounting Pronouncements Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss new accounting pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables)

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND DESCRIPTION OF BUSINESS

Schedule of major subsidiaries and equity investments


			% of Ownership	Relationship
	Date of	Place of	held by the	with the
Company Name	Incorporation	Incorporation	Company	Company	Principal Activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands	100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands	100%	Subsidiary	Investment holding
Shangyang International Pte.Ltd (“SYSG”)	August 19, 2022	Singapore	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 Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC	75.25%¹	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC	75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC	34%²	Subsidiary	Real estate development
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC	100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC	100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC	100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC	49%	Equity investment	Real estate development
Zhong Ji Pu Fa Real Estate Company Limited (SHGXL)	March 13, 2012	PRC	100%	Equity investment	Real estate development.
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC	19.91%³	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC	100%	Subsidiary	Investment holding
Shanghai Taobuting Media Co., Ltd (TBT)	July 1, 2020	PRC	7.5%	Subsidiary	Streaming platform
Huai’an Zhanbao Industrial Co., Ltd. (“HAZB”)	December 6, 2018	PRC	78.46%⁴	Subsidiary	Investment holding
Huai’an Tianxi Real Estate Development Co., Ltd (“HATX”)	October, 2018	PRC	78.46%⁴	Subsidiary	Investment holding

1	After an equity transaction in February 2015, the Company held equity in subsidiaries of SZSY as follows: SZXJY: 49%, SHXJY: 26% and Sunrise Real Estate Development Group, Inc. (CY-SRRE): 12.5%, totaling 75.25% equity interest in SZSY.

3	In December 2019, SHDEW issued an employee stock bonus where its employees received their vested shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91%.

4	We established HATX for real estate development in Huai’an through HAZB, of which we have 78.46% ownership.

OTHER RECEIVABLES AND DEPOSITS, NET (Tables)

6 Months Ended

Jun. 30, 2023

OTHER RECEIVABLES AND DEPOSITS, NET

Schedule of other receivables and deposit


	June 30,		December 31,
	2023		2022
Advances to staff	$	320,856		372,262
Rental deposits		709,260		735,860
Prepaid expense		493,603		28,153
Prepaid tax		7,279,391		7,783,185
Other receivables		4,456,037		1,859,000
	$	13,259,147	$	10,733,460

PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2023

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net


	June 30,		December 31,
	2023		2022
Furniture and fixtures	$	255,329	$	233,960
Computer and office equipment		63,679		135,163
Motor vehicles		720,176		747,185
Properties		2,093,812		2,172,338
		3,132,996		3,278,646
Less: Accumulated depreciation		(2,313,863)		(2,277,569)
	$	819,133	$	1,001,077

INVESTMENT PROPERTIES, NET (Tables)

6 Months Ended

Jun. 30, 2023

INVESTMENT PROPERTIES, NET

Schedule of investment properties, net


	June 30,		December 31,
	2023		2022
Investment properties	$	32,161,696	$	33,367,887
Less: Accumulated depreciation		(11,002,253)		(10,694,748)
	$	21,159,443	$	22,673,139

AMOUNTS DUE TO DIRECTORS (Tables)

6 Months Ended

Jun. 30, 2023

AMOUNTS DUE TO DIRECTORS

Schedule of amounts due to directors


	June 30,		December 31,
	2023		2022
Lin Chi-Jung	$	484,213	$	459,299
Lin Hsin-Hung		20,060		20,811
	$	504,273	$	480,109

(a)	The balances due to Lin Chi-Jung consist of temporary advances.

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

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

OTHER PAYABLES AND ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2023

OTHER PAYABLES AND ACCRUED EXPENSES

Schedule of other payables and accrued expenses


	June 30,		December 31,
	2023		2022
Accrued staff commission and bonus	$	62,374	$	185,124
Rental deposits received		152,799		164,566
Bid bond		87,188		90,457
Dividends payable to non-controlling interest		186,214		193,198
Other payables		6,726,422		6,954,170
	$	7,214,997	$	7,587,515

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2023

COMMITMENTS AND CONTINGENCIES

Schedule of operating lease obligations maturity


	Amount
Within one year	$	10,843
Two to five years		—
	$	10,843

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

Schedule of the company's operating segments


	Three Months Ended June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	—	$	7,042,904	$	—	$	—	$	7,042,904
Cost of revenues		—		(5,956,385)		—		—		(5,956,385)
Gross profit		—		1,086,519		—		—		1,086,519

Operating expenses		—		(493,861)		—		—		(490,120)
General and administrative expenses		—		(722,900)		—		(5,834)		(728,734)
Operating loss		—		(130,242)		—		(5,834)		(132,335)

Other income (expenses)
Interest income		76,081		170,819		—		1,516		248,416
Interest expense		(569,810)		(212,568)		—		—		(782,378)
Other income, Net		(188,615)		(2,630)		1,309,182		—		1,117,937
Total other (expenses) income		(682,344)		(44,379)		1,309,182		1,516		583,975

Income (loss) before income taxes		(682,344)		(174,621)		1,309,182		(4,318)		451,640
Income tax		(250,864)		—		—		—		(250,864)
Net Income(loss)	$	(933,208)	$	(174,621)	$	1,309,182	$	(4,318)	$	200,776


	Six Months Ended June 30, 2023
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,009	$	12,574,657	$	—	$	—	$	12,776,666
Cost of revenues		(447,680)		(10,689,255)		—		—		(11,136,935)
Gross profit		(245,671)		1,885,402		—		—		1,639,731

Operating expenses		(86,428)		(854,171)		—		—		(940,599)
General and administrative expenses		(575,633)		(598,159)		—		(366,800)		(1,540,592)
Operating loss		(907,732)		433,072		—		(366,800)		(841,460)

Other income (expenses)
Interest income		16,853		300,334		—		178,234		495,420
Interest expense		—		(212,568)		—		(1,151,477)		(1,364,044)
Other income, Net		362,241		(2,913)		25,468		—		384,796
Total other (expenses) income		379,094		84,853		25,468		(973,243)		(483,828)

Income (loss) before income taxes		(528,638)		517,925		25,468		(1,340,043)		(1,325,288)
Income tax		(361,315)		—		—		—		(361,315)
Net Income(loss)	$	(889,953)	$	517,925	$	25,468	$	(1,340,043)	$	(1,686,603)


	Three Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	14,496	$	34,625,035	$	—	$	—	$	34,639,531
Cost of revenues		153,943		(30,239,202)		—		—		(30,085,259)
Gross profit		168,440		4,385,832		—		—		4,554,272

Operating expenses		(1,986)		(221,170)		—		—		(223,156)
General and administrative expenses		(410,539)		(529,976)		—		(5,834)		113,603
Operating loss		(244,085)		4,694,638		—		(5,834)		4,444,719

Other income (expenses)
Interest income		(8,383)		218,526		—		1,516		211,659
Interest expense		678,941		(1,261,677)		—		—		(582,736)
Other income, Net		(1,951,556)		(45,358)		191,245		—		(1,805,669)
Total other (expenses) income		(1,280,998)		(1,088,509)		191,245		1,516		(2,176,746)

Income (loss) before income taxes		(1,525,084)		3,606,129		191,245		(4,318)		2,267,973
Income tax		(1,333,194)		—		—		—		(1,333,194)
Net Income(loss)	$	(2,858,278)	$	3,606,129	$	191,245	$	(4,318)	$	934,779


	Six Months Ended June 30, 2022
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	202,264	$	45,677,672	$	—	$	—	$	45,879,936
Cost of revenues		(520,197)		(40,224,857)		—		—		(40,745,054)
Gross profit		(317,933)		5,452,815		—		—		5,134,882

Operating expenses		(408,210)		(544,375)		—		—		(952,585)
General and administrative expenses		(593,154)		(893,967)		—		(301,579)		(1,788,700)
Operating loss		(1,319,297)		4,014,473		—		(301,579)		2,393,597

Other income (expenses)
Interest income		5,691		460,939		—		501		467,131
Interest expense		1,350,322		(3,695,194)		—		—		(2,344,872)
Other income, Net		(1,782,544)		(54,579)		82,766		—		(1,754,357)
Total other (expenses) income		(426,531)		(3,288,834)		82,766		501		(3,632,098)

Income (loss) before income taxes		(1,745,829)		725,639		82,766		(301,078)		(1,238,501)
Income tax		(1,333,212)		—		—		—		(1,333,212)
Net Income(loss)	$	(3,079,041)	$	725,639	$	82,766	$	(301,078)	$	(2,571,713)


	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
As of June 30, 2023
Real estate property under development	$	—	$	117,569,883	$	—	$	—	$	117,569,883
Total assets		14,376,766		145,225,314		23,201,682		74,418,625		257,222,387

As of June 30, 2022
Real estate property under development		—		144,238,751		—		—		144,238,751
Total assets	$	20,470,992	$	182,241,498	$	28,139,219	$	68,245,158	$	299,096,867

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	6 Months Ended
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	Jun. 30, 2023	May 27, 2020	Oct. 31, 2011
Wuhan Yuan Yu Long Real Estate Development Company Limited ("WHYYL")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Equity investment, Date of Incorporation	Dec. 28, 2009
Equity investment, Place of Incorporation	PRC
Equity investment, % of Ownership held by the Company	49.00%
Equity investment, Principal Activity	Real estate development
Shanghai Da Er Wei Trading Company Limited ("SHDEW")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Equity investment, Date of Incorporation	Jun. 06, 2013
Equity investment, Place of Incorporation	PRC
Equity investment, Principal Activity	Import and export trading
Zhong Ji Pu Fa Real Estate Company Limited (SHGXL)
ORGANIZATION AND DESCRIPTION OF BUSINESS
Equity investment, Date of Incorporation	Mar. 13, 2012
Equity investment, Place of Incorporation	PRC
Equity investment, % of Ownership held by the Company	100.00%
Equity investment, Principal Activity	Real estate development.
Sunrise Real Estate Development Group, Inc. (CY-SRRE)
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Apr. 30, 2004
Subsidiaries, Place of Incorporation	Cayman Islands
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Investment holding
Lin Ray Yang Enterprise Limited ("LRY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Nov. 13, 2003
Subsidiaries, Place of Incorporation	British Virgin Islands
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Investment holding
Shangyang International Pte.Ltd ("SYSG")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Aug. 19, 2022
Subsidiaries, Place of Incorporation	Singapore
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited ("SHXJY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Aug. 20, 2001
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Property brokerage services
Shanghai Shang Yang Real Estate consultation Company Limited ("SHSY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Feb. 05, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Property brokerage services
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Nov. 24, 2006
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	75.25%
Subsidiaries, Principal Activity	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited ("SZXJY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Jun. 25, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	75.00%
Subsidiaries, Principal Activity	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited ("LYSY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Oct. 13, 2011
Subsidiaries, percentage of Ownership held by the Company	34.00%		34.00%
Equity investment, Place of Incorporation	PRC
Equity investment, Principal Activity	Real estate development
Sanya Shang Yang Real Estate Consultation Company Limited ("SYSY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Sep. 18, 2008
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Property brokerage services
Shanghai Rui Jian Design Company Limited ("SHRJ")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Aug. 15, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited ("LYRL")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Mar. 06, 2012
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%	34.00%
Subsidiaries, Principal Activity	Investment holding
Shanghai Da Er Wei Trading Company Limited ("SHDEW")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, percentage of Ownership held by the Company	19.91%
Shanghai Hui Tian ("SHHT")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Jul. 25, 2014
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	100.00%
Subsidiaries, Principal Activity	Investment holding
Shanghai Taobuting MediaCo., Ltd. ("TBT")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Jul. 01, 2020
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	7.50%
Subsidiaries, Principal Activity	Streaming platform
Huaian Zhanbao Industrial Co., Ltd. ("HAZB")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Dec. 06, 2018
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	78.46%
Equity investment, Principal Activity	Investment holding
Huaian Tianxi Real Estate Development Co., Ltd ("HATX")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, Date of Incorporation	Oct. 31, 2018
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, percentage of Ownership held by the Company	78.46%
Subsidiaries, Principal Activity	Investment holding

ORGANIZATION AND DESCRIPTION OF BUSINESS - Additional Information (Details)			6 Months Ended	12 Months Ended
	Jul. 31, 2023 item	May 27, 2020	Jun. 30, 2023	Dec. 31, 2019 m² item	Nov. 30, 2019
Shareholder Of Szsy
ORGANIZATION AND DESCRIPTION OF BUSINESS
Equity interest			75.25%
SHDEW
ORGANIZATION AND DESCRIPTION OF BUSINESS
Percentage of ownership held by the company			19.91%	19.91%	20.38%
Shareholder Of Lysy
ORGANIZATION AND DESCRIPTION OF BUSINESS
Percentage of ownership held by the company			46.00%
Shareholder Of Lysy
ORGANIZATION AND DESCRIPTION OF BUSINESS
Percentage of equity interest in subsidiary transferred to parent			80.00%
Owners non controlling interest, ownership percentage			46.00%
SHXJY
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, percentage of Ownership held by the Company			26.00%
Linyi Rui Lin Construction and Design Company Limited ("LYRL")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, percentage of Ownership held by the Company		34.00%	100.00%
Linyi Rui Lin Construction and Design Company Limited ("LYRL") \| Nanjing Longchang Real Estate Development Group
ORGANIZATION AND DESCRIPTION OF BUSINESS
Percentage of issued and outstanding shares received		10.00%
HAZB \| Phase 1
ORGANIZATION AND DESCRIPTION OF BUSINESS
Number of Units				679
Area of Real Estate Property \| m²				82,218
HAZB \| Subsequent event \| Phase 1
ORGANIZATION AND DESCRIPTION OF BUSINESS
Number of Units	679
Suzhou Shang Yang Real Estate Consultation Company Limited ("SZSY")
ORGANIZATION AND DESCRIPTION OF BUSINESS
Subsidiaries, percentage of Ownership held by the Company			75.25%
SZSY
ORGANIZATION AND DESCRIPTION OF BUSINESS
Percentage of equity interest in subsidiary transferred to parent			12.50%
SZXJY [Member]
ORGANIZATION AND DESCRIPTION OF BUSINESS
Owners non controlling interest, ownership percentage			49.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		1 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jul. 31, 2023 item	Sep. 30, 2020 CNY (¥) m²	May 31, 2015 item	Mar. 31, 2021 item	Jun. 30, 2023 USD ($) item	Dec. 31, 2020 m² item	Dec. 31, 2019 m² item	Jun. 30, 2023 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Mar. 31, 2019	Dec. 31, 2018	Oct. 31, 2018 m²	Mar. 31, 2012 m²	Oct. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Foreign currency exchange rate translation					$ 1			¥ 7.2258	$ 1	¥ 6.9646
Significant influence ownership interest (as of percentage)					20.00%
Phase 3 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of Units Pre Sold	21
Linyi Shangyang Real Estate Development Company Limited ("LYSY")
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Subsidiaries, percentage of Ownership held by the Company					34.00%			34.00%							34.00%
Area of Real Estate Property \| m²		54,312												103,385
Number of Phases					3
Purchase of land \| ¥		¥ 228,000,000
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units			121
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 1 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units sold	119
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units						84
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 2 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units sold	84
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of Units Pre Sold				21
Linyi Shangyang Real Estate Development Company Limited ("LYSY") \| Phase 3 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units	51
Shanghai Da Er Wei Trading Company Limited ("SHDEW")
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Subsidiaries, percentage of Ownership held by the Company					19.91%			19.91%
HAZB \| Phase 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Area of Real Estate Property \| m²							82,218
Number of units							679
HAZB \| Phase 1 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units	679
Number of units sold	665
HAZB \| Phase 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Area of Real Estate Property \| m²						99,123
Number of units						873
HAZB \| Phase 2 \| Subsequent event
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of units	873
Number of units sold	453
HAZB \| Huai'an Project
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Subsidiaries, percentage of Ownership held by the Company											100.00%	78.46%
HATX \| Huai'an Project
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Area of Real Estate Property \| m²													78,030

RESTRICTED CASH (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
RESTRICTED CASH
Restricted cash deposits	$ 45,789,248	$ 43,869,156

TRANSACTIONAL FINANCIAL ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Transactional Financial Assets
Transactional financial assets	$ 10,282,449	$ 10,960,511
Bank wealth management investment products
Transactional Financial Assets
Transactional financial assets	$ 10,282,449
Minimum \| Bank wealth management investment products
Transactional Financial Assets
Investment holdings, annualized rate of return	2.08%
Maximum \| Bank wealth management investment products
Transactional Financial Assets
Investment holdings, annualized rate of return	2.70%

REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details)		12 Months Ended
REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details)	Jul. 31, 2023 item	Dec. 31, 2020 m² item	Dec. 31, 2019 m² item	Jun. 30, 2023 USD ($) m²	Mar. 31, 2019	Dec. 31, 2018	Oct. 31, 2018 m²
Phase 1 \| Subsequent event
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Number of villas sold	119
Total number of villas	121
Phase 1 \| HAZB
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Number of units			679
Area of real estate property \| m²			82,218
Phase 1 \| HAZB \| Subsequent event
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Number of units sold	665
Number of units	679
Phase 2 \| Subsequent event
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Total number of villas	84
Phase 2 \| HAZB
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Number of units		873
Area of real estate property \| m²		99,123
Phase 2 \| HAZB \| Subsequent event
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Number of units sold	453
Number of units	873
Phase 3 \| Subsequent event
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Total number of villas	51
Number of units pre sold	21
Huai'an Project \| HAZB
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Noncontrolling interest, ownership percentage by parent					100.00%	78.46%
Huai'an Project \| HATX
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Area of real estate property \| m²							78,030
Linyi project
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Site area \| m²				103,385
Land use rights
REAL ESTATE PROPERTY UNDER DEVELOPMENT
Real estate property under development totaled \| $				$ 117,569,883

OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
OTHER RECEIVABLES AND DEPOSITS, NET
Advances to staff	$ 4,456,037	$ 1,859,000
Rental deposits	709,260	735,860
Prepaid expense	493,603	28,153
Prepaid tax	7,279,391	7,783,185
Other receivables and deposits, net	13,259,147	10,733,460
Allowance for doubtful other receivables and deposits	1,188,602	1,233,179
Employees [Member]
OTHER RECEIVABLES AND DEPOSITS, NET
Advances to staff	$ 320,856	$ 372,262

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 3,132,996	$ 3,278,646
Less: Accumulated depreciation	(2,313,863)	(2,277,569)
Property and equipment, net	819,133	1,001,077
Furniture and fixtures
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	255,329	233,960
Computer and office equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	63,679	135,163
Motor vehicles
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	720,176	747,185
Properties
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	$ 2,093,812	$ 2,172,338

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
PROPERTY AND EQUIPMENT, NET
Depreciation and amortization expense		$ 1,179,643	$ 820,935
Property and Equipment
PROPERTY AND EQUIPMENT, NET
Depreciation and amortization expense	$ 820,935	$ 1,179,643

INVESTMENT PROPERTIES, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
INVESTMENT PROPERTIES, NET
Investment properties	$ 32,161,696	$ 33,367,887
Less: Accumulated depreciation	(11,002,253)	(10,694,748)
Investment properties, net	$ 21,159,443	$ 22,673,139

INVESTMENT PROPERTIES, NET - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
INVESTMENT PROPERTIES, NET
Depreciation and amortization expense for investment properties	$ 1,061,518	$ 774,249

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2019	Nov. 30, 2019
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE
Investment in an unconsolidated affiliate	$ 12,290,133	$ 12,751,061
SHDEW
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE
Equity investment, % of Ownership held by the Company	19.91%		19.91%	20.38%
Investment in an unconsolidated affiliate	$ 12,262,454
SHTX
INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE
Investment in an unconsolidated affiliate	$ 27,679

OTHER INVESTMENTS, NET (Details) - USD ($)	6 Months Ended	12 Months Ended
OTHER INVESTMENTS, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
OTHER INVESTMENTS, NET
Other investments	$ 629,100	$ 652,693
Impairment charges on other investments	0	0
ASU 2016-01
OTHER INVESTMENTS, NET
Other investments	$ 629,100	$ 652,693

GOODWILL (Details) ¥ in Thousands	Apr. 04, 2020 USD ($)	Apr. 04, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
GOODWILL
Goodwill			$ 1,003,503	$ 1,243,194
Nanjing Longchang
GOODWILL
Business combination, step acquisition, equity interest in acquiree, percentage	10.00%	10.00%
Business combination, consideration transferred, other	$ 3,398,213	¥ 22,170

PROMISSORY NOTES PAYABLE (Details) - USD ($)	6 Months Ended
PROMISSORY NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
PROMISSORY NOTES PAYABLE
Interest expenses related to promissory notes	$ 0
Unsecured Notes Payable One
PROMISSORY NOTES PAYABLE
Outstanding principal and unpaid interest	1,383,930	$ 1,435,833
Unsecured Notes Payable Two
PROMISSORY NOTES PAYABLE
Outstanding principal and unpaid interest	691,965	$ 717,917
Principal amount	$ 691,965
Interest rate	0.00%

AMOUNTS DUE TO DIRECTORS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
AMOUNTS DUE TO DIRECTORS
Amounts due to directors	$ 504,273	$ 480,109
Lin Chi-Jung
AMOUNTS DUE TO DIRECTORS
Amounts due to directors	484,213	459,299
Lin Hsin-Hung
AMOUNTS DUE TO DIRECTORS
Amounts due to directors	$ 20,060	$ 20,811

OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
OTHER PAYABLES AND ACCRUED EXPENSES
Accrued staff commission and bonus	$ 62,374	$ 185,124
Rental deposits received	152,799	164,566
Bid bond	87,188	90,457
Dividends payable to non-controlling interest	186,214	193,198
Other payables	6,726,422	6,954,170
Other payables	$ 7,214,997	$ 7,587,515

ACCOUNTS PAYABLE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
ACCOUNTS PAYABLE
Accounts payable	$ 26,341,832	$ 22,372,938
Linyi project
ACCOUNTS PAYABLE
Unpaid project development fees	4,588,476
HATX project
ACCOUNTS PAYABLE
Unpaid project development fees	$ 20,702,694

AMOUNT DUE TO AFFILIATES (Details)	Jun. 30, 2023 USD ($)
JXSY
AMOUNT DUE TO AFFILIATES
Amount due	$ 490,361
SHSJ, a shareholder of HATX
AMOUNT DUE TO AFFILIATES
Amount due	$ 48,641,031

CUSTOMER DEPOSITS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CUSTOMER DEPOSITS
Customer deposits	$ 32,760,936	$ 34,742,361
Linyi project
CUSTOMER DEPOSITS
Customer deposits	7,085,740
HATX project
CUSTOMER DEPOSITS
Customer deposits	$ 25,638,714

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
COMMITMENTS AND CONTINGENCIES
Rental expenses under operating leases	$ 57,414	$ 115,172

COMMITMENTS AND CONTINGENCIES - Schedule of operating lease obligations falling due (Details)	Jun. 30, 2023 USD ($)
COMMITMENTS AND CONTINGENCIES
Within one year	$ 10,843
Two to five years	0
Operating lease obligations	$ 10,843

STATUTORY RESERVE (Details) - USD ($)	6 Months Ended
STATUTORY RESERVE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
STATUTORY RESERVE
Statutory reserve	$ 3,986,618	$ 3,986,618
PRC corporate
STATUTORY RESERVE
Minimum percentage of profits after tax to be transferred to statutory reserve	10.00%
Percentage on registered capital of statutory reserve maintenance	50.00%
PRC subsidiary
STATUTORY RESERVE
Minimum percentage of profits after tax to be transferred to statutory reserve	10.00%
Percentage on registered capital of statutory reserve maintenance	50.00%
Statutory reserve	$ 3,986,618	$ 3,986,618

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
SEGMENT INFORMATION
Net revenues	$ 7,042,904	$ 34,639,531	$ 12,776,666	$ 45,879,936
Cost of revenues	(5,956,385)	(30,085,259)	(11,136,935)	(40,745,054)
Gross profit	1,086,519	4,554,272	1,639,731	5,134,882
Operating expenses	(490,120)	(223,156)	(940,599)	(952,585)
General and administrative expenses	(728,734)	113,603	(1,540,592)	(1,788,700)
Operating loss	(132,335)	4,444,719	(841,460)	2,393,597
Other income (expenses)
Interest income	248,416	211,659	495,420	467,131
Interest expense	(782,378)	(582,736)	(1,364,044)	(2,344,872)
Other income, Net	1,117,937	(1,805,235)	384,796	(1,776,436)
Total other (expenses) income	583,975	(2,176,746)	(483,828)	(3,632,098)
Income (loss) before income taxes	451,640	2,267,973	(1,325,288)	(1,238,501)
Income tax	250,864	1,333,194	361,315	1,333,212
Net Income (loss)	200,776	934,779	(1,686,603)	(2,571,713)
Total assets	257,222,387		257,222,387		$ 274,094,594
Operating Segments
SEGMENT INFORMATION
Net revenues	7,042,904	34,639,531	12,776,666	45,879,936
Cost of revenues	(5,956,385)	(30,085,259)	(11,136,935)	(40,745,054)
Gross profit	1,086,519	4,554,272	1,639,731	5,134,882
Operating expenses	(490,120)	(223,156)	(940,599)	(952,585)
General and administrative expenses	(728,734)	113,603	(1,540,592)	(1,788,700)
Operating loss	(132,335)	4,444,719	(841,460)	2,393,597
Other income (expenses)
Interest income	248,416	211,659	495,420	467,131
Interest expense	(782,378)	(582,736)	(1,364,044)	(2,344,872)
Other income, Net	1,117,937	(1,805,669)	384,796	(1,754,357)
Total other (expenses) income	583,975	(2,176,746)	(483,828)	(3,632,098)
Income (loss) before income taxes	451,640	2,267,973	(1,325,288)	(1,238,501)
Income tax	250,864	1,333,194	361,315	1,333,212
Net Income (loss)	200,776	934,779	(1,686,603)	(2,571,713)
Real estate property under development	117,569,883	144,238,751	117,569,883	144,238,751
Total assets	257,222,387	299,096,867	257,222,387	299,096,867
Property Management \| Operating Segments
SEGMENT INFORMATION
Net revenues	0	14,496	202,009	202,264
Cost of revenues	0	153,943	(447,680)	(520,197)
Gross profit	0	168,440	(245,671)	(317,933)
Operating expenses	0	(1,986)	(86,428)	(408,210)
General and administrative expenses	0	(410,539)	(575,633)	(593,154)
Operating loss	0	(244,085)	(907,732)	(1,319,297)
Other income (expenses)
Interest income	76,081	(8,383)	16,853	5,691
Interest expense	(569,810)	678,941		1,350,322
Other income, Net	(188,615)	(1,951,556)	362,241	(1,782,544)
Total other (expenses) income	(682,344)	(1,280,998)	379,094	(426,531)
Income (loss) before income taxes	(682,344)	(1,525,084)	(528,638)	(1,745,829)
Income tax	250,864	1,333,194	361,315	1,333,212
Net Income (loss)	(933,208)	(2,858,278)	(889,953)	(3,079,041)
Real estate property under development	0	0	0	0
Total assets	14,376,766	20,470,992	14,376,766	20,470,992
Real Estate Development \| Operating Segments
SEGMENT INFORMATION
Net revenues	7,042,904	34,625,035	12,574,657	45,677,672
Cost of revenues	(5,956,385)	(30,239,202)	(10,689,255)	(40,224,857)
Gross profit	1,086,519	4,385,832	1,885,402	5,452,815
Operating expenses	(493,861)	(221,170)	(854,171)	(544,375)
General and administrative expenses	(722,900)	(529,976)	(598,159)	(893,967)
Operating loss	(130,242)	4,694,638	433,072	4,014,473
Other income (expenses)
Interest income	170,819	218,526	300,334	460,939
Interest expense	(212,568)	(1,261,677)	(212,568)	(3,695,194)
Other income, Net	(2,630)	(45,358)	(2,913)	(54,579)
Total other (expenses) income	(44,379)	(1,088,509)	84,853	(3,288,834)
Income (loss) before income taxes	(174,621)	3,606,129	517,925	725,639
Income tax	0	0
Net Income (loss)	(174,621)	3,606,129	517,925	725,639
Real estate property under development	117,569,883	144,238,751	117,569,883	144,238,751
Total assets	145,225,314	182,241,498	145,225,314	182,241,498
Investment Transaction \| Operating Segments
SEGMENT INFORMATION
Net revenues	0	0
Cost of revenues	0	0
Gross profit	0	0
Operating expenses	0	0
General and administrative expenses	0	0
Operating loss	0	0
Other income (expenses)
Interest income	0	0
Interest expense	0	0
Other income, Net	1,309,182	191,245	25,468	82,766
Total other (expenses) income	1,309,182	191,245	25,468	82,766
Income (loss) before income taxes	1,309,182	191,245	25,468	82,766
Income tax	0	0
Net Income (loss)	1,309,182	191,245	25,468	82,766
Real estate property under development	0	0	0	0
Total assets	23,201,682	28,139,219	23,201,682	28,139,219
Others \| Operating Segments
SEGMENT INFORMATION
Net revenues	0	0
Cost of revenues	0	0
Gross profit	0	0
Operating expenses	0	0
General and administrative expenses	(5,834)	(5,834)	(366,800)	(301,579)
Operating loss	(5,834)	(5,834)	(366,800)	(301,579)
Other income (expenses)
Interest income	1,516	1,516	178,234	501
Interest expense	0	0	(1,151,477)
Other income, Net	0	0
Total other (expenses) income	1,516	1,516	(973,243)	501
Income (loss) before income taxes	(4,318)	(4,318)	(1,340,043)	(301,078)
Income tax	0	0
Net Income (loss)	(4,318)	(4,318)	(1,340,043)	(301,078)
Real estate property under development	0	0	0	0
Total assets	$ 74,418,625	$ 68,245,158	$ 74,418,625	$ 68,245,158