10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2018

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

For the transition period from __________ to __________

Commission File Number 000-32585

SUNRISE REAL ESTATE GROUP, INC.

(Exact name of registrant as specified in its charter)

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

No. 638, Hengfeng Road, 5A11 Floor, Building A

Shanghai, PRC 200070

(Address of Principal Executive Offices) (Zip Code)

Issuer's telephone number: + 86-21-6139-8018

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 x No ¨

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

Yes x No ¨

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

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

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 x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: August 10, 2018–68,691,925 shares of Common Stock

FORM 10-Q

For the Quarter Ended June 30, 2018

INDEX

		Page
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017	3
	Condensed Consolidated Statements of Operations for The Six Months Ended June 30, 2018 and 2017	4
	Condensed Consolidated Statements of Cash Flows for The Six Months Ended June 30, 2018 and 2017	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	26
PART II.	OTHER INFORMATION	26
Item 1.	Legal Proceedings	26
Item 1A	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	27
SIGNATURES		27

2

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,
	2018		2017
ASSETS
Current assets
Cash and cash equivalents	$	9,869,944	$	5,869,944
Restricted cash (Note 3)		385,891		1,068,805
Transactional financial assets (Note 4)		24,616,527		23,152,639
Accounts receivable		430,743		350,524
Promissory deposits (Note 5)		119,028		120,529
Real estate property under development (Note 6)		66,776,646		67,974,281
Amount due from an unconsolidated affiliate (Note 9)		2,658,482		2,686,498
Other receivables and deposits, net (Note 7)		6,843,285		6,719,078
Total current assets		111,700,546		107,942,298
Property and equipment, net (Note 8)		1,199,251		1,283,901
Investment properties, net (Note 9)		4,023,965		4,255,265
Deferred tax assets (Note 15)		652,694		591,300
Investment in an unconsolidated affiliate (Note 10)		80,256,530		50,677,228
Other investments		151,135		153,041
Total assets	$	197,984,121	$	164,903,033
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Promissory notes payable (Note11)		1,511,350		1,530,409
Accounts payable (Note 14)		2,629,786		3,767,578
Amounts due to directors (Note 12)		1,444,347		5,263,171
Amount due to an affiliate (Note 15)		31,827,396		18,579,652
Customer deposits (Note 16)		40,063,485		41,468,361
Other payables and accrued expenses (Note 13)		834,068		961,235
Other taxes payable		238,058		261,633
Income taxes payable (Note 17)		926,018		776,110
Total current liabilities		79,474,508		72,608,149
Long-term income tax payable (Note 17)		3,450,951		3,623,499
Deferred government subsidy (Note 18)		5,009,433		5,072,605
Total liabilities		87,934,892		81,304,253
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, 2018 and December 31, 2017, respectively		686,919		686,919
Additional paid-in capital		7,570,008		7,570,008
Statutory reserve (Note 20)		931,510		931,510
Retained Earnings		97,412,278		68,975,118
Accumulated other comprehensive income		1,009,799		3,095,469
Total deficit of Sunrise Real Estate Group, Inc.		107,610,514		81,259,024
Non-controlling interests		2,438,715		2,339,756
Total shareholders’ equity		110,049,229		83,598,780
Total liabilities and shareholders’ equity	$	197,984,121	$	164,903,033

See accompanying notes to consolidated financial statements.

3

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Expressed in U.S. Dollars)

	Three Months Ended June 30,						Six Months Ended 30 June,
	2018			2017			2018			2017
Net revenues	$	1,919,275		$	16,179,344		$	3,498,070		$	18,760,460
Cost of revenues		(1,004,153	)		(14,864,129	)		(2,087,600	)		(15,175,870	)
Gross profit		915,122			1,315,215			1,410,470			3,584,590
Operating expenses		(298,610	)		(186,803	)		(1,092,127	)		(612,838	)
General and administrative expenses		(632,754	)		(798,935	)		(1,117,904	)		(1,388,034	)
Operating profit (loss)		(16,242	)		329,477			(799,561	)		1,583,718
Other income (expenses)
Interest income		19,546			7,774			30,394			17,143
Interest expense		(2,302,296	)		(112,350	)		(2,302,296	)		(231,332	)
Equity in net gain of affiliate		9,552,226			10,007,184			31,336,158			32,754,891
Other income (loss), net		135,666			13,871			286,398			1,124,254
Total other Income		7,405,142			9,916,479			29,350,654			33,664,956
Income before income taxes		7,388,900			10,245,956			28,551,093			35,248,674
Income tax benefit (expense)		50,613			(9	)		18,937			62,104
Net income		7,439,513			10,245,947			28,570,030			35,310,778
Less: Net (income) loss attributable to non-controlling interests		(183,181	)		(527,474	)		(132,871	)		(142,459	)
Net income attributable to shareholders of Sunrise Real Estate Group, Inc.	$	7,256,332		$	9,718,473		$	28,437,159		$	35,168,319
Net income		7,439,513			10,245,947			28,570,030			35,310,778
Other comprehensive income Foreign currency translation adjustment		(5,814,632	)		881,953			(2,119,582	)		377,646
Comprehensive income		1,624,881			11,127,900			26,450,448			35,688,424
Less: Comprehensive income attributable to non-controlling interests		(58,298	)		(582,398	)		(98,959	)		(216,521	)
Total comprehensive income attributable to shareholders		1,566,583			10,545,502			26,351,489			35,471,903
Earnings per share – basic and fully diluted	$	0.11		$	0.15		$	0.41		$	0.52
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.

4

SUNRISE REAL ESTATE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Expressed in U.S. Dollars)

	Six Months Ended June 30,
	2018			2017
Cash flows from operating activities
Net income	$	28,570,030		$	35,310,778
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization		249,487			261,914
Loss (Gain) on disposal of property, plant and equipment		4,278			-
Equity in net loss (income) of unconsolidated affiliates		(31,336,157	)		(32,924,518	)
Changes in assets and liabilities
Accounts receivable		(87,736	)		733,216
Promissory deposits		-			(8,746	)
Real estate property under development		364,199			11,526,808
Customer Deposits		(921,555	)		(4,899,842	)
Amount due from unconsolidated affiliates		(5,643	)		(5,364	)
Other receivables and deposits		(215,630	)		(1,026,037	)
Deferred tax assets		(71,320	)		(62,104	)
Accounts payable		(1,131,522	)		(825,092	)
Other payables and accrued expenses		(119,489	)		(730,160	)
Other taxes payable		(7,028	)		(170,521	)
Income taxes payable		(21,074	)		23,625
Net cash provided by operating activities		(4,729,160	)		7,203,957
Cash flows from investing activities
Purchases of property and equipment		-			(1,806	)
Net Cash from Transactional financial assets		(1,817,514	)		-
Advances to unconsolidated affiliates, net		-			-
Net cash provided by (used in) investing activities		(1,817,514	)		(1,806	)
Cash flows from financing activities
Restricted cash		694,555			(715,882	)
Bank loan repayments		-			(5,603,782	)
Capital injection from no controlling interests Of consolidated		-			36,439
Repayments to directors		(3,909,110	)		-
Advances from directors		15,396			43,713
Amount due to unconsolidated affiliates		13,356,656			1,621,278
Repayments to an affiliate		141,210			(2,757,673	)
Proceeds from new promissory notes		-			(155,141	)
Repayments of promissory notes		-			(21,864	)
Net cash used in financing activities		10,298,707			(7,552,912	)
Effect of exchange rate changes on cash and cash equivalents		247,967			375,754
Net increase in cash and cash equivalents		4,000,000			24,993
Cash and cash equivalents at beginning of period		5,869,944			8,693,345
Cash and cash equivalents at end of period	$	9,869,944		$	8,718,338
Supplemental disclosure of cash flow information
Income taxes paid	$	72,559		$	-
Interest paid		142,710			387,998

See accompanying notes to consolidated financial statements.

5

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, 2018, the Company has the following major subsidiaries and equity investment.

Company Name	Date of Incorporation	Place of Incorporation	% of Ownership held by the Company	Relationship with the Company	Principal activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands	100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands	100%	Subsidiary	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”)	August 20, 2001	PRC	100%	Subsidiary	Property brokerage services
Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”)	February 5, 2004	PRC	100%	Subsidiary	Property brokerage services
Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC	75.25%*	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC	75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC	24%**	Subsidiary	Real estate development
Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)	October 20, 2010	PRC	100%	Subsidiary	Property brokerage services
Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)	November 10, 2010	PRC	60%	Subsidiary	Property brokerage services
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC	100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC	100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC	100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC	49%	Equity investment	Real estate development
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”)	September 28, 2011	PRC	40%	Equity investment	Property brokerage services
Xin Guang Investment Management and Consulting Company Limited (“XG”)	December 17, 2012	PRC	49%	Equity investment	Investment management and consulting
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC	20.75%***	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC	100%	Subsidiary	Investment holding

6

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

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

*** On June 20^th 2018, SHDEW sold additional shares of capital stock to increase its registered capital, which diluted the Company’s equity interest of SHDEW from 23.08% to 20.75%.

The accompanying condensed consolidated balance sheet as of December 31, 2017, 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 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, 2018 and the results of operations for the six months ended June 30, 2018 and 2017, and the cash flows for the six months ended June 30, 2018 and 2017. 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, 2017. The results of operations for the six months ended June 30, 2018 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.

7

Foreign Currency Translation and Transactions

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

Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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, 2018 and December 31, 2017 are $1: RMB6.6166 and $1: RMB6.5342, respectively.

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

Real Estate Property under Development

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

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

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

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

For the six months ended June 30, 2018, the company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion.

Long Term Investments

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

8

Investment in Unconsolidated Affiliates

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

When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate.

The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in the value of the investment that is not temporary. The Company did not recorded any impairment losses in any of the periods reported.

Other Investments

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

Government Subsidies

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

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

Government subsidy was received in 2012 and the company recorded it as deferred government subsidy in balance sheets. As of June 30, 2018 and December 31, 2017, the deferred government subsidy amounted to $5,009,433 and $5,072,605, respectively. The subsidy was used to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date.

Revenue Recognition

Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions or act as an escrow intermediary between the developer and the buyer.

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

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

9

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

The Company accounts for real estate development sales in accordance with the ASC 976-605, “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). A real estate development sale is recognized by the percentage-of-completion method on the sale of individual units when the individual unit sites are being sold separately and all the following criteria are met as below:

a. Construction is beyond a preliminary stage.

b. The buyer is committed to the extent of being unable to require a refund except for no delivery of the unit.

c. Sufficient units have already been sold to assure that the entire property will not revert to rental property.

d. Sales prices are collectible.

e. Aggregate sales proceeds and costs can be reasonably estimated.

If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met.

All revenues represent gross revenues less sales and business tax.

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

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

New Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of this accounting standard update.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update on its financial statements.

10

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company's financial statements and disclosures.

NOTE 3– RESTRICTED CASH

The Company is required to maintain certain deposits with the bank that provide mortgage loans to the Company. As of June 30, 2018 and December 31, 2017, the Company held cash deposits of $385,891 and $1,068,805 as guarantee to the banks which provides mortgage loan to individual customers of our construction products. These balances are subject to withdrawal restrictions and were not covered by insurance.

NOTE 4– TRANSACTIONAL FINANCIAL ASSETS

As of June 30, 2018, we have $24,616,527 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 2.8% to 5.35% depending on the amount and time period invested.

NOTE 5- PROMISSORY DEPOSITS

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

NOTE 6 – REAL ESTATE PROPERTY UNDER DEVELOPMENT

Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 square meters for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012.

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

For the period ended of June 30, 2018, the Company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion. As of June 30, 2018, land use rights included in real estate property under development totaled $66,776,646.

11

NOTE 7 - OTHER RECEIVABLES AND DEPOSITS, NET

	June 30,		December 31,
	2018		2017
Advances to staff	$	84,965		118,835
Rental deposits		53,340		72,531
Prepaid expense		28,145		22,572
Prepaid tax		4,635,046		4,687,947
Other receivables		2,041,789		1,817,193
	$	6,843,285	$	6,719,078

Other receivables and deposits as of June 30, 2018 and December 31, 2017 were stated net of allowance for doubtful accounts of $329,488 and $674,478, respectively.

NOTE 8 – PROPERTY AND EQUIPMENT, NET

	June30,			December 31,
	2018			2017
Furniture and fixtures	$	164,585		$	166,660
Computer and office equipment		161,187			163,969
Motor vehicles		553,103			602,260
Properties		2,287,378			2,315,428
		3,166,253			3,248,317
Less: Accumulated depreciation		(1,967,002	)		(1,964,416	)
	$	1,199,251		$	1,283,901

Depreciation and amortization expense for property and equipment amounted to $249,487 and $88,820 for the six months ended June 30, 2018 and 2017, respectively.

NOTE 9 – INVESTMENT PROPERTIES, NET

	June 30,			December 31,
	2018			2017
Investment properties	$	9,358,405		$	9,476,420
Less: Accumulated depreciation		(5,334,440	)		(5,221,155	)
	$	4,023,965		$	4,255,265

Depreciation and amortization expense for investment properties amounted to $924,757 and $515,889 for the six months ended June 30, 2018 and 2017, respectively.

NOTE 10 – INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE

The investments in unconsolidated affiliates primarily consist of WHYYL (49%) and SHDEW (20.75%) As of June 30, 2018, the investment amount in WHYYL and SHDEW were $0 and $80,256,530 separately.

WHYYL is primarily developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with a 3-year planned construction period. SHDEW is a company engaged principally in the R&D and sale of skincare and cosmetic products. The Company has accounted for these investments using the equity method as the Company has the ability to exercise significant influence over their activities.

In 2011, the Company invested $4,697,686 for acquiring a 49% equity interest in WHYYL to expand its operations to the real estate development business. As of June 30, 2018 the investment in WHYYL was $0, which included its equity in the net loss of WHYYL, net of income taxes, totaling $681,627 as of June 30, 2018. The following table sets forth the unaudited financial information of WHYYL. For the period ended of March 2018, WHYYL had recognized the net revenue and cost of revenue of the project at a certain proportion.

	Six Months ended June 30,
	2018		2017
Revenues	$	-	$	-
Net loss	$	681,627	$	1,090,090

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	June 30,			December 31,
	2018			2017
Current assets	$	13,284,146		$	19,066,691
Non-current assets		8,324			9,736
Total assets		13,292,470			19,076,427
Current liabilities		13,840,076			18,965,514
Total equity	$	(547,607	)	$	110,914

As of June 30, 2018 and December 31, 2017, the Company has a balance of $2,658,482 and $2,686,498 due from WHYYL, which was no longer charged interest from September 1, 2014.

SHDEW was established in June of 2013 with its business as a skincare and cosmetic company. The company has made progress in its operations. Its Wechat stores have a membership of over a million members. It is developing its own skincare products as well as solidifying its position in the ecommerce platform.

The net profit for SHDEW was $177,035,906 for the six months ended June 30, 2018, with total equity in the amount of $396,214,174 as of June 30, 2018.

	Six Months ended June 30,
	2018		2017
Revenues	$	410,877,510	$	344,292,109
Net income	$	177,035,906	$	162,553,533

	June 30,		December 31,
	2018		2017
Current assets	$	752,570,192	$	647,287,630
Non-current assets		19,727,238		19,471,756
Total assets		772,297,430		666,759,387
Current liabilities		376,083,256		447,406,389
Total equity	$	396,214,174	$	219,337,694

NOTE 11– PROMISSORY NOTES PAYABLE

The promissory notes payable consist of the following unsecured notes to unrelated parties. Included in the balances are promissory notes with outstanding principal and unpaid interest of an aggregate of $1,511,350 and $1,530,409 as of June 30, 2018 and December 31, 2017, respectively.

The promissory note with a principal as of June 30, 2018 amounting to $755,675 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2018 and December 31, 2017, the outstanding principal and unpaid interest related to this promissory note amounted to $755,675 and $765,205, respectively.

The promissory note with a principal as of June 30, 2018 amounts to $755,675 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2018 and December 31, 2017, the outstanding principal and unpaid interest related to this promissory note amounted to $755,675 and $765,205, respectively.

For the six months ended June 30, 2018, the interest expense related to these promissory notes was $NIL.

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NOTE 12– AMOUNTS DUE TO DIRECTORS

	June 30,		December 31,
	2018		2017
Lin Chi-Jung	$	1,333,664	$	5,154,329
Lin Hsin-Hung		110,683		108,842
	$	1,444,347	$	5,263,171

(a) The balance due to Lin Chi-Jung consists of unpaid salaries and reimbursements and advances together with unpaid interest.

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

The advances together with unpaid interest as of June 30, 2018 and December 31, 2017 were $1,333,664 and $5,154,329, respectively. The balances are unsecured and interest bearing at rates 0% per annum.

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

NOTE 13- OTHER PAYABLES AND ACCRUED EXPENSES

	June 30,		December 31,
	2018		2017
Accrued staff commission and bonus	$	330,320	$	302,710
Rental deposits received		49,270		161,055
Customer deposits		-		-
Dividends payable to non-controlling interest		203,359		291,546
Other payables		251,119		205,924
	$	834,068	$	961,235

NOTE 14- ACCOUNT PAYABLE

Account payable was mostly derived from our property development of Linyi project and GXL project. As of June 30, 2018 and December 31, 2017, the company’s account payable amounted to $2,629,786 and $3,767,578.

NOTE 15 – AMOUNT DUE TO AFFILIATES

The temporary borrowing, in the amount of $31,294,433 from SHDEW is for operations and is unsecured, has an interest between 4.35% to 4.6% and payable on demands. The amount due to JXSY, in the amount of $532,963, were intercompany transfers for day to day operation.

NOTE 16 – CUSTOMER DEPOSITS

Customer deposits were mostly derived from our property development of Linyi project and GXL project, which was pre-sale collection from our customers. As of June 30, 2018, and December 31, 2017, the company’s customer deposits amounted to $40,063,485 and $41,613,715.

NOTE 17 – 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.

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NOTE 18– DEFERRED GOVERNMENT SUBSIDY

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

Government subsidy was received in 2012, and as of June 30, 2018 and December 31, 2017, the Company’s deferred government subsidy amounted to $5,009,433 and $5,072,605, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project, and are repayable if the Company fails to complete the subsidized property development project before the agreed date. The entire government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets.

NOTE 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, 2018 and 2017 were $33,780 and $118,606, respectively.

As of June 30, 2018, the Company had the following operating lease obligations.

	Amount
Within one year	$	65,604
Two to five years		-
	$	65,604

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 is determined by the board of directors. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the stockholders, convert the general reserve into capital. The staff welfare and bonus reserve are used for the collective welfare of the employees of the subsidiary. The enterprise expansion reserve is for the expansion of the subsidiary operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law.

In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiary are considered as restricted net assets and are not distributable as cash dividends. As of June 30, 2018, and December 31, 2017, the Company’s statutory reserve fund was $931,510 and $931,510, respectively.

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NOTE 21 - SEGMENT INFORMATION

The Company's chief executive officer and chief operating officer have been identified as the chief operating decision makers. The Company's chief operating decision makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment.

The Company evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, and income from operations. The following tables show the operations of the Company's operating segments:

	Three Months Ended June 30, 2018
	Property
	Brokerage			Real Estate			Investment
	Services			Development			Transaction			Others			Total
Net revenues	$	461,890		$	1,457,375		$	-		$	-		$	1,919,275
Cost of revenues		(264,696	)		(739,457	)		-			-			(1,004,153	)
Gross profit		197,204			717,918			-			-			915,122
Operating expenses		(176,811	)		(121,716	)		-			(83	)		(298,610	)
General and administrative expenses		(103,376	)		(222,971	)		-			(306,407	)		(632,754	)
Operating loss		(82,983	)		373,231						(306,490	)		(16,242	)
Other income (expenses)
Interest income		15,505			2,253			-			1,788			19,546
Interest expense		-			(142,710	)		(2,159,586	)		-			2,302,296
Other income, Net		(174,437	)		358			310,008			263			135,666
Equity in net income (loss) of unconsolidated affiliates		-			-			9,552,226			-			9,552,226
Total other (expenses) income		(158,932	)		(140,099	)		7,702,648			1,525			7,405,142
Income (loss) before income taxes		(241,915	)		(233,132	)		7,702,648			(304,965	)		7,388,900
Income tax		(43,032	)		7,581			-			-			50,613
Net Income( loss)	$	(198,883	)	$	(240,713	)	$	7,702,648		$	(304,965	)	$	7,439,513

	Six Months Ended June 30, 2018
	Property
	Brokerage			Real Estate			Investment
	Services			Development			Transaction			Others			Total
Net revenues	$	890,370		$	2,607,700		$	-		$	-		$	3,498,070
Cost of revenues		(490,703	)		(1,596,897	)		-			-			(2,087,600	)
Gross profit		399,667			1,010,803			-			-			1,410,470
Operating expenses		(690,421	)		(401,524	)		-			(182	)		(1,092,127	)
General and administrative expenses		(426,358	)		(379,389	)		-			(312,157	)		(1,117,904	)
Operating loss		(717,112	)		229,890			-			(312,339	)		(799,561	)
Other income (expenses)
Interest income		20,556			4,743			-			5,095			30,394
Interest expense		-			(142,710	)		(2,159,586	)		-			(2,302,296	)
Other income, Net		(174,476	)		(144,972	)		606,109			(263	)		286,398
Equity in net income (loss) of unconsolidated affiliates		-			-			31,336,158			-			29,350,654
Total other (expenses) income		(153,920	)		(282,939	)		29,782,680			4,832			28,551,093
Income (loss) before income taxes		(871,031	)		(53,049	)		29,782,680			(307,507	)		28,551,093
Income tax		(52,383	)		71,320			-			-			18,937
Net Income (loss)	$	923,414		$	18,271		$	29,782,680		$	(307,507	)	$	28,570,030

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	Three Months Ended June 30, 2017
	Property
	Brokerage			Real Estate			Investment
	Services			Development			Transaction		Others			Total
Net revenues	$	435,039		$	15,744,305		$	-	$	-		$	16,179,344
Cost of revenues		(205,036	)		(14,588,519	)		-		(70,574	)		(14,864,129	)
Gross profit		230,003			1,155,786			-		(70,574	)		1,315,215
Operating expenses		(138,539	)		(46,598	)		-		(1,666	)		(186,803	)
General and administrative expenses		(374,806	)		(389,677	)		-		(34,452	)		(798,935	)
Operating loss		(283,342	)		719,511					(106,692	)		329,477
Other income (expenses)
Interest income		5,241			2,459			-		74			7,774
Interest expense		(112,350	)		-			-		-			(112,350	)
Other income, Net		(7,398	)		21,269			-		-			13,871
Equity in net income (loss) of unconsolidated affiliates		-			-			10,007,184		-			10,007,184
Total other (expenses) income		(114,507	)		23,728			10,007,184		74			9,916,479
Income (loss) before income taxes		(397,849	)		743,239			10,007,184		(106,618	)		10,245,956
Income tax		-			(9	)		-		-			(9	)
Net Income (loss)	$	(397,849	)	$	743,230		$	10,007,184	$	(106,618	)	$	10,245,947

	Six Months Ended June 30, 2017
	Property
	Brokerage			Real Estate			Investment
	Services			Development			Transaction		Others			Total
Net revenues	$	3,016,155		$	15,744,305		$	-	$	-		$	18,760,460
Cost of revenues		(517,224	)		(14,588,519	)		-		(70,127	)		(15,175,870	)
Gross profit		2,498,931			1,155,786			-		(70,127	)		3,584,590
Operating expenses		(269,359	)		(339,429	)		-		(4,050	)		(612,838	)
General and administrative expenses		(556,134	)		(822,726	)		-		(9,174	)		(1,388,034	)
Operating loss		1,673,438			(6,369	)		-		(83,351	)		1,583,718
Other income (expenses)
Interest income		9,901			7,095			-		147			17,143
Interest expense		(231,332	)		-			-		-			(231,332	)
Other income, Net		1,104,402			19,852			-		-			1,124,254
Equity in net income (loss) of unconsolidated affiliates		-			-			32,754,891		-			32,754,891
Total other (expenses) income		882,971			26,947			32,754,891		147			33,664,956
Income (loss) before income taxes		2,556,409			20,578			32,754,891		(83,204	)		35,248,674
Income tax		-			62,104			-		-			62,104
Net Income (loss)	$	2,556,409		$	82,682		$	32,754,891	$	(83,204	)	$	35,310,778

	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
As of June 30, 2018
Real estate property under development	$	-	$	66,776,646	$	-	$	-	$	66,776,646
Total assets		11,195,172		81,710,232		105,024,192		54,525		197,984,121
As of June 30, 2017
Real estate property under development		-		66,368,683		-		-		66,368,683
Total assets	$	10,120,878	$	82,293,920	$	54,006,738	$	110,638	$	146,532,174

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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”), Wuhan Yuan Yu Long Real Estate Development Company, Ltd. (“WHYYL”), and Shanghai Da Er Wei Trading Company Limited (“SHDEW”) are sometimes hereinafter collectively referred to as “the Company,” “our,” or “us”.

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

RECENT DEVELOPMENTS

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

18

In mid-2011, we established a project company in Wuhan in which we have a 49% ownership. We commenced the construction of Phase 1 of the project in the third quarter of 2012 and the pre-sale of Phase 1 in the first quarter of 2013. We have begun Phase 2 construction of the project in the second quarter of 2013 and the pre-sale of Phase 2 was started in mid-August. The Wuhan project is planned to include seven residential buildings with three buildings being part of Phase 1 and four buildings in Phase 2. As of June 30 2018, the project has sold 755 apartment units with an area of 81,221 square meters. For the period ended of June 30, 2018, WHYYL had recognized the net revenue and cost of revenue of the project at a certain proportion.

In October 2011, we established LYSY and own 24% 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. We began construction in mid-2012 and as of December 31, 2016 have constructed 121 units, which encompasses all units in phase 1. The phase 1 has completed construction in May 2015. The sales started in November 2013. We have made sales of 111 units at the end of June 30,2018. Proceeds from sales will be used to finance the constructions of the subsequent phases of the project. The phase 2 has begun construction of 17,000 sqm in October 2017. For the period ended of June 30, 2018, the company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion.

On March 13, 2014, the Company signed a joint development agreement with ZhongjiPufa Real Estate Co. According to this agreement, the Company obtained a right to develop the GXL project, which is located in the Putuo district, Shanghai, PRC. This project covers a site area of approximately 2,502 square meters for the development of one building of apartment. Presale began on March 2016, and construction was completed on March of 2017. As of June 30, 2018, the project had sold 79 units with a sales area of 3,967 square meters (There are 18 units presale contract termination out of maximum presale of 97 units.). The project is preparing for the final acceptance of construction by the government authorities.

SHDEW was established in June 2013 with its business as a skincare and cosmetic company. SHDEW’s online Wechat stores had a membership of over a million members as of June 30, 2018. 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 its own online shopping app, “庭秘密,” where consumers can purchase its cosmetics and skincare products as well as products imported into China. The online shopping platform is currently in operation. On June 20^th 2018, SHDEW sold additional shares of capital stock to increase its registered capital, which diluted the Company’s equity interest of SHDEW from 23.08% to 20.75%.

RECENTLY ADOPTED ACCOUNTING STANDARDS

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

NEW ACCOUNTING PRONOUNCEMENTS

In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of this accounting standard update.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update on its financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

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In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company's financial statements and disclosures.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

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

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

Revenue Recognition

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

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

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

The Company accounts for real estate development sales in accordance with the ASC 976-605, “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). A real estate development sale is recognized by the percentage-of-completion method on the sale of individual units when the individual unit sites are being sold separately and all the following criteria are met as below:

a. Construction is beyond a preliminary stage.

b. The buyer is committed to the extent of being unable to require a refund except for no delivery of the unit.

c. Sufficient units have already been sold to assure that the entire property will not revert to rental property.

d. Sales prices are collectible.

e. Aggregate sales proceeds and costs can be reasonably estimated.

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If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met.

All revenues represent gross revenues less sales and business taxes.

Real Estate Property under Development

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

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

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

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

Government Subsidies

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

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

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

Income Taxes

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

The Company recognizes tax benefits that satisfy a greater than 50% probability threshold and provides for the estimated impact of interest and penalties for such tax benefits. The Company did not incur any interest or penalties related to potential underpaid income tax expenses during the six months ended June 30, 2015 and 2014

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RESULTS OF OPERATIONS

We provide the following discussion and analyses of our changes in financial condition and results of operations for the period ended June 30, 2018 with comparisons to the period ended June 30, 2017.

Revenue

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

	Three Months Ended June 30,											Six Months Ended June 30,
	2018		% to total		2017		% to total		% change			2018		% to total		2017		% to total		% change
Agency sales		267,939		14		259,333		2		3			511,899		15		534,768		3		(4	)
Property management		193,960		10		170,335		1		14			378,471		11		308,772		2		22
House sales		1,457,375		76		15,744,304		97		(91	)		2,607,700		74		15,744,304		84		(83	)
Service sales		-		0		5,370		0		(100	)		-		0		2,172,615		11		(100	)
Net revenues		1,919,274		100		16,179,342		100		(88	)		3,498,070		100		18,760,460		100		(81	)

The net revenue in the second quarter of 2018 was $1,919,274, which decreased 88% from $16,179,274 in the second quarter of 2017. The net revenue in the first two quarters of 2018 was $3,498,070, which represented a decreased of 81% from $18,760,460 in the first two quarter of 2017. In the second quarter of 2018, agency sales represented 14% of our net revenues, property management represented 10%, house sales represented 76% and service sales represented 0%. In the first two quarters of 2018, agency sales represented 15% of our net revenues, property management represented 11%, house sales represented 74% and service sales represented 0%. The decrease in net revenue in the first two quarter of 2018 was mainly due to the less units being sold in our Linyi Project.

Agency sales

In the second quarter and first two quarters of 2018, 14% and 15%, respectively, of our net revenues were attributable to agency sales. As compared with similar periods in 2017, net revenue of agency sales increased 3% and decreased 4%, respectively, in the second quarter and the first two quarters of 2018.

Property Management

Property management represented 11% of our revenue in the first two quarter of 2018 and revenue from property management increased by 22% compared with same period in 2017.

House sales

In the first two quarters of 2018, the Company has recognized the house sales of Linyi project at a certain portion of time. House sales represented 75% of our revenue in the first two quarter of 2018.

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,
	2018		% to total		2017		% to total		% change			2018		% to total		2017		% to total		% change
Agency sales		134,108		13		144,184		50		(7	)		241,706		12		307,999		2		(21	)
Property management		130,589		13		89,245		39		46			248,997		12		209,225		1		19
House sales		739,456		74		14,588,519		98		(94	)		1,596,897		76		14,588,519		96		(89	)
Service sales		-		0		42,181		0		(100	)		-		0		70,127		1		(100	)
Cost of revenues		1,004,153		100		14,864,129		100		(93	)		2,087,600		100		15,175,870		100		(86	)

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The cost of revenues for the second quarter of 2018 was $1,004,153, which decreased 93% from $14,864,129 during the second quarter of 2017. The cost of revenues of the first two quarters of 2018 was $2,087,600, which decreased 86% from $15,175,870 during the first two quarters of 2017. In the second quarter of 2018 agency sales represented 13% of our cost of revenues, property management represented 13%, house sales represented 74% and service sales represented 0%. In the first two quarters of 2018, agency sales represented 12% of our cost of revenues, property management represented 12%, house sales represented 76% and service sales represented 0%. The decrease in the cost of revenue in the second quarter and first two quarters of 2018 was mainly due to the less units being sold in the Linyi project.

Agency sales

The cost of revenue for agency sales in the first two quarter, 2018 was $241,706, an decrease of 21% from $307,999 in the same period in 2017. This decrease was mainly due to the decrease in our commissions from the decrease in sales of agency sales in the first two quarter of 2018.

Property management

The cost of revenue for property management in the first two quarter of 2018 was $248,997, an increase of 19% from $209,225 in the same period in 2017. This was mainly due to more business for the property management as a whole.

House sales

In the first two quarters of 2018, the Company have recognized the cost of house sales of the Linyi project at a certain portion of time. House sales represented 76% of our cost of revenue in the first two quarters of 2018.

Operating Expenses

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

	Three Months Ended June 30,											Six Months Ended June 30,
	2018		% to total		2017		% to total		% change			2018		% to total		2017		% to total		% change
Agency sales		62,430		21		80,265		43		(22	)		160,930		15		175,862		29		(8	)
Property management		114,382		38		58,275		31		96			529,492		48		93,498		15		466
House sales		121,716		41		46,598		25		161			401,524		37		339,429		55		18
Service sales		83		0		1,666		1		(95	)		182		0		4,050		1		(95	)
Operating expenses		298,610		100		186,803		100		60			1,092,127		100		612,838		100		78

The operating expenses for the second quarter of 2018 were $298,610, which increased 60% from $186,803 for the same period in 2017. The total operating expenses for the first two quarters of 2018 were $1,092,127, which increased 78% from $612,838 for the same period in 2017. In the second quarter of 2018, agency sales represented 21% of the total operating expenses, property management represented 38%, service sales represented 0% and house sales represented 41%. In the first two quarters of 2018, agency sales represented 15% of the total operating expenses, property management represented 48%, service sales represented 0% and house sales represented 37%. The increase in the overall operating expense resulted from the increase in house sales and property management for the second quarter and the first two quarters of 2018.

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Agency sales

The operating expenses for agency sales in the first two quarter of 2018 were $160,930, a decreased of 8% from $175,862 in the same period in 2017.

Property management

The operating expenses for property management in the first two quarter of 2018 were $529,492 an increase of 466% from $93,498 in the same period in 2017. The increase is mainly due to consulting expenses relating to the business.

House sales

The operating expenses for house sales in the first two quarter of 2018 were $401,524 which increased 18% from $339,429 in the same period in 2017.

General and Administrative Expenses

General and administrative expenses in the first two quarter of 2018 were $1,117,904, decreased by 19% from $1,388,034, in same periods in 2017. This decrease was mainly due to a decrease in staff cost, office expense and so on.

Interest Expenses

Interest expenses in the first two quarter of 2018 were $2,302,296 an increase of 895% from $231,332 in the same period in 2017. This increase was mainly due to the interest accrued of the borrowing from our affiliate SHDEW.

Equity in net gain (loss) of affiliates

Equity in net gain in the first two quarters of 2018 was $31,336,158, a decrease of 4% from net gain of $32,754,891 in the same period in 2017. The equity in net gain (loss) of an affiliate was mainly due to the investment value variety of WHYYL and SHDEW. This increase was mainly due to the equity gain from our equity interest in SHDEW which was primarily due to the increase of its net income.

Other income, net

Other income in the first two quarters of 2018 was $286,398, a decrease of 75% from gain of $1,124,254 in the same period in 2017.

Major Related Party Transaction

A related party is an entity that can control or significantly influence the management or operating policies of another entity to the extent one of the entities may be prevented from pursuing its own interests. A related party may also be any party the entity deals with that can exercise that control.

Amount due to directors

The total amount due to directors for June 30, 2018 was $1,444,347. The amounts due are as follows:

Amount due to Lin Chi-Jung

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

The advances together with unpaid interest as of June 30, 2018 and December 31, 2017 were $1,333,664 and $5,154,329, respectively. The balances are unsecured and interest bearing at rates of 0% per annum.

24

Amount due to Lin Hsin Hung

The amount of $110,683 represents the salary payable to Lin Hsin Hung.

Amount due from affiliate

The amount of $2,658,482 was due from WHYYL.

Amount due to affiliate

The temporary borrowing, in the amount of $31,294,433 from SHDEW is for operations and is unsecured, with interest in the range of 4.35% to 4.6% and payable on demand. The amount due to JXSY, in the amount of $532,963 were intercompany transfers for day to day operation.

LIQUIDITY AND CAPITAL RESOURCES

In the first two quarter of 2018, our principal sources of cash were revenues from our agency sales and property management business, as well as the cash receipt from the advance of affiliates. Most of our cash resources were used to invest in transactional financial assets and fund our property development investment and revenue related expenses, such as salaries, daily administrative expenses and the maintenance of regional offices.

We ended the period with a cash position of $9,869,944.

The Company’s operating activities used cash in the amount of $4,729,160, which was primarily attributable to the payment of account payable and receipts in advance.

The Company’s investing activities used cash resources of $1,817,514, which was primarily attributable to the investment of transactional financial assets.

The Company’s financing activities provided cash resources of $10,298,707, which was primarily attributable to advance from an affiliate.

The potential cash needs for 2018 are for investment in transactional financial assets, the rental guarantee payments and promissory deposits for various property projects as well as our development projects in Wuhan, GXL project and Linyi 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.

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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, 2017, 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 U.S. As the newly implemented remediation activities have not operated for a sufficient period of time to demonstrate operating effectiveness, we will continue to monitor and assess our remediation activities to ensure that the aforementioned material weakness is remediated.

B. Evaluation of Disclosure Controls and Procedures

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

C. Changes in Internal Control over Financial Reporting

Since the first quarter of 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.

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, 2017.

ITEM 1A. RISK FACTORS

Not applicable.

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

None.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

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

* Filed herewith

SIGNATURES

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

SUNRISE REAL ESTATE GROUP, INC.

Date: August 14, 2018
By:	/s/ Pan, Yu-Jen
Pan, Yu-Jen, Chief Executive Officer, Principal Executive Officer
Date: August 14, 2018
By:	/s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer, Principal Financial Officer

27

EX-31.1

EXHIBIT 31.1

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

I, Pan, Yu-Jen, certify that:

1. I have reviewed this Quarterly Report for the six months ended June 30, 2018 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 14, 2018
By:	/s/ Pan, Yu-Jen
Pan, Yu-Jen, Chief Executive Officer, Principal Executive Officer

EX-31.2

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.;

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

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

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

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

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

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

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

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

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

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

Date: August 14, 2018
By:	/s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer, Principal Financial Officer

EX-32.1

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, 2018 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 14, 2018
By:	/s/ Pan, Yu-Jen
Pan, Yu-Jen, Chief Executive Officer, Principal Executive Officer
Date: August 14, 2018
By:	/s/ Mi, Yong Jun
Mi, Yong Jun, Chief Financial Officer, Principal Financial Officer

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 10, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	SUNRISE REAL ESTATE GROUP INC
Entity Central Index Key	0001083490
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	SRRE
Entity Common Stock, Shares Outstanding		68,691,925

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 9,869,944	$ 5,869,944
Restricted cash (Note 3)	385,891	1,068,805
Transactional financial assets (Note 4)	24,616,527	23,152,639
Accounts receivable	430,743	350,524
Promissory deposits (Note 5)	119,028	120,529
Real estate property under development (Note 6)	66,776,646	67,974,281
Amount due from an unconsolidated affiliate (Note 9)	2,658,482	2,686,498
Other receivables and deposits, net (Note 7)	6,843,285	6,719,078
Total current assets	111,700,546	107,942,298
Property and equipment, net (Note 8)	1,199,251	1,283,901
Investment properties, net (Note 9)	4,023,965	4,255,265
Deferred tax assets (Note 15)	652,694	591,300
Investment in an unconsolidated affiliate (Note 10)	80,256,530	50,677,228
Other investments	151,135	153,041
Total assets	197,984,121	164,903,033
Current liabilities
Promissory notes payable (Note11)	1,511,350	1,530,409
Accounts payable (Note 14)	2,629,786	3,767,578
Amounts due to directors (Note 12)	1,444,347	5,263,171
Amount due to an affiliate (Note 15)	31,827,396	18,579,652
Customer deposits (Note 16)	40,063,485	41,468,361
Other payables and accrued expenses (Note 13)	834,068	961,235
Other taxes payable	238,058	261,633
Income taxes payable (Note 17)	926,018	776,110
Total current liabilities	79,474,508	72,608,149
Long-term income tax payable (Note 17)	3,450,951	3,623,499
Deferred government subsidy (Note 18)	5,009,433	5,072,605
Total liabilities	87,934,892	81,304,253
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, 2018 and December 31, 2017, respectively	686,919	686,919
Additional paid-in capital	7,570,008	7,570,008
Statutory reserve (Note 20)	931,510	931,510
Retained Earnings	97,412,278	68,975,118
Accumulated other comprehensive income	1,009,799	3,095,469
Total deficit of Sunrise Real Estate Group, Inc.	107,610,514	81,259,024
Non-controlling interests	2,438,715	2,339,756
Total shareholders’ equity	110,049,229	83,598,780
Total liabilities and shareholders’ equity	$ 197,984,121	$ 164,903,033

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net revenues	$ 1,919,275	$ 16,179,344	$ 3,498,070	$ 18,760,460
Cost of revenues	(1,004,153)	(14,864,129)	(2,087,600)	(15,175,870)
Gross profit	915,122	1,315,215	1,410,470	3,584,590
Operating expenses	(298,610)	(186,803)	(1,092,127)	(612,838)
General and administrative expenses	(632,754)	(798,935)	(1,117,904)	(1,388,034)
Operating profit (loss)	(16,242)	329,477	(799,561)	1,583,718
Other income (expenses)
Interest income	19,546	7,774	30,394	17,143
Interest expense	(2,302,296)	(112,350)	(2,302,296)	(231,332)
Equity in net gain of affiliate	9,552,226	10,007,184	31,336,158	32,754,891
Other income (loss), net	135,666	13,871	286,398	1,124,254
Total other Income	7,405,142	9,916,479	29,350,654	33,664,956
Income before income taxes	7,388,900	10,245,956	28,551,093	35,248,674
Income tax benefit (expense)	50,613	(9)	18,937	62,104
Net income	7,439,513	10,245,947	28,570,030	35,310,778
Less: Net (income) loss attributable to non-controlling interests	(183,181)	(527,474)	(132,871)	(142,459)
Net income attributable to shareholders of Sunrise Real Estate Group, Inc.	7,256,332	9,718,473	28,437,159	35,168,319
Net income	7,439,513	10,245,947	28,570,030	35,310,778
Other comprehensive income Foreign currency translation adjustment	(5,814,632)	881,953	(2,119,582)	377,646
Comprehensive income	1,624,881	11,127,900	26,450,448	35,688,424
Less: Comprehensive income attributable to non-controlling interests	(58,298)	(582,398)	(98,959)	(216,521)
Total comprehensive income attributable to shareholders	$ 1,566,583	$ 10,545,502	$ 26,351,489	$ 35,471,903
Earnings per share - basic and fully diluted	$ 0.11	$ 0.15	$ 0.41	$ 0.52
Weighted average common shares outstanding - Basic and fully diluted	68,691,925	68,691,925	68,691,925	68,691,925

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 28,570,030	$ 35,310,778
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization	249,487	261,914
Loss (Gain) on disposal of property, plant and equipment	4,278	0
Equity in net loss (income) of unconsolidated affiliates	(31,336,157)	(32,924,518)
Changes in assets and liabilities
Accounts receivable	(87,736)	733,216
Promissory deposits	0	(8,746)
Real estate property under development	364,199	11,526,808
Customer Deposits	(921,555)	(4,899,842)
Amount due from unconsolidated affiliates	(5,643)	(5,364)
Other receivables and deposits	(215,630)	(1,026,037)
Deferred tax assets	(71,320)	(62,104)
Accounts payable	(1,131,522)	(825,092)
Other payables and accrued expenses	(119,489)	(730,160)
Other taxes payable	(7,028)	(170,521)
Income taxes payable	(21,074)	23,625
Net cash provided by operating activities	(4,729,160)	7,203,957
Cash flows from investing activities
Purchases of property and equipment	0	(1,806)
Net Cash from Transactional financial assets	(1,817,514)	0
Advances to unconsolidated affiliates, net	0	0
Net cash provided by (used in) investing activities	(1,817,514)	(1,806)
Cash flows from financing activities
Restricted cash	694,555	(715,882)
Bank loan repayments	0	(5,603,782)
Capital injection from no controlling interests Of consolidated	0	36,439
Repayments to directors	(3,909,110)	0
Advances from directors	15,396	43,713
Amount due to unconsolidated affiliates	13,356,656	1,621,278
Repayments to an affiliate	141,210	(2,757,673)
Proceeds from new promissory notes	0	(155,141)
Repayments of promissory notes	0	(21,864)
Net cash used in financing activities	10,298,707	(7,552,912)
Effect of exchange rate changes on cash and cash equivalents	247,967	375,754
Net increase in cash and cash equivalents	4,000,000	24,993
Cash and cash equivalents at beginning of period	5,869,944	8,693,345
Cash and cash equivalents at end of period	9,869,944	8,718,338
Supplemental disclosure of cash flow information
Income taxes paid	72,559	0
Interest paid	$ 142,710	$ 387,998

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ORGANIZATION AND DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2018

Organization and Description Of Business [Abstract]

Business Description and Basis of Presentation [Text Block]

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Sunrise Real Estate Group, Inc. “SRRE” was incorporated in Texas on October 10, 1996 under the name of Parallax Entertainment, Inc. SRRE together with its subsidiaries and equity investment described below is collectively referred to as “the Company”, “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, 2018, the Company has the following major subsidiaries and equity investment.

Company Name	Date of Incorporation	Place of Incorporation	% of Ownership held by the Company		Relationship with the Company	Principal activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands		100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands		100%	Subsidiary	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”)	August 20, 2001	PRC		100%	Subsidiary	Property brokerage services
Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”)	February 5, 2004	PRC		100%	Subsidiary	Property brokerage services
Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC		75.25%*	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC		75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC		24%**	Subsidiary	Real estate development
Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)	October 20, 2010	PRC		100%	Subsidiary	Property brokerage services
Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)	November 10, 2010	PRC		60%	Subsidiary	Property brokerage services
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC		100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC		100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC		100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC		49%	Equity investment	Real estate development
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”)	September 28, 2011	PRC		40%	Equity investment	Property brokerage services
Xin Guang Investment Management and Consulting Company Limited (“XG”)	December 17, 2012	PRC		49%	Equity investment	Investment management and consulting
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC		20.75%***	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC		100%	Subsidiary	Investment holding

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

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

*** On June 20^th 2018, SHDEW sold additional shares of capital stock to increase its registered capital, which diluted the Company’s equity interest of SHDEW from 23.08% to 20.75%.

The accompanying condensed consolidated balance sheet as of December 31, 2017, 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 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, 2018 and the results of operations for the six months ended June 30, 2018 and 2017, and the cash flows for the six months ended June 30, 2018 and 2017. 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, 2017. The results of operations for the six months ended June 30, 2018 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Principles of Consolidation

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

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

Foreign Currency Translation and Transactions

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

Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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, 2018 and December 31, 2017 are $1: RMB6.6166 and $1: RMB6.5342, respectively.

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

Real Estate Property under Development

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

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

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

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

For the six months ended June 30, 2018, the company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion.

Long Term Investments

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

Investment in Unconsolidated Affiliates

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

When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate.

The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in the value of the investment that is not temporary. The Company did not recorded any impairment losses in any of the periods reported.

Other Investments

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

Government Subsidies

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

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

Government subsidy was received in 2012 and the company recorded it as deferred government subsidy in balance sheets. As of June 30, 2018 and December 31, 2017, the deferred government subsidy amounted to $5,009,433 and $5,072,605, respectively. The subsidy was used to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date.

Revenue Recognition

Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions or act as an escrow intermediary between the developer and the buyer.

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

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

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

The Company accounts for real estate development sales in accordance with the ASC 976-605, “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). A real estate development sale is recognized by the percentage-of-completion method on the sale of individual units when the individual unit sites are being sold separately and all the following criteria are met as below:

a. Construction is beyond a preliminary stage.

b. The buyer is committed to the extent of being unable to require a refund except for no delivery of the unit.

c. Sufficient units have already been sold to assure that the entire property will not revert to rental property.

d. Sales prices are collectible.

e. Aggregate sales proceeds and costs can be reasonably estimated.

If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met.

All revenues represent gross revenues less sales and business tax.

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

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

New Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of this accounting standard update.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update on its financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company's financial statements and disclosures.

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RESTRICTED CASH

6 Months Ended

Jun. 30, 2018

Cash and Cash Equivalents [Abstract]

Cash And Cash Equivalents Restricted Cash And Cash Equivalents [Text Block]

NOTE 3– RESTRICTED CASH

The Company is required to maintain certain deposits with the bank that provide mortgage loans to the Company. As of June 30, 2018 and December 31, 2017, the Company held cash deposits of $385,891 and $1,068,805 as guarantee to the banks which provides mortgage loan to individual customers of our construction products. These balances are subject to withdrawal restrictions and were not covered by insurance.

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TRANSACTIONAL FINANCIAL ASSETS

6 Months Ended

Jun. 30, 2018

Schedule of Investments [Abstract]

Investment Holdings [Text Block]

NOTE 4– TRANSACTIONAL FINANCIAL ASSETS

As of June 30, 2018, we have $24,616,527 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 2.8% to 5.35% depending on the amount and time period invested.

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PROMISSORY DEPOSITS

6 Months Ended

Jun. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets Disclosure [Text Block]

NOTE 5- PROMISSORY DEPOSITS

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

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REAL ESTATE PROPERTY UNDER DEVELOPMENT

6 Months Ended

Jun. 30, 2018

Real Estate Held for Development and Sale [Abstract]

Real Estate Held For Development and Sale [Text Block]

NOTE 6 – REAL ESTATE PROPERTY UNDER DEVELOPMENT

Real estate property under development represents the Company’s real estate development project in Linyi, the PRC (“Linyi Project”), which is located on the junction of Xiamen Road and Hong Kong Road in Linyi City Economic Development Zone, Shandong Province, PRC. This project covers a site area of approximately 103,385 square meters for the development of villa-style residential housing buildings. The Company acquired the site and commenced construction of this project during the fiscal year of 2012.

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

For the period ended of June 30, 2018, the Company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion. As of June 30, 2018, land use rights included in real estate property under development totaled $66,776,646.

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OTHER RECEIVABLES AND DEPOSITS, NET

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 7 - OTHER RECEIVABLES AND DEPOSITS, NET

	June 30,		December 31,
	2018		2017
Advances to staff	$	84,965		118,835
Rental deposits		53,340		72,531
Prepaid expense		28,145		22,572
Prepaid tax		4,635,046		4,687,947
Other receivables		2,041,789		1,817,193
	$	6,843,285	$	6,719,078

Other receivables and deposits as of June 30, 2018 and December 31, 2017 were stated net of allowance for doubtful accounts of $329,488 and $674,478, respectively.

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PROPERTY AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 8 – PROPERTY AND EQUIPMENT, NET

	June 30,		December 31,
	2018		2017
Furniture and fixtures	$	164,585	$	166,660
Computer and office equipment		161,187		163,969
Motor vehicles		553,103		602,260
Properties		2,287,378		2,315,428
		3,166,253		3,248,317
Less: Accumulated depreciation		(1,967,002)		(1,964,416)
	$	1,199,251	$	1,283,901

Depreciation and amortization expense for property and equipment amounted to $249,487 and $88,820 for the six months ended June 30, 2018 and 2017, respectively.

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INVESTMENT PROPERTIES, NET

6 Months Ended

Jun. 30, 2018

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

NOTE 9 – INVESTMENT PROPERTIES, NET

	June 30,		December 31,
	2018		2017
Investment properties	$	9,358,405	$	9,476,420
Less: Accumulated depreciation		(5,334,440)		(5,221,155)
	$	4,023,965	$	4,255,265

Depreciation and amortization expense for investment properties amounted to $924,757 and $515,889 for the six months ended June 30, 2018 and 2017, respectively.

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INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE

6 Months Ended

Jun. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 10 – INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE

The investments in unconsolidated affiliates primarily consist of WHYYL (49%) and SHDEW (20.75%) As of June 30, 2018, the investment amount in WHYYL and SHDEW were $0 and $80,256,530 separately.

WHYYL is primarily developing a real estate project in Wuhan, the PRC on a parcel of land covering approximately 27,950 square meters with a 3-year planned construction period. SHDEW is a company engaged principally in the R&D and sale of skincare and cosmetic products. The Company has accounted for these investments using the equity method as the Company has the ability to exercise significant influence over their activities.

In 2011, the Company invested $4,697,686 for acquiring a 49% equity interest in WHYYL to expand its operations to the real estate development business. As of June 30, 2018 the investment in WHYYL was $0, which included its equity in the net loss of WHYYL, net of income taxes, totaling $681,627 as of June 30, 2018. The following table sets forth the unaudited financial information of WHYYL. For the period ended of March 2018, WHYYL had recognized the net revenue and cost of revenue of the project at a certain proportion.

	Six Months ended June 30,
	2018		2017
Revenues	$	-	$	-
Net loss	$	681,627	$	1,090,090

	June 30,		December 31,
	2018		2017
Current assets	$	13,284,146	$	19,066,691
Non-current assets		8,324		9,736
Total assets		13,292,470		19,076,427
Current liabilities		13,840,076		18,965,514
Total equity	$	(547,607)	$	110,914

As of June 30, 2018 and December 31, 2017, the Company has a balance of $2,658,482 and $2,686,498 due from WHYYL, which was no longer charged interest from September 1, 2014.

SHDEW was established in June of 2013 with its business as a skincare and cosmetic company. The company has made progress in its operations. Its Wechat stores have a membership of over a million members. It is developing its own skincare products as well as solidifying its position in the ecommerce platform.

The net profit for SHDEW was $177,035,906 for the six months ended June 30, 2018, with total equity in the amount of $396,214,174 as of June 30, 2018.

	Six Months ended June 30,
	2018		2017
Revenues	$	410,877,510	$	344,292,109
Net income	$	177,035,906	$	162,553,533

	June 30,		December 31,
	2018		2017
Current assets	$	752,570,192	$	647,287,630
Non-current assets		19,727,238		19,471,756
Total assets		772,297,430		666,759,387
Current liabilities		376,083,256		447,406,389
Total equity	$	396,214,174	$	219,337,694

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PROMISSORY NOTES PAYABLE

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Notes Payable Disclosure [Text Block]

NOTE 11– PROMISSORY NOTES PAYABLE

The promissory notes payable consist of the following unsecured notes to unrelated parties. Included in the balances are promissory notes with outstanding principal and unpaid interest of an aggregate of $1,511,350 and $1,530,409 as of June 30, 2018 and December 31, 2017, respectively.

The promissory note with a principal as of June 30, 2018 amounting to $755,675 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2018 and December 31, 2017, the outstanding principal and unpaid interest related to this promissory note amounted to $755,675 and $765,205, respectively.

The promissory note with a principal as of June 30, 2018 amounts to $755,675 bears interest at a rate of 0% per annum, is unsecured and has no fixed term of repayment. As of June 30, 2018 and December 31, 2017, the outstanding principal and unpaid interest related to this promissory note amounted to $755,675 and $765,205, respectively.

For the six months ended June 30, 2018, the interest expense related to these promissory notes was $NIL.

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AMOUNTS DUE TO DIRECTORS

6 Months Ended

Jun. 30, 2018

Director [Member]

Related Party Transactions Disclosure [Text Block]

NOTE 12– AMOUNTS DUE TO DIRECTORS

	June 30,		December 31,
	2018		2017
Lin Chi-Jung	$	1,333,664	$	5,154,329
Lin Hsin-Hung		110,683		108,842
	$	1,444,347	$	5,263,171

(a) The balance due to Lin Chi-Jung consists of unpaid salaries and reimbursements and advances together with unpaid interest.

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

The advances together with unpaid interest as of June 30, 2018 and December 31, 2017 were $1,333,664 and $5,154,329, respectively. The balances are unsecured and interest bearing at rates 0% per annum.

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

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OTHER PAYABLES AND ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

NOTE 13- OTHER PAYABLES AND ACCRUED EXPENSES

	June 30,		December 31,
	2018		2017
Accrued staff commission and bonus	$	330,320	$	302,710
Rental deposits received		49,270		161,055
Customer deposits		-		-
Dividends payable to non-controlling interest		203,359		291,546
Other payables		251,119		205,924
	$	834,068	$	961,235

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ACCOUNT PAYABLE

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 14- ACCOUNT PAYABLE

Account payable was mostly derived from our property development of Linyi project and GXL project. As of June 30, 2018 and December 31, 2017, the company’s account payable amounted to $2,629,786 and $3,767,578.

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AMOUNT DUE TO AFFILIATES

6 Months Ended

Jun. 30, 2018

Due To Affiliate [Member]

Related Party Transaction [Line Items]

Related Party Transactions Disclosure [Text Block]

NOTE 15 – AMOUNT DUE TO AFFILIATES

The temporary borrowing, in the amount of $31,294,433 from SHDEW is for operations and is unsecured, has an interest between 4.35% to 4.6% and payable on demands. The amount due to JXSY, in the amount of $532,963, were intercompany transfers for day to day operation.

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CUSTOMER DEPOSITS

6 Months Ended

Jun. 30, 2018

Customer Deposits [Abstract]

Customer Deposits Disclosure [Text Block]

NOTE 16 – CUSTOMER DEPOSITS

Customer deposits were mostly derived from our property development of Linyi project and GXL project, which was pre-sale collection from our customers. As of June 30, 2018, and December 31, 2017, the company’s customer deposits amounted to $40,063,485 and $41,613,715.

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INCOME TAX PAYABLE

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 17 – 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.

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DEFERRED GOVERNMENT SUBSIDY

6 Months Ended

Jun. 30, 2018

Deferred Government Subsidy [Abstract]

Deferred Government Subsidy [Text Block]

NOTE 18– DEFERRED GOVERNMENT SUBSIDY

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

Government subsidy was received in 2012, and as of June 30, 2018 and December 31, 2017, the Company’s deferred government subsidy amounted to $5,009,433 and $5,072,605, respectively. The subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project, and are repayable if the Company fails to complete the subsidized property development project before the agreed date. The entire government subsidy is deferred and included as deferred government subsidy in consolidated balance sheets.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

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, 2018 and 2017 were $33,780 and $118,606, respectively.

As of June 30, 2018, the Company had the following operating lease obligations.

	Amount
Within one year	$	65,604
Two to five years		-
	$	65,604

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STATUTORY RESERVE

6 Months Ended

Jun. 30, 2018

Statutory Reserve [Abstract]

Statutory Reserve Disclosure [Text Block]

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 is determined by the board of directors. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the stockholders, convert the general reserve into capital. The staff welfare and bonus reserve are used for the collective welfare of the employees of the subsidiary. The enterprise expansion reserve is for the expansion of the subsidiary operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law.

In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiary are considered as restricted net assets and are not distributable as cash dividends. As of June 30, 2018, and December 31, 2017, the Company’s statutory reserve fund was $931,510 and $931,510, respectively.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 21 - SEGMENT INFORMATION

The Company's chief executive officer and chief operating officer have been identified as the chief operating decision makers. The Company's chief operating decision makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment.

The Company evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, and income from operations. The following tables show the operations of the Company's operating segments: 

	Three Months Ended June 30, 2018
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	461,890	$	1,457,375	$	-	$	-	$	1,919,275
Cost of revenues		(264,696)		(739,457)		-		-		(1,004,153)
Gross profit		197,204		717,918		-		-		915,122
Operating expenses		(176,811)		(121,716)		-		(83)		(298,610)
General and administrative expenses		(103,376)		(222,971)		-		(306,407)		(632,754)
Operating loss		(82,983)		373,231				(306,490)		(16,242)
Other income (expenses)
Interest income		15,505		2,253		-		1,788		19,546
Interest expense		-		(142,710)		(2,159,586)		-		2,302,296
Other income, Net		(174,437)		358		310,008		263		135,666
Equity in net income (loss) of unconsolidated affiliates		-		-		9,552,226		-		9,552,226
Total other (expenses) income		(158,932)		(140,099)		7,702,648		1,525		7,405,142
Income (loss) before income taxes		(241,915)		(233,132)		7,702,648		(304,965)		7,388,900
Income tax		(43,032)		7,581		-		-		50,613
Net Income( loss)	$	(198,883)	$	(240,713)	$	7,702,648	$	(304,965)	$	7,439,513

	Six Months Ended June 30, 2018
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	890,370	$	2,607,700	$	-	$	-	$	3,498,070
Cost of revenues		(490,703)		(1,596,897)		-		-		(2,087,600)
Gross profit		399,667		1,010,803		-		-		1,410,470
Operating expenses		(690,421)		(401,524)		-		(182)		(1,092,127)
General and administrative expenses		(426,358)		(379,389)		-		(312,157)		(1,117,904)
Operating loss		(717,112)		229,890		-		(312,339)		(799,561)
Other income (expenses)
Interest income		20,556		4,743		-		5,095		30,394
Interest expense		-		(142,710)		(2,159,586)		-		(2,302,296)
Other income, Net		(174,476)		(144,972)		606,109		(263)		286,398
Equity in net income (loss) of unconsolidated affiliates		-		-		31,336,158		-		29,350,654
Total other (expenses) income		(153,920)		(282,939)		29,782,680		4,832		28,551,093
Income (loss) before income taxes		(871,031)		(53,049)		29,782,680		(307,507)		28,551,093
Income tax		(52,383)		71,320		-		-		18,937
Net Income (loss)	$	923,414	$	18,271	$	29,782,680	$	(307,507)	$	28,570,030

	Three Months Ended June 30, 2017
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	435,039	$	15,744,305	$	-	$	-	$	16,179,344
Cost of revenues		(205,036)		(14,588,519)		-		(70,574)		(14,864,129)
Gross profit		230,003		1,155,786		-		(70,574)		1,315,215
Operating expenses		(138,539)		(46,598)		-		(1,666)		(186,803)
General and administrative expenses		(374,806)		(389,677)		-		(34,452)		(798,935)
Operating loss		(283,342)		719,511				(106,692)		329,477
Other income (expenses)
Interest income		5,241		2,459		-		74		7,774
Interest expense		(112,350)		-		-		-		(112,350)
Other income, Net		(7,398)		21,269		-		-		13,871
Equity in net income (loss) of unconsolidated affiliates		-		-		10,007,184		-		10,007,184
Total other (expenses) income		(114,507)		23,728		10,007,184		74		9,916,479
Income (loss) before income taxes		(397,849)		743,239		10,007,184		(106,618)		10,245,956
Income tax		-		(9)		-		-		(9)
Net Income (loss)	$	(397,849)	$	743,230	$	10,007,184	$	(106,618)	$	10,245,947

	Six Months Ended June 30, 2017
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	3,016,155	$	15,744,305	$	-	$	-	$	18,760,460
Cost of revenues		(517,224)		(14,588,519)		-		(70,127)		(15,175,870)
Gross profit		2,498,931		1,155,786		-		(70,127)		3,584,590
Operating expenses		(269,359)		(339,429)		-		(4,050)		(612,838)
General and administrative expenses		(556,134)		(822,726)		-		(9,174)		(1,388,034)
Operating loss		1,673,438		(6,369)		-		(83,351)		1,583,718
Other income (expenses)
Interest income		9,901		7,095		-		147		17,143
Interest expense		(231,332)		-		-		-		(231,332)
Other income, Net		1,104,402		19,852		-		-		1,124,254
Equity in net income (loss) of unconsolidated affiliates		-		-		32,754,891		-		32,754,891
Total other (expenses) income		882,971		26,947		32,754,891		147		33,664,956
Income (loss) before income taxes		2,556,409		20,578		32,754,891		(83,204)		35,248,674
Income tax		-		62,104		-		-		62,104
Net Income (loss)	$	2,556,409	$	82,682	$	32,754,891	$	(83,204)	$	35,310,778

	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
As of June 30, 2018
Real estate property under development	$	-	$	66,776,646	$	-	$	-	$	66,776,646
Total assets		11,195,172		81,710,232		105,024,192		54,525		197,984,121
As of June 30, 2017
Real estate property under development		-		66,368,683		-		-		66,368,683
Total assets	$	10,120,878	$	82,293,920	$	54,006,738	$	110,638	$	146,532,174

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis Of Accounting, Policy [Policy Text Block]

Basis of Accounting and Principles of Consolidation

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

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

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation and Transactions

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

Foreign currency transactions during the period are translated into each company’s denominated currency at the exchange rates ruling at the transaction dates. 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, 2018 and December 31, 2017 are $1: RMB6.6166 and $1: RMB6.5342, respectively.

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

Real Estate Held for Development and Sale, Policy [Policy Text Block]

Real Estate Property under Development

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

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

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

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

For the six months ended June 30, 2018, the company had recognized the net revenue and cost of revenue of Linyi project at a certain proportion.

Equity Method Investments, Policy [Policy Text Block]

Long Term Investments

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

Investment in Unconsolidated Affiliates

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

When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate.

The Company is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in the value of the investment that is not temporary. The Company did not recorded any impairment losses in any of the periods reported.

Other Investments

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

Government Subsidies Policy [Policy Text Block]

Government Subsidies

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

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

Government subsidy was received in 2012 and the company recorded it as deferred government subsidy in balance sheets. As of June 30, 2018 and December 31, 2017, the deferred government subsidy amounted to $5,009,433 and $5,072,605, respectively. The subsidy was used to reimburse the land acquisition costs and certain construction costs incurred for the Company’s property development project in Linyi, and are repayable if the Company fails to complete the subsidized property development project by the agreed date.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Agency commission revenue from property brokerage is recognized when the property developer and the buyer complete a property sales transaction, and the property developer grants confirmation to us to be able to invoice them accordingly. The time when we receive the commission is normally at the time when the property developer receives from the buyer a portion of the sales proceeds in accordance with the terms of the relevant property sales agreement, or the balance of the bank loan to the buyer has been funded, or recognized under the sales schedule or other specific items of agency sales agreement with developer. At no point does the Company handle any monetary transactions or act as an escrow intermediary between the developer and the buyer.

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

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

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

The Company accounts for real estate development sales in accordance with the ASC 976-605, “Accounting for Sales of Real Estate” (Formerly Statement of Financial Accounting Standards No. 66) (“ASC 976-605”). A real estate development sale is recognized by the percentage-of-completion method on the sale of individual units when the individual unit sites are being sold separately and all the following criteria are met as below:

a. Construction is beyond a preliminary stage.

b. The buyer is committed to the extent of being unable to require a refund except for no delivery of the unit.

c. Sufficient units have already been sold to assure that the entire property will not revert to rental property.

d. Sales prices are collectible.

e. Aggregate sales proceeds and costs can be reasonably estimated.

If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met.

All revenues represent gross revenues less sales and business tax.

Earnings Per Share, Policy [Policy Text Block]

Net Earnings (Loss) per Common Share

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

Adoption Of New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Standards

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

New Accounting Pronouncements [Policy Text Block]

New Accounting Pronouncements

In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of this accounting standard update.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents on the statement of cash flows and disclosure of how the statement of cash flows reconciles to the balance sheet if restricted cash is shown separately from cash and cash equivalents on the balance sheet. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update on its financial statements.

In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in the presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on the Company's financial statements and disclosures.

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ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables)

6 Months Ended

Jun. 30, 2018

Organization and Description Of Business [Abstract]

Consolidation Entities Nature Of Business [Table Text Block]

As of June 30, 2018, the Company has the following major subsidiaries and equity investment.

Company Name	Date of Incorporation	Place of Incorporation	% of Ownership held by the Company		Relationship with the Company	Principal activity
Sunrise Real Estate Development Group, Inc. (CY-SRRE)	April 30, 2004	Cayman Islands		100%	Subsidiary	Investment holding
Lin Ray Yang Enterprise Limited (“LRY”)	November 13, 2003	British Virgin Islands		100%	Subsidiary	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”)	August 20, 2001	PRC		100%	Subsidiary	Property brokerage services
Shanghai Shang Yang Real Estate Consultation Company Limited (“SHSY”)	February 5, 2004	PRC		100%	Subsidiary	Property brokerage services
Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”)	November 24, 2006	PRC		75.25%*	Subsidiary	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”)	June 25, 2004	PRC		75%	Subsidiary	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited (“LYSY”)	October 13, 2011	PRC		24%**	Subsidiary	Real estate development
Shangqiu Shang Yang Real Estate Consultation Company Limited (“SQSY”)	October 20, 2010	PRC		100%	Subsidiary	Property brokerage services
Wuhan Gao Feng Hui Consultation Company Limited (“WHGFH”)	November 10, 2010	PRC		60%	Subsidiary	Property brokerage services
Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”)	September 18, 2008	PRC		100%	Subsidiary	Property brokerage services
Shanghai Rui Jian Design Company Limited (“SHRJ”)	August 15, 2011	PRC		100%	Subsidiary	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited (“LYRL”)	March 6, 2012	PRC		100%	Subsidiary	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”)	December 28, 2009	PRC		49%	Equity investment	Real estate development
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited (“SHXXY”)	September 28, 2011	PRC		40%	Equity investment	Property brokerage services
Xin Guang Investment Management and Consulting Company Limited (“XG”)	December 17, 2012	PRC		49%	Equity investment	Investment management and consulting
Shanghai Da Er Wei Trading Company Limited (“SHDEW”)	June 6, 2013	PRC		20.75%***	Equity investment	Import and export trading
Shanghai Hui Tian (“SHHT”)	July 25, 2014	PRC		100%	Subsidiary	Investment holding

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

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

*** On June 20^th 2018, SHDEW sold additional shares of capital stock to increase its registered capital, which diluted the Company’s equity interest of SHDEW from 23.08% to 20.75%.

XML

OTHER RECEIVABLES AND DEPOSITS, NET (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Schedule Of Other Receivables and Deposit [Table Text Block]

	June 30,		December 31,
	2018		2017
Advances to staff	$	84,965		118,835
Rental deposits		53,340		72,531
Prepaid expense		28,145		22,572
Prepaid tax		4,635,046		4,687,947
Other receivables		2,041,789		1,817,193
	$	6,843,285	$	6,719,078

XML

PROPERTY AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	June 30,		December 31,
	2018		2017
Furniture and fixtures	$	164,585	$	166,660
Computer and office equipment		161,187		163,969
Motor vehicles		553,103		602,260
Properties		2,287,378		2,315,428
		3,166,253		3,248,317
Less: Accumulated depreciation		(1,967,002)		(1,964,416)
	$	1,199,251	$	1,283,901

XML

INVESTMENT PROPERTIES, NET (Tables)

6 Months Ended

Jun. 30, 2018

Real Estate [Abstract]

Schedule of Real Estate Properties [Table Text Block]

	June 30,		December 31,
	2018		2017
Investment properties	$	9,358,405	$	9,476,420
Less: Accumulated depreciation		(5,334,440)		(5,221,155)
	$	4,023,965	$	4,255,265

XML

INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Tables)

6 Months Ended

Jun. 30, 2018

WHYYL [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Table Text Block]

The following table sets forth the unaudited financial information of WHYYL. For the period ended of March 2018, WHYYL had recognized the net revenue and cost of revenue of the project at a certain proportion.

	Six Months ended June 30,
	2018		2017
Revenues	$	-	$	-
Net loss	$	681,627	$	1,090,090

	June 30,		December 31,
	2018		2017
Current assets	$	13,284,146	$	19,066,691
Non-current assets		8,324		9,736
Total assets		13,292,470		19,076,427
Current liabilities		13,840,076		18,965,514
Total equity	$	(547,607)	$	110,914

SHDEW [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Table Text Block]

The net profit for SHDEW was $177,035,906 for the six months ended June 30, 2018, with total equity in the amount of $396,214,174 as of June 30, 2018.

	Six Months ended June 30,
	2018		2017
Revenues	$	410,877,510	$	344,292,109
Net income	$	177,035,906	$	162,553,533

	June 30,		December 31,
	2018		2017
Current assets	$	752,570,192	$	647,287,630
Non-current assets		19,727,238		19,471,756
Total assets		772,297,430		666,759,387
Current liabilities		376,083,256		447,406,389
Total equity	$	396,214,174	$	219,337,694

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AMOUNTS DUE TO DIRECTORS (Tables)

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

	June 30,		December 31,
	2018		2017
Lin Chi-Jung	$	1,333,664	$	5,154,329
Lin Hsin-Hung		110,683		108,842
	$	1,444,347	$	5,263,171

XML

OTHER PAYABLES AND ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Other Accounts Payable and Accrued Liabilities [Table Text Block]

	June 30,		December 31,
	2018		2017
Accrued staff commission and bonus	$	330,320	$	302,710
Rental deposits received		49,270		161,055
Customer deposits		-		-
Dividends payable to non-controlling interest		203,359		291,546
Other payables		251,119		205,924
	$	834,068	$	961,235

XML

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

As of June 30, 2018, the Company had the following operating lease obligations.

	Amount
Within one year	$	65,604
Two to five years		-
	$	65,604

XML

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following tables show the operations of the Company's operating segments: 

	Three Months Ended June 30, 2018
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	461,890	$	1,457,375	$	-	$	-	$	1,919,275
Cost of revenues		(264,696)		(739,457)		-		-		(1,004,153)
Gross profit		197,204		717,918		-		-		915,122
Operating expenses		(176,811)		(121,716)		-		(83)		(298,610)
General and administrative expenses		(103,376)		(222,971)		-		(306,407)		(632,754)
Operating loss		(82,983)		373,231				(306,490)		(16,242)
Other income (expenses)
Interest income		15,505		2,253		-		1,788		19,546
Interest expense		-		(142,710)		(2,159,586)		-		2,302,296
Other income, Net		(174,437)		358		310,008		263		135,666
Equity in net income (loss) of unconsolidated affiliates		-		-		9,552,226		-		9,552,226
Total other (expenses) income		(158,932)		(140,099)		7,702,648		1,525		7,405,142
Income (loss) before income taxes		(241,915)		(233,132)		7,702,648		(304,965)		7,388,900
Income tax		(43,032)		7,581		-		-		50,613
Net Income( loss)	$	(198,883)	$	(240,713)	$	7,702,648	$	(304,965)	$	7,439,513

	Six Months Ended June 30, 2018
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	890,370	$	2,607,700	$	-	$	-	$	3,498,070
Cost of revenues		(490,703)		(1,596,897)		-		-		(2,087,600)
Gross profit		399,667		1,010,803		-		-		1,410,470
Operating expenses		(690,421)		(401,524)		-		(182)		(1,092,127)
General and administrative expenses		(426,358)		(379,389)		-		(312,157)		(1,117,904)
Operating loss		(717,112)		229,890		-		(312,339)		(799,561)
Other income (expenses)
Interest income		20,556		4,743		-		5,095		30,394
Interest expense		-		(142,710)		(2,159,586)		-		(2,302,296)
Other income, Net		(174,476)		(144,972)		606,109		(263)		286,398
Equity in net income (loss) of unconsolidated affiliates		-		-		31,336,158		-		29,350,654
Total other (expenses) income		(153,920)		(282,939)		29,782,680		4,832		28,551,093
Income (loss) before income taxes		(871,031)		(53,049)		29,782,680		(307,507)		28,551,093
Income tax		(52,383)		71,320		-		-		18,937
Net Income (loss)	$	923,414	$	18,271	$	29,782,680	$	(307,507)	$	28,570,030

	Three Months Ended June 30, 2017
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	435,039	$	15,744,305	$	-	$	-	$	16,179,344
Cost of revenues		(205,036)		(14,588,519)		-		(70,574)		(14,864,129)
Gross profit		230,003		1,155,786		-		(70,574)		1,315,215
Operating expenses		(138,539)		(46,598)		-		(1,666)		(186,803)
General and administrative expenses		(374,806)		(389,677)		-		(34,452)		(798,935)
Operating loss		(283,342)		719,511				(106,692)		329,477
Other income (expenses)
Interest income		5,241		2,459		-		74		7,774
Interest expense		(112,350)		-		-		-		(112,350)
Other income, Net		(7,398)		21,269		-		-		13,871
Equity in net income (loss) of unconsolidated affiliates		-		-		10,007,184		-		10,007,184
Total other (expenses) income		(114,507)		23,728		10,007,184		74		9,916,479
Income (loss) before income taxes		(397,849)		743,239		10,007,184		(106,618)		10,245,956
Income tax		-		(9)		-		-		(9)
Net Income( loss)	$	(397,849)	$	743,230	$	10,007,184	$	(106,618)	$	10,245,947

	Six Months Ended June 30, 2017
	Property
	Brokerage		Real Estate		Investment
	Services		Development		Transaction		Others		Total
Net revenues	$	3,016,155	$	15,744,305	$	-	$	-	$	18,760,460
Cost of revenues		(517,224)		(14,588,519)		-		(70,127)		(15,175,870)
Gross profit		2,498,931		1,155,786		-		(70,127)		3,584,590
Operating expenses		(269,359)		(339,429)		-		(4,050)		(612,838)
General and administrative expenses		(556,134)		(822,726)		-		(9,174)		(1,388,034)
Operating loss		1,673,438		(6,369)		-		(83,351)		1,583,718
Other income (expenses)
Interest income		9,901		7,095		-		147		17,143
Interest expense		(231,332)		-		-		-		(231,332)
Other income, Net		1,104,402		19,852		-		-		1,124,254
Equity in net income (loss) of unconsolidated affiliates		-		-		32,754,891		-		32,754,891
Total other (expenses) income		882,971		26,947		32,754,891		147		33,664,956
Income (loss) before income taxes		2,556,409		20,578		32,754,891		(83,204)		35,248,674
Income tax		-		62,104		-		-		62,104
Net Income( loss)	$	2,556,409	$	82,682	$	32,754,891	$	(83,204)	$	35,310,778

	Property
	Brokerage		Real Estate		Investment*
	Services		Development		Transaction		Others		Total
As of June 30, 2018
Real estate property under development	$	-	$	66,776,646	$	-	$	-	$	66,776,646
Total assets		11,195,172		81,710,232		105,024,192		54,525		197,984,121
As of June 30, 2017
Real estate property under development		-		66,368,683		-		-		66,368,683
Total assets	$	10,120,878	$	82,293,920	$	54,006,738	$	110,638	$	146,532,174

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)	6 Months Ended
	Jun. 30, 2018
Sunrise Real Estate Development Group, Inc. [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Apr. 30, 2004
Subsidiaries, Place of Incorporation	Cayman Islands
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding
Lin Ray Yang Enterprise Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 13, 2003
Subsidiaries, Place of Incorporation	British Virgin Islands
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding
Shanghai Xin Ji Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Aug. 20, 2001
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Shanghai Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Feb. 05, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Suzhou Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 24, 2006
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	75.25%	[1]
Subsidiaries, Principal activity	Property brokerage and management services
Suzhou Xi Ji Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jun. 25, 2004
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	75.00%
Subsidiaries, Principal activity	Property brokerage services
Linyi Shangyang Real Estate Development Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Oct. 13, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	24.00%	[2]
Subsidiaries, Principal activity	Real estate development
Shangqiu Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Oct. 20, 2010
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Wuhan Gao Feng Hui Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Nov. 10, 2010
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	60.00%
Subsidiaries, Principal activity	Property brokerage services
Sanya Shang Yang Real Estate Consultation Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Sep. 18, 2008
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Shanghai Rui Jian Design Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Aug. 15, 2011
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Property brokerage services
Linyi Rui Lin Construction and Design Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Mar. 06, 2012
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding
Wuhan Yuan Yu Long Real Estate Development Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Dec. 28, 2009
Subsidiaries, % of Ownership held by the Company	49.00%
Equity investment, Place of Incorporation	PRC
Equity investment, Principal activity	Real estate development
Shanghai Xin Xing Yang Real Estate Brokerage Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Sep. 28, 2011
Subsidiaries, % of Ownership held by the Company	40.00%
Equity investment, Place of Incorporation	PRC
Equity investment, Principal activity	Property brokerage services
Xin Guang Investment Management and Shanghai Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Dec. 17, 2012
Subsidiaries, % of Ownership held by the Company	49.00%
Equity investment, Place of Incorporation	PRC
Equity investment, Principal activity	Investment management and consulting
Shanghai Da Er Wei Trading Company Limited [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jun. 06, 2013
Subsidiaries, % of Ownership held by the Company	20.75%	[3]
Equity investment, Place of Incorporation	PRC
Equity investment, Principal activity	Import and export trading
Shanghai Hui Tian [Member]
Organization And Description Of Business [Line Items]
Subsidiaries, Date of Incorporation	Jul. 25, 2014
Subsidiaries, Place of Incorporation	PRC
Subsidiaries, % of Ownership held by the Company	100.00%
Subsidiaries, Principal activity	Investment holding

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

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

[3] On June 20th 2018, SHDEW sold additional shares of capital stock to increase its registered capital, which diluted the Company’s equity interest of SHDEW from 23.08% to 20.75%.

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ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual)	6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
SHDEW [Member]
Organization And Description Of Business [Line Items]
Equity Method Investment, Ownership Percentage	20.75%	23.08%
Shareholder Of Szsy [Member]
Organization And Description Of Business [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	51.00%
Percentage Of Equity Interest In Subsidiary Sold To Related Party	12.50%
Percentage Of Equity Interest In Subsidiary Transferred To Parent	12.50%
Shareholder Of Lysy [Member]
Organization And Description Of Business [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	51.00%
Percentage Of Equity Interest In Subsidiary Transferred To Parent	75.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	51.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Summary Of Significant Accounting Policies [Line Items]
Foreign Currency Exchange Rate Translation	$ 1	$ 1	¥ 6.6166	¥ 6.5342
Significant Influence Percentage Description	20.00%
Proceeds From Government Subsidies	$ 5,009,433	$ 5,072,605

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RESTRICTED CASH (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Short-term Debt [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash and Cash Equivalents	$ 385,891	$ 1,068,805

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TRANSACTIONAL FINANCIAL ASSETS (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Marketable Securities, Current	$ 24,616,527	$ 23,152,639
Bank Wealth Management Investment Products [Member]
Marketable Securities, Current	$ 24,616,527
Maximum [Member] | Bank Wealth Management Investment Products [Member]
Investment Holdings, Annualized Rate Of Return	5.35%
Minimum [Member] | Bank Wealth Management Investment Products [Member]
Investment Holdings, Annualized Rate Of Return	2.80%

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REAL ESTATE PROPERTY UNDER DEVELOPMENT (Details Textual)	Jun. 30, 2018 USD ($) a	Mar. 13, 2014 m²
Linyi Project [Member]
Real Estate Property Under Development [Line Items]
Area of Land	103,385	2,502
Use Rights [Member]
Real Estate Property Under Development [Line Items]
Finite-Lived Intangible Assets, Net	$ 66,776,646

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OTHER RECEIVABLES AND DEPOSITS, NET (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Other Receivables And Deposits [Line Items]
Advances to staff	$ 84,965	$ 118,835
Rental deposits	53,340	72,531
Prepaid expense	28,145	22,572
Prepaid tax	4,635,046	4,687,947
Other receivables	2,041,789	1,817,193
Other Receivables And Deposit, Net	$ 6,843,285	$ 6,719,078

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OTHER RECEIVABLES AND DEPOSITS, NET (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Other Receivables And Deposits [Line Items]
Allowance for Doubtful Other Receivables, Current	$ 329,488	$ 674,478

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PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,166,253	$ 3,248,317
Less: Accumulated depreciation	(1,967,002)	(1,964,416)
Property, Plant and Equipment, Net	1,199,251	1,283,901
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	164,585	166,660
Computer and office equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	161,187	163,969
Motor vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	553,103	602,260
Properties [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,287,378	$ 2,315,428

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PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization, Total	$ 249,487	$ 261,914
Property And Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization, Total	$ 249,487	$ 88,820

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INVESTMENT PROPERTIES, NET (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Investment Properties [Line Items]
Investment properties	$ 9,358,405	$ 9,476,420
Less: Accumulated depreciation	(5,334,440)	(5,221,155)
Real Estate Investment Property, Net	$ 4,023,965	$ 4,255,265

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INVESTMENT PROPERTIES, NET (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Investment Properties [Line Items]
Depreciation, Depletion and Amortization, Nonproduction	$ 924,757	$ 515,889

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INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Net income (loss)	$ 681,627
WHYYL [Member]
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Revenues	0	$ 0
Net income (loss)	681,627	1,090,090
Current assets	13,284,146		$ 19,066,691
Non-current assets	8,324		9,736
Total assets	13,292,470		19,076,427
Current liabilities	13,840,076		18,965,514
Total equity	(547,607)		110,914
SHDEW [Member]
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Revenues	410,877,510	344,292,109
Net income (loss)	177,035,906	$ 162,553,533
Current assets	752,570,192		647,287,630
Non-current assets	19,727,238		19,471,756
Total assets	772,297,430		666,759,387
Current liabilities	376,083,256		447,406,389
Total equity	$ 396,214,174		$ 219,337,694

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INVESTMENT IN AND AMOUNT DUE FROM AN UNCONSOLIDATED AFFILIATE (Details Textual)	6 Months Ended
	Jun. 30, 2018 USD ($) a	Jun. 30, 2017 USD ($)	Mar. 31, 2018	Dec. 31, 2017 USD ($)	Dec. 31, 2011 USD ($)
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Amount due from an unconsolidated affiliate (Note 9)	$ 2,658,482			$ 2,686,498
Income (Loss) from Equity Method Investments	31,336,157	$ 32,924,518
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	681,627
Equity Method Investment Summarized Financial Information, Equity, Total	0
Equity Method Investments	80,256,530			50,677,228
WHYYL [Member]
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Amount due from an unconsolidated affiliate (Note 9)	$ 2,658,482			2,686,498
Equity Method Investment, Ownership Percentage	49.00%				49.00%
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 681,627	1,090,090
Real Estate Project Land Of Developing Estimated Construction Period	3 years
Real Estate Project Land Of Developing Square Meters | a	27,950
Equity Method Investment Summarized Financial Information, Equity, Total	$ 0
Equity Method Investment, Summarized Financial Information, Liabilities and Equity	(547,607)			110,914
Equity Method Investments					$ 4,697,686
SHDEW [Member]
Investment In And Amount Due From An Unconsolidated Affiliate [Line Items]
Income (Loss) from Equity Method Investments	$ 177,035,906
Equity Method Investment, Ownership Percentage	20.75%		23.08%
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 177,035,906	$ 162,553,533
Equity Method Investment Summarized Financial Information, Equity, Total	80,256,530
Equity Method Investment, Summarized Financial Information, Liabilities and Equity	$ 396,214,174			$ 219,337,694

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PROMISSORY NOTES PAYABLE (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Interest Expense, Debt	$ 0
Unsecured Notes Payable One [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	1,511,350	$ 1,530,409
Unsecured Notes Payable Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 755,675
Debt Instrument, Interest Rate, Stated Percentage	0.00%
Long-term Debt, Gross	$ 755,675	765,205
Unsecured Notes Payable Three [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 755,675
Debt Instrument, Interest Rate, Stated Percentage	0.00%
Long-term Debt, Gross	$ 755,675	$ 765,205

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AMOUNTS DUE TO DIRECTORS (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors	$ 1,444,347	$ 5,263,171
Lin Chi Jung [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors	1,333,664	5,154,329
Lin Hsin Hung [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Amounts due to directors	$ 110,683	$ 108,842

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AMOUNTS DUE TO DIRECTORS (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Officers Or Stockholders Advances	$ 1,333,664	$ 5,154,329
Related Party Transaction, Rate	0.00%

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OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Other Payables And Accrued Expenses [Line Items]
Accrued staff commission and bonus	$ 330,320	$ 302,710
Rental deposits received	49,270	161,055
Customer deposits	0	0
Dividends payable to non-controlling interest	203,359	291,546
Other payables	251,119	205,924
Accrued Liabilities and Other Liabilities	$ 834,068	$ 961,235

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ACCOUNT PAYABLE (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Other Payables And Accrued Expenses [Line Items]
Accounts Payable, Current	$ 2,629,786	$ 3,767,578

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AMOUNT DUE TO AFFILIATES (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to Affiliate, Current	$ 31,827,396	$ 18,579,652
Related Party Transaction, Rate	0.00%
SHDEW [Member]
Related Party Transaction [Line Items]
Due to Affiliate, Current	$ 31,294,433
SHDEW [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	4.60%
SHDEW [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	4.35%
JXSY [Member]
Related Party Transaction [Line Items]
Due to Affiliate, Current	$ 532,963

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CUSTOMER DEPOSITS (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Customer Deposits, Current	$ 40,063,485	$ 41,468,361
Linyi Project [Member]
Customer Deposits, Current	$ 40,063,485	$ 41,613,715

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DEFERRED GOVERNMENT SUBSIDY (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Deferred Government Subsidy [Line Items]
Deferred Government Subsidy	$ 5,009,433	$ 5,072,605

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COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2018 USD ($)
Operating Leased Assets [Line Items]
Within one year	$ 65,604
Two to five years	0
Operating lease commitments arising from the promotional package	$ 65,604

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COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense	$ 33,780	$ 118,606

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STATUTORY RESERVE (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Statutory Accounting Practices [Line Items]
Statutory reserve (Note16)	$ 931,510	$ 931,510
Prc Corparate [Member]
Statutory Accounting Practices [Line Items]
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve	10.00%
Statutory Reserve Maintenance Required, Percentage On Registered Capital	50.00%
Prc Subsidiary [Member]
Statutory Accounting Practices [Line Items]
Minimum Percentage Of Profits After Tax To Be Transferred To Statutory Reserve	10.00%
Statutory Reserve Maintenance Required, Percentage On Registered Capital	50.00%
Statutory reserve (Note16)	$ 931,510	$ 931,510

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SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net revenues	$ 1,919,275	$ 16,179,344	$ 3,498,070	$ 18,760,460
Cost of revenues	(1,004,153)	(14,864,129)	(2,087,600)	(15,175,870)
Gross profit	915,122	1,315,215	1,410,470	3,584,590
Operating expenses	(298,610)	(186,803)	(1,092,127)	(612,838)
General and administrative expenses	(632,754)	(798,935)	(1,117,904)	(1,388,034)
Operating loss	(16,242)	329,477	(799,561)	1,583,718
Other income (expenses)
Interest income	19,546	7,774	30,394	17,143
Interest expense	(2,302,296)	(112,350)	(2,302,296)	(231,332)
Other income, Net	(135,666)	(13,871)	(286,398)	(1,124,254)
Equity in net income (loss) of unconsolidated affiliates			31,336,157	32,924,518
Total other (expenses) income	7,405,142	9,916,479	29,350,654	33,664,956
Income tax	50,613	(9)	18,937	62,104
Net Income( loss)	7,439,513	10,245,947	28,570,030	35,310,778
Total assets	197,984,121		197,984,121		$ 164,903,033
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,919,275	16,179,344	3,498,070	18,760,460
Cost of revenues	(1,004,153)	(14,864,129)	(2,087,600)	(15,175,870)
Gross profit	915,122	1,315,215	1,410,470	3,584,590
Operating expenses	(298,610)	(186,803)	(1,092,127)	(612,838)
General and administrative expenses	(632,754)	(798,935)	(1,117,904)	(1,388,034)
Operating loss	(16,242)	329,477	(799,561)	1,583,718
Other income (expenses)
Interest income	19,546	7,774	30,394	17,143
Interest expense	2,302,296	(112,350)	(2,302,296)	(231,332)
Other income, Net	135,666	13,871	286,398	1,124,254
Equity in net income (loss) of unconsolidated affiliates	9,552,226	10,007,184	29,350,654	32,754,891
Total other (expenses) income	7,405,142	9,916,479	28,551,093	33,664,956
Income (loss) before income taxes	7,388,900	10,245,956	28,551,093	35,248,674
Income tax	50,613	(9)	18,937	62,104
Net Income( loss)	7,439,513	10,245,947	28,570,030	35,310,778
Real estate property under development	66,776,646	66,368,683	66,776,646	66,368,683
Total assets	197,984,121	146,532,174	197,984,121	146,532,174
Property Brokerage Services [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	461,890	435,039	890,370	3,016,155
Cost of revenues	(264,696)	(205,036)	(490,703)	(517,224)
Gross profit	197,204	230,003	399,667	2,498,931
Operating expenses	(176,811)	(138,539)	(690,421)	(269,359)
General and administrative expenses	(103,376)	(374,806)	(426,358)	(556,134)
Operating loss	(82,983)	(283,342)	(717,112)	1,673,438
Other income (expenses)
Interest income	15,505	5,241	20,556	9,901
Interest expense	0	(112,350)	0	(231,332)
Other income, Net	(174,437)	(7,398)	(174,476)	1,104,402
Equity in net income (loss) of unconsolidated affiliates	0	0	0	0
Total other (expenses) income	(158,932)	(114,507)	(153,920)	882,971
Income (loss) before income taxes	(241,915)	(397,849)	(871,031)	2,556,409
Income tax	(43,032)	0	(52,383)	0
Net Income( loss)	(198,883)	(397,849)	923,414	2,556,409
Real estate property under development	0	0	0	0
Total assets	11,195,172	10,120,878	11,195,172	10,120,878
Real Estate Development [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	1,457,375	15,744,305	2,607,700	15,744,305
Cost of revenues	(739,457)	(14,588,519)	(1,596,897)	(14,588,519)
Gross profit	717,918	1,155,786	1,010,803	1,155,786
Operating expenses	(121,716)	(46,598)	(401,524)	(339,429)
General and administrative expenses	(222,971)	(389,677)	(379,389)	(822,726)
Operating loss	373,231	719,511	229,890	(6,369)
Other income (expenses)
Interest income	2,253	2,459	4,743	7,095
Interest expense	(142,710)	0	(142,710)	0
Other income, Net	358	21,269	(144,972)	19,852
Equity in net income (loss) of unconsolidated affiliates	0	0	0	0
Total other (expenses) income	(140,099)	23,728	(282,939)	26,947
Income (loss) before income taxes	(233,132)	743,239	(53,049)	20,578
Income tax	7,581	(9)	71,320	62,104
Net Income( loss)	(240,713)	743,230	18,271	82,682
Real estate property under development	66,776,646	66,368,683	66,776,646	66,368,683
Total assets	81,710,232	82,293,920	81,710,232	82,293,920
Investment Transaction [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Cost of revenues	0	0	0	0
Gross profit	0	0	0	0
Operating expenses	0	0	0	0
General and administrative expenses	0	0	0	0
Operating loss			0	0
Other income (expenses)
Interest income	0	0	0	0
Interest expense	(2,159,586)	0	(2,159,586)	0
Other income, Net	310,008	0	606,109	0
Equity in net income (loss) of unconsolidated affiliates	9,552,226	10,007,184	31,336,158	32,754,891
Total other (expenses) income	7,702,648	10,007,184	29,782,680	32,754,891
Income (loss) before income taxes	7,702,648	10,007,184	29,782,680	32,754,891
Income tax	0	0
Net Income( loss)	7,702,648	10,007,184	29,782,680	32,754,891
Real estate property under development	0	0	0	0
Total assets	105,024,192	54,006,738	105,024,192	54,006,738
Other Segments [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Cost of revenues	0	(70,574)	0	(70,127)
Gross profit	0	(70,574)	0	(70,127)
Operating expenses	(83)	(1,666)	(182)	(4,050)
General and administrative expenses	(306,407)	(34,452)	(312,157)	(9,174)
Operating loss	(306,490)	(106,692)	(312,339)	(83,351)
Other income (expenses)
Interest income	1,788	74	5,095	147
Interest expense	0	0	0	0
Other income, Net	263	0	(263)	0
Equity in net income (loss) of unconsolidated affiliates	0	0	0	0
Total other (expenses) income	1,525	74	4,832	147
Income (loss) before income taxes	(304,965)	(106,618)	(307,507)	(83,204)
Income tax	0	0	0	0
Net Income( loss)	(304,965)	(106,618)	(307,507)	(83,204)
Real estate property under development	0	0	0	0
Total assets	$ 54,525	$ 110,638	$ 54,525	$ 110,638