Sunrise Real Estate Group Reports 37.2% Revenue Decline and $18.3 Million Net Loss for Fiscal Year 2024

Sunrise Real Estate Group, Inc. (SRRE) reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues of $15.6 million, a decrease of 37.2% from $24.8 million in 2023. The company's revenue was primarily driven by house sales, which accounted for 91% of total revenue, but saw a substantial drop from $23.4 million in the previous year. The decrease in revenue was attributed to reduced sales from the Huai’an Tianxi project, which impacted overall profitability. The company recorded an operating loss of $2.1 million, compared to a loss of $613,942 in 2023, largely due to lower gross profits from its real estate projects.

In terms of operational changes, SRRE's cost of revenues also decreased by 32.2% to $13.5 million, reflecting the reduced recognition of costs associated with house sales. The company’s operating expenses fell by 21.9% to $1.4 million, driven by lower sales promotion activities and a decrease in property management costs. General and administrative expenses also saw a reduction of 25% to $2.8 million, primarily due to the settlement of land value-added tax from previous projects. Despite these reductions, the company faced an impairment loss of $11.3 million on real estate property under development, which contributed to a net loss of $18.3 million for the year.

SRRE's strategic focus remains on real estate development and property management in China, with plans to enhance its market position by forming alliances with mid-sized developers. The company has also been actively managing its cash flow, ending the year with $21.1 million in cash and cash equivalents. However, the company’s ability to pay dividends is subject to regulatory restrictions in China, and it has not made any dividend distributions during the fiscal year. The company successfully transferred $10.3 million to its parent entity for shareholder dividends, following a dividend payment from its subsidiary Shanghai Shang Yang Investment Management and Consulting Company Limited.

As of December 31, 2024, SRRE's total assets were valued at $174.7 million, down from $207.9 million in 2023. The company’s liabilities also decreased to $77.7 million, primarily due to a reduction in accounts payable and customer deposits. The company employed 69 individuals across various departments, maintaining a stable workforce despite the challenging market conditions. Looking ahead, SRRE aims to navigate the evolving regulatory landscape in China while pursuing opportunities for growth in the real estate sector, although uncertainties regarding government policies and market conditions remain a concern for its future operations.