Sunrise Real Estate Group Reports 415% Revenue Growth, Net Loss Reduces by 53%

Sunrise Real Estate Group, Inc. reported significant financial performance improvements in its latest quarterly filing for the period ending March 31, 2025. The company achieved net revenues of $9.79 million, a substantial increase of 415% compared to $1.90 million in the same quarter of the previous year. This growth was primarily driven by a notable rise in house sales, which accounted for 97% of total revenues, reflecting the successful recognition of sales from the HATX project. Despite the increase in revenues, the company reported a net loss of $2.25 million, a 53% reduction from the $4.80 million loss recorded in the same period last year.

The cost of revenues also saw a significant rise, totaling $9.89 million, up 419% from $1.91 million in the prior year. The increase in costs was largely attributed to the higher costs associated with the HATX project. Operating expenses increased by 9% to $346,541, driven by higher consulting service expenses. General and administrative expenses decreased by 12% to $607,870, indicating some operational efficiencies despite the overall increase in costs.

In terms of operational developments, the company reported a cash position of $16.56 million as of March 31, 2025, down from $19.95 million at the end of 2024. The decrease in cash was primarily due to cash used in operating activities, which amounted to $7.38 million, largely driven by advances and accounts payable related to property development projects. The company’s investment activities generated $4.07 million, mainly from the withdrawal of transactional financial assets.

Sunrise Real Estate Group continues to focus on its real estate development and sales operations in China, with ongoing projects such as the Linyi project and the HATX project. The company has reported strong sales performance in these developments, with significant units sold in both phases of the HATX project. As of May 15, 2025, the company had sold 655 units out of 679 in the first phase and 596 out of 873 in the second phase of the Huai’an project.

Looking ahead, the company remains optimistic about its growth trajectory, planning to leverage its established reputation in real estate agency sales and marketing to expand its property investment activities. Management indicated that they are prepared to raise additional funds through equity offerings or credit facilities to support future growth initiatives. However, they also acknowledged the potential risks associated with market conditions and the integration of new acquisitions, which could impact future performance.