Sunrise Real Estate Group Reports 14.9% Revenue Decline and Increased Operating Loss for Fiscal Year 2025

Sunrise Real Estate Group, Inc. (SRRE) reported a net revenue of $13.3 million for the fiscal year ending December 31, 2025, marking a 14.9% decline from $15.6 million in 2024. The decrease was primarily attributed to reduced house sales from the HATX project, which accounted for 91% of total revenue. The company's property management segment also saw a decrease in revenue, contributing 9% to the total, down from the previous year. The cost of revenues decreased by 6.8% to $12.6 million, leading to a gross profit of $692,093, a significant drop from $2.1 million in 2024.

The company experienced an operating loss of $3.7 million in 2025, compared to a loss of $2.1 million in the prior year. This increase in operating loss was driven by a decline in gross profit due to lower house sales revenue. General and administrative expenses rose by 12% to $3.2 million, largely due to an impairment loss on receivables. The total net loss for the year was $21.4 million, which included significant impairment losses on real estate properties under development totaling $21.8 million.

In terms of operational developments, SRRE has focused on expanding its real estate development projects, particularly in Linyi and Huai’an, where it has made significant investments. The company reported that as of March 25, 2026, it had sold 655 units out of 679 in the first phase of the Huai’an project and 600 units out of 873 in the second phase. The company has also established subsidiaries and branches in key cities such as Shanghai, Suzhou, and Wuhan to enhance its market presence.

As of December 31, 2025, SRRE's total assets were valued at $141.3 million, down from $174.7 million in 2024. The company reported a cash position of $16.9 million, with net cash used in operating activities amounting to $15.9 million. The company’s liabilities totaled $64 million, with significant amounts due to directors and affiliates. Looking ahead, SRRE aims to improve its financial performance by reducing operating costs and increasing revenue through new business initiatives, although it acknowledges the ongoing challenges posed by the downturn in the Chinese real estate market.