SHANGHAI, China, Aug. 27 /Xinhua-PRNewswire/ -- After extensive review of
the interpretation on SFAS 66 and discussion between Company management and
independent auditors, on August 13th, 2008, the Company has subsequently
determined that the correct application of accounting principles had not been
applied for the recognition of underwriting sales revenue and made the
conclusion to restate the financial statements for the periods in question.
In this correction, the financial statements for the years ended December
31, 2007 and 2006 and the quarter ended March 31, 2008 were restated to
increase the Company's deferred tax assets and deposits received from
underwriting sales by deferring revenue recognition to the consummation of the
sale, generally when the remaining maximum exposure to loss is reduced below
the amount of gain deferred. As a result, the Company's net asset values as
of December 31, 2007 and March 31, 2008 were reduced by $6,300,897 and
$6,563,699, respectively. The correction of this error reduced the Company's
losses for the year ended December, 2007 by $157,811 and gave no effect on the
income statement of the Company for each of the two quarters ended June 30,
2008.
An additional restatement relates to correct the overstatement of the
minority shareholders' share of the Company's result by US$106,759. As a
result of the correction of this item, the Company's financial statements for
the year ended 2007 were restated and the Company's loss for the year ended
December 31, 2007 and the accumulated losses as of December 31, 2007 were
reduced by US$106,759.
The Company will be filing amendments to its Form 10-KSB for the year
ended December 31, 2007 and its Form 10-Q for the quarter ended March 31, 2008,
in order to complete this restatement process.
Management informed of and had discussed these matters with the Board of
Directors. The Company's management has discussed this matter disclosed in the
filing pursuant to this Item 4.02(a) with our independent auditors.
Forward-Looking Statements
The common stock of Sunrise Real Estate Group, Inc. is quoted and traded
on the OTC Bulletin Board under the trading symbol "SRRE". This press release
contains forward-looking information within the meaning of section 29A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forwarding-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performances and underlying assumption and
other statements, which are other than statements of historical facts.
Certain statements contained herein are forward-looking statements and,
accordingly, involve risks and uncertainties, which could cause actual results,
or outcomes to differ materially from those expressed in the forward-looking
statements. The Company's expectations, beliefs and projections are expressed
in good faith and are believed by the Company to have a reasonable basis,
including without limitations, management's examination of historical
operating trends, data contained in the Company's records and other data
available from third parties, but there can be no assurance that management's
expectations, beliefs or projections will result, or be achieved, or
accomplished.
For more information, please contact:
Lyman Huang,
Sunrise Real Estate Group, Inc.
Tel: +86-21-6422-0505 x105
Email: ir@sunrise-sh.net
Web: http://www.sunrise.sh
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