Sunrise Real Estate Group, Inc. Financial Results - FY 2023

Company Overview

Sunrise Real Estate Group, Inc. (Ticker: SRRE) is listed on the PNK Exchange and operates within the real estate industry. This report contains the financial results for the fiscal year 2023, highlighting key financial metrics, profitability ratios, and comparative analysis.

Financial Performance

For the fiscal year ending December 31, 2023, Sunrise Real Estate Group, Inc. reported a total revenue of $24.83M. Despite generating a gross profit of $4.94M, the company incurred significant costs and expenses, resulting in a net loss of $10.13M or an EPS of -$0.15.

Operationally, the company's expenses included $19.89M in cost of revenue and $3.76M in general and administrative expenses. Interest expenses were recorded at -$3.23M, and the company's EBITDA stood at -$613,942.

Notably, the company experienced a substantial total other income/expenses net loss of $24.55M, impacting the income before tax figure, which stood at -$25.17M. After including a tax benefit of -$15.04M, the net income remained negative at -$10.13M.

Cash Flow Analysis

The company’s net cash provided by operating activities was not disclosed; however, they incurred a free cash flow of -$4.06M. The dividends paid amounted to -$10.18M, leading to a net cash used in financing activities totaling -$24.30M. The effect of forex changes on cash reduced cash reserves by -$9.73M. Overall, Sunrise Real Estate Group saw a net change in cash of -$53.89M, closing the year with $23.18M in cash at the end of the period.

Balance Sheet Overview

Sunrise Real Estate Group, Inc. reported total assets of $207.88M. Current assets included cash and cash equivalents of $20.45M, net receivables of $552,964, and other current assets totaling $143.50M. The company’s total current liabilities amounted to $91.68M, including account payables of $24.89M and short-term debt of $1.41M.

Total stockholders’ equity was recorded at $119.27M, comprised predominantly of retained earnings amounting to $99.17M. The company maintained a minimal debt load, with total debt at $1.41M and net debt at -$19.04M.

Profitability Ratios

Sunrise Real Estate's gross profit margin was reported at 19.91%. However, both EBITDA ratio and operating income ratio were negative at -2.47%. Net income ratio also stood at -40.79%.

The Return on Assets (ROA) and Return on Equity (ROE) were recorded at 0.16% and 0.32% respectively, indicating limited profitability. The debt-to-equity ratio stood at 1.11%, reflecting a manageable level of debt in comparison to equity.

Market Performance and Valuation Ratios

As of the report date, Sunrise Real Estate Group, Inc. had a market capitalization of $13.05M. The trailing twelve-month price-to-earnings (P/E) ratio was a high 36.63x, suggesting that the stock may be overvalued relative to its earnings.

The price-to-sales (P/S) ratio was -0.30x and the price-to-book (P/B) ratio was 0.12x, indicating low market valuation compared to sales and equity value respectively. The EV/EBITDA ratio stood at -10.10x.

Comparative Peer Analysis

When compared to its peers, Sunrise Real Estate Group's gross profit margin significantly outperformed at 252.01%. However, in terms of operating and net profit margins, it stood at 7.25% and -0.83% respectively. Return on Equity (ROE) was 0.32%, slightly above the peer average. The company's current ratio was notably strong at 190.30%, indicating substantial liquidity.

Conclusion

Sunrise Real Estate Group, Inc. faced a challenging fiscal year 2023, indicated by significant losses and reduced cash reserves. However, the company maintains a strong liquidity position and a manageable debt load. Going forward, improving profitability and controlling costs will be crucial for enhancing financial performance and market valuation.

Additional Resources

Full Financial Report