Business Description

NOTE 1 — ORGANIZATION AND DESCRIPTION OF BUSINESS Sunrise Real Estate Group, Inc. (“ SRRE ”) and its subsidiaries (collectively referred to as “the Company”, “our” or “us”) was incorporated in Texas on October 10, 1996, under the name of Parallax Entertainment, Inc. (“ Parallax ”). On December 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc. filed Articles of Amendment with the Texas Secretary of State, changing its name to Sunrise Real Estate Group, Inc., effective May 23, 2006. As of December 31, 2025, the Company has the following major subsidiaries and equity investments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ownership ​ Relationship ​ ​ ​ ​ Date of ​ Place of ​ held by the ​ with the ​ ​ Company Name ​ Incorporation ​ Incorporation ​ Company ​ Company ​ Principal Activity Sunrise Real Estate Development Group, Inc. (CY-SRRE) ​ April 30, 2004 Cayman Islands 100 % Subsidiary Investment holding Lin Ray Yang Enterprise Limited (“LRY”) ​ November 13, 2003 British Virgin Islands 100 % Subsidiary Investment holding Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) ​ August 20, 2001 PRC 100 % Subsidiary Property brokerage services Shanghai Shang Yang Investment Management and consultation Company Limited (“SHSY”) ​ February 5, 2004 PRC 100 % Subsidiary Property brokerage services Suzhou Xi Ji Yang Real Estate Consultation Company Limited (“SZXJY”) ​ June 25, 2004 PRC 75 % Subsidiary Property brokerage services Linyi Shangyang Real Estate Development Company Limited (“LYSY”) ​ October 13, 2011 PRC 34 % 2 Subsidiary Real estate development Sanya Shang Yang Real Estate Consultation Company Limited (“SYSY”) ​ September 18, 2008 PRC 100 % Subsidiary Property brokerage services Shanghai Rui Jian Design Company Limited (“SHRJ”) ​ August 15, 2011 PRC 100 % Subsidiary Property brokerage services Linyi Rui Lin Construction and Design Company Limited (“LYRL”) ​ March 6, 2012 PRC 100 % Subsidiary Investment holding Wuhan Yuan Yu Long Real Estate Development Company Limited (“WHYYL”) ​ December 28, 2009 PRC 49 % Equity investment Real estate development Shanghai Da Er Wei Trading Company Limited (“SHDEW”) ​ June 6, 2013 PRC 19.91 % 3 Equity investment Import and export trading Shanghai Hui Tian (“SHHT”) ​ July 25, 2014 PRC 100 % Subsidiary Investment holding Shanghai Shangyang Tianxi (“SHTX”) ​ July 25, 2014 ​ PRC ​ 19.91 % Subsidiary ​ Investment holding Huaian Zhanbao Industrial Co., Ltd. (“HAZB”) ​ December 6, 2018 PRC 78.46 % 4 Subsidiary Investment holding Huaian Tianxi Real Estate Development Co., Ltd (“HATX”) ​ October, 2018 PRC 78.46 % 4 Subsidiary Investment holding Shanghai Taobuting Media Co., Ltd. (“TBT”) ​ July 1, 2020 ​ PRC ​ 7.5 % Subsidiary ​ Streaming platform Shangyang International PTE. LTD. ​ August 19, 2022 ​ SINGAPORE ​ 100 % Subsidiary ​ Investment holding Shanghai Da Er Wei Industry Co., Ltd. ​ Oct. 20, 2020 ​ PRC ​ 19.58 % Subsidiary ​ Investment holding Shanghai Zhuangyanting Trading Co., Ltd. ​ Sep. 21, 2023 ​ PRC ​ 19.9 % Subsidiary ​ Investment holding Shanghai Shifengmei Brand Mgmt. Co., Ltd. ​ Nov. 27, 2023 ​ PRC ​ 19.9 % Subsidiary ​ Investment holding Shanghai Aoyue Bio - Tech Co., Ltd. ​ Nov. 27, 2023 ​ PRC ​ 19.9 % Subsidiary ​ Investment holding Shanghai Maitinghao Trading Co., Ltd. ​ Sep. 21, 2023 ​ PRC ​ 19.9 % Subsidiary ​ Investment holding Shanghai Xinshangyang Media Comu. Co., Ltd. ​ Dec. 25, 2024 ​ PRC ​ 100 % Subsidiary ​ Streaming platform 1. The Company and a shareholder of LYSY, who holds 46% equity interest in LYSY, entered into a voting agreement that the Company is entitled to exercise the voting rights in respect of her 46% equity interest in LYSY. The Company effectively holds 80% voting rights in LYSY and therefore considers LYSY as a subsidiary of the Company. On May 27, 2020, LYRL received 10% of the issued and outstanding shares of LYSY from Nanjing Longchang Real Estate Development Group. LYRL owned 34% of LYSY following the purchase. 2. In December 2019, SHDEW had an employee stock bonus where its employees received their issued shares. This resulted in the dilution of our ownership of SHDEW from 20.38% to 19.91% .…