OTC: SRRE
SUNRISE REAL ESTATE GROUP INCCIK 0001083490 · SIC 6513
The principal activities of Sunrise Real Estate Group, Inc. (“SRRE”) and its subsidiaries (collectively referred to as the “Company”) are real estate development including property leasing services; and property management services in the People’s Republic of China (“PRC”). Our current ownership… About this business →
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About SUNRISE REAL ESTATE GROUP INC
Source: Item 1 (Business) from the 10-K filed April 17, 2026. Description as filed by the company with the SEC.
ITEM 1. BUSINESS
Corporate History
The principal activities of Sunrise Real Estate Group, Inc. (“SRRE”) and its subsidiaries (collectively referred to as the “Company”) are real estate development including property leasing services; and property management services in the People’s Republic of China (“PRC”). Our current ownership interests in our various subsidiaries and other entities are set forth in the below organizational chart below.
Sunrise Real Estate Development Group, Inc. (“CY-SRRE”), a wholly-owned subsidiary of SRRE, was established in the Cayman Islands on April 30, 2004 as a limited liability company. Shanghai Xin Ji Yang Real Estate Consultation Company Limited (“SHXJY”) was established in the PRC on August 20, 2001 as a limited liability company. SHXJY was originally owned by a Taiwanese company, the principal and controlling shareholder of which was Lin Chi-Jung. On June 8, 2004, all the fully paid-up capital of SHXJY was transferred to CY-SRRE. On June 25, 2004, SHXJY and two individuals established a subsidiary, namely, Suzhou Xin Ji Yang Real Estate Consultation Company Limited (“SZXJY”) in the PRC and SHXJY held 90% equity interest in SZXJY at the time.
On August 9, 2005, SHXJY sold 10% equity interest in SZXJY to a company owned by a director of SZXJY, and transferred 5% equity interest in SZXJY to CY-SRRE. Following the sale and transfer, CY-SRRE effectively held 80% equity interest in SZXJY. On November 24, 2006, CY-SRRE, SHXJY, a director of SZXJY and a third party established a subsidiary, namely, Suzhou Shang Yang Real Estate Consultation Company Limited (“SZSY”) in the PRC, with CY-SRRE holding 12.5% equity interest, SHXJY holding 26% equity interest and the director of SZXJY holding 12.5% equity interest in SZSY. At the date of incorporation, SRRE and the director of SZXJY entered into a voting agreement that provided that SRRE is entitled to exercise the voting right in respect of his 12.5% equity interest in SZSY. As a result of the voting agreement, SRRE effectively holds 51% of the voting power of SZSY. On September 24, 2007, CY-SRRE sold 5% equity interest in SZXJY to a company owned by a director of SZXJY. Following the sale, CY-SRRE held 75% equity interest in SZXJY.
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In October 2011, SHXJY purchased a 24% interest in Linyi Shang Yang Real Estate Consultation Company Limited (“LYSY”) and acquired approximately 103,385 square meters of land for the purpose of developing the land into villa-style residential housing. On March 6, 2012, SHXJY established a wholly-owned subsidiary, namely Linyi Rui Lin Construction and Design Company Limited (“LYRL”). SHXJY’s 24% equity interest in LYSY was then transferred to LYRL. 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. The Company and a shareholder of LYSY, Zhang Shu Qin, 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 to be a subsidiary of the Company.
LIN RAY YANG Enterprise Ltd. (“LRY”), a wholly-owned subsidiary of SRRE, was established in the British Virgin Islands on November 13, 2003 as a limited liability company. On February 5, 2004, LRY established a wholly owned subsidiary, Shanghai Shang Yang Investment Management and Consulting Company Limited (“SHSY”) in the PRC as a limited liability company. On January 10, 2005, LRY and a PRC third party established a subsidiary, Suzhou Gao Feng Hui Property Management Company Limited (“SZGFH”), in the PRC, with LRY holding 80% of the equity interest in SZGFH. On May 8, 2006, LRY acquired 20% of the equity interest in SZGFH from the third party. Following the acquisition, LRY effectively held 100% of the equity interest in SZGFH. The Company sold SZGFH in 2017.
In 2011, we acquired 49% ownership interest in Wuhan Yuan Yu Long Property Development Company Limited (“WHYYL”). The purpose of this project company is for a development project in Wuhan.
SRRE was initially 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 August 31, 2004, SRRE, CY-SRRE and Lin Chi-Jung, an individual and agent for the beneficial shareholder of CY-SRRE, i.e., Ace Develop, entered into an exchange agreement under which SRRE issued 5,000,000 shares of common stock to the beneficial shareholder or its designees, in exchange for all outstanding capital stock of CY-SRRE. The transaction was closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of CY-SRRE and the principal and controlling shareholder of Ace Develop.
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Also on August 31, 2004, SRRE, LRY and Lin Chi-Jung, an individual and agent for beneficial shareholders of LRY, i.e., Ace Develop, Planet Tech and Systems Tech, entered into an exchange agreement under which SRRE issued 10 million shares of common stock to the beneficial shareholders, or their designees, in exchange for all outstanding capital stock of LRY. The transaction closed on October 5, 2004. Lin Chi-Jung was Chairman of the Board of Directors of SRRE, the President of LRY and the principal and controlling shareholder of Ace Develop. Regarding the 10 million shares of common stock of SRRE issued in this transaction, SRRE issued 8.5 million shares to Ace Develop, 750,000 shares to Planet Tech and 750,000 shares to Systems Tech.
As a result of the acquisition, the former owners of CY-SRRE and LRY hold a majority interest in the combined entity. Generally accepted accounting principles require in certain circumstances that a company whose shareholders retain the majority voting interest in the combined business be treated as the acquirer for financial reporting purposes. Accordingly, the acquisition was accounted for as a “reverse acquisition” arrangement whereby CY-SRRE and LRY are deemed to have purchased SRRE. However, SRRE remained the legal entity and the Registrant for Securities and Exchange Commission reporting purposes.
On May 23, 2006, Sunrise Estate Development Group, Inc. changed its name to Sunrise Real Estate Group, Inc.
General Business Description
SRRE went through a series of transactions leading to the completion of a reverse merger on October 5, 2004. Prior to the closing of the exchange agreements described in “Corporate History” above, SRRE was an inactive “shell” company. Following the closing, SRRE, through its two wholly owned subsidiaries, CY-SRRE and LRY, has engaged in the property development, property leasing services and property management services in the PRC.
The Company recognizes that in order to differentiate itself from the market, it should avoid direct competition with large-scale property developers who have their own marketing departments. Our objective is to develop a niche position with marketing alliances with mid-sized and smaller developers and become their outsourcing marketing and sales agents. This strategic plan is designed to expand our activities beyond our existing revenue base, enabling us to assume higher investment risk and giving us flexibility in collaborating with partnering developers. The plan was aimed at improving our capital structure, diversifying our revenue base, and creating higher values and equity returns.
SRRE operates through its wholly owned subsidiaries, CY-SRRE and LRY. CY-SRRE and LRY do not have operations themselves but conduct operations in Mainland China through their respective subsidiaries that are based in the PRC. CY-SRRE operates through its wholly owned subsidiary, SHXJY. LRY operates through its wholly owned subsidiaries, SHSY. SHXJY and SHSY are property agency business earning commission revenue from marketing and sales services to developers. Our company organization chart is as follows:
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Figure 1: Company Organization Chart
1.It was previously known as Shanghai Shang Yang Real Estate Consultation Co., Limited. The company changed its name to Shanghai Shang Yang Investment Management and Consulting Company Limited on May 28, 2013.
2.Zhong Ji Pu Fa Real Estate Co., Ltd. (“SHGXL”) is consolidated into the Company’s financials because the Company controls the development rights and is beneficiary of the revenue that SHGXL generates.
3.The Company and a shareholder of LYSY, which 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 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.
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Our major business is real estate investments, property leasing services, property management services, and real estate development in the PRC. Additionally, we have expanded our business to financial activities such as entity investment, fund management, and financial services. The chart and accompanying narrative below provides the specific entities that conduct operations, as well as the approximate percentage of revenues generated by such entities:
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
1
Lin Ray Yang Enterprise Ltd.
Holding company
0
%
British Virgin Islands
Sunrise Real Estate Group Inc.
USA
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
2
Sunrise Real Estate Development Group Inc.
Holding company
0
%
Cayman Islands
Sunrise Real Estate Group Inc.
USA
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
3
Shangyang International PTE. LTD.
Holding company
0
%
Singapore
Sunrise Real Estate Group Inc.
USA
100
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
4
Shanghai Xin Ji Yang Real Estate Consultation Co., Ltd
Consultation service
0
%
China
Sunrise Real Estate Development Group Inc.
Cayman Islands
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
5
Shanghai Shangyang Investment Management and Consulting Co., Ltd
Consultation service
1.72% (USD230,332)
China
Lin Ray Yang Enterprise Ltd.
British Virgin Islands
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
6
Zhong Ji Pu Fa Real Estate Co., Ltd
Property Development
3.32% (USD444,665)
China
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
7
Huai’an Zhan Bao Property Investment Co., Ltd
Holding Company
(0%)
China
Lin Ray Yang Enterprise Ltd.
British Virgin Islands
78.46
%
Zhan Li (HK) Ltd.
Hong Kong
10
%
Beijing Zuitaoran Fashion Ltd.
China
10
%
Shanghai Ba A Management Centre (Limited Partnership)
China
0.77
%
Fang Ken Management Centre (Limited Partnership)
China
0.77
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
8
Huai’an Tianxi Real Estate Development Co., Ltd
Property Development
80.1% (USD10,742,940)
China
Huai’an Zhan Bao Property Investment Co., Ltd
China
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
9
Shanghai Ruijian Design Co., Ltd
Consultation service
0
%
China
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
10
Linyi Ruilin Design Co., Ltd
Consultation service
0
%
China
Shanghai Ruijian Design Co., Ltd
China
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Place of
Organization
or Citizenship
11
Linyi Shangyang Real Estate Development Co., Ltd
Property development
13.12%(USD1,800,252)
China
Zhang Shu Qing
Taiwan, China
46
%
Linyi Ruilin Design Co., Ltd
China
34
%
Chen Jia Wei
Taiwan
7
%
Huang Xin Hua
Taiwan
8
%
Guo Wei Chun
Taiwan
5
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
12
Suzhou Xin Ji Yang Real Estate Consultation Co., Ltd
Consultation service,
1.45%(USD195,024)
China
Shanghai Xin Ji Yang Real Estate Consultation Co., Ltd
China
75
%
Jacky Pan Investment Inc
British Virgin Islands
25
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
13
Sanya Shang Yang Real Estate Consultation Co., Ltd
Consultation service,
0
%
China
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
100
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
14
Wuhan Yuan Yu Long Real Estate Dev. Co., Ltd.
Property development
0
%
China
Sanya Shang Yang Real Estate Consultation Co., Ltd
China
49
%
Wang Zhi Qing
China
51
%
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Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
15
Shanghai Huitian Wealth Mgmt. Co., Ltd
Consultation service,
0
%
China
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
59
%
Pan Jian
China
21
%
Wang Zhan
China
20
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
16
Shanghai Daerwei Trading Co., Ltd
Sales & wholesale.
0
%
China
Shanghai Guangpeng Investment & Managament Co., Ltd
China
35.18
%
Shanghai Shenji Biological Tech. Co., Ltd
China
31.86
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
12.61
%
Linyi Ruilin Design Co., Ltd
China
7.3
%
Beijing Zuitaoran Clothes Co., Ltd
China
4.7
%
Xiamen Ruixu Investment Partnership (Limited Partnership)
China
2.37
%
Tao Hong
China
1.93
%
Kuang Gui Yuan
China
1.24
%
Xiamen Xuyao Investment Partnership (Limited Partnership)
China
1.13
%
Wang Wenhua
China
0.74
%
Shanghai YuanChong Managment & Consulting Partnership (Limited Partnership)
China
0.56
%
Shanghai Xuhao Management & Consulting Partnership (Limited Partnership)
China
0.39
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
17
Shanghai Daerwei Industry Co., Ltd
Sales & wholesale.
0
%
China
Zhan Li (HK) Ltd.
Hong Kong, China
41.91
%
Shanghai Tingran Tech. Development Co., Ltd
China
36
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
19.58
%
Shanghai Tingyang Commercial Consulting Partnership (Limited Partnership)
China
0.95
%
Shanghai Huotiancao Info. Tech. Co., Ltd.
China
0.79
%
Shanghai Fangken Management Central Partnership (Limited Partnership)
China
0.77
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
18
Shanghai Shifenmei Brand Mgmt. Co., Ltd
Sales & wholesale.
0
%
China
Shanghai Shenji Bio-tech Co., Ltd.
China
78.09
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
12.61
%
Linyi Ruilin Design Co., Ltd
China
7.31
%
Shanghai Enrun Culture Media Co., Ltd
China
2.0
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
19
Shanghai Maitinghao Trading Co., Ltd
Sales & wholesale.
0
%
China
Shanghai Shenji Bio-tech Co., Ltd.
China
78.09
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
12.61
%
Linyi Ruilin Design Co., Ltd
China
7.31
%
Shanghai Enrun Culture Media Co., Ltd
China
2.0
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
20
Shanghai Zhuangyanting Trading Co., Ltd
Sales & wholesale.
0
%
China
Shanghai Shenji Bio-tech Co., Ltd.
China
78.09
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
12.61
%
Linyi Ruilin Design Co., Ltd
China
7.31
%
Shanghai Enrun Culture Media Co., Ltd
China
2.0
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
21
Shanghai Aoyue Bio-tech Co., Ltd
Sales & wholesale.
0
%
China
Shanghai Shenji Bio-tech Co., Ltd.
China
78.09
%
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
12.61
%
Linyi Ruilin Design Co., Ltd
China
7.31
%
Shanghai Enrun Culture Media Co., Ltd
China
2.0
%
Company
Operation
% of Rev Based
on 2025
Place of
Organization
Shareholder(s)
Place of
Organization
or Citizenship
%
Ownership
22
Shanghai Xinshangyang Media Communication Co., Ltd
Consultation service
0
%
China
Shanghai Shangyang Investment Management and Consulting Co., Ltd
China
100
%
For the fiscal year ended December 31, 2025, there are no percent of our net revenue, was generated from our brokerage operations. For these services, we earned a commission fee calculated as a percentage of the sales prices. We have focused our sales on the entire China market, with a particular focus on the second-tier cities. To expand our business agencies, we have established subsidiaries and branches in Shanghai, Suzhou and Wuhan.
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Since we started our agency sales operations in 2001, we have established a reputation as a sales and marketing agency for new projects. With our accumulated expertise and experience, we intend to take a more aggressive role by participating in property investments. We plan to select property developers with outstanding qualifications as our strategic partners, and continue to build strength in design, planning, positioning and marketing services. We subsequently phased out of the agency sales operations where we no longer have this business unit.
SHDEW was established in June 2013 as a skincare and cosmetic company. We own 19.91% of the common stock of SHDEW. As the Company does not have significant influence in SHDEW and the change of ownership to 19.91% from 20.38% due to certain SHDEW employee stock bonus having vested in December 2019, we changed our accounting method for the SHDEW investment from the equity method to the alternative measurement.
Business Activities
Our main operating subsidiary, SHSY, has real estate developments for residential properties as well as property management and leasing. We also have developed a network of landowners and developers, allowing us to explore opportunities in property investments.
Real Estate Development
In October 2011, we established LYSY and own 34% of the company. During the first quarter of 2012, we acquired approximately 103,385 square meters for the purpose of developing villa-style residential housing. The LYSY project has divided into three phases at this moment. Phase 1 has completed construction of 121 units in May 2015 and sold 119 units out of all 121 units as of March 25, 2026. Phase 2 was divided into north and south area and completed construction of 84 units at the end of 2020. All 84 units were sold during phase 2 as of March 25, 2026. Phase 3 began construction in the first quarter of 2021 and sold 34 units out of 51 units as of March 25, 2026. In September 2020, the Company expanded the Linyi project by purchasing an additional 54,312 square meters for 228 million RMB for future development.
In October 2018, HATX purchased the property in Huai’an, Qingjiang Pu district with an area of 78,030 square meters (“sqm”). In December 2018, we established HAZB with a 78.46% ownership for the purpose of real estate investment, and in March 2019, HAZB purchased 100% of HATX and its land usage rights to the Huai’an property. The Huai’an project, named Tianxi Times, started its first phase development in early 2019 with a gross floor area (“GFA”) of 82,218 sqm totaling 679 units, and started its second phase in 2020 with a GFA of 99,123 sqm totaling 873 units. As of March 25, 2026, the Company sold 655 units, out of 679 units of the first phase and sold 600 units out of 873 of the second phase.
Property Management and Leasing
The Company has two floors of office space encompassing 5,152 square meters in Huilong Tower in Suzhou. We manage these two floors to lease to prospective tenants.
We lease the unsold units of the GXL project. Total leasing area for the GXL building is 3,611 square meters.
We also lease the unsold commercial property of the HATX project. Total leasing area for the property is 8,268 square meters.
Mainland China’s Property Sector
The industry’s macro environment is improving, and the property sector is gradually becoming a more regulated market. Stable economic growth provides a solid and secure base for investment returns in the property sector.
GDP Growth of PRC for the period of 2021 through 2025:
GDP GROWTH
2021
8.4
%
2022
3.0
%
2023
5.2
%
2024
5.0
%
2025
5.0
%
Source: National Bureau of Statistics of China
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Government Regulation
In 2017, the Shanghai Municipal Construction and Construction Commission issued the Opinions on the Clarification of Commercial and Office Project (Document 2017 No. 400). This regulation requires all commercial and office buildings be used in accordance to what it was originally intended for when the project registered its plans.
The State Taxation Administration issued the Regulation of Land Value-added Tax Clearing and Administration in May 2009, effective on June 1, 2009. It requires developers to clear the land value-added tax, which have completed development projects and have finished sale, or have sold development projects under construction, to clear the land value-added tax.
In December 2009, the Ministry of Finance, Ministry of Land and Resources, Ministry of Supervision, the Central Government, and five other agencies required issued “Notice Regarding Improving Land Sales and Responsible Management” and required that the initial payment of land purchases be increased to 50% of the purchase price and that the entire purchase price be paid in full within the year. Prior to the announcement, the initial payment was around 20% to 30% of the purchase price.
On January 1, 2010, the Ministry of Finance and the State Administration of Taxation re-imposed the business tax on total proceeds from the resale of certain residential properties held for less than five years. The China Banking Regulatory Authority withdrew its earlier policy and re-imposed a minimum of 40% down payment requirement for mortgages for second housing units purchased by families. On March 8, 2010, the Ministry of Land and Resources issued a circular to further strengthen the supervision on land supply, requiring a real estate developer to pay at least 50% of the land premium within one month and 100% within one year after the land use right contract is executed. On April 17, 2010, the State Council issued the Circular on Firmly Restraining Soaring Housing Prices in Certain Cities. Pursuant to this circular,
●A down payment must be no less than 30% of the purchase price for first self-use housing unit purchases by a family with a gross construction area of more than 90 square meters;
●The minimum down payment for the second housing unit purchased by a family is increased from 40% to 50% and the loan interest rate must be no less than 110% of benchmark lending interest rate;
●Down payment for the third or additional housing unit purchased by any family and the loan interest rate must be further increased significantly based on the rate for the first and second housing units, as determined by commercial banks based on their assessment of the risks;
●Commercial banks may suspend extending loans to families for their purchases of the third or additional housing units in regions where commercial housing unit prices are too high or have risen too fast or supply of housing units is insufficient. The banks may also suspend extending loans to individuals for their purchase of housing units outside of their registered residence if they cannot furnish evidence of their tax or social insurance premium payment for at least one year locally in the region where the subject housing units are located; and
●Local governments are allowed to limit the total number of housing units one can purchase in certain period in light of the local situation.
On January 10, 2010, the government established eleven measures to strengthen management of the real estate market to address rising real estate prices. The measures called for an increasing supply of low-cost houses for low-income families and common residential houses, encouraging reasonably priced house buying while limiting purchases for speculation and investment, strengthening real estate project loan risk management and market supervision, speeding up construction of residential housing projects for low-income households, and specifying responsibilities of local governments.
In January 2011, the State Council released an additional eight new measures to put downward pressure on property prices by:
1)Requiring local governments to set housing price targets in proportion to local income levels for 2011;
2)Requiring a business tax for housing sales within 5 years of purchase must be levied on total sales value;
3)Strengthening the management of land supply for housing;
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4)Imposing purchase restrictions in all large and medium-sized cities. Families already owning a residential property are allowed to buy only one more, while those already owning two or more properties are prohibited from purchasing additional properties;
5)Accelerating the construction of social security residential housings;
6)Providing that the down payment ratio for second-home purchases must not be less than 60%, up from 50%, with an interest rate at least 1.1 times of the benchmark rate;
7)Improving guidance for the media’s housing market coverage;
8)Providing for implementation & accountability for local governments over the housing price control targets.
In May 2011, the National Development and Reform Commission (“NDRC”) began the “one house, one price” policy which requires developers to enhance its disclosure of the residential properties’ offering prices and available supply volume. This policy is designed to prevent developers from posting false supply volume and prices to fuel speculative price volatility.
In July 2011, China’s State Council declared that it will continue to implement tightening policies and expand the housing purchase restrictions to second and third-tier cities.
In late February and March 2013, the PRC government issued the “New Five Policies” for administration of the housing market and detailed implementation rules, which signified the PRC government’s strong determination to curb the increase in housing prices by requiring more stringent implementation of the housing price control measures. For example, in the cities where there are existing restrictions on housing sale, if the housing prices are rising fast due to insufficient local housing supply, the local governments are required to take more stringent measures to restrict housing units from being sold to those households that own more than one housing unit. In these cities, the minimum down payment for the second housing unit purchased by a household may be further increased from 60% and the loan interest rate may be raised to be more than 110% of benchmark lending interest rate, as the local housing price control measures require. The New Five Policies also reiterated and emphasized the implementation of the 20% income tax on capital gain generated from housing unit sale. Following the request of the central government, Beijing, Shanghai and other major cities in China have announced detailed regulations to implement the New Five Policies in late March 2013 to further cool down the local real estate markets.
In July 2012, the Ministry of Land and Resources and the Ministry of Housing and Urban-Rural Development jointly issued a notice to further tighten the land use administration and seek stricter enforcement of the existing real estate market regulations, which include, in particular, enhanced control over the floor area and plot ratio of land for housing purpose, closer scrutiny on the qualification of land bidders, and strengthened investigation and punishment on land bidding winners who leave land idle for more than one year.
Such measures and policies by the government have negatively affected the real estate market and caused a reduction in transactions in the real estate market. While these measures and policies remain in effect, they may continue to depress the real estate market, dissuade would-be buyers from making purchases, reduce transaction volume, cause a decline in average selling prices, and prevent developers from raising the capital they need and increase developers’ costs to start new projects.
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Employees
As of December 31, 2025, we had the following number and categories of employees:
Employees
SRRE
Executive Dept.
2
Accounting Dept.
1
Investor Relations Dept.
1
SHXJY
Administration Dept.
1
Accounting Dept.
1
Research & Development Dept.
1
SZXJY
Administration Dept.
4
Research & Development Dept.
1
Accounting Dept.
2
Marketing Dept.
5
SHSY
Administration Dept.
2
Accounting Dept.
2
Development Dept.
1
LYSY
Accounting Dept
2
Administration Dept.
4
Construction Dept.
6
Marketing Dept.
1
Executive Dept.
1
HATX
Administration Dept.
9
Accounting Dept.
2
Construction Dept.
1
Marketing Dept.
7
SHRJ
Administration Dept.
Design Dept.
1
Total
58
None of our employees are represented by a labor union or bound by a collective bargaining unit. We believe that our relationship with our employees is satisfactory.
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