SUNRISE REAL ESTATE GROUP INC

Sunrise Real Estate Group, Inc. (SRRE) is a real estate company primarily engaged in real estate development, property leasing, and property management services within the People's Republic of China (PRC). The company operates through various subsidiaries. Sunrise Real Estate Development Group, Inc. (CY-SRRE), a wholly-owned subsidiary of SRRE, was established in the Cayman Islands on April 30, 2004. Shanghai Xin Ji Yang Real Estate Consultation Company Limited (SHXJY) was established in the PRC on August 20, 2001. On June 8, 2004, ownership of SHXJY transferred to CY-SRRE. On June 25, 2004, SHXJY and two individuals established Suzhou Xin Ji Yang Real Estate Consultation Company Limited (SZXJY) in the PRC, with SHXJY initially holding a 90% equity interest. On August 9, 2005, SHXJY sold 10% equity interest in SZXJY and transferred 5% equity interest to CY-SRRE, resulting in CY-SRRE effectively holding 80% equity interest in SZXJY. On November 24, 2006, CY-SRRE, SHXJY, a director of SZXJY, and a third party established Suzhou Shang Yang Real Estate Consultation Company Limited (SZSY) in the PRC. In SZSY, CY-SRRE holds 12.5% equity interest, SHXJY holds 26% equity interest, and the director of SZXJY holds 12.5% equity interest. Through a voting agreement, SRRE effectively holds 51% of the voting power of SZSY.