SHARING ECONOMY INTERNATIONAL INC. Annual Report - How They Did This Year

I’m writing this guide to help you understand Sharing Economy International Inc. (SEII). My goal is to turn complex filing data into clear information to help you decide if this company fits your investment goals.

1. What does this company do?

SEII is a Nevada-based holding company that operates through subsidiaries in Hong Kong and China. Their primary focus is ECrent.com, an online marketplace designed for renting out personal items. They aim to compete in the broader sharing economy by covering a wide range of rental categories. As a holding company, SEII manages the strategy and capital for these overseas subsidiaries, which handle the daily operations.

2. Financial performance

The company’s finances remain in an early, development-heavy stage. As of the end of 2025, they reported:

• Cash on hand: Approximately $263,000, an increase from roughly $1,500 in 2024.
• Total Assets: These remained steady at about $18.3 million.
• Total Liabilities: They owe about $4.3 million, compared to $4.0 million the previous year.
• Revenue Status: The company is currently focused on growth and platform development rather than immediate profitability. They rely on external funding to support operations while the platform scales.

3. Major wins and challenges

On January 1, 2023, the company sold its VUL group to simplify its business structure and focus entirely on the ECrent platform. A significant factor for investors to note is that the company was delisted from the Nasdaq in 2018 and now trades on the "OTC" (Over-the-Counter) market. This means the stock typically experiences wider price gaps between buyers and sellers and is subject to less stringent oversight than stocks on major national exchanges.

4. Financial health

SEII operates as a parent company that relies on its subsidiaries to manage cash flow. The company does not expect to pay dividends, as they plan to reinvest all available earnings into business growth. Additionally, the movement of capital from China and Hong Kong to the U.S. is subject to local currency and tax regulations, which can impact the parent company’s financial flexibility.

5. Key risks

Operating through subsidiaries in Hong Kong and China involves specific considerations:

• The "Holding Company" Structure: Shareholders own interest in a Nevada parent company, which maintains control of Asian operations through contracts rather than direct ownership. Changes in Chinese regulations regarding foreign ownership could impact the company's structure.
• Regulatory Environment: The business is subject to evolving rules regarding data privacy and foreign investment. These regulations can change, potentially requiring shifts in the company's business model.
• Market Liquidity: Because the stock trades on the OTC market, it may be harder to buy or sell shares compared to companies on major exchanges. Maintaining compliance with U.S. reporting rules is essential to keeping the stock available for trading.

6. Future outlook

The company’s strategy is built on the belief that consumer behavior will continue to shift from owning to renting. Success depends on their ability to scale the ECrent platform, navigate international legal requirements, and manage their limited cash reserves effectively.

Final Thought for Investors: SEII is currently a speculative, early-stage company. When considering an investment, weigh the potential of their rental platform against the risks of their OTC listing status and the complexities of operating across international borders. If you are looking for stable, dividend-paying stocks, this company’s current strategy of reinvesting all capital for growth may not align with your portfolio goals.