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Inside the UserReports.xml file which stores your User Defined Reports, each report is enclosed by paired <display> tags.
A child report is simply the occurrence of another <display> ... </display> before the parent report is closed.
No attributes on the xml indicate a report order, nor are there ways to re-order Child Reports via the Report Editor, hence the order of the Child Reports is determined by their sequence within the parent.
Cutting and pasting the reports to a third location such as a clipboard or a separate editor might be a good alternative to directly editing the XML, however if there are many attributes to adjust beyond the SQL in the reports, then your best approach may be to edit the xml, and rearranging the reports within.
In either case, make a backup first in case your edits lead to a mistake where nothing runs.
Thank you @998364. your answer provides a workaround but it might be useful to have this re-arrange order functionality in the GUI to make these operations simpler. I probably should log it as a enhancement but I really think it is an essential but missing feature.