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What changed in E-Home Household Service Holdings Ltd's 20-F — 2024 vs 2025

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Paragraph-level year-over-year comparison of E-Home Household Service Holdings Ltd's 2024 and 2025 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+542 added−564 removedSource: 20-F (2025-10-30) vs 20-F (2024-10-29)

Top changes in E-Home Household Service Holdings Ltd's 2025 20-F

542 paragraphs added · 564 removed · 376 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed0 unchanged
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3. KEY INFORMATION 1 A. [Reserved] 6 B. Capitalization and Indebtedness 6 C. Reasons for the Offer and Use of Proceeds 6 D. Risk Factors 6 ITEM 4. INFORMATION ON THE COMPANY 32 A. History and Development of the Company 32 B. Business Overview 33 C. Organizational Structure 47 D.
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3. KEY INFORMATION 1 A. [Reserved] 8 B. Capitalization and Indebtedness 8 C. Reasons for the Offer and Use of Proceeds 8 D. Risk Factors 8 ITEM 4. INFORMATION ON THE COMPANY 27 A. History and Development of the Company 27 B. Business Overview 29 C. Organizational Structure 42 D.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

138 edited+79 added−128 removed210 unchanged
Biggest changeCompliance with China’s new Data Security Law, Cybersecurity Review Measures, Provisions on Strengthening the Confidentiality and Archives Administration Personal Information Protection Law, as well as additional laws, regulations and guidelines that the Chinese government promulgates in the future may entail significant expenses and could materially affect our business. 6 ● We may be required to apply for a cybersecurity review under the proposed Cybersecurity Review Measures (revised draft for public comments). ● Fluctuations in exchange rates could result in foreign currency exchange losses and could materially reduce the value of your investment. ● You may face difficulties in protecting your interests and exercising your rights as a shareholder since we conduct substantially all of our operations in China, and most of our officers and directors reside outside the United States. ● The increased regulatory scrutiny focusing on U.S.-listed companies with significant operations in China in the U.S. could add uncertainties to our business operations, share price and reputation.
Biggest changeCompliance with China’s new Data Security Law, Cybersecurity Review Measures, Personal Information Protection Law, Provisions on Strengthening the Confidentiality and Archives Administration, as well as additional laws, regulations, and guidelines that the Chinese government promulgates in the future, may entail significant expenses and could materially affect our business. ● The increased regulatory scrutiny focusing on U.S.-listed companies with significant operations in China in the U.S. could add uncertainties to our business operations, share price, and reputation.
For a detailed description of the risks associated with doing business in China, please refer to risks disclosed under “Item 3. Key Information—D.
For a detailed description of the risks associated with doing business in China, please refer to the risks disclosed under “Item 3. Key Information-D.
Risk Factors—Risks Related to Doing Business in China.” The PRC government recently initiated a series of regulatory actions and made a number of public statements on the regulation of business operations in China, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using variable interest entity (“VIE”) structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti-monopoly enforcement.
Risk Factors-Risks Related to Doing Business in China.” The PRC government recently initiated a series of regulatory actions and made a number of public statements on the regulation of business operations in China, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a variable interest entity (“VIE”) structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti-monopoly enforcement.
Specifically, E-Home is permitted to provide funding to its PRC subsidiaries in the form of shareholder loans or capital contributions, subject to satisfaction of applicable government registration, approval and filing requirements in China. There are no quantity limits on E-Home’s ability to make capital contributions to its PRC subsidiaries under the PRC regulations.
Specifically, E-Home is permitted to provide funding to its PRC subsidiaries in the form of shareholder loans or capital contributions, subject to the satisfaction of applicable government registration, approval, and filing requirements in China. There are no quantity limits on E-Home’s ability to make capital contributions to its PRC subsidiaries under the PRC regulations.
These factors include our ability to continue to offer our services at competitive prices, offer services that respond to evolving customer tastes and demands, maintain the quality of our services, provide timely and reliable delivery of our services, flexible payment options and good customer service following the provision of our services.
These factors include our ability to continue to offer our services at competitive prices, offer services that respond to evolving customer tastes and demands, maintain the quality of our services, provide timely and reliable delivery of our services, offer flexible payment options, and provide good customer service following the provision of our services.
Our business depends on our ability to satisfy our customers, use and functionality of our online platform, and the services that are performed by our customer service representatives and service providers. Services may be performed by our own staff, by a third party, or by a combination of the two.
Our business depends on our ability to satisfy our customers, the use and functionality of our online platform, and the services that are performed by our customer service representatives and service providers. Services may be performed by our own staff, by a third party, or by a combination of the two.
Our strategy is to work with third parties to increase the breadth of capability of services through extensive training programs for delivery of these services to our customers, and third parties provide almost all of our on-site services.
Our strategy is to work with third parties to increase the breadth of capability of services through extensive training programs for the delivery of these services to our customers, and third parties provide almost all of our on-site services.
Our growth depends significantly on the growth of the Chinese economy which has recently slowed and industry demand and our ability to: ● expand our service offerings and diversify our customer base; ● source sufficient levels of service providers to meet additional or existing customer needs; ● successfully address competition challenges; ● hire, train and retain a sufficient number of qualified personnel to manage growth and operations; ● successfully maintain and develop relationships with strategic partners; ● improve and expand our website and WeChat platform in an increasingly competitive environment; ● drive traffic to our online platform through our planned expenditures and convert such traffic to sales efficiently and effectively; ● respond to changes in government policies that may impose restrictions on our business, including privacy or other consumer protection laws; ● keep up with changes in technology; and ● successfully integrate our strategic acquisitions and investments.
Our growth depends significantly on the growth of the Chinese economy, which has recently slowed, industry demand, and our ability to: ● expand our service offerings and diversify our customer base; ● source sufficient levels of service providers to meet additional or existing customer needs; ● successfully address competition challenges; ● hire, train, and retain a sufficient number of qualified personnel to manage growth and operations; ● successfully maintain and develop relationships with strategic partners; ● improve and expand our website and WeChat platform in an increasingly competitive environment; ● drive traffic to our online platform through our planned expenditures and convert such traffic to sales efficiently and effectively; ● respond to changes in government policies that may impose restrictions on our business, including privacy or other consumer protection laws; ● keep up with changes in technology; and ● successfully integrate our strategic acquisitions and investments.
We cannot assure you that communications between the senior management team and the local management teams will always be effective, or the executions at the local levels will always have the results that the senior management team expects.
We cannot assure you that communications between the senior management team and the local management teams will always be effective, or that the executions at the local levels will always have the results that the senior management team expects.
When our end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. After the service is rendered, our service provider will facilitate the collection of any unpaid balance of service fee from the end customer.
When our end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. After the service is rendered, our service provider will facilitate the collection of any unpaid balance of the service fee from the end customer.
A number of large internet companies have suffered security breaches, some of which have involved intentional ransomware attacks. From time to time, we and many other internet businesses also may be subject to a denial of service attacks wherein attackers attempt to block customers’ access to our website with ransomware.
A number of large internet companies have suffered security breaches, some of which have involved intentional ransomware attacks. From time to time, we and many other internet businesses may also be subject to denial of service attacks wherein attackers attempt to block customers’ access to our website with ransomware.
If we are unable to avert a denial of service attack for any significant period, we could sustain substantial loss from payment of ransom fee, lost sales and customer dissatisfaction. We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyberattacks.
If we are unable to avert a denial of service attack for any significant period, we could sustain substantial loss from payment of a ransom fee, lost sales and customer dissatisfaction. We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyberattacks.
We depend on various information systems to support our customers’ service orders and to successfully manage our business, including managing orders, accounting controls, payroll, among other things.
We depend on various information systems to support our customers’ service orders and to successfully manage our business, including managing orders, accounting controls, and payroll, among other things.
Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its offering and listed its securities on an overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other competent authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory delisting.
Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its offering and listed its securities on an overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other competent authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory delisting.
On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection and the National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took effect on March 31, 2023.
On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection, and the National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took effect on March 31, 2023.
PRC domestic enterprises seeking to offer securities and list in overseas markets, either directly or indirectly, shall establish and improve the system of confidentiality and archives work, and shall complete approval and filing procedures with competent authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving state secrets and work secrets of state organs to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals.
PRC domestic enterprises seeking to offer securities and list in overseas markets, either directly or indirectly, shall establish and improve the system of confidentiality and archives work, and shall complete approval and filing procedures with competent authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving state secrets and work secrets of state organs to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals.
It further stipulates that (i) providing or publicly disclosing documents and materials which may adversely affect national security or public interests, and accounting records or photocopies thereof to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals shall be subject to corresponding procedures in accordance with relevant laws and regulations; and (ii) any working papers formed in the territory of the PRC by securities companies and securities service agencies that provide domestic enterprises with securities services relating to overseas securities issuance and listing shall be stored in the territory of the PRC, the outbound transfer of which shall be subject to corresponding procedures in accordance with relevant laws and regulations.
It further stipulates that (i) providing or publicly disclosing documents and materials which may adversely affect national security or public interests, and accounting records or photocopies thereof to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals shall be subject to corresponding procedures in accordance with relevant laws and regulations; and (ii) any working papers formed in the territory of the PRC by securities companies and securities service agencies that provide domestic enterprises with securities services relating to overseas securities issuance and listing shall be stored in the territory of the PRC, the outbound transfer of which shall be subject to corresponding procedures in accordance with relevant laws and regulations.
Although our auditor is subject to inspection by the PCAOB, trading in E-Home’s securities may be prohibited under the HFCA Act if it is later determined that the PCAOB is unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction or any other reasons, as a result, U.S. national securities exchanges, such as the Nasdaq, may determine to delist E-Home’s securities.
Although our auditor is subject to inspection by the PCAOB, trading in E-Home’s securities may be prohibited under the HFCA Act if it is later determined that the PCAOB is unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction or any other reasons, as a result, U.S. national securities exchanges, such as the Nasdaq, may determine to delist E-Home’s securities.
In addition, if the auditor of a U.S. listed company’s financial statements is not subject to PCAOB inspections for three consecutive “non-inspection” years after the law becomes effective, the SEC is required to prohibit the securities of such issuer from being traded on a U.S. national securities exchange, such as NYSE and Nasdaq, or in U.S. over-the-counter markets.
In addition, if the auditor of a U.S.-listed company’s financial statements is not subject to PCAOB inspections for three consecutive “non-inspection” years after the law becomes effective, the SEC is required to prohibit the securities of such issuer from being traded on a U.S. national securities exchange, such as the NYSE and Nasdaq, or in U.S. over-the-counter markets.
On December 2, 2021, SEC adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act.
On December 2, 2021, the SEC adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act.
Because we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of your shares for return on your investment. We currently intend to retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business.
Because we do not expect to pay dividends in the foreseeable future, you must rely on the price appreciation of your shares for return on your investment. We currently intend to retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business.
Furthermore, a legislation entitled “Consolidated Appropriations Act, 2023” (“Consolidated Appropriations Act”) was signed into law on December 29, 2022, amending the HFCA Act and require the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive years instead of three. ● The trading price of our ordinary shares has been and is likely to continue to be highly volatile, which could result in substantial losses to holders of our ordinary shares. ● Because we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of your shares for return on your investment. ● You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law. ● We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies. ● As a foreign private issuer, we are permitted to rely on exemptions from certain Nasdaq corporate governance standards applicable to domestic U.S. issuers.
Furthermore, a legislation entitled “Consolidated Appropriations Act, 2023” (“Consolidated Appropriations Act”) was signed into law on December 29, 2022, amending the HFCA Act and requiring the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive years instead of three. ● The trading price of our ordinary shares has been and is likely to continue to be highly volatile, which could result in substantial losses to holders of our ordinary shares. ● Because we do not expect to pay dividends in the foreseeable future, you must rely on the price appreciation of your shares for return on your investment. ● You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law. ● We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such, we are exempt from certain provisions applicable to U.S. domestic public companies. ● As a foreign private issuer, we are permitted to rely on exemptions from certain Nasdaq corporate governance standards applicable to domestic U.S. issuers.
In addition to the above factors, the price and trading volume of our ordinary shares may be highly volatile due to multiple factors, including the following: ● regulatory developments affecting us or our industry; ● announcements of studies and reports relating to the quality of our services or those of our competitors; ● changes in the economic performance or market valuations of similar service providers; ● actual or anticipated fluctuations in our quarterly or semi-annual results of operations and changes or revisions of our expected results; ● changes in financial estimates by securities research analysts; ● conditions in the market for our services; ● announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments; ● additions to or departures of our senior management; ● fluctuations of exchange rates between the Renminbi and the U.S. dollar; ● release or expiry of lock-up or other transfer restrictions on our outstanding shares; and ● sales or perceived potential sales of additional ordinary shares. 27 If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the shares and trading volume could decline.
In addition to the above factors, the price and trading volume of our ordinary shares may be highly volatile due to multiple factors, including the following: ● regulatory developments affecting us or our industry; ● announcements of studies and reports relating to the quality of our services or those of our competitors; ● changes in the economic performance or market valuations of similar service providers; ● actual or anticipated fluctuations in our quarterly or semi-annual results of operations and changes or revisions of our expected results; ● changes in financial estimates by securities research analysts; ● conditions in the market for our services; ● announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings, or capital commitments; ● additions to or departures of our senior management; ● fluctuations of exchange rates between the Renminbi and the U.S. dollar; ● release or expiry of lock-up or other transfer restrictions on our outstanding shares; and ● sales or perceived potential sales of additional ordinary shares. 23 If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the shares and trading volume could decline.
Our ability to compete successfully and to manage our planned growth will depend primarily upon our ability to: ● maintain the continuity in our management and key personnel; ● maintain our professional sales force; ● react to competitive services, pricing pressures and pricing promotions; ● improve the strength of our brand, brand awareness and reputation; ● maintain customer satisfaction; ● maintain the quality and speed of our service; ● increase the productivity of our customer service personnel and service providers; ● effectively market and sell our services; ● expand our service provider network and referrals; ● acquire and maintain new customers and services; ● respond to service requests in a timely fashion; ● expand our geographic segments and service provider network; ● pursue selective acquisitions; ● develop and improve our operational, financial and management controls; and ● develop and improve our information reporting systems and procedures. 8 We compete in residential and commercial services industries, focusing on home appliance installation and maintenance, home-moving, home cleaning, senior care and smart community services, as well as sales of smart home supplementary merchandise.
Our ability to compete successfully and to manage our planned growth will depend primarily upon our ability to: ● maintain the continuity in our management and key personnel; ● maintain our professional sales force; ● react to competitive services, pricing pressures, and pricing promotions; ● improve the strength of our brand, brand awareness, and reputation; ● maintain customer satisfaction; ● maintain the quality and speed of our service; ● increase the productivity of our customer service personnel and service providers; ● effectively market and sell our services; ● expand our service provider network and referrals; ● acquire and maintain new customers and services; ● respond to service requests in a timely fashion; ● expand our geographic segments and service provider network; ● pursue selective acquisitions; ● develop and improve our operational, financial, and management controls; and ● develop and improve our information reporting systems and procedures. 10 We compete in residential and commercial services industries, focusing on home appliance installation and maintenance, home-moving, home cleaning, senior care, and smart community services, as well as sales of smart home supplementary merchandise.
Any failure of our service to operate effectively with future network platforms and technologies could reduce the demand for our services, result in customer dissatisfaction and harm our business. Assertions by third parties of infringement, misappropriation or other violation by us of their intellectual property rights could result in significant costs and substantially harm our business and operating results.
Any failure of our service to operate effectively with future network platforms and technologies could reduce the demand for our services, result in customer dissatisfaction, and harm our business. 26 Assertions by third parties of infringement, misappropriation, or other violation by us of their intellectual property rights could result in significant costs and substantially harm our business and operating results.
Our present and future employees or independent contractors may be employed by third parties and may have commitments under contracts with third parties that may limit their availability to us. If we are not able to develop enhancements and new features to our existing services or acceptable new services that keep pace with technological developments, our business will be harmed.
Our present and future employees or independent contractors may be employed by third parties and may have commitments under contracts with third parties that may limit their availability to us. If we are not able to develop enhancements and new features for our existing services or acceptable new services that keep pace with technological developments, our business will be harmed.
However, as the legislation is new and remains subject to further clarification and interpretation, it is not currently possible to ascertain the precise long-term impact of these legislative changes on our company. 15 Risks Related to Doing Business in China The Chinese government exerts significant oversight and discretion over the conduct of our business.
However, as the legislation is new and remains subject to further clarification and interpretation, it is not currently possible to ascertain the precise long-term impact of these legislative changes on our company. Risks Related to Doing Business in China The Chinese government exerts significant oversight and discretion over the conduct of our business.
According to the Cybersecurity Review Measures promulgated by the Cyberspace Administration of China and certain other PRC regulatory authorities in April 2020, which became effective in June 2020, operators of critical information infrastructure must pass a cybersecurity review when purchasing network products and services which do or may affect national security.
According to the Cybersecurity Review Measures promulgated by the Cyberspace Administration of China and certain other PRC regulatory authorities in April 2020, which became effective in June 2020, operators of critical information infrastructure must pass a cybersecurity review when purchasing network products and services that do or may affect national security.
The Personal Information Protection Law also provides that critical information infrastructure operators and personal information processing entities who process personal information meeting a volume threshold to be set by Chinese cyberspace regulators are also required to store in China personal information generated or collected in China, and to pass a security assessment administered by Chinese cyberspace regulators for any export of such personal information.
The Personal Information Protection Law also provides that critical information infrastructure operators and personal information processing entities that process personal information meeting a volume threshold to be set by Chinese cyberspace regulators are also required to store in China personal information generated or collected in China, and to pass a security assessment administered by Chinese cyberspace regulators for any export of such personal information.
We are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs. Recently enacted economic substance legislation of the Cayman Islands may adversely impact our company or its operations.
We are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs. 16 Recently enacted economic substance legislation of the Cayman Islands may adversely impact our company or its operations.
However, the PRC subsidiaries may only procure shareholder loans from E-Home HK to the extent of the difference between their respective registered capital and total investment amount as recorded in the Chinese Foreign Investment Comprehensive Management Information System. 3 Dividends and Other Distributions to U.S.
However, the PRC subsidiaries may only procure shareholder loans from E-Home HK to the extent of the difference between their respective registered capital and total investment amount as recorded in the Chinese Foreign Investment Comprehensive Management Information System. Dividends and Other Distributions to U.S.
Any compromise of our security could result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, and a loss of confidence in our security measures, which could harm our business. Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
Any compromise of our security could result in a violation of applicable privacy and other laws, significant legal and financial exposure, damage to our reputation, and a loss of confidence in our security measures, which could harm our business. 14 Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
We aim to provide customers with a good customer service experience, including by providing our customers with access to a full suite of services conveniently through our online platform. In addition, we seek to engage with our customers on an ongoing basis using online and offline channels.
We aim to provide customers with a good customer service experience, including providing our customers with access to a full suite of services conveniently through our online platform. In addition, we seek to engage with our customers on an ongoing basis using online and offline channels.
If our services are not delivered on time, customers may refuse to accept delivery. Any failure for our service providers to provide good customer service may negatively impact the experience of our customers, damage our reputation and cause us to lose customers.
If our services are not delivered on time, customers may refuse to accept delivery. Any failure of our service providers to provide good customer service may negatively impact the experience of our customers, damage our reputation, and cause us to lose customers.
This may result in confusion between those companies and our company and may lead to the dilution of our brand value, which could adversely affect our business. 12 Any disruption in our information systems could disrupt our future operations and could adversely impact our business and results of operations.
This may result in confusion between those companies and our company and may lead to the dilution of our brand value, which could adversely affect our business. Any disruption in our information systems could disrupt our future operations and could adversely impact our business and results of operations.
While we have not experienced collection problems from end customers or service providers in the past, we may incur significant write-offs if a significant number of our end customers fail to pay their outstanding balances or our service providers fail to remit the cash to us, which could adversely affect our revenues and profitability. 11 Any change, disruption, discontinuity in the features and functions of our online platform, including our failure to enhance and upgrade when needed, can be disruptive and may negatively impact our revenue.
While we have not experienced collection problems from end customers or service providers in the past, we may incur significant write-offs if a significant number of our end customers fail to pay their outstanding balances or our service providers fail to remit the cash to us, which could adversely affect our revenues and profitability. 13 Any change, disruption, or discontinuity in the features and functions of our online platform, including our failure to enhance and upgrade when needed, can be disruptive and may negatively impact our revenue.
Our PRC subsidiaries only access certain customers through the WeChat platform but none of them is an online platform operator themselves, nor is any of them required to obtain an ICP license for their operations.
Our PRC subsidiaries only access certain customers through the WeChat platform, but none of them is an online platform operator themselves, nor are any of them required to obtain an ICP license for their operations.
Because E-Home has no operations of its own, we conduct substantially all of our business in mainland China (which is also referred to as “ PRC ,” and for the purpose of this report, excluding Taiwan and the special administrative regions of Hong Kong and Macau) and generate revenue for the years ended June 30, 2022, 2023 and 2024 through E-Home’s subsidiaries, particularly, E-Home (Pingtan) Home Service Co., Ltd. and Fuzhou Bangchang Technology Co.
Because E-Home has no operations of its own, we conduct substantially all of our business in mainland China (which is also referred to as “ PRC ,” and for the purpose of this report, excluding Taiwan and the special administrative regions of Hong Kong and Macau) and generate revenue for the years ended June 30, 2023, 2024 and 2025 through E-Home’s subsidiaries, particularly, E-Home (Pingtan) Home Service Co., Ltd., and Fuzhou Bangchang Technology Co.
However, we may consider following home country practice in lieu of additional requirements under the Nasdaq Listing Rules with respect to certain corporate governance standards in the future which may afford less protection to investors. 29 There is a risk that we will be a passive foreign investment company for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our ordinary shares.
However, we may consider following the home country practice in lieu of additional requirements under the Nasdaq Listing Rules with respect to certain corporate governance standards in the future, which may afford less protection to investors. 25 There is a risk that we will be a passive foreign investment company for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our ordinary shares.
Any of these events could result in increases in operating expenses, limit our service offerings or result in a loss of business. A cybersecurity incident could have a negative impact on our business and results of operations.
Any of these events could result in increases in operating expenses, limit our service offerings, or result in a loss of business. A cybersecurity incident could have a negative impact on our business and the results of our operations.
The Chinese government has published policies that significantly affected certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could require us to seek permission from Chinese authorities to continue to operate our business, which may adversely affect our business, financial condition and results of operations.
The Chinese government recently has published new policies that significantly affected certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could require us to seek permission from Chinese authorities to continue to operate our business, which may adversely affect our business, financial condition and results of operations.
The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing documents having false statement or misleading information or material omissions, which may result in a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from entering the securities market.
The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing documents having false statements or misleading information or material omissions, which may result in a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from entering the securities market.
Regulatory authorities in China have implemented and are considering further legislative and regulatory proposals concerning data protection. China’s new Data Security Law went into effect on September 1, 2021.
Regulatory authorities in China have implemented and are considering further legislative and regulatory proposals concerning data protection. China’s Data Security Law went into effect on September 1, 2021.
Furthermore, a legislation entitled “Consolidated Appropriations Act, 2023” (“Consolidated Appropriations Act”) was signed into law on December 29, 2022, amending the HFCA Act and require the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive years instead of three.
Furthermore, a legislation entitled “Consolidated Appropriations Act, 2023” (“Consolidated Appropriations Act”) was signed into law on December 29, 2022, amending the HFCA Act and requiring the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive years instead of three.
However, there remains uncertainty as to the interpretation and implementation of the revised Cybersecurity Review Measures and we cannot assure you that the CAC will reach the same conclusion as our PRC counsel. On November 14, 2021, the CAC released the Regulations on Network Data Security (draft for public comments) and accepted public comments until December 13, 2021.
However, there remains uncertainty as to the interpretation and implementation of the revised Cybersecurity Review Measures, and we cannot assure you that the CAC will reach the same conclusion as our PRC counsel. In addition, on November 14, 2021, the CAC released the Regulations on Network Data Security (draft for public comments) and accepted public comments until December 13, 2021.
On December 29, 2022, Consolidated Appropriations Act was signed into law, amending the HFCA Act and require the SEC to prohibit an issuer’s securities from trading on U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive “non-inspection” years instead of three.
On December 29, 2022, the Consolidated Appropriations Act was signed into law, amending the HFCA Act and requiring the SEC to prohibit an issuer’s securities from trading on U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive “non-inspection” years instead of three.
Investors and Tax Consequences As of the date of this report, neither E-Home nor any of its subsidiaries have paid dividends or made distributions to U.S. investors. We intend to retain most, if not all, of our available funds and any future earnings to the development and growth of our business in China.
Investors and Tax Consequences As of the date of this annual report, neither E-Home nor any of its subsidiaries have paid dividends or made distributions to U.S. investors. We intend to retain most, if not all, of our available funds and any future earnings for the development and growth of our business in China.
According to the Notice on Arrangements for Overseas Securities Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has not completed such offering or listing on or before effective date of the new rules and also completes the offering or listing before September 30, 2023 will be considered as an existing listed company and is not required to make any filing until it conducts a new offering in the future.
According to the Notice on Arrangements for Overseas Securities Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has not completed such offering or listing before effective date of the new rules and also completes the offering or listing before September 30, 2023 are considered as an existing listed company and is not required to make any filing until it conducts a new offering in the future.
Moreover, the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence the PRC subsidiaries’ operations in China at any time. The Chinese government indicate an intent to exert more oversight and more control over offerings conducted overseas and/or foreign investment in China-based issuers.
Moreover, the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence the PRC subsidiaries’ operations in China at any time. The Chinese government indicates an intent to exert more oversight and more control over offerings conducted overseas and/or foreign investment in China-based issuers.
In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States. 28 Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies.
In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States. 24 Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies.
If any of the following risks actually occurs, our business, financial condition or operating results will suffer, the value of our shares could decline, and you may lose all or part of your investment. Summary of Risk Factors Investing in our company involves significant risks.
If any of the following risks actually occur, our business, financial condition, or operating results will suffer, the value of our shares could decline, and you may lose all or part of your investment. Summary of Risk Factors Investing in our company involves significant risks.
Furthermore, if internet access fees or other charges to internet users increase, our user traffic may decline and our business may be harmed. We are subject to cyber security risks and may incur increasing costs in an effort to minimize those risks and to respond to cyber incidents.
Furthermore, if internet access fees or other charges to internet users increase, our user traffic may decline and our business may be harmed. We are subject to cybersecurity risks and may incur increasing costs in an effort to minimize those risks and to respond to cyber incidents.
It is not anticipated that we will be subject to any requirements under the ES Law other than the annual notification and reporting requirements, as we believe we are out of scope of the ES Law on the basis that we are tax resident outside the Cayman Islands.
It is not anticipated that we will be subject to any requirements under the ES Act other than the annual notification and reporting requirements, as we believe we are out of scope of the ES Act on the basis that we are tax resident outside the Cayman Islands.
For fiscal years ended June 30, 2022, 2023 and 2024, no assets other than cash were transferred between E-Home and a subsidiary of the Company, and no subsidiaries paid dividends or made other distributions to the Cayman holding company.
For fiscal years ended June 30, 2023, 2024, and 2025, no assets other than cash were transferred between E-Home and a subsidiary of the Company, and no subsidiaries paid dividends or made other distributions to the Cayman holding company.
Our customers are normally asked to pay such balance through WeChat Pay or Alipay to our accounts so that we receive the payments immediately. If the customer does not have WeChat or Alipay accounts, our service providers will accept cash payments from them.
Our customers are normally asked to pay such a balance through WeChat Pay or Alipay to our accounts so that we receive the payments immediately. If the customer does not have a WeChat or Alipay account, our service providers will accept cash payments from them.
Any failure to remediate the material weakness and any future weaknesses or deficiencies or any failure to implement required new or improved controls or difficulties encountered in their implementation could cause us to fail to meet its reporting obligations or result in material misstatements in its financial statements.
Any failure to remediate the material weakness and any future weaknesses or deficiencies, or any failure to implement required new or improved controls or difficulties encountered in their implementation, could cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements.
The Cybersecurity Review Measures that took effect on February 15,2022 revised Cybersecurity Review Measures expand the cybersecurity review to data processing operators in possession of personal information of over 1 million users if the operators intend to list their securities in a foreign country.
The Cybersecurity Review Measures that took effect on February 15, 2022, revised the Cybersecurity Review Measures, expanding the cybersecurity review to data processing operators in possession of personal information of over 1 million users if the operators intend to list their securities in a foreign country.
If we are unable to provide quality performance or good customer service, our business and reputation may be materially and adversely impacted. 7 If we fail to retain existing or attract new customers or service providers, our business, financial condition and prospects may be materially and adversely affected.
If we are unable to provide quality performance or good customer service, our business and reputation may be materially and adversely impacted. 9 If we fail to retain existing or attract new customers or service providers, our business, financial condition and prospects may be materially and adversely affected.
Even if we succeed in establishing new strategic partnerships, and further expand our geographic footprint, we cannot assure that we will achieve planned revenue or profitability levels in the time periods estimated by us, or at all.
Even if we succeed in establishing new strategic partnerships and further expanding our geographic footprint, we cannot assure that we will achieve planned revenue or profitability levels in the time periods estimated by us, or at all.
The inability of the PCAOB to conduct inspections of auditors in China and Hong Kong makes it more difficult to evaluate the effectiveness of these accounting firm’s audit procedures or quality control procedures as compared to auditors outside of China and Hong Kong that are subject to the PCAOB inspections.
The inability of the PCAOB to conduct inspections of auditors in China and Hong Kong makes it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control procedures as compared to auditors outside of China and Hong Kong that are subject to the PCAOB inspections.
If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades our ordinary shares or publishes inaccurate or unfavorable research about our business, the market price for our ordinary shares would likely decline.
If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts who cover us downgrades our ordinary shares or publishes inaccurate or unfavorable research about our business, the market price for our ordinary shares would likely decline.
In connection with the preparation of the financial statements included in this annual report on Form 20-F for the year ended June 30, 2024, our management evaluated the effectiveness of our internal control over financial reporting as of June 30, 2024 and determined they were not effective due to certain material weaknesses as described in Part II. Item 15.
In connection with the preparation of the financial statements included in this annual report on Form 20-F for the year ended June 30, 2025, our management evaluated the effectiveness of our internal control over financial reporting as of June 30, 2025 and determined that they were not effective due to certain material weaknesses as described in Part II. Item 15.
Our experience in markets or customer demographic groups in which we presently have low penetration rates may differ from our more established markets. 10 Our brand promotion and marketing activities may not be as effective as we anticipate.
Our experience in markets or customer demographic groups in which we presently have low penetration rates may differ from our more established markets. 12 Our brand promotion and marketing activities may not be as effective as we anticipate.
Furthermore, statements made by the Chinese government have indicated an intent to increase the government’s oversight and control over offerings of companies with significant operations in China that are to be conducted in foreign markets, as well as foreign investment in China-based issuers like us, such as New Overseas Listing Rules.
Furthermore, recent statements made by the Chinese government have indicated an intent to increase the government’s oversight over offerings of companies with significant operations in China that are to be conducted in foreign markets, as well as foreign investment in China-based issuers like us, such as the New Overseas Listing Rules.
As a result, our business and results of operations could be materially and adversely affected. 31
As a result, our business and results of operations could be materially and adversely affected.
Within our direct holding structure, the cross-border transfer of funds from E-Home to its Chinese subsidiaries is permitted under laws and regulations of the PRC currently in effect. Foreign investors’ funds for purchasing E-Home’s securities being offered can be remitted to our subsidiaries in China, through E-Home HK.
Within our direct holding structure, the cross-border transfer of funds from E-Home to its Chinese subsidiaries is permitted under the laws and regulations of the PRC currently in effect. Foreign investors’ funds for purchasing E-Home’s securities offered by E-Home in the future can be remitted to our subsidiaries in China, through E-Home HK.
Pursuant to The International Tax Co-operation (Economic Substance) Act (As Revised), entities incorporated, formed or registered in the Cayman Islands must report their activities on an annual basis to the Cayman Islands tax authorities and those entities that are carrying on certain relevant activities, as defined in the ES Law, must have adequate substance in the Cayman Islands.
Pursuant to The International Tax Co-operation (Economic Substance) Act (As Revised) (the “ES Act”), entities incorporated, formed, or registered in the Cayman Islands must report their activities on an annual basis to the Cayman Islands tax authorities, and those entities that are carrying on certain relevant activities, as defined in the ES Act, must have adequate substance in the Cayman Islands.
ITEM 3. KEY INFORMATION Our Holding Company Structure and Their Respective Individual Shareholders E-Home is not an operating company but rather a holding company incorporated in the Cayman Islands.
ITEM 3. KEY INFORMATION Our Holding Company Structure and Its Respective Individual Shareholders E-Home is not an operating company but rather a holding company incorporated in the Cayman Islands.
Strategic alliances with third parties could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the counter-party, and an increase in expenses incurred in establishing new strategic alliances, any of which may materially and adversely affect our business.
Strategic alliances with third parties could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the counterparty, and an increase in expenses incurred in establishing new strategic alliances, any of which may materially and adversely affect our business.
Our independent registered public accounting firm, Enrome LLP, is not headquartered in mainland China or Hong Kong and was not identified in the report as a firm subject to the PCAOB’s determination on December 16, 2021, which determinations were vacated on December 15, 2022.
Our registered public accounting firm, Enrome LLP, is not headquartered in mainland China or Hong Kong and was not identified in the report as a firm subject to the PCAOB’s determination on December 16, 2021, which was vacated on December 15, 2022.
Any growth and expansion, when occur, will place increased demands on our management, operational and administrative resources. These increased demands and operating complexities could cause us to operate our business less effectively, which, in turn, could cause a deterioration in our financial performance and negatively impact our growth.
Any growth and expansion, when it occurs, will place increased demands on our management, operational, and administrative resources. These increased demands and operating complexities could cause us to operate our business less effectively, which, in turn, could cause a deterioration in our financial performance and negatively impact our growth.
In addition, marketing approaches and tools in the household services market in China are evolving, which require us to keep pace with industry developments and changing preferences.
In addition, marketing approaches and tools in the household services market in China are evolving, which requires us to keep pace with industry developments and changing preferences.
A cyber-attack may bypass the security for our IT systems causing a security breach and lead to a material disruption of our systems and/or the loss of business information and/or sales.
A cyber-attack may bypass the security for our IT systems, causing a security breach and leading to a material disruption of our systems and/or the loss of business information and/or sales.
The Company has not completed the filings with CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements of the rules which would subject the Company to fines and other penalties for violation of New Overseas Listing Rules.
The Company has not completed the filings with CSRC for its previous offerings since the effectiveness of the New Overseas Listing Rules, and has not complied with the filing requirements of the rules, which would subject the Company to fines and other penalties for violation of the New Overseas Listing Rules.
Depending on the reasons for non-payment, we may either request the service provider to fix the service problems or request the ender customer to pay.
Depending on the reasons for non-payment, we may either request the service provider to fix the service problems or request the end customer to pay.
If a registrant is identified as a Commission-Identified Issuer based on its annual report for the fiscal year ended December 31, 2021, the registrant will be required to comply with the submission or disclosure requirements in its annual report filing covering the fiscal year ended December 31, 2022.
If a registrant is identified as a Commission-Identified Issuer based on its annual report for the fiscal year ended December 31, 2021, the registrants are required to comply with the submission or disclosure requirements in its annual report filing covering the fiscal year ended December 31, 2022.
The ES Law was effective January 1, 2019 and applies in respect of financial years commencing in 2019 and onwards.
The ES Act was effective January 1, 2019 and applies in respect of financial years commencing in 2019 and onwards.
The Data Security Law sets forth the legal liabilities of entities and individuals found to be in violation of their data protection obligations, including rectification order, warning, fines of up to RMB5million, suspension of relevant business, and revocation of business permits or licenses.
The Data Security Law sets forth the legal liabilities of entities and individuals found to be in violation of their data protection obligations, including rectification orders, warnings, fines of up to RMB5million, suspension of relevant business, and revocation of business permits or licenses.
In recent years, there has been significant litigation involving intellectual property rights in many industries. Any infringement, misappropriation or related claims, whether or not meritorious, is time-consuming, diverts technical and management personnel and is costly to resolve.
In recent years, there has been significant litigation involving intellectual property rights in many industries. Any infringement, misappropriation, or related claims, whether or not meritorious, are time-consuming, divert technical and management personnel, and are costly to resolve.
Our subsidiaries in China provide home appliance services, senior care services and housekeeping services and their business activities do not affect national security and they don’t have documents and materials which may adversely affect national security or public interests.
Our subsidiaries in China provide home appliance services and housekeeping services, and their business activities do not affect national security and they don’t have documents and materials that may adversely affect national security or public interests.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeHousekeeping In January 2018, we began providing housekeeping services, which include housecleaning, and maternity matron. Our current standard charge for housecleaning services is about RMB 50 (approximately $6.92) per hour. The minimum order for housecleaning services is four hours. During our fiscal years ended June 30, 2024, 2023 and 2022, we served approximately 957,200, 856,500 and 739,900 customers, respectively.
Biggest changeThe steady growth in the number of registered users on our service platform led to increased customer inquiries and service orders, contributing to the overall revenue growth during the year. Housekeeping In January 2018, we began providing housekeeping services, which include housecleaning and maternity matron. Our current standard charge for housecleaning services is about RMB 50 (approximately $6.92) per hour.
We operate our business mainly by receiving the orders online and providing the services offline. Our online platform includes our website and WeChat platform. Customers order services and complete payments online. After our system automatically matches an order to the corresponding service provider, the service provider receives the order and arranges for a technician/cleaner to deliver the on-site service.
We operate our business mainly by receiving orders online and providing the services offline. Our online platform includes our website and WeChat platform. Customers order services and complete payments online. After our system automatically matches an order to the corresponding service provider, the service provider receives the order and arranges for a technician/cleaner to deliver the on-site service.
The customer service center will close the order according to customer’s evaluation and technician’s response.
The customer service center will close the order according to the customer’s evaluation and the technician’s response.
The term of our standard cooperation agreement is for five years and may be terminated by either party if (i) such party’s business is suspended by governmental authorities; (ii) the parties have material disputes in the course of operation and fail to settle through friendly consultation; or (iii) parties fail to reach a renewal agreement before the contract expires.
The term of our standard cooperation agreement is for five years and may be terminated by either party if (i) such party’s business is suspended by governmental authorities; (ii) the parties have material disputes in the course of operation and fail to settle through friendly consultation; or (iii) the parties fail to reach a renewal agreement before the contract expires.
An amendment to the registration is required if there is a material change with respect to the special purpose vehicle registered, such as any change of basic information (including change of the PRC residents, name and operation term), increases or decreases in investment amount, transfers or exchanges of shares, and mergers or divisions.
An amendment to the registration is required if there is a material change with respect to the special purpose vehicle registered, such as any change of basic information (including a change of the PRC residents, name, and operation term), increases or decreases in investment amount, transfers or exchanges of shares, and mergers or divisions.
Pursuant to the Stock Incentive Plan Notice and other relevant rules and regulations, PRC residents participating in stock incentive plan in an overseas publicly-listed company are required to register with the State Administration of Foreign Exchange or its local branches and follow certain other procedures.
Pursuant to the Stock Incentive Plan Notice and other relevant rules and regulations, PRC residents participating in the stock incentive plan in an overseas publicly-listed company are required to register with the State Administration of Foreign Exchange or its local branches and follow certain other procedures.
If an enterprise organized under the laws of jurisdiction outside China is considered a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, it would be subject to the PRC enterprise income tax at the rate of 25% on its worldwide income.
If an enterprise organized under the laws of a jurisdiction outside China is considered a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, it would be subject to the PRC enterprise income tax at the rate of 25% on its worldwide income.
This Circular reiterates the principle that Renminbi converted from foreign currency-denominated capital of a company may not be directly or indirectly used for purposes beyond its business scope and may not be used for investments in securities or other investment with the exception of bank financial products that can guarantee the principal within the PRC unless otherwise specifically provided.
This Circular reiterates the principle that Renminbi converted from foreign currency-denominated capital of a company may not be directly or indirectly used for purposes beyond its business scope and may not be used for investments in securities or other investments with the exception of bank financial products that can guarantee the principal within the PRC, unless otherwise specifically provided.
The Circular of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts was promulgated and became effective on June 9, 2016. According to this Circular, enterprises registered in PRC may also convert their foreign debts from foreign currency into Renminbi on self-discretionary basis.
The Circular of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts was promulgated and became effective on June 9, 2016. According to this Circular, enterprises registered in the PRC may also convert their foreign debts from foreign currency into Renminbi on a self-discretionary basis.
The rental payment for the remaining three villas shall be made every five years, which is RMB4,950,000 (approximately $720,031) for the period of 2023-2027 (due and payable in 2022), RMB5,445,000 (approximately $792,035) for the period of 2028-2032 (due and payable in 2027), and RMB5,989,500 (approximately $871,238) for the period of 2033-2037 (due and payable in 2032).
The rental payment for the remaining three villas shall be made every five years, which is RMB4,950,000 (approximately $720,031) for the period of 2023-2027 (paid in 2022), RMB5,445,000 (approximately $792,035) for the period of 2028-2032 (due and payable in 2027), and RMB5,989,500 (approximately $871,238) for the period of 2033-2037 (due and payable in 2032).
The offering was conducted on a firm commitment basis. On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders.
The offering was conducted on a firm commitment basis. 27 On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders.
According to Enterprise Income Tax Law, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise in China to its foreign enterprise investors are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a preferential withholding arrangement.
According to the Enterprise Income Tax Law, dividends generated after January 1, 2008 and payable by a foreign-invested enterprise in China to its foreign enterprise investors are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with China that provides for a preferential withholding arrangement.
We have registered four trademarks, including “e家快服” (“E-Home”), in the PRC and 10 software copyrights in the PRC. We are the registered holder of 1 domain name for our website: www.ej111.com . Insurance We provide social security insurance including pension insurance, unemployment insurance, work-related injury insurance, maternity insurance and medical insurance for our employees.
We have registered four trademarks, including “e 家快服 ” (“E-Home”), in the PRC and 10 software copyrights in the PRC. We are the registered holder of 1 domain name for our website: www.ej111.com . 33 Insurance We provide social security insurance, including pension insurance, unemployment insurance, work-related injury insurance, maternity insurance, and medical insurance for our employees.
Competition for home appliance installation and maintenance services comes mainly from regional providers. Our primary direct competitors include China Union Guarantee and RRS. 37 Competition in the segment for housekeeping services comes mainly from local, independently-owned firms, and from a few larger companies such as Homeking and 58Daojia.
Competition for home appliance installation and maintenance services comes mainly from regional providers. Our primary direct competitors include China Union Guarantee and RRS. Competition in the segment for housekeeping services comes mainly from local, independently-owned firms, and from a few larger companies, such as Homeking and 58Daojia.
We have, in accordance with relevant provisions on network security of the PRC, established necessary mechanisms to protect information security, including, among others, adopting necessary network security protection technologies such as anti-virus firewalls, intrusion detection and data encryption, keeping record of network logs, and implementing information classification framework. 40 Regulations Relating to Privacy Protection The Several Provisions on Regulating the Market Order of Internet Information Services, issued by the Ministry of Industry and Information Technology in December 2011, provide that, an internet information service provider may not collect any user personal information or provide any such information to third parties without the consent of a user.
We have, in accordance with relevant provisions on network security of the PRC, established necessary mechanisms to protect information security, including, among others, adopting necessary network security protection technologies such as anti-virus firewalls, intrusion detection, and data encryption, keeping a record of network logs, and implementing an information classification framework. 35 Regulations Relating to Privacy Protection The Several Provisions on Regulating the Market Order of Internet Information Services, issued by the Ministry of Industry and Information Technology in December 2011, provide that an internet information service provider may not collect any user personal information or provide any such information to third parties without the consent of a user.
This Circular provides an integrated standard for conversion of foreign exchange under capital account items (including but not limited to foreign currency capital and foreign debts) on self—discretionary basis, which applies to all enterprises registered in the PRC.
This Circular provides an integrated standard for the conversion of foreign exchange under capital account items (including but not limited to foreign currency capital and foreign debts) on a self-discretionary basis, which applies to all enterprises registered in the PRC.
Regulations Relating to Taxation Dividend Withholding Tax In March 2007, the National People’s Congress enacted the Enterprise Income Tax Law which became effective on January 1, 2008 and amended on February 24, 2017.
Regulations Relating to Taxation Dividend Withholding Tax In March 2007, the National People’s Congress enacted the Enterprise Income Tax Law, which became effective on January 1, 2008 and was amended on February 24, 2017.
On May 14, 2021, our ordinary shares commenced trading on the Nasdaq Capital Market under the symbol “EJH.” On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share, including 20,000 ordinary shares issued upon the partial exercise of the over-allotment option by Joseph Stone Capital, LLC, who acted as the representative of underwriters for the initial public offering.
On May 14, 2021, our ordinary shares commenced trading on the Nasdaq Capital Market under the symbol “EJH.” On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share, including 20,000 ordinary shares issued upon the partial exercise of the over-allotment option by Joseph Stone Capital, LLC, which acted as the representative of underwriters for the initial public offering.
The Opinions on Strictly Cracking Down on Illegal Securities Activities issued on July 6, 2021 called for: ● tightening oversight of data security, cross-border data flow and administration of classified information, as well as amendments to relevant regulation to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; ● enhanced oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and ● extraterritorial application of China’s securities laws.
The Opinions on Strictly Cracking Down on Illegal Securities Activities issued on July 6, 2021 called for: ● tightening oversight of data security, cross-border data flow, and administration of classified information, as well as amendments to relevant regulations to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; ● enhanced oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and ● extraterritorial application of China’s securities laws.
E-Home Pingtan is a holding company of the following subsidiaries: (i) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd., a limited liability company established under the laws of the PRC on October 12, 2004; (ii) 100% of the equity interests of Fujian Happiness Yijia Family Service Co., Ltd., a limited liability company established under the laws of the PRC on January 19, 2015; and (iii) 100% of the equity interests of Danyang Fumao Health Development Co., Ltd., a limited liability company established under the laws of the PRC on June 23, 2021.
E-Home Pingtan is a holding company of the following subsidiaries: (i) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd., a limited liability company established under the laws of the PRC on October 12, 2004; (ii) 100% of the equity interests of Fujian Happy Yijia Family Service Co., Ltd., a limited liability company established under the laws of the PRC on January 19, 2015; and (iii) 100% of the equity interests of Danyang Fumao Health Development Co., Ltd., a limited liability company established under the laws of the PRC on June 23, 2021.
See “Risk Factors—Risks Related to Doing Business in China—Any failure to comply with PRC regulations regarding employee share incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.” 44 Regulations on Dividend Distribution Distribution of dividends of foreign investment enterprises are mainly governed by the Foreign Investment Enterprise Law, issued in 1986 and amended in 2000 and 2016, respectively, and the Implementation Rules under the Foreign Investment Enterprise Law, issued in 1990 and amended in 2001 and 2014, respectively.
See “Risk Factors-Risks Related to Doing Business in China-Any failure to comply with PRC regulations regarding employee share incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions.” Regulations on Dividend Distribution Distribution of dividends of foreign investment enterprises is mainly governed by the Foreign Investment Enterprise Law, issued in 1986 and amended in 2000 and 2016, respectively, and the Implementation Rules under the Foreign Investment Enterprise Law, issued in 1990 and amended in 2001 and 2014, respectively.
Under our current corporate structure, our Cayman Islands holding company may rely on dividend payments from our PRC subsidiaries to fund any cash and financing requirements we may have. Limitation on the ability of our PRC subsidiaries to pay dividends to us could limit our ability to access cash generated by the operations of those entities.
Under our current corporate structure, our Cayman Islands holding company may rely on dividend payments from our PRC subsidiaries to fund any cash and financing requirements we may have. Limitations on the ability of our PRC subsidiaries to pay dividends to us could limit our ability to access cash generated by the operations of those entities.
According to these measures, domain name applicants are required to duly register their domain names with domain name registration service institutions. The applicants will become the holder of such domain names upon the completion of the registration procedure. We have adopted necessary mechanisms to register, maintain and enforce intellectual property rights in China.
According to these measures, domain name applicants are required to duly register their domain names with domain name registration service institutions. The applicants will become the holders of such domain names upon the completion of the registration procedure. We have adopted necessary mechanisms to register, maintain, and enforce intellectual property rights in China.
We plan to further expand our business to include smart community services, as well as sales of smart home supplementary merchandise. We currently have approximately 528 employees to support our operations. The focus of our integrated household services will be adjusted based on different seasons and different locations.
We plan to further expand our business to include smart community services, as well as sales of smart home supplementary merchandise. We currently have approximately 527 employees to support our operations. The focus of our integrated household services will be adjusted based on different seasons and different locations.
An internet information service provider is also required to properly maintain the user personal information, and in case of any leak or likely leak of the user personal information, online lending service providers must take immediate remedial measures and, in severe circumstances, make an immediate report to the telecommunications regulatory authority.
An internet information service provider is also required to properly maintain the user's personal information, and in case of any leak or likely leak of the user's personal information, online lending service providers must take immediate remedial measures and, in severe circumstances, make an immediate report to the telecommunications regulatory authority.
We have invested heavily in expanding and upgrading our business. In 2017, we acquired 67% of Fujian Happiness Yijia Family Service Co., Ltd. and 100% of Fuzhou Yongheng Xin Electric Co., Ltd. to support the expansion of our integrated household services and the training of our service providers.
We have invested heavily in expanding and upgrading our business. In 2017, we acquired 67% of Fujian Happy Yijia Family Service Co., Ltd. and 100% of Fuzhou Yongheng Xin Electric Co., Ltd. to support the expansion of our integrated household services and the training of our service providers.
Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong. On July 30, 2022, the Company’s board of directors approved to acquire 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying.
Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong. On July 30, 2022, the Company’s board of directors approved to acquisition of 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying.
The Personal Information Protection Law apply to the activities of processing the personal data of natural persons within the territory of the PRC. The individual’s consent shall be obtained to process personal data in accordance with other relevant provisions of this Law, subject to certain exceptions stipulated in this Law.
The Personal Information Protection Law applies to the activities of processing the personal data of natural persons within the territory of the PRC. The individual’s consent shall be obtained to process personal data in accordance with other relevant provisions of this Law, subject to certain exceptions stipulated in this Law.
The Interim Provisions on Labor Dispatch require employers not in compliance with the PRC Labor Contract Law in this regard to reduce the number of its dispatched workers to below 10% of the total number of its employees prior to March 1, 2016.
The Interim Provisions on Labor Dispatch require employers not in compliance with the PRC Labor Contract Law in this regard to reduce the number of their dispatched workers to below 10% of the total number of their employees prior to March 1, 2016.
Circular 37 stipulates that, prior to making contributions into a special purpose vehicle, PRC residents or entities be required to complete foreign exchange registration with the State Administration of Foreign Exchange or its local branch.
Circular 37 stipulates that, prior to making contributions into a special purpose vehicle, PRC residents or entities are required to complete foreign exchange registration with the State Administration of Foreign Exchange or its local branch.
In addition, from time to time we enter into appliances installation and maintenance and cleaning services cooperation agreements with various companies, which pursuant to the agreements outsource their businesses of appliances installation and maintenance and cleaning services to us.
In addition, from time to time, we enter into appliance installation and maintenance and cleaning services cooperation agreements with various companies, which, pursuant to the agreements, outsource their businesses of appliance installation and maintenance and cleaning services to us.
In 2021, we entered into equity transfer agreements to acquire 33% of Fujian Happiness Yijia Family Service Co., Ltd. (67% of which was previously owned by us).
In 2021, we entered into equity transfer agreements to acquire 33% of Fujian Happy Yijia Family Service Co., Ltd. (67% of which was previously owned by us).
Under these regulations, foreign investment enterprises in the PRC may distribute dividends only out of their accumulative profits, if any, determined in accordance with PRC accounting standards and regulations.
Under these regulations, foreign investment enterprises in the PRC may distribute dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations.
In addition, the Data Security Law provides for a national security review procedure for those data activities which may affect national security and imposes export restrictions on certain data and information.
In addition, the Data Security Law provides for a national security review procedure for those data activities that may affect national security and imposes export restrictions on certain data and information.
We help customers protect and maintain their home system and appliance from unplanned breakdowns of essential home systems and appliances, which are typically expensive. We provide customers with efficient and convenient home appliance services such as installation, repair, maintenance and other after sale services.
We help customers protect and maintain their home systems and appliances from unplanned breakdowns of essential home systems and appliances, which are typically expensive. We provide customers with efficient and convenient home appliance services such as installation, repair, maintenance, and other after-sales services.
The Enterprise Income Tax Law and its relevant implementing rules (i) impose a uniform 25% enterprise income tax rate, which is applicable to both foreign-invested enterprises and domestic enterprises (ii) permits companies to continue to enjoy their existing tax incentives, subject to certain transitional phase-out rules and (iii) introduces new tax incentives, subject to various qualification criteria.
The Enterprise Income Tax Law and its relevant implementing rules (i) impose a uniform 25% enterprise income tax rate, which is applicable to both foreign-invested enterprises and domestic enterprises, (ii) permit companies to continue to enjoy their existing tax incentives, subject to certain transitional phase-out rules, and (iii) introduce new tax incentives, subject to various qualification criteria.
For additional fees, these customers will be able to go to our senior care center to enjoy a series of services including nursery, medical and housekeeping until their natural death. Advanced level customer services are exclusively offered to seniors over 60 years old. As of June 30, 2024 and 2023, we had received about 227,015 and 203,910 senior care orders.
For additional fees, these customers will be able to go to our senior care center to enjoy a series of services, including nursery, medical, and housekeeping, until their natural death. Advanced-level customer services are exclusively offered to seniors over 60 years old. As of June 30, 2025 and 2024, we had received about 227,215 and 227,015 senior care orders.
None of our reportable segments are dependent on a single customer or a few customers, the loss of which would have a material adverse effect on the segment. Competition We compete in residential and commercial services industries, focusing on home appliance installation and maintenance, accessories sales, housekeeping services and senior care services.
None of our reportable segments is dependent on a single customer or a few customers, the loss of which would have a material adverse effect on the segment. Competition We compete in residential and commercial services industries, focusing on home appliance installation and maintenance, accessory sales, housekeeping services, and senior care services.
On January 27, 2021, the Catalogue of Industries for Encouraging Foreign Investment (2020 Version) which was promulgated by NDRC and MOC became effective and the “household services” falls with the catalogue. In December 2019, the MOFCOM and the State Administration for Market Regulation (“SAMR”) promulgated the Measures on Reporting of Foreign Investment Information, which came into effect in January 2020.
On January 27, 2021, the Catalogue of Industries for Encouraging Foreign Investment (2020 Version), which was promulgated by NDRC and MOC, became effective, and the “household services” fall within the catalogue. In December 2019, the MOFCOM and the State Administration for Market Regulation (“SAMR”) promulgated the Measures on Reporting of Foreign Investment Information, which came into effect in January 2020.
On July 6, 2021, certain PRC regulatory authorities issued Opinions on Strictly Cracking Down on Illegal Securities Activities, to improve relevant laws and regulations on data security, crossborder data transmission, and confidential information management.
On July 6, 2021, certain PRC regulatory authorities issued Opinions on Strictly Cracking Down on Illegal Securities Activities to improve relevant laws and regulations on data security, cross-border data transmission, and confidential information management.
Such transactions mentioned above allowed E-Home WFOE to have control over E-Home Pingtan, Fuzhou Bangchang, Zhongrun and Chuangying and their subsidiaries based and upon which we consolidated E-Home Pingtan, Fuzhou Bangchang, Zhongrun and Chuangying and their subsidiaries into our financial statements for the fiscal years ended June 30, 2024.
Such transactions mentioned above allowed E-Home WFOE to have control over E-Home Pingtan, Fuzhou Bangchang, Zhongrun, and Chuangying and their subsidiaries, based upon which we consolidated E-Home Pingtan, Fuzhou Bangchang, Zhongrun, and Chuangying and their subsidiaries into our financial statements for the fiscal year ended June 30, 2025.
Such agreements typically have a term of three years and require us to pay certain amount of security deposits to ensure that we will provide required services according to the agreements.
Such agreements typically have a term of three years and require us to pay a certain amount of security deposits to ensure that we will provide the required services according to the agreements. The deposits will be returned to us after the expiration of the agreements.
In February 2019, we launched a home appliance service package for customers, whereby the customer pays a flat annual fee for the package, and we provide a warranty for a certain amount of customer’s home appliances.
In February 2019, we launched a home appliance service package for customers, whereby the customer pays a flat annual fee for the package, and we provide a warranty for a certain number of customers’ home appliances.
Most our home appliance services are conducted in Shandong, Henan and Hunan provinces, while our housekeeping and care services are mainly conducted in Fujian, Shandong and Guangxi provinces. We received over 1,319,141 and 1,087,093 service orders in the fiscal years ended June 30, 2023 and 2024, respectively. We believe that all services ordered were successfully delivered.
Most of our home appliance services are conducted in Shandong, Henan, and Hunan provinces, while our housekeeping and care services are mainly conducted in Fujian, Shandong, and Guangxi provinces. We received over 1,087,093 and 1,176,394 service orders in the fiscal years ended June 30, 2024 and 2025, respectively. We believe that all services ordered were successfully delivered.
If the customer does not have WeChat or Alipay accounts, our service providers will accept cash payments from them and the service providers have thirty days to wire the payments to the bank accounts designated by us according to the agreement that we entered into with them. If the customer refuses to pay, we will communicate with the customer directly.
If the customer does not have a WeChat or Alipay account, our service providers will accept cash payments from them, and the service providers have thirty days to wire the payments to the bank accounts designated by us according to the agreement that we entered into with them.
Our agreements with the service providers do not have a provision requiring the service providers to pay us or requiring us to pay the service providers in this situation. For accounting purposes, we will treat the failure of payment by the customer as a bad debt. Historically, we have not experienced collection problems from customers.
Our agreements with the service providers do not have a provision requiring the service providers to pay us or requiring us to pay the service providers in this situation. For accounting purposes, we will treat the failure of payment by the customer as a bad debt.
The number of our registered members increased to more than 5.26 million for the year ended June 30, 2024 from 4.45 million for the year ended June 30, 2023 and approximately 3.6 million for the year ended June 30, 2022.
The number of our registered members increased to more than 5.72 million for the year ended June 30, 2025 from 5.26 million for the year ended June 30, 2024 and approximately 4.45 million for the year ended June 30, 2023.
Furthermore, according to Announcement of the State Taxation Administration on Matters relating to Expanding the Scope of the Pilot Scheme for Issuance of Special VAT Invoices by Small-Scale Taxpayers issued by State Administration on February 3, 2019, the basic mechanism may not apply to small-scale taxpayers who may pay the VAT taxes at the levy rates of 3% and 5% on the basis of their sales amount.
Furthermore, according to Announcement of the State Taxation Administration on Matters relating to Expanding the Scope of the Pilot Scheme for Issuance of Special VAT Invoices by Small-Scale Taxpayers issued by State Administration on February 3, 2019, the basic mechanism may not apply to small-scale taxpayers who may pay the VAT taxes at the levy rates of 3% and 5% on the basis of their sales amount. 41 Corporate Information The Company was incorporated in the Cayman Islands on September 24, 2018.
Due to the weak economy and consumer spending in China, our overall revenue for the year ended June 30, 2024 decreased to approximately $50.69 million from approximately $68.32 million for the year ended June 30, 2023, representing a decrease of approximately 25.81%, and our net loss decreased to approximately $19.47 million from $36.24 million for the year ended June 30, 2023, representing a decrease in net loss of approximately 46.28%.
Due to the weak economy and consumer spending in China, our overall revenue for the year ended June 30, 2024 decreased to approximately $50.47 million (reclassified) from approximately $65.95 million (reclassified) for the year ended June 30, 2023, representing a decrease of approximately 23.48%, and our net loss decreased to approximately $19.47 million from $36.24 million for the year ended June 30, 2023, representing a decrease in net loss of approximately 46.28%.
Offline services are mainly promoted by clients from communities, institutions, training agencies and firms through peer-to-peer marketing. We also aim to deliver premium services to garner strong word-of-mouth referrals and enhance our brand recognition.
We market our brand and services through multiple channels, both online and offline. Online marketing is mainly done through WeChat events. Offline services are mainly promoted by clients from communities, institutions, training agencies, and firms through peer-to-peer marketing. We also aim to deliver premium services to garner strong word-of-mouth referrals and enhance our brand recognition.
Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong. On July 30, 2022, our board of directors approved to acquire 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying. As of the date of this report, the above acquisitions have been closed.
Chen agreed to transfer 55% and 20% of the equity interests in Zhongrun to E-Home Hong Kong. On July 30, 2022, our board of directors approved to acquire 100% of the equity interests of Chuangying and its subsidiaries from Lin Jianying.
We have no single customer that accounts for more than ten percent of our consolidated revenue. Additionally, no reportable segment has a single customer that accounts for more than ten percent of its revenue.
Customers Our customers mainly include individuals and families. We have no single customer that accounts for more than ten percent of our consolidated revenue. Additionally, no reportable segment has a single customer that accounts for more than ten percent of its revenue.
If the customer has already identified the reason for the malfunction of the home appliance that needs to be repaired, the charge for this order could be paid in full online directly after the order’s placement, but if the reason could not be identified, an upfront visit fee would be charged, and after our technician identifies the problem, the customer can fill the price difference online, or make a money-transfer by mobile phone or bank. 34 Our customers are normally asked to pay the unpaid balance through WeChat Pay or Alipay to our accounts so that we receive the payments immediately.
If the customer has already identified the reason for the malfunction of the home appliance that needs to be repaired, the charge for this order could be paid in full online directly after the order’s placement, but if the reason could not be identified, an upfront visit fee would be charged, and after our technician identifies the problem, the customer can fill the price difference online, or make a money-transfer by mobile phone or bank.
E-Home Pingtan reduced its shareholding in Fuzhou Fumao from 67% to 20% as of September 15, 2021 by completing the registration of the transfer of 47% equity interests in Fuzhou Fumao to certain individuals with local governmental authorities.
E-Home Pingtan reduced its shareholding in Fuzhou Fumao from 67% to 20% as of September 15, 2021 by completing the registration of the transfer of 47% equity interests in Fuzhou Fumao to certain individuals with local governmental authorities. On December 23, 2022, E-Home Pingtan transferred its remaining shareholding in Fuzhou Fumao to an unrelated third party.
E-Home Household Service Holdings Limited is a holding company and holds all of the equity interests of E-Home WFOE, which was established in the PRC on December 5, 2018.
On October 16, 2018, we established E-Home Household Service Holdings Limited as a wholly-owned subsidiary in Hong Kong. E-Home Household Service Holdings Limited is a holding company and holds all of the equity interests of E-Home WFOE, which was established in the PRC on December 5, 2018.
Depending on the reasons for nonpayment, we may either request the service provider to fix the service problems or request the customer to pay.
If the customer refuses to pay, we will communicate with the customer directly. Depending on the reasons for nonpayment, we may either request the service provider to fix the service problems or request the customer to pay.
Such activities include: 1) establishing by foreign investors of foreign-invested enterprises in China alone or jointly with other investors; 2) acquiring by foreign investors of shares, equity, property shares, or other similar interests of Chinese domestic enterprises; 3) investing by foreign investors in new projects in China alone or jointly with other investors; and 4) other forms of investment prescribed by laws, administrative regulations or the State Council. 38 In December 2019, the State Council promulgated the Regulations on Implementing the Foreign Investment Law of the PRC, which came into effect in January 2020.
Such activities include: 1) establishing by foreign investors of foreign-invested enterprises in China alone or jointly with other investors; 2) acquiring by foreign investors of shares, equity, property shares, or other similar interests of Chinese domestic enterprises; 3) investing by foreign investors in new projects in China alone or jointly with other investors; and 4) other forms of investment prescribed by laws, administrative regulations or the State Council.
We launch different service events based on different seasons. For example, people tend to maintain and clean their air conditioners between April and May, so we will mainly promote and provide home appliance services in this time period each year. Customers Our customers mainly include individuals and families.
We offer service discounts or promotions from time to time to stimulate customer orders. We launch different service events based on different seasons. For example, people tend to maintain and clean their air conditioners between April and May, so we will mainly promote and provide home appliance services in this time period each year.
Both Bulletin 37 and Bulletin 7 do not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction through a public stock exchange.
Neither Bulletin 37 nor Bulletin 7 applies to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction through a public stock exchange.
In addition, the State Administration of Foreign Exchange promulgated the Notice on Further Simplifying and Improving the Administration of the Foreign Exchange Concerning Direct Investment in February 2015, which amended Circular 37 and became effective on June 1, 2015, requiring PRC residents or entities to register with qualified banks rather than the State Administration of Foreign Exchange in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. 43 PRC residents or entities who had contributed legitimate onshore or offshore interests or assets to special purpose vehicles but had not obtained registration as required before the implementation of the Circular 37 must register their ownership interests or control in the special purpose vehicles with qualified banks.
In addition, the State Administration of Foreign Exchange promulgated the Notice on Further Simplifying and Improving the Administration of the Foreign Exchange Concerning Direct Investment in February 2015, which amended Circular 37 and became effective on June 1, 2015, requiring PRC residents or entities to register with qualified banks rather than the State Administration of Foreign Exchange in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing.
The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing documents having false statement or misleading information or material omissions, which may result in administrative penalties such as order to rectify, warnings and a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines and may be barred from entering the securities market. 45 On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection and the National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took effect on March 31, 2023.
The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing documents having false statement or misleading information or material omissions, which may result in administrative penalties such as order to rectify, warnings and a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines and may be barred from entering the securities market.
On January 26, 2017, the State Administration of Foreign Exchange promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities, including (i) banks must check whether the transaction is genuine by reviewing board resolutions regarding profit distribution, original copies of tax filing records and audited financial statements, and (ii) domestic entities must retain income to account for previous years’ losses before remitting any profits.
Besides, the converted Renminbi shall not be used to make loans for related enterprises unless it is within the business scope or to build or to purchase any real estate that is not for the enterprise's own use, with the exception of the real estate enterprise. 37 On January 26, 2017, the State Administration of Foreign Exchange promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, which stipulates several capital control measures with respect to the outbound remittance of profits from domestic entities to offshore entities, including (i) banks must check whether the transaction is genuine by reviewing board resolutions regarding profit distribution, original copies of tax filing records and audited financial statements, and (ii) domestic entities must retain income to account for previous years’ losses before remitting any profits.
Second, a 10% withholding tax would be imposed on dividends it pays to its non-PRC enterprise shareholders and with respect to gains derived by its non-PRC enterprise shareholders from transfer of its shares. 46 On October 17, 2017, the State Administration of Taxation issued the Bulletin on Issues Concerning the Withholding of Non-PRC Resident Enterprise Income Tax at Source, or Bulletin 37, which replaced the Notice on Strengthening Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises issued by the State Administration of Taxation on December 10, 2009, and partially replaced and supplemented rules under the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7, issued by the State Administration of Taxation on February 3, 2015.
On October 17, 2017, the State Administration of Taxation issued the Bulletin on Issues Concerning the Withholding of Non-PRC Resident Enterprise Income Tax at Source, or Bulletin 37, which replaced the Notice on Strengthening Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises issued by the State Administration of Taxation on December 10, 2009, and partially replaced and supplemented rules under the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7, issued by the State Administration of Taxation on February 3, 2015.
Regulations Relating to Internet Information Security In 1997, the Ministry of Public Security promulgated measures that prohibit use of the internet in ways which, among other things, result in a leakage of state secrets or a spread of socially destabilizing content.
Therefore, there are no restrictions on foreign investment in the industries where we operate. 34 Regulations Relating to Internet Information Security In 1997, the Ministry of Public Security promulgated measures that prohibit the use of the internet in ways that, among other things, result in a leakage of state secrets or a spread of socially destabilizing content.
Under this regulation, network operators, including online lending information service providers, shall comply with laws and regulations and fulfill their obligations to safeguard security of the network when conducting business and providing services, and take all necessary measures pursuant to laws, regulations and compulsory national requirements to safeguard the safe and stable operation of the networks, respond to network security incidents effectively, prevent illegal and criminal activities, and maintain the integrity, confidentiality and usability of network data. 39 On April 13, 2020, the Cyberspace Administration of China (“CAC”), the NDRC, the MIIT, and several other governmental authorities jointly issued the Cybersecurity Review Measures, which came into effect on June 1, 2020.
Under this regulation, network operators, including online lending information service providers, shall comply with laws and regulations and fulfill their obligations to safeguard security of the network when conducting business and providing services, and take all necessary measures pursuant to laws, regulations and compulsory national requirements to safeguard the safe and stable operation of the networks, respond to network security incidents effectively, prevent illegal and criminal activities, and maintain the integrity, confidentiality and usability of network data.
C. Organizational Structure See “A. History and Development of the Company—Corporate Structure” above for details of our current organizational structure. D. Facilities Our corporate headquarters are located in Fuzhou City, China, where we own an area of approximately 1,000 square meters which was purchased in November 2021 and put into use in September 2022.
Facilities Our corporate headquarters are located in Fuzhou City, China, where we own an area of approximately 1,000 square meters, which was purchased in November 2021 and put into use in September 2022.
The foreign exchange proceeds received by the PRC residents from the sale of shares under the stock incentive plans granted and dividends distributed by the overseas listed companies must be remitted into the bank accounts in the PRC opened by the PRC agents prior to distribution to such PRC residents.
The foreign exchange proceeds received by the PRC residents from the sale of shares under the stock incentive plans granted and dividends distributed by the overseas listed companies must be remitted into the bank accounts in the PRC opened by the PRC agents prior to distribution to such PRC residents. 38 We may adopt a share incentive plan in the future, under which we will have the discretion to award incentives and rewards to eligible participants.
We are engaged in the business of household services, appliance maintenance and repair and senior care, none of which falls within the Negative List. Therefore, there are no restrictions on foreign investment in the industries where we operate.
We are engaged in the business of household services, appliance maintenance and repair, and senior care, none of which falls within the Negative List.
However, we cannot guarantee that all employee awarded equity-based incentives can successfully register with the State Administration of Foreign Exchange in full compliance with the Stock Incentive Plan Notice.
We plan to advise the recipients of awards under our share incentive plan to handle relevant foreign exchange matters in accordance with the Stock Incentive Plan Notice. However, we cannot guarantee that all employees awarded equity-based incentives can successfully register with the State Administration of Foreign Exchange in full compliance with the Stock Incentive Plan Notice.
However, the price of some accessories such as TV screens could be much higher-up to RMB1,600 (approximately $221.43). We purchase accessories from suppliers through unified purchasing channels, and the suppliers will distribute the accessories directly to our service providers. Service providers provide price information of the accessories before they provide relevant services to end customers.
Prices for these accessories range from RMB400 to RMB700 (approximately from $55.36 to $96.88). However, the price of some accessories, such as TV screens, could be much higher-up to RMB1,600 (approximately $221.43). We purchase accessories from suppliers through unified purchasing channels, and the suppliers will distribute the accessories directly to our service providers.
We enter into a cooperation agreement with each of the individual service providers and service stores that provide our installation and maintenance services. Under our standard cooperation agreement, we agree to recommend customers to the service provider and assist it in conducting its business, and the service provider agrees to provide the services.
Under our standard cooperation agreement, we agree to recommend customers to the service provider and assist it in conducting its business, and the service provider agrees to provide the services.
We began test operations for these services in February 2019 and generated approximately $7.39 million, $6.52 million and $4.43 million of revenue from senior care services during the fiscal year ended June 30, 2022, 2023 and 2024, respectively. This service primarily targets the senior population over 60 years old.
We began test operations for these services in February 2019 and generated approximately, $6.52 million, $4.03 million, and $0.35 million of revenue from senior care services during the fiscal years ended June 30, 2023, 2024, and 2025, respectively.
By contrast, the conversion of RMB into foreign currencies and remittance of the converted foreign currency outside the PRC for the purpose of capital account items, such as direct equity investments, loans and repatriation of investment, requires prior approval from the State Administration of Foreign Exchange or its local office. 42 On February 13, 2015, the State Administration of Foreign Exchange promulgated the Circular on Simplifying and Improving the Foreign Currency Management Policy on Direct Investment, effective from June 1, 2015, which cancels the requirement for obtaining approvals of foreign exchange registration of foreign direct investment and overseas direct investment from the State Administration of Foreign Exchange.
By contrast, the conversion of RMB into foreign currencies and remittance of the converted foreign currency outside the PRC for the purpose of capital account items, such as direct equity investments, loans, and repatriation of investment, requires prior approval from the State Administration of Foreign Exchange or its local office.
We market our services to both homeowners and businesses through online and offline marketing activities, including advertisements via various social media channels such as WeChat, marketing partnerships, various offline marketing events hosted by our local employees, and through our sales teams. We offer service discounts or promotions from time to time to stimulate customer orders.
Our general marketing efforts are designed to build brand awareness and reputation. We market our services to both homeowners and businesses through online and offline marketing activities, including advertisements via various social media channels such as WeChat, marketing partnerships, various offline marketing events hosted by our local employees, and through our sales teams.
We will charge additional fees if our customers request extra services, such as accompanying the customers to hospitals for treatment, preparing Chinese herbal decoctions or assigning personnel to take care of the seniors.
We receive the customer’s heart rate, blood pressure changes, and location, and connect to community doctors in real time. We will charge additional fees if our customers request extra services, such as accompanying the customers to hospitals for treatment, preparing Chinese herbal decoctions, assigning personnel to take care of the seniors, or in-housing nanny services.
Our principal executive office is located at is E-Home, 18/F, East Tower, Building B, Dongbai Center, Yangqiao Road, Gulou District, Fuzhou City 350001, People’s Republic of China. Our telephone number is (+86) 591-87590668.
Our principal executive office is located at E-Home, 18/F, East Tower, Building B, Dongbai Center, Yangqiao Road, Gulou District, Fuzhou City 350001, People’s Republic of China. Our telephone number is (+86) 591-87590668. E-Home’s registered office is on the 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman, KY1-1002, Cayman Islands.
Corporate History We were incorporated as an exempted company with limited liability under the laws of the Cayman Islands on September 24, 2018 to serve as a holding company for our PRC operations. On October 16, 2018, we established E-Home Household Service Holdings Limited as a wholly-owned subsidiary in Hong Kong.
ITEM 4. INFORMATION ON THE COMPANY A. History and Development of the Company Corporate History We were incorporated as an exempted company with limited liability under the laws of the Cayman Islands on September 24, 2018 to serve as a holding company for our PRC operations.
However, even if an applicant has the status as a “beneficiary owner,” if the competent tax authority finds necessity to apply the principal purpose test clause in the tax treaties or the general anti-tax avoidance rules stipulated in domestic tax laws, the general anti-tax avoidance provisions shall apply.
However, even if an applicant has the status of a “beneficiary owner,” if the competent tax authority finds it necessary to apply the principal purpose test clause in the tax treaties or the general anti-tax avoidance rules stipulated in domestic tax laws, the general anti-tax avoidance provisions shall apply. 40 Enterprise Income Tax In December 2007, the State Council promulgated the Implementing Rules of the Enterprise Income Tax Law, which became effective on January 1, 2008.
In most cases, the same cleaner will be assigned to the same customer so that they can build trust and long-term relationships with their customers to provide services with better quality. We highly value the standard of our housekeeping service and we constantly improve the service quality by building up our training system and regularly training our service providers.
We currently have more than 2,800 cleaners providing our housekeeping services. In most cases, the same cleaner will be assigned to the same customer so that they can build trust and long-term relationships with their customers to provide better-quality services of better quality.
We are cooperating with about 75 community doctors and have ordered approximately 153,500 smart wristwatches and leased 60 cars as well as 3 villas to support and develop our senior care services. With Guangzhou 100ecare we have developed a system, which is used in our services to help our customers monitor main health indicators like heart rate and blood pressure.
We are cooperating with about 75 community doctors and have ordered approximately 153,500 smart wristwatches and leased 60 cars, as well as 3 villas to support and develop our senior care services.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeYear Ended June 30, 2024 Year Ended June 30, 2023 Amount % of Revenue Amount % of Revenue Revenues Installation and Maintenance $ 29,773,730 58.74 $ 41,177,200 60.27 Housekeeping 15,409,924 30.40 17,210,122 25.19 Senior care services 4,025,456 7.95 6,515,953 9.54 Educational consulting services 1,257,045 2.48 1,050,397 1.53 Sales of pharmaceutical products 219,159 0.43 2,368,071 3.47 Total revenues 50,685,314 100.00 68,321,743 100.00 Total cost of revenues 37,984,718 74.94 49,764,098 72.84 Operating expenses Sales and marketing expenses 21,343,126 42.11 22,691,231 33.21 General and administrative expenses 7,443,170 14.69 26,230,966 38.39 Total operating expenses 28,786,296 56.80 48,922,197 71.60 Loss from operations (16,085,700 ) (31.74 ) (30,364,552 ) (44.44 ) Other income (expenses) Interest income 295,828 0.58 229,045 0.34 Interest expenses (556,328 ) (1.10 ) (791,749 ) (1.16 ) Accretion of financing cost (1,353,661 ) (2.66 ) (1,376,458 ) (2.01 ) Fair value loss – Financial instruments - - (3,747,100 ) (5.48 ) Other expenses net (1,746,567 ) (3.45 ) 94,900 0.14 Total other expenses (3,360,728 ) (6.63 ) (5,591,362 ) (8.17 ) Loss before income taxes (19,446,428 ) (38.37 ) (35,955,914 ) (52.61 ) Income tax expense (21,624 ) (0.04 ) (286,335 ) (0.42 ) Net loss $ (19,468,052 ) (38.41 ) $ (36,242,249 ) (53.03 ) Net loss attributable to non-controlling interests (80,923 ) (0.16 ) (1,235,410 ) (1.81 ) Net loss attributable to company shareholders (19,387,129 ) (38.25 ) (35,006,839 ) (51.22 ) Revenue.
Biggest changeYear Ended June 30, 2024 (reclassified) Year Ended June 30, 2023 (reclassified) Amount % of Revenue Amount % of Revenue Revenues Installation and Maintenance $ 29,773,730 59.00 $ 41,177,200 62.44 Housekeeping 15,409,924 30.54 17,210,122 26.09 Senior care services 4,025,456 7.98 6,515,953 9.88 Educational consulting services 1,257,045 2.48 1,050,397 1.59 Total revenues 50,466,155 100.00 65,953,672 100.00 Total cost of revenues 37,920,511 75.14 47,585,967 72.15 Operating expenses Sales and marketing expenses 21,315,481 42.24 22,448,015 34.04 General and administrative expenses 7,040,211 13.95 21,392,769 32.44 Total operating expenses 28,355,692 56.19 43,840,784 66.48 Loss from operations (15,810,048 ) (31.33 ) (25,473,079 ) (38.62 ) Other income (expenses) Interest income 295,828 0.59 229,045 0.35 Interest expenses (509,208 ) (1.01 ) (741,582 ) (1.12 ) Accretion of financing cost (1,353,661 ) (2.68 ) (1,376,458 ) (2.09 ) Fair value loss – Financial instruments - - (3,747,100 ) (5.68 ) Other expenses net (1,745,647 ) (3.46 ) 94,900 0.14 Total other expenses (3,312,688 ) (6.56 ) (5,541,195 ) (8.40 ) Loss before income taxes from continuing operations (19,122,736 ) (37.89 ) (31,014,274 ) (47.02 ) Income tax expense (21,624 ) (0.04 ) (286,335 ) (0.43 ) Net loss from continuing operations $ (19,144,360 ) (37.94 ) $ (31,300,609 ) (47.46 ) Net loss from discontinued operations (323,692 ) (0.64 ) (4,941,640 ) (7.49 ) Net loss (19,468,052 ) (38.58 ) (36,242,249 ) (54.95 ) Net loss attributable to non-controlling interests (80,923 ) (0.16 ) (1,235,410 ) (1.87 ) Net loss attributable to company shareholders (19,387,129 ) (38.42 ) (35,006,839 ) (53.08 ) Revenue.
The price of services is set by our company and the service provider is only responsible for collection of payments. When our end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay.
The price of services is set by our company, and the service provider is only responsible for the collection of payments. When our end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay.
We consider revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
We consider revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
Investing Activities Net cash provided by investing activities was $4,295,120 for the year ended June 30, 2024. Net cash used in investing activities for the year ended June 30, 2024 consisted of collection from related parties in the amount of $4,295,120. Net cash used in investing activities was $65,202,634 for the year ended June 30, 2023.
Net cash provided by investing activities was $4,295,120 for the year ended June 30, 2024. Net cash used in investing activities for the year ended June 30, 2024 consisted of collection from related parties in the amount of $4,295,120. Net cash used in investing activities was $65,202,634 for the year ended June 30, 2023.
Our online platform integrates these offline service providers, which helps them to gain a larger customer base, and provides professional and reliable one-stop household services to our customers. In July 2015, we successfully transitioned from an outsourcing after-market service provider of home appliances and building materials to an operator of home appliance services.
Our online platform integrates these offline service providers, which helps them to gain a larger customer base, and provides professional and reliable one-stop household services to our customers. 42 In July 2015, we successfully transitioned from an outsourcing after-market service provider of home appliances and building materials to an operator of home appliance services.
E-Home WFOE has not paid dividends and will not be able to pay dividends until it meets the requirements for statutory reserve funds. C. Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company—B. Business Overview—Intellectual Property.” D.
E-Home WFOE has not paid dividends and will not be able to pay dividends until it meets the requirements for statutory reserve funds. 53 C. Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company-B. Business Overview-Intellectual Property.” D.
Operating segments are reported in a manner consistent with the internal reporting provided to management for decision making. These operating segments are reviewed and strategic decisions are made on the basis of segmental profit margins. 50 Critical Accounting Policies The preparation of consolidated financial statements in conformity with U.S.
Operating segments are reported in a manner consistent with the internal reporting provided to management for decision making. These operating segments are reviewed, and strategic decisions are made on the basis of segmental profit margins. Critical Accounting Policies The preparation of consolidated financial statements in conformity with U.S.
Such decrease was because during the year ended June 30, 2023, we recorded the impairment losses for goodwill and intangible assets of $8,846,867 and $6,551,529, respectively, and depreciation and amortization expenses of $2,105,587 for property and equipment and intangible assets we acquired from business combinations.
Such a decrease was because during the year ended June 30, 2023, we recorded the impairment losses for goodwill and intangible assets of $8,846,867 and $6,551,529, respectively, and depreciation and amortization expenses of $2,105,587 for property and equipment and intangible assets we acquired from business combinations.
If our holding company in the Cayman Islands or any of our subsidiaries outside the PRC is considered as a PRC resident enterprise for tax purposes, then our global income will be subject to PRC enterprise income tax at the rate of 25%.
If our holding company in the Cayman Islands or any of our subsidiaries outside the PRC is considered a PRC resident enterprise for tax purposes, then our global income will be subject to PRC enterprise income tax at the rate of 25%.
Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the periods from June 30, 2023 to June 30, 2024 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the periods from June 30, 2024 to June 30, 2025 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
We consider whether the nature of its promise is a performance obligation to provide the specified goods or services ourselves (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent).
We consider whether the nature of its promise is a performance obligation to provide the specified goods ourselves (that is, the entity is a principal) or to arrange for the other party to provide those goods (that is, the entity is an agent).
Payments of dividends and capital in respect of the shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our ordinary shares, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax. 49 Hong Kong Our subsidiary incorporated in Hong Kong is subject to Hong Kong profit tax at a rate of 16.5%.
Payments of dividends and capital in respect of the shares will not be subject to taxation in the Cayman Islands, and no withholding will be required on the payment of a dividend or capital to any holder of our ordinary shares, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax. 43 Hong Kong Our subsidiary incorporated in Hong Kong is subject to Hong Kong profit tax at a rate of 16.5%.
We recorded income tax expenses of $21,624 for the year ended June 30, 2024, representing a decrease of $264,711, or 92.45%, as compared to $286,335 for the year ended June 30, 2023. The decrease in the income tax expense mainly resulted from the decrease in the losses before income taxes from our PRC subsidiaries. See also “—Taxation” above. Net loss.
We recorded income tax expenses of $21,624 for the year ended June 30, 2024, representing a decrease of $264,711, or 92.45%, as compared to $286,335 for the year ended June 30, 2023. The decrease in the income tax expense mainly resulted from the decrease in the losses before income taxes from our PRC subsidiaries. See also “—Taxation” above.
As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. We allocate the transaction price to each distinct product based on their relative standalone selling price.
As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. We allocate the transaction price to each distinct product based on its relative standalone selling price.
We provide integrated household services through our website and WeChat platform, “e 家快服” (“E-Home”), across 21 provinces in China. Currently, these services primarily include home appliance services, housekeeping services and senior care services. For our home appliance services, we partner with individuals and service stores which provide the technicians to deliver the on-site services.
We provide integrated household services through our website and WeChat platform, “e 家快服 ” (“E-Home”), across 21 provinces in China. Currently, these services primarily include home appliance services, housekeeping services, and senior care services. For our home appliance services, we partner with individuals and service stores that provide technicians to deliver the on-site services.
During the year ended June 30, 2024, we have partnerships with 1,700 individuals and service stores providing installation and maintenance services of home appliance and housekeeping services in China, which decreased approximately 15% comparing to 2,000 individuals and service stores for the year ended June 30, 2023.
During the year ended June 30, 2024, we have partnerships with 1,700 individuals and service stores providing installation and maintenance services of home appliances and housekeeping services in China, which decreased approximately 15% comparing to 2,000 individuals and service stores for the year ended June 30, 2023.
See “Risk Factors—Risks Related to Doing Business in China—There are significant uncertainties under the PRC Enterprise Income Tax Law relating to the withholding tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to enjoy certain treaty benefits.” Our Reportable Segments As of June 30, 2024, our operations are organized into four reportable segments: appliance installation and maintenance services, housekeeping services, senior care services, sales of pharmaceutical products and educational consulting services.
See “Risk Factors-Risks Related to Doing Business in China-There are significant uncertainties under the PRC Enterprise Income Tax Law relating to the withholding tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to enjoy certain treaty benefits.” Our Reportable Segments As of June 30, 2025, our operations are organized into four reportable segments: appliance installation and maintenance services, housekeeping services, senior care services, and educational consulting services.
Total other expenses, net, for the year ended June 30, 2023 consisted of interest expenses in the amount of $791,749, accretion of financing cost caused by Convertible Notes in the amount of $1,376,458, fair value loss of ordinary shares issued related to the potential acquisition of Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd.
Total other expenses, net, for the year ended June 30, 2023 consisted of interest expenses in the amount of $741,582, accretion of financing cost caused by Convertible Notes in the amount of $1,376,458, fair value loss of ordinary shares issued related to the potential acquisition of Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd.
We analyzed historical refund claims for defective products and concluded that they have been immaterial since we can return the goods returned from the customers to our suppliers. 53 Revenues are reported net of all VAT.
We analyzed historical refund claims for defective products and concluded that they have been immaterial since we can return the goods returned by the customers to our suppliers. Revenues are reported net of all VAT.
We do not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material effect on our consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows. 54 Results of Operations Comparison of Fiscal Years Ended June 30, 2024 and 2023 The following table shows key components of our results of operations during the years ended June 30, 2024 and 2023, in dollars and as a percentage of our total revenue.
We do not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material effect on our consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows. 47 Results of Operations Comparison of Fiscal Years Ended June 30, 2025 and 2024 (reclassified) The following table shows key components of our results of operations during the years ended June 30, 2025 and 2024, in dollars and as a percentage of our total revenue.
Such decrease was in line with our decreased revenue. Sales and marketing expenses. Our sales and marketing expenses consist primarily of remuneration for staff engaging in selling and marketing efforts, advertising cost, depreciation, travel and leasing expenses.
Such a decrease was in line with our decreased revenue. Sales and marketing expenses. Our sales and marketing expenses consist primarily of remuneration for staff engaging in selling and marketing efforts, advertising costs, depreciation, travel, and leasing expenses.
Our revenues are subject to value added tax (“VAT”). To record VAT payable, we use the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606.
Our revenues are subject to VAT. To record VAT payable, we use the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606.
The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Appliance installation& maintenance Appliance installation and maintenance services mainly consisting of the following services: appliance home installation and repair, maintenance and other after sale services.
The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Installation& maintenance Installation and maintenance services mainly consist of the following services: technical home installation and repair, maintenance, and other after sale services.
We act as principal and has contracts with third-party service providers (i.e., service outlets) who acts as agents. We are responsible for market development and providing the customer information to the service provider, directing the service provider to provide services and coordinating with the customer, while the service provider provides the door-to-door service.
We act as principal and have contracts with third-party service providers (i.e., service outlets) who act as agents. We are responsible for market development and providing the customer information to the service provider, directing the outlet to provide services, and coordinating with the customer, while the service provider provides the door-to-door service.
If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, we will communicate directly with the end customer. The service provider is not obligated to pay us.
If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, we will communicate directly with the end customer. The service provider is not obligated to pay our company.
For the year ended June 30, 2023, net cash used in operating activities mainly consisted of: net loss in the amount of $36,242,249, change in advance to suppliers in the amount of $1,102,585, change in operating lease liabilities in the amount of $729,571, change in taxes payable in the amount of $504,831, change in inventories in the amount of $144,611 and change in accounts receivables in the amount of $210,146, offset by impairment loss in the amount of $15,518,178, change in accounts payable and accrued expenses in the amount of $5,299,024, fair value loss of ordinary shares issued related to the acquisition of Lianbao and Youyou in the amount of $3,747,100, depreciation and amortization in the amount of $2,257,790, accretion of financing cost of Convertible Notes of $1,376,458, interest expenses in the amount of $791,749, amortization of right-of-use assets in the amount of $692,557, change in prepayments, deposits and other current assets in the amount of $475,241, income tax expense in the amount of $286,335 and shares issued to directors and consultants of $106,000.
For the year ended June 30, 2023, net cash used in operating activities mainly consisted of: net loss in the amount of $36,242,249, change in advance to suppliers in the amount of $1,102,585, change in operating lease liabilities in the amount of $729,571, change in taxes payable in the amount of $504,831, change in inventories in the amount of $144,611 and change in accounts receivables in the amount of $210,146, offset by impairment loss in the amount of $15,518,178, change in accounts payable and accrued expenses in the amount of $5,349,191, fair value loss of ordinary shares issued related to the acquisition of Lianbao and Youyou in the amount of $3,747,100, depreciation and amortization in the amount of $2,257,790, accretion of financing cost of Convertible Notes of $1,376,458, interest expenses in the amount of $741,582, amortization of right-of-use assets in the amount of $692,557, change in prepayments, deposits and other current assets in the amount of $475,241, income tax expense in the amount of $286,335 and shares issued to directors and consultants of $106,000. 52 Investing Activities Net cash used in investing activities was $32,373,518 for the year ended June 30, 2025.
We consider whether the nature of our promise is a performance obligation to provide the specified goods or services ourselves (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent).
We consider whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent).
We determine we are a principal and recognizes revenues at the gross amount received for the services. 52 Disaggregation of revenue from contracts with customers During the process of performing the installation and maintenance services, we also sell household appliance accessories such as air conditioner parts to its customers according to the customers’ needs.
We determine it is a principal and recognize revenues at the gross amount received for the services. Disaggregation of revenue from contracts with customers During the process of performing the installation and maintenance services, we also sell household appliance accessories such as air conditioner parts to its customers according to the customers’ needs.
We have also launched and are actively promoting our senior care services, but so far we have only generated a limited amount of revenue from these services. We plan to further expand our business to include smart community services, as well as sales of smart home supplementary merchandise.
We have also launched and are actively promoting our senior care services, but so far, we have only generated a limited amount of revenue from these services. We plan to further expand our business to include smart community services, as well as sales of smart home supplementary merchandise. We currently have approximately 527 employees to support our operations.
As a percentage of revenue, sales and marketing expenses increased from 33.21% for the year ended June 30, 2023 to 42.11% for the year ended June 30, 2024. General and administrative expenses. Our general and administrative expenses consist primarily of employee remuneration, professional fees, insurance, benefits, office leases, general office expenses, depreciation and amortization expenses and impairment losses.
As a percentage of revenue, sales and marketing expenses increased from 34.04% for the year ended June 30, 2023 to 42.24% for the year ended June 30, 2024. General and administrative expenses. Our general and administrative expenses consist primarily of employee remuneration, professional fees, insurance, benefits, office leases, general office expenses, depreciation and amortization expenses, and impairment losses.
Capital Expenditures We made capital expenditures of $7,400,320, $65,202,634 and $Nil during the years ended June 30, 2022, 2023 and 2024, respectively. In these periods, our capital expenditures were mainly used for purchases of property and equipment, including office equipment, electronic equipment and motor vehicles, and the right-of-use asset for Fuzhou Shoushan Waterfall Scenic Area.
Capital Expenditures We made capital expenditures of $292,327, Nil, and $65,202,634 during the years ended June 30, 2025, 2024, and 2023, respectively. In these periods, our capital expenditures were mainly used for purchases of property and equipment, including office equipment, electronic equipment, and motor vehicles, and the right-of-use asset for Fuzhou Shoushan Waterfall Scenic Area.
As a result of the cumulative effect of the factors described above, our net loss attributable to our shareholders decreased by $16,509,486, or 46.28%, to $19,468,052 for the year ended June 30, 2024 from $36,242,249 for the year ended June 30, 2023.
As a result of the cumulative effect of the factors described above, our net loss attributable to our shareholders decreased by $16,774,197, or 46.28%, to $19,468,052 for the year ended June 30, 2024 from $36,242,249 for the year ended June 30, 2023. 51 B.
Revenue from housekeeping services amounted to $15,409,924 for the year ended June 30, 2024, representing a decrease of $1,800,198, or 10.46%, from $17,210,122 for the year ended June 30, 2023. Revenue from housekeeping services accounted for 30.40% of our total revenue for the year ended June 30, 2024 as compared to 25.19% for the year ended June 30, 2023.
Revenue from housekeeping services amounted to $15,409,924 for the year ended June 30, 2024, representing a decrease of $1,800,198, or 10.46%, from $17,210,122 for the year ended June 30, 2023. Revenue from housekeeping services accounted for 30.54% of our total revenue for the year ended June 30, 2024 as compared to 26.09% for the year ended June 30, 2023.
For the year ended June 30, 2024, net cash used in operating activities mainly consisted of: net loss in the amount of $19,468,052, change in prepayments, deposits and other current assets in the amount of $203,057 due to increased prepayment for marketing fee and change in advance from customers in the amount of $1,651,589 due to decreased revenue from senior care services, offset by depreciation and amortization in the amount of $466,084, interest expenses in the amount of $556,328, accretion of financing cost of Convertible Notes of $1,353,661, amortization of right-of-use assets in the amount of $403,960, shares issued to management under share incentive plans in fair value of $3,690,860, change in long-term prepayments and other non-current assets in the amount of $2,019,217 due to collection of performance deposits from our former partners, and change in accounts payable and accrued expenses in the amount of $531,112 due to decreased purchase from our suppliers.
For the year ended June 30, 2024, net cash used in operating activities mainly consisted of: net loss in the amount of $19,468,052, change in prepayments, deposits and other current assets in the amount of $203,057 due to increased prepayment for marketing fee and change in contract liabilities in the amount of $1,651,589 due to decreased revenue from senior care services, offset by depreciation and amortization in the amount of $446,783, interest expenses in the amount of $509,208, accretion of financing cost of Convertible Notes of $1,353,661, amortization of right-of-use assets in the amount of $403,960, shares issued to management under share incentive plans in fair value of $3,690,860, change in long-term prepayments and other non-current assets in the amount of $2,019,217 due to collection of performance deposits from our former partners, and change in accounts payable and accrued expenses in the amount of $578,232 due to decreased purchase from our suppliers.
Senior care services Senior care services refer to services including heart rate test, daily steps count, location and track record, call for help by Wechat or phone, and other care services rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with us.
Senior care services Senior care services refer to services including BP, heart rate test, daily steps count, location and track record, call for help by WeChat or phone, and other care services, including nanny service rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees.
Financing Activities Net cash provided by financing activities was $36,629,254 for the year ended June 30, 2024 which consisted of net proceeds from issuance of ordinary shares in the amount of $35,733,560 and temporary loan from related parties of $1,444,930, offset by repayment of convertible note in the amount of $549,236. 60 Net cash provided by financing activities was $95,536,256 for the year ended June 30, 2023 which consisted of proceeds from issuance of ordinary shares in the amount of $92,979,677, proceeds from short-term loan of $1,402,203 and temporary loan from related parties of $1,630,511, offset by repayment of convertible note in the amount of $400,000 and payment for financial leases in the amount of $76,135.
Net cash provided by financing activities was $95,536,256 for the year ended June 30, 2023 which consisted of proceeds from issuance of ordinary shares in the amount of $92,979,677, proceeds from short-term loan of $1,402,203 and temporary loan from related parties of $1,630,511, offset by repayment of convertible note in the amount of $400,000 and payment for financial leases in the amount of $76,135.
We currently have approximately 528 employees to support our operations. 48 We also generate revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in PRC, and from providing educational consulting services to our customers through our subsidiaries that we acquired during the fiscal year ended June 30, 2023.
We also generate revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in the PRC, and from providing educational consulting services to our customers through our subsidiaries that we acquired during the fiscal year ended June 30, 2023.
Educational consulting services We also generate revenues from providing educational consulting services to customers. Revenues from educational consulting services are recognized at the time upon completion of services to the customer based on the relative selling price method.
Revenues from educational consulting services are recognized at the time upon completion of services to the customer based on the relative selling price method.
To minimize our risk, the service provider is required to remit payment of any outstanding receivables to us each month. Housekeeping services Housekeeping services refer to services including housecleaning, nanny service, maternity matron and personnel staffing. Revenues from housekeeping services are recognized at the time upon completion of services to the customer based on the relative selling price method.
To minimize our risk, the service provider will remit payment of any outstanding receivables each month. 45 Housekeeping services Housekeeping services refer to services including housecleaning, maternity matron, and personnel staffing. Revenues from housekeeping are generally recognized at a point in time upon completion of services to the customer based on the relative selling price method.
Total other expenses, net, for the year ended June 30, 2024 consisted of interest expense in the amount of $556,328, accretion of financing cost caused by Convertible Notes in the amount of $1,353,661, and other non-operating expenses (net of other non-operating income) of $1,746,567, offset by interest income in the amount of $295,828.
Total other expenses, net for the year ended June 30, 2024 consisted of interest expense in the amount of $509,208, accretion of financing cost caused by Convertible Notes in the amount of $1,353,661, and other non-operating expenses (net of other non-operating income) of $1,745,647, offset by interest income in the amount of $295,828. Income tax expense.
Revenues from installation and maintenance services are recognized at the time when the service is completed. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price.
Revenues from installation and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price.
Due to the weak economy and consumer spending in China, our overall revenue for the year ended June 30, 2024 decreased to approximately $50.69 million from approximately $68.32 million for the year ended June 30, 2023, representing a decrease of approximately 25.81%, and our net loss decreased to approximately $19.47 million from $36.24 million for the year ended June 30, 2023, representing a decrease in net loss of approximately 46.28%.
Due to the weak economy and consumer spending in China, our overall revenue for the year ended June 30, 2024 decreased to approximately $50.47 million (reclassified) from approximately $65.95 million (reclassified) for the year ended June 30, 2023, representing a decrease of approximately 23.48%, and our net loss decreased to approximately $19.47 million from $36.24 million for the year ended June 30, 2023, representing a decrease in net loss of approximately 46.28%.
Liquidity and Capital Resources As of June 30, 2024, we had cash, cash equivalents and restricted cash of $100,810,078. We finance our operations, working capital needs and strategic investments from cash generated through operations and through debt and equity financing.
Liquidity and Capital Resources As of June 30, 2025, we had cash, cash equivalents, and restricted cash of $173,031,872. We finance our operations, working capital needs, and strategic investments from cash generated through operations and through debt and equity financing.
We control the specified good before that good is transferred to its customers based on the following indicators: (1) we are primarily responsible for fulfilling the promise to provide the specified good, (2) we bear the inventory risk before or after (i.e., customer has a right of return) the specified good has been transferred to a customer, (3) we have discretion in setting the price for the specified good.
We control the specified good before that good is transferred to its customers based on the following indicators: (1) we are primarily responsible for fulfilling the promise to provide the specified good, (2) we bear the inventory risk before or after (i.e., customer has a right of return) the specified good has been transferred to a customer, (3) we have discretion in setting the price for the specified good. 46 In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled.
As a percentage of revenue, general and administrative expenses decreased from 38.39% for the year ended June 30, 2023 to 14.69% for the year ended June 30, 2024. Loss from operations.
As a percentage of revenue, general and administrative expenses decreased from 32.44% for the year ended June 30, 2023 to 13.95% for the year ended June 30, 2024. Loss from operations.
The following table sets forth a summary of our cash flows for the periods presented: For the Years Ended June 30, 2022 2023 2024 Net cash provided by (used in) operating activities $ 4,373,806 $ (8,405,064 ) $ (11,453,154 ) Net cash (used in) provided by investing activities (7,400,320 ) (65,202,634 ) 4,295,120 Net cash provided by financing activities 7,350,985 95,536,256 36,629,254 Net increase in cash, cash equivalents and restricted cash 4,324,471 21,928,558 29,471,220 Effect of currency translation $ (1,892,891 ) $ (5,518,230 ) $ 86,478 Cash, cash equivalents and restricted cash at beginning of the year 52,410,472 54,842,052 71,252,380 Cash, cash equivalents and restricted cash at end of the year 54,842,052 71,252,380 100,810,078 59 Operating Activities Net cash used in operating activities was $11,453,154 for the year ended June 30, 2024, as compared to net cash used in operating activities of $8,405,064 for the year ended June 30, 2023.
The following table sets forth a summary of our cash flows for the periods presented: For the Years Ended June 30, 2025 2024 2023 Net cash used in operating activities $ (3,535,895 ) $ (11,453,154 ) $ (8,405,064 ) Net cash (used in) provided by investing activities (32,373,518 ) 4,295,120 (65,202,634 ) Net cash provided by financing activities 108,657,801 36,629,254 95,536,256 Net increase in cash, cash equivalents and restricted cash 72,748,388 29,471,220 21,928,558 Effect of currency translation $ (526,594 ) $ 86,478 $ (5,518,230 ) Cash, cash equivalents and restricted cash at beginning of the year 100,810,078 71,252,380 54,842,052 Cash, cash equivalents and restricted cash at end of the year 173,031,872 100,810,078 71,252,380 Operating Activities Net cash used in operating activities was $3,535,895 for the year ended June 30, 2025, as compared to net cash used in operating activities of $11,453,154 for the year ended June 30, 2024.
We determine we are a principal and recognizes revenues at the gross amount received for the services.
We determine that we are a principal and recognize revenues at the gross amount received for the goods.
Sales of household appliance accessories and E-watches are recognized in revenue at a point in time while revenue from care service is recognized over a period. Sales of pharmaceutical products We also generate revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in PRC.
Sales of household appliance accessories and E-watches are recognized in revenue at a point in time, while revenue from care services is recognized over a period. Educational consulting services We also generate revenues from providing educational consulting services to customers.
We mainly generate revenue from providing installation and maintenance services, housekeeping services and senior care services to our customers. We also generate revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in PRC, and from providing educational consulting services to our customers.
We mainly generate revenue from providing installation and maintenance services, housekeeping services, and senior care services to our customers. We also generate revenues from providing educational consulting services to our customers.
See “Risk Factors—Risks Related to Doing Business in China—We may be treated as a resident enterprise for PRC tax purposes under the PRC Enterprise Income Tax Law, and we may therefore be subject to PRC income tax on our global income.” Value Added Tax Our revenue from installation services is subject to a value added tax, or VAT, rate of 11% and our revenue from maintenance services and sales of goods was subject to a VAT rate of 17% prior to May 1, 2018, which was subsequently reduced to 16%.
See “Risk Factors-Risks Related to Doing Business in China-We may be treated as a resident enterprise for PRC tax purposes under the PRC Enterprise Income Tax Law, and we may therefore be subject to PRC income tax on our global income.” Value Added Tax Our revenues from installation and maintenance services, housekeeping services, and senior care services, which are classified as household services industry, are subject to a value-added tax, or VAT, rate of 6%.
E. Critical Accounting Policies and Estimates Use of estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
E. Critical Accounting Policies and Estimates Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.
Our sales and marketing expenses decreased by $1,348,105, or 5.94%, to $21,343,126 for the year ended June 30, 2024 from $22,691,231 for the year ended June 30, 2023. Such decrease primarily due to the decreased marketing costs and promotion fee we paid to our service channels.
Our sales and marketing expenses decreased by $1,132,534, or 5.05%, to $21,315,481 for the year ended June 30, 2024 from $22,448,015 for the year ended June 30, 2023. Such a decrease is primarily due to the decreased marketing costs and promotion fees we paid to our service channels.
We consider whether the nature of its promise is a performance obligation to provide the specified goods ourselves (that is, the entity is a principal) or to arrange for the other party to provide those goods (that is, the entity is an agent). We determine we are a principal and recognizes revenues at the gross amount received for the goods.
The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent).
Our cost of revenue includes service fees paid to staff, channels, service providers and suppliers for the services rendered and the cost of accessories sold. Our cost of revenue decreased by $11,779,380, or 23.67%, from $49,764,098 for the year ended June 30, 2023 to $37,984,718 for the year ended June 30, 2024.
Our cost of revenue includes service fees paid to staff, channels, service providers, and suppliers for the services rendered and the cost of accessories sold. Our cost of revenue decreased by $9,665,456, or 20.31%, from $47,585,967 for the year ended June 30, 2023 to $37,920,511 for the year ended June 30, 2024.
Revenue from sales of pharmaceutical products and educational consulting services accounted for 3.47% and 1.54% of our total revenue for the year ended June 30, 2023, respectively. Cost of revenue . Our cost of revenue includes service fees paid to staff, outlets and suppliers for the services rendered and the cost of accessories sold.
Revenue from educational consulting services accounted for 2.16% and 2.48% of our total revenue for the years ended June 30, 2025 and 2024, respectively. 48 Cost of revenue . Our cost of revenue includes service fees paid to staff, channels, service providers, and suppliers for the services rendered and the cost of accessories sold.
The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue of the services provided. Revenues from the E-watch sold are recognized at the time when customers receive the E-watch and the revenues from the services provided are recognized over the service period.
The customers sign a contract for the services with our company. The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue from the services provided.
The adoption of ASC 606 did not have a material impact on the consolidated financial statements of our company. 51 We generate revenues primarily from appliance installation & maintenance services, housekeeping services, senior care services, sales of pharmaceutical products and educational consulting services. We sell our goods and services through a third-party service provider WeChat platform.
We generate revenues primarily from appliance installation & maintenance services, housekeeping services, senior care services, sales of pharmaceutical products, and educational consulting services. The sales of pharmaceutical products business have been discontinued since November 2024, as we disposed of our subsidiary Zhongrun. We sell our goods and services through a third-party service provider WeChat platform.
As a percentage of revenue, general and administrative expenses increased from 8.93% for the year ended June 30, 2022 to 38.39% for the year ended June 30, 2023. 58 Loss from operations.
As a percentage of revenue, general and administrative expenses decreased from 13.95% for the year ended June 30, 2024 to 12.12% for the year ended June 30, 2025. Loss from operations.
The increase of loss from operations was mainly due to the increase of sales and marketing expenses in the amount of $10,701,312 and increase of general and administrative expenses in the amount of $18,011,382. Total other income (expenses) .
The decrease in loss from operations was mainly due to the decrease in sales and marketing expenses in the amount of $7,982,072 and the decrease in general and administrative expenses in the amount of $1,051,719. Total other income (expenses), net .
We recorded total other expenses of $5,591,362 for the year ended June 30, 2023, as compared to total other expense of $2,483,148 for the year ended June 30, 2022.
Total other expenses . We recorded total other expenses of $3,312,688 for the year ended June 30, 2024, as compared to total other expenses of $5,541,195 for the year ended June 30, 2023.
As of June 30, 2024 and 2023, we had received and served about 227,015 and 203,910 senior care orders and customers. Revenue from senior care services accounted for 7.95% of our total revenue for the year ended June 30, 2024 as compared to 9.54% for the year ended June 30, 2023.
As of June 30, 2024 and 2023, we had received and served about 227,015 and 203,910 senior care orders and customers.
Revenue from installation and maintenance services accounted for 58.74% of our total revenue for the year ended June 30, 2024 as compared to 60.27% for the year ended June 30, 2023.
Revenue from senior care services accounted for 0.72% of our total revenue for the year ended June 30, 2025 as compared to 7.98% for the year ended June 30, 2024.
Revenue from installation and maintenance services increased by $1,159,238, or 2.90%, to $41,177,200 for the year ended June 30, 2023 from $40,017,962 for the year ended June 30, 2022. Revenue from installation and maintenance services accounted for 60.27% of our total revenue for the year ended June 30, 2023, as compared to 62.77% for the year ended June 30, 2022.
Revenue from installation and maintenance services decreased by $11,403,470, or 27.69%, to $29,773,730 for the year ended June 30, 2024 from $41,177,200 for the year ended June 30, 2023. Revenue from installation and maintenance services accounted for 59.00% of our total revenue for the year ended June 30, 2024 as compared to 62.44% for the year ended June 30, 2023.
In addition, we also generated revenues from sales of pharmaceutical products to our customers, which are mainly pharmaceutical stores in PRC, and from providing educational consulting services to our customers.
We determine that we are a principal and recognize revenues at the gross amount received for the services. Sales of pharmaceutical products We also generated revenues from sales of pharmaceutical products to its customers, which are mainly pharmaceutical stores in PRC.
Our general and administrative expenses consist primarily of employee remuneration, professional fees, insurance, benefits, office leases, general office expenses, depreciation and amortization expenses and impairment losses. Our general and administrative expenses increased by $18,011,382, or 219.13%, to $26,230,966 for the year ended June 30, 2023 from $8,219,584 for the year ended June 30, 2022.
As a percentage of revenue, sales and marketing expenses decreased from 42.24% for the year ended June 30, 2024 to 26.99% for the year ended June 30, 2025. General and administrative expenses. Our general and administrative expenses consist primarily of employee remuneration, professional fees, insurance, benefits, office leases, general office expenses, depreciation and amortization expenses, and impairment losses.
Such decrease was due to a decrease of $11,403,470 in revenue from installation and maintenance, a decrease of $1,800,198 in revenue from our housekeeping services, a decrease of $2,490,497 in revenue from our senior care services and a decrease of $2,148,912 in revenue from sales of pharmaceutical products. 55 Revenue from installation and maintenance services decreased by $11,403,470, or 27.69%, to $29,773,730 for the year ended June 30, 2024 from $41,177,200 for the year ended June 30, 2023.
Such decrease was due to a decrease of $11,403,470 in revenue from installation and maintenance, a decrease of $1,800,198 in revenue from our housekeeping services, and a decrease of $2,490,497 in revenue from our senior care services.
As a result of the foregoing, we recorded loss from operations of $16,085,700, representing a decrease of $14,278,852, or 47.02%, as compared to loss from operations of $30,364,552 for the year ended June 30, 2023.
As a result of the foregoing, we recorded a loss from operations of $8,268,826, representing a decrease of $7,541,222, or 47.70%, as compared to a loss from operations of $15,810,048 for the year ended June 30, 2024.
Our sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts, advertising cost, depreciation, travel and leasing expenses. Our sales and marketing expenses increased by $10,701,312, or 89.25%, to $22,691,231 for the year ended June 30, 2023 from $11,989,919 for the year ended June 30, 2022.
Our cost of revenue slightly increased by $429,370, or 1.13%, from $37,920,511 for the year ended June 30, 2024 to $38,349,881 for the year ended June 30, 2025. Sales and marketing expenses. Our sales and marketing expenses consist primarily of remuneration for staff engaging in selling and marketing efforts, advertising costs, depreciation, travel, and leasing expenses.
The accompanying consolidated financial statements include the financial statements of E-Home Household Service Holdings Limited and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation. Leases Leases are classified at lease commencement date as either a finance lease or an operating lease.
The accompanying consolidated financial statements include the financial statements of E-Home Household Service Holdings Limited and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation. 44 Leases From July 1, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-02, Lease (FASB ASC Topic 842).
Our general and administrative expenses decreased by $18,787,796, or 71.62%, to $7,443,170 for the year ended June 30, 2024 from $26,230,966 for the year ended June 30, 2023.
Our general and administrative expenses decreased by $14,352,558, or 67.09%, to $7,040,211 for the year ended June 30, 2024 from $21,392,769 for the year ended June 30, 2023.
Net cash provided by financing activities was $7,350,985 for the year ended June 30, 2022 which consisted of proceeds from issuance of Convertible Note in the amount of $8,445,000 and offset by payment of convertible note issuance cost in the amount of $1,094,015.
Net cash provided by financing activities was $36,629,254 for the year ended June 30, 2024 which consisted of net proceeds from issuance of ordinary shares in the amount of $35,733,560 and temporary loan from related parties of $1,444,930, offset by repayment of convertible note in the amount of $549,236.
Income tax expense. We recorded income tax expenses of $286,335 for the year ended June 30, 2023, representing a decrease of $1,807,741, or 86.33%, as compared to $2,094,076 for the year ended June 30, 2022. The decrease in the income tax expense mainly resulted from the decrease in the income before income taxes from our PRC subsidiaries.
We recorded income tax expenses of Nil for the year ended June 30, 2025, as compared to $21,624 for the year ended June 30, 2024. The decrease in the income tax expense mainly resulted from the decrease in the losses before income taxes from our PRC subsidiaries. See also “—Taxation” above. Net loss from continuing operations.
Revenue from housekeeping services amounted to $17,210,122 for the year ended June 30, 2023, representing an increase of $869,212, or 5.32%, $16,340,910 for the year ended June 30, 2022. Revenue from housekeeping services accounted for 25.19% of our total revenue for the year ended June 30, 2023, as compared to 25.63% for the year ended June 30, 2022.
Revenue from housekeeping services amounted to $15,861,366 for the year ended June 30, 2025, representing an increase of $451,442, or 2.93%, from $15,409,924 for the year ended June 30, 2024. Revenue from housekeeping services accounted for 32.11% of our total revenue for the year ended June 30, 2025 as compared to 30.54% for the year ended June 30, 2024.
In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to be entitled. We provide its customers with rights to return the sold goods for several days after the customers’ acceptance of the goods and can reasonably estimates return provision for the goods.
We provide our customers with the right to return the sold goods for several days after the customers’ acceptance of the goods and can reasonably estimate the return provision for the goods.
Our total revenue was $50,685,314 for the year ended June 30, 2024, representing a decrease of $17,636,429, or 25.81%, compared to $68,321,743 for the year ended June 30, 2023.
Our total revenue was $49,402,956 for the year ended June 30, 2025, representing a slight decrease of $1,063,199, or 2.11%, compared to $50,466,155 for the year ended June 30, 2024.
Net cash provided by operating activities was $4,373,806 for the year ended June 30, 2022, as compared to $8,670,915 for the year ended June 30, 2021.
Net cash used in operating activities was $11,453,154 for the year ended June 30, 2024, as compared to net cash used in operating activities of $8,405,064 for the year ended June 30, 2023.
The decrease of loss from operations was mainly due to the decrease of general and administrative expenses in the amount of $18,787,796. 56 Total other expenses . We recorded total other expenses of $3,360,728 for the year ended June 30, 2024, as compared to total other expense of $5,591,362 for the year ended June 30, 2023.
As a result of the foregoing, we recorded a loss from operations of $15,810,048, representing a decrease of $9,663,031, or 37.93%, as compared to the loss from operations of $25,473,079 for the year ended June 30, 2023. The decrease in loss from operations was mainly due to the decrease in general and administrative expenses in the amount of $14,352,558.
Comparison of Fiscal Years Ended June 30, 2023 and 2022 The following table shows key components of our results of operations during the years ended June 30, 2023 and 2022, in dollars and as a percentage of our total revenue.
As a result of the cumulative effect of the factors described above, our net loss attributable to our shareholders decreased by $16,326,147, or 83.86%, to $3,141,905 for the year ended June 30, 2025 from $19,468,052 for the year ended June 30, 2024. 49 Comparison of Fiscal Years Ended June 30, 2024 (reclassified) and 2023 (reclassified) The following table shows key components of our results of operations during the years ended June 30, 2024 and 2023, in dollars and as a percentage of our total revenue.
We determine we are a principal and recognizes revenues at the gross amount received for the services. Recent Accounting Pronouncements We consider the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued.
Recent Accounting Pronouncements We consider the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. In July 2024, the FASB issued ASU 2024-03, Income Statement — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.
See also “—Taxation” above. Net loss. As a result of the cumulative effect of the factors described above, our net loss attributable to our shareholders increased by $30,812,040, or 565.21%, to $36,242,249 for the year ended June 30, 2023 from $5,430,209 for the year ended June 30, 2022. B.
Net loss from continuing operations. As a result of the cumulative effect of the factors described above, our net loss from continuing operations decreased by $12,156,249, or 38.84%, to $19,144,360 for the year ended June 30, 2024 from $31,300,609 for the year ended June 30, 2023. Net loss from discontinued operations.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeWenshan Xie, Chief Executive Officer and Chairman of the Board, which shall vest in accordance with the schedule: 50% on the date of grant and 50% on July 9, 2024. 2024 Plan Administration . The E-Home Household Service Holdings Limited 2024 Omnibus Equity Plan (“2024 Plan”) requires that a committee of non-employee directors to administer the 2024 Plan.
Biggest changeThe E-Home Household Service Holdings Limited 2024 Omnibus Equity Plan (“2024 Plan”) requires that a committee of non-employee directors administer the 2024 Plan. Currently, our Compensation Committee, which we refer to hereafter as the Committee, administers the 2024 Plan. Shares Subject to the 2024 Plan.
Ye has served as our independent director since May 14, 2021. She has more than 20 years of extensive experience relating to financial analysis, accounting and financial management. Since 2009, Ms.
Ms. Ye has served as our independent director since May 14, 2021. She has more than 20 years of extensive experience relating to financial analysis, accounting, and financial management. Since 2009, Ms.
Subject to the provisions of regarding Ten Percent Shareholders, no Incentive Share Option shall be exercisable after the expiration of 10 years from the Grant Date.
Subject to the provisions regarding Ten Percent Shareholders, no Incentive Share Option shall be exercisable after the expiration of 10 years from the Grant Date.
A director may vote in respect of any contract, proposed contract, or arrangement notwithstanding that he may be interested therein, and if he/she does so his/her vote shall be counted and he may be counted in the quorum at any meeting of our directors at which any such contract or proposed contract or arrangement is considered.
A director may vote in respect of any contract, proposed contract, or arrangement, notwithstanding that he/she may be interested therein, and if he/she does so, his/her vote shall be counted, and he/she may be counted in the quorum at any meeting of our directors at which any such contract or proposed contract or arrangement is considered.
Duties of Directors Under Cayman Islands law, our directors have a fiduciary duty to our company to act honestly, in good faith and with a view to our best interests. Our directors also owe to our company a duty to act with skill and care.
Duties of Directors Under Cayman Islands law, our directors have a fiduciary duty to our company to act honestly, in good faith and with a view to our best interests. Our directors also owe our company a duty to act with skill and care.
The compensation committee is responsible for, among other things: ● reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; ● reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; ● reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and ● selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management.
The compensation committee is responsible for, among other things: ● reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; ● reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; ● reviewing periodically and approving any incentive compensation or equity plans, programs, or similar arrangements; and ● selecting a compensation consultant, legal counsel, or other adviser only after taking into consideration all factors relevant to that person’s independence from management.
On June 22, 2022, we granted an aggregate of 500,000 shares (without adjustment to effect the reverse stock split effected after the grant) to Wenshan Xie, chairman of the board and chief executive officer of the Company, under the 2022 Plan as compensation for his services. 2023 Plan The Board of Directors of the Company approved and adopted the Company’s 2023 Share Incentive Plan (the “2023 Plan”) on May 15, 2023.
On June 22, 2022, we granted an aggregate of 500,000 shares (without adjustment to effect the reverse stock split effected after the grant) to Wenshan Xie, chairman of the board and chief executive officer of the Company, under the 2022 Plan as compensation for his services. 56 2023 Plan The Board of Directors of the Company approved and adopted the Company’s 2023 Share Incentive Plan (the “2023 Plan”) on May 15, 2023.
The labor contract with our key personnel typically includes a standard non-compete covenant that prohibits the employee from competing with us, directly or indirectly, during his or her employment. It also has a standard confidentiality and intellectual property provision prohibiting employees from disclosing our confidential information obtained during the employment to any third party. E.
The labor contract with our key personnel typically includes a standard non-compete covenant that prohibits the employee from competing with us, directly or indirectly, during his or her employment. It also has a standard confidentiality and intellectual property provision prohibiting employees from disclosing our confidential information obtained during employment to any third party. 61 E.
Xie has served as a securities affairs representative of the Company since May 2021. Before joining the Company, Ms. Xie was the operating manager of Shanghai Xinggong Technology Co., Ltd. from June 2018 to April 2021. Ms. Xie graduated from Shanghai University of Political Science and Law in June 2018 with a Bachelor of Laws degree. Yijing Ye . Ms.
Xie has served as a securities affairs representative of the Company since May 2021. Before joining the Company, Ms. Xie was the operating manager of Shanghai Xinggong Technology Co., Ltd. from June 2018 to April 2021. Ms. Xie graduated from Shanghai University of Political Science and Law in June 2018 with a Bachelor of Laws degree. 54 Yijing Ye .
No family relationship exists between any of our directors and executive officers. There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any person referred to above was selected as a director or member of senior management. 62 B.
No family relationship exists between any of our directors and executive officers. There are no arrangements or understandings with major shareholders, customers, suppliers, or others pursuant to which any person referred to above was selected as a director or member of senior management. B.
The audit committee is responsible for, among other things: ● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; ● reviewing and approving all proposed related party transactions; ● meeting separately and periodically with management and the independent auditors; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. 66 Compensation Committee Our compensation committee consists of two directors, namely, Ms.
The audit committee is responsible for, among other things: ● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; ● reviewing with the independent auditors any audit problems or difficulties and management’s response; ● discussing the annual audited financial statements with management and the independent auditors; ● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; ● reviewing and approving all proposed related party transactions; ● meeting separately and periodically with management and the independent auditors; and ● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. 59 Compensation Committee Our compensation committee consists of two directors, namely, Ms.
On June 3, 2023, the Compensation Committee of the Board of the Company (the “Compensation Committee”) granted 2,600,000 shares in total (pre–September 2023 Reverse Stock Split, pre-February 2024 Reverse Stock Split and pre-September 2024 Reverse Stock Split) to officers, employees and directors under 2023 Plan.
On June 3, 2023, the Compensation Committee of the Board of the Company (the “Compensation Committee”) granted 2,600,000 shares in total (pre-September 2023 Reverse Stock Split, pre-February 2024 Reverse Stock Split, pre-September 2024 Reverse Stock Split, and pre-2025 Reverse Stock Split) to officers, employees, and directors under the 2023 Plan.
The Board of Directors of the Company adopted the 2024 Plan on May 20, 2024. On June 7, 2024, the Compensation Committee of the Board of the Company (the “Compensation Committee”) granted 3,000,000 shares (pre-September 2024 Reverse Stock Split) to six employees and officers of the Company under 2024 Plan. C.
The Board of Directors of the Company adopted the 2024 Plan on May 20, 2024. On June 7, 2024, the Compensation Committee of the Board of the Company (the “Compensation Committee”) granted 3,000,000 shares (pre-September 2024 Reverse Stock Split and pre-2025 Reverse Stock Split) to six employees and officers of the Company under the 2024 Plan. C.
The nominating and corporate governance committee is responsible for, among other things: ● selecting and recommending to the board nominees for election by the shareholders or appointment by the board; ● reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; ● making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and ● advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken.
The nominating and corporate governance committee is responsible for, among other things: ● selecting and recommending to the board nominees for election by the shareholders or appointment by the board; ● reviewing annually with the board the current composition of the board with regard to characteristics such as independence, knowledge, skills, experience, and diversity; ● making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and ● advising the board periodically with regard to significant developments in the law and practice of corporate governance, as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken.
We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our non-employee directors. Employment Agreements We have entered into employment agreements with each of our executive officers.
We have not set aside or accrued any amount to provide pension, retirement, or other similar benefits to our non-employee directors. 55 Employment Agreements We have entered into employment agreements with each of our executive officers.
Heung Ming Henry Wong, therefore we currently have a majority of our board of directors consisting of independent directors. A director is not required to hold any shares in our company to qualify to serve as a director.
Heung Ming Henry Wong; therefore, we currently have a majority of our board of directors consisting of independent directors. 58 A director is not required to hold any shares in our company to qualify to serve as a director.
Memorandum and Articles of Association - Differences in Corporate Law” for additional information on our standard of corporate governance under Cayman Islands law. 67 A director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors.
Memorandum and Articles of Association - Differences in Corporate Law” for additional information on our standard of corporate governance under Cayman Islands law. 60 A director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors.
Ms. Ye holds a master’s degree in financial engineering from Shanghai Jiao Tong University, a Master of law in economics from Wuhan University, and a Bachelor of Science degree in finance and banking from Shanghai University of Finance and Economics. Jianhua Wang . Mr. Wang has served as our independent director since May 14, 2021. Since 2009, Mr.
Ms. Ye holds a master’s degree in financial engineering from Shanghai Jiao Tong University, a Master of Laws in economics from Wuhan University, and a Bachelor of Science degree in finance and banking from Shanghai University of Finance and Economics. Jianhua Wang . Mr. Wang has served as our independent director since May 14, 2021. Since 2009, Mr.
The share number is pre-September 2022 Reverse Stock Split, pre-April 2023 Reverse Stock Split, pre–September 2023 Reverse Stock Split, pre-February 2024 Reverse Stock Split and pre-September 2024 Reverse Stock Split of the Company.
The share number is the pre-September 2022 Reverse Stock Split, pre-April 2023 Reverse Stock Split, pre-September 2023 Reverse Stock Split, pre-February 2024 Reverse Stock Split, pre-September 2024 Reverse Stock Split, and pre-2025 Reverse Stock Split of the Company.
Our directors are not subject to a term of office and hold office until such time as they are removed from office by ordinary resolution of the shareholders or until the expiration of his term or his successor has been elected and qualified.
Our directors are not subject to a term of office and hold office until such time as they are removed from office by ordinary resolution of the shareholders or until the expiration of their term or until their successor has been elected and qualified.
The total aggregate ordinary shares of the Company authorized for issuance during the term of the 2023 Plan is limited to 6,000,000 shares. The share number is pre September 2023 Reveres Stock Split, pre-February 2024 Reverse Stock Split and pre-September 2024 Reverse Stock Split.
The total aggregate ordinary shares of the Company authorized for issuance during the term of the 2023 Plan is limited to 6,000,000 shares. The share number is pre-September 2023 Reverse Stock Split, pre-February 2024 Reverse Stock Split, pre-September 2024 Reverse Stock Split, and pre-2025 Reverse Stock Split.
Share Ownership The following table sets forth information with respect to beneficial ownership of our share capital as of October 28, 2024 by: ● Each of our directors (including our director nominees) and named executive officers; ● All directors (including our director nominees) and named executive officers as a group; and ● Each person who is known by us to beneficially own 5% or more of each class of our voting securities.
Share Ownership The following table sets forth information with respect to beneficial ownership of our share capital as of October 29, 2025 by: ● Each of our directors (including our director nominees) and named executive officers; ● All directors (including our director nominees) and named executive officers as a group; and ● Each person who is known by us to beneficially own 5% or more of each class of our voting securities.
Director Compensation For the fiscal year ended June 30, 2024, the aggregate cash compensation that we paid to our independent directors was approximately $54,400 and we did not pay our executive directors for their services as directors.
Director Compensation For the fiscal year ended June 30, 2025, the aggregate cash compensation that we paid to our independent directors was approximately $114,400, and we did not pay our executive directors for their services as directors.
As of the of this report, all shares under 2022 Plan have been granted and outstanding and there is no share available for grant under the 2022 Plan. The following paragraphs summarize the terms of the 2022 Plan: Eligible Award Recipients .
As of the date of this report, all shares under the 2022 Plan have been granted and outstanding, and there are no shares available for grant under the 2022 Plan. The following paragraphs summarize the terms of the 2022 Plan: Eligible Award Recipients .
Function Number of Employees Management 8 Finance 24 Product Development 20 Human Resource Administration 25 Sales Center-Warehouse Logistics 10 Sales Center-Purchasing 8 Sales Center-Planning 15 Sales Center-Customer Service 71 Sales Center-Marketing 317 Sales Center-Senior Care Service 25 Sales Center-Housekeeping 5 Total 528 68 As required by laws and regulations in China, we contribute to various statutory employee benefit plans that are organized by municipal and provincial governments, including pension, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance plans as well as the housing provident fund.
Function Number of Employees Management 8 Finance 24 Product Development 20 Human Resource Administration 23 Sales Center-Warehouse Logistics 10 Sales Center-Purchasing 8 Sales Center-Planning 15 Sales Center-Customer Service 75 Sales Center-Marketing 319 Sales Center-Housekeeping 25 Total 527 As required by laws and regulations in China, we contribute to various statutory employee benefit plans that are organized by municipal and provincial governments, including pension, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance plans, as well as the housing provident fund.
NAME AGE POSITION Wenshan Xie 51 Chairman and Chief Executive Officer Chunsheng Zhu 59 Chief Financial Officer Chunming Xie 29 Director Yijing Ye 59 Independent Director Jianhua Wang 52 Independent Director Heung Ming Henry Wong 55 Independent Director Wenshan Xie . Mr. Xie is our founder and has served as our Chief Executive Officer and Chairman since May 23, 2019.
NAME AGE POSITION Wenshan Xie 52 Chairman and Chief Executive Officer Chunsheng Zhu 60 Chief Financial Officer Chunming Xie 30 Director Yijing Ye 60 Independent Director Jianhua Wang 53 Independent Director Heung Ming Henry Wong 56 Independent Director Wenshan Xie . Mr. Xie is our founder and has served as our Chief Executive Officer and Chairman since May 23, 2019.
D. Employees As of June 30, 2024, we had a total of 528 employees. The following table shows the number of our employees by function.
D. Employees As of June 30, 2025, we had a total of 527 employees. The following table shows the number of our employees by function.
Ordinary Shares Beneficially Owned Directors and Executive Officers: Number (1) Percent of Class (2) Wenshan Xie, Chairman and Chief Executive Officer 68,020 * % Chunsheng Zhu, Chief Financial Officer 100 * Chunming Xie, Director - * Yijing Ye, Independent Director 1 * Jianhua Wang, Independent Director 201 * Heung Ming Henry Wong, Independent Director - * All directors and executive officers as a group 68,322 * % * Less than 1%.
Ordinary Shares Beneficially Owned Directors and Executive Officers: Number (1) Percent of Class (2) Wenshan Xie, Chairman and Chief Executive Officer 307,361 * % Chunsheng Zhu, Chief Financial Officer 2 * Chunming Xie, Director - * Yijing Ye, Independent Director 1 * Jianhua Wang, Independent Director 4 * Heung Ming Henry Wong, Independent Director - * All directors and executive officers as a group 307,364 * % * Less than 1%.
(2) A total of 8,690,171 ordinary shares are considered to be outstanding pursuant to SEC Rule 13d-3(d)(1) as of October 28, 2024. None of our major shareholders have different voting rights from other shareholders. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company. 69
(2) A total of 20,003,859 ordinary shares are considered to be outstanding pursuant to SEC Rule 13d-3(d)(1) as of October 29, 2025. None of our major shareholders has different voting rights from other shareholders. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company. F.
Awards that may be granted under the Plan include: (a) Incentive Share Options, (b) Non-qualified Share Options, (c) Share Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards, and (f) Performance Compensation Awards. Authority of Committee .
Awards that may be granted under the Plan include: (a) Incentive Share Options, (b) Non-qualified Share Options, (c) Share Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards, and (f) Performance Compensation Awards. Authority of the Committee . The 2022 Plan shall be administered by the Committee or, in the Board’s sole discretion, by the Board.
The 2022 Plan shall be administered by the Committee or, in the Board’s sole discretion, by the Board. 63 Shares Subject to the 2022 Plan . Subject to adjustment, a total of 5,000,000 Ordinary Share (pre reverse splits as discussed above) shall be available for the grant of Awards under the 2022 Plan upon the adoption. Term .
Shares Subject to the 2022 Plan . Subject to adjustment, a total of 5,000,000 ordinary shares (pre-reverse splits as discussed above) shall be available for the grant of Awards under the 2022 Plan upon the adoption. Term .
On June 3, 2023, we granted 320,000 ordinary shares (pre 1 for 10 reverse split effected in September 2023, 1 for 5 reverse split effected in February 2024 and 1 for 10 reverse split effected in September 2024) to our independent directors. For the fiscal year ended June 30, 2023, we did not provide any compensation to our independent directors.
On June 3, 2023, we granted 320,000 ordinary shares (pre-1 for 10 reverse split effected in September 2023, 1 for 5 reverse split effected in February 2024, 1 for 10 reverse split effected in September 2024, and 1 for 50 reverse split effected on May 30, 2025) to our independent directors.
Currently, our Compensation Committee, which we refer to hereto as the Committee, administers the 2024 Plan. 64 Shares Subject to the 2024 Plan. The shares issuable under the 2024 Plan are our ordinary shares that are authorized but unissued or reacquired ordinary shares, including shares repurchased by the Company as treasury shares.
The shares issuable under the 2024 Plan are our ordinary shares that are authorized but unissued or reacquired ordinary shares, including shares repurchased by the Company as treasury shares.
Our board of directors may exercise all the powers of our company to borrow money, mortgage or charge its undertaking, property and uncalled capital, and to issue debentures, bonds and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third-party. 65 A director who is to his knowledge in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors.
Our board of directors may exercise all the powers of our company to borrow money, mortgage or charge its undertaking, property, and uncalled capital, and to issue debentures, bonds, and other securities whenever money is borrowed or as security for any debt, liability, or obligation of the company or of any third party.
Each of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee is comprised entirely of independent directors. From time to time, the Board may establish other committees. The Board has adopted a written charter for each of the Committees which are available on the corporate governance page of our website at www.ej111.com.
The Board has adopted a written charter for each of the Committees, which are available on the corporate governance page of our website at www.ej111.com .
The total aggregate ordinary shares of the Company authorized for issuance during the term of the 2024 Plan is limited to 3,000,000 ordinary shares. Types of Awards and Eligibility . The 2024 Plan provides for five types of awards and they are: Stock Options, Stock Appreciation Rights (“SAR”), Unrestricted Stock, Restricted Stock and Restricted Stock Units.
As of the date of this annual report, there are 0 ordinary shares available for issuance under the 2024 Plan. 57 Types of Awards and Eligibility . The 2024 Plan provides for five types of awards, and they are: Stock Options, Stock Appreciation Rights (“SAR”), Unrestricted Stock, Restricted Stock, and Restricted Stock Units.
Compensation Executive Compensation For the fiscal year ended June 30, 2024, the aggregate cash compensation and benefits that we paid to our executive officers was approximately $165,349.
Compensation Executive Compensation For the fiscal year ended June 30, 2025, the aggregate cash compensation and benefits that we paid to our executive officers were approximately $99,864. In addition to cash compensation, the Company granted share-based compensation to certain executive officers and directors under its share incentive plan.
Wenshan Xie, Chief Executive Officer and Chairman of the Board, which shall vest in accordance with the schedule: 50% on the date of grant and 50% on July 9, 2024.
On January 9, 2024, the Company granted 340,000 ordinary shares under the 2023 Plan to Mr. Wenshan Xie, Chief Executive Officer and Chairman of the Board, as compensation. The shares were subject to a vesting schedule of 50% on the date of grant and 50% on July 9, 2024.
On January 9, 2024, the Company granted 340,000 ordinary shares (pre-February 2024 Reverse Stock Split and pre-September 2024 Reverse Stock Split) under the 2023 Plan to Mr.
The total aggregate ordinary shares of the Company authorized for issuance during the term of the 2024 Plan is limited to 3,000,000 ordinary shares (pre-September 2024 Reverse Stock Split and pre-2025 Reverse Stock Split).
On January 9, 2024, the Company granted 340,000 ordinary shares (pre 1 for 5 reverse split effected in February 2024 and 1 for 10 reverse split effected in September 2024) under it Share Incentive Plan to Mr.
On January 9, 2024, the Company granted 340,000 ordinary shares (136 shares after giving effect to reverse stock splits on February 14, 2024, September 24, 2024 and May 30, 2025) to Mr. Wenshan Xie as compensation under its share incentive plan, at a fair value of $213,520 (par value of $68,000 and additional paid-in capital of $145,520).
Removed
On June 3, 2023, the Company granted 1,300,000 ordinary shares and 50,000 ordinary shares (pre 1 for 10 reverse split effected in September 2023, 1 for 5 reverse split effected in February 2024 and 1 for 10 reverse split effected in September 2024) to Mr. Wenshan Xie and Mr. Chunsheng Zhu under the 2023 Share Incentive Plan, respectively.
Added
On June 3, 2023, the Company granted 1,720,000 ordinary shares (69 shares after giving effect to reverse stock splits on September 25, 2023, February 14, 2024, September 24, 2024 and May 30, 2025) to its directors and officers as their compensations under its share incentive plan, at a fair value of $216,548 (par value of $34,400 and additional paid-in capital of $182,148).
Removed
Board Diversity Matrix The following table sets forth Board’s current level diversity statistics based on self-identification of members of our Board as of October 28, 2024. Board Diversity Matrix Country of Principal Executive Offices: P.R.
Added
After giving effect to reverse stock splits on February 14, 2024, September 24, 2024, and May 30, 2025, this grant represented 136 ordinary shares. The fair value of the grant was $213,520 (par value of $68,000 and additional paid-in capital of $145,520). 2024 Plan Administration .
Removed
China Foreign Private Issuer: Yes Disclosure Prohibited Under Home Country Law: No Total Number of Directors 5 Female Male Non-Binary Did Not Disclose Gender Part I: Gender Identity Directors 2 3 0 0 Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction 0 LGBTQ+ 0 Did Not Disclose Demographic Background 0 Board Committees The Board has established three standing committees: Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee.
Added
A director who is, to his knowledge, in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors.
Added
Board Committees The Board has established three standing committees: Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee. Each of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee is comprised entirely of independent directors. From time to time, the Board may establish other committees.
Added
Disclosure of Action to Recover Erroneously Awarded Compensation During and after the last completed fiscal year ended June 30, 2025, the Company was not required to prepare an accounting restatement, or any accounting restatement that required recovery of erroneously awarded compensation pursuant to the Company’s compensation recovery policy required by the Nasdaq listing rules, and there was no outstanding balance as of the end of the last completed fiscal year of erroneously awarded compensation to be recovered from the application of the policy to any prior restatement. 62

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

9 edited+2 added−2 removed0 unchanged
Biggest changeDirectors, Senior Management and Employees—B. Compensation of Directors and Executive Officers —Share Incentive Plans.” As of June 30, 2024 and 2023, the Company had $1,817,302 and $442,825 payable balances to Mr. Wenshan Xie, one of its major shareholders, for temporary working capital needs, respectively. As of June 30, 2024, the Company had $90,000 payable balance to Ms.
Biggest changeWenshan Xie, one of the major shareholders and Chief Executive Officer of the Company. For the year ended June 30, 2023, the Company transferred $4,295,120 to E-Home Group Limited for temporary lending. Due to related parties As of June 30, 2025 and 2024, the Company had $2,409,951 and $1,817,302 payable balances to Mr.
C. Interests of Experts and Counsel Not applicable.
C. Interests of Experts and Counsel Not applicable. 63
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Shareholders Please refer to Item 6 “Directors, Senior Management and Employees—E. Share Ownership.” B. Related Party Transactions Employment Agreements, Director Agreements and Indemnification Agreements See “Item 6. Directors, Senior Management and Employees—B. Compensation of Directors and Executive Officers—Employment Agreements, Director Agreements and Indemnification Agreements.” Share Incentives See “Item 6.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Shareholders Please refer to Item 6 “Directors, Senior Management and Employees-E. Share Ownership.” B. Related Party Transactions Employment Agreements, Director Agreements and Indemnification Agreements See “Item 6. Directors, Senior Management and Employees-B.
On June 3, 2023, the Company granted 1,720,000 ordinary shares of $0.02 par value per share (3,440 shares of par value $1 per share retrospectively adjusted for effect of reverse stock splits on September 25, 2023, February 14, 2024 and September 24, 2024) to its directors and officers as their compensations under the 2023 Share Incentive Plan at a fair value of $216,548 (par value of $34,400 and additional paid-in capital of $182,148).
On June 3, 2023, the Company granted 1,720,000 ordinary shares (69 shares after giving effect to reverse stock splits on September 25, 2023, February 14, 2024, September 24, 2024 and May 30, 2025) to its directors and officers as their compensations under its share incentive plan, at a fair value of $216,548 (par value of $34,400 and additional paid-in capital of $182,148).
Zhaodi Zeng, the wife of Mr. Wenshan Xie, for temporary working capital needs, respectively. As of June 30, 2024 and 2023, the Company had $1,247,396 and $1,249,387 payable balances to Ms. Ling Chen, a shareholder of Zhongrun, a major subsidiary of the Company, for temporary working capital needs, respectively. During the year ended June 30, 2024, Mr. Xie and Ms.
Zeng during the year ended June 30, 2024 for temporary working capital needs. As of June 30, 2024, the Company had $1,247,396 payable balance to Ms. Ling Chen, a shareholder of Zhongrun, a former major subsidiary of the Company. The payment was made by Ms. Chen during the year ended June 30, 2023 for temporary working capital needs.
Zeng made payments of $1,509,350 and $90,000 for temporary working capital needs of the Company and the Company repaid $141,055 to Mr. Xie. During the year ended June 30, 2023, Mr. Xie made payment of $624,385 for temporary working capital needs of the Company and the Company repaid $270,998 to Mr. Xie.
Wenshan Xie, one of the major shareholders and Chief Executive Officer of the Company, for temporary working capital needs, respectively. For the years ended June 30, 2025, 2024, and 2023, Mr. Xie made payments of $720,835, $1,509,350, and $624,385 for temporary working capital needs of the Company, respectively.
On June 22, 2022, the Company granted 520,000 ordinary shares (5 shares retrospectively adjusted for effect of reverse stock splits on September 23, 2022, April 12, 2023, September 25, 2023, February 14, 2024 and September 24, 2024) to its directors and officers as their compensations at a fair value of $167,700 (par value of $52 and additional paid-in capital of $167,648).
Shares issued to directors On January 9, 2024, the Company granted 340,000 ordinary shares (136 shares after giving effect to reverse stock splits on February 14, 2024, September 24, 2024 and May 30, 2025) to Mr. Xie as compensation under its share incentive plan, at a fair value of $213,520 (par value of $68,000 and additional paid-in capital of $145,520).
Xie made payment of $339,045 for temporary working capital needs of the Company and the Company repaid $29,514 to Mr. Xie. For the year ended June 30, 2023, the Company collected $4,295,120 from E-Home Group Limited. For the year ended June 30, 2023, the Company transferred $4,295,120 to E-Home Group Limited for temporary lending.
Lin for temporary lending and collected $73,963 from Mr. Lin. As of June 30, 2024 and 2023, the receivable balances due from related parties were Nil and $4,295,120, respectively. For the year ended June 30, 2024, the Company collected $4,295,120 from E-Home Group Limited, a company controlled by Mr.
During the year ended June 30, 2024, the Company repaid $13,365 to Mr. Chen. During the year ended June 30, 2023, Ms. Chen made payment of $1,277,124 for temporary working capital needs of the Company. During the year ended June 30, 2022, Mr.
For the year ended June 30, 2024, the Company repaid $13,365 to Mr. Chen. Upon disposal of Zhongrun in November 2024, Ms. Chen ceased to be a related party of the Company.
Removed
On January 9, 2024, the Company granted 340,000 ordinary shares of $0.2 par value per share ( 6,800 shares retrospectively adjusted for effect of reverse stock splits on February 14, 2024 and September 24, 2024) to Mr.
Added
Compensation of Directors and Executive Officers-Employment Agreements, Director Agreements and Indemnification Agreements.” Due from related parties As of June 30, 2025, the Company had $150,876 receivable balance from Mr. Jianying Lin, one of the major shareholders of the Company’s subsidiary Chuangying. For the year ended June 30, 2025, the Company transferred $224,839 to Mr.
Removed
Wenshan Xie as his compensation under the 2023 Share Incentive Plan at a fair value of $213,520 (par value of $68,000 and additional paid-in capital of $145,520).
Added
For the years ended June 30, 2025, 2024, and 2023, the Company repaid $128,186, $141,055, and $270,998 to Mr. Xie, respectively. As of June 30, 2025 and 2024, the Company had $90,000 and $90,000 payable balances to Ms. Zhaodi Zeng, the wife of Mr. Wenshan Xie, respectively. The payment was made by Ms.