Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 143

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 10
Chunk 143
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ated and became effective on
June 9, 2016. According to SAFE Circular 16, enterprises registered in the PRC may also convert their foreign debts from foreign currency
into Renminbi at the enterprise’s discretion. SAFE Circular 16 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. SAFE Circular 16 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 in the PRC, unless otherwise
specifically provided. 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.

On January 26, 2017, SAFE promulgated theCircular
on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness and Compliance Verification, or SAFE Circular
3, 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. Moreover, pursuant to SAFE Circular 3, domestic entities must explain in detail the
sources of capital and how the capital will be used, and provide board resolutions, contracts, and other proof as part of the registration
procedure for outbound investment.

On October 25, 2019, SAFE promulgated theNotice
on Further Facilitating Cross-Board Tradeand Investment, which became effective on the same date (except for Article 8.2 thereof).
The notice removed restrictions on the capital equity investment in China by non-investment foreign-invested enterprises. In addition,
restrictions on the use of funds for foreign exchange settlement of domestic accounts for the realization of assets have been removed
and restrictions on the use and foreign exchange settlement of foreign investors’ security deposits have been relaxed. Eligible
enter