Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 21

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 3
Chunk 21
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 financial results we expect. Furthermore, acquisitions could result in the use of substantial amounts of cash, potentially
dilutive issuances of equity securities, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible
assets, and exposure to potential unknown liabilities of the acquired business. Moreover, the costs of identifying and consummating acquisitions
may be significant. We may also have to obtain approvals and licenses from the relevant government authorities in the PRC for the acquisitions
and to comply with any applicable PRC laws and regulations, which could result in increased costs and delay.

Our expansion into new services, technologies,
and geographic regions may expose us to new challenges and more competitive risks.

We may have limited or no experience in our newer
market segments, such as senior care services and pharmaceutical devices and products distribution, and our customers may not adopt our
new service and product offerings. These service and product offerings may present new and difficult technology challenges, and we may
be subject to claims if customers of these service and product offerings experience quality issues or other issues. In addition, profitability,
if any, in our newer activities may be lower than in our older activities, and we may not be successful enough in these newer activities
to recoup our investments in them. If any of this were to occur, it could damage our reputation, limit our growth, and negatively affect
our operating results.

If we are unable to conduct marketing activities
cost-effectively, or if our customer acquisition costs increase or costs associated with serving our customers increase, our results of
operations and financial condition may be materially and adversely affected.

We have incurred significant expenses on a variety
of advertising and brand promotion initiatives designed to enhance our brand recognition and acquire new customers. We incurred $13,333,409,
$21,258,915, and $22,691,231 in sales and marketing expenses in fiscal years ended June 30, 2025, 2024, and 2023, respectively. We expect
to continue to spend significant amounts to acquire additional customers and retain existing customers, primarily through advertising
and brand promotion initiatives. 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.

Our decisions regarding investments in customer
acquisition are based