Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 77

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4
Chunk 77
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 discretion to award incentives and rewards to eligible participants. 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. 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
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, no less than 10% of the accumulated profits of the foreign investment
enterprises in the PRC are required to be allocated to fund certain reserve funds each year unless these reserves have reached 50% of
the registered capital of the enterprises. A PRC company is not permitted to distribute any profits until any losses from previous fiscal
years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current
fiscal year. 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. See “ Risk Factors-Risks Related to Doing Business
in China-We rely to a significant extent on dividends and other distributions on equity paid by our operating PRC subsidiaries to fund
offshore cash and financing requirements.”

Regulations Relating to Overseas Listings

On August 8, 2006, six PRC regulatory agencies,
including the Ministry of Commerce, the State-Owned Assets Supervision and Administration Commission, the State Administration of Taxation,
the State Administration for Industry and Commerce, the China Securities Regulatory Commission and the State Administration of Foreign
Exchange, jointly