Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 75

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4
Chunk 75
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 Vehicles, or Circular 37, which became effective in July 2014, to replace the Circular of the State Administration of Foreign
Exchange on Issues Concerning the Regulation of Foreign Exchange in Equity Finance and Roundtrip Investments by Domestic Residents through
Offshore Special Purpose Vehicles, to regulate foreign exchange matters in relation to the use of special purpose vehicles by PRC residents
or entities to seek offshore investment and financing or conduct round trip investment in China. Circular 37 defines a “special
purpose vehicle” as an offshore entity established or controlled, directly or indirectly, by PRC residents or entities for the purpose
of seeking offshore financing or making offshore investment, using legitimate onshore or offshore assets or interests, while “round
trip investment” is defined as direct investment in China by PRC residents or entities through special purpose vehicles, namely,
establishing foreign-invested enterprises to obtain the ownership, control rights and management rights. 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, 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.

PRC residents or entities that 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.
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. Failure to comply with the registration procedures set forth in Circular
37 and the subsequent notice, or making misrepresentation on or failure to disclose controllers of the foreign-invested enterprise that
is established through round-trip investment, may result in restrictions being imposed on the foreign exchange activities of the relevant
foreign-invested enterprise,