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

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 3
Chunk 30
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 difficult for us to find
qualified persons to serve on our board of directors or as executive officers. 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.

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. The ES Act was effective January 1, 2019 and
applies in respect of financial years commencing in 2019 and onwards. 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. 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. The Chinese government may intervene or influence our PRC subsidiaries’
operations at any time, which could result in a material adverse change in our PRC subsidiaries’ operations and in the value of
our securities.

Substantially all of our operations are conducted
in the PRC by our PRC subsidiaries, and all of our revenue is sourced from the PRC. Accordingly, our financial condition and results of
operations are affected to a significant extent by economic, political, and legal developments in the PRC.

Economies among countries worldwide differ. The
PRC government has implemented various measures to encourage economic growth and to guide the allocation of resources. Some of these measures
may benefit the overall PRC economy but may also have a negative effect on us. Our financial condition and results of operations, and
the value of our securities, could be materially and adversely affected by government control over capital investments or changes in tax
regulations that are applicable to us. In addition, there