Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 201

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 201
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 liabilities, and such assessment inherently involves an exercise of judgment.
There are no known commitments or contingencies as of June 30, 2025 and 2024.

Concentration of risks

Exchange rate risks

The Company’s Chinese subsidiaries may be
exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between
the U. S. Dollar and the RMB. As of June 30, 2025 and 2024, the RMB denominated cash and cash equivalents amounted to $173,009,847and
$100,782,851, respectively.

F-18

Currency convertibility risks

Substantially all of the Company’s operating
activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place
either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted
by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions
requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and
signed contracts.

Concentration of credit risks

Financial instruments that potentially subject
the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which
stated on the consolidated balance sheets represented the Company’s maximum exposure. The Company places its cash and cash equivalents
in good credit quality financial institutions in China.

Risks and uncertainties

The operations of the Company are located in the
PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic,
and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected
by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations
and believes that it is in compliance with existing laws and regulations, including its organization and structure disclosed in Note 1,
this may not be indicative of future results.

Recent accounting pronouncements

The Company considers the applicability and impact
of all ASUs. Management periodically reviews new accounting standards that are issued.

In July 2024, the FASB issued ASU 2024-03, Income
Statement - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.