Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 28

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 3
Chunk 28
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 subject to significant uncertainty
and are based on assumptions and estimates that may not prove to be accurate. The forecasts contained in this annual report may prove
to be inaccurate. Even if these markets experience the forecasted growth described in this annual report, we may not grow our business
at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which
is subject to many risks and uncertainties. Accordingly, the forecasts of market growth included in this annual report should not be taken
as indicative of our future growth.

Increase in labor costs in the PRC may adversely
affect our business and results of operations.

In recent years, the Chinese economy has experienced
inflationary and labor cost increases. Average wages are projected to continue to increase. Further, under PRC law, we are required to
pay various statutory employee benefits, including basic pension insurance, housing fund, basic medical insurance, work-related injury
insurance, unemployment insurance, and maternity insurance to designated government agencies for the benefit of our employees. The relevant
government agencies may examine whether an employer has made adequate payments to the statutory employee benefits, and those employers
who fail to make adequate payments may be subject to late payment fees, fines, and/or other penalties. We expect that our labor costs,
including wages and employee benefits, will continue to increase. If we are unable to control our labor costs or pass such increased labor
costs on to our customers by increasing the fees of our products and services, our financial condition and results of operations may be
adversely affected.

We do not have any business insurance coverage.

Insurance companies in China currently do not
offer as extensive an array of insurance products as insurance companies in more developed economies. Currently, we do not have any business
liability or disruption insurance to cover our operations. We have determined that the costs of insuring these risks and the difficulties
associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such insurance. Any uninsured
business disruptions may result in substantial costs and the diversion of resources, which could have an adverse effect on our results
of operations and financial condition.

We have material weaknesses in our internal
control over financial reporting. If any material weakness persists or if we fail to establish and maintain effective internal control
over financial reporting, our ability to accurately report our financial results could be adversely affected.

In connection with the preparation of the financial
statements included in this annual report on Form 20-F for the