Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 155

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 11
Chunk 155
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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Our exposure to interest rate risk primarily relates
to the interest expenses incurred on bank borrowings, income generated by excess cash, and net proceeds from equity financings, which
are mostly held in interest-bearing bank deposits. Interest-earning instruments carry a degree of interest rate risk. We have not been
exposed to material risks due to changes in interest rates, and we have not used any derivative financial instruments to manage our interest
risk exposure. However, our future interest income may fall short of expectations due to changes in market interest rates.

Investments in both fixed rate and floating rate
interest earning instruments carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted
due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.

Foreign Exchange Risk

All of our revenue and substantially all of our
expenses are denominated in RMB. Our exposure to foreign exchange risk primarily relates to cash and cash equivalents denominated in U. S.
dollars. We do not believe that we currently have any significant direct foreign exchange risk and have not used derivative financial
instruments to hedge exposure to such risk. Although our exposure to foreign exchange risks should be limited in general, the value of
your investment in our ordinary shares will be affected by the exchange rate between the U. S. dollar and RMB because the value of our
business is effectively denominated in RMB, while our shares will be traded in U. S. dollars.

The conversion of RMB into foreign currencies,
including U. S. dollars, is based on rates set by the People’s Bank of China. The value of RMB is subject to changes in central government
policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System
market.

To the extent that we need to convert U. S. dollars
into RMB for our operations, appreciation of the RMB against the U. S. dollar would have an adverse effect on the RMB amount we receive
from the conversion. Conversely, if we decide to convert RMB into U. S. dollars for the purpose of making payments for dividends on our
ordinary shares or for other business purposes, appreciation of the U. S. dollar against the RMB would have a negative effect on the U. S.
dollar amounts available to us