Company: EJH
Filing Date: 2025-08-11
Form Type: 424B5
Source: 0001213900-25-074324
Chunk: 85

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-08-11
Form: 424B5
Chunk 85
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 However, loans by E-Home
to its PRC subsidiaries to finance their activities cannot exceed statutory limits and must be registered with the local counterpart of
the State Administration of Foreign Exchange and capital contributions to its PRC subsidiaries are subject to the requirement of making
necessary filings in the Foreign Investment Comprehensive Management Information System, and registration with other governmental authorities
in China.

The State Administration of Foreign Exchange promulgated
the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement of Capital of
Foreign-invested Enterprises, or Circular 19, effective on June 1, 2015, in replacement of the Circular on the Relevant Operating Issues
Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign- Invested Enterprises,
the Notice from the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration of Foreign
Exchange Businesses, and the Circular on Further Clarification and Regulation of the Issues Concerning the Administration of Certain Capital
Account Foreign Exchange Businesses. According to Circular 19, the flow and use of the RMB capital converted from foreign currency-denominated
registered capital of a foreign-invested company is regulated such that RMB capital may not be used for the issuance of RMB entrusted
loans, the repayment of inter-enterprise loans or the repayment of bank loans that have been transferred to a third party. Although Circular
19 allows RMB capital converted from foreign currency-denominated registered capital of a foreign-invested enterprise to be used for equity
investments within the PRC, it also reiterates the principle that RMB converted from the foreign currency-denominated capital of a foreign-invested
company may not be directly or indirectly used for purposes beyond its business scope. Thus, it is unclear whether the State Administration
of Foreign Exchange will permit such capital to be used for equity investments in the PRC in actual practice. The State Administration
of Foreign Exchange promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign
Exchange Settlement Management Policy of Capital Account, or Circular 16, effective on June 9, 2016, which reiterates some of the rules
set forth in Circular 19, but changes the prohibition against using RMB capital converted from foreign currency-denominated registered
capital of a foreign-invested company to issue RMB entrusted loans to a prohibition against using such capital to grant loans to non-associated
enterprises. Violations of Circular