E-Home Household Service Holdings Limited Starts Supplying Raw Ingredients for Traditional Chinese Medicine via Acquisition of Majority Stake in Zhongrun (Fujian) Pharmaceutical Co., Ltd.

Rhea-AI Summary

E-Home Household Service Holdings Limited (Nasdaq: EJH) recently acquired a 55% stake in Zhongrun (Fujian) Pharmaceutical Co., Ltd., a drug wholesaler specializing in traditional Chinese medicine. This strategic acquisition aims to expand E-Home's market presence in the health sector by supplying key herbal ingredients and partnering with healthcare institutions across China. The CEO highlighted the growing interest in traditional medicine, suggesting significant revenue potential for the company. E-Home expects this move to enhance its supply chain capabilities and foster business performance.

Positive

• Acquisition of 55% stake in Zhongrun enhances market presence in traditional Chinese medicine.
• Partnership expansion with hospitals and clinics may lead to increased sales.
• Access to herbal ingredients has potential health benefits, aligning with market trends.

Negative

• None.

FUZHOU, China, July 26, 2022 (GLOBE NEWSWIRE) -- E-Home Household Service Holdings Limited (Nasdaq: EJH) (the "Company" or "E-Home"), a provider of integrated household services in China, today announced that the Company starts suppling raw ingredients for traditional Chinese medicine via acquisition of majority ownership in Zhongrun (Fujian) Pharmaceutical Co., Ltd. (“Zhongrun”).

E-Home announced on July 22 that the Company has acquired 55% of equity interests in Zhongrun, which operates as a drug wholesaler and logistics distributor specializing in all kinds of traditional (patent) Chinese medicines, antibiotics, dietary supplements and medical devices.

Zhongrun has entered and will seek to expand partnership with hospitals, clinics and drug stores in China to grow sales and also supply key herb ingredients for the production of specialized Chinese medicines that are rooted in ancient knowledge and principles.

Some of the ingredients provided by Zhongrun have been used for thousands of years as key herbs in traditional Chinese medicine, which may have health effects, such as lowering blood pressure, alleviating cold and flu symptoms, reducing pain and enhancing immune system against contagious diseases.

Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: “Chinese traditional medicine has a long history. With more Chinese people exploring new health trends, we believe traditional Chinese medicine products with health-preserving and healthcare effects have significant growing potential. The acquisition of Zhongrun gives E-Home opportunities to enter into the big health and Chinese medicinal products industry. We will leverage our advantages to provide our clients with effective and high-quality supply chain and healthcare services. Meanwhile the expanded sales of Chinese traditional medicine products will also help safeguard our Company’s business performance.”

About E-Home Household Service Holdings Limited

Established in 2014, E-Home Household Service Holdings Limited is a Nasdaq-listed household service company based in Fuzhou, China. The Company, through its website and WeChat platform "e家快服", provides integrated household services, including 1) installation and maintenance of home appliances and smart homes; 2) Housekeeping, nanny, sister-in-law and cleaning services; 3) Internet elderly care + home-based elderly care; 4) Hospital care; 5) Nanny delivery platform.

After years of development, the Company has formed two main services and four auxiliary services targeting at individual consumers (ToC) and business clients (ToB). 1) The ToC business focuses on nanny, sister-in-law, home-based elderly care and cleaning, and family comprehensive service supplemented by other housekeeping services. At present, it has successfully connected with metaverse technology to realize metaverse-based customer service as well as training of domestic workers. The ToB business focuses on public cleaning and cleaning robotic equipment. Four auxiliary services include 1) docking and application of metaverse technology to housekeeping and cleaning industries; 2) online and offline sales of medicine and health food (including nannies and nursing workers); 3) training on nannies and nursing workers to engage in health care in physical stores; 4) human resources (flexible employment).

E-Home has become a modern enterprise of comprehensive service for family life. The Company always adheres to the business philosophy of "solving every issue of customers with heart", and to the code of conduct of "doing everything well with heart". The Company aims to set the benchmark of the household service industry. For more information, visit the Company's website at http://www.ej111.com/ir.html.

Forward-Looking Statement

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors.

For more information, please contact:

Chunming Xie

Investor Relations

Email: xcm@ej111.com

Phone: +86 15359908086

Janice Wang

EverGreen Consulting Inc.

Email: IR@changqingconsulting.com

Phone: +1 470-940-3308 (from U.S.)

+86 13811768559 (from China)

FAQ

What is the significance of EJH's acquisition of Zhongrun?

The acquisition allows EJH to enter the traditional Chinese medicine market, expanding its services and potential revenue.

How much equity did EJH acquire in Zhongrun?

EJH acquired a 55% equity interest in Zhongrun.

What are the expected benefits of the acquisition for EJH?

The acquisition is expected to enhance sales through partnerships with healthcare providers and improve the company's supply chain.

When was the acquisition of Zhongrun announced?

The acquisition was announced on July 22, 2022.

How does the acquisition impact EJH's business strategy?

The acquisition aligns with EJH's strategy to provide integrated household services and enter the health and wellness sector.