E-Home Household Services Holdings Limited Announces Strategic Business Plan and Partnership with China Top Traditional Chinese Medicine Company Zhejiang Huisong Pharmaceutical Co. Ltd.

Rhea-AI Summary

E-Home Household Service Holdings Limited (Nasdaq: EJH) announced a strategic plan via its subsidiary Zhongrun (Fujian) Pharmaceutical Co., Ltd. to enhance market coverage and diversify medical products in Fujian, China. The company aims to transition from wholesale to retail operations through online and offline channels. A partnership with Zhejiang Huisong Pharmaceutical Co. Ltd. is expected to yield annual sales of approximately RMB 20 million, focusing on epidemic prevention and influenza drugs. This initiative aims to bolster profitability amid health crises.

Positive

• New partnership with Zhejiang Huisong Pharmaceutical Co. Ltd. to distribute epidemic prevention drugs, potentially generating RMB 20 million in sales.
• Strategic plan to expand into retail markets and online sales networks, aimed at increasing market coverage and product offerings.

Negative

• None.

FUZHOU, China, Oct. 21, 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’s subsidiary Zhongrun (Fujian) Pharmaceutical Co., Ltd. (“Zhongrun”) has outlined new strategic business plan to expand market coverage and medical product offerings via online and offline sales networks in Fujian province, China. Zhongrun also reached partnership with top traditional Chinese medicine (“TCM”) company Zhejiang Huisong Pharmaceutical Co. Ltd. (“Huisong”).

Pursuant to the business plan, Zhongrun will expand from the existing pharmaceutical wholesale business to the retail market through both offline and online sales channels. Zhongrun will initiate in-depth cooperation with offline pharmaceutical chain stores and with major online pharmaceutical e-commerce platforms. At the same time, Zhongrun also plans to enter into the upstream production and processing business of pharmaceuticals, healthcare products and devices, to build up its own brand or original equipment manufacturer (OEM) model.

Pursuant to the partnership with Huisong, Zhongrun will help supply and distribute epidemic prevention and influenza drugs such as herba houttuyniae electuaries in China Fujian province produced by Huisong, one of the top 10 TCM exporters in China. The partnership is expected to generate annual sales of about RMB 20 million.

Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: “Our new attempt to enter into the upstream processing and manufacturing industries of pharmaceuticals and healthcare products industry chain will also help the Company to further improve its profitability amid the Covid-19 epidemic and the upcoming influenza season. In addition to the new revenue stream from partnership with Huisong, we also expect that the newly launched pharmaceutical e-commerce cooperation project to generate additional sales of about RMB20 million in the next 12 months. We are thrilled to announce partnership with China’s top TCM company Huisong to jointly develop our businesses in Fujian, which is another recognition to our strong local sales network and business operation.”

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, confinement nurse 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, confinement nurse, 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

FAQ

What is E-Home's new strategic plan?

E-Home's new strategic plan involves expanding market coverage and medical product offerings in Fujian, transitioning from wholesale to retail through online and offline channels.

How much revenue is expected from the partnership with Huisong?

The partnership with Huisong is expected to generate approximately RMB 20 million in annual sales.

What products will Zhongrun focus on with the new strategy?

Zhongrun will focus on epidemic prevention and influenza drugs as part of its new strategy.

When was E-Home Household Service Holdings Limited established?

E-Home was established in 2014 and is based in Fuzhou, China.

What is the stock symbol for E-Home Household Service Holdings Limited?

The stock symbol for E-Home is EJH.