E-Home Household Services Holdings Limited Develops Cleaning Robot Equipment Leasing Business

Rhea-AI Summary

E-Home Household Service Holdings Limited (Nasdaq: EJH) has launched a new cleaning robot equipment leasing department aimed at enhancing its cleaning service business in China. The initiative involves importing advanced cleaning robots from Japan and the USA, which is expected to lower labor costs and improve market share. The company anticipates this new segment to generate approximately $15 million in revenue and around $3 million in net income for 2022. CEO Wenshan Xie highlighted this move as a response to the growing demand for improved cleaning services amid rising operational costs.

Positive

• Launch of a cleaning robot equipment leasing department to enhance service offerings.
• Expected revenue contribution of approximately $15 million and net income of $3 million in 2022.
• Utilization of high-tech cleaning robots to reduce labor costs and improve profitability.

Negative

• None.

FUZHOU, China, Jan. 19, 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 has set up a cleaning robot equipment leasing department in the cleaning service sector, highlighting to promote the growth of the Company’s cleaning service business.

The specific measures reveal in the cleaning robot equipment leasing department include:

• Import the high-tech cleaning robot equipment from Japan and the United States
• Improve market share and reduce labor cost of cleaning service business by the robot equipment
• Achieve multiple simultaneous use of the robot equipment by leasing the robot equipment to small and medium-sized enterprises
• Achieve an integration effect between robot equipment and cleaning service industry
• Use capital investment to improve the profitability of the robot equipment leasing business
• By robot equipment leasing business, E-Home access the cutting-edge technology of cleaning robot equipment, to improve its technological innovation ability
• Combine real lecturers and virtual lecturers by the metaverse technology, to provide the online training for the cleaning staff from time to time
• Establish a cleaning robot equipment technology docking group to ensure that traditional cleaning industry can improve profitability through technological innovation

Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: “At present, with the improvement of office and home environment requirements, cleaning business is increasing year by year. However, the profits of most traditional cleaning companies are dragged down by cleaning equipment, labor costs, and outdoor personnel risks. Based on this, the Company decided at the recent 2022 business strategy meeting to set up a cleaning robot equipment leasing department. The new business segment will greatly reduce the operating cost of the cleaning department of the Company and improve the profit margin. In addition, with the support of high-tech robot equipment, it will also bring customers a brand new consumption experience, encourage and guide them to spread good corporate reputation information, so as to obtain a continuous competitive advantage in the industry. The new business is expected to contribute approximately $15 million in revenue and approximately $3 million in net income to the Company in 2022.”

Mr. Xie continued: “In this special period, this new project shows our determination to actively develop new businesses segment, and our innovation ability to flexibly respond to the market competition pressures. We believe that our strong technological innovation capabilities and diversified service strategies will drive our business to significant growth. At the same time, we look forward to offering customers more solutions in the future and further expanding our marketing channels."

About E-Home Household Service Holdings Limited

E-Home Household Service Holdings Limited is a household service company based in Fuzhou, China. The Company, through its website and WeChat platform "e家快服", provides integrated household services, including appliance installation and maintenance, housekeeping services, and Internet based home and senior care. For more information, visit the Company's website at http://www.ej111.com/ir.html. 

Forward-Looking Statements

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.

FAQ

What is the new business initiative announced by E-Home on Jan 19, 2022?

E-Home announced the launch of a cleaning robot equipment leasing department to enhance its cleaning service business.

How much revenue does E-Home project from its new robot leasing department?

E-Home expects the new robot leasing department to contribute approximately $15 million in revenue for 2022.

What are the expected net income figures for E-Home in 2022 from its new initiative?

The expected net income from the new cleaning robot equipment leasing department is around $3 million for 2022.

What technologies is E-Home leveraging in its new cleaning service?

E-Home is importing advanced cleaning robots from Japan and the USA to improve its cleaning service efficiency.