E-Home Household Services Holdings Limited Enters into Memorandum of Understanding to Explore Acquisition of Leading Medicine and Personal Care Products Operator in China
E-Home Household Service Holdings Limited (Nasdaq: EJH) announced plans to acquire Zhongrun (Fujian) Pharmaceutical Co., Ltd., a prominent operator in China's medicine and personal care products sector. The acquisition is expected to be completed within two months. Zhongrun boasts an annual revenue exceeding RMB 100 million and provides drug development, sales, and medical equipment services. E-Home aims to enhance its household services by integrating pharmaceutical offerings, tapping into the growing health industry, and expanding its market presence in China and internationally.
- Acquisition of Zhongrun could enhance E-Home's service offerings by integrating pharmaceutical products.
- Zhongrun's established revenue stream of over RMB 100 million provides a strong financial foundation.
- Opportunity to expand market share in the health sector, leveraging existing household service network.
- None.
FUZHOU, China, April 11, 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, via its controlled subsidiary E-Home Household Service Holdings Limited, has entered into a Memorandum of Understanding (“MoU”) to explore the acquisition of Zhongrun (Fujian) Pharmaceutical Co., Ltd. (“Zhongrun”), a leading medicine and personal care products operator in China. E-Home expects the acquisition could be completed within the next two month.
Pursuant to the MoU, Zhongrun is engaged in 1) Drug development: research and development of new drugs, pharmaceutical excipients, medical devices, health supplements, and consultation services. 2) Drug sales: new and special drug varieties, concentrated drug decoction pieces, proprietary Chinese traditional medicines, chemical pharmaceutical preparations, antibiotic APIs, antibiotic preparations, biological products, etc. 3) Medical equipment: Class I medical equipment, washing and nursing supplies. 4) Special food: Prepackaged food, special food (infant formula food, infant formula milk powder, formula food for special medical purpose, health food) for which Zhongrun has advanced office, storage and logistics self-distribution system.
Zhongrun also has great customer base that ranges from public and private hospitals, county-level health centers, clinics and pharmacy chains. It operates via both online and offline sales to serve the target clients, and has achieved an annual sales of over RMB 100 million yuan, according to the MoU.
Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: “We look forward to welcoming Zhongrun to E-Home and joining our current household services network in China, as medicine, medical care, and nursing supplies are becoming part of the big health industry and are also necessities of home life. The pharmaceutical industry has become the focus of competition among economic powers. Many countries regard the establishment of the pharmaceutical industry as a symbol of national prosperity. In this era, the pharmaceutical industry will develop more steadily, together with Zhongrun we can bring healthy food and nursing supplies through door-to-door service via our current home service network in China, which is also an effective strategy for us to expand our current market share and service capabilities in China. Entering the big health industry through Zhongrun acquisition, we could also sell drugs and health supplements to the international market from Hong Kong.”
“E-Home and Zhongrun share a strong commitment to similar core values, which makes Zhongrun a natural fit for us. This combination will result in increased customer satisfaction with our core household service offerings and more opportunities for all our businesses as we seek to automate and digitalize services through our metaverse initiatives.”
About Zhongrun (Fujian) Pharmaceutical Co., Ltd.
Founded in 2017 with RMB 100 million registered capital, Zhongrun (Fujian) Pharmaceutical Co., Ltd. operates as a drug wholesaler and logistics distributor specializing in all kinds of traditional (patent) Chinese medicines, antibiotics. It also trades prepackaged food and infant formula/formula milk powder products and other health supplements, personal care such as washing products across China.
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.
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: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)
FAQ
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