FUZHOU, China, Jan. 21, 2022 (GLOBE NEWSWIRE) — E-Home Household Service Holdings Limited (Nasdaq: EJH) (the “Company” or “E-Home”), an integrated home service provider in China, announced today announced that the Company and its wholly owned subsidiary E-Home (Pingtan) Home Service Co., Ltd. (“E-Home Pingtan”) entered into a capital transfer agreement (the “Agreement A”) with Putian YouYou Cleaning Co., Ltd. (“YouYou”) and its individual shareholder to acquire 60% of the shares of YouYou from Wang Guoqing, who owns 100% of the shares of YouYou, a professional cleaning and property management company in China.
Meanwhile, the Company and E-Home Pingtan have also entered into another share transfer agreement (the “Agreement B”) with Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. (“LianBao”) and its shareholders (collectively, the “Sellers”) to acquire 40% of the shares of LianBao from the Sellers, a Chinese home appliance services company.
YouYou is a leading cleaning service provider and a member company of Fujian Province Cleaning Industry Association. YouYou is equipped with high-end cleaning equipment including cleaning cars, cleaning robots and waste transport vehicles. YouYou’s customers range from government institutions, mega-factories to households and office buildings and with years of experience and a highly professional team, YouYou has become a widely and highly reputed cleaning service provider in the province of Fujian.
LianBao is a well-established home appliance after-sales service provider and one of the first companies to launch a self-developed high-tech Internet+ service platform that improves customer coverage and its connectivity. LianBao’s software-as-a-service platform works through various channels, including WeChat, APP and PC, to connect home appliance manufacturers, sales agents, e-commerce platforms, hotels and other related parties which cover a network of more than 3,000 districts across China. LianBao is also one of the largest after-sales service platforms in southern China with more than 100,000 registered repairers and more than 30,000 home appliance enterprise customers.
According to Agreement A, Mr. Wang will transfer 60% stake in YouYou to E-Home Pingtan for a total amount of RMB 36 million, of which RMB 4 million will be paid in cash and the remaining RMB 32 million will be paid by the Society. in the form of the issue of 2,702,826 common shares at an issue price per share equal to 120% of the average of the closing price of the Nasdaq for 20 consecutive trading days preceding January 11, 2022, i.e. 1.86 $. YouYou recorded revenue of RMB 25 million and net profit of RMB 2.25 million in the fiscal year ended December 31, 2021.
The Sellers will transfer 40% stake in LianBao to E-Home Pingtan to ensure that E-Home Pingtan appoints at least two-thirds of the board members of LianBao in accordance with Agreement B. The consideration for the transfer of capital will be paid by the Company in the form of the issuance of a total of 5,823,363 ordinary shares, as determined by the quotient of the division of the purchase price of 63.2 million RMB (approximately 9.93 million dollars) by the price per share equal to 110% of the average of the Nasdaq closing price during the twenty consecutive trading days preceding January 11, 2022, i.e. $1.705.
LianBao achieved revenue of RMB 70 million and net profit of RMB 4.95 million in the fiscal year ended December 31, 2021.
Mr. Wenshan Xie, President and CEO of E-Home, said, “We are delighted to announce two additions to our existing beneficial ecosystem of appliance repair, home cleaning and maintenance services. , as we seek to diversify and expand our scope of business. both through organic growth and through deals when the right moment arises. Our goal is to create a legacy brand that meets the ever-changing needs of our customers, and we are glad that LianBao and YouYou share this same vision which is uniquely capable of helping us achieve our goals.
“In both partnerships, we provide the expertise, resources and infrastructure to together become a household name globally. We will continue to seek acquisition opportunities that advance our expansion strategy and strengthen our market competitiveness. »
About Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd.
Shenzhen Chinese Enterprises Industrial LianBao Appliance Service Co., Ltd. has a fully paid up registered capital of more than 13 million RMB. It is mainly engaged in the on-site installation and after-sales repair of household appliances, bathroom appliances, electrical appliances and hardware.
About Putian YouYou Cleaning Co., Ltd.
Putian YouYou Cleaning Co.,Ltd. is based in Putian, Fujian Province, with a registered capital of RMB 10 million. Its main business scope includes professional cleaning, disinfection, building cleaning services, parking lots and other property management, etc.
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 installation and maintenance of household appliances, housekeeping services and home and elderly care on the Internet. For more information, visit the company’s website at http://www.ej111.com/ir.html.
All statements other than statements of historical facts contained in this announcement are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and are based on expectations and projections of 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 “, “continues”, “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 events or circumstances, or changes in its expectations, except as 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 prove to be correct, and the Company cautions investors that actual results may differ materially from anticipated results and encourages investors to consider risk factors, including those described in the Company’s filings with the SEC, that could 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.