E-Home Household Service Holdings Limited (NASDAQ:EJH) (the “Company” or “E-Home”), a provider of integrated household services in China, today announced that its affiliated variable interest entity, Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (“E-Home Pingtan”) had entered into (i) an equity transfer agreement to acquire 33% equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“Happiness Yijia”) in cash; (ii) an equity transfer agreement to acquire 100% equity interests of Fujian Jin Ri Dao Jia Technology Co., Ltd. (“Jin Ri Dao Jia”) in cash; and (iii) an equity transfer agreement to acquire 55% equity interests of Fujian Zhi Xie Education Technology Development Co., Ltd. (“Zhi Xie Education”) and 55% equity interests of Fuzhou Ju Shang Enterprise Management Consulting Co., Ltd. (“Ju Shang Enterprise”) in cash.
E-Home Pingtan currently owns 67% equity interests of Happiness Yijia. Formed in 2015, Happiness Yijia is a renowned provider of nanny and maternity matron services in Fuzhou City, China and one of the largest household services companies in Fujian Province, China. Upon the closing of the acquisition, E-Home Pingtan will own 100% equity interests of Happiness Yijia.
Jin Ri Dao Jia is a well-known home services platform in Fujian Province, China that focuses on “Internet + Service” and provides B2B2C household services. The acquisition of 100% equity interests of Jin Ri Dao Jia is anticipated to incorporate Jin Ri Dao platform and house cleaning business into E-Home’s network, complement and enhance E-Home’s housekeeping segment, and accelerate the implementation of the Company’s strategy of “Internet + Household + Senior Care.”
Zhi Xie Education and Ju Shang Enterprise are engaged in the business of corporate talent education and provide business leaders with training and consulting with respect to various fields of business management, including equity incentives, fiscal and tax management and business models. Zhi Xie Education was recognized as a National High-Tech Enterprise in 2019. Zhi Xie Education, through online and in-person programs, helps management of small and medium enterprises (SMEs) gain a better understanding of business management. The Company expects to strengthen and expand its in-house training system, via the acquisition of 55% equity interests of each of Zhi Xie Education and Ju Shang Enterprise. With E-home’s current venues, system and related supports for training services, E-home will build the integrated training site covering both household services staffs and corporate management talents.
Wenshan Xie, Chairman and Chief Executive Officer of the Company, commented, “We believe that with the recent three-child policy, the demand for child care, housekeeping and other household services will further rise, and our acquisitions of stakes in the four companies will help further expand our household services and enable us to better seize the opportunities brought by the three-child policy.”
