FUZHOU, China - E-Home Household Services Holdings Limited (NASDAQ:EJH), a Nasdaq-listed integrated home services provider in China, announced a planned merger of its subsidiary, Zhongrun (Fujian) Pharmaceutical Co., Ltd., with New Zealand-based NBL Pharmaceuticals (New Zealand) Limited. The merger, intended for completion in December, aims to expand the company's overseas market and improve its competitiveness.
NBL Pharmaceuticals, situated in Auckland, operates advanced, fully automated production lines in a facility that adheres to international and New Zealand manufacturing standards. The company specializes in health care products including fish oil, vitamins, and anti-aging supplements.
Mr. Wenshan Xie, Chairman and CEO of E-Home, stated that the cooperation agreement is a strategic response to the company's international expansion goals and will bring new business opportunities. He emphasized that the merger will create a diverse healthcare drug portfolio and strengthen the synergy between Chinese and international resources.
E-Home, established in 2014, offers a range of household services through its website and WeChat platform. It has developed a business model catering to individual consumers and business clients, including the integration of metaverse technology for customer service and training domestic workers.
The press release also contained forward-looking statements regarding the company's expectations for the merger's impact on its financial and operational future. These statements are subject to risks and uncertainties, and the company advises that actual results may differ from those anticipated.
The information in this article is based on a press release statement from E-Home Household Services Holdings Limited.
In other recent news, E-Home Household Services Holdings Limited has launched its second-generation AI intelligent housekeeping customer service, eJia AI. This enhanced service aims to bolster the company's competitive edge through features such as automated task processing and data analysis for improved decision support. E-Home anticipates that this technology will lead to reduced costs, heightened operational efficiency, and increased customer satisfaction.
In addition, E-Home secured cleaning service contracts worth over 6 million yuan with property companies, including Golden Emperor Properties. This signifies the trust customers place in E-Home's services. Furthermore, the company has announced the launch of its AI intelligent domestic customer service, which operates round the clock. This service is designed to enhance E-Home's home economics class franchise SAAS platform and facilitate live broadcasting capabilities for sales and promotional activities.
These recent developments underscore E-Home's innovative approach in the household service industry and its ongoing efforts to enhance its market presence.
InvestingPro Insights
As E-Home Household Services Holdings Limited (NASDAQ:EJH) embarks on its strategic merger with NBL Pharmaceuticals, it's worth noting that the company's financial health and stock performance are essential factors for investors. According to InvestingPro data, EJH has a market capitalization of $9.65 million, reflecting a relatively small player within the market. The company's Price / Book multiple, as of the last twelve months ending Q2 2024, stands at a low 0.07, which could suggest that the stock is undervalued relative to its book value.
However, EJH's financial performance shows challenges, with a significant revenue decline of 17.73% over the last twelve months as of Q2 2024. This is further highlighted by a quarterly revenue drop of 30.69% in Q2 2024. Moreover, the company's operating income margin is deeply negative at -60.49%, indicating that expenses far exceed revenues. These figures underscore the importance of strategic initiatives like the merger with NBL Pharmaceuticals to potentially bolster EJH's financial standing and market position.
InvestingPro Tips for EJH note that the stock has taken a substantial hit over the last week, month, and six months, with price total returns diminishing significantly. The stock is also characterized by high volatility, which might be a concern for risk-averse investors. On the positive side, EJH holds more cash than debt, which can provide some financial flexibility, and the stock's RSI suggests it is in oversold territory, potentially indicating a buying opportunity for contrarian investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on EJH, which could provide further insights into whether the company's current valuation and stock performance align with its long-term potential, especially in light of its international expansion efforts. Visit https://www.investing.com/pro/EJH to explore these insights and consider how the merger with NBL Pharmaceuticals may influence EJH's trajectory.
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