Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | E-Home Household Service Holdings Limited |
Trading Symbol | EJH |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Entity Common Stock, Shares Outstanding | 33,581,556 |
Amendment Flag | false |
Entity Central Index Key | 0001769768 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40375 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Floor 9, Building 14, HaixiBaiyue Town |
Entity Address, Address Line Two | No. 14 Duyuan Road, Luozhou Town |
Entity Address, City or Town | Fuzhou City |
Entity Address, Postal Zip Code | 350001 |
Entity Address, Country | CN |
Contact Personnel Name | Wenshan Xie |
Title of 12(b) Security | Ordinary Shares, par value $0.0001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | Floor 9, Building 14, HaixiBaiyue Town |
Entity Address, Address Line Two | No. 14 Duyuan Road, Luozhou Town |
Entity Address, City or Town | Fuzhou City |
Entity Address, Postal Zip Code | 350001 |
Entity Address, Country | CN |
Contact Personnel Name | Wenshan Xie |
City Area Code | +86-591 |
Local Phone Number | 87590668 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 52,410,472 | $ 25,022,199 |
Accounts receivable | 826,683 | 1,774,792 |
Inventories | 246,778 | 11,692 |
Prepayments, deposits and other current assets | 12,282,665 | 1,891,869 |
Total current assets | 65,766,598 | 28,700,552 |
Non-current assets | ||
Property, plant and equipment, net | 303,488 | 53,042 |
Intangible assets, net | 36,031 | 43,041 |
Operating lease – right-of-use assets, net | 4,262,736 | 5,951,588 |
Finance lease – right-of-use assets, net | 1,346,728 | 1,398,404 |
Long-term prepayments and other non-current assets | 1,934,955 | 4,449,467 |
Deferred income tax assets | 704,262 | 353,097 |
Total non-current assets | 8,588,200 | 12,248,639 |
TOTAL ASSETS | 74,354,798 | 40,949,191 |
Current liabilities | ||
Accounts payable and accrued expenses | 4,357,553 | 2,973,141 |
Advance from customers | 2,993,656 | 1,414,345 |
Taxes payable | 2,220 | 8,025 |
Current maturities of operating lease liabilities | 87,103 | 199,011 |
Current maturities of finance lease liabilities | 59,098 | 51,353 |
Total current liabilities | 7,499,630 | 4,645,875 |
Long-term portion of operating lease liabilities | 2,147,252 | 3,117,124 |
Long-term portion of finance lease liabilities | 442,670 | 457,867 |
TOTAL LIABILITIES | 10,089,552 | 8,220,866 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively | 3,359 | 2,800 |
Additional paid-in capital | 25,542,531 | 3,667,957 |
Statutory reserve | 664,100 | 664,100 |
Retained earnings | 36,804,282 | 31,059,450 |
Accumulated other comprehensive income (loss) | 1,298,015 | (1,967,388) |
Total equity attributable to E-Home shareholders | 64,312,287 | 32,762,819 |
Non-controlling interest | (47,041) | (34,494) |
TOTAL SHAREHOLDERS’ EQUITY | 64,265,246 | 32,728,325 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 74,354,798 | $ 40,949,191 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, issued | 33,581,556 | 28,000,000 |
Ordinary shares, outstanding | 33,581,556 | 28,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | |||
Total revenues | $ 74,525,434 | $ 46,200,949 | $ 51,149,326 |
Cost of revenues | |||
Total cost of revenues | 48,311,398 | 30,101,072 | 31,771,326 |
Gross profit | 26,214,036 | 16,099,877 | 19,378,000 |
Operating expenses | |||
Sales and marketing expenses | 10,279,274 | 7,514,211 | 4,101,960 |
General and administrative expenses | 6,869,419 | 1,114,984 | 1,554,523 |
Total operating expenses | 17,148,693 | 8,629,195 | 5,656,483 |
Income from operations | 9,065,343 | 7,470,682 | 13,721,517 |
Other income (expense) | |||
Interest income | 110,889 | 103,388 | 61,686 |
Interest expense | (25,509) | (26,447) | (22,021) |
Government subsidy | 908,051 | ||
Foreign currency exchange income (loss) | 13,749 | (1,040) | (23,675) |
Total other income | 1,007,180 | 75,901 | 15,990 |
Income before income taxes | 10,072,523 | 7,546,583 | 13,737,507 |
Income tax expense | (3,672,624) | (1,898,575) | (3,565,146) |
Net income | 6,399,899 | 5,648,008 | 10,172,361 |
Net income attributable to shareholders | 6,408,932 | 5,649,451 | 10,233,775 |
Net income attributable to non-controlling interests | (9,033) | (1,443) | (61,414) |
Net income | 6,399,899 | 5,648,008 | 10,172,361 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment, net of nil tax | 3,261,889 | (837,040) | (729,348) |
Total comprehensive income | $ 9,661,788 | $ 4,810,968 | $ 9,443,013 |
Net income per ordinary share - basic and diluted (in Dollars per share) | $ 0.22 | $ 0.2 | $ 0.37 |
Weighted average number of ordinary shares outstanding—basic and diluted (in Shares) | 28,650,632 | 28,000,000 | 28,000,000 |
Installation and maintenance | |||
Revenues | |||
Total revenues | $ 51,546,235 | $ 32,220,898 | $ 40,460,351 |
Cost of revenues | |||
Total cost of revenues | 32,209,179 | 19,484,927 | 23,702,317 |
Housekeeping | |||
Revenues | |||
Total revenues | 16,792,722 | 11,704,899 | 10,505,072 |
Cost of revenues | |||
Total cost of revenues | 13,435,869 | 8,901,973 | 8,069,009 |
Senior care services | |||
Revenues | |||
Total revenues | 6,038,814 | 2,060,833 | |
Cost of revenues | |||
Total cost of revenues | 2,666,350 | 1,714,172 | |
Sublease | |||
Revenues | |||
Total revenues | $ 147,663 | $ 214,319 | $ 183,903 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Ordinary Shares | Additional paid-in capital | Statutory reserve | Retained Earnings | Accumulated other comprehensive loss | Equity attributable to the Company’s shareholders | Non-controlling interest | Total equity |
Balance at Jun. 30, 2018 | $ 2,800 | $ 3,932,786 | $ 664,100 | $ 14,512,124 | $ (401,000) | $ 18,710,810 | $ 11,137 | $ 18,721,947 |
Balance (in Shares) at Jun. 30, 2018 | 28,000,000 | |||||||
Profit (loss) for the year | 10,233,775 | 10,233,775 | (61,414) | 10,172,361 | ||||
Foreign currency translation adjustment | (729,348) | (729,348) | (729,348) | |||||
Balance at Jun. 30, 2019 | $ 2,800 | 3,932,786 | 664,100 | 24,745,899 | (1,130,348) | 28,215,237 | (50,277) | 28,164,960 |
Balance (in Shares) at Jun. 30, 2019 | 28,000,000 | |||||||
Profit (loss) for the year | 5,649,451 | 5,649,451 | (1,443) | 5,648,008 | ||||
Foreign currency translation adjustment | (837,040) | (837,040) | (837,040) | |||||
Distribustions to shareholders | (264,829) | (264,829) | (264,829) | |||||
Discontinued operation of company (YLS) | 17,226 | 17,226 | ||||||
Balance at Jun. 30, 2020 | $ 2,800 | 3,667,957 | 664,100 | 30,395,350 | (1,967,388) | 32,762,819 | (34,494) | 32,728,325 |
Balance (in Shares) at Jun. 30, 2020 | 28,000,000 | |||||||
Net Proceeds from the initial public offering | $ 558 | 21,660,735 | 21,661,293 | 21,661,293 | ||||
Net Proceeds from the initial public offering (in Shares) | 5,575,556 | |||||||
Shares issued to directors | $ 1 | 213,839 | 213,840 | 213,840 | ||||
Shares issued to directors (in Shares) | 6,000 | |||||||
Profit (loss) for the year | 6,408,932 | 6,408,932 | (9,033) | 6,399,899 | ||||
Foreign currency translation adjustment | 3,265,403 | 3,265,403 | (3,514) | 3,261,889 | ||||
Balance at Jun. 30, 2021 | $ 3,359 | $ 25,542,531 | $ 664,100 | $ 36,804,282 | $ 1,298,015 | $ 64,312,287 | $ (47,041) | $ 64,265,246 |
Balance (in Shares) at Jun. 30, 2021 | 33,581,556 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 6,399,899 | $ 5,648,008 | $ 10,172,361 |
Income tax expense | 3,672,624 | 1,898,575 | 3,565,146 |
Interest expense | 25,509 | 26,447 | 22,021 |
Depreciation and amortization | 27,084 | 26,379 | 19,700 |
Amortization of right-of-use assets | 584,813 | 689,889 | 365,842 |
Loss on disposal of property, plant and equipment | 5,616 | ||
Loss on disposal of right-of-use assets | 489,178 | ||
Shares issued to directors | 213,840 | ||
Changes in | |||
Accounts receivables, net | 1,093,322 | (709,185) | 981,806 |
Inventories | (235,086) | ||
Prepayments, deposits and other current assets | (4,968,939) | (772,764) | (790,999) |
Long-term prepayments and other non-current assets | 2,875,495 | 116,555 | (2,754,089) |
Accounts payable and accrued expenses | 2,482,455 | 174,233 | 1,243,811 |
Taxes payable | (3,989,279) | (3,281,651) | (3,591,087) |
Cash provided by operating activities | 8,670,915 | 3,816,486 | 9,240,128 |
Investing Activities | |||
Purchases of property, plant and equipment | (261,843) | (1,600) | (659) |
Purchase of intangible assets | (42,678) | ||
Cash refund from the terminated leasehold | 659,241 | ||
Right-of-use-asset costs | (132,336) | (283,401) | (1,020,358) |
Lease principal refund | 80,531 | ||
Refund (Deposits) for acquisition of land and properties | (1,816,102) | (711,308) | 732,490 |
Deposits made for potential acquisitions | (3,400,000) | ||
Proceeds from disposal of property, plant and equipment | 11,720 | ||
Cash (used in) provided by investing activities | (5,610,280) | (1,038,987) | 382,434 |
Financing Activities | |||
Net proceeds from initial public offering | 21,661,293 | ||
Distributions to shareholders | (264,829) | ||
Cash provided by (used in) financing activities | 21,661,293 | (264,829) | |
Net increase in cash and cash equivalents | 24,721,927 | 2,512,670 | 9,622,562 |
Effects of currency translation | 2,666,345 | (719,843) | (497,288) |
Cash and cash equivalents at beginning of year | 25,022,199 | 23,229,372 | 14,104,098 |
Cash and cash equivalents at end of year | 52,410,472 | 25,022,199 | 23,229,372 |
SUPPLEMENTAL DISCLOSURES | |||
Income taxes paid | 4,271,139 | 3,277,419 | 3,572,810 |
Interest paid | $ 25,509 | $ 26,447 | $ 22,021 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS E-Home Household Service Holdings Limited (the “Company”) was incorporated as a limited company under the law of Cayman Islands on September 24, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, a variable interest entity (“VIE”) and subsidiaries of the VIE. The Company, its subsidiaries, VIE and subsidiaries of the VIE are hereinafter collectively referred to as “the Company”. The Company is principally engaged in the operation of household services, e.g. installation and maintenance of home appliances, housekeeping and senior care in the People’s Republic of China (the “PRC”) through on-line APP platform or call center. As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries, VIE and subsidiaries of VIE. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented. Reorganization A reorganization of the Company’s legal structure was completed in February 2019. The reorganization involved (i) the incorporation of the Company in the Cayman Islands as a holding company; (ii) the establishment of E-Home Household Service Holdings Limited (“E-Home Hong Kong”) as a wholly-owned subsidiary in Hong Kong, PRC; (iii) the establishment of E-Home Household Service Technology Co., Ltd. (“WFOE”), as a wholly-owned subsidiary of E-Home Hong Kong in Fujian, PRC; (iv) the entry by WFOE into contractual arrangements with Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (“E-Home Pingtan”) and Fuzhou Bangchang Technology Co. Ltd. (“Fuzhou Bangchang”) and their shareholders. The Company, E-Home Hong Kong and WFOE are all holding companies and had not commenced operation until this reorganization was complete. As all the entities involved in the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interests with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. The Company’s major consolidated subsidiaries, VIEs and their subsidiaries are as follows: Name Date of Place of % of E-Home Household Service Holdings Limited October 16, 2018 Hong Kong 100 % E-Home Household Service Technology Co., Ltd. December 5, 2018 PRC 100 % Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (E-Home Pingtan) April 1, 2014 PRC VIE Fuzhou Bangchang Technology Co. Ltd. March 15, 2007 PRC VIE Fuzhou Yongheng Xin Electric Co., Ltd. October 12, 2004 PRC 100 % Pingtan Comprehensive Experimental Zone Yili Sending Co., Ltd. August 13, 2015 PRC 67 % Fujian Happiness Yijia Family Service Co., Ltd. (“Fujian Happiness Yijia”) January 19, 2015 PRC 67 % Fuzhou Fumao Health Technology Co. Ltd. (“Fumao”, formerly Fuzhou Yiyanbao Information Technology Co., Ltd.) August 12, 2016 PRC 67 % Yaxing Human Resource Management (Pingtan) Co., Ltd. July 6, 2018 PRC 51 % The Company was incorporated as an exempted company with limited liability under the laws of the Cayman Islands on September 24, 2018. The Company has no substantive operations other than holding 100% of the equity or ownership of E-Home Hong Kong, a limited company established under the laws of the Hong Kong on October 16, 2018. E-Home Hong Kong is a holding company of 100% of the equity or ownership of WFOE, a limited company established under the laws of the PRC on December 5, 2018. In February 2019, WFOE entered into contractual arrangements with E-Home Pingtan and Fuzhou Bangchang, two limited liability companies established under the laws of the PRC on April 1, 2014 and March 15, 2007, respectively. E-Home Pingtan is a holding company of the following subsidiaries (during the six months ended December 31, 2018 or 2017): (i) 100% of the equity interests of Pingtan Comprehensive Experimental Zone Chuangkejin Enterprise Management Co., Ltd. (“CKJ”), a limited liability company established under the laws of the PRC on August 13, 2015, which was subsequently dissolved on November 1, 2018; (ii) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”), a limited liability company established under the laws of the PRC on October 12, 2004; (iii) 100% of the equity interests of Yichang Yijia Fast Service Home Service Co., Ltd. (“YJJJ”), a limited liability company established under the laws of the PRC on April 24, 2015, which was subsequently dissolved on September 18, 2017; (iv) 67% of the equity interests of Pingtan Comprehensive Experimental Zone Yili Sending Co., Ltd. (“YLS”), a limited liability company established under the laws of the PRC on August 13, 2015, which was subsequently dissolved on April 26, 2020; (v) 67% of the equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”), a limited liability company established under the laws of the PRC on January 19, 2015; (vi) 67% of the equity interests of Fuzhou Yiyanbao Information Technology Co., Ltd. (“YYB”), a limited liability company established under the laws of the PRC on August 13, 2016; (vii) 51% of the equity interests of Fuzhou Yijia KuaiFu Investment Consulting Co., Ltd. (“YJZX”), a limited liability company established under the laws of the PRC on June 1, 2018, which was subsequently dissolved on December 11, 2018; and (viii) 51% of the equity interests of Yaxing Human Resource Management (Pingtan) Co., Ltd. (“HR”), a limited liability company established under the laws of the PRC on July 6, 2018. YYB and HR have not yet commenced operations. The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. Contractual arrangements To comply with PRC laws and regulations, the Company provides all of its services in China through E-Home Pingtan and Fuzhou Bangchang. Under various contractual agreements, WFOE has the exclusive right to acquire the ownership of E-Home Pingtan and Fuzhou Bangchang for a nominal consideration, or an adjusted price based on appraisal if required by the PRC laws, when permitted by PRC laws and regulations at the request of WFOE any time. All voting rights of E-Home Pingtan and Fuzhou Bangchang are assigned to WFOE and WFOE has the right to appoint all directors and senior management personnel of E-Home Pingtan and Fuzhou Bangchang. In addition, all shareholders of E-Home Pingtan and Fuzhou Bangchang have pledged their shares in E-Home Pingtan and Fuzhou Bangchang as collateral. As a result, the Company enjoys substantially all of the risks and rewards of ownership of E-Home Pingtan and Fuzhou Bangchang and exercises controls over them, along with their subsidiaries. Therefore, the Company is the ultimate primary beneficiary of E-Home Pingtan and Fuzhou Bangchang and has consolidated E-Home Pingtan and Fuzhou Bangchang and its subsidiaries. The following is a summary of the contractual agreements: Exclusive business cooperation agreements Under the Exclusive Business Cooperation Agreement between WFOE and E-Home Pingtan, dated February 22, 2019, and the Exclusive Business Cooperation Agreement between WFOE and Fuzhou Bangchang, dated February 20, 2019, WFOE has the exclusive right to provide E-Home Pingtan and Fuzhou Bangchang with technical support, consulting services and other services related to their business operations in return for certain fees. Without WFOE’s prior written consent, E-Home Pingtan and Fuzhou Bangchang may not accept any services subject to these agreements from any third party. The parties shall determine the service fees to be charged to E-Home Pingtan and Fuzhou Bangchang under these agreements by considering, among other things, the complexity of the services, the time that may be spent for providing such services, the commercial value and specific content of the service provided, the market price of the same types of services, and the operating condition of E-Home Pingtan and Fuzhou Bangchang. WFOE owns the intellectual property rights developed by either WFOE or E-Home Pingtan and Fuzhou Bangchang in the performance of the agreement. These agreements became effective upon execution and will remain effective until terminated by WFOE. Equity interest pledge agreements Under the Equity Interest Pledge Agreement among WFOE, E-Home Pingtan and its shareholders, dated February 22, 2019, and the Equity Interest Pledge Agreement among WFOE, Fuzhou Bangchang and its shareholders, dated February 20, 2019, the shareholders have pledged their respective equity interests in E-Home Pingtan and Fuzhou Bangchang to secure their performance under the Exclusive Business Corporation Agreements, the Exclusive Option Agreements, the Voting Rights Proxy and Financial Supporting Agreements and the Equity Interest Pledge Agreements. If E-Home Pingtan and Fuzhou Bangchang or the shareholders breach their contractual obligations under these agreements, WFOE, as pledgee, will have the right to dispose of the pledged equity interests in E-Home Pingtan and Fuzhou Bangchang and will have priority in receiving the proceeds from such disposal. The shareholders also agreed that, unless the contractual obligations as defined in the Equity Interest Pledge Agreements are fully performed by them or the secured debts under the Equity Interest Pledge Agreements are paid in full (whichever later), they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the equity pledge period, WFOE is entitled to all dividends and other distributions made by E-Home Pingtan and Fuzhou Bangchang. The Equity Interest Pledge Agreements will remain binding until E-Home Pingtan and Fuzhou Bangchang discharge all their obligations under the Exclusive Business Corporation Agreements at the expiration of the Exclusive Business Corporation Agreements. Exclusive option agreements Under the Exclusive Option Agreement among WFOE, E-Home Pingtan and its shareholders, dated February 22, 2019, and the Exclusive Option Agreement among WFOE, Fuzhou Bangchang and its shareholders, dated February 20, 2019, the shareholders irrevocably granted WFOE or any third party designated by WFOE an exclusive option to purchase all or part of their equity interests in E-Home Pingtan and Fuzhou Bangchang at a price of RMB 10; provided that if the lowest price permitted by applicable PRC laws is greater than RMB 10, then that price shall apply. The shareholders further agreed that they will neither create any pledge or encumbrance on their equity interests in E-Home Pingtan and Fuzhou Bangchang, nor transfer, gift or otherwise dispose of their equity interests in E-Home Pingtan and Fuzhou Bangchang to any person other than WFOE or its designated third party. The shareholders and E-Home Pingtan and Fuzhou Bangchang agreed that they will operate the businesses in the ordinary course and maintain the asset value of E-Home Pingtan and Fuzhou Bangchang and refrain from any actions or omissions that may affect their operating status and asset value. Furthermore, without WFOE’s prior written consent, the shareholders and E-Home Pingtan and Fuzhou Bangchang agreed not to, among other things: amend the articles of association of E-Home Pingtan and Fuzhou Bangchang; increase or decrease the registered capital of E-Home Pingtan and Fuzhou Bangchang; sell, transfer, mortgage or dispose of in any manner any material assets of E-Home Pingtan and Fuzhou Bangchang or legal or beneficial interest in the material business or revenues of E-Home Pingtan and Fuzhou Bangchang of more than RMB 10,000,000; enter into any major contracts, except for contracts in the ordinary course of business (a contract with a price exceeding RMB 500,000 shall be deemed a major contract); merge, consolidate with, acquire or invest in any person, or provide any loans; or distribute dividends. The Exclusive Option Agreements will remain effective until all equity interests have been transferred or assigned in accordance with the Exclusive Option Agreements. Voting rights proxy and financial supporting agreements Pursuant to the Voting Rights Proxy and Financial Supporting Agreement among WFOE, E-Home Pingtan and its shareholders, dated February 22, 2019, and the Voting Rights Proxy and Financial Supporting Agreement among WFOE, Fuzhou Bangchang and its shareholders, dated February 20, 2019, each shareholder irrevocably authorized WFOE or any person(s) designated by WFOE to act as his or her attorney-in-fact to exercise all of his or her rights as a shareholder of E-Home Pingtan and Fuzhou Bangchang, including, but not limited to, the right to convene shareholders’ meetings, vote and sign any resolution as a shareholder, appoint directors and other senior executives to be appointed and removed by the shareholder, the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder, and other shareholders voting rights permitted by the articles of association of E-Home Pingtan and Fuzhou Bangchang. In consideration of the foregoing grant of voting rights by the shareholders, WFOE agreed to arrange for funds to be provided as necessary to E-Home Pingtan and Fuzhou Bangchang in connection with their business; provided that in the event that the business of E-Home Pingtan or Fuzhou Bangchang fails and as a result E-Home Pingtan or Fuzhou Bangchang is unable to repay such funds, then E-Home Pingtan or Fuzhou Bangchang shall have no repayment obligation. The term of the Voting Rights Proxy and Financial Supporting Agreements is for twenty years, which may be extended upon written consent of the parties. Risks in relation to the VIE structure Under the contractual arrangements with E-Home Pingtan and Fuzhou Bangchang and through their equity interest in their subsidiaries, the Company has the power to direct activities of the VIEs and VIEs’ subsidiaries and direct the transfer of assets out of the VIEs and VIEs’ subsidiaries. Therefore, the Company considers that there is no asset of the VIEs and VIEs’ subsidiaries that can be used only to settle their obligations. As the consolidated VIEs and VIEs’ subsidiaries are incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the consolidated VIEs and VIEs’ subsidiaries. The Company believes that the contractual arrangements among the WFOE, E-Home Pingtan and Fuzhou Bangchang and their respective shareholders are in compliance with PRC law and are legally enforceable. Some of the shareholders of E-Home Pingtan and Fuzhou Bangchang are also shareholders or nominees of shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of E-Home Pingtan and Fuzhou Bangchang were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control E-Home Pingtan and Fuzhou Bangchang also depends on the power of attorney and WFOE has to vote on all matters requiring shareholder approval in E-Home Pingtan and Fuzhou Bangchang. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could: ● revoke the Company’s business and operating licenses; ● require the Company to discontinue or restrict operations; ● restrict the Company’s right to collect revenues; ● block the Company’s websites; ● require the Company to restructure the operations in such a way as to compel the Company to establish a new enterprise, re-apply for the necessary licenses or relocate our businesses, staff and assets; ● impose additional conditions or requirements with which the Company may not be able to comply; or ● take other regulatory or enforcement actions against the Company that could be harmful to the Company’s business. The imposition of any of these penalties may result in a material and adverse effect on the Company’s ability to conduct the Company’s business. In addition, if the imposition of any of these penalties causes the Company to lose the right to direct the activities of E-Home Pingtan and Fuzhou Bangchang (through the equity interest in their subsidiaries) or the right to receive their economic benefits, the Company would no longer be able to consolidate E-Home Pingtan and Fuzhou Bangchang and their subsidiaries. In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or the contractual arrangements with its VIEs are remote. There is no VIE for which the Company has variable interest but is not the primary beneficiary. Except as described above, there is no contractual arrangement that could require the Company to provide additional financial support to E-Home Pingtan and Fuzhou Bangchang. As the Company is conducting its business mainly through E-Home Pingtan and Fuzhou Bangchang, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The Company’s VIEs’ assets are comprised of recognized and unrecognized revenue-producing assets. The recognized revenue producing assets mainly include software copyright, which were in the line of “Intangible assets, net” in the table above. The unrecognized revenue-producing assets mainly consist of trademarks, which have no recorded value. The Group’s business has been directly operated by the VIE. For the years ended June 30, 2021 and 2020 , As of June 30, 2021 2020 ASSETS Current assets Cash and cash equivalents $ 43,098,722 $ 25,022,199 Accounts receivable 826,683 1,774,792 Inventories 246,778 11,692 Prepayments, deposits and other current assets 6,340,844 1,891,869 Total current assets 50,513,027 28,700,552 Non-current assets Property, plant and equipment, net 45,288 53,042 Intangible assets, net 36,031 43,041 Operating lease – right-of-use assets, net 4,262,736 5,951,588 Finance lease – right-of-use assets, net 1,346,728 1,398,404 Long-term prepayments and other non-current assets 1,934,955 4,449,467 Deferred income tax assets 704,262 353,097 Total non-current assets 8,330,000 12,248,639 TOTAL ASSETS $ 58,843,027 $ 40,949,191 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $ 6,102,825 $ 2,973,141 Advance from customers 2,993,656 1,414,345 Taxes payable 2,220 8,025 Current maturities of operating lease liabilities 87,103 199,011 Current maturities of finance lease liabilities 59,098 51,353 Total current liabilities 9,244,902 4,645,875 Long-term portion of operating lease liabilities 2,147,252 3,117,124 Long-term portion of finance lease liabilities 442,670 457,867 TOTAL LIABILITIES 11,834,824 8,220,866 Commitments and contingencies - - SHAREHOLDERS’ EQUITY Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively - - Additional paid-in capital 3,670,757 3,670,757 Statutory reserve 664,100 664,100 Retained earnings 41,374,813 31,059,450 Accumulated other comprehensive loss 1,345,574 (1,967,388 ) Total equity attributable to shareholders 47,055,244 32,762,819 Non-controlling interest (47,041 ) (34,494 ) TOTAL SHAREHOLDERS’ EQUITY 47,008,203 32,728,325 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 58,843,027 $ 40,949,191 For the years ended June 30, 2021 2020 2019 Revenues $ 74,525,434 $ 46,200,949 $ 51,149,326 Net income $ 10,970,430 $ 5,648,008 $ 10,172,361 For the years ended June 30, 2021 2020 2019 Net cash provided by operating activities $ 16,629,083 $ 3,816,486 $ 9,240,128 Net cash provided by (used in) investing activities (1,952,081 ) (1,038,987 ) 382,434 Net cash provided by (used in) financing activities 685,614 (264,829 ) - Effects of currency translation 2,713,907 (719,843 ) (497,288) Net cash inflow $ 18,076,523 $ 1,792,827 $ 9,125,274 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of accounting The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. Reclassifications Certain prior year amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on net earnings (loss) or and financial position. Use of estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, prepayments, and other receivables, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and provision necessary for contingent liabilities. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of June 30, 2021 and 2020, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $0 and $0. Inventories Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress. Inventories as of June 30, 2021 and 2020 consisted of the following: 2021 2020 E-watches $ 246,778 $ 8,285 Accessories and appliances - 3,407 Total inventories, net $ 246,778 $ 11,692 For the years ended June 30, 2021, 2020, and 2019, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets as follows: Useful Lives Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 Years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Intangible assets, net Intangible assets consist of acquired software and senior care service app developed by the Company. The Company has purchased software from third parties used for operation management and developed an app for its senior care service. Software is initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of five to ten years. Leases Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term. (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria meets, the lease shall be classified as an operating lease. For lessee, a lease is recognized as a right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before lease commencement. The right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 effective as of the beginning of the first period presented by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had a material impact on the Company’s financial position, with no material impact on the results of operations and cash flows (see Note 7 and Note 8). The Company’s accounting policy is to recognize lease payments as rental expense for short-term leases less than 12 months. During the fiscal years ended June 30, 2021 and 2020, the Company recognized $44,419 and $65,702 in rental expense pertaining to two short-term leases. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset’s carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charges equal to the excess of the asset’s carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique. Fair Value of Financial Instruments The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest. ASC 820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2021 and 2020owing to their short-term or immediate nature. Revenue Recognition The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers The Company generates revenues primarily from installation & maintenance, housekeeping services and senior care services. The Company sells its services through a third-party service provider WeChat platform. The Company’s revenues are subject to value added tax (“VAT”). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Installation& maintenance Installation and maintenance services mainly consisting of the following services: technical home installation and repair, maintenance and other after sale services. Revenues from installation and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price. The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on the best estimate of selling price. The Company, acting as principal, contracts with third-party service providers (i.e., service outlets), acting as agents. The Company is responsible for market development and providing the customer information to the service provider, directing the outlet to provide services and coordination with the customer, while the service provider provides the door-to-door service. The price of services is set by the Company and the service provider is only responsible for collection of payments. When the Company’s end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. The Company chooses the service provider by the proximity principle. If the customer is not satisfied with the chosen provider, the service provider can be re-selected. Regardless of the service provider’s performance, the Company is still liable to complete the orders. If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, the Company will communicate directly with the end customer. The service provider is not obligated to pay the Company. To minimize our risk, the service provider will remit payment of any outstanding receivables each month. Housekeeping services Housekeeping services refer to services including housecleaning, nanny service, maternity matron and personnel staffing. Revenues from housekeeping are recognized at a point in time upon completion of services to the customer based on the relative selling price method. Senior care services Senior care services refer to services including BP, heart rate test, daily steps count, location and track record, call for help by Wechat or phone, and other care services rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with the Company. The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue of the services provided. Revenues from the E-watch sold are recognized at a point in time once customers receive the E-watch and the revenues of the services provided are recognized over the service period. Disaggregation of revenue from contracts with customers The senior care services consist of the sale of E-watch and the care services. The E-watch cannot be sold to the customers solely without the care services, and the care services should be rendered by the E-watch. Consequently, the Company regards these operating activities as operating in one material segment, being the revenue of senior care services. Sublease The Company subleases its operating leased right-of-use hotel. For the years ended June 30, 2021, 2020 and 2019, the sublease income of operating lease right-of-use assets were $147,663, $214,319 and $183,903, respectively. Cost of revenues Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of accessories sold. Government subsidies Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies are recognized when received and all the conditions for their receipt have been met. For the years ended June 30, 2021, 2020 and 2019, the Company received government subsidies of $908,051, $0 and $0, respectively. The grants were recorded as other income in the consolidated financial statements. Income taxes Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. Ordinary shares The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders’ equity. Cancellation of treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital and retained earnings, as applicable. An excess of purchase price over par value is allocated to additional paid-in capital first with any remaining excess charged entirely to retained earnings. Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no potentially dilutive ordinary shares during the fiscal years ended June 30, 2021, 2020 and 2019. Comprehensive income/ (loss) ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the fiscal years ended June 30, 2021, 2020 and 2019, foreign currency translation gain (loss) adjustments of $3,261,889, ($843,850) and ($762,728), respectively, were recognized as a component of accumulated other comprehensive income (loss), respectively. Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments are included as a separate component of accumulated other comprehensive income (loss). The value of RMB against U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements: June 30, June 30, June 30, Year-end spot rate US$1= 6.4601 RMB US$1= 7.0795 RMB US$1= 6.8747 RMB Average rate US$1= 6.6076 RMB US$1= 7.0293 RMB US$1= 6.8260 RMB Segment reporting Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company’s various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Company’s three segments are installation & maintenance, housekeeping and senior care services. Operation of senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2021 and 2020. Concentration of risks Exchange rate risks The Company’s Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2021 and 2020, the RMB denominated cash and cash equivalents amounted to $52,410,472 and $25,022,199, respectively. Currency convertibility risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. Risks and uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. Recent accounting pronouncements The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning April 1, 2022. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. In August 2017, the FASB amended the existing accounting guidance for hedge accounting. The amendments require expanded hedge accounting for both non-financial and financial risk components and refine the measurement of hedge results to better reflect an entity’s hedging strategies. The new guidance also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The new guidance must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” which amends the FASB ASC and XBRL Taxonomy based on the Tax Cuts and Jobs Act, or the Act, that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 that was released by the SEC. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. The Company does not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of June 30, 2021 and 2020: 2021 2020 Accounts receivable, gross $ 826,683 $ 1,774,792 Less: allowance for doubtful accounts - - Accounts receivable, net $ 826,683 $ 1,774,792 The Company recorded no allowance for doubtful accounts as of June 30, 2021 and 2020. The Company gives its customers credit period of 30 days and continually assesses the recoverability of uncollected accounts receivable. As of June 30, 2021 and 2020, the balances of the Company’s accounts receivable were all due within 1 month. Management believes the balances of accounts receivable will be collected in full. |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Current Assets | 12 Months Ended |
Jun. 30, 2021 | |
Prepayment And Other Current Assets [Abstract] | |
PREPAYMENTS, DEPOSITS AND OTHER CURRENT ASSETS | NOTE 4 – PREPAYMENTS, DEPOSITS AND OTHER CURRENT ASSETS Prepayments, deposits and other current assets as of June 30, 2021 and 2020 consisted of the following: 2021 2020 Deposits made for potential acquisitions* $ 3,400,000 $ - Prepaid for marketing fee 2,333,358 706,265 Performance deposits** 2,167,149 - Prepaid consulting services fee 2,110,000 - Prepaid office deposit 1,931,107 17,077 Prepaid income tax expenses 315,015 18,385 Prepaid office rental fee 26,006 - Prepaid IPO cost - 965,357 Other current assets - 184,785 Total prepayments, deposits and other current assets $ 12,282,665 $ 1,891,869 * On April 30, 2021, the Company entered into two agreements with Premium Bright Corporate Advisory Limited (“Premium”) in which Premium will find target companies for the Company to acquire in order to expand its business to the financial lending services. The Company prepaid deposit for the acquisitions of $1,800,000 to Premium. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. In August 2021, the acquisition was terminated and Yuwin returned the deposit to the Company. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the transfer agreement was terminated and South Pacific returned the deposit to the Company. ** E-Home Pingtan entered into three agreements with three new outlets for business cooperation purpose. This refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets will repay the deposits to E-Home Pingtan in case of termination of the agreements. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following as of June 30, 2021 and 2020: 2021 2020 Office Equipment $ 10,665 $ 9,732 Electronic Equipment 74,845 64,897 Motor Vehicles 315,964 52,710 Total property, plant and equipment, at cost 401,474 127,339 Less: accumulated depreciation (97,986 ) (74,297 ) Property, plant and equipment, net $ 303,488 $ 53,042 As of June 30, 2021 and 2020, there was not any pledged property, plant or equipment. The Company recorded depreciation expense of $16,196, $16,856, and $18,165 during the fiscal years ended June 30, 2021, 2020 and 2019, respectively. For the years ended June 30, 2021, 2020 and 2019, the Company recorded no impairment losses for property, plant and equipment. For the years ended June 30, 2021, 2020 and 2019, the Company recorded no disposal of property, plant and equipment. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6 – INTANGIBLE ASSETS, NET Intangible assets consisted of the following as of June 30, 2021 and 2020: 2021 2020 Software $ 18,485 $ 16,868 Senior care service App 46,439 42,376 Less: accumulated amortization (28,893 ) (16,203 ) Intangible assets, net $ 36,031 $ 43,041 As of June 30, 2021 and 2020, there were no any pledged intangible assets to secure bank loans. The Company recorded amortization expense of $10,888, $9,523 and $1,535 during the fiscal years ended June 30, 2021, 2020 and 2019, respectively. For the years ended June 30, 2021, 2020 and 2019, the Company recorded no impairment losses for intangible assets. For the years ended June 30, 2021, 2020 and 2019, the Company recorded no disposal of intangible assets. Estimated future amortization expense is as follows as of June 30, 2021: Years ending March 31, Amortization 2022 $ 10,888 2023 10,888 2024 10,888 2025 3,367 2026 - Thereafter - $ 36,031 |
Operating Lease Right-of-Use As
Operating Lease Right-of-Use Assets, Net | 12 Months Ended |
Jun. 30, 2021 | |
Operating Lease Right -of-Use Assets [Abstract] | |
OPERATING LEASE RIGHT-OF-USE ASSETS, NET | NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSETS, NET Operating lease right -of-use assets, net were as follows as of June 30, 2021 and 2020: As of Increase (Decrease) Exchange Rate As of Shou Hill Valley Area $ 2,118,794 $ - $ 203,151 $ 2,321,945 Villas 2,091,284 - 200,514 2,291,798 Hotel 2,225,557 (2,438,945 ) 213,388 - Base Station Tower 246,819 - 23,665 270,484 Total right-of-use assets, at cost 6,682,454 (2,438,945 ) 640,719 4,884,227 Less: accumulated amortization (730,866 ) 179,450 (70,075 ) (621,491 ) Right-of-use assets, net $ 5,951,588 $ (2,259,495 ) $ 570,643 $ 4,262,736 The Company recognizes lease expense for the Shou Hill Valley Area and Villas Operating Lease Right-of-Use Assets over a 20 years period. The Company recognizes lease expense for the Hotel and Base Station Tower Operating Lease Right-of-Use Assets over a 10 years period. The Company subleases its operating leased right-of-use hotel. For the years ended June 30, 2021, 2020 and 2019, the sublease income of operating lease right-of-use assets were $147,663, $214,319 and $183,903, respectively. In May 2021, the Company terminated the operating lease agreement for hotel and recorded a loss of $489,178 on disposal of the right-of-use asset. |
Finance Lease Right-of-Use Asse
Finance Lease Right-of-Use Assets, Net | 12 Months Ended |
Jun. 30, 2021 | |
Finance Lease Right of Use Assets [Abstract] | |
FINANCE LEASE RIGHT-OF-USE ASSETS, NET | NOTE 8 – FINANCE LEASE RIGHT-OF-USE ASSETS, NET Finance lease right -of-use assets, net were as follows as of June 30, 2021 and 2020: As of Increase/ Exchange Rate As of Company vehicles $ 1,695,035 $ - $ 162,521 $ 1,857,556 Total right-of-use assets, at cost 1,695,035 - 162,521 1,857,556 Less: accumulated amortization (296,631 ) (181,610 ) (32,587 ) (510,828 ) Right-of-use assets, net $ 1,398,404 $ (181,610 ) $ 129,934 $ 1,346,728 The finance lease right-of-use asset is amortized over a 10-year period. The amortization period is 10 years and the discount rate used is 4.9%. |
Long-Term Prepayments and Other
Long-Term Prepayments and Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2021 | |
Long-Term Prepayments and Other Non-Current Assets [Abstract] | |
LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS | NOTE 9 – LONG-TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS Long-term prepayments and other non-current assets as of June 30, 2021 and 2020 consisted of the following: 2021 2020 Deposits paid for lease assets $ 386,991 $ 353,132 Deposits paid for land 1,547,964 1,412,529 Performance deposits* - 2,683,806 Total $ 1,934,955 $ 4,449,467 * E-Home Pingtan entered into three agreements with three new outlets for business cooperation purpose. This refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets will repay the deposits to E-Home Pingtan in case of termination of the agreements. (Note 4) |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 10 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following is a summary of accounts payable and accrued expenses as of June 30, 2021 and 2020: 2021 2020 Payable to suppliers $ 3,657,700 $ 2,629,626 Salary and welfare payables 614,355 239,726 Accrued expenses and other current liabilities 85,498 103,789 Total 4,357,553 2,973,141 |
Advance from Customers
Advance from Customers | 12 Months Ended |
Jun. 30, 2021 | |
Advance from Customers [Abstract] | |
ADVANCE FROM CUSTOMERS | NOTE 11 – ADVANCE FROM CUSTOMERS Advance from customers as of June 30, 2021 and 2020 consisted of the following: 2021 2020 Advance from customers $ 2,993,656 $ 1,414,345 Total $ 2,993,656 $ 1,414,345 E-Home received annual fees from senior care services customers and recognized revenues over the contract period. The amounts advanced from customers from senior care services were $2,817,048 and $1,414,345 as of June 30, 2021 and 2020, respectively, which will be recognized as senior care services revenue within 12 months. E-Home received advance from housekeeping services customers and recognized revenues when services are provided. The amounts advanced from customers from housekeeping services were $176,608 and $0 as of June 30, 2021 and 2020, respectively, which will be recognized as housekeeping services revenue within 12 months. |
Operating Lease Liabilities
Operating Lease Liabilities | 12 Months Ended |
Jun. 30, 2021 | |
Operating Lease Liabilities [Abstract] | |
OPERATING LEASE LIABILITIES | NOTE 12 – OPERATING LEASE LIABILITIES Operating lease liabilities as of June 30, 2021 and 2020 consisted of the following: As of As of Villas* $ 1,951,867 $ 1,710,553 Hotel** - 1,383,040 Base Station Tower*** 282,488 222,542 Total operating lease liabilities $ 2,234,355 $ 3,316,135 Analyzed for reporting purposes as: As of As of Long-term portion of operating lease liabilities $ 2,147,252 $ 3,117,124 Current maturities of operating lease liabilities 87,103 199,011 Total $ 2,234,355 $ 3,316,135 The operating lease liabilities is the net present value of the remaining lease payments as of June 30, 2021 and 2020. The discount rates used for the Villas, Hotel, and Base Station Tower were 4.1239%, 3.2265% and 3.1365%, respectively. The weighted average discount rate used for operating leases was 4.06%. The weighted average remaining lease terms for operating leases was 16.00 years. The incremental borrowing rate for the Company ranged from 3.7% to 4.8%. For the years ended June 30, 2021 and 2020, the operating lease expense were $1,010,608 and $519,174, respectively. For the years ended June 30, 2021 and 2020, the short-term operating lease expense were $1,589,089 and $711,308, respectively. The Company subleases its operating leased right-of-use Hotel. For the years ended June 30, 2021, 2020 and 2019, the sublease income of operating lease right-of-use assets were $147,663, $214,319 and $183,903, respectively. * The lease agreement of Villas was entered into on December 22, 2017, bears interest at about 4.1239% and will be matured on December 31, 2037. The installments were paid every five years. As of June 30, 2021, the Company has paid $696,584 for the first installment to the lessee. ** The lease agreement of Hotel was entered on December 19, 2018, bears interest at about 3.2265% and will mature on September 30, 2028. The installments were paid every year. As of June 30, 2021, the Company has paid $146,283 for the first-year installment and $619,185 for the lease transfer income to the original lessee. *** The lease agreement of Base Station Tower was entered into on November 25, 2019, bears interest at about 3.1365% and will be matured on November 24, 2029. The installments were paid every year. As of June 30, 2021, the Company has paid $ 61,919 to the lessee. Maturity analysis of operating lease liabilities as of June 30, 2021 is as follows: Operating lease payment Villas Base station tower Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % One year $ - $ 30,959 $ 30,959 Two years 766,242 30,959 797,201 Three years - 30,959 30,959 Four years - 30,959 30,959 Five years - 30,959 30,959 Beyond five years 1,770,020 92,877 1,862,897 Total undiscounted cash flows $ 2,536,262 $ 247,672 $ 2,783,934 Total financing lease liabilities 1,951,867 282,488 2,234,355 Difference between undiscounted cash flows and discounted cash flows 584,395 (34,816 ) 549,579 |
Finance Lease Liabilities
Finance Lease Liabilities | 12 Months Ended |
Jun. 30, 2021 | |
Finance Lease Liabilities [Abstract] | |
FINANCE LEASE LIABILITIES | NOTE 13 – FINANCE LEASE LIABILITIES Financing lease liabilities as of June 30, 2021 and 2020 consisted of the following: As of Increase/ (Decrease) Payment Exchange Rate Translation As of Company vehicles $ 461,728 $ - $ (80,531 ) $ 44,178 $ 425,375 Add: Unrecognized finance expense 47,492 25,509 - 3,392 76,393 Total financing lease liabilities $ 509,220 $ 25,509 $ (80,531 ) $ 47,570 $ 501,768 Analyzed for reporting purposes as: As of As of Long-term portion of finance lease liabilities $ 442,670 $ 457,867 Current maturities of finance lease liabilities 59,098 51,353 Total $ 501,768 $ 509,220 The lease agreement was entered into on September 11, 2017, bears interest at about 4.9% and will be matured on December 31, 2027. For the years ended June 30, 2021 and 2020, the amortization expense of financial lease right-of-use assets were $181,610 and $170,714, respectively. For the years ended June 30, 2021, 2020 and 2019, the interest expense for financial lease were $25,509, $26,447 and $22,021, respectively. Maturity analysis of financial lease liabilities as of June 30, 2021 is as follows: Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 82,369 Two years 82,369 Three years 82,369 Four years 82,369 Five years 82,369 Beyond five years 185,330 Total undiscounted cash flows $ 597,175 Total financing lease liabilities 501,768 Difference between undiscounted cash flows and discounted cash flows 95,407 |
Taxes
Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 14 – TAXES The Company is registered in the Cayman Islands. The Company generated substantially all of its income/ (loss) from its PRC operations for the years ended June 30, 2021, 2020 and 2019. Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong E-Home Hong Kong is not subject to tax on income or capital gain since there has no operations in Hong Kong for the years ended June 30, 2021, 2020 and 2019. PRC Income Tax On March 16, 2007, the National People’s Congress of PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax (“EIT”) at a uniform rate of 25%. The EIT Law became effective on January 1, 2008. 25% tax rates apply to all the PRC operation subsidiaries in the Company. The provision for income tax for the years ended June 30, 2021, 2020 and 2019, consisted of the following: 2021 2020 2019 Current income tax provision $ 2,968,362 $ 2,251,672 $ 3,565,146 Deferred income tax provision 704,262 353,097 - Total $ 3,672,624 $ 1,898,575 $ 3,565,146 The following table sets forth reconciliation between the statutory EIT rate and the effective tax for the years ended June 30, 2021, 2020 and 2019, respectively: 2021 2020 2019 Income before income taxes $ 10,072,523 $ 7,546,583 $ 13,737,507 Provision for income taxes at statutory tax rate in the PRC 3,660,090 1,886,646 3,434,377 Effect of income for which no income tax is chargeable - - - Effect of expense for which no income tax is deductible 12,534 11,929 130,769 Reversal of deficit - - - Effective tax $ 3,672,624 $ 1,898,575 $ 3,565,146 The significant components of deferred tax assets as of June 30, 2021 and 2020 were as follows: June 30, June 30, Deferred tax assets Senior care services fees advanced from customers $ 704,262 353,097 Total $ 704,262 353,097 Value Added Tax (“VAT”) Business tax changed to VAT in China since May 1, 2016. The Company’s revenue of installation is subject to a VAT rate of 11%. The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019. According to the regulations (Fiscal and Tax [2016] 36), no VAT will be levied if an enterprise provides employee-based household services. E-Home Pingtan applied for the tax exemption in July 2017 and was approved by the State Administration of Taxation (China), so the VAT rate of installation, maintenance, after-sales and cleaning service is nil Taxes payable The Company’s taxes payable as of June 30, 2021 and 2020, consisted of the following: 2021 2020 Income tax payable $ - $ - VAT payable 332 5,797 Other tax payables (other payables and accrued liabilities) 1,888 2,228 Total $ 2,220 $ 8,025 |
Equity
Equity | 12 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 15-EQUITY Ordinary Shares At the reorganization event described in Note 1, the Company issued 50,000 ordinary shares with par value of $1 to exchange for the ownership in E-Home Pingtan from the former shareholders to WFOE. Prior to the reorganization, the Company had $3,620,757 and $3,885,586 in contributed ownership as of June 30, 2019 and 2018, respectively. The reorganization has been accounted for at historical cost and prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the accompanying financial statements of the Company. On May 23, 2019, the Company split its 50,000 ordinary shares into 500,000,000 ordinary shares. The authorized ordinary shares became 500,000,000 shares and the par value changed from US$1 to US$0.0001. As part of its reorganization and on May 23, 2019, the Company surrendered 472,000,000 ordinary shares. As a result, the Company has 28,000,000 ordinary shares issued and outstanding. On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share, including 20,000 ordinary shares issued upon the partial exercise of the over-allotment option by Joseph Stone Capital, LLC, who acted as the representative of underwriters for the initial public offering. The total gross proceed from the initial public offering was approximately $25.1 million before underwriting commissions and offering expenses. The total net proceed from the initial public offering was $21,661,293 (ordinary shares of $558 and additional paid-in capital of $21,660,735) after deducting the financing expenses directly related to the initial public offering. On June 21, 2021, the Company granted 6,000 ordinary shares to three of its independent directors (2,000 shares for each director) as their compensations at a fair value of $213,840 (ordinary shares of $1 and additional paid-in capital of $213,839). Statutory Reserve The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The reserved amounts as determined pursuant to PRC statutory laws totaled $664,100 and $664,100 as of June 30, 2021 and 2020. Dividends Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily from cash received from its operating activities in PRC. For the years ended June 30, 2021 and 2020, there was no Company dividend declared. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 16 –SEGMENT INFORMATION Operating segments are reported in a manner consistent with the internal reporting provided to the management for decision making. Management has identified three operating segments which are installation and maintenance, housekeeping and senior care services. Operations for senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. These operating segments are monitored and strategic decisions are made on the basis of segmental profit margins. Segment profit is defined as net sales reduced by cost of revenue and other related operating expenses. The results are shown as follows for the years ended June 30, 2021, 2020 and 2019: Revenue 2021 2020 2019 Installation and Maintenance $ 51,546,235 $ 32,220,898 $ 40,460,351 Housekeeping 16,792,722 11,704,899 10,505,072 Senior care services 6,038,814 2,060,833 - Sublease 147,663 214,319 183,903 Total $ 74,525,434 $ 46,200,949 $ 51,149,326 Cost of revenue 2021 2020 2019 Installation and Maintenance $ 32,209,179 $ 19,484,927 $ 23,702,317 Housekeeping 13,435,869 8,901,973 8,069,009 Senior care services 2,666,350 1,714,172 - Sublease - - - Total $ 48,311,398 $ 30,101,072 $ 31,771,326 Gross profit 2021 2020 2019 Installation and Maintenance $ 19,337,056 $ 12,735,971 $ 16,758,034 Housekeeping 3,356,853 2,802,926 2,436,063 Senior care services 3,372,464 346,661 - Sublease 147,663 214,319 183,903 Total $ 26,214,036 $ 16,099,877 $ 19,378,000 Sales and marketing expenses 2021 2020 2019 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 10,279,274 7,514,211 4,101,960 Total $ 10,279,274 $ 7,514,211 $ 4,101,960 General and administrative expenses 2021 2020 2019 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 6,869,419 1,114,984 1,554,523 Total $ 6,869,419 $ 1,114,984 $ 1,554,523 Current assets 2021 2020 Installation and Maintenance $ - $ - Housekeeping - - Senior care services - - Sublease - - Unallocated current assets 65,766,598 28,700,552 Total $ 65,766,598 $ 28,700,552 Non-current assets 2021 2020 Installation and Maintenance $ - $ - Housekeeping - - Senior care services 4,966,998 6,304,720 Sublease - 1,885,890 Unallocated non-current assets 3,621,202 4,058,029 Total $ 8,588,200 $ 12,248,639 On account of the Company’s business model, assets, operating expense, profit or loss, liabilities and other material items could not be separated into each operating segment. As the Company’s long-lived assets and revenue are substantially located in and derived from the PRC, no geographical segments are presented. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 – COMMITMENTS AND CONTINGENCIES As of June 30, 2021, the Company had following lease commitments under non-cancelable agreements: Future Lease Payments Operating Lease Finance Lease Capital Expenditure Total July 2021 to June 2022 $ 30,959 $ 82,369 2,786,335 $ 2,899,663 July 2022 to June 2023 797,202 82,369 - 879,570 July 2023 to June 2024 30,959 82,369 - 113,328 July 2024 to June 2025 30,959 82,369 - 113,328 Thereafter 1,893,856 267,698 - 2,161,554 Total $ 2,783,935 $ 597,173 2,786,335 $ 6,167,443 |
Customer and Supplier Concentra
Customer and Supplier Concentration | 12 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATION | NOTE 18 – CUSTOMER AND SUPPLIER CONCENTRATION Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchase. The Company’s sales are made to customers that are located primarily in China. For the years ended June 30, 2021, 2020 and 2019, no individual customer or supplier accounted for more than 10% of the Company’s total revenues or purchase. As of June 30, 2021, 2020 and 2019, no individual customer or supplier accounted for more than 10% of the total outstanding accounts receivable or accounts payable balance. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 19 – RELATED PARTY BALANCES AND TRANSACTIONS As of June 30, 2021, the Company had $30,925 payable to one of its shareholders, Mr. Wenshan Xie for purchase of goods and services. As of June 30, 2020, the Company had $8,475 receivable advanced to Mr. Wenshan Xie for purchase of goods and services. During the year ended June 30, 2021, Mr. Xie made payment of $63,975 for purchase of goods and services for the Company and the Company repaid $24,575 to Mr. Xie. During the year ended June 30, 2020, the Company paid $8,475 in advance to Mr. Xie for purchase of goods and services. During the year ended June 30, 2019, the Company obtained a loan in the amount of $1,351,969 from one of its shareholders free of interest; this amount was repaid by June 30, 2019. On June 21, 2021, the Company granted 6,000 ordinary shares to three of its independent directors (2,000 shares for each director) as their compensations at a fair value of $213,840 (ordinary shares of $1 and additional paid-in capital of $213,839). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS Equity transfer agreements On June 23, 2021, the Company’s affiliated variable interest entity, Fumao entered into an equity transfer agreement (the “Equity Transfer Agreement”) with Fuzhou Gulou Jiajiale Family Service Co. Ltd. (“Jiajiale”), pursuant to which to Fumao will acquire 100% of equity interests of Jiajiale in cash. On July 15, 2021, the Company’s affiliated variable interest entity, E-Home Pingtan entered into a farm transfer agreement (the “Farm Transfer Agreement”) with Ms. Ling Chen, pursuant to which E-Home Pingtan or a designated third party will acquire 100% of all tangible and intangible assets of Danyang Situ Fengyi Farm in cash from Ms. Chen. On August 10, 2021, the Company’s affiliated variable interest entity, E-Home Pingtan entered into (i) an equity transfer agreement to acquire 33% equity interests of Fujian Happiness Yijia in cash; (ii) an equity transfer agreement to acquire 100% equity interests of Fujian Jin Ri Dao Jia Technology Co., Ltd. in cash; and (iii) an equity transfer agreement to acquire 55% equity interests of Fujian Zhi Xie Education Technology Development Co., Ltd. and 55% equity interests of Fuzhou Ju Shang Enterprise Management Consulting Co., Ltd. in cash. On September 22, 2021, the Company’s affiliated variable interest entity, E-Home Pingtan entered into an equity transfer agreement to acquire 51% equity interests of Fuzhou Sijie Cleaning Service Co., Ltd. in cash. The transactions to acquire 33% equity interests of Fujian Happiness Yijia was closed and E-Home Pingtan owns 100% of the equity interest of Fujian Happiness Yijia. Other transactions were still pending, and the Company had not made deposits for these transactions. The Company expects these acquisitions to be closed within 12 months after the issuance date of the financial statements. Dissolution of the Company’s variable interest entity structure On October 18, 2021, E-Home WFOE entered into an equity transfer agreement with each of E-Home Pingtan and Fuzhou Bangchang and their respective shareholders, pursuant to which E-Home WFOE exercised the options to acquire all of the equity interests in each of E-Home Pingtan and Fuzhou Bangchang from their respective shareholders. Upon the registration of the equity transfers with the local governmental authorities as of October 27, 2021, the equity transfers were closed, our company’s VIE structure was dissolved and each of E-Home Pingtan and Fuzhou Bangchang became a wholly owned indirect subsidiary of the Company. E-Home Pingtan is a holding company of the following subsidiaries: (i) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd., a limited liability company established under the laws of the PRC on October 12, 2004; (ii) 100% of the equity interests of Fujian Happiness Yijia Family Service Co., Ltd., a limited liability company established under the laws of the PRC on January 19, 2015; and (iii) 51% of the equity interests of Yaxing Human Resource Management (Pingtan) Co., Ltd., a limited liability company established under the laws of the PRC on July 6, 2018. E-Home Pingtan also holds 20% of the equity interests of Fuzhou Fumao Health Science and Technology Co., Ltd. (“Fuzhou Fumao”), previously named Fuzhou Yiyanbao Information Technology Co., Ltd., a limited liability company established under the laws of the PRC on August 12, 2016. E-Home Pingtan reduced its shareholding in Fuzhou Fumao from 67% to 20% as of September 15, 2021 by completing the registration of the transfer of 47% equity interests in Fuzhou Fumao to certain individuals with local governmental authorities. As of September 15, 2021, Fuzhou Fumao had nominal operations and E-Home Pingtan had not made capital contributions to it. On June 23, 2021, Fuzhou Fumao entered into an equity transfer agreement with Fuzhou Gulou Jiajiale Family Service Co. Ltd. (“Jiajiale”), pursuant to which Fuzhou Fumao agreed to acquire 100% of equity interests of Jiajiale in cash. As of the date of the issuance of the financial statements, such acquisition has not closed yet. In accordance with ASC 855-10, the Company evaluated all events and transactions that occurred after June 30, 2021 up through the date the Company issued these financial statements on October 29, 2021 and concluded that no other material subsequent events except for the disclosed above. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 21 –CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The following is the condensed financial information of the Company on a parent company only basis. E-Home Household Service Holdings Limited Consolidated Balance Sheets As of June 30, 2021 and 2020 As of June 30, 2021 2020 ASSETS Cash and cash equivalents $ 4,844,328 $ - Prepayments, deposits and other current assets 6,510,000 - Investment in subsidiaries and VIEs 52,957,959 32,762,819 Total assets $ 64,312,287 $ 32,762,819 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ - $ - SHAREHOLDERS’ EQUITY Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively 3,359 2,800 Additional paid-in capital 25,542,531 3,667,957 Retained earnings 37,468,382 31,059,450 Accumulated other comprehensive loss 1,298,015 (1,967,388 ) Total equity of the Company’s shareholders 64,312,287 32,762,819 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 64,312,287 $ 32,762,819 E-Home Household Service Holdings Limited Consolidated Statements of Operations and Other Comprehensive Income For the Years Ended June 30, 2021, 2020 and 2019 For the Years Ended June 30, 2021 2020 2019 Share of income of subsidiaries and VIEs $ 10,989,394 $ 5,649,451 $ 10,233,775 Loss of the parent company (4,580,462 ) - - Net income $ 6,408,932 $ 5,649,451 $ 10,233,775 Other comprehensive income (loss): - - Foreign currency translation adjustment, net of nil tax $ 3,265,403 $ (837,040 ) $ (729,348 ) Total comprehensive income $ 9,674,335 $ 4,812,411 $ 9,504,427 (a) Basis of Presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIEs. The parent company records its investment in its subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the condensed balance sheets as “Investment in subsidiaries and VIEs” and their respective profit or loss as “Share of profit in subsidiaries and VIEs” on the condensed statements of income. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary and VIE is reduced to zero unless the parent company has guaranteed obligations of the subsidiary and VIE or is otherwise committed to provide further financial support. If the subsidiary and VIE subsequently report net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended. The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. (b) Shareholders’ Equity On September 24, 2018, the Company issued 50,000 ordinary shares with par value of $1 to its shareholders. On May 23, 2019, the Company subdivided its 50,000 ordinary shares into 500,000,000 ordinary shares. The authorized ordinary shares became 500,000,000 shares and the par value changed from US$1 to US$0.0001. On the same day, the Company cancelled 472,000,000 ordinary shares. As a result, the Company has 28,000,000 ordinary shares issued and outstanding. On May 18, 2021, the Company completed the closing of its initial public offering of 5,575,556 ordinary shares at a public offering price of $4.50 per ordinary share, including 20,000 ordinary shares issued upon the partial exercise of the over-allotment option by Joseph Stone Capital, LLC, who acted as the representative of underwriters for the initial public offering. The total gross proceed from the initial public offering was approximately $25.1 million before underwriting commissions and offering expenses. The total net proceed from the initial public offering was $21,661,293 (ordinary shares of $558 and additional paid-in capital of $21,660,735) after deducting the financing expenses directly related to the initial public offering. On June 21, 2021, the Company granted 6,000 ordinary shares to three of its independent directors (2,000 shares for each director) as their compensations at a fair value of $213,840 (ordinary shares of $1 and additional paid-in capital of $213,839). |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of accounting | Basis of accounting The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All significant transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on net earnings (loss) or and financial position. |
Use of estimates | Use of estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, prepayments, and other receivables, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets and provision necessary for contingent liabilities. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts receivable | Accounts receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of June 30, 2021 and 2020, the Company determined that all accounts receivable were collectible and thus the allowance for doubtful accounts were $0 and $0. |
Inventories | Inventories Inventories primarily include purchased accessories, appliances and E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress. Inventories as of June 30, 2021 and 2020 consisted of the following: 2021 2020 E-watches $ 246,778 $ 8,285 Accessories and appliances - 3,407 Total inventories, net $ 246,778 $ 11,692 For the years ended June 30, 2021, 2020, and 2019, the Company recorded no impairment provision of inventories for lower of cost or net realizable value, respectively. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets as follows: Useful Lives Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 Years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Intangible assets, net | Intangible assets, net Intangible assets consist of acquired software and senior care service app developed by the Company. The Company has purchased software from third parties used for operation management and developed an app for its senior care service. Software is initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of five to ten years. |
Leases | Leases Leases are classified at lease commencement date as either a finance lease or an operating lease. A lease is a finance lease if it meets any of the following criteria: (a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term. (b) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (c) the lease term is for the major part of the remaining economic life of the underlying asset, (d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or (e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria meets, the lease shall be classified as an operating lease. For lessee, a lease is recognized as a right-of-use asset with a corresponding liability at lease commencement date. The lease liability is calculated at the present value of the lease payments not yet paid by using the lease term and discount rate determined at lease commencement. The right-of-use asset is calculated as the lease liability, increased by any initial direct costs and prepaid lease payments, reduced by any lease incentives received before lease commencement. The right-of-use asset itself is amortized on a straight-line basis unless another systematic method better reflects how the underlying asset will be used by and benefits the lessee over the lease term. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The amendments in this ASU require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 effective as of the beginning of the first period presented by using a modified retrospective transition approach in the accompanying financial statements of the Company. The adoption of this standard had a material impact on the Company’s financial position, with no material impact on the results of operations and cash flows (see Note 7 and Note 8). The Company’s accounting policy is to recognize lease payments as rental expense for short-term leases less than 12 months. During the fiscal years ended June 30, 2021 and 2020, the Company recognized $44,419 and $65,702 in rental expense pertaining to two short-term leases. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets with carrying values that are not expected to be recovered through future cash flows are written down to their estimated fair values. The carrying value of a long-lived asset is deemed not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the asset’s carrying value exceeds the sum of its undiscounted cash flows, a non-cash asset impairment charges equal to the excess of the asset’s carrying value over its estimated fair value is recorded. Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. We measure fair value using market price indicators or, in the absence of such data, appropriate valuation technique. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument is defined as the exchange price that would be received from an asset or paid to transfer a liability (as exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, time deposits, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values because of the short maturity of these instruments and market rates of interest. ASC 820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets and liabilities. Level Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the carrying amount of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable to approximate the fair value of the respective assets and liabilities as of June 30, 2021 and 2020owing to their short-term or immediate nature. |
Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification No. 606, Revenue from Contracts with Customers The Company generates revenues primarily from installation & maintenance, housekeeping services and senior care services. The Company sells its services through a third-party service provider WeChat platform. The Company’s revenues are subject to value added tax (“VAT”). To record VAT payable, the Company uses the gross presentation method, which presents the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in accordance with the ASC 606. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could be materially different for any period if management made different judgments or utilized different estimates. Installation& maintenance Installation and maintenance services mainly consisting of the following services: technical home installation and repair, maintenance and other after sale services. Revenues from installation and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price. The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on the best estimate of selling price. The Company, acting as principal, contracts with third-party service providers (i.e., service outlets), acting as agents. The Company is responsible for market development and providing the customer information to the service provider, directing the outlet to provide services and coordination with the customer, while the service provider provides the door-to-door service. The price of services is set by the Company and the service provider is only responsible for collection of payments. When the Company’s end customers place orders online for services, they pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay and Alipay. The Company chooses the service provider by the proximity principle. If the customer is not satisfied with the chosen provider, the service provider can be re-selected. Regardless of the service provider’s performance, the Company is still liable to complete the orders. If the end customer fails to pay after satisfactory service is provided and the service provider is unable to collect payment from the end customer, the Company will communicate directly with the end customer. The service provider is not obligated to pay the Company. To minimize our risk, the service provider will remit payment of any outstanding receivables each month. Housekeeping services Housekeeping services refer to services including housecleaning, nanny service, maternity matron and personnel staffing. Revenues from housekeeping are recognized at a point in time upon completion of services to the customer based on the relative selling price method. Senior care services Senior care services refer to services including BP, heart rate test, daily steps count, location and track record, call for help by Wechat or phone, and other care services rendered to senior customers through an E-watch, which is given to the customers when they pay the annual fees. The customers sign a contract for the services with the Company. The contract term is normally one year. The revenues from senior care services are allocated into the revenue from the E-watch sold and the revenue of the services provided. Revenues from the E-watch sold are recognized at a point in time once customers receive the E-watch and the revenues of the services provided are recognized over the service period. Disaggregation of revenue from contracts with customers The senior care services consist of the sale of E-watch and the care services. The E-watch cannot be sold to the customers solely without the care services, and the care services should be rendered by the E-watch. Consequently, the Company regards these operating activities as operating in one material segment, being the revenue of senior care services. Sublease The Company subleases its operating leased right-of-use hotel. For the years ended June 30, 2021, 2020 and 2019, the sublease income of operating lease right-of-use assets were $147,663, $214,319 and $183,903, respectively. |
Cost of revenues | Cost of revenues Cost of revenues consists of service fees paid to staff, outlets, suppliers and the cost of accessories sold. |
Government subsidies | Government subsidies Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies are recognized when received and all the conditions for their receipt have been met. For the years ended June 30, 2021, 2020 and 2019, the Company received government subsidies of $908,051, $0 and $0, respectively. The grants were recorded as other income in the consolidated financial statements. |
Income taxes | Income taxes Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. |
Ordinary shares | Ordinary shares The Company accounts for repurchased ordinary shares under the cost method and includes such treasury stock as a component of the common shareholders’ equity. Cancellation of treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital and retained earnings, as applicable. An excess of purchase price over par value is allocated to additional paid-in capital first with any remaining excess charged entirely to retained earnings. |
Related parties | Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no potentially dilutive ordinary shares during the fiscal years ended June 30, 2021, 2020 and 2019. |
Comprehensive income/ (loss) | Comprehensive income/ (loss) ASC Topic 220 establishes standards for reporting comprehensive income and its components. Comprehensive income or loss is defined as the change in equity during a period from transactions and other events from non-owner sources. During the fiscal years ended June 30, 2021, 2020 and 2019, foreign currency translation gain (loss) adjustments of $3,261,889, ($843,850) and ($762,728), respectively, were recognized as a component of accumulated other comprehensive income (loss), respectively. |
Foreign currency translation | Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The consolidated financial statements are reported using U.S. Dollars. The results of operations and the statement of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments are included as a separate component of accumulated other comprehensive income (loss). The value of RMB against U.S. Dollar may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s consolidated financial condition in terms of U.S. Dollar reporting. The following table outlines the currency exchange rates that were used in the consolidated financial statements: June 30, June 30, June 30, Year-end spot rate US$1= 6.4601 RMB US$1= 7.0795 RMB US$1= 6.8747 RMB Average rate US$1= 6.6076 RMB US$1= 7.0293 RMB US$1= 6.8260 RMB |
Segment reporting | Segment reporting Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Company’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Company’s various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. The Company’s three segments are installation & maintenance, housekeeping and senior care services. Operation of senior care services began in August 2019. The Company started generating revenue from this new segment in August 2019. |
Commitments and contingencies | Commitments and contingencies The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. There are no known commitments or contingencies as of June 30, 2021 and 2020. |
Concentration of risks | Concentration of risks Exchange rate risks The Company’s Chinese subsidiaries may be exposed to significant foreign currency risks from exchange rate fluctuations and the degree of volatility of foreign exchange rates between the U.S. Dollar and the RMB. As of June 30, 2021 and 2020, the RMB denominated cash and cash equivalents amounted to $52,410,472 and $25,022,199, respectively. Currency convertibility risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of credit risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents and accounts receivable, the balances of which stated on the consolidated balance sheets represented the Company’s maximum exposure. The Company places its cash and cash equivalents in good credit quality financial institutions in China. |
Risks and Uncertainties | Risks and uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
Recent Accounting Pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning April 1, 2022. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. In August 2017, the FASB amended the existing accounting guidance for hedge accounting. The amendments require expanded hedge accounting for both non-financial and financial risk components and refine the measurement of hedge results to better reflect an entity’s hedging strategies. The new guidance also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The new guidance must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” which amends the FASB ASC and XBRL Taxonomy based on the Tax Cuts and Jobs Act, or the Act, that was signed into law on December 22, 2017 and Staff Accounting Bulletin No. 118 that was released by the SEC. The Act changes numerous provisions that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international tax consequences for many companies that operate internationally. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those periods, and all other entities should apply these amendments for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Company adopted the amendment on July 1, 2020 by using the modified retrospective method. The adoption had no impact on the Company’s statement of cash flows for the year ended June 30, 2021. The Company does not believe other recently issued but not yet effective accounting statements, if recently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of comprehensive income (loss) and statements of cash flows. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of major consolidated subsidiaries, VIEs and their subsidiaries | Name Date of Place of % of E-Home Household Service Holdings Limited October 16, 2018 Hong Kong 100 % E-Home Household Service Technology Co., Ltd. December 5, 2018 PRC 100 % Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. (E-Home Pingtan) April 1, 2014 PRC VIE Fuzhou Bangchang Technology Co. Ltd. March 15, 2007 PRC VIE Fuzhou Yongheng Xin Electric Co., Ltd. October 12, 2004 PRC 100 % Pingtan Comprehensive Experimental Zone Yili Sending Co., Ltd. August 13, 2015 PRC 67 % Fujian Happiness Yijia Family Service Co., Ltd. (“Fujian Happiness Yijia”) January 19, 2015 PRC 67 % Fuzhou Fumao Health Technology Co. Ltd. (“Fumao”, formerly Fuzhou Yiyanbao Information Technology Co., Ltd.) August 12, 2016 PRC 67 % Yaxing Human Resource Management (Pingtan) Co., Ltd. July 6, 2018 PRC 51 % |
Schedule of consolidated financial statements | As of June 30, 2021 2020 ASSETS Current assets Cash and cash equivalents $ 43,098,722 $ 25,022,199 Accounts receivable 826,683 1,774,792 Inventories 246,778 11,692 Prepayments, deposits and other current assets 6,340,844 1,891,869 Total current assets 50,513,027 28,700,552 Non-current assets Property, plant and equipment, net 45,288 53,042 Intangible assets, net 36,031 43,041 Operating lease – right-of-use assets, net 4,262,736 5,951,588 Finance lease – right-of-use assets, net 1,346,728 1,398,404 Long-term prepayments and other non-current assets 1,934,955 4,449,467 Deferred income tax assets 704,262 353,097 Total non-current assets 8,330,000 12,248,639 TOTAL ASSETS $ 58,843,027 $ 40,949,191 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $ 6,102,825 $ 2,973,141 Advance from customers 2,993,656 1,414,345 Taxes payable 2,220 8,025 Current maturities of operating lease liabilities 87,103 199,011 Current maturities of finance lease liabilities 59,098 51,353 Total current liabilities 9,244,902 4,645,875 Long-term portion of operating lease liabilities 2,147,252 3,117,124 Long-term portion of finance lease liabilities 442,670 457,867 TOTAL LIABILITIES 11,834,824 8,220,866 Commitments and contingencies - - SHAREHOLDERS’ EQUITY Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively - - Additional paid-in capital 3,670,757 3,670,757 Statutory reserve 664,100 664,100 Retained earnings 41,374,813 31,059,450 Accumulated other comprehensive loss 1,345,574 (1,967,388 ) Total equity attributable to shareholders 47,055,244 32,762,819 Non-controlling interest (47,041 ) (34,494 ) TOTAL SHAREHOLDERS’ EQUITY 47,008,203 32,728,325 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 58,843,027 $ 40,949,191 For the years ended June 30, 2021 2020 2019 Revenues $ 74,525,434 $ 46,200,949 $ 51,149,326 Net income $ 10,970,430 $ 5,648,008 $ 10,172,361 For the years ended June 30, 2021 2020 2019 Net cash provided by operating activities $ 16,629,083 $ 3,816,486 $ 9,240,128 Net cash provided by (used in) investing activities (1,952,081 ) (1,038,987 ) 382,434 Net cash provided by (used in) financing activities 685,614 (264,829 ) - Effects of currency translation 2,713,907 (719,843 ) (497,288) Net cash inflow $ 18,076,523 $ 1,792,827 $ 9,125,274 |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of inventories | 2021 2020 E-watches $ 246,778 $ 8,285 Accessories and appliances - 3,407 Total inventories, net $ 246,778 $ 11,692 |
Schedule of estimated useful lives of the assets | Useful Lives Office Equipment 5 Years Electronic Equipment 5 Years Motor Vehicles 10 Years |
Schedule of outlines the currency exchange rates | June 30, June 30, June 30, Year-end spot rate US$1= 6.4601 RMB US$1= 7.0795 RMB US$1= 6.8747 RMB Average rate US$1= 6.6076 RMB US$1= 7.0293 RMB US$1= 6.8260 RMB |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | 2021 2020 Accounts receivable, gross $ 826,683 $ 1,774,792 Less: allowance for doubtful accounts - - Accounts receivable, net $ 826,683 $ 1,774,792 |
Prepayments, Deposits and Oth_2
Prepayments, Deposits and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Prepayment And Other Current Assets [Abstract] | |
Schedule of prepayments, deposits and other current assets | 2021 2020 Deposits made for potential acquisitions* $ 3,400,000 $ - Prepaid for marketing fee 2,333,358 706,265 Performance deposits** 2,167,149 - Prepaid consulting services fee 2,110,000 - Prepaid office deposit 1,931,107 17,077 Prepaid income tax expenses 315,015 18,385 Prepaid office rental fee 26,006 - Prepaid IPO cost - 965,357 Other current assets - 184,785 Total prepayments, deposits and other current assets $ 12,282,665 $ 1,891,869 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | 2021 2020 Office Equipment $ 10,665 $ 9,732 Electronic Equipment 74,845 64,897 Motor Vehicles 315,964 52,710 Total property, plant and equipment, at cost 401,474 127,339 Less: accumulated depreciation (97,986 ) (74,297 ) Property, plant and equipment, net $ 303,488 $ 53,042 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | 2021 2020 Software $ 18,485 $ 16,868 Senior care service App 46,439 42,376 Less: accumulated amortization (28,893 ) (16,203 ) Intangible assets, net $ 36,031 $ 43,041 |
Schedule of estimated future amortization expense | Years ending March 31, Amortization 2022 $ 10,888 2023 10,888 2024 10,888 2025 3,367 2026 - Thereafter - $ 36,031 |
Operating Lease Right-of-Use _2
Operating Lease Right-of-Use Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of operating lease right -of-use assets | As of Increase (Decrease) Exchange Rate As of Shou Hill Valley Area $ 2,118,794 $ - $ 203,151 $ 2,321,945 Villas 2,091,284 - 200,514 2,291,798 Hotel 2,225,557 (2,438,945 ) 213,388 - Base Station Tower 246,819 - 23,665 270,484 Total right-of-use assets, at cost 6,682,454 (2,438,945 ) 640,719 4,884,227 Less: accumulated amortization (730,866 ) 179,450 (70,075 ) (621,491 ) Right-of-use assets, net $ 5,951,588 $ (2,259,495 ) $ 570,643 $ 4,262,736 |
Finance Lease Right-of-Use As_2
Finance Lease Right-of-Use Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Finance Lease Right of Use Assets Table [Abstract] | |
Schedule of finance lease right -of-use assets | As of Increase/ Exchange Rate As of Company vehicles $ 1,695,035 $ - $ 162,521 $ 1,857,556 Total right-of-use assets, at cost 1,695,035 - 162,521 1,857,556 Less: accumulated amortization (296,631 ) (181,610 ) (32,587 ) (510,828 ) Right-of-use assets, net $ 1,398,404 $ (181,610 ) $ 129,934 $ 1,346,728 |
Long-Term Prepayments and Oth_2
Long-Term Prepayments and Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Long-Term Prepayments and Other Non-Current Assets Table [Abstract] | |
Schedule of long-term prepayments and other non-current assets | 2021 2020 Deposits paid for lease assets $ 386,991 $ 353,132 Deposits paid for land 1,547,964 1,412,529 Performance deposits* - 2,683,806 Total $ 1,934,955 $ 4,449,467 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | 2021 2020 Payable to suppliers $ 3,657,700 $ 2,629,626 Salary and welfare payables 614,355 239,726 Accrued expenses and other current liabilities 85,498 103,789 Total 4,357,553 2,973,141 |
Advance from Customers (Tables)
Advance from Customers (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Advance from Customers Table [Abstract] | |
Schedule of advance from customer | 2021 2020 Advance from customers $ 2,993,656 $ 1,414,345 Total $ 2,993,656 $ 1,414,345 |
Operating Lease Liabilities (Ta
Operating Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Operating Lease Liabilities [Abstract] | |
Schedule of operating lease liabilities | As of As of Villas* $ 1,951,867 $ 1,710,553 Hotel** - 1,383,040 Base Station Tower*** 282,488 222,542 Total operating lease liabilities $ 2,234,355 $ 3,316,135 |
Schedule of analyzed for reporting purposes | As of As of Long-term portion of operating lease liabilities $ 2,147,252 $ 3,117,124 Current maturities of operating lease liabilities 87,103 199,011 Total $ 2,234,355 $ 3,316,135 |
Schedule of maturity analysis of operating lease liabilities | Operating lease payment Villas Base station tower Total undiscounted cash flows Discount rate at commencement 4.1239 % 3.1365 % One year $ - $ 30,959 $ 30,959 Two years 766,242 30,959 797,201 Three years - 30,959 30,959 Four years - 30,959 30,959 Five years - 30,959 30,959 Beyond five years 1,770,020 92,877 1,862,897 Total undiscounted cash flows $ 2,536,262 $ 247,672 $ 2,783,934 Total financing lease liabilities 1,951,867 282,488 2,234,355 Difference between undiscounted cash flows and discounted cash flows 584,395 (34,816 ) 549,579 |
Finance Lease Liabilities (Tabl
Finance Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Finance Lease Liabilities [Abstract] | |
Schedule of financing lease liabilities | As of Increase/ (Decrease) Payment Exchange Rate Translation As of Company vehicles $ 461,728 $ - $ (80,531 ) $ 44,178 $ 425,375 Add: Unrecognized finance expense 47,492 25,509 - 3,392 76,393 Total financing lease liabilities $ 509,220 $ 25,509 $ (80,531 ) $ 47,570 $ 501,768 |
Schedule of financing lease liabilities for reporting purposes | As of As of Long-term portion of finance lease liabilities $ 442,670 $ 457,867 Current maturities of finance lease liabilities 59,098 51,353 Total $ 501,768 $ 509,220 |
Schedule of maturity analysis of financial lease liabilities | Financial lease payments Company vehicles Discount rate at commencement 4.9 % One year $ 82,369 Two years 82,369 Three years 82,369 Four years 82,369 Five years 82,369 Beyond five years 185,330 Total undiscounted cash flows $ 597,175 Total financing lease liabilities 501,768 Difference between undiscounted cash flows and discounted cash flows 95,407 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income tax | 2021 2020 2019 Current income tax provision $ 2,968,362 $ 2,251,672 $ 3,565,146 Deferred income tax provision 704,262 353,097 - Total $ 3,672,624 $ 1,898,575 $ 3,565,146 |
Schedule of statutory EIT rate and the effective tax | 2021 2020 2019 Income before income taxes $ 10,072,523 $ 7,546,583 $ 13,737,507 Provision for income taxes at statutory tax rate in the PRC 3,660,090 1,886,646 3,434,377 Effect of income for which no income tax is chargeable - - - Effect of expense for which no income tax is deductible 12,534 11,929 130,769 Reversal of deficit - - - Effective tax $ 3,672,624 $ 1,898,575 $ 3,565,146 |
Schedule of deferred tax asset | June 30, June 30, Deferred tax assets Senior care services fees advanced from customers $ 704,262 353,097 Total $ 704,262 353,097 |
Schedule of taxes payable | 2021 2020 Income tax payable $ - $ - VAT payable 332 5,797 Other tax payables (other payables and accrued liabilities) 1,888 2,228 Total $ 2,220 $ 8,025 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating segments information | Revenue 2021 2020 2019 Installation and Maintenance $ 51,546,235 $ 32,220,898 $ 40,460,351 Housekeeping 16,792,722 11,704,899 10,505,072 Senior care services 6,038,814 2,060,833 - Sublease 147,663 214,319 183,903 Total $ 74,525,434 $ 46,200,949 $ 51,149,326 Cost of revenue 2021 2020 2019 Installation and Maintenance $ 32,209,179 $ 19,484,927 $ 23,702,317 Housekeeping 13,435,869 8,901,973 8,069,009 Senior care services 2,666,350 1,714,172 - Sublease - - - Total $ 48,311,398 $ 30,101,072 $ 31,771,326 Gross profit 2021 2020 2019 Installation and Maintenance $ 19,337,056 $ 12,735,971 $ 16,758,034 Housekeeping 3,356,853 2,802,926 2,436,063 Senior care services 3,372,464 346,661 - Sublease 147,663 214,319 183,903 Total $ 26,214,036 $ 16,099,877 $ 19,378,000 Sales and marketing expenses 2021 2020 2019 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 10,279,274 7,514,211 4,101,960 Total $ 10,279,274 $ 7,514,211 $ 4,101,960 General and administrative expenses 2021 2020 2019 Installation and Maintenance $ - $ - $ - Housekeeping - - - Senior care services - - - Sublease - - - Unallocated 6,869,419 1,114,984 1,554,523 Total $ 6,869,419 $ 1,114,984 $ 1,554,523 Current assets 2021 2020 Installation and Maintenance $ - $ - Housekeeping - - Senior care services - - Sublease - - Unallocated current assets 65,766,598 28,700,552 Total $ 65,766,598 $ 28,700,552 Non-current assets 2021 2020 Installation and Maintenance $ - $ - Housekeeping - - Senior care services 4,966,998 6,304,720 Sublease - 1,885,890 Unallocated non-current assets 3,621,202 4,058,029 Total $ 8,588,200 $ 12,248,639 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Future Lease Payments Operating Lease Finance Lease Capital Expenditure Total July 2021 to June 2022 $ 30,959 $ 82,369 2,786,335 $ 2,899,663 July 2022 to June 2023 797,202 82,369 - 879,570 July 2023 to June 2024 30,959 82,369 - 113,328 July 2024 to June 2025 30,959 82,369 - 113,328 Thereafter 1,893,856 267,698 - 2,161,554 Total $ 2,783,935 $ 597,173 2,786,335 $ 6,167,443 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company balance sheets | As of June 30, 2021 2020 ASSETS Cash and cash equivalents $ 4,844,328 $ - Prepayments, deposits and other current assets 6,510,000 - Investment in subsidiaries and VIEs 52,957,959 32,762,819 Total assets $ 64,312,287 $ 32,762,819 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ - $ - SHAREHOLDERS’ EQUITY Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively 3,359 2,800 Additional paid-in capital 25,542,531 3,667,957 Retained earnings 37,468,382 31,059,450 Accumulated other comprehensive loss 1,298,015 (1,967,388 ) Total equity of the Company’s shareholders 64,312,287 32,762,819 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 64,312,287 $ 32,762,819 |
Schedule of income and comprehensive income | For the Years Ended June 30, 2021 2020 2019 Share of income of subsidiaries and VIEs $ 10,989,394 $ 5,649,451 $ 10,233,775 Loss of the parent company (4,580,462 ) - - Net income $ 6,408,932 $ 5,649,451 $ 10,233,775 Other comprehensive income (loss): - - Foreign currency translation adjustment, net of nil tax $ 3,265,403 $ (837,040 ) $ (729,348 ) Total comprehensive income $ 9,674,335 $ 4,812,411 $ 9,504,427 |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Organization and Nature of Operations (Details) [Line Items] | ||
Incorporation date | Sep. 24, 2018 | |
Equity ownership entity percentage | 100.00% | |
Description of holding company | (i) 100% of the equity interests of Pingtan Comprehensive Experimental Zone Chuangkejin Enterprise Management Co., Ltd. (“CKJ”), a limited liability company established under the laws of the PRC on August 13, 2015, which was subsequently dissolved on November 1, 2018; (ii) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd. (“YHX”), a limited liability company established under the laws of the PRC on October 12, 2004; (iii) 100% of the equity interests of Yichang Yijia Fast Service Home Service Co., Ltd. (“YJJJ”), a limited liability company established under the laws of the PRC on April 24, 2015, which was subsequently dissolved on September 18, 2017; (iv) 67% of the equity interests of Pingtan Comprehensive Experimental Zone Yili Sending Co., Ltd. (“YLS”), a limited liability company established under the laws of the PRC on August 13, 2015, which was subsequently dissolved on April 26, 2020; (v) 67% of the equity interests of Fujian Happiness Yijia Family Service Co., Ltd. (“HAPPY”), a limited liability company established under the laws of the PRC on January 19, 2015; (vi) 67% of the equity interests of Fuzhou Yiyanbao Information Technology Co., Ltd. (“YYB”), a limited liability company established under the laws of the PRC on August 13, 2016; (vii) 51% of the equity interests of Fuzhou Yijia KuaiFu Investment Consulting Co., Ltd. (“YJZX”), a limited liability company established under the laws of the PRC on June 1, 2018, which was subsequently dissolved on December 11, 2018; and (viii) 51% of the equity interests of Yaxing Human Resource Management (Pingtan) Co., Ltd. (“HR”), a limited liability company established under the laws of the PRC on July 6, 2018. YYB and HR have not yet commenced operations. | |
Description of exclusive option agreements | Under the Exclusive Option Agreement among WFOE, E-Home Pingtan and its shareholders, dated February 22, 2019, and the Exclusive Option Agreement among WFOE, Fuzhou Bangchang and its shareholders, dated February 20, 2019, the shareholders irrevocably granted WFOE or any third party designated by WFOE an exclusive option to purchase all or part of their equity interests in E-Home Pingtan and Fuzhou Bangchang at a price of RMB 10; provided that if the lowest price permitted by applicable PRC laws is greater than RMB 10, then that price shall apply. The shareholders further agreed that they will neither create any pledge or encumbrance on their equity interests in E-Home Pingtan and Fuzhou Bangchang, nor transfer, gift or otherwise dispose of their equity interests in E-Home Pingtan and Fuzhou Bangchang to any person other than WFOE or its designated third party. The shareholders and E-Home Pingtan and Fuzhou Bangchang agreed that they will operate the businesses in the ordinary course and maintain the asset value of E-Home Pingtan and Fuzhou Bangchang and refrain from any actions or omissions that may affect their operating status and asset value. Furthermore, without WFOE’s prior written consent, the shareholders and E-Home Pingtan and Fuzhou Bangchang agreed not to, among other things: amend the articles of association of E-Home Pingtan and Fuzhou Bangchang; increase or decrease the registered capital of E-Home Pingtan and Fuzhou Bangchang; sell, transfer, mortgage or dispose of in any manner any material assets of E-Home Pingtan and Fuzhou Bangchang or legal or beneficial interest in the material business or revenues of E-Home Pingtan and Fuzhou Bangchang of more than RMB 10,000,000; enter into any major contracts, except for contracts in the ordinary course of business (a contract with a price exceeding RMB 500,000 shall be deemed a major contract); merge, consolidate with, acquire or invest in any person, or provide any loans; or distribute dividends. | |
Variable interest entity consolidated revenues percentage | 100.00% | 100.00% |
Variable interest entity accounted percentage | 79.00% | 100.00% |
Variable interest entity total assets percentage | 117.00% | 100.00% |
E-Home Hong Kong [Member] | ||
Organization and Nature of Operations (Details) [Line Items] | ||
Equity ownership entity percentage | 100.00% |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of major consolidated subsidiaries, VIEs and their subsidiaries | 12 Months Ended |
Jun. 30, 2021 | |
E-Home Household Service Holdings Limited [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Oct. 16, 2018 |
Place of Organization | Hong Kong |
% of Ownership | 100.00% |
E-Home Household Service Technology Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Dec. 5, 2018 |
Place of Organization | PRC |
% of Ownership | 100.00% |
Pingtan Comprehensive Experimental Area E Home Service Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Apr. 1, 2014 |
Place of Organization | PRC |
% of Ownership | VIE |
Fuzhou Bangchang Technology Co. Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Mar. 15, 2007 |
Place of Organization | PRC |
% of Ownership | VIE |
Fuzhou Yongheng Xin Electric Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Oct. 12, 2004 |
Place of Organization | PRC |
% of Ownership | 100.00% |
Pingtan Comprehensive Experimental Zone Yili Sending Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Aug. 13, 2015 |
Place of Organization | PRC |
% of Ownership | 67.00% |
Fujian Happiness Yijia Family Service Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Jan. 19, 2015 |
Place of Organization | PRC |
% of Ownership | 67.00% |
Fuzhou Yiyanbao Information Technology Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Aug. 12, 2016 |
Place of Organization | PRC |
% of Ownership | 67.00% |
Yaxing Human Resource Management (Pingtan) Co., Ltd. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of Organization | Jul. 6, 2018 |
Place of Organization | PRC |
% of Ownership | 51.00% |
Organization and Nature of Op_5
Organization and Nature of Operations (Details) - Schedule of consolidated financial statements - VIE [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 43,098,722 | $ 25,022,199 | |
Accounts receivable | 826,683 | 1,774,792 | |
Inventories | 246,778 | 11,692 | |
Prepayments, deposits and other current assets | 6,340,844 | 1,891,869 | |
Total current assets | 50,513,027 | 28,700,552 | |
Non-current assets | |||
Property, plant and equipment, net | 45,288 | 53,042 | |
Intangible assets, net | 36,031 | 43,041 | |
Operating lease – right-of-use assets, net | 4,262,736 | 5,951,588 | |
Finance lease – right-of-use assets, net | 1,346,728 | 1,398,404 | |
Long-term prepayments and other non-current assets | 1,934,955 | 4,449,467 | |
Deferred income tax assets | 704,262 | 353,097 | |
Total non-current assets | 8,330,000 | 12,248,639 | |
TOTAL ASSETS | 58,843,027 | 40,949,191 | |
Current liabilities | |||
Accounts payable and accrued expenses | 6,102,825 | 2,973,141 | |
Advance from customers | 2,993,656 | 1,414,345 | |
Taxes payable | 2,220 | 8,025 | |
Current maturities of operating lease liabilities | 87,103 | 199,011 | |
Current maturities of finance lease liabilities | 59,098 | 51,353 | |
Total current liabilities | 9,244,902 | 4,645,875 | |
Long-term portion of operating lease liabilities | 2,147,252 | 3,117,124 | |
Long-term portion of finance lease liabilities | 442,670 | 457,867 | |
TOTAL LIABILITIES | 11,834,824 | 8,220,866 | |
Commitments and contingencies | |||
SHAREHOLDERS’ EQUITY | |||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively | |||
Additional paid-in capital | 3,670,757 | 3,670,757 | |
Statutory reserve | 664,100 | 664,100 | |
Retained earnings | 41,374,813 | 31,059,450 | |
Accumulated other comprehensive loss | 1,345,574 | (1,967,388) | |
Total equity attributable to shareholders | 47,055,244 | 32,762,819 | |
Non-controlling interest | (47,041) | (34,494) | |
TOTAL SHAREHOLDERS’ EQUITY | 47,008,203 | 32,728,325 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 58,843,027 | 40,949,191 | |
Revenues | 74,525,434 | 46,200,949 | $ 51,149,326 |
Net income | 10,970,430 | 5,648,008 | 10,172,361 |
Net cash provided by operating activities | 16,629,083 | 3,816,486 | 9,240,128 |
Net cash provided by (used in) investing activities | (1,952,081) | (1,038,987) | 382,434 |
Net cash provided by (used in) financing activities | 685,614 | (264,829) | |
Effects of currency translation | 2,713,907 | (719,843) | (497,288) |
Net cash inflow | $ 18,076,523 | $ 1,792,827 | $ 9,125,274 |
Organization and Nature of Op_6
Organization and Nature of Operations (Details) - Schedule of consolidated financial statements (Parentheticals) - VIE [Member] - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Variable Interest Entity [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, issued | 33,581,556 | 28,000,000 |
Ordinary shares, outstanding | 33,581,556 | 28,000,000 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Significant Accounting Policies (Details) [Line Items] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Rental expense | 44,419 | 65,702 | |
Total revenue | 74,525,434 | 46,200,949 | $ 51,149,326 |
Company received government subsidies | 908,051 | 0 | 0 |
Foreign currency translation gain (loss) adjustment | $ 3,261,889 | (843,850) | (762,728) |
Number of segments | 3 | ||
Cash equivalents | $ 52,410,472 | 25,022,199 | |
Sublease [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Total revenue | $ 147,663 | $ 214,319 | $ 183,903 |
Minimum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 5 years | ||
Maximum [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful lives | 10 years |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of inventories - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory [Line Items] | ||
Total inventories, net | $ 246,778 | $ 11,692 |
E-watches [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | 246,778 | 8,285 |
Accessories and appliances [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | $ 3,407 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets | 12 Months Ended |
Jun. 30, 2021 | |
Office Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 5 years |
Electronic Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 5 years |
Motor Vehicles [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets [Line Items] | |
Useful Lives | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of outlines the currency exchange rates | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Schedule of outlines the currency exchange rates [Abstract] | |||
Year-end spot rate | 6.4601 | 7.0795 | 6.8747 |
Average rate | 6.6076 | 7.0293 | 6.826 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable, gross | $ 826,683 | $ 1,774,792 |
Less: allowance for doubtful accounts | ||
Accounts receivable, net | $ 826,683 | $ 1,774,792 |
Prepayments, Deposits and Oth_3
Prepayments, Deposits and Other Current Assets (Details) | 1 Months Ended | ||
Apr. 30, 2021USD ($) | Jun. 01, 2021USD ($) | May 28, 2021USD ($) | |
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | |||
Number of agreements | 2 | ||
Prepaid deposit for acquisitions | $ 1,800,000 | $ 600,000 | $ 1,000,000 |
Fujian Ruiquan Care Services Co., Ltd. [Member] | |||
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | |||
Ownership percentage | 55.00% | ||
South Pacific [Member] | |||
Prepayments, Deposits and Other Current Assets (Details) [Line Items] | |||
Ownership percentage | 30.00% |
Prepayments, Deposits and Oth_4
Prepayments, Deposits and Other Current Assets (Details) - Schedule of prepayments, deposits and other current assets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of prepayments, deposits and other current assets [Abstract] | |||
Deposits made for potential acquisitions* | [1] | $ 3,400,000 | |
Prepaid for marketing fee | 2,333,358 | 706,265 | |
Performance deposits** | [2] | 2,167,149 | |
Prepaid consulting services fee | 2,110,000 | ||
Prepaid office deposit | 1,931,107 | 17,077 | |
Prepaid income tax expenses | 315,015 | 18,385 | |
Prepaid office rental fee | 26,006 | ||
Prepaid IPO cost | 965,357 | ||
Other current assets | 184,785 | ||
Total prepayments, deposits and other current assets | $ 12,282,665 | $ 1,891,869 | |
[1] | On April 30, 2021, the Company entered into two agreements with Premium Bright Corporate Advisory Limited (“Premium”) in which Premium will find target companies for the Company to acquire in order to expand its business to the financial lending services. The Company prepaid deposit for the acquisitions of $1,800,000 to Premium. On May 28, 2021, the Company entered into an agreement with Yuwin Group Limited (“Yuwin”) in which Yuwin will provide advisory service to acquire 55% ownership of Fujian Ruiquan Care Services Co., Ltd. The Company prepaid deposit for the acquisitions of $1,000,000 to Yuwin in June 2021. In August 2021, the acquisition was terminated and Yuwin returned the deposit to the Company. On June 1, 2021, the Company entered into an equity transfer agreement with the shareholder of South Pacific Holding Group Limited (“South Pacific”) in which the Company will acquire 30% ownership of South Pacific. The Company prepaid deposit for the acquisitions of $600,000 to South Pacific in June 2021. In July 2021, the transfer agreement was terminated and South Pacific returned the deposit to the Company. | ||
[2] | E-Home Pingtan entered into three agreements with three new outlets for business cooperation purpose. This refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets will repay the deposits to E-Home Pingtan in case of termination of the agreements. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 16,196 | $ 16,856 | $ 18,165 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment, net - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 401,474 | $ 127,339 |
Less: accumulated depreciation | (97,986) | (74,297) |
Property, plant and equipment, net | 303,488 | 53,042 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 10,665 | 9,732 |
Electronic Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 74,845 | 64,897 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 315,964 | $ 52,710 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses of intangible assets | $ 10,888 | $ 9,523 | $ 1,535 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (28,893) | $ (16,203) |
Intangible assets, net | 36,031 | 43,041 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 18,485 | 16,868 |
Senior care service App [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 46,439 | $ 42,376 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of estimated future amortization expense [Abstract] | ||
2022 | $ 10,888 | |
2023 | 10,888 | |
2024 | 10,888 | |
2025 | 3,367 | |
2026 | ||
Thereafter | ||
Total | $ 36,031 | $ 43,041 |
Operating Lease Right-of-Use _3
Operating Lease Right-of-Use Assets, Net (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | May 31, 2021 | |
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | ||||
Amount of operating lease right-of-use assets | $ 147,663 | $ 214,319 | $ 183,903 | |
Disposal of the right-of-use asset | $ 489,178 | |||
Shou Hill Valley Area [Member] | ||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | ||||
Number of operating leases right-of-use assets | 20 years | |||
Hotel [Member] | ||||
Operating Lease Right-of-Use Assets, Net (Details) [Line Items] | ||||
Number of operating leases right-of-use assets | 10 years |
Operating Lease Right-of-Use _4
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | $ 6,682,454 |
Increase/(Decrease) in right-of-use assets, at cost | (2,438,945) |
Exchange Rate Translation of right-of-use assets, at cost | 640,719 |
Ending balance of total right-of-use assets, at cost | 4,884,227 |
Increase /(Decrease) in right-of-use assets, at cost | (2,438,945) |
Beginning balance of accumulated amortization | (730,866) |
Increase /(Decrease) in accumulated amortization | 179,450 |
Exchange Rate Translation of right-of-use assets, at cost | (70,075) |
Ending balance of accumulated amortization | (621,491) |
Beginning balance of right-of-use assets, net | 5,951,588 |
Increase /(Decrease) in right-of-use assets, net | (2,259,495) |
Exchange Rate Translation of right-of-use assets, net | 570,643 |
Ending balance of right-of-use assets, net | 4,262,736 |
Shou Hill Valley Area [Member] | |
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 2,118,794 |
Increase/(Decrease) in right-of-use assets, at cost | |
Exchange Rate Translation of right-of-use assets, at cost | 203,151 |
Ending balance of total right-of-use assets, at cost | 2,321,945 |
Increase /(Decrease) in right-of-use assets, at cost | |
Villas [Member] | |
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 2,091,284 |
Increase/(Decrease) in right-of-use assets, at cost | |
Exchange Rate Translation of right-of-use assets, at cost | 200,514 |
Ending balance of total right-of-use assets, at cost | 2,291,798 |
Increase /(Decrease) in right-of-use assets, at cost | |
Hotel [Member] | |
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 2,225,557 |
Increase/(Decrease) in right-of-use assets, at cost | (2,438,945) |
Exchange Rate Translation of right-of-use assets, at cost | 213,388 |
Ending balance of total right-of-use assets, at cost | |
Increase /(Decrease) in right-of-use assets, at cost | (2,438,945) |
Base Station Tower [Member] | |
Operating Lease Right-of-Use Assets, Net (Details) - Schedule of operating lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 246,819 |
Increase/(Decrease) in right-of-use assets, at cost | |
Exchange Rate Translation of right-of-use assets, at cost | 23,665 |
Ending balance of total right-of-use assets, at cost | 270,484 |
Increase /(Decrease) in right-of-use assets, at cost |
Finance Lease Right-of-Use As_3
Finance Lease Right-of-Use Assets, Net (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Finance Lease Right of Use Assets (Textual) | |
Term of right of use asset of financial lease | 10 years |
Percentage of financial lease discount rate | 4.90% |
Finance Lease Right-of-Use As_4
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | $ 1,695,035 |
Increase /(Decrease) of total right-of-use assets, at cost | |
Exchange Rate Translation of total right-of-use assets, at cost | 162,521 |
Ending balance of total right-of-use assets, at cost | 1,857,556 |
Beginning balance of accumulated amortization | (296,631) |
Increase /(Decrease) of accumulated amortization | (181,610) |
Exchange Rate Translation of accumulated amortization | (32,587) |
Ending balance of accumulated amortization | (510,828) |
Beginning balance of right-of-use assets, net | 1,398,404 |
Increase /(Decrease) of right-of-use assets, net | (181,610) |
Exchange Rate Translation of right-of-use assets, net | 129,934 |
Ending balance of right-of-use assets, net | 1,346,728 |
Company vehicles [Member] | |
Finance Lease Right-of-Use Assets, Net (Details) - Schedule of finance lease right -of-use assets [Line Items] | |
Beginning balance of total right-of-use assets, at cost | 1,695,035 |
Increase /(Decrease) of total right-of-use assets, at cost | |
Exchange Rate Translation of total right-of-use assets, at cost | 162,521 |
Ending balance of total right-of-use assets, at cost | $ 1,857,556 |
Long-Term Prepayments and Oth_3
Long-Term Prepayments and Other Non-Current Assets (Details) - Schedule of long-term prepayments and other non-current assets - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of long-term prepayments and other non-current assets [Abstract] | |||
Deposits paid for lease assets | $ 386,991 | $ 353,132 | |
Deposits paid for land | 1,547,964 | 1,412,529 | |
Performance deposits | [1] | 2,683,806 | |
Total | $ 1,934,955 | $ 4,449,467 | |
[1] | E-Home Pingtan entered into three agreements with three new outlets for business cooperation purpose. This refundable performance deposits were mainly paid for the business introduction services in which the outlets promised to refer business and customers to E-Home Pingtan within three years. The outlets will repay the deposits to E-Home Pingtan in case of termination of the agreements. (Note 4) |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of accounts payable and accrued expenses [Abstract] | ||
Payable to suppliers | $ 3,657,700 | $ 2,629,626 |
Salary and welfare payables | 614,355 | 239,726 |
Accrued expenses and other current liabilities | 85,498 | 103,789 |
Total | $ 4,357,553 | $ 2,973,141 |
Advance from Customers (Details
Advance from Customers (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Senior Care Services [Member] | ||
Advance from Customers (Details) [Line Items] | ||
Advances from customers | $ 2,817,048 | $ 1,414,345 |
Housekeeping Services [Member] | ||
Advance from Customers (Details) [Line Items] | ||
Advances from customers | $ 176,608 | $ 0 |
Advance from Customers (Detai_2
Advance from Customers (Details) - Schedule of advance from customer - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of advance from customer [Abstract] | ||
Advance from customers | $ 2,993,656 | $ 1,414,345 |
Total | $ 2,993,656 | $ 1,414,345 |
Operating Lease Liabilities (De
Operating Lease Liabilities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 25, 2019 | Dec. 19, 2018 | Dec. 22, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Lease Liabilities (Details) [Line Items] | ||||||
Weighted average discount rate | 4.06% | |||||
Weighted average remaining operating leases | 16 years | |||||
Operating lease expense | $ 1,010,608 | $ 519,174 | ||||
Short-term operating lease expense | 1,589,089 | 711,308 | ||||
Amount of operating lease sublease income | $ 147,663 | $ 214,319 | $ 183,903 | |||
Operating lease liabilities Interest rate | 3.1365% | 3.2265% | 4.1239% | |||
Lease matured date | Nov. 24, 2029 | Sep. 30, 2028 | Dec. 31, 2037 | |||
Operating lease first installment | $ 61,919 | $ 146,283 | $ 696,584 | |||
Operating lease income | $ 619,185 | |||||
Villas [Member] | ||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||
Discount rate of lease liabilities | 4.1239% | |||||
Hotels [Member] | ||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||
Discount rate of lease liabilities | 3.2265% | |||||
Base Station Tower [Member] | ||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||
Discount rate of lease liabilities | 3.1365% | |||||
Minimum [Member] | ||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||
Incremental borrowing rate | 3.70% | |||||
Maximum [Member] | ||||||
Operating Lease Liabilities (Details) [Line Items] | ||||||
Incremental borrowing rate | 4.80% |
Operating Lease Liabilities (_2
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Total operating lease liabilities | $ 2,234,355 | $ 3,316,135 | |
Villas [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [1] | 1,951,867 | 1,710,553 |
Hotel [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [2] | 1,383,040 | |
Base Station Tower [Member] | |||
Operating Lease Liabilities (Details) - Schedule of operating lease liabilities [Line Items] | |||
Operating lease liabilities | [3] | $ 282,488 | $ 222,542 |
[1] | The lease agreement of Villas was entered into on December 22, 2017, bears interest at about 4.1239% and will be matured on December 31, 2037. The installments were paid every five years. As of June 30, 2021, the Company has paid $696,584 for the first installment to the lessee. | ||
[2] | The lease agreement of Hotel was entered on December 19, 2018, bears interest at about 3.2265% and will mature on September 30, 2028. The installments were paid every year. As of June 30, 2021, the Company has paid $146,283 for the first-year installment and $619,185 for the lease transfer income to the original lessee. | ||
[3] | The lease agreement of Base Station Tower was entered into on November 25, 2019, bears interest at about 3.1365% and will be matured on November 24, 2029. The installments were paid every year. As of June 30, 2021, the Company has paid $ 61,919 to the lessee. |
Operating Lease Liabilities (_3
Operating Lease Liabilities (Details) - Schedule of analyzed for reporting purposes - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of analyzed for reporting purposes [Abstract] | ||
Long-term portion of operating lease liabilities | $ 2,147,252 | $ 3,117,124 |
Current maturities of operating lease liabilities | 87,103 | 199,011 |
Total | $ 2,234,355 | $ 3,316,135 |
Operating Lease Liabilities (_4
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Villas [Member] | |
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | |
Discount rate at commencement | 4.1239% |
One year | |
Two years | 766,242 |
Three years | |
Four years | |
Five years | |
Beyond five years | 1,770,020 |
Total undiscounted cash flows | 2,536,262 |
Total financing lease liabilities | 1,951,867 |
Difference between undiscounted cash flows and discounted cash flows | $ 584,395 |
Base station tower [Member] | |
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | |
Discount rate at commencement | 3.1365% |
One year | $ 30,959 |
Two years | 30,959 |
Three years | 30,959 |
Four years | 30,959 |
Five years | 30,959 |
Beyond five years | 92,877 |
Total undiscounted cash flows | 247,672 |
Total financing lease liabilities | 282,488 |
Difference between undiscounted cash flows and discounted cash flows | $ (34,816) |
Total undiscounted cash flows [Member] | |
Operating Lease Liabilities (Details) - Schedule of maturity analysis of operating lease liabilities [Line Items] | |
Discount rate at commencement | |
One year | $ 30,959 |
Two years | 797,201 |
Three years | 30,959 |
Four years | 30,959 |
Five years | 30,959 |
Beyond five years | 1,862,897 |
Total undiscounted cash flows | 2,783,934 |
Total financing lease liabilities | 2,234,355 |
Difference between undiscounted cash flows and discounted cash flows | $ 549,579 |
Finance Lease Liabilities (Deta
Finance Lease Liabilities (Details) - USD ($) | Sep. 11, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Finance Lease Liabilities [Abstract] | ||||
The rate of financial lease liability interest | 4.90% | |||
Amortization expense of financial lease right-of-use assets | $ 181,610 | $ 170,714 | ||
Interest expense for financial lease | $ 25,509 | $ 26,447 | $ 22,021 | |
Date of maturity of financial lease agreement | Dec. 31, 2027 |
Finance Lease Liabilities (De_2
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities [Line Items] | |
Beginning balance of unrecognized finance expense | $ 47,492 |
Increase/ (Decrease) in unrecognized finance expense | 25,509 |
Payment for unrecognized finance expense | |
Exchange rate translation of unrecognized finance expense | 3,392 |
Ending balance of unrecognized finance expense | 76,393 |
Beginning balance of total financing lease liabilities | 509,220 |
Increase/ (Decrease) in total financing lease liabilities | 25,509 |
Payment for total financing lease liabilities | (80,531) |
Exchange rate translation of total financing lease liabilities | 47,570 |
Ending balance of total financing lease liabilities | 501,768 |
Company vehicles [Member] | |
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities [Line Items] | |
Beginning balance of financing lease liabilities | 461,728 |
Increase/ (Decrease) in financing lease liabilities | |
Payment for financing lease liabilities | (80,531) |
Exchange rate translation of financing lease liabilities | 44,178 |
Ending balance of financing lease liabilities | $ 425,375 |
Finance Lease Liabilities (De_3
Finance Lease Liabilities (Details) - Schedule of financing lease liabilities for reporting purposes - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of financing lease liabilities for reporting purposes [Abstract] | ||
Long-term portion of finance lease liabilities | $ 442,670 | $ 457,867 |
Current maturities of finance lease liabilities | 59,098 | 51,353 |
Total | $ 501,768 | $ 509,220 |
Finance Lease Liabilities (De_4
Finance Lease Liabilities (Details) - Schedule of maturity analysis of financial lease liabilities | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Schedule of maturity analysis of financial lease liabilities [Abstract] | |
Discount rate at commencement | 4.90% |
One year | $ 82,369 |
Two years | 82,369 |
Three years | 82,369 |
Four years | 82,369 |
Five years | 82,369 |
Beyond five years | 185,330 |
Total undiscounted cash flows | 597,175 |
Total financing lease liabilities | 501,768 |
Difference between undiscounted cash flows and discounted cash flows | $ 95,407 |
Taxes (Details)
Taxes (Details) | May 01, 2016 | Jan. 01, 2008 | Jul. 31, 2017 | Mar. 16, 2007 | Jun. 30, 2021 |
Taxes (Details) [Line Items] | |||||
VAT percentage | 11.00% | ||||
Value added tax, description | The maintenance and accessories sales were subject to a VAT rate of 17% before May 1, 2018 and were reduced to 16% since then. The VAT rate was reduced to 13% since April 1, 2019. | ||||
After sales and cleaning service | |||||
EIT [Member] | |||||
Taxes (Details) [Line Items] | |||||
Percentage of uniform rate | 25.00% | ||||
Effective tax rate | 25.00% |
Taxes (Details) - Schedule of p
Taxes (Details) - Schedule of provision for income tax - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of provision for income tax [Abstract] | |||
Current income tax provision | $ 2,968,362 | $ 2,251,672 | $ 3,565,146 |
Deferred income tax provision | 704,262 | 353,097 | |
Total | $ 3,672,624 | $ 1,898,575 | $ 3,565,146 |
Taxes (Details) - Schedule of s
Taxes (Details) - Schedule of statutory EIT rate and the effective tax - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of statutory EIT rate and the effective tax [Abstract] | |||
Income before income taxes | $ 10,072,523 | $ 7,546,583 | $ 13,737,507 |
Provision for income taxes at statutory tax rate in the PRC | 3,660,090 | 1,886,646 | 3,434,377 |
Effect of income for which no income tax is chargeable | |||
Effect of expense for which no income tax is deductible | 12,534 | 11,929 | 130,769 |
Reversal of deficit | |||
Effective tax | $ 3,672,624 | $ 1,898,575 | $ 3,565,146 |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax asset - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of deferred tax asset [Abstract] | ||
Deferred tax assets | ||
Senior care services fees advanced from customers | 704,262 | 353,097 |
Total | $ 704,262 | $ 353,097 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of taxes payable [Abstract] | ||
Income tax payable | ||
VAT payable | 332 | 5,797 |
Other tax payables (other payables and accrued liabilities) | 1,888 | 2,228 |
Total | $ 2,220 | $ 8,025 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 21, 2021 | May 18, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | May 23, 2019 | Jun. 30, 2018 | |
Equity (Details) [Line Items] | |||||||
Ordinary, shares issued | 33,581,556 | 28,000,000 | |||||
Ordinary shares par value | $ 0.0001 | $ 0.0001 | |||||
Contributed ownership | $ 3,620,757 | $ 3,885,586 | |||||
Ordinary shares authorized | 500,000,000 | 500,000,000 | |||||
Ordinary shares outstanding | 33,581,556 | 28,000,000 | |||||
Additional paid in capital | $ 25,542,531 | $ 3,667,957 | |||||
Ordinary shares were granted | 6,000 | ||||||
Compensations at a fair value | $ 213,840 | ||||||
Shares issued to directors | $ 1 | ||||||
Statutory reserve description | The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. | ||||||
Statutory surplus reserve | $ 664,100 | $ 664,100 | |||||
Three Directors [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Independent directors of share compensations | 2,000 | ||||||
Initial Public Offering [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Ordinary, shares issued | 5,575,556 | ||||||
Ordinary shares par value | $ 4.5 | ||||||
Total gross proceed | $ 25,100,000 | ||||||
Net proceed | 21,661,293 | ||||||
Ordinary shares value | 558 | ||||||
Additional paid in capital | $ 21,660,735 | ||||||
Over-Allotment Option [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Additional ordinary shares | 20,000 | ||||||
Ordinary shares [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Ordinary, shares issued | 28,000,000 | ||||||
Ordinary shares authorized | 500,000,000 | ||||||
Ordinary shares surrendered | 472,000,000 | ||||||
Ordinary shares outstanding | 28,000,000 | ||||||
E-Home Pingtan [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Ordinary, shares issued | 50,000 | ||||||
Ordinary shares par value | $ 1 | ||||||
Minimum [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Ordinary shares par value | $ 0.0001 | ||||||
Ordinary stock split | 50,000 | ||||||
Maximum [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Ordinary shares par value | $ 1 | ||||||
Ordinary stock split | 500,000,000 | ||||||
Additional Paid-in Capital [Member] | |||||||
Equity (Details) [Line Items] | |||||||
Shares issued to directors | $ 213,839 | $ 213,839 |
Segment Information (Details) -
Segment Information (Details) - Schedule of operating segments information - Segment Information [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 74,525,434 | $ 46,200,949 | $ 51,149,326 |
Total Cost of revenue | 48,311,398 | 30,101,072 | 31,771,326 |
Total Gross profit | 26,214,036 | 16,099,877 | 19,378,000 |
Total Sales and marketing expenses | 10,279,274 | 7,514,211 | 4,101,960 |
Total General and administrative expenses | 6,869,419 | 1,114,984 | 1,554,523 |
Total Current assets | 65,766,598 | 28,700,552 | |
Total Non-current assets | 8,588,200 | 12,248,639 | |
Installation and Maintenance [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 51,546,235 | 32,220,898 | 40,460,351 |
Total Cost of revenue | 32,209,179 | 19,484,927 | 23,702,317 |
Total Gross profit | 19,337,056 | 12,735,971 | 16,758,034 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | |||
Housekeeping [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 16,792,722 | 11,704,899 | 10,505,072 |
Total Cost of revenue | 13,435,869 | 8,901,973 | 8,069,009 |
Total Gross profit | 3,356,853 | 2,802,926 | 2,436,063 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | |||
Senior Care Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 6,038,814 | 2,060,833 | |
Total Cost of revenue | 2,666,350 | 1,714,172 | |
Total Gross profit | 3,372,464 | 346,661 | |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | 4,966,998 | 6,304,720 | |
Sublease [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | 147,663 | 214,319 | 183,903 |
Total Cost of revenue | |||
Total Gross profit | 147,663 | 214,319 | 183,903 |
Total Sales and marketing expenses | |||
Total General and administrative expenses | |||
Total Current assets | |||
Total Non-current assets | 1,885,890 | ||
Unallocated [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Sales and marketing expenses | 10,279,274 | 7,514,211 | 4,101,960 |
Total General and administrative expenses | 6,869,419 | 1,114,984 | $ 1,554,523 |
Unallocated current assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Current assets | 65,766,598 | 28,700,552 | |
Unallocated non-current assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Non-current assets | $ 3,621,202 | $ 4,058,029 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Schedule of future minimum lease payments | Jun. 30, 2021USD ($) |
Commitments and Contingencies (Details) - Schedule of future minimum lease payments [Line Items] | |
July 2021 to June 2022 | $ 2,899,663 |
July 2022 to June 2023 | 879,570 |
July 2023 to June 2024 | 113,328 |
July 2024 to June 2025 | 113,328 |
Thereafter | 2,161,554 |
Total | 6,167,443 |
Operating Lease [Member] | |
Commitments and Contingencies (Details) - Schedule of future minimum lease payments [Line Items] | |
July 2021 to June 2022 | 30,959 |
July 2022 to June 2023 | 797,202 |
July 2023 to June 2024 | 30,959 |
July 2024 to June 2025 | 30,959 |
Thereafter | 1,893,856 |
Total | 2,783,935 |
Finance Lease [Member] | |
Commitments and Contingencies (Details) - Schedule of future minimum lease payments [Line Items] | |
July 2021 to June 2022 | 82,369 |
July 2022 to June 2023 | 82,369 |
July 2023 to June 2024 | 82,369 |
July 2024 to June 2025 | 82,369 |
Thereafter | 267,698 |
Total | 597,173 |
Capital Expenditure [Member] | |
Commitments and Contingencies (Details) - Schedule of future minimum lease payments [Line Items] | |
July 2021 to June 2022 | 2,786,335 |
July 2022 to June 2023 | |
July 2023 to June 2024 | |
July 2024 to June 2025 | |
Thereafter | |
Total | $ 2,786,335 |
Customer and Supplier Concent_2
Customer and Supplier Concentration (Details) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Sales Revenue [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 21, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Balances and Transactions (Details) [Line Items] | ||||
Amount payable | $ 30,925 | |||
Receivable from shareholder | 24,575 | $ 8,475 | $ 1,351,969 | |
Borrowed amount | 63,975 | |||
Payment to related party | $ 8,475 | |||
Ordinary shares were granted (in Shares) | 6,000 | |||
Compensations at a fair value | $ 213,840 | |||
Shares issued to directors | 1 | |||
Additional Paid-in Capital [Member] | ||||
Related Party Balances and Transactions (Details) [Line Items] | ||||
Shares issued to directors | $ 213,839 | $ 213,839 | ||
Three Directors [Member] | ||||
Related Party Balances and Transactions (Details) [Line Items] | ||||
Independent directors of share compensations (in Shares) | 2,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 10, 2021 | Sep. 22, 2021 | Jun. 30, 2021 | Sep. 15, 2021 | Jul. 15, 2021 | Jun. 23, 2021 |
Subsequent Events (Details) [Line Items] | ||||||
Acquire equity interests | 100.00% | |||||
E-Home pingtan description | (i) 100% of the equity interests of Fuzhou Yongheng Xin Electric Co., Ltd., a limited liability company established under the laws of the PRC on October 12, 2004; (ii) 100% of the equity interests of Fujian Happiness Yijia Family Service Co., Ltd., a limited liability company established under the laws of the PRC on January 19, 2015; and (iii) 51% of the equity interests of Yaxing Human Resource Management (Pingtan) Co., Ltd., a limited liability company established under the laws of the PRC on July 6, 2018. E-Home Pingtan also holds 20% of the equity interests of Fuzhou Fumao Health Science and Technology Co., Ltd. (“Fuzhou Fumao”), previously named Fuzhou Yiyanbao Information Technology Co., Ltd., a limited liability company established under the laws of the PRC on August 12, 2016. | |||||
Danyang Situ Fengyi Farm [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Tangible and intangible assets percentage | 100.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Gulou Jiajiale Family Service Co. Ltd. [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 100.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Fujian Happiness Yijia Family Service Co., Ltd. [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 33.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Fujian Zhi Xie Education Technology Development Co., Ltd. [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 55.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Ju Shang Enterprise Management Consulting Co., Ltd. [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 55.00% | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Fumao Health Science and Technology Co., Ltd [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 47.00% | |||||
Maximum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Fumao Health Science and Technology Co., Ltd [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 67.00% | |||||
Minimum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Fumao Health Science and Technology Co., Ltd [Member] | Subsequent Event [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 20.00% | |||||
Forecast [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Acquire equity interests | 33.00% | |||||
Equity interests | 100.00% | |||||
Forecast [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Fuzhou Sijie Cleaning Service Co., Ltd. [Member] | ||||||
Subsequent Events (Details) [Line Items] | ||||||
Equity interests percentage | 51.00% |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 21, 2021 | May 18, 2021 | May 23, 2019 | Jun. 30, 2021 | Sep. 24, 2018 | |
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Ordinary shares issued | 50,000 | ||||
Ordinary stock par value | $ 1 | ||||
Share and per share information, description | The authorized ordinary shares became 500,000,000 shares and the par value changed from US$1 to US$0.0001. On the same day, the Company cancelled 472,000,000 ordinary shares. As a result, the Company has 28,000,000 ordinary shares issued and outstanding. | ||||
Ordinary shares were granted | 6,000 | ||||
Compensations at a fair value | $ 213,840 | ||||
Shares issued to directors | 1 | ||||
Minimum [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Subdivided ordinary share | 50,000 | ||||
Maximum [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Subdivided ordinary share | 500,000,000 | ||||
Additional Paid-in Capital [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Shares issued to directors | $ 213,839 | $ 213,839 | |||
Three Directors [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Independent directors of share compensations | 2,000 | ||||
IPO [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Ordinary shares outstanding | 5,575,556 | ||||
Ordinary share price | $ 4.5 | ||||
Total gross proceed amount | $ 25,100,000 | ||||
Total net proceed amount | 21,661,293 | ||||
Ordinary shares value | 558 | ||||
IPO [Member] | Additional Paid-in Capital [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Additional paid-in capital | $ 21,660,735 | ||||
Over-Allotment Option [Member] | |||||
Condensed Financial Information of the Parent Company (Details) [Line Items] | |||||
Additional ordinary shares | 20,000 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets - Parent Company [Member] - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 4,844,328 | |
Prepayments, deposits and other current assets | 6,510,000 | |
Investment in subsidiaries and VIEs | 52,957,959 | 32,762,819 |
Total assets | 64,312,287 | 32,762,819 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Total liabilities | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 33,581,556 and 28,000,000 shares issued and outstanding, respectively | 3,359 | 2,800 |
Additional paid-in capital | 25,542,531 | 3,667,957 |
Retained earnings | 37,468,382 | 31,059,450 |
Accumulated other comprehensive loss | 1,298,015 | (1,967,388) |
Total equity of the Company’s shareholders | 64,312,287 | 32,762,819 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 64,312,287 | $ 32,762,819 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of income and comprehensive income - Parent [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
Share of income of subsidiaries and VIEs | $ 10,989,394 | $ 5,649,451 | $ 10,233,775 |
Loss of the parent company | (4,580,462) | ||
Net income | 6,408,932 | 5,649,451 | 10,233,775 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment, net of nil tax | 3,265,403 | (837,040) | (729,348) |
Total comprehensive income | $ 9,674,335 | $ 4,812,411 | $ 9,504,427 |