Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 128

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 128
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 has prepared the FS Report on several assumptions as follows:

| 1) | social, economic and political                                   
 environments are likely to remain stable in the forecast period; |

| 2) | related industry key drivers are likely         
 to drive the market in the forecast period; and |

| 3) | certain market environment assumptions, 
 including:                              |

| a. | Stable Competitive Structure:                                                                     
 The number and positions of key competitors in the market will remain relatively stable during    
 the study period, as it is very hard to build brand reputation in a short period. Homeopathy      
 heavily relies on consumer trust and brand reputation, as it is viewed as complementary medicine. 
 Customers tend to stick with brands they trust for their health needs, making it an entry         
 barrier for new entrants to quickly gain market share. Although different brands may offer        
 different homeopathic products, they rely on similar treatment principles. As a result, consumers 
 are more likely to choose based on brand and reputation rather than technological innovation      
 or product uniqueness. Thus, the competitive landscape in this market will be likely to be        
 stable in the long run.                                                                           |

| b. | Predictability of Technological                                                                 
 Changes: Homeopathy is based on long-established principles such as the "like cures             
 like" concept, dilution, and augmentation, these foundational principles have remained          
 largely unchanged, leaving little room for radical technological innovation. As a result,       
 technological progress in homeopathy is generally incremental, focusing on gradual improvements 
 rather than revolutionary breakthroughs, which are insufficient to significantly disrupt        
 the market landscape.                                                                           |

| c. | Manageable                                                                                       
 Regulatory Impact: The homeopathy market already operates within a well-established regulatory   
 framework in most regions, with clear guidelines in place for the production, labeling, and      
 sale of homeopathic products. Given that innovation and technological updates in homeopathy      
 tend to be gradual, regulatory bodies have a relatively hands-off approach to the industry.      
 Most regulations focus primarily on product safety, ensuring that homeopathic remedies are       
 safe for consumer use, and on labeling requirements, rather than on the efficacy of the products 
 themselves. This regulatory environment is less burdensome compared to other areas of the        
 healthcare industry, as it does not require extensive clinical trial data or breakthrough        
 innovations to satisfy regulatory requirements. As a result, while labeling or licensing         
 requirements may evolve over time, significant regulatory changes are rare and are not expected  
 to fundamentally disrupt the market or negatively impact the industry in a substantial way