Company: LHI
Filing Date: 2025-08-08
Form Type: F-1/A
Source: 0001213900-25-073646
Chunk: 41

Company: Living Homeopathy International Ltd.
Filing Date: 2025-08-08
Form: F-1/A
Chunk 41
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 the Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong), an employer who, without reasonable excuse, fails to enroll employees in an MPF scheme pursuant to the ordinance commits an offence and is liable on conviction to a fine of HKD350,000 (approximately US$45,000) and to imprisonment for three years. Therefore, failure to comply with applicable laws and regulations concerning employment and labor protection by Living Homeopathy Hong Kong may result in material and adverse effect on Living Homeopathy Hong Kong’s business, our financial condition and operating results.

If we fail to manage and expand our relationships with suppliers, or otherwise fail to procure products at favorable terms, our business and growth prospects may suffer.

Our suppliers are
the manufacturers of our “procured products.” Maintaining strong relationships with these suppliers is important to the growth
of our business. Although we have a long history of business relationship with our major suppliers, we cannot assure you that our current
suppliers will continue to sell products or provide services to us on commercially acceptable terms, or at all. If our suppliers cease
to provide us with favorable payment terms, our requirements for working capital may increase and our operations may be materially and
adversely affected.

Moreover, we may also become involved in disputes with our suppliers on the required prepayments and relevant settlement afterwards. If we fail to maintain business relationships with our suppliers due to such disputes, and we will need to establish new supplier relationships promptly to ensure that we have access to a steady supply of products or services on favorable commercial terms. However, we cannot assure you that we will be able to find new suppliers who can satisfy our requirements.

We have a substantial supplier concentration with a limited number of suppliers accounting for a substantial portion of our total purchases. Changes or difficulties in our relationships with our suppliers and loss may harm our business and financial results.

We rely on a limited number of manufacturers
as our suppliers. For the years ended March 31, 2024 and 2025, we had five suppliers. For the years ended March 31, 2025, three suppliers
accounted for approximately 37%, 25% and 21% of the total purchases. For the year ended March 31, 2024, three suppliers accounted for
approximately 41%, 22% and 20% of the total purchases, respectively.

As of March 31, 2025, two suppliers
accounted for approximately 59% and 32% of the Company’s