Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 34

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 34
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 our revenue by making sales into new geographic regions beyond Hong Kong. For example, we may sell our products through our
virtual flagship store on Tmall Global. With sales to other geographic regions, we may be exposed to applicable rules and regulations
in the new markets where we sell our products, which could put pressure on our operational and compliance costs as well as operational
and managerial resources. For example, sales to customer in mainland China on our flagship store on Tmall Global, we need to comply with
all the applicable laws in China with respect to food safety and advertising law. Specifically, business operations of health food that
are not registered pursuant to the relevant provisions of the PRC Food Safety Law may be face confiscation of illegal income and foodstuff
from the illegal business activities as well as be exposed to monetary penalties. Advertising unregistered health food products may constitute
false advertising according to the PRC Advertising Law, which will result in monetary penalties. See “Regulation – Regulations Related to our Business Operation in Mainland China” on page 99 of this prospectus for more details.

If we fail to adapt to any new regulatory requirement of our existing markets or the regulatory requirements of new regions where we sell our products, or any competent government authority considers that we operate our business without any requisite license, permit or approval, or otherwise fails to comply with applicable regulatory requirements, we may be subject to administrative actions and penalties against us, including fines, confiscation of our incomes, revocation of our licenses or permits, or, in severe cases, cessation of certain business. Any of these actions may have a material and adverse effect on our business, financial condition and results of operations.

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Potential product liability, false marketing or other consumer claims against us could cause us to incur substantial liabilities and we may face regulatory penalties.

Our homeopathic remedies, homeopathic co-remedies
and classical flower remedies are for human use. We may face the risk of product liability claims and other consumer claims that are
inherent in sales of products for human consumption. To ensure product safety, our quality control procedure comprises manufacturer selection
and product quality check. For example, in 2023, we have adopted the quality control practice of requesting our suppliers of homeopathic
co-remedies supplier to provide certificate of hygiene or bacteria check, certificate of the origin, and certificate of free sale, as
applicable. In addition,in 2023, we have adopted the quality control practice of sending samples