Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 117

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 117
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 mainly due to the decrease
in quantity sold. The decrease in quantity sold was a result of decrease in demand for healthcare products due to relieve of severe pandemic.

Our cost of personal care products decreased
by 5,839 or 26.2% from $22,298 for the six months ended September 30, 2023 to $16,459 for the six months ended September 30, 2024. The
decrease in cost of revenue was mainly driven by the decrease in both quantity sold and average unit cost. The decrease in quantity sold
contributed lower costs, which was in line with decrease in revenue. Moreover, some personal care products had been bargained for lower
average purchase costs, leading to the overall decrease in average unit cost in the first half of 2024.

Cost for water filters and related products
decreased by $11,805 or 50.4% from $23,426 for the six months ended September 30, 2023 to $11,621 for the six months ended September
30, 2024, which was mainly due to decrease in quantity sold while partially offset by increase in average unit cost.

Gross profit

The following table sets forth the breakdown
of our gross profit and gross margin by category for the six months ended September 30, 2024 and 2023, respectively.

| Gross profit of                   |     | For the six months ended September 
 30,                                
 2024                               
 Gross                              
 Profit                             |           |     | Gross  
 Margin |      |   |     | 2023   
 Gross  
 Profit |           |     | Gross  
 Margin |      |   |     | Variance 
 Gross    
 Profit   |          |   |     | Gross  
 Margin 
 (pp)   |      |   |
|:----------------------------------|:----|:-----------------------------------|----------:|:----|:-------|-----:|:--|:----|:-------|----------:|:----|:-------|-----:|:--|:----|:---------|:---------|:--|:----|:-------|-----:|:--|
| Sale of healthcare products       |     | $                                  | 2,913,550 |     |        | 74.6 | % |     | $      | 3,135,783 |     |        | 75.4 | % |     | $        | (222,233 | ) |     |        |