Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 113

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 113
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2023, respectively. When comparing fiscal year 2024 with fiscal year 2023:

For the year ended March 31, 2024, our net cash generated from operating activities was $687,495, which was primarily derived from (i) net income of $753,429 and adjusted for non-cash depreciation of $86,321; (ii) decrease in prepayment to suppliers by $149,211 as products ordered has delivered during the year; while partially offset by (i) increase in inventories by $225,073 as the Company intended to hold higher inventories to support promotional activities aimed at stimulating sales during the downturn; (ii) decrease in tax payable by $110,319 as provisional tax paid was estimated according to net assessable profit of fiscal year 2023 which was higher than current income tax expense incurred for the fiscal year 2024.

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For the year ended March 31, 2023, our net cash generated from operating activities was $1,403,676, which mainly resulted from (i) net income of $1,129,504 and adjusted for non-cash depreciation of $86,164; (ii) decrease in inventories by $216,089 was a result of decreased stock levels in anticipation of sales decline; (iii) increase in accounts payable by $129,121 as our purchased increased; and while partially offset by (i) decrease in income tax payable by $187,860 as provisional tax paid was estimated according to net assessable profit of fiscal year 2022 which was higher than current income tax expense incurred for the fiscal year 2023.

Net cash used in financing activities

Net cash used in financing activities was
$574,414 for the year ended March 31, 2024, which primarily resulted from repayment of $171,087, to Hang Seng Bank Limited in accordance
with the property installment loan agreement between Living Homeopathy Limited and Hang Seng Bank Limited dated October 20, 2021 (the
“Hang Seng Mortgage Loans”), repayment of $78,249 to Mr. To, our Chairman and Chief Executive Officer and dividend
of $325,078 to Mr. To.

Net cash used in financing activities was
$3,224,882 for the year ended March 31, 2023, which primarily resulted from repayment of $158,122 to Hang Seng Bank Limited in accordance
with the Hang Seng Mortgage, repayment of $1,