Company: LHI
Filing Date: 2025-08-08
Form Type: F-1/A
Source: 0001213900-25-073646
Chunk: 147

Company: Living Homeopathy International Ltd.
Filing Date: 2025-08-08
Form: F-1/A
Chunk 147
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 the relevant laws and regulations regulating “Pyramid Scheme” become increasingly broad on the scope of Pyramid Schemes, there will be more pressure on compliance cost, managerial resources, and business, and our business, financial conditions, and results of operations will be materially and adversely affected” on page 20 of this prospectus, and “Regulation -
Regulations Related to our Business Operation in Hong Kong” on page 84 of this prospectus for more details. For the year ended
March 31, 2024 and 2025, total commissions to our mentors and mentees amounted to $3,011,692 and $2,996,092, respectively.

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We have set up mentor-mentee program-related code of conduct to regulate mentor and mentee conducts and delineate their rights and obligations, setting for the mechanism on compliance supervision, including company supervision, mentor supervision over mentee behavior and self-regulation subject to Company’s monitoring .

Quality Control

Quality control is critical to our business and development. We have maintained a quality control practice ranging from manufacturer selection and product quality check.

In 2023, we have adopted the practice of requiring our suppliers of homeopathic co-remedies products to provide certain certifications to prove that their products are also compliant with the laws and regulations of the country of origin. Subject to the varying practices of each relevant origination country, which may also differ between products, suppliers need to provide, as applicable, (i) certificate of the origin, (ii) certificate of free sale, (iii) certificate of hygiene or bacteria check.

In 2023, we have adopted
the practice of sending samples of existing homeopathic co-remedies products to Hong Kong STC approximately once or twice a year, and
sending samples of new products for testing at STC prior to making any sales. Established in 1963, Hong Kong STC is an independent, not-for-profit
testing, inspection and certification organization in Hong Kong offering product certifications for prompting product safety and quality
compliance. Obtaining certification from Hong Kong STC for our products is not a regulatory requirement with respect to sales of our
products in Hong Kong, but an important step of our product quality control process. We have obtained the testing reports issued by Hong
Kong STC with respect to some of our key products, such as LIVING Agaricus, LIVING Astaxanthin, LIVING Camu-Camu, LIVING Energy, LIVING