Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 42

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 42
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 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 prepayments to suppliers’ balance. As of March 31, 2024, one supplier
accounted for approximately 96% of the Company’s prepayments to suppliers’ balance, respectively. As of March 31, 2025, one supplier
accounted for approximately 92% of the Company’s accounts payable balance. As of March 31, 2024, one supplier accounted
for approximately 92% of the Company’s accounts payable balance, respectively.

Inherent risks exist whenever procurement is concentrated with a limited number of suppliers. Our suppliers may fail to meet their procurement obligations, which may adversely affect our business. We do not enter written contracts with any of our suppliers, even though we have a long history of business relationship with our major suppliers. There is no assurance that we can continue to maintain stable and long-term business relationships with any supplier. Failure to maintain existing relationships with the suppliers or to establish new relationships in the future could