Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 116

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 116
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 of 2023. During the COVID-19 pandemic, there was a trend to consume more
healthcare products to strengthen the immune system, prevent severe illness and relieve symptoms. The significant decline in severity
of COVID-19 and the transition to a more manageable state of the virus in 2024 were the main reasons for the radical change in quantity
sold when comparing the two periods.

Sale of personal care products

Our sales of personal care products decreased
by $6,489 or 6.4% from $100,652 for the six months ended September 30, 2023 to $94,163 for the six months ended September 30, 2024. Personal
care products, which include mouthwash, handwash and hair conditioners, are launched to meet daily necessities of customers. The decrease
in revenue from personal care products was mainly driven by the decrease in quantity sold. In the first half of 2024, we sold 5,102 units
of personal care products, which decreased by 1,307 units or 20.4% from 6,409 units sold in same period of 2023. This was mainly due
to decreased quantity sold of handwash in first half of 2024, which was a result of implementation of purchasing limit of handwash to
each customer starting from May 2024.

Sale of water filters and related products

Our sales of water filters and related products
decreased by $63,908 or 45.7% from $139,765 for the six months ended September 30, 2023 to $75,857 for the six months ended September
30, 2024. The decrease in revenue from water filters and related products was driven by the decrease in quantity sold. In the first half
of 2024, we sold 548 units of water filters and related products, a decrease of 1,739 units or 76.0% from 2,287 units sold in the first
half of 2023. This was mainly attributable to decreased demand for complete sets of filters, as a result of less exhibition was held
for filters in the first half of 2024.

Cost of revenue

Our cost of revenue mainly included cost of
raw materials purchased, inbound freight cost, and packaging fee. Write-down of inventory for lower of cost or net realizable value adjustment
is also charged to cost of revenue. The following table sets forth the breakdown of our cost of revenue by category for