Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 102

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 102
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 Furthermore, our revenue is also impacted by our ability to expand market’s recognition of our brand to attract more customers to purchase from us and increase our market share.

Gross Profit and Gross Margin

Gross profit is calculated as the difference
between revenue and cost of revenue. Gross margin is gross profit divided by revenue. Gross profit and gross margin are measures used
by our management to evaluate the profitability of products we provided to our customers as well as how well our business strategy is
executed and performed. Our gross profit and gross margin are impacted by many internal and external factors, such as our abilities in
inventory management and cost control, market’s recognition of our brand, and the macroeconomic conditions of Hong Kong.

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Operating Expenses

Our operating expenses consist of selling and marketing expenses, staff costs and employee benefits, depreciation, lease expenses and other general and administrative expenses.

Our selling expenses primarily include commission
paid to our sales personnel, advertising expenses and other marketing and promotion related expenses.

Our staff costs and employee benefits consist
of salaries and employee benefits paid and payable to our employees.

Our depreciation consists of depreciation charge on land and building owned by the Company and leasehold improvement on our retail store.

Our lease expenses consist of rental expenses for our retail store and warehouse.

Our other general and administrative expenses
primarily include repair and maintenance for our retail store, legal and professional fee, consumables, system fees, travelling, property
related expenses, office expenses and other miscellaneous administrative expenses.

Operating Income

Operating income is calculated as gross profit minus operating expenses. Operating income excludes interest expense, other income (expense), and income tax expenses. We use operating income as an indicator of the productivity of our business and our ability to manage expenses.

Results of Operations

This information should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus. The results of operations in any period are not necessarily indicative of our future trends.

For the Years Ended March 31, 2024 and 2023

The following table summarizes the results of our operations for the years ended March 31, 2024 and 2023, respectively, and provides information regarding the dollar and percentage change during such periods.

|                                     |     | For             
 the years ended 
 March 31,       |       2024 |   |     |   |       2023 |   |     | Variance |   Amount |   |     |     |      % |    |
|:--------------------------------