Company: LHI
Filing Date: 2025-08-08
Form Type: F-1/A
Source: 0001213900-25-073646
Chunk: 146

Company: Living Homeopathy International Ltd.
Filing Date: 2025-08-08
Form: F-1/A
Chunk 146
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 from mentees and facilitating communication within the group and the mentor-mentee program, as well as
with the Company. We encourage participants of our mentor-mentee program to attend our internal presentations and seminars for their
continual training focusing on keeping current their knowledge of homeopathy treatment and our products.

A mentee is typically subject to a one-off
membership fee of HKD500 ($63.9). Participants in our mentor-mentee program can join as mentees or mentors. Mentors are categorized with
various levels, depending on the quantity of new customers they develop and sales of our products. Product discounts and sales commissions
that a participant is entitled to varies depending on whether such participant is mentor or mentee and if a mentor, which mentor level
that such participant sits at.

We structure our mentor-mentee program to
be in compliance with the Pyramid Schemes Prohibition Ordinance which defines a pyramid scheme as a scheme in which: (1) new participants
must provide a participation payment to a participant or promoter of the scheme; (2) the participation payment is entirely or substantially
induced by the prospect that the new participant will be entitled to a recruitment payment; and (3) the recruitment payment is entirely
or substantially derived from the introduction to the scheme of a further new participant. Our mentor-mentee program was a business model
that we believe was suitable for our business development which serves as our marketing and sales network as well as a network that we
can leverage to gradually enhance public awareness of homeopathy and our products. For example, public awareness of homeopathy by word
of mouth and acceptance of homeopathy is critical to our business success, and we believe the mentor-mentee network benefits customer
education to enhance market awareness of homeopathy and our homeopathic products as alternative treatment to conventional medicines with
a focus on holistic physical and emotional therapy. See “Risk Factors – Risks related to our Business and Industry
-- Unfavorable publicity or consumer acceptance of our products generally could reduce our sales” on page 17 of this prospectus
for more details. In addition, the one-off membership fee of HKD500 (US$63.9) is a nominal amount which we mainly use to fund the education
and training for the members with regard to homeopathy and other administrative fees, and the economic benefits of participants are substantially
the entitlement to product discounts and sales commissions associated with product sales. See “Risk Factors – Risks Related to our Business - If