Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 105

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 105
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, those results will be substantially the same as the results of operations for the period after the date of Reorganization.

We started our business in Hong Kong in 1994 and have been focusing on promotion of homeopathy, and sales, marketing and distribution of quality homeopathic products for public health. We are a homeopathic products supplier in Hong Kong’s active homeopathic products market in terms of number of sales and profitability, according to Frost & Sullivan.

The global rise in health consciousness has fueled
a growing demand for natural, holistic healing approaches. This has led to a surge in the popularity of homeopathic remedies in Hong
Kong and worldwide. Our products include homeopathic co-remedies, homeopathic remedies, mouthwash, water filters, shower filters. Additionally,
we offer personalized homeopathic remedies and classic flower remedies to address the unique health issues of each customer to accommodate
his specific needs.

Key Financial Performance Indicators

To assess the performance of our business, we consider a variety of financial and operating measures. The key financial performance indicators we use include revenue, gross profit and gross margin, operating expenses, and operating income. Our review of these indicators reveals the results of our business performance and provides timely and meaningful feedbacks to key operating decisions and allow our business to respond promptly to competitive market conditions and different demands and preferences from our customers. The key measures that we use to evaluate the performance of our business are set forth below and are discussed in greater details under “Results of Operations”.

Revenue

Our revenue is derived primarily from sales of all kinds of healthcare products, personal care products as well as water filters and related products. Our revenue is affected by our ability to provide quality and effective products that consistently meet customers’ needs. 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