Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 124

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 124
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 Hong
Kong is exempted from income tax on its foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of
dividends.

The table below sets forth the breakdown of
provision for income taxes for the periods indicated.

|                              |     | For the six months ended 
 September 30,            |   2024 |     |   |   2023 |
|:-----------------------------|:----|:-------------------------|-------:|:----|:--|-------:|
| Current income tax provision |     | $                        |  3,897 |     | $ | 82,882 |
| Deferred income tax          |     |                          | 42,689 |     |   |  2,574 |
| Total income taxes expenses  |     | $                        | 46,586 |     | $ | 85,456 |

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We generated substantially all of our taxable
income in Hong Kong and no taxable income. The deferred tax assets mainly represented temporary differences arising from acceleration
of depreciation on property and equipment and impairment for inventories. Our effective income tax rate was 368.2% and 14.1% for the
six months ended September 30, 2024 and 2023, respectively. The increase in our effective income tax rate was mainly due to an increase
in deferred income tax expense as a result of transferring properties to Mr. To.

Net (loss) income

As a result of the foregoing, we reported
a net loss of $33,934 and net income of $520,092 for the six months ended September 30, 2024 and 2023, respectively.

Liquidity and Capital Resources

Net current assets

The table below sets forth a breakdown of our current assets and liabilities as of the dates indicated.

| Current assets:             |     | As           
 of March 31, 
 2024         |           |     | 2023 |           |     | Variance 
 Amount   |          |   |     | % |        |    |
|:----------------------------|:----|:-------------|----------:|:----|:-----|----------:|:----|:---------|---------:|:--|:----|:--|-------:|:---|
| Cash                        
 and cash equivalents        |     | $            | 2,314,926 |     | $    | 2,195,190