Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 16

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 16
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3, Hong Kong STC is an independent, not-for-profit testing, inspection
and certification organization in Hong Kong offering product certifications for prompting product safety and quality compliance. Obtaining
certifications from Hong Kong STC for our products is not a regulatory requirement with respect to sales of our products in Hong Kong,
but an important step of our product quality control process. We have obtained the testing reports issued by Hong Kong STC with respect
to some of our key products -- LIVING Agaricus, LIVING Astaxanthin, LIVING Camu-Camu, LIVING Energy, LIVING Flax and LIVING Perfect,
confirming that the products have complied with Escherichia coli Limits specified in the Microbiological Guidelines for HK Food
and Environmental Hygiene Department and the tested orlistat, phenolphthalein and organochlorine pesticides of the submitted sample were
below the detectable level. In addition, LIVING Agaricus, LIVING Astaxanthin, LIVING Camu-Camu, LIVING Energy, LIVING Flax and LIVING
Perfect are eligible to bear the “STC Certified” Mark, a product quality certification market issued by The Hong Kong Certification
Centre Ltd (HKCC), a subsidiary of STC, that launched the “STC Certified” Mark as an independent certification scheme for
product quality to help consumer to identify the products certified by HKCC according to relevant local and international standards.

Long term business relationship with product suppliers

Stable supply of good quality of homeopathic products is critical to our business prospect and future revenue. We have not entered into written contracts with our suppliers, which in our commercial judgment relieves us from a binding minimum procurement amount requirement associated with written contracts with our suppliers and gives us more flexibility if we decide to replace any existing suppliers with new suppliers that can better suit our business needs. Even though we do not have written contracts with our suppliers, we have established long term relationship with our product suppliers. We have maintained over a decade of business relationship with the majority of our top 5 suppliers. Stable business relationship with our major suppliers benefits us with continuity of product supply, reduces our business negotiation costs with new suppliers, and avoids distraction to our managerial resources.

Experienced nutritional therapy practitioners and senior management

As of March 31, 2024, among members of our
mentor-mentee program, 585 practitioners, including both our employees and non-employee participants of the mentor-mentee program, are
holders of