v3.25.2
RELATED PARTY BALANCES AND TRANSACTIONS
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
RELATED PARTY BALANCES AND TRANSACTIONS

NOTE 13 － RELATED PARTY BALANCES AND TRANSACTIONS

 

Nature of relationships with related parties are summarized, as follows:

 

Name of related party   Relationship with the Company
New Century International Homes Pte. Ltd.   Controlling shareholder
Golden Hill Capital Pte. Ltd. (“GHC”)   Major shareholder
Golden Hill Capital Ltd.   Indirect major shareholder
Gruppo 8 S.R.L.   Entity controlled by two common controlling beneficial shareholders
H.T.L. Furniture, Inc.   Entity controlled by two common controlling beneficial shareholders
Corium Italia S.R.L.   Entity controlled by two common controlling beneficial shareholders
HTL Global Pte. Ltd.   Entity controlled by two common controlling beneficial shareholders
New Century Trading (India) Private Limited   Entity controlled by two common controlling beneficial shareholders
HTL Furniture (China) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Furniture (Changshu) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Sofa (Kunshan) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Furniture (Yangzhou) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Furniture (Huaian) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Furniture Vietnam Company Limited.   Entity controlled by two common controlling beneficial shareholders
HTL Product Design (Kunshan) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Import/Export Trading (Kunshan) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
New Century Sofa India Private Limited   Entity controlled by two common controlling beneficial shareholders
Trends Leather (Yangzhou) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Middle East Furniture LLC   Entity controlled by two common controlling beneficial shareholders
New Century Overseas Investments Pte. Ltd.   Entity controlled by two common controlling beneficial shareholders
New Century Home Pte. Ltd.   Entity controlled by two common controlling beneficial shareholders

 

Related party balances consisted of the following:

 

Name  Nature        
        As of 
Name  Nature    December 31,2024   June 30,2025 
Gruppo 8 S.R.L.  Accounts receivable – related parties (a)  $26,025   $72,830 
Corium Italia S.R.L.  Accounts receivable – related parties (a)   287,910    281,056 
Trends Leather (Yangzhou) Co., Ltd.  Accounts receivable – related parties (a)   615,016    - 
Accounts receivables        $928,951   $353,886 
                
HTL Global Pte. Ltd.  Amount due from related party (b)  $996,316   $3,395,916 
New Century International Homes Pte. Ltd.  Amount due from related party (b)   1,811,538    1,571,817 
Amounts due from related parties       $2,807,854   $4,967,733 
                
HTL Furniture (China) Co., Ltd.  Accounts payable – related parties (c)  $10,998,808   $8,810,225 
HTL Furniture (Changshu) Co., Ltd.  Accounts payable – related parties (c)   32,467,504    19,438,331 
HTL Sofa (Kunshan) Co., Ltd.  Accounts payable – related parties (c)   18,118,921    15,783,278 
HTL Furniture (Huaian) Co., Ltd.  Accounts payable – related parties (c)   9,031,916    5,061,620 
HTL Import/Export Trading (Kunshan) Co., Ltd.  Accounts payable – related parties (c)   22,885    254,303 
HTL Furniture Vietnam Company Limited.  Accounts payable – related parties (c)   1,398,608    5,165,713 
HTL Furniture (Yangzhou) Co., Ltd.  Accounts payable – related parties (c)   -    45,380 
HTL Product Design (Kunshan) Co., Ltd.  Accounts payable – related parties (c)   659,510    687,620 
HTL Middle East Furniture LLC  Accounts payable – related parties (c)   26,647    7,999 
Accounts payable, related parties       $72,724,799   $55,254,469 
                
HTL Global Pte. Ltd.  Amount due to related party (d)  $292,753   $292,753 

 

(a)Accounts receivable due from related parties represented trade receivables from the sale of goods with the Company in the normal course of business, which are unsecured, non-interesting bearing and grant with credit terms ranging from 60 to 90 days from the issue date of invoice.
(b)These balances represented non-trade temporary advances made by the Company, which are unsecured, interest-free and repayable on demand.
(c)Accounts payable due to related parties represented trade payables from the purchase of goods to the Company in the normal course of business, which are unsecured, non-interesting bearing and payable on demand.
(d)These balances represented non-trade temporary advances, which are unsecured, interest-free and has no fixed terms of repayment.

 

 

HOMESTOLIFE LTD AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

On May 5, 2025, HTL Marketing and certain related parties entered a deed of global settlement involving debt restructuring under the corporate reorganization exercise. The effect of netting arrangements on its financial position for recognized assets and liabilities as of December 31, 2024 and June 30, 2025 are as follows:

 

  US$   US$   US$   US$   US$   US$ 
   As of December 31, 2024 
   Gross   Impact from offsetting arrangement     
  

Accounts

receivable

  

Accounts

payable

   Written-off  

Debt

extinguishment

   Netting-off   Net balance 
  US$   US$   US$   US$   US$   US$ 
Trading:                        
Trends Leather (Yangzhou) Co., Ltd.   3,943,267    -    (3,328,251)   -    -    615,016 
H.T.L. Furniture, Inc.   816,417    -    (816,417)   -    -    - 
New Century Trading (India) Private Limited   1,595,156    (106,606)   (1,488,550)   -    -    - 
Gruppo 8 S.R.L.   5,510,429    (288,557)   (5,195,847)   -    -    26,025 
Corium Italia S.R.L.   287,910    -    -    -    -    287,910 
Accounts receivable - related parties   12,153,179    (395,163)   (10,829,065)   -    -    928,951 
                               
New Century Sofa India Private Limited   -    (83,709)   -    83,709    -    - 
HTL Furniture (China) Co., Ltd.   -    (67,614,759)   -    -    56,615,951    (10,998,808)
HTL Furniture (Changshu) Co., Ltd.   -    (49,265,863)   -    -    16,798,359    (32,467,504)
HTL Sofa (Kunshan) Co., Ltd.   -    (18,118,921)   -    -    -    (18,118,921)
HTL Furniture (Huaian) Co., Ltd.   -    (9,031,916)   -    -    -    (9,031,916)
HTL Import/Export Trading (Kunshan) Co., Ltd.   -    (22,885)   -    -    -    (22,885)
HTL Furniture Vietnam Company Limited.   -    (1,398,608)   -    -    -    (1,398,608)
HTL Product Design (Kunshan) Co., Ltd.   -    (659,510)   -    -    -    (659,510)
HTL Middle East Furniture LLC   -    (26,647)   -    -    -    (26,647)
Accounts payable – related parties   -    (146,222,818)   -     83,709    73,414,310    (72,724,799)
                               
Non-trading:                              
HTL Manufacturing Pte Ltd   265,866    -    (265,866)   -    -    - 
H.T.L. Furniture, Inc.   976,175    -    (976,175)   -    -    - 
HTL Capital Pte. Ltd.   4,746,889    -    (4,746,889)   -    -    - 
New Century Overseas Investments Pte. Ltd.   3,044,213    -    (3,044,213)   -    -    - 
New Century Home Pte. Ltd.   720,700    -    (720,700)   -    -    - 
HTL Global Pte. Ltd.   996,316    -    -    -    -    996,316 
Golden Hill Capital Pte. Ltd.   56,615,951    -    -    -    (56,615,951)   - 
New Century International Homes Pte. Ltd.   18,609,897    -    -    -    (16,798,359)   1,811,538 

Amounts due from related parties

   85,976,007    -    (9,753,843)   -    (73,414,310)   2,807,854 
                               
Gruppo 8 S.R.L.   -    (288,557)   288,557    -    -    - 
New Century Trading (India) Private Limited   -    (106,606)   106,606    -    -    - 
New Century Sofa India Private Limited   -    (83,709)   83,709    -    -    - 
HTL Global Pte. Ltd.   -    (292,753)   -    -    -    (292,753)
Amounts due to related parties   -    (771,625)   478,872    -    -    (292,753)

 

 

HOMESTOLIFE LTD AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

  US$   US$   US$   US$   US$   US$ 
   As of June 30, 2025 
   Gross   Impact from offsetting arrangement     
  

Accounts

receivable

  

Accounts

payable

   Written-off  

Debt

extinguishment

   Netting-off   Net balance 
  US$   US$   US$   US$   US$   US$ 
Trading:                        
Trends Leather (Yangzhou) Co. Ltd.   717,290    (543)   (716,747)   -    -    - 
H.T.L. Furniture, Inc.   1,910,579    (1,312,995)   (597,584)   -    -    - 
New Century Trading (India) Private Limited   2,200,345    (57,013)   (2,143,332)   -    -    - 
Gruppo 8 S.R.L.   826,532    (752,214)   (1,488)   -    -    72,830 
Corium Italia S.R.L.   326,171    (45,115)   -    -    -    281,056 
Accounts receivable - related parties   5,980,917    (2,167,880)   (3,459,151)   -    -    353,886 
                               
New Century Sofa India Private Limited   -    (379,948)   -    379,948    -    - 
HTL Furniture (China) Co., Ltd.   -    (61,004,668)   -    -    52,194,443    (8,810,225)
HTL Furniture (Changshu) Co., Ltd.   -    (41,960,720)   -    -    22,522,389    (19,438,331)
HTL Furniture (Kunshan) Co., Ltd.   -    (15,783,278)   -    -    -    (15,783,278)
HTL Furniture (Huai An) Co., Ltd.   -    (5,061,620)   -    -    -    (5,061,620)
HTL Import/Export Trading (Kunshan) Co., Ltd.   -    (254,303)   -    -    -    (254,303)
HTL Furniture Vietnam Company Limited.        (5,165,713)   -    -    -    (5,165,713)
HTL Product Design (Kunshan) Co., Ltd.   -    (687,620)   -    -    -    (687,620)
HTL Middle East Furniture LLC   -    (7,999)   -    -    -    (7,999)
HTL Furniture (Yangzhou) Co., Ltd.   -    (45,380)   -    -    -    (45,380)
Accounts payable – related parties   -    (130,351,249)   -    379,948    74,716,832    (55,254,469)
                               
Non-trading:                              
H.T.L Furniture, Inc.   1,000,000    -    (1,000,000)   -    -    - 
HTL Capital Pte. Ltd.   4,746,889    -    (4,746,889)   -    -    - 
New Century Overseas Investments Pte. Ltd.   3,044,213    -    (3,044,213)   -    -    - 
New Century Home Pte. Ltd.   720,700    -    (720,700)   -    -    - 
HTL Global Pte. Ltd.   3,395,916    -    -    -    -    3,395,916 
Gruppo 8 S.R.L   6,447,650    -    (6,447,650)   -    -    - 
Golden Hill Capital Pte. Ltd.   57,477,113    -    -    -    (57,477,113)   - 
New Century International Homes Pte. Ltd.   18,811,538    -    -    -    (17,239,721)   1,571,817 

Amounts due from related parties

   95,644,019    -    (15,959,452)   -    (74,716,834)   4,967,733 
                               
HTL Global Pte. Ltd.   -    (292,753)   -    -    -    (292,753)
Amounts due to related parties   -    (292,753)   -    -    -    (292,753)

 

In the ordinary course of business, during the six months ended June 30, 2024 and 2025, the Company has involved with transactions, either at cost or current market prices and on the normal commercial terms among related parties. The following table provides the transactions with these parties for the periods as presented (for the portion of such period that they were considered related):

 

 

HOMESTOLIFE LTD AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

  

Name of related parties  Nature  2024　   2025　 
   Six months ended June 30, 
Name of related parties  Nature  2024　   2025　 
            
H.T.L. Furniture, Inc.  Sale of Sofa  $121,714   $58,521 
New Century Trading (India) Private Limited  Sale of Sofa   651,301    1,491,502 
 Sale of Sofa     $773,015   $1,550,023 
              
Trends Leather (Yangzhou) Co., Ltd.  Sale of leather materials  $5,077,482   $9,106,919 
              
Gruppo 8 S.R.L.  Purchase of goods   9,833    585,175 
HTL Furniture (Huaian) Co., Ltd.  Purchase of goods   4,773,169    5,056,779 
HTL Furniture (Changshu) Co., Ltd.  Purchase of goods   34,679,920    40,378,968 
HTL Furniture (China) Co., Ltd.  Purchase of goods   50,628,327    51,541,144 
HTL Furniture (Kunshan) Co., Ltd.  Purchase of goods   15,305,317    13,726,028 
HTL Furniture Vietnam Company Limited.  Purchase of goods   85,793    6,922,039 
HTL Import/Export Trading (Kunshan) Co. Ltd.  Purchase of goods   36,056    281,230 
New Century Sofa India Private Limited  Purchase of goods   2,898,335    4,813,224 
 Purchase of goods     $108,416,750   $123,304,587 
              
Corium Italia S.R.L.  Commission income  $100,236   $- 
Gruppo 8 S.R.L.  Commission income   -    40,590 
HTL Global Pte. Ltd.  Commission income   -    14,344 
Commission income     $100,236   $54,934 
              
H.T.L. Furniture, Inc.  Commission expense  $939,512   $1,076,116 
New Century Trading (India) Private Limited  Commission expense   55,217    119,364 
H.T.L. Furniture Inc.  Service fee   240,357    350,844 
Service fee     $1,235,086   $1,546,324 
              
HTL Product Design (Kunshan) Co., Ltd.  Professional fee  $2,666,610   $2,576,325 
HTL Import/Export Trading (Kunshan) Co., Ltd.  Professional fee  $-   $139,249 
HTL Furniture (Yangzhou) Co., Ltd.  Professional fee  $-   $93,604 
              
H.T.L. Furniture, Inc.  Showroom rental expense  $100,000   $100,000 
              
New Century International Homes Pte. Ltd.  Office rental income  $-   $2,283 
              
Trends Leather (Yangzhou) Co., Ltd.  Purchase of sample leather  $1,182   $543 
              
H.T.L. Furniture, Inc.  Exhibition fee  $171,639   $- 
              
New Century Trading (India) Private Limited  Recharge of costs  $677,118   $- 
HTL Middle East Furniture LLC  Recharge of costs  $-   $47,992 
HTL Global Pte. Ltd.  Recharge of costs  $-   $4,567 
              
HTL Global Pte. Ltd.  Management fees  $-   $2,489 

 

Apart from the transactions and balances detailed above and elsewhere in these accompanying unaudited condensed consolidated and combined financial statements, the Company has no other significant or material related party transactions during the periods presented.

 

 

HOMESTOLIFE LTD AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

Corporate guarantee from GHC

 

As of December 31, 2024 and June 30, 2025, GHC provided an irrevocable corporate guarantee with a maximum aggregate amount of $50 million to various financial institutions in Singapore to secure the banking facilities borrowed by HTL Marketing. The corporate guarantee expires six months after the full repayment of all loans (see Note 7).