v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 3 －SEGMENT INFORMATION

 

The Company manages its operations under three segments for the purpose of assessing performance and making operating decisions – Retail Business (“Retails”), Export Sales Business (“Export Sales”) and Leather Trading (“Leather Trading”). The Company’s CODM is Chief Executive Officer (CEO). The CODM allocates resources and evaluates the performance of the Company using information about combined net income from operations. All significant operating decisions are based upon an analysis of the Company as three operating segments, which are the same as its reporting segments.

 

The Company organizes its business segments based on the nature of products and services offered, and the economic characteristics of each segment.

 

Following is a brief description of the activities of the Company’s business segments.

 

Retail

 

The Retail segment of the Company includes the results of operations of HTL SG and HTLK. These entities share characteristics such as the end customers being individual consumers, and sales being more focused on product sales in Singapore and Korea. For Singapore’s retail sale, it has digital platform sales. For Korea’s retail business, it further encompasses two specific models: franchisee business and department sale, which supplement the direct retail operations and expand the reach to local consumers.

 

Export Sales

 

The Export Sales segment of the Company includes the results of operations of HTL FE, HTLF, HTLA, HTLJ, HTLUK, and HTL Marketing in relation to export sales. These entities share similar characteristics such as customers being businesses and being primarily product-related businesses.

 

Leather Trading

 

The Leather Trading segment of the Company includes the results of operations of HTL Marketing in relation to leather trading. These entities share characteristics such as the end customers being corporate consumers, and sales being more focused on leather materials.

 

Selected Financial Data by Business Segment

 

Net sales and operating profit of the Company’s business segments exclude intersegment sales, cost of sales and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment. The Company’s Chief Executive Officer (CEO) serves as the CODM and is responsible for reviewing segment performance and making decisions regarding resource allocation. The Company’s CODM evaluates each segment’s performance based on metrics such as net sales, operating profit, and other key financial indicators, guiding strategic decisions to align with company-wide goals.

 

Summary Operating Results

 

The operating results of each business segment were as follows:

 

 

   Retail Sales   Export Sales   Leather Trading   Corporate and unallocated   Total  
   Six months ended June 30, 2024 
   Retail Sales   Export Sales   Leather Trading   Corporate and unallocated   Total  
                          
Revenues, net                         
From third party  $2,003,351   $147,484,078   $974,183   $-   $150,461,612 
From related parties   -    773,015    5,077,482    -    5,850,497 
 Revenues   2,003,351    148,257,093    6,051,665    -    156,312,109 
Cost of goods sold   (776,807)   (107,820,138)   (5,779,207)   -    (114,376,152)
                          
Gross profit   1,226,544    40,436,955    272,458    -    41,935,957 
                          
Operating expenses:                         
Sales and distribution   (1,362,959)   (24,754,901)   (108,358)   -    (26,226,218)
General and administrative   (616,212)   (7,262,510)   (3,553)   (95,956)   (7,978,231)
Listing expenses   -    -    -    (310,502)   (310,502)
Total operating expenses   (1,979,171)   (32,017,411)   (111,911)   (406,458)   (34,514,951)
                          
Operating (loss) profit   (752,627)   8,419,544    160,547    (406,458)   7,421,006 
                          
Other income (expenses):                         
Interest expense   (93,345)   (143,112)   (150,806)   -    (387,263)
Interest income   -    94,861    179    -    95,040 
Government subsidies   13,689    7,543    -    -    21,232 
Foreign exchange gain (loss), net   (523)   532,768    2,176    (1,512)   532,909 
Scrap sofa sale income   -    303,452    -    -    303,452 
Sundry income   27,144    54,669    3    -    81,816 
Change in fair value of derivatives and hedging instruments   -    (1,064,841)   -    -    (1,064,841)
Total other expense, net   (53,035)   (214,660)   (148,448)   (1,512)   (417,655)
                          
Income (loss) before income expense   (805,662)   8,204,884    12,099    (407,970)   7,003,351 
Income tax expense   -    (1,635,679)   (2,056)   -    (1,637,735)
                          
Segment income (loss)  $(805,662)  $6,569,205   $10,043   $(407,970)  $5,365,616 

 

 

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)

 

   Retail Sales   Export Sales   Leather Trading   Corporate and unallocated   Total  
   Six months ended June 30, 2025 
   Retail Sales   Export Sales   Leather Trading   Corporate and unallocated   Total 
                     
Revenues, net                         
From third party  $3,382,273   $166,459,189   $276,399   $-   $170,117,861 
From related parties   -    1,550,023    9,106,919    -    10,656,942 
 Total Revenues   3,382,273    168,009,212    9,383,318    -    180,774,803 
Cost of goods sold   (1,401,494)   (120,526,294)   (9,014,470)   -    (130,942,258)
                          
Gross profit   1,980,779    47,482,918    368,848    -    49,832,545 
                          
Operating expenses:                         
Sales and distribution   (2,404,689)   (28,634,760)   (52,661)   -    (31,092,110)
General and administrative   (906,968)   (8,099,908)   (3,025)   (16,030)   (9,025,931)
Listing expenses   -    -    -    (666,021)   (666,021)
Total operating expenses   (3,311,657)   (36,734,668)   (55,686)   (682,051)   (40,784,062)
                          
Operating profit (loss)   (1,330,878)   10,748,250    313,162    (682,051)   9,048,483 
                          
Other income (expenses):                         
Interest expense   (125,183)   (394,423)   (210,766)   -    (730,372)
Interest income   130    15,946    170    -    16,246 
Government subsidies   12,238    4,712    -    -    16,950 
Foreign exchange gain (loss), net   (9,647)   4,292,067    6,215    4,998    4,293,633 
Net gain from related parties debt restructuring   -    -    -    1,460,543    1,460,543 
Professional fees on acquisition of HTL Marketing   -    (133,960)   -    (1,127,600)   (1,261,560)
Scrap sofa sale income   -    223,263    -    -    223,263 
Sundry income (expense)   78,284    21,551    7    (60,438)   39,404 
Change in fair value of derivatives and hedging instruments   -    (753,243)   -    -    (753,243)
Total other income (expenses), net   (44,178)   3,275,913    (204,374)   277,503    3,304,864 
                          
Income (loss) before income expense   (1,375,056)   14,024,163    108,788    (404,548)   12,353,347 
Income tax expense   -    (2,310,779)   (18,493)   -    (2,329,272)
                          
Segment income (loss)  $(1,375,056)  $11,713,384   $90,295   $(404,548)  $10,024,075 

 

By geographic regions:

 

SCHEDULE OF REVENUES BY GEOGRAPHICAL AREAS 

    Retail Sales    Export Sales    Leather Trading    Total 
   Six months ended June 30, 2024 
    Retail Sales    Export Sales    Leather Trading    Total 
                     
Asia Pacific  $2,003,351   $34,805,411   $6,051,665   $42,860,427 
Europe   -    94,433,035    -    94,433,035 
North America   -    19,018,647    -    19,018,647 
Total  $2,003,351   $148,257,093   $6,051,665   $156,312,109 

 

   Retail Sales   Export Sales   Leather Trading   Total 
   Six months ended June 30, 2025 
   Retail Sales   Export Sales   Leather Trading   Total 
                     
Asia Pacific  $3,382,273   $35,917,394   $9,383,318   $48,682,985 
Europe   -    109,989,204    -    109,989,204 
North America   -    22,102,614    -    22,102,614 
Total  $3,382,273   $168,009,212   $9,383,318   $180,774,803 

 

The following tables present the summary of identifiable long-lived assets as of December 31, 2024 and June 30, 2025:

 

 SCHEDULE OF IDENTIFIABLE LONG LIVED ASSETS

   Retail Sales   Export Sales   Leather Trading   Total 
   As of December 31, 2024 
   Retail Sales   Export Sales   Leather Trading   Total 
                 
Property, plant and equipment, net   220,603    3,512,311    1,243    3,734,157 
Right-of-use assets, net   5,064,993    1,567,756    -    6,632,749 
 Identifiable long-lived assets   5,285,596    5,080,067    1,243    10,366,906 

 

 

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)

 

   Retail Sales   Export Sales   Leather Trading   Total 
   As of June 30, 2025 
   Retail Sales   Export Sales   Leather Trading   Total 
                 
Property, plant and equipment, net   708,669    3,790,236    683    4,499,588 
Right-of-use assets, net   5,774,589    1,482,139    -    7,256,728 
  Identifiable long-lived assets   6,483,258    5,272,375    683    11,756,316