v3.26.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 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 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:

 

                
    Year ended December 31, 2023 
   Retails Sales   Export Sales   Leather Trading   Corporate and unallocated   Total 
Revenues, net                         
From third party  $5,072,103   $310,931,362   $-   $-   $316,003,465 
From related parties   217    167,303    9,813,484    -    9,981,004 
Revenues   5,072,320    311,098,665    9,813,484    -    325,984,469 
Cost of goods sold   (1,784,687)   (228,577,666)   (9,375,723)   -    (239,738,076)
                          
Gross profit   3,287,633    82,520,999    437,761    -    86,246,393 
                          
Operating expenses:                         
Sales and distribution expenses   (2,293,149)   (49,195,624)   (134,017)   -    (51,622,790)
General and administrative expenses   (1,033,897)   (16,230,978)   (9,018)   (126,208)   (17,400,101)
Total operating expenses   (3,327,046)   (65,426,602)   (143,035)   (126,208)   (69,022,891)
                          
Operating income (loss)   (39,413)   17,094,397    294,726    (126,208)   17,223,502 
                          
Other income (expenses):                         
Interest expense   (156,409)   (459,766)   (265,542)   -    (881,717)
Interest income   -    339,246    105    -    339,351 
Government subsidies   9,851    32,488    -    -    42,339 
Foreign exchange gain (loss), net   22,788    (8,194,956)   (25,505)   1,040    (8,196,633)
Scrap sofa sale income   -    696,290    -    -    696,290 
Change in fair value of derivatives financial instruments   -    2,841,215    -    -    2,841,215 
Sundry income   49,207    67,828    -    -    117,035 
Total other income (expenses), net   (74,563)   (4,677,655)   (290,942)   1,040    (5,042,120)
                          
Income (loss) before income taxes   (113,976)   12,416,742    3,784    (125,168)   12,181,382 
Income tax expense   -    (1,863,558)   (643)   -    (1,864,201)
                          
Segment income (loss)  $(113,976)  $10,553,184   $3,141   $(125,168)  $10,317,181 

 

                
   Year ended December 31, 2024 
   Retails Sales   Export Sales   Leather Trading   Corporate and unallocated   Total 
Revenues, net                         
From third party  $4,563,729   $309,556,945   $1,747,259   $-   $315,867,933 
From related parties   -    2,486,241    16,706,677    -    19,192,918 
 Revenues   4,563,729    312,043,186    18,453,936    -    335,060,851 
Cost of goods sold   (1,832,485)   (232,617,863)   (17,582,488)   -    (252,032,836)
                          
Gross profit   2,731,244    79,425,323    871,448    -    83,028,015 
                          
Operating expenses:                         
Sales and distribution expenses   (3,604,012)   (50,895,743)   (227,526)   -    (54,727,281)
General and administrative expenses   (1,474,739)   (16,109,737)   (14,509)   250,033    (17,348,952)
Listing expenses   -    -    -    (1,440,130)   (1,440,130)
Total operating expenses   (5,078,751)   (67,005,480)   (242,035)   (1,190,097)   (73,516,363)
                          
Operating income (loss)   (2,347,507)   12,419,843    629,413    (1,190,097)   9,511,652 
                          
Other income (expenses):                         
Interest expense   (211,323)   (430,231)   (401,334)   -    (1,042,888)
Interest income   111    118,637    558    -    119,306 
Government subsidies   15,552    12,488    -    -    28,040 
Foreign exchange gain (loss), net   (8,874)   2,283,833    (63,947)   (26,158)   2,184,854 
Scrap sofa sale income   -    562,310    -    -    562,310 
Change in fair value of derivatives financial instruments   -    (403,350)   -    -    (403,350)
Sundry income (expense)   108,361    53,734    20    (285,526)   (123,411)
Total other income (expense), net   (96,173)   2,197,421    (464,703)   (311,684)   1,324,861 
                          
Income (loss) before income taxes   (2,443,680)   14,617,264    164,710    (1,501,781)   10,836,513 
Income tax expense   -    (2,387,742)   (28,000)   -    (2,415,742)
Segment income (loss)  $(2,443,680)  $12,229,522   $136,710   $(1,501,781)  $8,420,771 

 

 

                
   Year ended December 31, 2025 
   Retails Sales   Export Sales   Leather Trading   Corporate and unallocated   Total 
Revenues, net                         
From third party  $9,115,672   $346,795,003   $276,399   $-   $356,187,074 
From related parties   -    2,804,089    18,884,960    -    21,689,049 
 Revenues   9,115,672    349,599,092    19,161,359    -    377,876,123 
Cost of goods sold   (3,302,812)   (250,842,924)   (18,425,586)   -    (272,571,322)
                          
Gross profit   5,812,860    98,756,168    735,773    -    105,304,801 
                          
Operating expenses:                         
Sales and distribution expenses   (5,857,596)   (60,388,019)   (85,903)   -    (66,331,518)
General and administrative expenses   (1,117,431)   (17,110,481)   (5,982)   (102,988)   (18,336,882)
Listing expenses   -    -    -    (1,265,042)   (1,265,042)
Total operating expenses   (6,975,027)   (77,498,500)   (91,885)   (1,368,030)   (85,933,442)
                          
Operating income (loss)   (1,162,167)   21,257,668    643,888    (1,368,030)   19,371,359 
                          
Other income (expenses):                         
Interest expense   (396,990)   (480,328)   (529,585)   -    (1,406,903)
Interest income   524    22,189    421    -    23,134 
Government subsidies   60,215    9,779    -    -    69,994 
Foreign exchange gain (loss), net   (17,920)   3,416,737    101,532    4,769    3,505,118 
Professional fees on acquisition of HTL Marketing   -    -    -    (1,261,560)   (1,261,560)
Scrap sofa sale income   -    414,664    -    -    414,664 
Change in fair value of derivatives financial instruments   -    (74,765)   -    -    (74,765)
Gain on derecognition of right-of-use asset   90,368    -    -    -    90,368 
Sundry income (expense)   (237)   (262,733)   7    285,526    22,563 
Total other income (expense), net   (264,040)   3,045,543    (427,625)   (971,265)   1,382,613 
                          
Income (loss) before income taxes   (1,426,207)   24,303,211    216,263    (2,339,295)   20,753,972 
Income tax expense   -    (4,163,055)   (36,765)   -    (4,199,820)
                          
Segment income (loss)  $(1,426,207)  $20,140,156   $179,498   $(2,339,295)  $16,554,152 

 

By geographic regions:

 

SCHEDULE OF REVENUES BY GEOGRAPHICAL AREAS 

            
   Year ended December 31, 2023 
By geographic locations  Retails   Export sales   Leather trading   Total 
Asia Pacific  $5,072,320   $65,187,230   $9,813,484   $80,073,034 
Europe   -    194,139,405    -    194,139,405 
North America   -    51,772,030    -    51,772,030 
Total  $5,072,320   $311,098,665   $9,813,484   $325,984,469 

 

               
    Year ended December 31, 2024  
By geographic locations   Retails     Export sales     Leather trading     Total  
                 
Asia Pacific  $4,563,729   $72,830,753   $18,453,936   $95,848,418 
Europe   -    196,591,871    -    196,591,871 
North America   -    42,620,562    -    42,620,562 
Total  $4,563,729   $312,043,186   $18,453,936   $335,060,851 

 

 

               
    Year ended December 31, 2025  
By geographic locations   Retails     Export sales     Leather trading     Total  
                 
Asia Pacific  $9,115,672   $73,328,887   $19,161,359   $101,605,918 
Europe   -    225,547,377    -    225,547,377 
North America   -    50,722,828    -    50,722,828 
Total  $9,115,672   $349,599,092   $19,161,359   $377,876,123 

 

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

 

 SCHEDULE OF IDENTIFIABLE LONG LIVED ASSETS

             
   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 

 

             
   As of December 31, 2025 
   Retail Sales   Export Sales   Leather Trading   Total 
                 
Property, plant and equipment, net   776,528    3,577,555    123    4,354,206 
Right-of-use assets, net   6,216,681    1,146,631    -    7,363,312 
Identifiable long-lived assets   6,993,209    4,724,186    123    11,717,518