v3.26.1
RELATED PARTY BALANCES AND TRANSACTIONS
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY BALANCES AND TRANSACTIONS

NOTE 15 － RELATED PARTY BALANCES AND TRANSACTIONS

 

Nature of relationships with related parties:

 

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
HTL Leather Trading (Yangzhou) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders, closed on January 10, 2025
HTL Leather (China) Co., Ltd.   Entity controlled by two common controlling beneficial shareholders
HTL Manufacturing Pte Ltd.   Entity controlled by two common controlling beneficial shareholders, sold out on April 22, 2025

 

 

Related party balances consisted of the following:

 

             
         As of December 31, 
         2024   2025 
Name  Nature           
Gruppo 8 S.R.L.  Accounts receivable – related parties  (a)  $26,025   $101,783 
Corium Italia S.R.L  Accounts receivable – related parties  (a)   287,910    154,660 
Trends Leather (Yangzhou) Co., Ltd  Accounts receivable – related parties  (a)   615,016    5,507,066 
Accounts receivables         $928,951   $5,763,509 
                 
HTL Global Pte. Ltd.  Amount due from related party  (b)  $996,316   $2,708,435 
New Century International Homes Pte Ltd  Amount due from related party  (b)   1,811,538    1,571,817 
Golden Hill Capital Pte Ltd  Amount due from related party  (b)   -    2,745,840 
Amounts due from related parties        $2,807,854   $7,026,092 
                 
HTL Furniture (China) Co., Ltd.  Accounts payable – related parties  (c)  $10,998,808   $4,587,578 
HTL Furniture (Changshu) Co., Ltd  Accounts payable – related parties  (c)   32,467,504    32,088,012 
HTL Furniture (Kunshan) Co., Ltd  Accounts payable – related parties  (c)   18,118,921    16,747,618 
HTL Furniture (Huai An) Co., Ltd  Accounts payable – related parties  (c)   9,031,916    8,173,680 
HTL Import/Export Trading (Kunshan) Co., Ltd  Accounts payable – related parties  (c)   22,885    176,533 
HTL Furniture Vietnam Company Limited.  Accounts payable – related parties  (c)   1,398,608    12,017,175 
HTL Furniture (Yangzhou) Co. Ltd  Accounts payable – related parties  (c)   -    85,458 
HTL Product Design (Kunshan) Co., Ltd  Accounts payable – related parties  (c)   659,510    845,404 
HTL Middle East Furniture L.L.C  Accounts payable – related parties  (c)   26,647    29,900 
Corium Italia S.R.L  Accounts payable – related parties  (c)   -    45,215 
Gruppo 8 S.R.L.  Accounts payable – related parties  (c)   -    94,416 
Accounts payable, related parties        $72,724,799   $74,890,989 
                 
HTL Global Pte. Ltd.  Amount due to related party  (d)  $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, interest-free, 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 by the Company in the normal course of business, which are unsecured, interest-free and repayable on demand.
   
(d) These balances represented non-trade temporary advances, which are unsecured, interest-free and has no fixed terms of repayment.

 

On May 5, 2025, HTL Marketing and certain related parties entered a deed of global settlement involving debt restructuring under the corporate reorganization exercise.

 

For the year ended December 31, 2024, the application of these settlement arrangements decreased the gross accounts receivable, related parties, accounts payable, related parties, amounts due from related parties, and amounts due to related parties by $10,829,065, $83,709, $9,753,843, and $478,872, respectively with no gain or loss impact on the consolidated and combined statements of operations and comprehensive income.

 

For the year ended December 31, 2025, the application of these settlement arrangements decreased the gross accounts receivable, related parties, accounts payable, related parties, and amounts due from related parties by $4,189,728, $0, and $15,973,753, respectively with no gain or loss impact on the consolidated and combined statements of operations and comprehensive income.

 

 

As of December 31, 2024, the net balance of accounts receivable, related parties, accounts payable, related parties, amounts due from related parties, and amounts due to related parties were $928,951, $72,724,799, $2,807,854, and $292,753, respectively.

 

As of December 31, 2025, the net balance of accounts receivable, related parties, accounts payable, related parties, and amounts due from related parties were $5,763,509, $74,890,989, and $7,026,092, respectively.

 

In the ordinary course of business, during the years ended December 31, 2023, 2024 and 2025, the Company has involved with transactions, either at cost or current market prices and on normal commercial terms among related parties. The following table provides the transactions with these parties for the years, as presented (for the portion of such period that they were considered related):

  

          
   Years ended December 31, 
   2023   2024   2025 
Name of related parties  Nature            
                
HTL Furniture Inc  Sale of sofa  $168,910   $212,654   $143,808 
New Century Trading（India）Private Limited  Sale of sofa   217    2,273,588    2,660,281 
Corium Italia S.R.L  Sale of sofa   (1,607)   -    - 
HTL Leather Trading (Yangzhou) Co., Ltd.  Sale of leather   7,015,330    -    - 
Trends Leather (Yangzhou) Co., Ltd.  Sale of leather   2,105,669    16,706,676    18,884,960 
HTL Leather (China) Co., Ltd.  Sale of leather   692,485    -    - 
Revenues     $9,981,004   $19,192,918   $21,689,049 
                   
Corium Italia S.R.L  Purchase of goods  $28,008   $14,410   $- 
HTL Import/Export Trading (Kunshan) Co. Ltd.  Purchase of goods   132,563    92,165    461,824 
Gruppo 8 S.R.L.  Purchase of goods   -    105,344    835,250 
New Century Sofa India Private Limited  Purchase of goods   1,217,589    8,044,440    7,910,832 
HTL Furniture (Huai An) Co., Ltd.  Purchase of goods   17,289,382    10,967,375    9,797,106 
HTL Furniture Vietnam Company Limited.  Purchase of goods   -    3,901,169    21,255,119 
HTL Furniture (Kunshan) Co., Ltd.  Purchase of goods   33,666,337    32,054,553    28,965,947 
HTL Furniture (Changshu) Co., Ltd.  Purchase of goods   68,735,988    74,784,827    83,491,944 
HTL Furniture (China) Co., Ltd.  Purchase of goods   107,277,084    107,053,182    104,218,558 
Trends Leather Yangzhou Co Ltd  Purchase of sample leather   3,288    1,182    1,231 
Payables     $228,350,239   $237,018,647   $256,937,811 
                   
HTL Global Pte. Ltd.  Commission income  $-   $-   $14,573 
Gruppo 8 S.R.L.  Commission income   -    27,205    69,409 
Corium Italia S.R.L  Commission income   240,662    107,049    - 
Other income     $240,662   $134,254   $83,982 
                   
New Century Trading（India）Private Limited -Mumbai  Commission expense  $55,358   $253,695   $377,863 
HTL Furniture Inc  Commission expense   2,193,852    1,979,659    2,038,722 
HTL Furniture Inc  Service fee   -    453,795    395,290 
Other expense     $2,249,210   $2,687,149   $2,811,875 
                   
HTL Furniture (Yangzhou) Co. Ltd  Professional fee  $-   $-   $522,234 
HTL Import/Export Trading (Kunshan) Co. Ltd  Professional fee   -    110,392    560,638 
HTL Product Design (Kunshan) Co. Ltd  Professional fee   4,200,561    5,411,696    5,178,857 
 Professional fee     $4,200,561   $5,522,088   $6,261,729 
                   
HTL Global Pte. Ltd. (SG)  Recharge of costs  $-   $104,381   $6,905 
HTL MIDDLE EAST FURNITURE L.L.C  Recharge of costs   -    -    119,015 
New Century Trading（India）Private Limited  Recharge of costs   1,045,600    -    - 
Recharge of costs     $1,045,600   $104,381   $125,920 
                   
H.T.L. Furniture, Inc.  Showroom expense  $494,660   $552,824   $524,897 
New Century International Homes Pte Ltd  Office rental income  $-   $-   $4,609 
New Century Trading（India）Private Limited  Ocean freight recharge  $-   $-   $242,249 
HTL Furniture Inc  Customers’ claims  $-   $-   $40,426 
HTL Global Pte. Ltd. (SG)  Management fees  $-   $-   $3,452 
HTL Manufacturing Pte Ltd  Other income - Service fee  $114,657   $-   $- 

 

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

 

 

Corporate guarantee from GHC

 

As of December 31, 2024 and 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).