Group 1 - HomesToLife Ltd announced a US$1 million investment for a 10% fully diluted stake in Zeica Labs Pte. Ltd, marking a strategic move to enhance its technology capabilities [1][3] - Zeica Labs is a newly formed technology company specializing in spatial-audio technology, particularly the Super X-Fi, which offers immersive sound experiences [2][8] - The collaboration aims to integrate Zeica Labs' patented audio technology into HomesToLife's upcoming furniture collections, supporting the company's strategy to develop next-generation smart home products [4][3] Group 2 - HomesToLife operates globally with two core divisions: consumer retail and wholesale & trade, and has a strong presence in Singapore and Korea [5][7] - The company has over 50 years of heritage and a diversified manufacturing network across China, Vietnam, and India, enhancing its operational efficiency [6][7] - Zeica Labs, founded in July 2025, has a robust portfolio of nearly 100 patents and aims to provide tailored product solutions for B2B customers [8]

Financial Performance - HomesToLife reported a net profit of $13.1 million for 9M 2025, a 71% increase from $7.7 million in 9M 2024[9]. - Total net revenue for 9M 2025 was $275.1 million, reflecting a 15% increase from $238.9 million in the same period last year, driven by a 20% increase in export sales in Europe[6]. - Gross profit rose 25% to $76.1 million in 9M 2025, with gross margin improving to 27.7% from 25.5% in 9M 2024[6]. - Net income for Q3 2025 rose 36% to $3.1 million, translating to earnings per share of $0.03[11]. - Net income for the nine months ended September 30, 2025, was $13,158,544, a 71.5% increase from $7,678,665 in the same period of 2024[23]. - Operating income for Q3 2025 was $4,927,704, compared to $883,528 in Q3 2024, reflecting a significant increase of 457.5%[23]. - The company achieved a gross profit margin of 28.5% for the nine months ended September 30, 2025, compared to 25.4% in the same period of 2024[23]. Revenue and Sales Growth - For Q3 2025, revenue was $94.3 million, a 14% increase from $82.6 million in Q3 2024, with export sales in Europe increasing by 29%[10]. - Revenues for Q3 2025 reached $94,302,780, a 14.5% increase from $82,651,838 in Q3 2024[23]. - Total revenues for the nine months ended September 30, 2025, were $275,077,583, a 15.1% increase from $238,963,947 in the same period of 2024[23]. - For the three months ended September 30, 2025, total revenues increased to $94,302,781, up from $82,651,838 in the same period of 2024, representing a growth of approximately 14.3%[27][28]. Operating Expenses - Operating expenses increased by 18% year-over-year to $62.2 million, primarily due to a 19% rise in selling expenses to $47.4 million[7]. - Total operating expenses for Q3 2025 were $21,373,473, an increase of 18.5% from $18,061,528 in Q3 2024[23]. - The company incurred total operating expenses of $21,373,473 for the three months ended September 30, 2025, compared to $18,061,528 in the same period of 2024, representing an increase of about 18.5%[27][28]. Cash Flow and Financial Position - As of September 30, 2025, the company had $21.8 million in cash and bank balances, with total borrowings of $10.1 million[12]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $4,082,057, compared to $1,978,988 for the same period in 2024, indicating a growth of approximately 106%[29]. - The company reported a net cash used in financing activities of $(7,445,963) for the nine months ended September 30, 2025, compared to a net cash provided of $239,631 in the same period of 2024[29]. - The ending cash balance as of September 30, 2025, was $21,750,924, down from $24,397,506 at the end of the same period in 2024[29]. Foreign Exchange Gains - The company reported foreign exchange gains of $4.5 million in 9M 2025, up from $1.5 million in the same period in 2024[8]. - The company reported a foreign exchange gain of $4,521,221 for the nine months ended September 30, 2025, compared to $1,502,602 in the same period of 2024[23]. - The company recognized a foreign exchange gain of $227,588 for the three months ended September 30, 2025, compared to a gain of $969,693 in the same period of 2024, indicating a decrease of about 76.5%[27][28]. Strategic Initiatives - The acquisition of HTL Marketing Pte. Ltd. completed on May 19, 2025, contributed to the financial results and expansion strategy[5]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[23].

Core Viewpoint - HomesToLife Ltd reported strong financial performance for the nine months ended September 30, 2025, with significant increases in revenue, gross profit, and net income, demonstrating resilience through a diversified export model and disciplined cost control [2][3][6]. Financial Highlights - **Net Revenue**: Increased by 15% to $275.1 million in 9M 2025 from $238.9 million in 9M 2024, driven by a 20% increase in Europe and an 11% increase in North America [3][6]. - **Gross Profit**: Rose by 25% to $76.1 million, with gross margin improving to 27.7% from 25.5% [3][6]. - **Net Income**: Increased by 71% to $13.2 million, translating to earnings per share of $0.15, up from $0.09 [6][8]. Operating Expenses - **Total Operating Expenses**: Increased by 18% to $62.1 million, primarily due to a 19% rise in selling expenses to $47.3 million, influenced by higher freight costs and start-up costs related to the South Korea retail acquisition [4][5]. - **General and Administrative Expenses**: Increased by 11% to $13.8 million, mainly due to higher staff costs and expenses related to the Nasdaq listing [5]. Q3 2025 Performance - **Revenue**: Reported at $94.3 million, a 14% increase from $82.6 million in Q3 2024, with European export sales rising by 29% [7][8]. - **Gross Profit**: Increased by 39% to $26.3 million, with gross margin improving to 27.9% from 22.9% [8]. - **Net Income**: Rose by 36% to $3.1 million, with earnings per share remaining at $0.03 [8]. Financial Position - **Cash and Bank Balances**: As of September 30, 2025, the company had $21.8 million in cash, with total borrowings at $10.1 million, indicating a net cash position of approximately $11.7 million [9][10]. - **Operating Cash Flow**: Generated $4.0 million in 9M 2025, reflecting higher profit and disciplined working capital management [10]. Outlook - **Revenue Guidance for FY2025**: The company maintains its revenue guidance between $360 million to $375 million, emphasizing a robust liquidity position to support strategic growth initiatives [11].

Financial Statements and Reporting - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include necessary adjustments for fair presentation[19]. - The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, reflecting the transfer of goods or services[33]. - Revenue from retail sales is recognized at the point when control of products is transferred to customers, typically upon shipment[40]. - The Company’s export sales revenue is recognized when performance obligations are satisfied, generally upon delivery of goods[44]. - The Company evaluates the terms of agreements to determine whether it acts as a principal or agent in revenue recognition, generally acting as a principal[47]. - The Company adopted the FASB ASU 2016-02 "Leases (Topic 842)" standard, requiring recognition of lease assets and liabilities on the balance sheet for leases over twelve months[54]. - The Company is evaluating the impact of ASU No. 2024-03, which requires enhanced disclosures about costs and expenses in the income statement, effective for annual reporting periods beginning after December 15, 2026[73]. Revenue and Growth - For the six months ended June 30, 2024, total net revenue was $156,312,109, which is projected to increase to $180,774,803 for the same period in 2025, representing a growth of approximately 15.7%[50]. - Export sales accounted for $148,257,093 in revenue for the first half of 2024, expected to rise to $168,009,212 in 2025, indicating a growth of about 13.3%[50]. - Retail sales increased from $2,003,351 in the first half of 2024 to $3,382,273 in 2025, reflecting a significant growth of approximately 68.5%[50]. - Leather trading revenue is projected to grow from $6,051,665 in 2024 to $9,383,318 in 2025, marking an increase of about 55.5%[50]. - For the six months ended June 30, 2025, total net revenues increased to $180,774,803, with retail sales at $3,382,273 and export sales at $168,009,212[84]. - The company reported a segment income of $10,024,075 for the six months ended June 30, 2025, compared to $5,365,616 for the same period in 2024[84]. - The Asia Pacific region generated total revenues of $48,682,985 for the six months ended June 30, 2025, up from $42,860,427 in 2024[84]. Expenses and Profitability - The gross profit for the same period was $41,935,957, resulting in a gross margin of approximately 26.8%[82]. - The gross profit for the six months ended June 30, 2025, was $49,832,545, reflecting a gross margin of approximately 27.6%[84]. - Operating profit for the retail segment was a loss of $752,627, while the export sales segment achieved an operating profit of $8,419,544[83]. - The operating profit for the export sales segment in 2025 was $10,748,250, while the retail segment reported an operating loss of $1,330,878[84]. - Warranty expense for the six months ended June 30, 2024, was $2,769,218, which increased to $4,004,614 in 2025, showing a rise of approximately 44.5%[58]. Assets and Liabilities - As of June 30, 2025, total identifiable long-lived assets amounted to $11,756,316, with property, plant, and equipment netting $4,499,588[86]. - Accounts receivable increased from $66,928,602 as of December 31, 2024, to $71,669,261 as of June 30, 2025, representing a growth of approximately 7.5%[87]. - Total inventories increased from $8,032,089 to $10,613,295, reflecting a significant growth of 32.2%[89]. - Property, plant, and equipment net value increased from $3,734,157 to $4,499,588, a rise of 20.5%[90]. - Short-term borrowings surged from $15,255,874 to $23,382,206, marking a substantial increase of 53.3%[91]. Taxation - The effective income tax rate for both periods presented is 17%, with income before income taxes increasing from $7,003,351 in 2024 to $12,353,347 in 2025, representing a growth of 76.5%[16]. - Current income tax expense for the six months ended June 30, 2025, is $2,465,661, an increase from $1,665,092 in 2024, reflecting a growth of 47.9%[12]. - The income tax expense for the six months ended June 30, 2025, is $2,329,272, up from $1,637,735 in 2024, marking an increase of 42.4%[16]. - The company did not incur any interest and penalties related to potential underpaid income tax expenses for the six months ended June 30, 2024, and 2025[117]. - The company has no significant unrecognized uncertain tax positions as of June 30, 2025[117]. Related Party Transactions - Related party accounts receivable decreased from $928,951 as of December 31, 2024, to $353,886 as of June 30, 2025[120]. - Amounts due from related parties increased significantly from $2,807,854 as of December 31, 2024, to $4,967,733 as of June 30, 2025, indicating a growth of 76.8%[120]. - Accounts payable to related parties decreased from $72,724,799 as of December 31, 2024, to $55,254,469 as of June 30, 2025, a reduction of 24.1%[120]. - The total amount due from related parties was $95,644,019, with a net balance of $4,967,733 after adjustments[124]. - Accounts payable to related parties totaled $130,351,249 as of June 30, 2025, with a net balance of $(55,254,469) after netting off arrangements[124]. Risks and Contingencies - The Company has significant exposure to foreign exchange fluctuations, with more than half of its revenues generated outside Singapore[138]. - The management currently has a foreign currency hedging policy and monitors foreign exchange exposure for potential hedging actions[135]. - The Company is exposed to interest rate risk primarily related to fixed-rate trading financing and has not used derivative instruments to mitigate this risk[136]. - The Company is subject to global economic and political risks, including market volatility and changes in government policies, which can negatively impact net revenues and cash flows[138]. - As of June 30, 2025, the Company did not have any significant commitments and contingencies that could materially affect its financial condition[139]. Shareholder Information - Net income attributable to shareholders increased from $5,365,616 to $10,024,075, representing an impressive growth of 86.5%[112]. - Basic and diluted net income per share improved from $0.06 to $0.11, reflecting a 83.3% increase[112]. - On August 22, 2025, the Company increased its authorized shares from 100,000,000 to 500,000,000 shares[141]. - The company issued 75,000,000 ordinary shares to acquire HTL Marketing, which closed on May 19, 2025[109].

Core Viewpoint - HomesToLife Ltd reported a significant financial performance improvement in the first half of 2025, with a net income increase of 87% to $10.0 million, driven by strong export sales and favorable foreign exchange gains [2][11]. Financial Performance - The company achieved net revenue of $180.8 million in 1H 2025, a 16% increase from $156.3 million in 1H 2024, primarily due to export sales across Asia-Pacific, Europe, and North America [4][11]. - Gross profit rose 19% to $49.8 million, with a stable gross margin of 27.6% compared to 26.8% in the previous year [7][11]. - Operating expenses increased by 18% year-over-year to $40.8 million, influenced by a 19% rise in selling expenses [8][11]. Revenue Breakdown - Export sales accounted for 93% of total revenue in 1H 2025, with notable growth in Europe and North America, both up by 16% [4][6]. - Newly acquired retail operations in Korea contributed $1.5 million in revenue during the period [5]. Cash Flow and Financial Position - The company maintained a healthy financial position with $20.0 million in cash and bank balances as of June 30, 2025, and borrowings of $23.3 million [11]. - Net cash used in operating activities was $11.2 million, largely due to working capital movements [12]. Future Outlook - HomesToLife anticipates total revenue for FY2025 to range between $340 million and $375 million, reflecting expectations of a stronger second half compared to the first half [14][15]. - The company plans to maintain a robust liquidity position to support strategic growth initiatives while meeting operational and financing obligations [15].

Financial Performance - HomesToLife Ltd reported a net revenue of $5.2 million in Q1 2025, a 405% increase from $1.0 million in Q1 2024, driven by $4.4 million from HTL Far East[2][8] - The net income for Q1 2025 was $125,000, or $0.01 per share, compared to a net loss of $74,000, or $(0.01) per share in Q1 2024, marking a 269% improvement[3][8] - Cash flow from operating activities turned positive at $1.4 million in Q1 2025, compared to a net outflow of $1.5 million in the same period last year[8][19] - For the full year 2025, total revenue is projected to be between $260 million and $290 million, with HTL Marketing expected to contribute between $250 million and $280 million[10][11] Operating Expenses - Operating expenses increased by $394,000, including $336,000 in Nasdaq listing-related costs, leading to total operating expenses of $1.2 million in Q1 2025[4][8] Gross Margin - The overall gross margin decreased to 26% in Q1 2025 from 68% in Q1 2024, primarily due to a lower gross margin of 17% from HTL Far East[3][8] - HomesToLife Ltd's Singapore retail business saw a 19% decline in revenue year-over-year to $840,000, but improved its gross margin to 73% from 68%[2][8] Cash Position - As of March 31, 2025, cash and cash equivalents increased to $3.9 million, up from $3.4 million at December 31, 2024[9][16] Shareholder Information - The weighted average number of shares increased to 14.69 million in Q1 2025 from 13.25 million in Q1 2024, impacting per-share calculations[6][8] Business Expansion - The company is expanding its global footprint with the acquisition of HTL Marketing Pte Ltd, enhancing its B2B capabilities[5][8]

Core Viewpoint - HomesToLife Ltd reported significant growth in Q1 2025, with a 405% increase in net revenue compared to the same period last year, driven by the successful launch of its Asia sales subsidiary, HTL Far East [2][4]. Financial Performance - The company achieved net revenue of $5.2 million in Q1 2025, up from $1.0 million in Q1 2024, with HTL Far East contributing $4.4 million to this growth [2]. - Net income for Q1 2025 was $125,000, a turnaround from a net loss of $74,000 in Q1 2024, resulting in earnings of $0.01 per share compared to a loss of $(0.01) per share in the previous year [3]. - The overall gross margin decreased to 26% in Q1 2025 from 68% in Q1 2024, primarily due to the lower gross margin of 17% from HTL Far East [3]. Operating Expenses - Operating expenses rose by $394,000, influenced by $336,000 in costs related to the Nasdaq listing, which were not present in Q1 2024 [4]. Strategic Developments - The acquisition of HTL Marketing in May 2025 positions the company to expand its global footprint beyond Asia [5]. - The company aims to evolve into a multi-market B2B furniture leader with a strong upstream export and sourcing platform [5]. Outlook - For 2025, HTL Far East is expected to maintain strong revenue momentum, with projected total revenue for the year between $260 million and $290 million [7]. - HTL Marketing is anticipated to contribute between $250 million and $280 million in revenue for the full year [7]. Liquidity Position - As of March 31, 2025, the company maintained a net cash position with no bank borrowings, and cash and cash equivalents increased to $3.9 million from $3.4 million at the end of 2024 [6].

Core Viewpoint - HomesToLife Ltd has successfully acquired 100% equity interests in HTL Marketing Pte Ltd, enhancing its position in the global furniture market and aiming for substantial growth in revenue and profitability [1][2]. Company Overview - HomesToLife Ltd is a holding company for HomesToLife Pte. Ltd., a leading home furniture retailer in Singapore, and HTL Far East Pte. Ltd., which focuses on sourcing and distributing premium furniture across the Asia-Pacific region [2]. - HTL Marketing Pte Ltd specializes in B2B procurement and supply of premium upholstered sofas and leather materials, with sales across Asia-Pacific, Europe, and North America [1][2]. Acquisition Details - The acquisition of HTL Marketing was announced on May 5, 2025, and is expected to provide HomesToLife with extensive global market opportunities [1][2]. - The CEO of HomesToLife expressed optimism about the integration of HTL Marketing's operations and the potential for accelerated growth for the company [2].

Core Viewpoint - HomesToLife Ltd has entered into a definitive sale and purchase agreement to acquire 100% equity interests in HTL Marketing Pte Ltd, aiming to enhance its market presence and profitability through this strategic acquisition [1][5][9] Acquisition Details - The acquisition involves HomesToLife issuing 75,000,000 ordinary shares to New Century, which will be subject to a two-year lock-up [2] - The acquisition is expected to close in the second quarter of 2025, pending customary closing conditions [9] Financial Performance of HTL Marketing - In fiscal year 2024, HTL Marketing achieved sales of US$330 million, with Europe, Asia-Pacific, U.S., and Canada contributing 59%, 28%, 8%, and 5% respectively [3] - HTL Marketing recorded a profit after tax of US$11 million and positive cash flow from operating activities of US$19 million [4] Expected Impact on HomesToLife - The acquisition is projected to significantly increase HomesToLife's revenue from US$4 million in 2024 to between US$250 million and US$280 million in 2025 [5] - For 2026, HTL Marketing is expected to contribute revenue between US$350 million and US$400 million, with a profit after tax ranging from US$15 million to US$20 million [6] Strategic Importance - The acquisition is viewed as a milestone for HomesToLife, enhancing its capabilities to capitalize on growth opportunities and mitigate risks from trade disruptions [7] - The integration of HTL Marketing's operations is anticipated to drive further growth and value creation for HomesToLife's shareholders [7] Related Party Transaction - HTL Marketing is wholly owned by New Century, which is also wholly owned by the co-founders of both HTL Marketing and HomesToLife, indicating a related party transaction [4][8]

Financial Data and Key Metrics Changes - For the fiscal year ended 12/31/2024, the company reported net revenue of $4.17 million, an 18% decrease from $5.07 million in the previous fiscal year [5] - The overall gross profit margin for fiscal 2024 was 65.8%, down from 71.7% in fiscal 2023, primarily due to a shift in sales mix and lower pricing strategies [6][7] - The company experienced a net loss of $1.67 million or $0.11 per share for fiscal 2024, compared to a net income of $0.24 million or $0.02 per share in fiscal 2023 [9] Business Line Data and Key Metrics Changes - The decline in net revenue was mainly attributed to decreased sales of leather and fabric upholstered home furniture products [5] - The new subsidiary, HDL Far East, contributed minor revenue in 2024 but generated over $4 million in the first quarter of 2025, with expectations of $12 to $14 million in revenue for the year [5] Market Data and Key Metrics Changes - The company faced industry-specific challenges, including shifts in consumer spending habits, inflation impacts on discretionary purchases, and intensified market competition affecting its Singapore retail sector [6] Company Strategy and Development Direction - The company is undergoing a restructuring initiative to improve financial performance, which includes closing underperforming stores and revamping merchandise offerings [9] - The launch of the HDL Far East subsidiary aims to expand the furniture business into the Asia Pacific region [4] Management Comments on Operating Environment and Future Outlook - Management acknowledged the impact of global economic factors on financial performance in 2024 but expressed optimism about future growth through the new subsidiary [4][5] - The company expects total revenue for 2025 to be between $16 million and $18 million [5] Other Important Information - Total operating expenses increased by $1.11 million or 32% in fiscal 2024, primarily due to listing expenses and increased general and administrative costs [8] - Cash and cash equivalents at 12/31/2024 were $3.44 million, up from $1.37 million at 12/31/2023 [9] Q&A Session Summary - There were no questions from participants during the Q&A session [11]