HomesToLife Ltd Announces Financial Results for First Six Months of 2024; Company to hold Conference Call to Discuss Results Nov. 26 at 8:30 am ET
SINGAPORE, Nov. 25, 2024 (GLOBE NEWSWIRE) -- HomesToLife Ltd (NASDAQ:HTLM) ("HomesToLife" or the "Company"), one of the leading home furniture products retail chains in Singapore, today announced that, for the first six months of 2024 ended June 30, 2024, the Company had net revenue of $1,993,323, a 21 percent decrease compared to net revenue of $2,527,724 for the first six months of 2023.
The Company's decrease in net revenue was primarily due to a decline in revenue from sales of its leather and fabric upholstered home furniture products compared to such sales in the corresponding six-month period in 2023. This decrease was chiefly the result of rising inflation and the overall slowdown in global economic conditions, both of which negatively impacted Singapore's home furniture market.
For the first half of 2024, the Company's gross profit margin was 66.1 percent as compared to 68.8 percent for the first six months of 2023, a decline primarily attributable to an increase in inward freight costs.
For the first half of 2024, HomesToLife also saw an increase of $138,473, or 8.2 percent, in total operating expenses, compared to the first half of 2023. This increase was primarily the result of a rise in general and administrative expenses of $570,593, mainly consisting of an IPO audit fee of $419,706. The increase in general and administrative expenses was largely offset by a decrease of $432,119 in sales and distribution expenses, mainly due to marketing support from a related party for introducing new designs and products to the market.
The Company had a loss from operations of $508,865 during the first half of 2024, as compared to income from operations of $52,847 for the six months ended June 30, 2023.
Adding other income, which amounted to $56,427 in the first half of 2024 and $22,139 in the first half of 2023, HomesToLife had a net loss of $452,438, or $(0.03) per share, for the first half of 2024, as compared to net income of $74,986, or $0.01 per share, for the same period in 2023.
Cash and cash equivalents at June 30, 2024 was $544,294, as compared to $1,366,956 at December 31, 2023.
Net cash used in operating activities during the first half of 2024 was $899,519, as compared to net cash provided by operating activities of $53,225 for the same period in 2023.
Total long-term liabilities at June 30, 2024 was $2,985,724, as compared to $2,225,228 at December 31, 2023.
Weighted average number of ordinary shares was 13,250,000 at both June 30, 2024 and June 30, 2023.
"We are thrilled to have begun trading on Nasdaq on October 1 of this year," said the Company's Chief Executive Officer, Ms. Phua Mei Ming. "Our performance for the first six months of 2024 reflected the effect of certain global economic factors which had been impacting Singapore's home furniture sector."
"In response, we are working on a number of new initiatives to expand our business into the rest of Asia. As a result, we are hopeful these initiatives will improve top and bottom-line performance on our financials for the second half of this year."
Conference Call Details
The Company will host a conference call to review the financial results on Tuesday, November 26 at 8:30 a.m. ET.
Conference Call Dial-in:
US toll free: 1-877-269-7751
International: 1-201-389-0908
Conference ID: HomesToLife
Please dial five to ten minutes prior to the scheduled time.
For those who would prefer to receive a call rather than dialing in, please register via the following link: Call me. Please use this option 15 minutes prior to the conference call start time.
Conference Replay: A replay of this call will be available on November 26, 2024 at 12 p.m. ET until December 3, at 11:59 p.m. Eastern time.
To access the replay, please dial:
US toll free: 1- 844-512-2921
International: 1-412-317-6671
Access ID: 13750309
About HomesToLife Ltd
The Company's wholly owned subsidiary and operating company, HomesToLife Pte. Ltd., is one of the leading home furniture retailers that offers and sells customized furniture solutions in Singapore. As of October 2024, it has six retail store locations. It has helped homeowners create living spaces that reflect their individuality since 2014. Its product offerings include leather and fabric upholstered furniture, case goods and accessories, and offers a one-stop shop for retail customers to furnish their homes. "HomesToLife" has a long-standing pledge to offer fair prices, great value, consistent and reliable quality, and on-time delivery to its customers. The Company's website, www.homestolife.com, offers consumers a seamless shopping experience online and post-sales customer service support.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Contacts
HomesToLife Ltd Contact:
6 Raffles Boulevard, #02-01/02
Marina Square, Singapore 039594
Email: [email protected]
Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
Office: (646) 893-5835
Email: [email protected]
| HOMESTOLIFE LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of | ||||||||||||
| December 31, 2023 | June 30, 2024 | June 30, 2024 | ||||||||||
| SGD | SGD | USD | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 1,802,469 | 739,423 | 544,294 | |||||||||
| Accounts receivables | 149,602 | 238,375 | 175,469 | |||||||||
| Inventories, net | 889,907 | 1,109,782 | 816,917 | |||||||||
| Amounts due from related parties | 505,716 | - | - | |||||||||
| Amount due from former shareholder | 730,300 | - | - | |||||||||
| Deposit, prepayments and other receivables | 909,738 | 1,319,319 | 971,159 | |||||||||
| Deferred offering cost | - | 1,035,204 | 762,020 | |||||||||
| Income tax recoverable | - | 26,765 | 19,702 | |||||||||
| Total current assets | 4,987,732 | 4,468,868 | 3,289,561 | |||||||||
| Non-current assets: | ||||||||||||
| Plant and equipment, net | 297,587 | 359,509 | 264,637 | |||||||||
| Right-of-use assets, net | 4,100,541 | 5,349,876 | 3,938,076 | |||||||||
| Total non-current assets | 4,398,128 | 5,709,385 | 4,202,713 | |||||||||
| TOTAL ASSETS | 9,385,860 | 10,178,253 | 7,492,274 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 1,310,787 | 471,648 | 347,184 | |||||||||
| Customer deposits | 1,117,364 | 1,168,742 | 860,319 | |||||||||
| Accrued liabilities and other payables | 285,756 | 239,298 | 176,149 | |||||||||
| Lease liabilities | 1,632,192 | 1,835,793 | 1,351,338 | |||||||||
| Amount due to intermediate holding company | - | 922,040 | 678,719 | |||||||||
| Total current liabilities | 4,346,099 | 4,637,521 | 3,413,709 | |||||||||
| Long-term liabilities: | ||||||||||||
| Other payables | 125,083 | 125,083 | 92,074 | |||||||||
| Lease liabilities | 2,809,102 | 3,931,024 | 2,893,650 | |||||||||
| Total long-term liabilities | 2,934,185 | 4,056,107 | 2,985,724 | |||||||||
| TOTAL LIABILITIES | 7,280,284 | 8,693,628 | 6,399,433 | |||||||||
| Commitments and contingencies | - | - | - | |||||||||
| Shareholders' equity: | ||||||||||||
| Ordinary share, US$0.0001 par value, 100,000,000 shares authorized, 13,250,000 shares issued and outstanding as of December 31, 2023 and June 30, 2024* | 1,747 | 1,747 | 1,325 | |||||||||
| Additional paid-in capital | 38,798,253 | 38,798,253 | 28,559,627 | |||||||||
| Accumulated other comprehensive loss | (4,666,758 | ) | (4,673,072 | ) | (3,439,916 | ) | ||||||
| Accumulated losses | (32,027,666 | ) | (32,642,303 | ) | (24,028,195 | ) | ||||||
| Total shareholders' equity | 2,105,576 | 1,484,625 | 1,092,841 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 9,385,860 | 10,178,253 | 7,492,274 | |||||||||
* The shares amounts are presented on a retroactive basis.
| HOMESTOLIFE LTD AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| Six Months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| SGD | SGD | USD | ||||||||||
| Revenues, net: | ||||||||||||
| Revenue from third parties | 3,333,058 | 2,707,929 | 1,993,323 | |||||||||
| Cost of goods sold | (1,038,404 | ) | (918,812 | ) | (676,343 | ) | ||||||
| Gross profit | 2,294,654 | 1,789,117 | 1,316,980 | |||||||||
| Operating expenses: | ||||||||||||
| Sales and distribution expenses | (1,647,032 | ) | (1,109,836 | ) | (816,957 | ) | ||||||
| General and administrative expenses | (577,938 | ) | (1,370,574 | ) | (1,008,888 | ) | ||||||
| Total operating expenses | (2,224,970 | ) | (2,480,410 | ) | (1,825,845 | ) | ||||||
| Income (loss) from operations | 69,684 | (691,293 | ) | (508,865 | ) | |||||||
| Other income: | ||||||||||||
| Government subsidies | 11,604 | 18,504 | 13,621 | |||||||||
| Sundry income | 17,589 | 58,152 | 42,806 | |||||||||
| Total other income, net | 29,193 | 76,656 | 56,427 | |||||||||
| Income (loss) before income taxes | 98,877 | (614,637 | ) | (452,438 | ) | |||||||
| Income tax expense | - | - | - | |||||||||
| NET INCOME (LOSS) | 98,877 | (614,637 | ) | (452,438 | ) | |||||||
| Weighted average number of ordinary shares: | ||||||||||||
| Basic and diluted * | 13,250,000 | 13,250,000 | 13,250,000 | |||||||||
| EARNINGS (LOSS) PER SHARE – BASIC AND DILUTED | 0.01 | (0.05 | ) | (0.03 | ) | |||||||
* The shares amounts are presented on a retroactive basis.
