# EDGAR Filing Document

**Accession Number:** 0002023153
**File Stem:** 0001493152-25-013833
**Filing Date:** 2025-9
**Character Count:** 158822
**Document Hash:** 20da39973aadbe55a73b44c8fa805a99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-013833.hdr.sgml**: 20250917

**ACCESSION NUMBER**: 0001493152-25-013833

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 88

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250917

**DATE AS OF CHANGE**: 20250917

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HomesToLife Ltd
- **CENTRAL INDEX KEY:** 0002023153
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-FURNITURE STORES [5712]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42290
- **FILM NUMBER:** 251318831

**BUSINESS ADDRESS:**
- **STREET 1:** 6 RAFFLES BOULEVARD
- **STREET 2:** #02-01/02, MARINA SQUARE
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 039594
- **BUSINESS PHONE:** 65 9730 3718

**MAIL ADDRESS:**
- **STREET 1:** 6 RAFFLES BOULEVARD
- **STREET 2:** #02-01/02, MARINA SQUARE
- **CITY:** SINGAPORE
- **STATE:** U0
- **ZIP:** 039594

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of September 2025**

**Commission File Number: 001-42290**

**HOMESTOLIFE LTD**

**(Registrant's Name)**

**6 Raffles Boulevard, #02-01/02**

**Marina Square, Singapore 039594**

**(Address of Principal Executive Offices)**

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

**EXPLANATORY NOTE**

HomesToLife Ltd (the "Company") is filing this Report on Form 6-K to report its financial results for the six months ended June 30, 2025 and to discuss its recent corporate developments.

On September 17, 2025, the Company issued a press release announcing its results of operations for the six months ended June 30, 2025 and announcing the time and dial-in number for a conference call to review the financial results for the six months ended June 30, 2025, attached hereto as Exhibits 99.3.

Attached as exhibits to this Report on Form 6-K are:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 unaudited condensed interim consolidated financial statements and related notes as Exhibit
 99.1;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Management's
 Discussion and Analysis of Financial Condition and Results of Operations as Exhibit 99.2;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Press
 release dated September 17, 2025 as Exhibit 99.3;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Interactive
 Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Statements in this current report with respect to the Company's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of the Company. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. The Company cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, including but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. Therefore, investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

**Financial Statements and Exhibits.**

The following exhibits are being filed herewith:

---

| | |
|:---|:---|
| 99.1 | [Unaudited Condensed Consolidated and Combined Financial Statements and Related Notes for the Six Months Ended June 30, 2025 and 2024](ex99-1.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](ex99-2.htm) |
| 99.3 | [Press release dated September 17, 2025](ex99-3.htm) |
| 101.INS | XBRL Instance Document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document. |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **HomesToLife LTD** | **HomesToLife LTD** |
| Date: September 17, 2025 | By: | */s/ Phua Mei Ming*<br>|
|  | Name: | Phua Mei Ming<br>|
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

![](ex99-1_001.jpg)

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**INDEX TO UNAUDITED CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Unaudited Condensed Consolidated and Combined Balance Sheets](#fi_001) | F-3 |
| [Unaudited Condensed Consolidated and Combined Statements of Operations and Comprehensive Income](#fi_002) | F-4 |
| [Unaudited Condensed Consolidated and Combined Statements of Changes in Shareholders' Equity](#fi_003) | F-5 |
| [Unaudited Condensed Consolidated and Combined Statements of Cash Flows](#fi_004) | F-6 |
| [Notes to the Unaudited Condensed Consolidated and Combined Financial Statements](#fi_005) | F-7 to F-27 |

---

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $24860621 | $20071387 |
| Accounts receivables, net (including receivable from related parties of $928,951 and $353,886 as of December 31, 2024 and June 30, 2025, respectively) | 66928602 | 71669261 |
| Inventories, net | 8032089 | 10613295 |
| Amounts due from related parties | 2807854 | 4967733 |
| Deposit, prepayments and other receivables | 5145372 | 7189424 |
| Total current assets | 107774538 | 114511100 |
| Non-current assets: |  |  |
| Property, plant and equipment, net | 3734157 | 4499588 |
| Right-of-use assets, net | 6632749 | 7256728 |
| Deferred tax asset, net | 636581 | 786384 |
| Total non-current assets | 11003487 | 12542700 |
| **TOTAL ASSETS** | $118778025 | $127053800 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $2701283 | $2867425 |
| Accounts payable, related parties | 72724799 | 55254469 |
| Customer deposits | 853626 | 1236916 |
| Accrued liabilities and other payables | 4428806 | 6541572 |
| Short-term borrowings | 15255874 | 23382206 |
| Amounts due to related parties | 292753 | 292753 |
| Lease liabilities | 2100281 | 2320101 |
| Warranty liabilities | 2095842 | 3129470 |
| Derivatives and hedging instruments |  | 753243 |
| Income tax payable | 2467506 | 3546279 |
| Total current liabilities | 102920770 | 99324434 |
| Long-term liabilities: |  |  |
| Provision for reinstatement cost | 262479 | 339756 |
| Lease liabilities | 4883321 | 5285905 |
| Total long-term liabilities | 5145800 | 5625661 |
| **TOTAL LIABILITIES** | 108066570 | 104950095 |
| Commitments and contingencies |  |  |
| Shareholders' equity: |  |  |
| Ordinary share, $0.0001 par value, 100,000,000 shares authorized,89,687,500 and 89,687,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024\* | 8969 | 8969 |
| Additional paid-in capital | 37179424 | 37179424 |
| Accumulated other comprehensive loss | (12686896) | (11318721) |
| Accumulated losses | (13790042) | (3765967) |
| Total shareholders' equity | 10711455 | 22103705 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $118778025 | $127053800 |

---

\* The share amounts are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).

See accompanying notes to the unaudited condensed consolidated and combined financial statements.

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Revenues, net |  |  |
| From third parties | $150461612 | $170117861 |
| From related parties | 5850497 | 10656942 |
|  | 156312109 | 180774803 |
| Cost of goods sold | (114376152) | (130942258) |
| Gross profit | 41935957 | 49832545 |
| Operating expenses: |  |  |
| Sales and distribution expenses | (26226218) | (31092110) |
| General and administrative expenses | (7978231) | (9025931) |
| Listing expenses | (310502) | (666021) |
| Total operating expenses | (34514951) | (40784062) |
| **Income from operations** | 7421006 | 9048483 |
| Other income (expense): |  |  |
| Interest expense | (387263) | (730372) |
| Interest income | 95040 | 16246 |
| Government subsidies | 21232 | 16950 |
| Foreign exchange gain, net | 532909 | 4293633 |
| Net gain from related parties debt restructuring |  | 1460543 |
| Professional fees on acquisition of HTL Marketing |  | (1261560) |
| Scrap sofa sale income | 303452 | 223263 |
| Sundry income | 81816 | 39404 |
| Change in fair value of derivatives and hedging instruments | (1064841) | (753243) |
| Total other (expense) income, net | (417655) | 3304864 |
| **Income before income taxes** | 7003351 | 12353347 |
| Income tax expense | (1637735) | (2329272) |
| **NET INCOME** | $5365616 | $10024075 |
| Other comprehensive income (loss): |  |  |
| – Foreign currency translation adjustments | (1648993) | 1368175 |
| **COMPREHENSIVE INCOME** | $3716623 | $11392250 |
| Weighted average number of ordinary shares: |  |  |
| Basic and diluted \* | 88250000 | 89687500 |
| **EARNINGS PER SHARE – BASIC AND DILUTED** | $0.06 | $0.11 |

---

\* The share amounts and per share data are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).

See accompanying notes to the unaudited condensed consolidated and combined financial statements.

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Ordinary shares | Ordinary shares | | | | |
|  | No. of<br> shares \* | Amount | Additional<br>paid-in<br> capital | Accumulated<br> other<br>comprehensive<br> loss |<br>Accumulated<br> losses | Total<br>shareholders'<br> equity |
| Balance as of December 31, 2023 | 13250000 | 1325 | 33632958 | (11248836) | (7263808) | 15121639 |
| Retroactive application of common control acquisition | 75000000 | 7500 | (7500) | - | (2556410) | (2556410) |
| Adjusted opening balance | 88250000 | 8825 | 33625458 | (11248836) | (9820218) | 12565229 |
| Net income for the period |  |  |  |  | 5365616 | 5365616 |
| Foreign currency translation adjustments | - | - | - | (1648993) | - | (1648993) |
| Balance as of June 30, 2024 | 88250000 | 8825 | 33625458 | (12897829) | (4454602) | 16281852 |
| Balance as of December 31, 2024 | 14687500 | 1469 | 37186924 | (12686896) | (13790042) | 10711455 |
| Retroactive application of common control acquisition | 75000000 | 7500 | (7500) | - | - | - |
| Adjusted opening balance | 89687500 | 8969 | 37179424 | (12686896) | (13790042) | 10711455 |
| Net income for the period |  |  |  |  | 10024075 | 10024075 |
| Foreign currency translation adjustments | - | - | - | 1368175 | - | 1368175 |
| Balance as of June 30, 2025 | 89687500 | 8969 | 37179424 | (11318721) | (3765967) | 22103705 |

---

\* The share amounts are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).

See accompanying notes to the unaudited condensed consolidated and combined financial statements.

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | Six Months ended June 30, | Six Months ended June 30, |
|  | 2024 | 2025 |
| **Cash flows from operating activities:** |  |  |
| Net income | $5365616 | $10024075 |
| Adjustments to reconcile net income to net cash used in operating activities |  |  |
| Depreciation of property, plant and equipment | 95004 | 142739 |
| Amortization of operating right-of-use assets | 890642 | 1118679 |
| Allowance (reversal) for obsolete inventories | 120699 | (164167) |
| Benefit for deferred income taxes | (27357) | (136389) |
| (Written-off) provision for allowance for expected credit losses | (8453) | 4665 |
| Provision for warranty liabilities | 2769218 | 4004614 |
| (Reversal) provision for reinstatement cost | (56503) | 77277 |
| Changes in operating leases | (764938) | (1159429) |
| Change in fair value of derivatives and hedging instruments | 1064841 | 753243 |
| Written-off property, plant and equipment | 13858 |  |
| Change in operating assets and liabilities: |  |  |
| Accounts receivables | (1990471) | (4745325) |
| Inventories | (966774) | (2417038) |
| Deferred offering cost | (763877) |  |
| Deposit, prepayments, and other receivables | (1941737) | (2044057) |
| Accounts payable | (13673912) | (17304187) |
| Customer deposits | 25303 | 383291 |
| Accrued liabilities and other payables | (396701) | 2112765 |
| Warranty liabilities | (2706303) | (2970986) |
| Income tax payable | 1031205 | 1078773 |
| Net cash used in operating activities | (11920640) | (11241457) |
| **Cash flows from investing activities:** |  |  |
| Purchase of property, plant and equipment | (450220) | (557755) |
| Net cash used in investing activities | (450220) | (557755) |
| **Cash flows from financing activities:** |  |  |
| Net proceeds from short-term borrowings | 9036565 | 8126333 |
| Amounts due from related parties | 4579697 | (9226649) |
| Amount due to related parties | (2051283) |  |
| Amount due from related parties - Reorganization and scrapping | (2556410) | 7066770 |
| Net cash provided by financing activities | 9008569 | 5966454 |
| Effect of foreign exchange rates on cash and cash equivalents | (796843) | 1043524 |
| **Net change in cash and cash equivalents** | (4159134) | (4789234) |
| **BEGINNING OF PERIOD** | 22624972 | 24860621 |
| **END OF PERIOD** | $18465838 | $20071387 |
| **SUPPLEMENTAL CASH FLOW INFORMATION:** |  |  |
| Cash paid for income taxes | $604730 | $1398808 |
| Cash paid for interest | $282280 | $570293 |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| Shares issued for common control acquisition | $75000000 | $75000000 |
| Related parties balances under offsetting arrangement upon reorganization | $(493039) | $15337816 |

---

See accompanying notes to the unaudited condensed consolidated and combined financial statements.

**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)**

**NOTE 1** － **BUSINESS OVERVIEW**

HomesToLife Ltd (the "Company", "HTLM" or the "HomesToLife Cayman") was incorporated in the Cayman Islands with limited liability under the Companies Act on February 16, 2024.

The Company, through its subsidiaries, is principally engaged in the sale and distribution of leather upholstered furniture, such as, sofas, armchairs, recliners, and related accessories, with its unique design and craftmanship, throughout a network of retail stores under the brand name of "HomesToLife" in Europe, the North America, and Asia.

On May 5, 2025, the Company entered into a definitive sale and purchase agreement (the "Sale and Purchase Agreement") with New Century International Homes Pte Ltd ("New Century") to acquire 100% of equity interests in HTL Marketing Pte Ltd ("HTL Marketing"). Under the terms of the Sale and Purchase Agreement, in exchange for acquiring HTL Marketing, the Company issued 75,000,000 ordinary shares to New Century, par value US$0.0001 per share (the "Ordinary Shares"), which are subjected to two-year lock-up restrictions. This transaction was closed on May 19, 2025.

On May 5, 2025, HTL Marketing and certain related parties entered into a deed of global settlement involving debt restructuring under the corporate reorganization exercise. During the six months ended June 30, 2025, a net gain of $1.5 million was recorded under other income (expense) in the accompanying unaudited condensed consolidated and combined statements of operations and comprehensive income.

The Company and HTL Marketing were controlled by common shareholders prior to this acquisition. Hence, this acquisition was accounted for as common control acquisition in accordance with ASC 805-50-45-5. Under the guidance, the current corporate structure has been retroactively presented in prior periods as if such structure existed as of the beginning of the first period presented in the accompanying unaudited condensed consolidated and combined financial statements.

Description of subsidiaries incorporated and controlled by the Company, as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| Name |  | Background | Ownership |
| HomesToLife International Pte. Ltd. ("HIPL") | ● | Singaporean company | 100% owned by HTLM |
|  | ● | Incorporated on February 22, 2024 |  |
|  | ● | Issued and outstanding 20,001 ordinary shares for SGD1 and USD20,000 |  |
|  | ● | Investment holding |  |
| HomesToLife Pte. Ltd. ("HTL SG") | ● | Singaporean company | 100% owned by HIPL |
|  | ● | Incorporated on September 28, 1989 |  |
|  | ● | Issued and outstanding 38,800,000 ordinary shares for SGD38,800,000 |  |
|  | ● | Sale and distribution of furniture |  |
| HTL Far East Pte. Ltd. ("HTL FE") | ● | Singaporean company | 100% owned by HIPL |
|  | ● | Incorporated on October 28, 2024 |  |
|  | ● | Issued and outstanding 10,000 ordinary shares for USD10,000 |  |
|  | ● | Wholesale of furniture |  |
| HTL Marketing Pte. Ltd. ("HTL Marketing") | ● | Singaporean company | 100% owned by HTLM |
|  | ● | Incorporated on December 23, 2020 |  |
|  | ● | Issued and outstanding 10,000 ordinary shares for USD10,000 |  |
|  | ● | Wholesale of furniture |  |
| New Century Furniture Pte. Ltd. ("NCFTP") | ● | Singaporean company | 100% owned by HTL Marketing |
|  | ● | Incorporated on October 05, 2020 |  |
|  | ● | Issued and outstanding 1,010,000 ordinary shares for USD1,010,000 |  |
|  | ● | Investment holding |  |
| HTL France SAS ("HTLF") | ● | French company | 100% owned by NCFTP |
|  | ● | Incorporated on October 30, 2014 |  |
|  | ● | Issued and outstanding 298,960 ordinary shares for EUR298,960 |  |
|  | ● | Overseas sale office |  |
| HTL ANZ PTY LTD ("HTLA") | ● | Australian company | 100% owned by NCFTP |
|  | ● | Incorporated on June 20, 2023 |  |
|  | ● | Issued and outstanding 10,000 ordinary shares for AUD 10,000 |  |
|  | ● | Overseas sale office |  |
| HTL Korea Co., Ltd. ("HTLK") | ● | Korean company | 100% owned by NCFTP |
|  | ● | Incorporated on June 07, 2010 |  |
|  | ● | Issued and outstanding 291,080 ordinary shares for KRW1,455,400,000 |  |
|  | ● | Sale and distribution of furniture |  |
| Hwa Tat Lee Japan Co., Ltd.("HTLJ") | ● | Japanese company | 100% owned by NCFTP |
|  | ● | Incorporated on April 03, 1996 |  |
|  | ● | Issued and outstanding 10,000 ordinary shares for JPY90,000,000 |  |
|  | ● | Wholesale of furniture |  |
| Terasoh Co., Ltd. ("TCL") | ● | Japanese company | 100% owned by NCFTP |
|  | ● | Incorporated on July 19, 1973 |  |
|  | ● | Issued and outstanding 160,000 ordinary shares for JPY67,000,000 |  |
|  | ● | Dormant, previously sales and manufacturing of furniture |  |
| HTL Taiwan Holding Pte. Ltd. ("HTLTW") | ● | Singaporean company | 100% owned by NCFTP |
|  | ● | Incorporated on April 02, 2024 |  |
|  | ● | Issued and outstanding 1 ordinary shares for SGD1 |  |
|  | ● | Investment holding |  |
| HTL (UK) Limited ("HTLUK") | ● | British company | 100% owned by NCFTP |
|  | ● | Incorporated on October 05, 2000 |  |
|  | ● | Issued and outstanding 3,050,000 ordinary shares for GBP3,050,000 |  |
|  | ● | Overseas sale office |  |

---

The Company and its subsidiaries are hereinafter referred to as (the "Company").

**NOTE 2 － SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

These accompanying unaudited condensed consolidated and combined financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying unaudited condensed consolidated and combined financial statements and notes.

**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)**

● Basis of Presentation

The accompanying unaudited condensed and combined consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). The interim financial information provided is unaudited, but includes all adjustments which management considers necessary for the fair presentation of the results for these periods. Operating results for the interim period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2025. The information included in this Form 6-K should be read in conjunction with Management's Discussion and Analysis, and the audited financial statements and notes thereto included in the Company's Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on April 10, 2025.

Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications have no impact on net earnings and financial position.

● Principles of Consolidation

The unaudited condensed consolidated and combined financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

● Use of Estimates and Assumptions

The preparation of unaudited condensed consolidated and combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated and combined financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company's unaudited condensed consolidated and combined financial statements include the useful lives of property, plant and equipment, impairment of long-lived assets, allowance for estimated credit losses, provision for obsolete inventories, revenue recognition, retirement plan cost, leases, warranty liabilities, provision for reinstatement cost, income tax provision, deferred taxes and uncertain tax position.

The inputs into the management's judgments and estimates consider the Company's critical and significant accounting estimates. Actual results could differ from these estimates.

● Foreign Currency Transaction and Translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the combined and consolidated statements of operations and comprehensive loss.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying unaudited condensed consolidated and combined financial statements have been expressed in US$. The Company's major operating subsidiaries operating in Singapore maintains its books and record in US$, with the exception of HomesToLife Pte Ltd, which keeps its books in Singapore Dollars ("SGD") being primary currency of the economic environment in which its business is conducted. However, other operating subsidiaries operating in overseas maintains their books and records in respective local currency, Australian Dollars ("AUD "), Euro ("EUR"), Japanese Yen ("JPY"), South Korean Won ("KRW") and British Pound ("GBP"), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with Accounting Standards Codification ("ASC") Topic 830-30, Translation of Financial Statement ("ASC 830"), using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income (loss) within the unaudited condensed consolidated and combined statements of changes in shareholders' equity.

Translation of amounts has been made at the following exchange rates into US$1 for the six months ended June 30, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Period-end SGD:US$1 exchange rate | 1.3552 | 1.2750 |
| Average SGD:US$1 exchange rate | 1.3517 | 1.3198 |
| Period-end AUD:US$1 exchange rate | 0.6676 | 0.6533 |
| Average AUD:US$1 exchange rate | 0.6641 | 0.6346 |
| Period-end EUR:US$1 exchange rate | 1.0711 | 1.1723 |
| Average EUR:US$1 exchange rate | 1.0763 | 1.0975 |
| Period-end JPY:US$1 exchange rate | 160 | 144 |
| Average JPY:US$1 exchange rate | 157 | 147 |
| Period-end KRW:US$1 exchange rate | 1376 | 1337 |
| Average KRW:US$1 exchange rate | 1379 | 1400 |
| Period-end GBP:US$1 exchange rate | 1.2640 | 1.3719 |
| Average GBP:US$1 exchange rate | 1.2716 | 1.3071 |

---

The above currency exchange rates derived from United Overseas Bank Limited as published at the above-mentioned dates.

**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)**

● Cash and Cash Equivalents

Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. They consist of highly liquid investments that are readily convertible to cash and that mature within twelve months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments.

● Accounts Receivables

Accounts receivable due from credit card processors, as the cash proceeds from accounts receivables are received within the next 3 working days, which are recorded at the gross billing amounts, net of the fee charges by credit card processors.

Accounts receivable due from customers and related parties in export sales and leather trading, are generally received under credit terms ranging from 7 to 115 days, which are recorded at their original invoice amounts.

The Company reviews impairment losses for accounts receivable based on assessments of the recoverability of the accounts receivable and individual account analysis, including the current creditworthiness and the past collection history of each credit card processors and current economic industry trends. Impairments arise when there is objective evidence indicating that the balances may not be collectible. The identification of bad and doubtful debts, in particular of a loss event, requires the use of judgment and estimates, which involve the estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on analysis of credit card processors' payment history and ongoing relationship, management makes conclusions about whether any balances outstanding at the end of the period will be deemed non-collectible on an individual basis and on aging analysis basis. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the unaudited condensed consolidated and combined statements of operations and comprehensive income. Delinquent account balances are written off against the allowance for estimated credit losses after management has determined that the likelihood of collection is not probable.

● Inventories

Substantially all of the inventories are finished goods for sales, such as sofas, armchairs, recliners, accessories and other related products, which are stated at the lower of cost or net realizable value.

Cost of inventories is determined using the weighted average method and includes all costs to acquire and other costs to bring the inventories to their present location and condition. The Company takes ownership, risks, and rewards of the products purchased.

Inventories are written down to estimated net realizable value, which could be impacted by certain factors including historical usage, expected demand, anticipated sales price, and other factors. The Company continuously evaluates the recoverability of the Company's inventories, and inventory provisions are recorded in the unaudited condensed consolidated and combined statements of operations and comprehensive income. For the six months ended June 30, 2024 and 2025, the Company made an allowance for obsolete inventories of $120,699 and written back of allowance for obsolete inventories of $164,167.

**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)**

● Property, Plant and Equipment

Freehold land has an unlimited useful life and therefore is not depreciated.

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values (in accordance with local regulatory requirements):

---

| | |
|:---|:---|
|  | Expected useful life |
| Leasehold improvements | Shorter of 3 years or the term of lease |
| Freehold buildings | 26 – 35 years |
| Office equipment | 3-15 years |
| Furniture and fittings | 1-23 years |
| Motor vehicles | 5-6 years |

---

Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

● Impairment of Long-Lived Assets

In accordance with the provisions of ASC Topic 360, *Impairment or Disposal of Long-Lived Assets*, all long-lived assets such as plant and equipment owned and held by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment losses were recognized for the six months ended June 30, 2024 and 2025.

● Revenue Recognition

The Company receives revenue from contracts with customers, which are accounted for in accordance with Accounting Standards Update ("ASU") No. 2014-09, *Revenue from Contracts with Customers (Topic 606)* ("ASC 606").

ASC Topic 606 provided the following overview of how revenue is recognized from the Company's contracts with customers: The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.

Step 4: Allocate the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer service to a customer).

**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)**

The major portion of the Company's income is derived from contracts with customers, and as such, the revenue recognized depicts the transfer of promised goods to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company's revenue recognition policies are in compliance with ASC Topic 606, as follows, by business segments:

*Retail Sales* 

The Company typically enters into a sale contract with its customers at the retail outlets in Singapore and Korea, where the rights of the parties, including payment terms, are identified and sales prices to the customers are fixed with separate sales rebate, discount, or other incentive and right of return exists on sales of merchandise. The Company's performance obligation is to deliver products according to contract specifications. The Company recognizes gross product revenue at a point in time when the control of products or services is transferred to customers.

The retail outlets will invoice the sale of products, and the revenue is recognized upon shipment or when the control of products is transferred to customers, which is the point at which the Company has satisfied its performance obligation. Payments received as deposits for the purchase orders made by the customers are recognized as customer deposits and included in current liabilities on the unaudited condensed consolidated and combined balance sheets. Customer deposits are recognized as revenue when control over the ordered furniture is transferred to and accepted by the customer.

For the franchisee business in Korea, the Company signs franchise agreements with qualified franchisees, which clearly stipulate the scope of authorized product sales, brand usage standards, supply terms, and payment conditions. Under this model, the Company's performance obligation mainly involves providing qualified products to franchisees and offering necessary operational support, such as brand guidance, marketing assistance. Revenue is recognized when the control of products is transferred to franchisees (usually upon delivery and acceptance), as there is no subsequent right of return or price adjustment clause in the standard franchise agreement.

All revenues are reported net of any sales discounts or taxes. Refunds and returns, which are minimal, are recorded as a reduction of revenue.

*Export Sales and Leather Trading*

The Company's export sales revenue and leather trading revenue are principally derived from the sale of products, including upholstered sofas, and sale of leather materials, to corporate customers in overseas. Revenue is recognized at the point in time when the performance obligation has been satisfied and control of the products have been transferred to the customers, which generally occurs when the goods are delivered to the customer and all criteria for acceptance have been satisfied.

Generally, the Company enters into order confirmation with its customers which specify the rights of the parties, including product specifications, shipment term and payment terms and sales prices to the customers are fixed with no separate sales rebate, discount, or other incentive and no right of return exists on sales of merchandise. The performance obligations in a given transaction are determined by the individual order confirmation with revenue recognized at the time that the performance obligations have been satisfied. All revenues are reported net of any sales discounts or taxes. Refunds and returns, which are minimal, are recorded as a reduction of revenue.

*Product Return Policies*

Among these segments, the Company only accepts the return of products that are defective or non-conforming due to defects in manufacturing and/or workmanship.

In accordance with ASC Topic 606, *Revenue Recognition: Principal Agent Considerations*, the Company evaluates the terms in the agreements with its channels and independent contractors to determine whether or not the Company acts as the principal or as an agent in the arrangement with each party respectively. The determination of whether to record the revenue on a gross or net basis depends upon whether the Company has control over the goods prior to transferring it. In general, the Company controls the products as it has the obligation to (i) fulfil the products delivery and (ii) bear any inventory risk as legal owners. In addition, when establishing the selling prices for delivery of resale products, the Company has control to set its selling price to ensure it would generate profit for the products delivery arrangements. The Company believes that all these factors indicate that the Company is acting as a principal in this transaction. As a result, revenue from the sales of products is presented on a gross basis.

For retail business, the Company only accepts the return of products that are defective or non-conforming due to defects in manufacturing and/or workmanship within 3 - 14 days upon the receipt of products by the customers.

For export business, the Company only accepts the return of products that are defective or non-conforming due to defects in manufacturing and/or workmanship within 5 year upon the receipt of products by the customers.

 

*Disaggregation of Revenue*

The Company has disaggregated its net revenue from contracts with customers into categories based on business segments, as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  | Six months ended June 30, | Six months ended June 30, |
| Product sales, by business segments: | Point of recognition | 2024 | 2025 |
| Export sales | At a point in time | $148257093 | $168009212 |
| Retail sales | At a point in time | 2003351 | 3382273 |
| Leather trading | At a point in time | 6051665 | 9383318 |
| Total |  | $156312109 | $180774803 |

---

**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)**

● Cost of Goods Sold

Cost of goods sold primarily consists of purchase costs of merchandizes from the vendors, the shipping and fulfilment costs incurred during the delivery to the customers.

● Segment Reporting

ASC Topic 280, *Segment Reporting* ("ASC 280"), establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company's business segments.

The Company's chief operating decision maker ("CODM") is the Chief Executive Officer, who has determined that it operates in three reportable segments, Retail, Export sales and Leather Trading segments for the periods presented.

The CODM evaluates the performance of each segment based on the regularly reviewed net sales, gross profit and income from operations (excluding intercompany charges) of the segment. The CODM uses net sales, gross profit and income from operations when evaluating each segment during the budget and forecasting processes. The CODM considers actual-to-budget variances for both profit measures when assessing segment performance and making decisions about the allocation of operating and capital resources to each segment. General corporate expenses include expenses incurred and directed by the corporate office that are not allocated to segments.

● Leases

The Company adopts the Financial Accounting Standard Board ("FASB") ASU 2016-02 "Leases (Topic 842)." for all periods presented. This standard requires lessees to recognize lease assets ("right-of-use") and related lease obligations ("lease liabilities") on the balance sheet for leases with terms in excess of twelve months. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities.

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in the unaudited condensed consolidated and combined balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the unaudited condensed consolidated and combined balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized, based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. The Company depreciated the ROU assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the ROU assets or the end of the lease term. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

All of the Company's real estate leases are classified as operating leases. The Company has elected to not separate lease and non-lease component for property leases and account for them as one single lease component.

● Warranty Liabilities

The Company offers a product warranty to its customers for repairs and replacements, generally twelve (12) months to 10 years, from the date of shipment accepted by the customers, in accordance with applicable law or industry standard, which is limited to the original equipment manufacturers' warranties on the defective or non-conforming products. Historically, the Company experienced a low rate of repairs and replacements on product claims. The provision for the expected warranty claims is estimated based on the past experience requested by the customers.

Warranty expense was $2,769,218 and $4,004,614 for the six months ended June 30, 2024 and 2025, respectively.

● Provision for Reinstatement Cost

Provisions for the costs to reinstate leased properties to their original condition, as required by the terms and conditions of the leases, are recognised at the date of inception of the leases at the Company's best estimate of the expenditure that would be required to reinstate the leased properties. Estimates are regularly reviewed and adjusted as appropriate for new circumstances. The provision for reinstatement costs will be expected to be materialised in two to five years in accordance with the lease terms.

During the six months ended June 30, 2024 and 2025, the Company reverse provision for reinstatement cost of $56,503 and made provision for reinstatement cost of $77,277, respectively.

**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)**

● Income Taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, *Income Taxes* ("ASC 740"). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations and comprehensive income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

For the six months ended June 30, 2024 and 2025, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2024 and June 30, 2025, the Company did not have any significant unrecognized uncertain tax positions.

The Company is subject to income tax in both local and foreign jurisdictions. In connection with its business activities, the Company files tax returns that are subject to examination by the applicable tax authorities. As of June 30, 2025, the 2024 tax returns for all of the Company's entities (other than HTL Marketing, HTL SG, and HTL UK) have been filed but remain open for statutory examination by local and foreign tax authorities. The deadline for submitting the 2024 tax returns for HTL Marketing and HTL SG is on November 30, 2025, and HTL UK is on December 31, 2025.

● Net Income Per Share

The Company computes earnings per share ("EPS") in accordance with ASC Topic 260, *Earnings per Share ("ASC 260")*. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g. convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

● Related Parties

The Company follows the ASC Topic 850-10, *Related Party* ("ASC 850") for the identification of related parties and disclosure of related party transactions.

Pursuant to ASC 850, the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of ASC Topic 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The unaudited condensed consolidated and combined financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of unaudited condensed consolidated and combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which statements of operations are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which statements of operations are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

**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)**

● Commitments and Contingencies

The Company follows the ASC Topic 450-20, *Commitments* to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

● Fair Value Measurement

The Company follows the guidance of the ASC Topic 820-10, *Fair Value Measurements and Disclosures* ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

● *Level 1*: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

● *Level 2:* Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments
 in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant
 inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets
 or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using
 market-based observable inputs; and

● *Level 3*: Inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants
 would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option
 pricing models and discounted cash flow models.

The carrying value of the Company's financial instruments: cash and cash equivalents, accounts receivable, accounts receivable, related parties, amounts due from related parties, deposit, prepayments and other receivables, accounts payable, accounts payable, related parties, accrued liabilities and other payables, and amounts due to related parties approximate at their fair values because of the short-term nature of these financial instruments.

● Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280)" ("ASU 2023-07"). The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision useful financial analyses. Topic 280 requires a public entity to report a measure of segment profit or loss that the CODM uses to assess segment performance and make decisions about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. The amendments in ASU 2023-07 do not change or remove those disclosure requirements. The amendments in ASU 2023-07 also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in ASU 2023-07 are effective for years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, adopted retrospectively. The Company adopted this standard effective January 1, 2025 retrospectively for all periods presented.

Recently issued accounting pronouncements not yet adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires that an entity disclose, in the notes to consolidated financial statements, specified information about certain costs and expenses. The amendment in the ASU is intended to enhance the transparency and decision usefulness to better understand the major components of an entity's income statement. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of the new standards on its consolidated and combined financial statements which is expected to result in enhanced disclosures.

**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)**

Except for the above-mentioned pronouncements, there are no new recently issued accounting standards that will have a material impact on the unaudited condensed consolidated and combined balance sheets, statements of operations and cash flows.

**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:

SCHEDULE OF SEGMENTAL OPERATING RESULTS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 |
|  | Retail Sales | Export Sales | Leather Trading | Corporate and unallocated | Total |
| Revenues, net |  |  |  |  |  |
| From third party | $2003351 | $147484078 | $974183 | $- | $150461612 |
| From related parties | - | 773015 | 5077482 | - | 5850497 |
| Revenues | 2003351 | 148257093 | 6051665 |  | 156312109 |
| Cost of goods sold | (776807) | (107820138) | (5779207) | - | (114376152) |
| Gross profit | 1226544 | 40436955 | 272458 |  | 41935957 |
| Operating expenses: |  |  |  |  |  |
| Sales and distribution | (1362959) | (24754901) | (108358) |  | (26226218) |
| General and administrative | (616212) | (7262510) | (3553) | (95956) | (7978231) |
| Listing expenses | - | - | - | (310502) | (310502) |
| Total operating expenses | (1979171) | (32017411) | (111911) | (406458) | (34514951) |
| Operating (loss) profit | (752627) | 8419544 | 160547 | (406458) | 7421006 |
| Other income (expenses): |  |  |  |  |  |
| Interest expense | (93345) | (143112) | (150806) |  | (387263) |
| Interest income |  | 94861 | 179 |  | 95040 |
| Government subsidies | 13689 | 7543 |  |  | 21232 |
| Foreign exchange gain (loss), net | (523) | 532768 | 2176 | (1512) | 532909 |
| Scrap sofa sale income |  | 303452 |  |  | 303452 |
| Sundry income | 27144 | 54669 | 3 |  | 81816 |
| Change in fair value of derivatives and hedging instruments | - | (1064841) | - | - | (1064841) |
| Total other expense, net | (53035) | (214660) | (148448) | (1512) | (417655) |
| Income (loss) before income expense | (805662) | 8204884 | 12099 | (407970) | 7003351 |
| Income tax expense | - | (1635679) | (2056) | - | (1637735) |
| Segment income (loss) | $(805662) | $6569205 | $10043 | $(407970) | $5365616 |

---

**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)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 |
|  | Retail Sales | Export Sales | Leather Trading | Corporate and unallocated | Total |
| Revenues, net |  |  |  |  |  |
| From third party | $3382273 | $166459189 | $276399 | $- | $170117861 |
| From related parties | - | 1550023 | 9106919 | - | 10656942 |
| Total Revenues | 3382273 | 168009212 | 9383318 |  | 180774803 |
| Cost of goods sold | (1401494) | (120526294) | (9014470) | - | (130942258) |
| Gross profit | 1980779 | 47482918 | 368848 |  | 49832545 |
| Operating expenses: |  |  |  |  |  |
| Sales and distribution | (2404689) | (28634760) | (52661) |  | (31092110) |
| General and administrative | (906968) | (8099908) | (3025) | (16030) | (9025931) |
| Listing expenses | - | - | - | (666021) | (666021) |
| Total operating expenses | (3311657) | (36734668) | (55686) | (682051) | (40784062) |
| Operating profit (loss) | (1330878) | 10748250 | 313162 | (682051) | 9048483 |
| Other income (expenses): |  |  |  |  |  |
| Interest expense | (125183) | (394423) | (210766) |  | (730372) |
| Interest income | 130 | 15946 | 170 |  | 16246 |
| Government subsidies | 12238 | 4712 |  |  | 16950 |
| Foreign exchange gain (loss), net | (9647) | 4292067 | 6215 | 4998 | 4293633 |
| Net gain from related parties debt restructuring |  |  |  | 1460543 | 1460543 |
| Professional fees on acquisition of HTL Marketing |  | (133960) |  | (1127600) | (1261560) |
| Scrap sofa sale income |  | 223263 |  |  | 223263 |
| Sundry income (expense) | 78284 | 21551 | 7 | (60438) | 39404 |
| Change in fair value of derivatives and hedging instruments | - | (753243) | - | - | (753243) |
| Total other income (expenses), net | (44178) | 3275913 | (204374) | 277503 | 3304864 |
| Income (loss) before income expense | (1375056) | 14024163 | 108788 | (404548) | 12353347 |
| Income tax expense | - | (2310779) | (18493) | - | (2329272) |
| Segment income (loss) | $(1375056) | $11713384 | $90295 | $(404548) | $10024075 |

---

By geographic regions:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 |
|  | Retail Sales | Export Sales | Leather Trading | Total |
| Asia Pacific | $2003351 | $34805411 | $6051665 | $42860427 |
| Europe |  | 94433035 |  | 94433035 |
| North America | - | 19018647 | - | 19018647 |
| Total | $2003351 | $148257093 | $6051665 | $156312109 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 |
|  | Retail Sales | Export Sales | Leather Trading | Total |
| Asia Pacific | $3382273 | $35917394 | $9383318 | $48682985 |
| Europe |  | 109989204 |  | 109989204 |
| North America | - | 22102614 | - | 22102614 |
| Total | $3382273 | $168009212 | $9383318 | $180774803 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 |
|  | Retail Sales | Export Sales | Leather Trading | Total |
| Property, plant and equipment, net | 220603 | 3512311 | 1243 | 3734157 |
| Right-of-use assets, net | 5064993 | 1567756 | - | 6632749 |
| Identifiable long-lived assets | 5285596 | 5080067 | 1243 | 10366906 |

---

**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)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 |
|  | Retail Sales | Export Sales | Leather Trading | Total |
| Property, plant and equipment, net | 708669 | 3790236 | 683 | 4499588 |
| Right-of-use assets, net | 5774589 | 1482139 | - | 7256728 |
| Identifiable long-lived assets | 6483258 | 5272375 | 683 | 11756316 |

---

**NOTE 4 －ACCOUNTS RECEIVABLES, NET**

Accounts receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Accounts receivable | $66058775 | $71379164 |
| Accounts receivable, related parties | 928951 | 353886 |
| Accounts receivable, gross | 66987726 | 71733050 |
| Less: allowance of expected credit loss | (59124) | (63789) |
| Accounts receivable, net | $66928602 | $71669261 |

---

The following table presents the activities in the allowance for expected credit losses:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Balance at beginning of year/period | $128312 | $59124 |
| Allowance for expected credit losses | 3007 | 4665 |
| Written-off allowance during the year/period | (71667) |  |
| Foreign translation adjustment | (528) | - |
| Balance at end of year/period | $59124 | $63789 |

---

The Company generally conducts its business with creditworthy third parties in export sales and leather trading, by offering the credit terms ranging from 7 to 115 days. The Company determines, on a continuing basis, the probable losses and an allowance of expected credit loss, based on several factors including internal risk ratings, customer credit quality, payment history, historical bad debt/write-off experience and forecasted economic and market conditions. Accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. In addition, receivable balances are monitored on an ongoing basis and its exposure to bad debts is not significant.

For the six months ended June 30, 2024 and 2025, the Company (written off) and made provision for allowance for expected credit loss of $(8,453) and $4,665 on accounts receivable, respectively.

**NOTE 5** － **INVENTORIES, NET** 

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Inventories kept at warehouse | $1736280 | $1898436 |
| Inventories at showroom | 484236 | 532455 |
| Inventory, gross | 2220516 | 2430891 |
| Less: allowance for obsolete inventories | (973838) | (809670) |
| Goods in transit | 6785411 | 8992074 |
| Total | $8032089 | $10613295 |

---

For the six months ended June 30, 2024 and 2025, the Company made an allowance and (reversal) for obsolete inventories of $120,699 and $(164,167), respectively.

**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)**

**NOTE 6 － PROPERTY, PLANT AND EQUIPMENT, NET**

Property, plant and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| At cost: |  |  |
| Leasehold improvements | $1024258 | $1199036 |
| Freehold land and buildings | 5443175 | 6303000 |
| Office equipment | 207862 | 227098 |
| Furniture and fixtures | 674198 | 849067 |
| Motor vehicles | 74473 | 81202 |
|  | 7423966 | 8659403 |
| Less: accumulated depreciation | (3689809) | (4159815) |
| Property, plant and equipment, net | $3734157 | $4499588 |

---

Depreciation expense for the six months ended June 30, 2024 and 2025 were $95,004 and $142,739, respectively.

**NOTE 7** － **SHORT-TERM BORROWINGS**

Short-term borrowings comprised of the followings:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Bank borrowings, secured |  |  |
| - Trade financing loans | $7722899 | $8748618 |
| - Short-term loans | 7532975 | 14633588 |
| Short term debt total | $15255874 | $23382206 |

---

HTL Marketing obtained the trade financing revolving and factoring facilities among various financial institutions in Singapore, in the aggregate principal amount of up to $33 million, which bear annual interest at the effective average rates of 6.2% with maturity of 90 days to 180 days. The purpose of these banking facilities is to support the furniture export and leather trading operations of HTL Marketing.

These banking facilities are secured by an irrevocable corporate guarantee provided by one of the Company's major shareholders, Golden Hill Capital Pte. Ltd. with a maximum aggregate amount of $50 million and certain assignments of accounts receivable. The corporate guarantee expires six months after the full repayment of all loans (see Note 13).

**NOTE 8** － **LEASES**

Operating lease right-of-use ("ROU") assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Generally, the implicit rate of interest ("discount rate") in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company's incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

The Company has entered into commercial operating leases with various third parties for the use of offices, retail stores and warehouse in various countries. These leases have original terms exceeding 1 year, but not more than 10 years. These operating leases are included in "Right-of-use Assets" on the balance sheet and represent the Company's right to use the underlying assets during the lease term. The Company's obligation to make lease payments are included in "Lease liabilities" on the balance sheet.

Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Operating lease: |  |  |
| Right-of-use assets, net | $6632749 | $7256728 |
| Lease liabilities: |  |  |
| Current | $2100281 | $2320101 |
| Non-current | 4883321 | 5285905 |
| Total lease liabilities | $6983602 | $7606006 |

---

**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)**

Operating lease expense for the six months ended June 30, 2024 and 2025 was $995,626 and $1,278,757, respectively.

Other supplemental information about the Company's operating leases:

---

| | | |
|:---|:---|:---|
|  | December 31, 2024 | June 30, 2025 |
| Weighted average discount rate | 2.15-7.59% | 2.37-7.59% |
| Weighted average remaining lease term (years) | 0.09-10 years | 0.58-9.5 years |

---

Operating lease commitments:

The following table summarizes the future minimum lease payments due under the Company's operating leases in the next five years and thereafter, as of June 30, 2025:

---

| | |
|:---|:---|
| Year ending December 31, | Amounts |
| 2025 (six months) | $1335835 |
| 2026 | 2109812 |
| 2027 | 1610386 |
| 2028 | 755752 |
| 2029 | 638909 |
| Thereafter | 1932782 |
| Total minimum lease payments | 8383476 |
| Less: imputed interest | (777470) |
| Future minimum lease payments | $7606006 |

---

**NOTE 9 －DERIVATIVES AND HEDGING INSTRUMENTS**

The Company enters into foreign currency derivative contracts to economically hedge the exposure to foreign currency fluctuations associated with the forecasted sale and purchase of inventories, the foreign exchange risk associated with certain receivables denominated in foreign currencies and certain future commitments for foreign expenditures.

Contracts to buy or sell a non-financial item that can be settled net in cash are accounted for as financial instruments, with the exception of those contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the Company's expected purchase, sale or usage requirements.

Certain derivative contracts qualify and are designated either: as a fair value hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment; or as a cash flow hedge for the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction; or as a net investment hedge of the change in foreign exchange rates associated with net investments in foreign operations with a different functional currency than the Company's functional currency.

A change in the fair value of a hedging instrument designated as a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); a net investment hedge is accounted for similarly to a cash flow hedge. Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised in other comprehensive income while any gains or losses relating to the ineffective portion are recognised in the consolidated statement of operations and comprehensive income. On disposal of the foreign operation, the cumulative value of any such gains or losses recorded in other comprehensive income is reclassified to the consolidated and combined statement of operations and comprehensive income.

The effective portion of a change due to retranslation at month-end exchange rates in the carrying amount of debt and the principal amount of derivative contracts used to hedge net investments in foreign operations is recognised in other comprehensive income until the related investment is sold or liquidated; any ineffective portion is recognized in income.

All relationships between hedging instruments and hedged items are documented, as well as risk management objectives and strategies for undertaking hedge transactions. The effectiveness of hedges is also continually assessed and hedge accounting is discontinued when there is a change in the risk management strategy.

All the foreign currency derivative contracts are not designated as hedging instruments and the changes in fair value are taken to change in fair value of derivatives and hedging instruments in the unaudited condensed consolidated and combined statements of operations and comprehensive income.

Derivatives that are held primarily for the purpose of trading are presented as current in the consolidated balance sheet.

The foreign currency forward contracts are recorded at fair value of nil and $753,243 in the unaudited condensed consolidated and combined balance sheet as of December 31, 2024 and June 30, 2025, respectively. The Company recognized the change in fair value of derivatives and hedging instruments of $(1,064,841) and $(753,243) during the six months ended June 30, 2024 and 2025, respectively.

**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)**

**NOTE 10** － **SHAREHOLDERS' EQUITY**

*<u>Ordinary Shares</u>*

The Company was established under the laws of Cayman Islands on February 16, 2024 with the authorized share of 100,000,000 Ordinary Shares.

The Company is authorized to issue one class of ordinary share.

On May 5, 2025, the Company entered into the Sale and Purchase Agreement with New Century to acquire 100% of equity interests in HTL Marketing. Under the terms of the Sale and Purchase Agreement, in exchange for acquiring HTL Marketing, the Company issued 75,000,000 Ordinary Shares to New Century, which are subject to two-year lock-up restrictions. This transaction was closed on May 19, 2025.

The Company and HTL Marketing are controlled by common shareholders prior to this acquisition. Hence, this acquisition was accounted for as common control acquisition in accordance with ASC 805-50-45-5. Under the guidance, the current corporate structure has been retroactively presented in prior periods as if such structure existed as of the beginning of the first period presented in the accompanying unaudited condensed consolidated and combined financial statements.

As of June 30, 2025 and December 31, 2024, 89,687,500 Ordinary Shares are issued and outstanding.

**NOTE 11** － **NET INCOME PER SHARE**

**** 

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Numerator: |  |  |
| Net income attributable to the Company's shareholders | $5365616 | $10024075 |
| Denominator: |  |  |
| Weighted average ordinary shares outstanding - Basic and diluted\* | 88250000 | 89687500 |
| Net income per share |  |  |
| Basic and diluted | $0.06 | $0.11 |

---

\* The share amounts and per share data are presented on a retroactive basis, after giving the effect from the completion of common control acquisition (see Note 1).

**NOTE 12 INCOME TAX EXPENSE**

The provision for income tax expense consisted of the following:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Current income tax | $1665092 | $2465661 |
| Deferred income tax benefit | (27357) | (136389) |
| Income tax expense | $1637735 | $2329272 |

---

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company is subject to taxes in the jurisdictions in which it operates, as follows:

*Cayman Islands*

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

**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)**

The summary of sales tax (including VAT and GST) and effective income tax rate by the governing countries are as follows:-

---

| | | | | |
|:---|:---|:---|:---|:---|
| Jurisdiction | VAT or Sales tax Rate | VAT or Sales tax Rate | Income Tax Rate | Income Tax Rate |
|  | 2024 | 2025 | 2024 | 2025 |
| France | 20% | 20% | 25% | 25% |
| Australia | 10% | 10% | 30% | 30% |
| South Korea | 10% | 10% | 10% | 10% |
| Japan | 10% | 10% | 32.1%-33.6 | 32.1%-33.6 |
| United Kingdom | 20% | 20% | 25% | 25% |
| Singapore | 9% | 9% | 17% | 17% |

---

The reconciliation of income tax rate to the effective income tax rate based on income (loss) before income tax expense for the six months ended June 30, 2024 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Income before income taxes | $7003351 | $12353347 |
| Effective income tax rate | 17% | 17% |
| Income tax expense at statutory rate | 1190569 | 2100068 |
| Effect of different tax rates in other countries | 60444 | 7223 |
| Income not subject to tax deduction |  | (273615) |
| Expenses not subject to tax deduction | 343293 | 2150 |
| Net operating losses | 42269 | 468263 |
| Other tax adjustments | 1160 | 25183 |
| Income tax expense | 1637735 | 2329272 |

---

As of June 30, 2025, the operation in the Singapore incurred $6,651,943 (equivalent to SGD8,888,992) of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating losses carry forward have no expiration under Singapore tax regime.

Uncertain tax positions

The Company evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2025, the Company did not have any significant unrecognized uncertain tax positions. 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 and did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from June 30, 2025.

The Company remains subject to examination by local authorities on its local tax returns for the tax periods 2024.

**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)**

**NOTE 13** － **RELATED PARTY BALANCES AND TRANSACTIONS**

Nature of relationships with related parties are summarized, as follows:

---

| | |
|:---|:---|
| 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 |

---

Related party balances consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  |  | As of | As of |
| Name | Nature | December 31, 2024 | June 30, 2025 |
| Gruppo 8 S.R.L. | Accounts receivable – related parties (a) | $26025 | $72830 |
| Corium Italia S.R.L. | Accounts receivable – related parties (a) | 287910 | 281056 |
| Trends Leather (Yangzhou) Co., Ltd. | Accounts receivable – related parties (a) | 615016 | - |
|  |  | $928951 | $353886 |
| HTL Global Pte. Ltd. | Amount due from related party (b) | $996316 | $3395916 |
| New Century International Homes Pte. Ltd. | Amount due from related party (b) | 1811538 | 1571817 |
|  |  | $2807854 | $4967733 |
| HTL Furniture (China) Co., Ltd. | Accounts payable – related parties (c) | $10998808 | $8810225 |
| HTL Furniture (Changshu) Co., Ltd. | Accounts payable – related parties (c) | 32467504 | 19438331 |
| HTL Sofa (Kunshan) Co., Ltd. | Accounts payable – related parties (c) | 18118921 | 15783278 |
| HTL Furniture (Huaian) Co., Ltd. | Accounts payable – related parties (c) | 9031916 | 5061620 |
| HTL Import/Export Trading (Kunshan) Co., Ltd. | Accounts payable – related parties (c) | 22885 | 254303 |
| HTL Furniture Vietnam Company Limited. | Accounts payable – related parties (c) | 1398608 | 5165713 |
| HTL Furniture (Yangzhou) Co., Ltd. | Accounts payable – related parties (c) |  | 45380 |
| HTL Product Design (Kunshan) Co., Ltd. | Accounts payable – related parties (c) | 659510 | 687620 |
| HTL Middle East Furniture LLC | Accounts payable – related parties (c) | 26647 | 7999 |
|  |  | $72724799 | $55254469 |
| HTL Global Pte. Ltd. | Amount due to related party (d) | $292753 | $292753 |

---

(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, non-interesting bearing
 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 to the
 Company in the normal course of business, which are unsecured, non-interesting bearing and
 payable on demand.

(d) These
 balances represented non-trade temporary advances, which are unsecured, interest-free and
 has no fixed terms of repayment.

**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)**

On May 5, 2025, HTL Marketing and certain related parties entered a deed of global settlement involving debt restructuring under the corporate reorganization exercise. The effect of netting arrangements on its financial position for recognized assets and liabilities as of December 31, 2024 and June 30, 2025 are as follows:

SCHEDULE OF GROSS AND NET INFORMATION ABOUT THE ASSETS AND LIABILITIES

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 |
|  | Gross | Gross | Impact from offsetting arrangement | Impact from offsetting arrangement | Impact from offsetting arrangement | |
|  | Accounts<br> receivable | Accounts<br> payable | Written-off | Debt<br> extinguishment | Netting-off |<br>Net balance |
|  | US$ | US$ | US$ | US$ | US$ | US$ |
| **Trading:** |  |  |  |  |  |  |
| Trends Leather (Yangzhou) Co., Ltd. | 3943267 |  | (3328251) |  |  | 615016 |
| H.T.L. Furniture, Inc. | 816417 |  | (816417) |  |  |  |
| New Century Trading (India) Private Limited | 1595156 | (106606) | (1488550) |  |  |  |
| Gruppo 8 S.R.L. | 5510429 | (288557) | (5195847) |  |  | 26025 |
| Corium Italia S.R.L. | 287910 | - | - | - | - | 287910 |
| **Accounts receivable - related parties** | 12153179 | (395163) | (10829065) | - | - | 928951 |
| New Century Sofa India Private Limited |  | (83709) |  | 83709 |  |  |
| HTL Furniture (China) Co., Ltd. |  | (67614759) |  |  | 56615951 | (10998808) |
| HTL Furniture (Changshu) Co., Ltd. |  | (49265863) |  |  | 16798359 | (32467504) |
| HTL Sofa (Kunshan) Co., Ltd. |  | (18118921) |  |  |  | (18118921) |
| HTL Furniture (Huaian) Co., Ltd. |  | (9031916) |  |  |  | (9031916) |
| HTL Import/Export Trading (Kunshan) Co., Ltd. |  | (22885) |  |  |  | (22885) |
| HTL Furniture Vietnam Company Limited. |  | (1398608) |  |  |  | (1398608) |
| HTL Product Design (Kunshan) Co., Ltd. |  | (659510) |  |  |  | (659510) |
| HTL Middle East Furniture LLC | - | (26647) | - | - | - | (26647) |
| **Accounts payable – related parties** | - | (146222818) | - | 83709 | 73414310 | (72724799) |
| **<u>Non-trading:</u>** |  |  |  |  |  |  |
| HTL Manufacturing Pte Ltd | 265866 |  | (265866) |  |  |  |
| H.T.L. Furniture, Inc. | 976175 |  | (976175) |  |  |  |
| HTL Capital Pte. Ltd. | 4746889 |  | (4746889) |  |  |  |
| New Century Overseas Investments Pte. Ltd. | 3044213 |  | (3044213) |  |  |  |
| New Century Home Pte. Ltd. | 720700 |  | (720700) |  |  |  |
| HTL Global Pte. Ltd. | 996316 |  |  |  |  | 996316 |
| Golden Hill Capital Pte. Ltd. | 56615951 |  |  |  | (56615951) |  |
| New Century International Homes Pte. Ltd. | 18609897 | - | - | - | (16798359) | 1811538 |
| **Amounts due from related parties** | 85976007 | - | (9753843) | - | (73414310) | 2807854 |
| Gruppo 8 S.R.L. |  | (288557) | 288557 |  |  |  |
| New Century Trading (India) Private Limited |  | (106606) | 106606 |  |  |  |
| New Century Sofa India Private Limited |  | (83709) | 83709 |  |  |  |
| HTL Global Pte. Ltd. | - | (292753) | - | - | - | (292753) |
| **<u>Amounts due to related parties</u>** | - | (771625) | 478872 | - | - | (292753) |

---

**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)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 | As of June 30, 2025 |
|  | Gross | Gross | Impact from offsetting arrangement | Impact from offsetting arrangement | Impact from offsetting arrangement | |
|  | Accounts<br> receivable | Accounts<br> payable | Written-off | Debt<br> extinguishment | Netting-off |<br>Net balance |
|  | US$ | US$ | US$ | US$ | US$ | US$ |
| **Trading:** |  |  |  |  |  |  |
| Trends Leather (Yangzhou) Co. Ltd. | 717290 | (543) | (716747) |  |  |  |
| H.T.L. Furniture, Inc. | 1910579 | (1312995) | (597584) |  |  |  |
| New Century Trading (India) Private Limited | 2200345 | (57013) | (2143332) |  |  |  |
| Gruppo 8 S.R.L. | 826532 | (752214) | (1488) |  |  | 72830 |
| Corium Italia S.R.L. | 326171 | (45115) | - | - | - | 281056 |
| **Accounts receivable - related parties** | 5980917 | (2167880) | (3459151) | - | - | 353886 |
| New Century Sofa India Private Limited |  | (379948) |  | 379948 |  |  |
| HTL Furniture (China) Co., Ltd. |  | (61004668) |  |  | 52194443 | (8810225) |
| HTL Furniture (Changshu) Co., Ltd. |  | (41960720) |  |  | 22522389 | (19438331) |
| HTL Furniture (Kunshan) Co., Ltd. |  | (15783278) |  |  |  | (15783278) |
| HTL Furniture (Huai An) Co., Ltd. |  | (5061620) |  |  |  | (5061620) |
| HTL Import/Export Trading (Kunshan) Co., Ltd. |  | (254303) |  |  |  | (254303) |
| HTL Furniture Vietnam Company Limited. |  | (5165713) |  |  |  | (5165713) |
| HTL Product Design (Kunshan) Co., Ltd. |  | (687620) |  |  |  | (687620) |
| HTL Middle East Furniture LLC |  | (7999) |  |  |  | (7999) |
| HTL Furniture (Yangzhou) Co., Ltd. | - | (45380) | - | - | - | (45380) |
| **Accounts payable – related parties** | - | (130351249) | - | 379948 | 74716832 | (55254469) |
| **<u>Non-trading:</u>** |  |  |  |  |  |  |
| H.T.L Furniture, Inc. | 1000000 |  | (1000000) |  |  |  |
| HTL Capital Pte. Ltd. | 4746889 |  | (4746889) |  |  |  |
| New Century Overseas Investments Pte. Ltd. | 3044213 |  | (3044213) |  |  |  |
| New Century Home Pte. Ltd. | 720700 |  | (720700) |  |  |  |
| HTL Global Pte. Ltd. | 3395916 |  |  |  |  | 3395916 |
| Gruppo 8 S.R.L | 6447650 |  | (6447650) |  |  |  |
| Golden Hill Capital Pte. Ltd. | 57477113 |  |  |  | (57477113) |  |
| New Century International Homes Pte. Ltd. | 18811538 | - | - | - | (17239721) | 1571817 |
| <br>**Amounts due from related parties** | 95644019 | - | (15959452) | - | (74716834) | 4967733 |
| HTL Global Pte. Ltd. | - | (292753) | - | - | - | (292753) |
| **<u>Amounts due to related parties</u>** | - | (292753) | - | - | - | (292753) |

---

In the ordinary course of business, during the six months ended June 30, 2024 and 2025, the Company has involved with transactions, either at cost or current market prices and on the normal commercial terms among related parties. The following table provides the transactions with these parties for the periods as presented (for the portion of such period that they were considered related):

**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)** 

---

| | | | |
|:---|:---|:---|:---|
| | | Six months ended June 30, | Six months ended June 30, |
| Name of related parties | Nature | 2024 | 2025 |
| H.T.L. Furniture, Inc. | Sale of Sofa | $121714 | $58521 |
| New Century Trading (India) Private Limited | Sale of Sofa | 651301 | 1491502 |
| Trends Leather (Yangzhou) Co., Ltd. | Sale of leather materials | $5077482 | $9106919 |
| Gruppo 8 S.R.L. | Purchase of goods | 9833 | 585175 |
| HTL Furniture (Huaian) Co., Ltd. | Purchase of goods | 4773169 | 5056779 |
| HTL Furniture (Changshu) Co., Ltd. | Purchase of goods | 34679920 | 40378968 |
| HTL Furniture (China) Co., Ltd. | Purchase of goods | 50628327 | 51541144 |
| HTL Furniture (Kunshan) Co., Ltd. | Purchase of goods | 15305317 | 13726028 |
| HTL Furniture Vietnam Company Limited. | Purchase of goods | 85793 | 6922039 |
| HTL Import/Export Trading (Kunshan) Co. Ltd. | Purchase of goods | 36056 | 281230 |
| New Century Sofa India Private Limited | Purchase of goods | 2898335 | 4813224 |
| Corium Italia S.R.L. | Commission income | $100236 | $- |
| Gruppo 8 S.R.L. | Commission income |  | 40590 |
| HTL Global Pte. Ltd. | Commission income | - | 14344 |
| H.T.L. Furniture, Inc. | Commission expense | $939512 | $1076116 |
| New Century Trading (India) Private Limited | Commission expense | 55217 | 119364 |
| H.T.L. Furniture Inc. | Service fee | 240357 | 350844 |
| HTL Product Design (Kunshan) Co., Ltd. | Professional fee | $2666610 | $2576325 |
| HTL Import/Export Trading (Kunshan) Co., Ltd. | Professional fee | $- | $139249 |
| HTL Furniture (Yangzhou) Co., Ltd. | Professional fee | $- | $93604 |
| H.T.L. Furniture, Inc. | Showroom rental expense | $100000 | $100000 |
| New Century International Homes Pte. Ltd. | Office rental income | $- | $2283 |
| Trends Leather (Yangzhou) Co., Ltd. | Purchase of sample leather | $1182 | $543 |
| H.T.L. Furniture, Inc. | Exhibition fee | $171639 | $- |
| New Century Trading (India) Private Limited | Recharge of costs | $677118 | $- |
| HTL Middle East Furniture LLC | Recharge of costs | $- | $47992 |
| HTL Global Pte. Ltd. | Recharge of costs | $- | $4567 |
| HTL Global Pte. Ltd. | Management fees | $- | $2489 |

---

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

**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)**

**Corporate guarantee from GHC** 

As of December 31, 2024 and June 30, 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).

**NOTE 14** － **CONCENTRATIONS OF RISKS**

The Company is exposed to the following concentrations of risks:

(a) Major customers

For the six months ended June 30, 2024 and 2025, the customers who accounted for more than 10% of the Company's total revenues are presented as follows:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Customer A | 24% | 25% |
| Customer B | 11% | 9% |

---

As of December 31, 2024 and June 30, 2025, accounts receivable due from these customers which accounted for more than 10% of the total consolidated accounts receivable, respectively are presented as follows:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Customer A | 38% | 35% |
| Customer B | 19% | 18% |

---

**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)**

(b) Major vendors

For the six months ended June 30, 2024 and 2025, the vendors who accounted for more than 10% of the Company's cost of goods sold are presented as follows:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Vendor A, related party | 45% | 39% |
| Vendor B, related party | 30% | 31% |
| Vendor C, related party | 13% | 10% |

---

As of December 31, 2024 and June 30, 2025, accounts payable due to these vendors which accounted for more than 10% of the total consolidated accounts payable, respectively are presented as follows:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Vendor A, related party | 15% | 15% |
| Vendor B, related party | 43% | 33% |
| Vendor C, related party | 24% | 27% |

---

The major vendors of the Company are located in China.

(c) Credit risk

Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents. The Company places its cash with high credit quality institutions in Singapore and other countries, the composition and maturities of which are regularly monitored by the management. At times, cash amounts may be in excess of the Singapore Deposit Protection Board and other countries insurance limits. The Company has not experienced any losses in such account and believes that it is not exposed to any significant credit risk on the account. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.

The Company is also exposed to risk from its accounts receivable and advances to vendors. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.

(d) Foreign exchange risk

The Company has significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impact from (i) input costs that are denominated in currencies other than the local reporting currency and (ii) revaluation of working capital balances denominated in currencies other than the functional currency. The Company leverages its diversified portfolio of exposures as a natural hedge. In certain cases, the Company enters into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure.

The management currently has a foreign currency hedging policy. The management monitors foreign exchange exposure and will consider hedging significant foreign exchange exposure should the need arise.

(e) Interest rate risk

The Company is exposed to interest rate risk primarily relating to the fixed-rate trading financing and factoring facility. The Company has not used any derivative instruments to mitigate its exposure associated with interest rate risk. However, the management monitors interest rate exposure and will consider other necessary actions when significant interest rate exposure is anticipated.

(f) Global economic and political risk

The Company's products are sold in numerous countries worldwide, with more than half of the revenues generated outside Singapore. As a result, the Company is exposed to global macroeconomic factors, geopolitical tensions and government policies. The Company is also exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs, foreign exchange and interest rate changes. These risks can negatively impact the Company's net revenues, net earnings and cash flows.

**NOTE 15**－ **COMMITMENTS AND CONTINGENCIES**

From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. The Company currently is not aware of any legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on its business, financial condition, operating results, or cash flows.

As of June 30, 2025, the Company did not have any significant commitments and contingencies involved.

**NOTE 16**－ **SUBSEQUENT EVENTS**

In accordance with ASC Topic 855, *Subsequent Events*, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the combined financial statements are issued, the Company has evaluated all events or transactions that occurred after the balance sheet date up to the date that the unaudited condensed consolidated and combined financial statements were available to be issued.

On August 22, 2025, as approved by its shareholders, the Company increased its authorized shares from 100,000,000 shares to 500,000,000 shares with a par value of $0.0001 per share.

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

***Overview***

HomesToLife Ltd is an exempted company with limited liability incorporated under the laws of Cayman Islands ("we," "us," "our," "HomesToLife Cayman," or the "Company"). One of our operating companies, HomesToLife Pte. Ltd. ("HomesToLife Singapore"), is one of the leading home furniture retailers that offers and sells customized furniture solutions in Singapore under the brand of "HomesToLife." Currently, HomesToLife Singapore has four retail store locations, and among furniture companies that sell furniture manufactured from China and other Asian countries, HomesToLife Singapore is one of the largest in Singapore by the number of 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 Singapore offers and sells selected our products and brands of luxury contemporary furniture in Singapore, as well as products supplied by trusted third party suppliers. We incorporated HTL Far East Pte. Ltd. in Singapore on October 28, 2024, which is a company dedicated to sourcing, distributing, and delivering premium furniture and related products to the business sector across the Asia-Pacific region. We acquired HTL Marketing Pte Ltd ("HTL Marketing") in 2025 from a company of HTL Group (collectively all of the entities controlled or owned by our controlling shareholders and Chairman/Vice Chairman, Messrs. Phua Yong Pin and Phua Yong Tat). HTL Marketing is a leading B2B procurer and supplier of premium upholstered sofas and leather materials for sofa manufacturing, with sales across Asia-Pacific, Europe and North America regions. HTL Korea, one of HTL Marketing's subsidiaries, engages in retail business activities in Korea with two own retail store, and sell to franchisees and department store.

***Recent business development***

We aim to target the premium mass market by providing customers high-quality luxury products with affordable, reliable and customizable options, we also reserve and dedicate an exclusive space in our retail stores in Singapore for the marketing and selling of furniture under our "Domicil" brand and "Fabbrica" brand, two European furniture brands offering premium and luxury products that are designed by top designers from around the world and targeted at the middle and upper class consumer markets.

***Forward-looking information***

Certain statements in this report contain forward-looking statements that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "goal," "objective," "anticipate," "believe," "estimate," "predict," "potential," "continue" and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. The forward-looking statements and opinions contained in this report are based upon information available to us as of the date of this report and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

**RESULTS OF OPERATIONS**

The following table shows our Consolidated Statement of Operations data for the six-month periods ended June 30, 2024, and 2025 in USD. For further information regarding the results of our operations, see our unaudited interim condensed consolidated and combined financial statements appearing elsewhere in this report.

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Revenues, net |  |  |
| From third parties | $150461612 | $170117861 |
| From related parties | 5850497 | 10656942 |
|  | 156312109 | 180774803 |
| Cost of goods sold | (114376152) | (130942258) |
| Gross profit | 41935957 | 49832545 |
| Operating expenses: |  |  |
| Sales and distribution expenses | (26226218) | (31092110) |
| General and administrative expenses | (7978231) | (9025931) |
| Listing expenses | (310502) | (666021) |
| Total operating expenses | (34514951) | (40784062) |
| **Income from operations** | 7421006 | 9048483 |
| Other income (expense): |  |  |
| Interest expense | (387263) | (730372) |
| Interest income | 95040 | 16246 |
| Government subsidies | 21232 | 16950 |
| Foreign exchange gain, net | 532909 | 4293633 |
| Net gain from related parties debt restructuring |  | 1460543 |
| Professional fees on acquisition of HTL Marketing |  | (1261560) |
| Scrap sofa sale income | 303452 | 223263 |
| Sundry income | 81816 | 39404 |
| Change in fair value of derivatives and hedging instruments | (1064841) | (753243) |
| Total other (expense) income, net | (417655) | 3304864 |
| **Income before income taxes** | 7003351 | 12353347 |
| Income tax expense | (1637735) | (2329272) |
| **NET INCOME** | $5365616 | $10024075 |

---

Revenue grew by USD24.5 million, or 16%, to USD180.8 million for the six months ended June 30, 2025, from USD 156.3 million for the six months ended June 30, 2024, primarily driven by the following factors:

(a) A USD 19.8 million (13%) increase in export sales revenue, supported by higher sales volumes across key regions and a favorable shift in sales mix.

(b) A USD 3.3 million (55%) surge in leather trading revenue, mainly due to stock replenishment at related-party tannery factories.

(c) A
 USD 1.4 million (69%) rise in retail sales revenue, attributed to the newly acquired HTL Korea retail business. However, the Company
 closed two retail stores, Tagore store and Enterprise One store, in Singapore during the six months ended June 30, 2025, inline with
 its restructuring initiative carried out on April 1 2025. The closure of these retail stores and the inter-company elimination of
 subsidy from HTL Marketing led to a retail segment loss of approximately USD 0.95 million in Singapore for the six months ended June
 30, 2025 as compared to a retail segment loss of approximately USD 0.81 million for the six months ended June 30, 2024.

**Cost of goods sold**

Cost of goods sold primarily represents cost of acquiring leather and fabric upholstered furniture from leather and fabric production suppliers.

Cost of goods sold increased by USD 16.6 million, or 14.5%, to USD130.9 million for the six months ended June 30, 2025 from USD114.4 million for the six months ended June 30, 2024. The increase in cost of goods sold was primarily attributable to the increase in our revenue.

**Gross profit**

As a result of the foregoing, gross profit for the six months ended June 30, 2025 and 2024 was USD49.8 million and USD41.9 million, respectively, an increase of USD7.9 million or 18.8%.

During the six months ended June 30, 2025, gross profit margin at 27.6%, as compared to the gross profit margin at 26.8% for the six months ended June 30, 2024.This improvement was mainly due to an increase in the gross margin of export sales, which rose from 27.3% for the six months ended June 30, 2024, to 28.3% for the six months ended June 30, 2025.

We plan to closely monitor and optimize our product-mix from time to time to enhance our gross profit margin.

**Sales and distribution expenses**

Major components of sales and distribution expenses included salaries of our salespersons, sales commissions, depreciation of right-of-use assets of our retail stores, provision for warranty expenses, and outwards land transports. For the six months ended June 30, 2025, sales and distribution expenses were USD31.1 million, which increased by USD4.9 million from USD26.2 million for the preceding period. The increase was in line with the18.8% growth in sales volume.

The increase in sales and distribution expenses of USD4.9 million was primarily attributed by several factors. A significant contributor was the rise in freight and shipping costs due to the Suez Canal disruption, which led to a 39% increase in freight rates and an associated increase in ocean freight cost of USD2.4 million. This was partially offset by price adjustments passed on to customers. Additionally, expenses increase due to higher warranty provisions of USD1.2 million, higher commission expense of USD0.4 million, and USD0.8 million start-up costs related to the launch of retail operations in Korea.

**General and administrative expenses**

Major components of general and administrative expenses included salaries of our office staff, depreciation of right-of-use assets of our office and traveling expenses. For the six months ended June 30, 2025, general and administrative expenses were USD9.0 million, which increased by USD1.0 million when compared to USD8.0 million for the preceding period. The increase was mainly due to annual inflation-driven salary increments and an increase in headcount.

**Listing expenses**

Listing expenses increased by USD0.4 million, or 114.5%, to USD0.7 million for the six months ended June 30, 2025 from USD0.3 million for the six months ended June 30, 2024. Listing maintenance expenses of USD 0.7 million for the six months ended June 30, 2025, as the Company was listed on October 1, 2024. An audit fee of USD 0.3 million was incurred for the six months ended June 30, 2024 during its initial public offering (the "IPO") process.

**Other (expense) income, net**

For the six months ended June 30, 2025 and 2024, our other income, net mainly consisted of government subsidies of USD16,950 and USD21,232, net foreign exchange gain of USD4.3 million and USD0.5 million, scrap sofa sale income of USD0.2 million and USD0.3 million, net gain from of related parties debt restructuring of USD1.5 million and nil, offset by professional fees on acquisition of HTL Marketing of USD1.3 million and nil, interest expense of USD0.7 million and USD0.4 million, and change in fair value of derivatives and hedging instruments of USD0.8 million and USD1.1 million, respectively.

The net gain from of related parties debt restructuring is resulted from the deed of global settlement entered between HTL Marketing and its related parties for the purpose of common control acquisition which completed on May 19, 2025. During the six months ended June 30, 2025, a net gain of USD1.5 million was recognized and recorded in the accompanying unaudited condensed consolidated and combined statements of operations and comprehensive income.

**Net income**

As a result of the foregoing, net income for the six months ended June 30, 2025 and 2024 was USD10.0 million and USD5.4 million, respectively. Net profit margin for the six months ended June 30, 2025 and 2024 was 5.5% and 3.4%, respectively, for the aforesaid periods.

**LIQUIDITY AND CAPITAL RESOURCES**

We financed our daily operations and business development through cash generated from our operating subsidiaries. As of June 30, 2025 and December 31, 2024, our cash balance was USD20.1 million and USD24.9 million, respectively.

**Working capital**

The following table sets forth a summary of our working capital as of June 30, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| Current assets | $107774538 | $114511100 |
| Current liabilities | 102920770 | 99324434 |
| Net current assets | $4853768 | $15186666 |

---

As of June 30, 2025, current assets of USD114.5 million comprised cash and cash equivalents of USD20.1 million, accounts receivables, net of USD71.7 million, accounts receivables, net, related parties of USD0.4 million, net inventories of USD10.6 million, deposit, prepayments and other receivables of USD7.2 million, and amounts due from related parties of USD5.0 million. Current liabilities of USD99.3 million comprised accounts payable of USD2.9 million, accounts payable, related parties of USD55.3 million, customer deposits of USD1.2 million, accrued liabilities and other payables of USD6.5 million, short-term borrowings of USD23.4 million, amounts due to related parties of USD 0.3 million, lease liabilities of USD2.3 million , warranty liabilities of USD 3.1 million, derivative and hedging instruments of USD 0.8 million, and income tax payable of USD3.5 million. As a result of the foregoing, net current assets of June 30, 2025 was USD15.2 million .

As of December 31, 2024, current assets of USD107.8 million comprised cash and cash equivalents of USD24.9 million, accounts receivables, net of USD66.9 million, accounts receivables, net, related parties of USD0.9 million , net inventories of USD8.0 million, deposit, prepayments and other receivables of USD5.1million, and amounts due from related parties of USD2.8 million. Current liabilities of USD102.9 million comprised accounts payable of USD2.7 million, accounts payable, related parties of USD72.7 million, customer deposits of USD0.9 million, accrued liabilities and other payables of USD 4.4 million, short-term borrowings of USD15.3 million , amounts due to related parties of USD0.3 million, lease liabilities of USD2.1 million , warranty liabilities of USD2.1 million and income tax payable of USD2.5 million. As a result of the foregoing, net current assets as of December 31, 2024 was USD4.9 million.

**CASH FLOWS**

The following table sets forth a summary of our cash flows for the period indicated:

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
|  | USD | USD |
| Net cash used in operating activities | (11920640) | (11241457) |
| Net cash used in investing activities | (450220) | (557755) |
| Net cash provided by financing activities | 9008569 | 5966454 |

---

**Operating activities**

For the six months ended June 30, 2025, we recorded net cash used in operating activities of USD 11.2 million, which consisted of net income of USD10.0 million as adjusted for non-cash items and change in operating assets and liabilities. Adjustments for non-cash items mainly consisted of depreciation of property, plant and equipment of USD0.1 million, amortization of operating right-of-use assets of USD1.1 million, reversal for obsolete inventories of USD0.2 million, benefit for deferred income taxes of USD 0.1 million, provision for warranty liabilities of USD 4.0 million and non-cash lease expense of USD1.2 million, provision for reinstatement cost of USD77,277, net change in fair value of derivative and hedging of USD 0.8 million and other things. Change in operating assets and liabilities primarily included increase in accounts receivables of USD4.7 million, increase in inventories of USD2.4 million, increase in deposits, prepayments, and other receivables of USD2.0 million, decrease in warranty liabilities of USD3.0 million, and decrease in accounts payable of USD17.3 million, being partially offset by increase in customer deposits of USD0.4 million, increase in accrued liabilities and other payables of USD2.1 million, increase in income tax payable of USD1.1 million and other things.

For the six months ended June 30, 2024, we recorded net cash used in operating activities of USD11.9 million, which consisted of net income of USD5.4 million as adjusted for non-cash items and change in operating assets and liabilities. Adjustments for non-cash items mainly consisted of depreciation of property, plant and equipment of USD0.1 million, amortization of right-of-use assets of USD0.9 million, allowance for obsolete inventories of USD0.1 million, provision for warranty liabilities of USD 2.8 million, reversal for reinstatement of USD56,503, non-cash lease expense of USD0.8 million, net change in fair value of derivative and hedging of USD 1.1 million and other things. Change in operating assets and liabilities primarily included increase in inventories of USD1.0 million, increase in deposits, prepayments, and other receivables of USD1.9 million, increase in deferred offering cost of USD0.8 million, decrease in warranty liabilities of USD2.7 million, decrease in accounts payable of USD13.7 million, decrease in accrued liabilities and other payables of USD0.4 million, increase in accounts receivables of USD2.0 million ,being partially offset by increase in customer deposits of USD25,303, increase in income tax payable of USD1.0 million, and other things.

**Investing activities**

For the six months ended June 30, 2025 and 2024, we recorded net cash used in investing activities of USD0.6 million and USD0.5 million, respectively, which were the purchase of property, plant and equipment for these periods.

**Financing activities**

For the six months ended June 30, 2025, we recorded net cash provided by financing activities of USD6.0 million, being decrease in amount due from related parties-reorganization and scrapping of USD7.1 million, proceeds from short-term borrowings of USD8.1 million and increase in amount due from related parties of USD9.2 million.

For the six months ended June 30, 2024, we recorded net cash provided by financing activities of USD9.0 million, being proceeds from short-term borrowings of USD9.0 million, increase in amounts due from related parties-reorganization and scrapping of USD2.6 million, decrease in amounts due from related parties of USD4.6 million and increase in amounts due to related parties of USD2.1 million.

**Future Capital Requirements**

Historically, our primary use of cash has been to finance working capital needs. We expect that we will be able to meet our needs to fund operations, capital expenditures and other commitments in the next 12 months primarily with our cash and cash equivalents, accounts receivables and operating cash flows.

We may, however, require additional cash resources due to changes in business conditions or other future developments. If these sources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could result in additional dilution to stockholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financial covenants that would restrict operations. Financing may not be available in amounts or on terms acceptable to us, or at all.

Our capital requirements for 2025 and future years will depend on numerous factors, including management's evaluation of the timing of projects to pursue. Subject to our ability to generate revenues and cash flow from operations and our ability to raise additional capital (including through possible joint ventures, acquisitions, and/or partnerships), we expect to incur substantial expenditures to carry out our business plan, as well as costs associated with our capital raising efforts and being a public company.

**Material Cash Requirements**

Our cash requirements consist primarily of day-to-day operating expenses, capital expenditure and contractual obligations with respect to operating leases.

We lease some of our office facilities, retail stores and warehouse. We expect to make future payments on existing leases from cash generated from operations.

We have limited credit available from our major vendors and are obligated to settle the purchase invoices, which further constrains our cash liquidity.

We believe that we have sufficient working capital for our requirements for at least the next 12 months from the date of this filing, absent unforeseen circumstances, taking into account the financial resources presently available to us, including cash and cash equivalents on hand, cash flows from our operations and the net proceeds from our IPO which was consummated on October 2, 2024.

***Capital Expenditures***

Our capital expenditures amounted to approximately USD0.6 million and USD0.5 million relating to the purchase of plant and equipment for the six months ended June 30, 2025 and 2024, respectively.

We plan to fund our future capital expenditures with our existing cash balance and proceeds from our IPO. We will continue to make capital expenditures to meet the expected growth of our business, including office equipment and leasehold improvements.

***Contractual Obligations***

We have also entered into commercial operating lease agreements with various third parties, for the use of retail stores and warehouse in Singapore.

The following table sets forth our contractual obligations as of December 31, 2024 and June 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
| <br>Lease obligation | **Total** | **Less than 1 Year** | **1-3 Years** | **3-5 Years** | **More than 5 Years** |
|  | **USD** | **USD** | **USD** | **USD** | **USD** |
| As of December 31, 2024 | 6983602 | 2100281 | 2933642 | 635223 | 1314456 |
| As of June 30, 2025 | 7606006 | 2320101 | 2817650 | 1138186 | 1330069 |

---

**Off-Balance Sheet Arrangements**

We have off-balance sheet financial guarantees but do not have other off-balance sheet commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder's equity or that are not reflected in our unaudited condensed consolidated and combined financial statements but have entered into derivative contracts on foreign currency hedging. Furthermore, we do not have any retained or contingent interest in assets transferred to an uncombined entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any uncombined entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.

---

| | | | |
|:---|:---|:---|:---|
| Off Balance Sheet Agreement | June 30, 2024 <br>$'million | December 31, 2024 <br>$'million | June 30, 2025 <br>$'million |
| Issuance of letter of credit | 3.1 | 2.4 | 4.3 |
| Outstanding foreign exchange derivative contracts | 93.2 |  | 85.7 |

---

**QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK**

*Concentration of credit risk*

Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with financial institutions with high credit ratings and quality.

We conduct credit evaluations of customers, and generally do not require collateral or other security from our customers. We establish an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers.

*Concentration risk in major customers*

For the six months ended June 30, 2024 and 2025, the vendor, being related parties, who accounted for 10% or more of our sales and our account receivables balances at period-end date, are presented as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Six months ended June 30, 2024 | Six months ended June 30, 2024 | As of June 30, 2024 |
| Customer | Sales | Percentage<br> of sales | Account<br> receivables |
|  | USD |  | USD |
| Customer A | 37499041 | 24% | 22160489 |
| Customer B | 16454234 | 11% | 12341276 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Six months ended June 30, 2025 | Six months ended June 30, 2025 | As of June 30, 2025 |
| Customer | Sales | Percentage<br> of sales | Account<br> receivables |
|  | USD |  | USD |
| Customer A | 45472851 | 25% | 24873022 |
| Customer B | 15518410 | 9% | 12648103 |

---

*Concentration risk in major vendors*

For the six months ended June 30, 2024 and 2025, the vendor, being related parties, who accounted for 10% or more of our cost of goods sold and our outstanding payable balances at period-end date, are presented as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Six months ended June 30, 2024 | Six months ended June 30, 2024 | As of June 30, 2024 |
| Vendor | Cost of<br> goods sold | Percentage of<br> cost of goods<br> sold | Accounts<br> payable |
|  | USD |  | USD |
| HTL Furniture (China) Co., Ltd. (related party) | 50628327 | 45% | 10998808 |
| HTL Furniture (Changshu) Co., Ltd. (related party) | 34679920 | 30% | 32467504 |
| HTL Sofa (Kunshan) Co., Ltd. (related party) | 15305317 | 13% | 18118921 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Six months ended June 30, 2025 | Six months ended June 30, 2025 | As of June 30, 2025 |
| Vendor | Cost of<br> goods sold | Percentage of<br> cost of goods<br> sold | Accounts<br> payable |
|  | USD |  | USD |
| HTL Furniture (China) Co., Ltd. (related party) | 51541144 | 39% | 8810225 |
| HTL Furniture (Changshu) Co., Ltd. (related party) | 40378968 | 31% | 19438331 |
| HTL Sofa (Kunshan) Co., Ltd. (related party) | 13726028 | 10% | 15783278 |

---

Our major vendors are located in China.

*Liquidity risk*

Our policy is to regularly monitor our liquidity requirements, to ensure that we maintain sufficient reserves of cash and adequate committed lines of funding from major financial institutions to meet our liquidity requirements in the short and long term. See "Liquidity and Capital Resources" for details.

HTL Marketing obtained the trade financing revolving and factoring facilities among various financial institutions in Singapore, in the aggregate principal amount of up to $33 million, which bear annual interest at the effective average rates of 6.2% with maturity of 90 days to 180 days. The purpose of these banking facilities is to support its furniture export and leather trading operations. These banking facilities are secured by an irrevocable corporate guarantee provided by GHC with a maximum aggregate amount of $50 million and certain assignments of accounts receivable. The corporate guarantee expires six months after the full repayment of all loans. As of December 31, 2024 and June 30, 2025, the short-term borrowings were $15.3 million and $23.4 million, respectively.

If HTL Marketing defaults on its obligations, GHC would be required to repay the outstanding amounts under the guarantee. As of June 30, 2025, the financial position of GHC is sufficient to cover this guarantee; however, a material default could adversely affect GHC's capacity to support the Company's future financing requirements.

While the guarantee does not create direct financial obligations for the Company, any operational disruption at HTL Marketing such as a loan termination would negatively impact the Company's consolidated revenues and gross profit, as HTL Marketing accounts for approximately 93% of the Company's export sales.

We closely monitor HTL Marketing's loan utilization and repayment status on a monthly basis, and GHC provides quarterly updates regarding its continued ability to maintain the guarantee.

## Exhibit 99.3

**Exhibit 99.3**

**HomesToLife Ltd Delivers 87% Increase in 1H 2025 Net Income to US$10.0 Million**

*Export growth and geographical expansion drive strong first-half performance*

 

SINGAPORE, Sep. 17, 2025 – HomesToLife Ltd (Nasdaq: HTLM) ("HomesToLife" or the "Company"), a Singapore-based home furniture company with sales across Asia-Pacific, Europe and North America, today announced its unaudited financial results for the six months ended June 30, 2025 ("1H 2025").

"*Strong export sales and favourable foreign exchange gains underpinned a 87% increase in net income to $10.0 million,"* said Ms. Phua Mei Ming, Chief Executive Officer of HomesToLife. *"Our capital-efficient model delivered a strong 61%**<sup>1</sup>** return on equity in 1H 2025, underscoring the benefits of consolidating all trading and marketing under one group and positioning us for sustained growth in our core B2B furniture business across key international markets."*

 

*"While we are mindful of recent U.S. policy remarks regarding furniture imports, our direct sales exposure to the U.S. remains modest at 7.7% of 1H 2025 revenue, and we are confident that our diversified export base across Europe and Asia-Pacific will continue to drive long-term growth*." Ms. Phua Mei Ming added.

**Selected Financial Highlights – 1H2024 vs 1H2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **1H 2024**<br> US$'000** | **% OF**<br> **REV.** | **1H 2025**<br> **US$'000** | **% of**<br> **REV.** | **% of**<br> **REV.** | **Y/Y CHANGE** |
| **Net revenue** | **156312** |  | **180775** | |  | **16%** |
| &nbsp;&nbsp;&nbsp;**Retail** | 2003 | 1% | 3382 | | 2% | 69% |
| &nbsp;&nbsp;&nbsp;**Export** | 148257 | 95% | 168009 | | 93% | 13% |
| &nbsp;&nbsp;&nbsp;**Leather Trading** | 6052 | 4% | 9384 | | 5% | 55% |
|  |  |  |  | **** |  |  |
| **By geographical** | **156312** |  | **180775** | **** |  | **16%** |
| &nbsp;&nbsp;&nbsp;**Asia Pacific** | 42860 | 27% | 48683 | | 27% | 14% |
| &nbsp;&nbsp;&nbsp;**Europe** | 94433 | 61% | 109989 | | 61% | 16% |
| &nbsp;&nbsp;&nbsp;**<sup>2</sup>North America** | 19019 | 12% | 22103 | | 12% | 16% |
|  |  |  |  | |  |  |
| **Gross profit** | **41936** | **26.8%** | **49832** | **** | **27.6%** | **19%** |
| &nbsp;&nbsp;&nbsp;**Retail** | 1227 | 61% | 1981 | | 59% | 61% |
| &nbsp;&nbsp;&nbsp;**Export** | 40437 | 27% | 47483 | | 28% | 17% |
| &nbsp;&nbsp;&nbsp;**Leather Trading** | 272 | 5% | 368 | | 4% | 35% |
|  |  |  |  | |  |  |
| **Operating expenses** | **34515** | **22.1%** | **40784** | **** | **22.6%** | **18%** |
|  |  |  |  | |  |  |
| **Income from operations** | **7421** | **4.7%** | **9048** | **** | **5.0%** | **22%** |
| **Net income** | **5366** | **3.4%** | **10024** | **** | **5.5%** | **87%** |
|  |  |  |  | |  |  |
| **Net income per share** | 0.06 |  | 0.11 | |  |  |

---

<sup>1</sup> Return on Equity ("ROE") is calculated as net income attributable to shareholders divided by average shareholder equity for the period, where average equity is derived from the sum of opening and closing equity balances divided by two. For 1H 2025, ROE was 61% (Net income: $10.0 million; Average equity: $16.41 million).

<sup>2</sup> North America includes United States of America and Canada.

Page 1 of **9**

The Company reported net revenue of $180.8 million in 1H 2025, a 16% increase from revenue of $156.3 million in the same period last year, driven by export sales across Asia-Pacific, Europe and North America.

Newly acquired retail operations in Korea, which began in November 2024, contributed $1.5 million in revenue during the period. Singapore and Korea retail stores continue to serve as brand showrooms and design testbeds, providing consumer insights to support HomesToLife's B2B and B2C product roadmap.

Export sales continued to be the cornerstone of performance, supported by strong demand in Europe (+16%) and North America (+16%), and steady growth in Asia-Pacific (+3%). The leather trading division also posted a 55% revenue increase as it plays a critical supporting role in ensuring raw material availability and pricing stability for the HomesToLife's business.

Gross profit rose 19% to $49.8 million, compared to $41.9 million in 1H 2024 pro forma results in line with the higher revenue. Gross margin remained stable at 27.6% in 1H 2025 compared to 26.8% in 1H 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **1H 2024 <br>US$'000** | **% OF**<br> **REV.** | **1H 2025**<br> **US$'000** | **% of**<br> **REV** | **Y/Y**<br> **CHANGE** | **USD'000** |
| **Operating expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | (26226) | (16.8)% | (31092) | (17.2)% | 19% | (4866) |
| &nbsp;&nbsp;&nbsp;Administrative expenses | (7978) | (5.1)% | (9026) | (5.0)% | 13% | (1048) |
| &nbsp;&nbsp;&nbsp;Listing status maintenance expenses |  | 0.0% | (666) | (0.4)% | NA | (666) |
| &nbsp;&nbsp;&nbsp;IPO audit fees | (311) | (0.2)% | - | 0.0% | NA | 311 |
| Total Operating Expenses | (34515) |  | (40784) |  | 18% | (6269) |

---

In 1H 2025, total operating expenses rose 18 % year-over-year to $40.8 million, driven by a 19% increase in selling expenses to $31.0 million. The $4.9 million increase in selling and distribution costs reflects several factors. A key contributor was the disruption in the Suez Canal, which pushed freight rates up 39 % and added US$2.4 million in ocean-shipping costs; these were partially offset by price increases passed on to customers. Additional pressures came from a $1.2 million increase in warranty provisions, a $0.4 million rise in commission expenses, and $0.8 million in start-up costs related to the acquisition of retail operations in South Korea.

General and administrative expenses rose 13% to $9.0 million, which included $0.1 million from the new Korea operations and wage adjustments across HomesToLife and its subsidiaries. HomesToLife also incurred $0.6 million in listing-maintenance expenses in 1H 2025, following its successful Nasdaq listing on October 1, 2024.

These expenses were partially offset by foreign exchange gains of $4.3 million, up from $0.5 million in the same period last year. The increase was mainly driven by favourable movements in accounts receivable denominated in GBP and EUR, which appreciated against the USD between December 31, 2024 and June 30, 2025, as well as accounts payable denominated in CNH, which depreciated against the USD over the period from January 1 to June 30, 2025.

Page 2 of **9**

Net income for the period rose 87% to $10.0 million, compared to a pro forma net profit of $5.4 million in 1H 2024, translating to earnings per share of $0.11, up from $0.06 per share.

As of June 30, 2025, the Company remained in a healthy financial position, with $20.0 million in cash and bank balances. Borrowings stood at $23.3 million, primarily due to short-term trade financing facilities to support higher working capital needs from export volume growth.

Net cash used in operating activities was $11.2 million in 1H 2025, largely due to working capital movements. This included a $17.3 million increase in payment to accounts payable, primarily related to growing export volumes. Inventories rose by $2.4 million, mainly from sales under DDU/CIF terms, which increased goods in transit by $2.2 million, and from the start-up of retail operations in Korea. Accounts receivable increased by $4.7 million, in line with the 16% revenue growth.

The Company continues to actively manage its export sales cash conversion cycle, which improved to 78 days from 83 days a year ago. Management expects working capital efficiency to normalize in the six months ending December 31, 2025, supported by stronger seasonal collections and tighter inventory management.

**Outlook**

The Company anticipates total revenue for FY2025 to range between $340 million and $375 million.

The upper end of this range reflects expectations of a seasonally stronger second half of 2025 compared to 1H 2025 as well as continued momentum in export markets. The lower end takes into account potential headwinds from recently announced U.S. policy statements concerning furniture imports.

The Company plans to continue to maintain a robust liquidity position, ensuring financial flexibility to support its strategic growth initiatives while meeting short-term operational and financing obligations.

**About HomesToLife Ltd (Nasdaq: HTLM)**

HomesToLife Ltd is a holding company with two core divisions in global furniture industry: a Consumer Retail Division with direct operations in Singapore and Korea, and a Wholesale & Trade Division supplying furniture and leather to retail partners worldwide.

Its integrated model combines retail, distribution, and sourcing, supported by a diversified manufacturing network across China, Italy, Vietnam and India.

HomesToLife has appointed its affiliated entity, the Design, Product Development & Marketing business unit (DPM), to spearhead research, sourcing, design, and value-engineering—ensuring every product is precisely aligned with customer needs and market strategy. With rapid expansion underway across Asia-Pacific, Europe and North America, HomesToLife and its subsidiaries leverage long-standing supplier partnerships and a global footprint to deliver scale, efficiency, and resilience.

Page 3 of **9**

**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 financial condition, results of operations, business strategy and financial needs of the Company and its subsidiaries. Forward-looking statements can be identified by the words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. 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: Investor@homestolife.com

**Investor Relations Inquiries:**

Edelman Smithfield

Roger Ng, Senior Director

Jass Lim, Associate Director

HomesToLife@edelmansmithfield.com

Page 4 of **9**

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2024 | June 30, 2025 |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $24860621 | $20071387 |
| Accounts receivables, net (including receivable from related parties of $928,951 and $353,886 as of December 31, 2024 and June 30, 2025, respectively) | 66928602 | 71669261 |
| Inventories, net | 8032089 | 10613295 |
| Amounts due from related parties | 2807854 | 4967733 |
| Deposit, prepayments and other receivables | 5145372 | 7189424 |
| Total current assets | 107774538 | 114511100 |
| Non-current assets: |  |  |
| Property, plant and equipment, net | 3734157 | 4499588 |
| Right-of-use assets, net | 6632749 | 7256728 |
| Deferred tax asset, net | 636581 | 786384 |
| Total non-current assets | 11003487 | 12542700 |
| **TOTAL ASSETS** | $118778025 | $127053800 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $2701283 | $2867425 |
| Accounts payable, related parties | 72724799 | 55254469 |
| Customer deposits | 853626 | 1236916 |
| Accrued liabilities and other payables | 4428806 | 6541572 |
| Short-term borrowings | 15255874 | 23382206 |
| Amounts due to related parties | 292753 | 292753 |
| Lease liabilities | 2100281 | 2320101 |
| Warranty liabilities | 2095842 | 3129470 |
| Derivatives and hedging instruments |  | 753243 |
| Income tax payable | 2467506 | 3546279 |
| Total current liabilities | 102920770 | 99324434 |
| Long-term liabilities: |  |  |
| Provision for reinstatement cost | 262479 | 339756 |
| Lease liabilities | 4883321 | 5285905 |
| Total long-term liabilities | 5145800 | 5625661 |
| **TOTAL LIABILITIES** | 108066570 | 104950095 |
| Commitments and contingencies |  |  |
| Shareholders' equity: |  |  |
| Ordinary share, $0.0001 par value, 100,000,000 shares authorized,89,687,500 and 89,687,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024\* | 8969 | 8969 |
| Additional paid-in capital | 37179424 | 37179424 |
| Accumulated other comprehensive loss | (12686896) | (11318721) |
| Accumulated losses | (13790042) | (3765967) |
| Total shareholders' equity | 10711455 | 22103705 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $118778025 | $127053800 |

---

\* The share amounts are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).

Page 5 of **9**

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | Six months ended June 30, | Six months ended June 30, |
|  | 2024 | 2025 |
| Revenues, net |  |  |
| From third parties | $150461612 | $170117861 |
| From related parties | 5850497 | 10656942 |
|  | 156312109 | 180774803 |
| Cost of goods sold | (114376152) | (130942258) |
| Gross profit | 41935957 | 49832545 |
| Operating expenses: |  |  |
| Sales and distribution expenses | (26226218) | (31092110) |
| General and administrative expenses | (7978231) | (9025931) |
| Listing expenses | (310502) | (666021) |
| Total operating expenses | (34514951) | (40784062) |
| **Income from operations** | 7421006 | 9048483 |
| Other income (expenses): |  |  |
| Interest expense | (387263) | (730372) |
| Interest income | 95040 | 16246 |
| Government subsidies | 21232 | 16950 |
| Foreign exchange gain, net | 532909 | 4293633 |
| Net gain from related parties debt restructuring |  | 1460543 |
| Professional fees on acquisition of HTL Marketing |  | (1261560) |
| Scrap sofa sale income | 303452 | 223263 |
| Sundry income | 81816 | 39404 |
| Change in fair value of derivatives and hedging instruments | (1064841) | (753243) |
| Total other (expense) income, net | (417655) | 3304864 |
| **Income before income taxes** | 7003351 | 12353347 |
| Income tax expense | (1637735) | (2329272) |
| **NET INCOME** | $5365616 | $10024075 |
| Other comprehensive income (loss): |  |  |
| – Foreign currency translation adjustments | (1648993) | 1368175 |
| **COMPREHENSIVE INCOME** | $3716623 | $11392250 |
| Weighted average number of ordinary shares: |  |  |
| Basic and diluted \* | 88250000 | 89687500 |
| **EARNINGS PER SHARE – BASIC AND DILUTED** | $0.06 | $0.11 |

---

\* The share amounts and per share data are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).

Page 6 of **9**

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME – SEGMENT REPORTING**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 | Six months ended June 30, 2024 |
|  | Retail Sales | Export Sales | Leather Trading | Corporate and unallocated | Total |
| Revenues, net |  |  |  |  |  |
| From third party | $2003351 | $147484078 | $974183 | $- | $150461612 |
| From related parties | - | 773015 | 5077482 | - | 5850497 |
|  | 2003351 | 148257093 | 6051665 |  | 156312109 |
| Cost of goods sold | (776807) | (107820138) | (5779207) | - | (114376152) |
| Gross profit | 1226544 | 40436955 | 272458 |  | 41935957 |
| Operating expenses: |  |  |  |  |  |
| Sales and distribution | (1362959) | (24754901) | (108358) |  | (26226218) |
| General and administrative | (616212) | (7262510) | (3553) | (95956) | (7978231) |
| Listing expenses | - | - | - | (310502) | (310502) |
| Total operating expenses | (1979171) | (32017411) | (111911) | (406458) | (34514951) |
| Operating (loss) profit | (752627) | 8419544 | 160547 | (406458) | 7421006 |
| Other income (expenses): |  |  |  |  |  |
| Interest expense | (93345) | (143112) | (150806) |  | (387263) |
| Interest income |  | 94861 | 179 |  | 95040 |
| Government subsidies | 13689 | 7543 |  |  | 21232 |
| Foreign exchange gain (loss), net | (523) | 532768 | 2176 | (1512) | 532909 |
| Scrap sofa sale income |  | 303452 |  |  | 303452 |
| Sundry income | 27144 | 54669 | 3 |  | 81816 |
| Change in fair value of derivatives and hedging instruments | - | (1064841) | - | - | (1064841) |
| Total other expense, net | (53035) | (214660) | (148448) | (1512) | (417655) |
| Income (loss) before income expense | (805662) | 8204884 | 12099 | (407970) | 7003351 |
| Income tax expense | - | (1635679) | (2056) | - | (1637735) |
| Segment income (loss) | $(805662) | $6569205 | $10043 | $(407970) | $5365616 |

---

Page 7 of **9**

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME – SEGMENT REPORTING**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 | Six months ended June 30, 2025 |
|  | Retail Sales | Export<br> Sales | Leather Trading | Corporate and unallocated | Total |
| Revenues, net |  |  |  |  |  |
| From third party | $3382273 | $166459189 | $276399 | $- | $170117861 |
| From related parties | - | 1550023 | 9106919 | - | 10656942 |
|  | 3382273 | 168009212 | 9383318 |  | 180774803 |
| Cost of goods sold | (1401494) | (120526294) | (9014470) | - | (130942258) |
| Gross profit | 1980779 | 47482918 | 368848 |  | 49832545 |
| Operating expenses: |  |  |  |  |  |
| Sales and distribution | (2404689) | (28634760) | (52661) |  | (31092110) |
| General and administrative | (906968) | (8099908) | (3025) | (16030) | (9025931) |
| Listing expenses | - | - | - | (666021) | (666021) |
| Total operating expenses | (3311657) | (36734668) | (55686) | (682051) | (40784062) |
| Operating profit (loss) | (1330878) | 10748250 | 313162 | (682051) | 9048483 |
| Other income (expenses): |  |  |  |  |  |
| Interest expense | (125183) | (394423) | (210766) |  | (730372) |
| Interest income | 130 | 15946 | 170 |  | 16246 |
| Government subsidies | 12238 | 4712 |  |  | 16950 |
| Foreign exchange gain (loss), net | (9647) | 4292067 | 6215 | 4998 | 4293633 |
| Net gain from related parties debt restructuring |  |  |  | 1460543 | 1460543 |
| Professional fees on acquisition of HTL Marketing |  | (133960) |  | (1127600) | (1261560) |
| Scrap sofa sale income |  | 223263 |  |  | 223263 |
| Sundry income (expense) | 78284 | 21551 | 7 | (60438) | 39404 |
| Change in fair value of derivatives and hedging instruments | - | (753243) | - | - | (753243) |
| Total other income (expenses), net | (44178) | 3275913 | (204374) | 277503 | 3304864 |
| Income (loss) before income expense | (1375056) | 14024163 | 108788 | (404548) | 12353347 |
| Income tax expense | - | (2310779) | (18493) | - | (2329272) |
| Segment income (loss) | $(1375056) | $11713384 | $90295 | $(404548) | $10024075 |

---

Page 8 of **9**

**HOMESTOLIFE LTD AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS**

**(Currency expressed in United States Dollars ("US$"), except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | Six Months ended June 30, | Six Months ended June 30, |
|  | 2024 | 2025 |
| **Cash flows from operating activities:** |  |  |
| Net income | $5365616 | $10024075 |
| Adjustments to reconcile net income to net cash used in operating activities |  |  |
| Depreciation of property, plant and equipment | 95004 | 142739 |
| Amortization of operating right-of-use assets | 890642 | 1118679 |
| Allowance (reversal) for obsolete inventories | 120699 | (164167) |
| Benefit for deferred income taxes | (27357) | (136389) |
| (Written-off) provision for allowance for expected credit losses | (8453) | 4665 |
| Provision for warranty liabilities | 2769218 | 4004614 |
| (Reversal) provision for reinstatement cost | (56503) | 77277 |
| Changes in operating leases | (764938) | (1159429) |
| Change in fair value of derivatives and hedging instruments | 1064841 | 753243 |
| Written-off property, plant and equipment | 13858 |  |
| Change in operating assets and liabilities: |  |  |
| Accounts receivables | (1990471) | (4745325) |
| Inventories | (966774) | (2417038) |
| Deferred offering cost | (763877) |  |
| Deposit, prepayments, and other receivables | (1941737) | (2044057) |
| Accounts payable | (13673912) | (17304187) |
| Customer deposits | 25303 | 383291 |
| Accrued liabilities and other payables | (396701) | 2112765 |
| Warranty liabilities | (2706303) | (2970986) |
| Income tax payable | 1031205 | 1078773 |
| Net cash used in operating activities | (11920640) | (11241457) |
| **Cash flows from investing activities:** |  |  |
| Purchase of property, plant and equipment | (450220) | (557755) |
| Net cash used in investing activities | (450220) | (557755) |
| **Cash flows from financing activities:** |  |  |
| Net proceeds from short-term borrowings | 9036565 | 8126333 |
| Amounts due from related parties | 4579697 | (9226649) |
| Amount due to related parties | (2051283) |  |
| Amount due from related parties - Reorganization and scrapping | (2556410) | 7066770 |
| Net cash provided by financing activities | 9008569 | 5966454 |
| Effect of foreign exchange rates on cash and cash equivalents | (796843) | 1043524 |
| **Net change in cash and cash equivalents** | (4159134) | (4789234) |
| **BEGINNING OF PERIOD** | 22624972 | 24860621 |
| **END OF PERIOD** | $18465838 | $20071387 |
| **SUPPLEMENTAL CASH FLOW INFORMATION:** |  |  |
| Cash paid for income taxes | $604730 | $1398808 |
| Cash paid for interest | $282280 | $570293 |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| Shares issued for common control acquisition | $75000000 | $75000000 |
| Related parties balances under offsetting arrangement upon reorganization | $(493039) | $15337816 |

---

See accompanying notes to the unaudited condensed consolidated and combined financial statements.

Page 9 of **9**