HomesToLife (HTLM) Registration Filing summary

Company overview and business model

• Operates as a leading home furniture retailer in Singapore, specializing in customized leather and fabric upholstered furniture, case goods, and accessories through six retail stores and an online platform.

• Holds exclusive 20-year supply and brand distribution agreements with HTL Group entities, securing reliable product supply and exclusive rights to premium brands like Domicil and Fabbrica.

• Targets the premium mass market and middle/upper class consumers, offering high-quality, customizable products and value-added services such as in-store design consultancy.

• Plans to expand retail presence in Singapore and other Asian markets, including Taiwan, Korea, Indonesia, and Malaysia, using IPO proceeds.

Financial performance and metrics

• FY2023 revenue was SGD6.8 million (US$5.2 million), down 17.3% from SGD8.2 million in FY2022, mainly due to a global economic slowdown.

• Gross profit margin increased to 71.7% in FY2023 from 62.1% in FY2022, driven by lower unit costs as pandemic effects waned.

• Net income for FY2023 was SGD0.3 million (US$0.2 million), a 71.6% decrease from SGD1.1 million in FY2022; net profit margin was 4.7% in FY2023.

• As of December 31, 2023, cash and cash equivalents were SGD1.8 million (US$1.4 million), with net current assets of SGD0.6 million (US$0.5 million).

• Major costs include product procurement, wages, rental, and freight; rental costs for FY2023 were SGD1.4 million (US$1.1 million).

Use of proceeds and capital allocation

• Plans to allocate approximately 70% of net IPO proceeds to open new stores in Singapore and other Asian countries, 20% to sales and marketing, and 10% to IT.

• Management retains flexibility to adjust allocation based on business needs and market conditions.