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, with six retail stores and a minimal online sales presence.

• Holds exclusive 20-year supply and brand distribution agreements with HTL Marketing for key brands, ensuring reliable product sourcing and exclusive rights to sell Domicil and Fabbrica brands in Singapore.

• Targets the premium mass market, focusing on high-quality, customizable products for middle and upper-class consumers, and plans to expand into other Asian markets including Taiwan, Korea, Indonesia, and Malaysia.

• Business model is primarily B2C through physical retail, with a one-stop shop concept and value-added services such as interior design consultancy.

Financial performance and metrics

• FY2023 revenue was SGD6.8 million (US$5.2 million), down 17.3% from SGD8.2 million in FY2022, primarily due to a slowdown in the home furniture market.

• Gross profit margin increased to 71.7% in FY2023 from 62.1% in FY2022, despite lower revenue, due to decreased 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 use approximately 70% of net IPO proceeds for opening new stores in Singapore and other Asian countries, 20% for sales and marketing, and 10% for IT.

• Management retains significant flexibility in allocation and may adjust use of proceeds based on business conditions.