[Royal Furniture 1198.HK] Formation of Joint Venture to Enter into Complete Home Furnishing Solution E-Commerce Business, Offer One-stop Complete Household Solutions to Consumers

EQS-News / 12/10/2016 / 11:12 UTC+8

【For Immediate Release】                                 12 October 2016





ROYALE FURNITURE HOLDINGS LIMITED
(Stock code: 1198.HK)

*   *   *
Formation of Joint Venture to Enter into Complete Home Furnishing Solution
E-Commerce Business
Offer One-stop Complete Household Solutions to Consumers 
*   *   *

[12 October 2016 - Hong Kong] Today, the Board of Royale Furniture Holdings
Limited (the "Company", together with its subsidiaries, the "Group") is
pleased to announce the formation of Bestech Investment Development Limited
(the "Joint Venture"), and its entrance to the complete home furnishing
e-commerce business in the PRC to offer one-stop solutions to consumers.

On 11 October 2016, Chitaly Furniture Global Limited, an indirectly
wholly-owned subsidiary of the Company, and Mr. Tse Kam Pang(""Mr. Tse"),
an executive director and a substantial shareholder of the Company, entered
into an agreement that they would invest HK$18,000,000 and HK$12,000,000
respectively to establish the Joint Venture. The Joint Venture will then be
an indirectly non-wholly owned subsidiary of the Company and that would be
60% owned by the Group and 40% owned by Mr. Tse.

As internet development becomes more mature, the PRC has been actively
promoting the "Internet+" policy and encouraging the co-development of
internet and traditional industries to consolidate industry resources, and
create new value and new opportunities. Combining the well-known furniture
brand and comprehensive distribution network of the Group, and Mr. Tse's
extensive connections, experience and capital, the Joint Venture will lay a
solid foundation for our complete home furnishing solution e-commerce
business in the PRC to capture the massive opportunities from complete home
furnishing solution e-commerce market.

The Joint Venture establishes a diversified complete home furnishing O2O
platform and offers one-stop solutions to consumers. The platform
consolidates a wide range of home furnishing industry supply chains,
including building materials, bathroom, furniture, soft decor and smart
home segments. The formation of the Joint Venture marks the Group's
progressive implementation of its Royale Furniture Home Furnishing
Platform.

Mr. Tse Kam Pang, the Chairman and CEO of Royale Furniture, said "The Group
will build up a new business model by promoting the complete home
furnishing strategy and consolidating the industry chain. We will offer a
platform to work with our supply chain partners, with an aim to satisfy
consumers' need for personalized solutions."


- End -

About Royale Furniture Holdings Limited
Royale Furniture Holdings Limited (Stock Code: 1198.HK), is one of the
leading furniture brands in China with extensive franchisee network. "Royal
Furniture皇朝傢俬" was appointed as the Official Home Furniture Exclusive
Supplier for the Beijing 2008 Olympic Games. In 2009, "Royal Furniture皇朝傢俬"
was appointed as the exclusive supplier of all furniture products for the
26th Summer Universiade to be held at Shenzhen in 2011.

This press release is issued by DLK Advisory Limited for and on behalf of
Royale Furniture Holdings Limited.

For further information, please contact: 

DLK Advisory Limited
Tel: +852 2857 7101
Fax: +852 2857 7103


---------------------------------------------------------------------------


Document: http://n.eqs.com/c/fncls.ssp?u=MDDHHKCSIL
Document title: 1198_press release_Eng_20161012_EQS

---------------------------------------------------------------------------

Key word(s): Joint Venture

12/10/2016 Dissemination of a Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

Media archive at www.todayir.com

---------------------------------------------------------------------------