EQS-News / 12/10/2016 / 11:12 UTC+8

【For Immediate Release】 12 October 2016




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

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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."


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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

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

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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.
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