Nova Lifestyle Inc (NASDAQ:NVFY) has announced the signing of an annual product framework agreement, with The Future Biz School (FBS). The company stated that the agreement is worth $15 million and requires NVFY to supply mattresses and other products, made in the US, to the training institute’s Hong Kong and Malaysian locations. FBS provides marketing and management training to professionals throughout Asia, through a Reward Points program.
The company noted that sales under the agreement would be dependent upon specific orders from FBS. However, the first orders have already been received by Nova Lifestyle, for the months of October and November, estimated to be worth $2 million. It should be noted here that NVFY has been operating in Asia since 2012. The interim CEO of the company, Ms. Tawny Lam, expressed her pleasure at the agreement and claimed that it represented growing demand in the Asian markets. She also revealed that NVFY was realigning its business model, so as to focus on e-commerce and business training.
Ms. Lam also stated that currently the management was focusing on less capital intensive, yet high margin business models, which also includes the acquisition of online platforms, which are synergetic to its own business. She hinted at the possibility of acquiring digital platforms aimed at bridging the gap between suppliers and buyers, in products and services.
The company had only recently appointed Ms. Lam as the CEO, when Ya Ming Wong resigned from the post, on October 10, 2016. Nova Lifestyle noted that Mr. Wong had left to pursue other opportunities and was not related to any disagreements he might have had with the company. The news had come shortly after NVFY had decided to sell its China based business, which Mr. Wong was responsible for overseeing. Upon her appointment, Ms. Lam thanked the outgoing CEO for his services and building the company to what it is today. She went on to thank the board of directors for her election and reassured that she would focus on building NVFY’s e-commerce business in North America.
Nova Lifestyle Inc (NASDAQ:NVFY) recorded a trade volume of 2.93 million and surged by 19.02% in terms of its share value, to close at $4.38 per share.