Nova LifeStyle Announces Entry Into High Margin, Service Oriented E-Commerce Business

LOS ANGELES, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ:NVFY) ("Nova LifeStyle" or the "Company"), a U.S.-based, leading innovative designer, manufacturer and distributor of modern life style furniture, today announced the Company has made a strategic entry into a high margin, service oriented, e-commerce business through its partnership with Inno International Trading, a Hong Kong-based company engaged in the business of marketing, monetizing and exchanging reward points for its millions of existing members and customers.

Nova LifeStyle and Inno will collaborate in implementing and managing an Academic E-commerce marketplace and Reward Points Redemption Program, providing an online platform for Inno's members to monetize and exchange their reward points for various merchandise and services, including Nova LifeStyle's products. The Company has established an integrated training center in Hong Kong to service Inno's customers.

On October 11, 2016, Nova Lifestyle announced in a press release its planned strategic realignment, transforming the Company from a marketing and designer of modern furniture to focus on high margin, less capital intensive, service-oriented business segments, focusing on business training and e-commerce.

Beginning this quarter, the Company anticipates significant portions of its sales and earnings will be earned from high growth, high margin business training and e-commerce related services.

Tawny Lam, President and Interim CEO of Nova LifeStyle stated, "We are excited to announce a strategic partnership with Inno International Trading. Today's press release marks Nova's first step in our transformation to a high margin, asset-light, service company. Millions of customers hold reward points - the same concept as in airline miles or points earned through credit card spending. There are also merchants eager to offer their products to these customers. Nova Lifestyle is positioning itself as a marketplace where reward points can be matched with merchandise, producing tangible benefits for Asia-based members. The Company shall derive training and service related fees from these efforts."

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