Royale Home Announces Strategic Partnership with Avalon Biomedical Management
11 May 2022, Hong Kong – Royale Home Holdings Limited. (“the Company” or “Royale Home, together with its subsidiaries, referred to as “the Group”; stock code: 1198.HK) announced that it has entered into a strategic partnership with Avalon Biomedical Management Limited (“Avalon Biomedical Management”) and its subsidiary Avalon SteriTech (BVI) Limited (“Avalon SteriTech”). The Company has also signed letters of intent with Avalon Biomedical Management and its subsidiary Avalon Steritech to set up two joint ventures in Mainland China. With a total investment of US$10 million, the transactions are expected to be completed on or before the end of June.
The partnership between Royale Home and Avalon Biomedical Management will focus on the research and development, production and distribution of products based on nanofiber and antimicrobial textile technology. These products will be widely used in the design and maintenance of healthy homes. The Company has also strategically invested in Avalon SteriTech, with an emphasis of jointly developing cleaning and disinfection products aimed at the enormous household markets in Mainland China. The ventures’ top priorities are business-to-business (B2B) opportunities within the Greater Bay Area, including helping airports, railway systems, and high-end commercial premises address the challenges brought by the pandemic.
In view of an increase in consumer demand for disinfection products, the joint venture between Royale Home and Avalon Biomedical Management is now focused on promoting and developing nanofiber and antimicrobial textile. It will include technology development, production, distribution, and other related services. Royale Home will hold a 51% stake in the joint venture. Founded in 2013, Avalon Biomedical Management is committed to the development and introduction of innovative biomedical technology. Its nanofiber and textile technology has an antimicrobial efficacy of 99.99%, which is proven to remain intact even after 100 times industrial or hospital-grade washing cycles. Royale Home intends to combine the strength of both parties to develop household products with high antimicrobial efficacy, including sofas, beddings and screening applications, expanding Avalon’s technology to mass consumer and daily products as the world moves into a new era of healthy life.
Royale Home is simultaneously investing in Avalon SteriTech and setting up a joint venture. Through supporting the sustainable development of its smart disinfection solutions, Royale Home aims to contribute to the long-term prevention and control of the COVID-19 virus. Royale Home will hold a 51% stake in the joint venture. Avalon SteriTech is a subsidiary of Avalon Biomedical Management, with a focus on research and development of disinfection technology, including infrastructure and protective equipment, and the formulations of infectious disease control and management plans for its customers. In April 2022, SoftBank Robotics made a strategic investment in Avalon SteriTech and currently holds about 5% of the company. The AI-powered disinfection robot Whiz Gambit jointly launched by the two parties has been adopted by government departments, railway systems, hotels, commercial institutions and healthcare industries around the world. Furthermore, Whiz Gambit has also received a number of international accolades, including being named as an Innovation Honoree (Robotics) at the CES 2022 Innovation Awards. With Avalon’s technology and market experience, it will play an active role in bringing the joint venture into the Greater Bay Area to meet the demand for professional disinfection solutions.
On the strategic partnership with Avalon Biomedical Management, Mr. Tse Kam Pang, Chairman of Royale Home, said: “We are pleased to have the opportunity to be an investor of Avalon Biomedical Management and an active participant in its development. Avalon Biomedical Management has proven strength in biotechnology, professional knowledge and market acumen. Royale Home will combine Avalon Biomedical Management’s competitive edges in sectors such as biotechnology, disinfectant, nanofiber screening applications, and antimicrobial textile with the Company’s market advantage and experience in the Mainland China. Together we aim to rapidly expand the development of cleaning and disinfection products, nanofiber screening applications and antimicrobial household products for the Mainland China market. Through this, a new generation of Royale Home 2.0 combining the strength of the two parties will be created.”
Dr. Manson Fok, Chairman of Avalon Biomedical Management, said: “Leveraging on Royale Home’s strength and market leading position, this strategic partnership is able to transform Avalon’s technological achievements over the past years into household products. By bringing them into the Mainland China market, it will also help realize our vision of providing superior public health protection for the entire country. We feel very encouraged by this development. The COVID-19 virus has brought enormous challenges to the world and has underscored the importance of infectious disease control. Through our edges in biotechnology, we will continue to work closely with Royale Home to develop more products and solutions to meet any unknown and unforeseen public health needs.”
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About Royale Home
Royale Home Holdings Limited is an investment holding company in Hong Kong that primarily engages in the design, sales and manufacture of furniture as well as the trading of commodities. Our brand “Royal Furniture” has been one of the best-sellers in the Mainland China for over two decades, with main product lines covering finished furniture, custom-made furniture, complete furnishing solution, sofas, and upholstered furniture (including mattresses and beddings, etc.). The Company has an extensive distribution network with over 1,700 stores in the Mainland China. In 2019, Science City Group became the Company’s strategic controlling shareholder. The name of the Company was changed to “Royale Home Holdings Limited” in 2020 to mark its moves of entering to the full home furnishings industry from mere furniture, building of a new retail one-stop design and furnishing platform under “Royal Furniture”, as well as further developing its interior decoration material products and related businesses.
About Avalon Biomedical Management
Headquartered in Hong Kong, Avalon Biomedical Management Group is backed by the enormous economic potential of the Greater Bay Area (GBA), the fast-growing innovation and technology hub in Southern China that’s drawing start-ups from all over Asia. The group’s dedicated management team work tirelessly with the brightest minds in biomedical technology to develop first-in-class healthcare solutions that are of the highest quality and reliability. The four pillars of our business — public health and infection control, diagnostic platforms, medical device, and pharmaceutical — ensure that we are strategically focused on areas that can help address some of the world’s most pressing medical needs.
About Avalon SteriTech
Avalon SteriTech strives to provide next-generation cleaning, disinfection and sterilization technology infrastructure for public spaces. Led by a diverse team of world-class scientists, medical doctors, academic advisors and business professionals, Avalon SteriTech is able to use its knowledge and market insights to deliver customized solutions that address unmet public health needs. As part of the Avalon Group, a Hong Kong homegrown biomedical group founded in 2013, Avalon SteriTech aspires to become a worldwide leader in public health infrastructure and protection.
