JQW PLC Trading Update (8839X)

TIDMJQW

RNS Number : 8839X

JQW PLC

17 January 2014

 
 Press Release   17 January 2014

JQW plc

("JQW" or the "Group")

Trading Update

JQW plc, a domestic Chinese B2B e-commerce operator, is pleased to announce that the Group has experienced continued strong growth during 2013.

Current market expectations forecast sales of approximately RMB400 million and a profit before tax of approximately RMB127 million for the year ended 31 December 2013. The Board of JQW notes that management accounts to 30 November 2013 indicate sales will exceed market expectations for 2013 with a consequent benefit to profit before tax as a result of the Group's high profit margins.

As of the end of November 2013, the Group had 192,000 fee paying members which compares to 166,000 at the end of June 2013 and 135,000 at the end of December 2012. Cash in the balance sheet as at the end of November 2013 amounted to RMB256 million, which does not include any of the proceeds from the Placing and Admission to AIM on 9 December 2013.

As stated in the Admission document, the Group intends to commence the expansion of its sales agencies through the appointment of new "quasi-franchise" agencies in the course of 2014, as well as other measures targeted for the use of the proceeds of the Placing. The benefits of this expansion are anticipated to be seen during the course of 2014.

The Group expects to issue a further Trading Update and announce the intended date for the release of its preliminary results for the year ended 31 December 2013, during February 2014.

- Ends -

For further information:

 
 JQW plc 
 Yongde Cai, Chairman                     Tel: +44 (0) 20 7398 
                                                          7709 
 Daocai "Peter" Chen, Chief Executive           www.jqw-ir.com 
  Officer 
 Wei Boon Kooi, Chief Financial Officer 
 
 
 Argento Capital Markets Limited 
 Alan MacKenzie / Jim McGeever          Tel: +44 (0)20 7093 
                                                       0353 
 alan.mackenzie@argentocapital.net   www.argentocapital.net 
 
 
 Cairn Financial Advisers LLP (Nomad 
  & Broker) 
 Liam Murray / Jo Turner               Tel: +44 (0)20 7148 
                                                      7900 
                                          www.cairnfin.com

Media enquiries:

 
 Abchurch Communications Limited 
 Henry Harrison-Topham / Quincy Allan      Tel: +44 (0)20 7398 
                                                          7702 
 jqw@abchurch-group.com                 www.abchurch-group.com

About JQW plc

JQW is a leading domestic business-to-business e-commerce provider based in the Chinese province of Jiangsu. The Group's core business is its online B2B platform, www.jqw.com, which has been developed to encourage domestic trade by connecting Chinese SMEs with potential trade partners. Founded in 2004, the platform was developed to help to market Chinese SME's websites. JQW has evolved rapidly to become the second highest ranked B2B e-commerce website(6) and operates, what the director's believe to be, the first dedicated B2B search engine, www.jqw.cn.

JQW offers a low-cost entry point for Chinese SMEs to promote themselves and their B2B products to potential buyers. In order to increase transaction opportunities, JQW offers its clients a broad range of services including website design, commercial search services and advertising.

There are approximately 49 million SMEs in China manufacturing a diverse range of products, accounting for 60% of the country's GDP. The internet usage population of China at June 2013 was 591 million and there is a considerable amount being invested into the country's telecommunications infrastructure. These factors have driven an increased demand for domestic trade of B2B, B2C and C2C e-commerce. With the majority of these SMEs requiring the use of third party B2B e-commerce platforms to promote their businesses and access trade partners, the Board believes that JQW offers a robust and highly reputable branded platform. With exposure in over 50 industry sectors and considerable scope for future growth, JQW is in a strong position to capitalise on the development of this market.

 
 55 million   Product details 
 10 million   Registered users 
 9 million    Companies' details 
 5 million    Page views per day 
 810,000      Sheng-Yi-Tong members with website "shops" 
 500,000      Purchase and sales enquiries per month 
 192,000      Fee-paying members 
 1,300        Internet media relationships 
 700          Rated in the top 700 websites for global website 
               traffic rankings 
 30           Sales agencies 
 2            Second (behind Alibaba) in Chinese B2B website 
               traffic rankings

This information is provided by RNS

The company news service from the London Stock Exchange

END

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