JQW PLC Launch of "Franchise" System (3935G)
May 07 2014 - 2:00AM
UK Regulatory
TIDMJQW
RNS Number : 3935G
JQW PLC
07 May 2014
Press Release 7 May 2014
JQW plc
("JQW" or the "Group")
Introduction of "Franchise" System to expand sales agencies
JQW plc, a domestic Chinese B2B e-commerce operator, is pleased
to announce today that the Group has launched its first "franchise"
arrangement in Chongqing City, to support its planned roll-out of
new sales agencies. This represents an important milestone for the
Group and a deployment of some of the funds raised at the time of
the Group's admission to AIM in December 2013 in accordance with
the Group's stated use of proceeds at that time.
Under the "franchise" system, JQW will provide financial support
to sales agencies to acquire computer systems and to refurbish
offices, in return for a lower percentage sales commission -
approximately 10 per cent lower. The Board believes that this will
help the Group expand its presence more rapidly to other provinces
in China. In 2013, sales generated from sales agents increased by
88% to RMB 388.0 million and comprised some 79% of total sales
whereas direct sales increased by 29% to RMB 105.1. The Group's
target is to have at least 60 sales agencies in place by the end of
2015, compared to 35 sales agencies currently.
Cai Yongde, Chairman of JQW, said: "We are pleased to announce
the launch of our first "franchise" arrangement in Chongqing City
in South West China, a City which serves as the economic centre of
the upstream Yangtze basin and which has a population of around 7
million people. China is a large country with many large cities. We
intend to expand into more provinces, particularly in Central,
West, and North China, where a local presence is a big advantage in
dealing with local dialects and customs. Going forward, the
"franchise" arrangements will play an important and cost effective
role in attracting new fee paying members to the 197,000
subscribers to our Sheng-Yi-Tong membership packages as of 31
December 2013."
- Ends -
For further information:
JQW plc
Cai Yongde, Chairman Tel: +44 (0)
20 7398 7714
Chen Daocai, Chief Executive www.jqw-ir.com
Officer
Kooi Wei Boon, 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)
Sandy Jamieson / Liam Murray Tel: +44 (0)
20 7148 7900
www.cairnfin.com
Media enquiries:
Abchurch Communications Limited
Henry Harrison-Topham / Quincy Tel: +44 (0)
Allan 20 7398 7714
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
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 number of mobile internet-access users in China stood at 839
million at February 2014 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.
The Group currently has:
10 million Registered users
5 million Page views per day
840,000 Sheng-Yi-Tong members with website
"shops"
197,000 Fee-paying members as of 31 December
2013
700 Rated in the top 700 websites for
global website traffic rankings
35 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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