JQW PLC Interim Trading Update (0759P)

TIDMJQW

RNS Number : 0759P

JQW PLC

14 August 2014

 
 Press Release   14 August 2014

JQW plc

("JQW" or the "Group")

Interim Trading Update

Notice of Interim Results

JQW plc (AIM:JQW), a domestic Chinese B2B e-commerce operator, announces the following trading update for the six months to 30 June 2014 ("H1-2014" or the "period").

Trading for the period remained buoyant with turnover ahead of H1-2013 by some 90% and profit before tax for the period up 48% at approximately RMB105 million (H1-2013: RMB70.8million). Revenue recognition in H1-2014 was therefore boosted in part by a large number of new contracts signed by fee paying members towards the end of 2013. There was a 33% increase in active fee paying members as at 30 June 2014 when compared to 30 June 2013.

As at the 30 June 2014, the Group had 221,000 fee paying members which compares to 197,000 at the end of December 2013 (H1-2013: 166,000). JQW continues to be highly cash-generative, resulting in a cash position at the half year of RMB425 million (31 December 2013: RMB344million).

The Group has expanded the number of its sales agencies by 8 since 31 December 2013 to take the Group total to 38. This includes the first new franchise agency. JQW is now represented in ten provinces in China and intends to continue to expand its presence into additional provinces.

Following shareholder approval at the AGM in June 2014, a final dividend of 0.5 pence per share for the financial year ended 31 December 2013 was announced. The Company is pleased to confirm that this was paid to shareholders on 14 July 2014.

Cai Yongde, Chairman of JQW, said: "The Board is pleased with the strong progress that the Group has made since the start of the year. The AIM flotation has significantly raised JQW's profile and further strengthened the Group's reputation, helping to attract more customers. The Group has also started to see a positive impact from the additional sales agencies, and is expecting to see further contribution to revenue growth from these additional agencies in the near future.

"As the second highest ranked B2B e-commerce website in China in terms of traffic, the Board is confident that JQW is well-positioned to capitalise on the rapidly growing Chinese e-commerce market, driven by the modernisation of enterprises in China. The Board continues to look to the future with confidence."

Notice of Interim Results

JQW also announce that the Group will be announcing Interim Results for the six months ended 30 June 2014 on Tuesday 9 September 2014. An analyst briefing given by Peter Chen (Chief Executive Officer) and Wei Boon Kooi (Chief Financial Officer), will be held at 9.30 a.m. at the offices of Abchurch Communications, 125 Old Broad Street, London, EC2N 1AR.

- Ends -

For further information:

 
 JQW plc 
 Cai Yongde, Chairman               Tel: +44 (0) 
                                    20 7398 7714 
 Chen Dao cai, 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)20 
  Allan                                         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 in China in terms of traffic and operates, what the director's believe to be, the first dedicated Chinese 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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