JQW PLC Statement regarding Orderly Market Agreements (7259Y)

TIDMJQW

RNS Number : 7259Y

JQW PLC

03 December 2014

3 December 2014

JQW plc

("JQW" or the "Group")

Statement regarding Orderly Market Agreements

Further to the announcement released on 15 October 2014, JQW, a domestic Chinese B2B e-commerce operator, received confirmation from Midasi Investment Limited ("Midasi"), one of the Orderly Market Parties, that they sold 301,500 shares in the Company in breach of the Orderly Market Agreement. Under the Orderly Market Agreement dated 9 December 2013, Midasi agreed not to dispose or agree to dispose of the legal and beneficial interest in any Ordinary Shares held by them for a period of 12 months from the date of Admission, being 9 December 2014, (the "Orderly Market Period") without the prior written consent of Cairn (Nominated Adviser) and Argento (Financial Adviser), save in certain limited circumstances, and not to dispose or agree to dispose of the legal and beneficial interest in any Ordinary Shares held by them for a period of six months following the expiry of the Orderly Market Period without the prior written consent of Cairn and Argento, such consent not to be unreasonably withheld or delayed.

Midasi agreed to re-acquire the shares that they sold and so far bought back 130,000 JQW shares in the Company through the market. Therefore, JQW, Cairn and Argento believe that Midasi continues to be in breach of its Orderly Market Agreement until such time as it has bought back the remaining 171,500 JQW shares.

One Capital Investment Group Limited ("One Capital") entered into an Orderly Market Agreement on 9 December 2013 on similar terms as Midasi, save that it was able to make such disposals of JQW shares as to recoup the costs to it of certain aspects the Admission process, which it had agreed to fund. One Capital has disclosed to the Company that it has sold 1,706,000 Ordinary Shares in the market to recoup the cost to it of the JQW admission process. In addition, One Capital has shown the Company documentation indicating that it had transferred 1,406,666 JQW shares to a trust on 7 July 2014 without informing the Company, Cairn and Argento, and has confirmed that the JQW shares held by the trust are subject to the restrictions of the Orderly Market Agreement.

- Ends -

For further information:

 
 JQW plc 
 Cai Yongde, Chairman                     Tel: +44 (0) 20 7398 
                                                          7714 
 Chen Daocai, Chief Executive Officer           www.jqw-ir.com 
 Kooi Wei Boon, Chief Financial Officer 
 
 
 Argento Capital Markets Limited 
 Alan MacKenzie / Jim McGeever       Tel: +44 (0) 20 7093 
                                                     0353 
                                   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 Allan     Tel: +44 (0) 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

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