Trading Update

GTS Chemical Holdings plc

(The "Company" or "GTS")

Trading Update

The Directors of GTS are pleased to issue the following trading update for the nine month period to 30 September 2014.

· Group revenue increased 66.6% to RMB 503 million (2013: RMB 302 million)

· Further expansion of distributor networks for lubricating oils and recarburizer

· Strong revenue growth across all divisions

*Commenced trading in July 2013

Specialty chemicals

Revenue for the Group's core specialty chemicals division grew by 25.3%, in line with expectations. Sales to Tralin Paper, our largest customer, underpin our success in this segment and continue to grow as Tralin itself implements its own expansion plans. Sales to our other customers also remain strong.

Lubricating oils

Our Lubricating oils division has been a great success and has exceeded our expectations. Since commencement less than 18 months ago, we have created a division that accounts for around 20% of our revenues during the period. Since the beginning of this year we have increased the number of our distributors from 18 to 43 and now operate in 18 regions, up from 9 at the end of 2013.

Recarburizer

Our recarburizer division network has grown from 11 distributors in 6 provinces at the end of 2013 to 19 distributors across 7 provinces at 30 September 2014.

Investment

The Group's acquisition of the land use right over land adjacent to its existing facility is on track and management expects the acquisition to be completed by the end of 2014 which will enable GTS to continue to expand production capacity for specialty chemicals and lubricant oils. In the period we have commissioned a new specialty chemical line which has increased liquid production capacity by 25%.

Technology

We have registered two new innovative patents relating to the production of ammonium sulfite and ammonium bisulfite as part of our continuous drive to increase efficiency and productivity.

Mr. Cheng Liu, Chief Executive Officer of GTS Chemical Holdings plc, said: "I am delighted with the progress GTS has made over the period. Revenues in our core specialty chemicals division grew strongly and our new business segments have performed above expectations. We continue to invest in our strengths and I look forward to updating the market further in due course."

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About GTS Chemical Holdings plc

GTS was admitted to AIM on 1 August 2014. GTS is a Jersey holding company whose sole operating subsidiary Shandong Tiantai Steel-Plastic Co., Ltd ("Shandong Tiantai"), is the largest Chinese manufacturer of ammonium sulfite and the second largest producer of ammonium bisulfite in China. GTS benefits from access to lower cost raw materials through the use of low concentration waste products from nearby industry as well as proximity to key customers which is of particular benefit due to the degradable nature of ammonium sulfite. The Group's activities also include blending and distribution of lubricating oils and trading of recarburizer.