Trading Update and Holdings in Company

JQW plc

("JQW", the "Group" or the "Company")

Trading Update

Holdings in Company

Further to the announcement on 10 December 2014, JQW plc, a domestic Chinese B2B e-commerce operator, is pleased to provide the following trading update.

Trading Update

The Directors are pleased with the performance of the Group in 2014 and confirm that current trading is in line with market expectations. The Company has a strong balance sheet and cash balances as at 30 November 2014 stood at RMB389,845,100 (equivalent to approximately £40 million at current exchange rates). The Company intends to issue a pre-close trading statement in February 2015 in advance of the publication of its audited results for the year to 31 December 2014, which are due to be announced in April 2015. As at 31 October 2014, the Company had 1,046,000 Sheng-Yi-Tong members with website "shops" and 238,000 active fee-paying members.

Holdings in Company

The Company has been notified by Universe Glory Enterprises Limited ("Universe Glory") that, since 9 December 2014, Universe Glory has sold shares in JQW and currently holds 8,314,600JQW shares representing 4.3% of the issued share capital of the Company. Under the terms of the Orderly Market Agreement signed by Universe Glory on 9 December 2013, Universe Glory is obliged to seek the written consent of Cairn Financial Advisers LLP ("Cairn") and Argento Capital Markets Limited ("Argento"), such consent not to be unreasonably withheld or delayed, before making any disposals for a period of six months from 9 December 2014. No such consent was sought by Universe Glory in advance of these sales.

In addition, the Company has also been informed that Hansen Drison Venture Capital Co. Limited ("Hansen Drison") sold two million JQW shares on Friday 12 December 2014, and that it currently holds 8,009,600 JQW shares representing 4.1% of its issued share capital. Hansen Drison had sought consent prior to the disposal however the sale was put through in error before consent had been sought from Argento.

Orderly Market and Lock in Agreements

For information, the following companies are now subject to the Orderly Market Agreements that restrict them from selling shares without the written consent of Cairn and Argento, such consent not to be unreasonably withheld or delayed, for a period of six months from 9 December 2014. The Orderly Market Parties have informed the Company and Cairn that they wish to reduce their holdings in the Company further in order to raise cash. For the time being, the Company, Cairn and Argento have agreed to allow the Orderly Market Parties to continue to reduce their holdings provided the Company, Cairn and Argento are given notification in advance of any such disposals and provided they are conducted in an orderly manner.

The following companies are now subject to the Lock in Agreements that restrict them from selling shares without the written consent of Cairn and Argento for a period of one year from 9 December 2014:

Notes:

1. Tian Sheng Enterprises Limited is a British Virgin Islands company of which 100 per cent. is directly wholly owned by Wang Xiufang and Cheng Tong International Limited is a British Virgin Islands company of which 100 per cent. is directly wholly owned by Wang Xiufang.

2. Champ Public Limited is a British Virgin Islands company of which 54.7 per cent. of the issued sharecapital is directly owned by Mr Cai Yongde and 45.3 per cent. of which is directly owned by Mr Chen Daocai.

3. Dong Feng Developments Limited is a British Virgin Islands company of which 100 per cent. is directly wholly owned by Cai Peixuan, the Deputy Chief Executive Officer of the Company, and the son of Cai Yongde.

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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 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 recently has:

10 million Registered users

5 million Page views per day

1,046,000 Sheng-Yi-Tong members with website "shops"

238,000 Fee-paying members as of 30 September 2014

700 Rated in the top 700 websites for global website traffic rankings

42 Sales agencies

2 Second (behind Alibaba) in Chinese B2B website traffic rankings