JQW warns on profit as operations still on hold

Chinese e-commerce operator JQW has been hit by temporary official restrictions which the board said will hit profit for the full year.

The company, which connects Chinese business buyers and sellers, was forced offline by China's Administration of Industry and Commerce (AIC) for a month in mid-September for violating advertising regulations.

Last month, the regulator said it was satisfied with the remedial work undertaken to address the issues, but said it required the company to carry out further training for new staff.

However on Monday the company said it is still working with the AIC to satisfy that controls and procedures meet their requirements.

It said the company will be allowed to continue their operations once the AIC give the go-ahead.

However the board has warned that the suspension of its business, which has been ongoing for nearly two months, will have an impact of its profit.

It said it is reviewing the financial impact of the suspension, but it “no longer considers that profit for the full year will be of a similar magnitude to last year”.

JQW was forced to shut down its operations on 21 September for a month and was fined RMB18,000 (£1,873) for the violations.