WeTrade Group Inc. Reports Fiscal Year 2021 Financial Results

BEIJING, April 20, 2022 /PRNewswire/ — WeTrade Group Inc. (“Wetrade” or the “Company”) (US: WETG), an emerging growth company engaged in the business of providing software-as-a-services (SaaS) and cloud intelligent systems for micro-businesses, today reports its financial results for fiscal year 2021 ended December 31, 2021.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, “2021 was another strong year for us, with solid year-over-year growth across our key financial metrics. The COVID-19 pandemic boosted the home-based economy and has further promoted the rapid development of e-commerce, live broadcasting, and short videos. As a result, the market demand for the tools of SaaS and cloud intelligent systems provided by the Company for micro-businesses was strong, which is a significant factor for the Company’s fast growth. The solid financial results for fiscal year 2021 are the best proof. Looking forward, the Company will continue focusing on business development in vertical areas and investing our resources to create value and returns for our shareholders. We strive to achieve breakthrough innovations in the field of e-commerce retail SaaS and promote the sustainable development of enterprise service.” 

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, “Our high financial growth in 2021 is contributed by the booming of short video and live-streaming e-commerce and the rapid transition of business from offline to online. However, the resurgence of the COVID-19 pandemic at the beginning of 2022 disrupted our planned operation and expansion. In the future, we will keep optimizing our strategic development plan in a timely and effective manner to mitigate the adverse impact of the COVID-19 pandemic to ensure our financial resilience.”

Fiscal Year 2021 Financial Results

For the Year Ended December 31,

($ millions, except per share data)

2021

2020

% Change

Revenue

14.38

6.27

129.3%

Gross Profit

11.70

5.66

106.8%

Gross Margin

81.4%

90.2%

-8.8pp*

Operations Profit

5.99

3.75

59.7%

Net Income

5.18

2.68

93.5%

Earnings Per Share

0.02

0.01

100%

*Notes: pp represents percentage points

Revenue

Total revenue was $14.38 million and $6.27 million for fiscal year 2021 and 2020, respectively. The increase was mainly due to the increase in Gross Merchandise Volume (“GMV”) in Ycloud system.

Cost of Revenue

Cost of revenue was $2.68 million for fiscal year 2021, compared with $0.62 million for the same period of last year. The increase is mainly due to more staffs were recruited during the period. The increase is in line with the increase in revenue during the period.

Gross profit and gross margin

Gross profit increased by $6.04 million, or 106.8%, to $11.70 million for fiscal year 2021 from $5.66 million for the same period of last year.

Gross margin was 81.4% for fiscal year 2021, compared with 90.2% for the same period of last year.

Operations Profit

General and administrative expenses increased by $3.80 million, or 200.1%, to $5.71 million for fiscal year 2021 from $1.90 million for the same period of last year. The increase is mainly due to increase in the payroll expenses as a result of more new staffs were recruited during the year.

Operations profit increased by $2.24 million, or 59.7%, to $5.99 million for fiscal year 2021 from $3.75 million for the same period of last year.

Net Income

Net income increased by $2.50 million, or 93.5%, to $5.18 million for fiscal year 2021 from $2.68 million for the same period of last year. The increase is mainly due to increase in Gross Merchandise Volume (“GMV”) in YCloud system and services are collected from YCloud users based on GMV during the year.

Basic and diluted earnings per share was $0.02 for Fiscal year 2021, compared with basic and diluted earnings per share of $0.01 for the same period of last year.

Financial Condition

As of December 31, 2021, the Company had cash and cash equivalents for $0.62 million, compared to $4.64 million as of December 31, 2020. Net cash used in operating activities was $3.75 million for fiscal year 2021, compared to net cash provided by operating activities of $1.16 million for the same period of last year. Net cash used in investing activities was $0.42 million for fiscal year 2021, compared with nil for the same period of last year. Net cash provided by our financing activities was $0.08 million for fiscal year 2021, compared to net cash used in financing activities of $3.68 million for the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is a world’s leading technical service provider of SAAS and Cloud Intelligent System for micro-businesses, and is a pioneering internationalized system in the global micro-business cloud intelligence field and the leader, innovator and promoter of the world’s cloud intelligent system for micro-businesses. WeTrade Group independently developed the cloud intelligent system for micro-businesses (Abbreviation: YCloud). YCloud can strengthen users’ marketing relationship and CPS commission profit management through leading technology and big data analysis. It also can help increase the payment scenarios to increase customers’ revenue by multi-channel data statistics, AI fission and management as well as improved supply chain system.Up to now, YCloud’s business has successfully landed in mainland China and Hong Kong, covering the micro business industry, tourism industry, hospitality industry, livestreaming and short video industry, aesthetic medical industry and traditional retail industry. For more information, please visit https://ir.wetg.group.

Forward-Looking Statements

This press release contains information about the Company’s view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company’s encourages you to review other factors that may affect its future results in the Company’s annual reports and in its other filings with the Securities and Exchange Commission.

 

WETRADE GROUP INC

CONSOLIDATED BALANCE SHEETS

As of December 31

(All amounts shown in U.S. Dollars)

December 31,

2021

December 31,

2020

ASSETS

Current Assets:

Cash and Cash Equivalents

$

616,593

$

4,640,603

Accounts receivable

5,627,463

2,609,520

Account receivable- related party

3,603,402

Note receivable

3,798,130

3,097,981

Other receivables

30,147

5,771

Prepayments

2,760,658

61,707

Total Current Assets

16,436,393

10,415,582

Property and equipment, net

395,353

Right of use assets

2,328,950

2,813,186

Intangible asset, net

37,765

49,029

Rental deposit

272,063

264,910

Total Assets:

$

19,470,524

$

13,542,707

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Account payables

$

7,710

$

8,176

Account payables- related parties

54,436

Accrued expenses

217,073

263,355

Tax payables

711,841

828,695

Amount due to related parties

1,105,532

416,501

Lease liabilities, current

596,098

569,865

Other payables

306,270

90,632

Total Current Liabilities

2,998,960

2,177,224

Lease liabilities, non- current

1,942,242

2,471,598

Total Liabilities

4,941,202

4,648,822

Stockholders’ Equity:

Common Stock; $0.00 per share par value;305,451,498 issued and outstanding at December 31,
2021 and 305,451,498 issued and outstanding at December 31, 2020*

Additional Paid in Capital

6,197,520

6,057,520

Accumulated other comprehensive income

898,497

578,735

Retained Earnings

7,433,305

2,257,630

Total Stockholders’ Equity

14,529,322

8,893,885

Total Liabilities and Stockholders’ Equity

$

19,470,524

$

13,542,707

 

WETRADE GROUP INC 

Consolidated Statements of Operations and Comprehensive Income

For the year

ended

December 31,

2021

From the year

 ended

December 31,

2020

Revenue:

Service revenue, non-related party

$

9,734,966

$

3,440,312

Service revenue, related party

4,646,329

2,831,252

Total service revenue

14,381,295

6,271,564

Cost of Revenue

(2,681,939)

(615,595)

Gross Profit

11,699,356

5,655,969

Operating Expenses:

General and Administrative

(5,705,063)

(1,901,336)

Operations Profit

5,994,293

3,754,633

Other income

303,665

82,960

Income before income tax

6,297,958

3,837,593

Income tax expense

(1,122,283)

(1,162,556)

Net Income

$

5,175,675

$

2,675,037

Other Comprehensive Income

Foreign currency translation adjustment

319,762

578,735

Comprehensive Income

5,495,437

3,253,772

Net income per share – basic and diluted

$

0.02

$

0.01

Weighted average number of shares outstanding*; Basic and Diluted

305,451,498

304,166,073

 

WETRADE GROUP INC

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31, 2021 and 2020

For the year

December

31, 2021

For the year

December

31, 2020

Cash Flows from Operating Activities:

Net Income

$

5,175,675

$

2,675,037

Adjustment to reconcile net income to cash flows from operating activities:

Depreciation expenses

23,353

Amortization of intangible assets

12,519

11,696

Forgiveness of related party debt

140,000

Changes in Operating Assets and Liabilities:

Accounts receivables

(2,910,665)

(2,489,993)

Accounts receivables- related parties

(3,558,398)

Intangible asset

(58,480)

Other receivables

244,749

(258,282)

Prepaid expenses

(2,926,541)

(41,141)

Accounts payable

(910)

7,802

Account payables-related parties

51,031

Accrued expenses

(52,178)

220,658

Tax payables

(177,836)

828,695

Other payables

250,870

48,524

Right of use assets

560,200

(2,684,330)

Lease liabilities

(585,253)

2,902,151

Net Cash Flows (used in) /provided by Operating Activities:

(3,753,384)

1,162,337

Cash flow from Investing activities:

Office equipment

(417,112)

Net Cash Flows used in Investing Activities:

(417,112)

Cash flow from financing activities:

Proceeds from issuance of common stock

835,500

Note receivable

(611,210)

(2,957,622)

Related party loan

689,031

(1,560,020)

Net cash provided by (used in) financing activities:

77,821

(3,682,142)

Effect of exchange rate changes on cash

68,665

569,280

Change in Cash and Cash Equivalents:

(4,024,010)

(1,950,525)

Cash and Cash Equivalents, Beginning of Period

4,640,603

6,591,128

Cash and Cash Equivalents, End of Period

$

616,593

$

4,640,603

NON-CASH INVESTING AND FINANCING TRANSACTION

Forgiveness of related party payable

$

140,000

$

Supplemental Cash Flow Information:

Cash paid for interest

$

$

Cash paid for taxes

$

480,528

$

1,162,556

 

Comments are closed.