WeTrade Group Inc. Reports First Quarter 2021 Unaudited Financial Results

Rhea-AI Summary

WeTrade Group Inc. (WETG) announced its Q1 2021 financial results, reporting revenue of $2.78 million, a staggering 13,098.5% increase from the prior year. Gross profit also surged to $2.63 million, with a gross margin of 94.7%. The company achieved an operating profit of $745,425 and net income of $652,084, a turnaround from a net loss of $461 in Q1 2020. As of March 31, 2021, cash and cash equivalents stood at $2.67 million, decreased from $4.64 million at year-end 2020. WeTrade attributes growth to increased service demand and partnerships supporting digital transformation.

Positive

• Revenue increased by 13,098.5% year-over-year, reaching $2.78 million.
• Gross profit rose to $2.63 million, compared to $0.02 million last year.
• Operating profit turned positive at $745,425, up from a loss of $4,000.
• Net income improved to $652,084 from a loss of $461 in Q1 2020.
• YCloud served 18 million small and medium-sized enterprises, reflecting a growth of 3 million.

Negative

• Cash and cash equivalents decreased from $4.64 million at the end of 2020 to $2.67 million.
• Net cash used in operating activities increased to $1.97 million from $1.42 million.

BEIJING, June 1, 2021 /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 unaudited financial results for the first quarter ended March 31, 2021.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "The Company's revenue and profits in the first quarter of 2021 are in line with our expectation. With COVID-19 has been brought under control and the offline economy has resumed, the Company's performance still maintained a rapid growth trend, indicating the irresistible outbreak of the private sector economy."  

Mr. Liu continued, "In the digital economy era, more and more companies and individuals are beginning to pay attention to private domain traffic operations, especially after experiencing the COVID-19 pandemic. The pursuit of multi-channel network and SaaS of private domain traffic marketing has become an industry consensus. At the beginning of the year, the Company reached a cooperation with Zhongyan Corporation to help its digital transformation and monetization of private domain traffic marketing. The Company's cooperation with Beijing Youth Hostel and China Kanghui showed good examples and industry trend."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "In the first quarter of 2021, YCloud has served 18 million small and medium-sized enterprises, an increase of 3 million compared to 2020. The Company still maintained a momentum of rapid development this quarter due to the improvement of YCloud technology and the growth of the Company's customer base. 2021 will be a year of rapid development for the Company. The Company will further increase the development of technologies and applications in the vertical field of micro-business, provide more applications based on consumption scenarios and seek more new partners and business opportunities."

First Quarter of 2021 Financial Results

		For the Three Months Ended March 31,
($)		2021		2020		% Change
Revenue		2,780,923		21,070		13,098.5%
Gross Profit		2,634,615		21,070		12,404.1%
Gross Margin		94.7%		100%		-5.3pp*
Operations Profit/(Loss)		745,425		(4,000)		NM
Net Income/(Loss)		652,084		(461)		NM
Earnings/(Loss) Per Share		0.00		(0.00)		NM
*Notes: pp represents percentage points

Revenue

Total revenue was $2.78 million from customers for the three months ended March 31, 2021, which are mainly from the service revenue generated from auto-billing management system from customers.

Cost of Revenue

Cost of revenue was $0.15 million for the three months ended March 31, 2021, compared with nil for the same period of last year. The increase was mainly due to more staffs were recruited and was in line with the increase in revenue during the period.

Gross profit and gross margin

Gross profit was $2.63 million for the three months ended March 31, 2021, compared with $0.02 million for the same period of last year. 

Gross margin was 94.7% for the three months ended March 31, 2021, compared with 100% for the same period of last year.

Operations Profit/(Loss)

Operations profit was $745,425 for the three months ended March 31, 2021, compared with operations loss of $4,000 for the same period of last year.

Net Income/(Loss)

Net income was $652,084 for the three months ended March 31, 2021, compared with net loss of $461 for the same period of last year. Basic and diluted earnings per share was nil for the three months ended March 31, 2021, compared with nil for the same period of last year.

Financial Condition

As of March 31, 2021, the Company had cash and cash equivalents for $2.67 million, compared to $4.64 million as of December 31, 2020.

Net cash used in operating activities was $1.97 million for the three months ended March 31, 2021, compared to $1.42 million for the same period of last year.

Net cash provided by financing activities was nil for the three months ended March 31, 2021, compared to $0.08 million for the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is believed the world's first technical service provider of Cloud Intelligent System and SAAS for micro-businesses. It is the first internationalized system in the global micro-business cloud intelligence field and also 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, revenue and group leader management 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, Hong Kong, the Philippines, Singapore and other countries, 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.

For more information, please contact:

Ascent Investor Relations LLC
Tina Xiao
+1-917-609-0333
tina.xiao@ascent-ir.com  

 

 

WETRADE GROUP INC
BALANCE SHEETS
		March 31,		December 31,
(All amounts shown in U.S. Dollars)		2021		2020
ASSETS		(unaudited)
Current Assets:
Cash and Cash Equivalents		$    2,672,940		4,640,603
Accounts Receivables		2,880,285		2,609,520
Note receivable		4,516,275		3,097,981
Other receivables		51,193		50,786
Prepayments		1,313,949		61,707
Total current assets		11,434,642		10,460,597
Non current Assets:
Right of use assets		2,668,764		2,813,186
Intangible asset, net		45,782		49,029
Rental deposit		219,020		219,895
Total non-current assets		2,933,566		3,082,110
Total Assets:		14,368,208		13,542,707
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Account payables		669,469		8,176
Accrued expenses		238,634		263,355
Tax payables		275,500		828,695
Amount due to related parties		452,500		416,500
Lease liabilities, current		585,153		569,865
Other payables		344,547		90,633
Total Current Liabilities		2,565,803		2,177,224
Lease liabilities, non current		2,308,369		2,471,598
Total Liabilities		4,874,172		4,648,822
Stockholders' Equity:
Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at March 31, 2021 and 305,451,498
issued and outstanding at December 31, 2020		-		-
Additional Paid in Capital		6,057,520		6,057,520
Accumulated other comprehensive income (loss)		526,802		578,735
Retained Earning/ (Accumulated Deficit)		2,909,714		2,257,630
Total Stockholders' Equity		9,494,036		8,893,885
Total Liabilities and Stockholders' Equity		$  14,368,208		13,542,707

 

 

WETRADE GROUP INC
STATEMENTS OF OPERATIONS
Unaudited
		Three Months		Three Months
		ended		ended
		March 31		March 31
		2021		2020
Revenue:
Service revenue, related party		-		21,070
Service revenue		2,780,923		--
Total service revenue		2,780,923		21,070
Cost of revenue		(146,308)		-
Gross Profit		2,634,615		21,070
Operating expenses:
General and Administrative		1,889,190		25,070
Operations Profit/ (Loss)		745,425		(25,070)
Other revenue/ (loss)		83,515		3,539
Net Profit/ (Loss) before Income Tax		828,940		(461)
Income tax expense		176,856		-
Net income (loss) attributable to noncontrolling interest		652,084		(461)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment		(51,933)		(57,060)
Total comprehensive Income (Loss)		600,151		(56,599)
Basic and Diluted Net Income (Loss) per share:		0.00		(0.00)
Weighted average number of shares outstanding; Basic and Diluted*		305,451,498		301,888,665
*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split.

 

 

WETRADE GROUP INC
STATEMENTS OF CASH FLOWS
		For the		From the
		Period		period
		March 31,		March 31,
		2021		2020
		(unaudited)		(unaudited)
Cash Flows from Operating Activities:
Net Income/ (Loss)		$    652,084		(461)
Amortization of intangible asset		3,084
Changes in Operating Assets and Liabilities:
Accounts receivables		(284,056)		-
Note receivable		(1,444,683)		-
Other receivables		(615)		-
Prepayments		(1,272,083)		(13,531)
Amount due to related parties		36,000		(1,338,000)
Intangible assets		-		(56,191)
Accounts payables		668,159		-
Accrued expenses		254,206		(11,790)
Right of use assets		133,224		-
Lease liabilities		(135,835)		-
Tax payables		(578,814)		-
Net Cash Flows Used in Operating Activities:		(1,969,329)		(1,419,973)
Cash flow from financing activities:
Share issued for cash		-		78,000
Net cash provided by financing activities:		-		78,000
Effect of exchange rate changes on cash		1,666		(57,060)
Change in Cash and Cash Equivalents:		(1,967,663)		(1,399,033)
Cash and Cash Equivalents, Beginning of Period		4,640,603		6,591,128
Cash and Cash Equivalents, End of Period		$    2,672,940		5,192,095
Supplemental Cash Flow Information:
Cash paid for interest		$                -		-
Cash paid for taxes		$    553,195		-

 

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SOURCE WeTrade Group Inc.