WeTrade Group Inc. Reports Fiscal Year 2021 Financial Results
WeTrade Group Inc. (US: WETG) reported a robust FY 2021, with revenues surging by 129.3% to $14.38 million, up from $6.27 million in 2020. Gross profit increased by 106.8% to $11.70 million, despite a decline in gross margin from 90.2% to 81.4%. Net income rose 93.5% to $5.18 million, with earnings per share reaching $0.02. However, cash reserves dropped significantly to $0.62 million from $4.64 million. The resurgence of COVID-19 in early 2022 has posed challenges to future operations.
- Revenue increased by 129.3% to $14.38 million.
- Gross profit grew by 106.8% to $11.70 million.
- Net income rose by 93.5% to $5.18 million.
- Earnings per share improved to $0.02.
- Gross margin decreased from 90.2% to 81.4%.
- Cash and cash equivalents fell to $0.62 million from $4.64 million.
- Net cash used in operating activities was $3.75 million.
BEIJING, April 19, 2022 /PRNewswire/ -- WeTrade Group Inc. ("Wetrade" or the "Company") (US: WETG), an emerging growth company engaged in the business of providing software-as-a-services (SaaS) and cloud intelligent systems for micro-businesses, today reports its financial results for fiscal year 2021 ended December 31, 2021.
Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "2021 was another strong year for us, with solid year-over-year growth across our key financial metrics. The COVID-19 pandemic boosted the home-based economy and has further promoted the rapid development of e-commerce, live broadcasting, and short videos. As a result, the market demand for the tools of SaaS and cloud intelligent systems provided by the Company for micro-businesses was strong, which is a significant factor for the Company's fast growth. The solid financial results for fiscal year 2021 are the best proof. Looking forward, the Company will continue focusing on business development in vertical areas and investing our resources to create value and returns for our shareholders. We strive to achieve breakthrough innovations in the field of e-commerce retail SaaS and promote the sustainable development of enterprise service."
Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "Our high financial growth in 2021 is contributed by the booming of short video and live-streaming e-commerce and the rapid transition of business from offline to online. However, the resurgence of the COVID-19 pandemic at the beginning of 2022 disrupted our planned operation and expansion. In the future, we will keep optimizing our strategic development plan in a timely and effective manner to mitigate the adverse impact of the COVID-19 pandemic to ensure our financial resilience."
Fiscal Year 2021 Financial Results
For the Year Ended December 31, | ||||||
($ millions, except per share data) | 2021 | 2020 | % Change | |||
Revenue | 14.38 | 6.27 | ||||
Gross Profit | 11.70 | 5.66 | ||||
Gross Margin | -8.8pp* | |||||
Operations Profit | 5.99 | 3.75 | ||||
Net Income | 5.18 | 2.68 | ||||
Earnings Per Share | 0.02 | 0.01 | ||||
*Notes: pp represents percentage points
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Cost of Revenue
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Operations Profit
General and administrative expenses increased by
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Net Income
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Financial Condition
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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; | - | - | ||||||
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 | ||||
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SOURCE WeTrade Group Inc.
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